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Innovation Barriers and Their Impact on Innovation: Evidence from Indonesian Manufacturing Firms

By: Hartono, Arif.
Contributor(s): Kusumawardhani, Ratih.
Material type: materialTypeLabelBookDescription: 1196-1123 p.Subject(s): Innovation barriers | manufacturing firms | Indonesia In: BANIK, ARINDAM GLOBAL BUSINESS REVIEWSummary: Using innovation data derived from the Indonesia Innovation Survey (IIS) 2011, this study investigates the nature and importance of innovation barriers faced by Indonesian manufacturing firms and examines the impact of innovation barriers on product, process, organization and marketing innovation and on innovation performance. Undertaking factor analysis, the study finds that the innovation barriers can be categorized as market and institution barriers, employee and organization attitude barriers, finance and risk barriers, and knowledge and cooperation barriers. Applying logit and tobit regression models, this study shows that barriers related to employee and organization attitude have positive influence on innovation and innovation performance. In contrast, the last two barriers have negative effects on innovation and innovation performance. Financial and risk constraints are perceived by the firms to be the most important barriers. Innovative and non-innovative firms perceive innovation barriers related to lack of information on technology, staff resistance to change, managers resistance to change and organization rigidity, differently.
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Item type Current location Call number Vol info Status Notes Date due Barcode Item holds
Journal Article Journal Article Main Library
Vol 20, No 5/ 55511230JA6 (Browse shelf) Available 55511230JA6
Journals and Periodicals Journals and Periodicals Main Library
On Display
JP/GEN/Vol 20, No 5/55511230 (Browse shelf) Vol 20, No 5 (10/09/2019) Not for loan October, 2019 55511230
Total holds: 0

Using innovation data derived from the Indonesia Innovation Survey (IIS) 2011, this study investigates the nature and importance of innovation barriers faced by Indonesian manufacturing firms and examines the impact of innovation barriers on product, process, organization and marketing innovation and on innovation performance. Undertaking factor analysis, the study finds that the innovation barriers can be categorized as market and institution barriers, employee and organization attitude barriers, finance and risk barriers, and knowledge and cooperation barriers. Applying logit and tobit regression models, this study shows that barriers related to employee and organization attitude have positive influence on innovation and innovation performance. In contrast, the last two barriers have negative effects on innovation and innovation performance. Financial and risk constraints are perceived by the firms to be the most important barriers. Innovative and non-innovative firms perceive innovation barriers related to lack of information on technology, staff resistance to change, managers resistance to change and organization rigidity, differently.

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