Projecting Experience of Technology-Based MSMEs in Indonesia: Role of Absorptive Capacity Matter in Strategic Alliances and Organizational Performance Relationship
Abstract
:1. Introduction
2. Literature Review
2.1. Resource-Based View (RBV)
2.2. Knowledge-Based Theory
2.3. Transaction Cost of Theory
2.4. Strategic Alliance
2.5. Absorptive Capacity
2.6. Organizational Performance
2.7. Strategic Alliances and Organizational Performance
2.8. Strategic Alliance and Absorptive Capacity
2.9. Absorptive Capacity Andorganizational Performance
2.10. Absorptive Capacity Mediating Effects between Strategic Alliances and Organizational Performance
3. Methods
3.1. Research Design
3.2. Data Collection
- (a)
- This research is exploratory, which is an extension of an existing theory to identify, predict, and explain the constructs or latent variables studied [112];
- (b)
- The assumption of data in SEM is looser in the sense that it does not require the variables to meet the criteria of parametric analysis, such as multivariate normality [113];
- (c)
- The structural model of this research is complex because it has many indicators. SEM-PLS can analyze the model, testing complex research models (dependent, independent, and mediating variables) to estimate the model simultaneously and more accurately in theory testing;
- (d)
- Able to measure unobserved variables, namely variables that cannot be measured directly;
- (e)
- Researchers in various fields of science have used SEM-PLS. The development of SEM-PLS users has increased significantly in the last eight years, as seen in international journal publications [113].
3.3. Construct Definition and Measurement
3.3.1. Strategic Alliances (SA)
- Increasing innovation;
- Improving quality;
- Performing technology transfer;
- Promoting the learning process;
- Sharing resources and competencies;
- Obtaining knowledge transfer.
- Entering new markets;
- Increasing market share;
- Consolidating market positions.
- Increasing scale economy;
- Reducing transaction costs;
- Sharing the risk;
- Increased delivery times;
- Taking advantage of and creating synergies;
- Achieving a competitive advantage.
3.3.2. Absorptive Capacity (AC)
- Scope of search;
- Perspectual schema;
- New connections;
- Speed of learning;
- Quality of learning.
- Interpretation;
- Comprehension;
- Learning.
- Synergy;
- Recodification;
- Bisociation.
- Core Competencies;
- Harvesting resources.
3.3.3. Organizational Performance (OP)
- Developing trust;
- Motivating partners;
- Creating friendly relationships;
- Degree of partner commitment;
- Attaining cooperation objectives;
- Open communication;
- Knowledge market;
- Partners’ image;
- Past of the cooperation relationship.
- Compatibility of strategies;
- Solving conflicts;
- Balance of power and management in the cooperation;
- Compatibility of business cultures;
- Stability of the cooperation;
- Partners’ influence in decision-making;
- Partners’ adaptation to the cooperation process;
- Planning future activities.
- Collaboration results showed there was an increase in sales;
- Cooperation results showed there was an increase in profit;
- Increased customer satisfaction from the results of cooperation.
3.4. Descriptive Analysis Results
3.5. Measurement Model Analysis
3.6. Structural Model Analysis
4. Discussion
5. Conclusions, Contribution, Implication and Limitation
5.1. Conclusions
5.2. Contribution
5.3. Implication
5.4. Limitation and Future Research
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Conflicts of Interest
References
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Criteria | Frequency (n = 317) | Percentage (100%) | |
---|---|---|---|
1. Size of the firms | |||
a. | Micro/<300 | 246 | 78% |
b. | Small/300 jt—2.5 m | 69 | 22% |
c. | Medium/2.5 m—50 m | 2 | 1% |
2. Age of firms | |||
a. | 0–1 | 192 | 61% |
b. | 2–5 | 75 | 24% |
c. | 6–10 | 24 | 8% |
d. | >10 | 26 | 8% |
3. Respondent’s Last Education Identification | |||
a. | Senior High School | 221 | 70% |
b. | Diploma 3 | 22 | 7% |
c. | Bachelor | 56 | 18% |
d. | Master/Magister | 18 | 6% |
4. Type of Firms | |||
a. | Basic chemical industry sector | 5 | 2% |
b. | Consumer goods sector | 173 | 55% |
c. | Infrastructure/utility and transportation sector | 12 | 4% |
d. | Export/Import Sector | 2 | 1% |
e. | Miscellaneous sectors (Handicraft, Fashion, Distributors, etc.) | 100 | 32% |
f. | Property/real estate sector and building construction | 3 | 1% |
g. | Exchange/services and investment sector | 22 | 7% |
5. Gender | |||
a. | Male | 194 | 61% |
b. | Female | 123 | 39% |
6. Informant | |||
a. | Owner | 187 | 59% |
b. | Director/Manager | 24 | 8% |
c. | Assistant | 106 | 33% |
7. Data source location | |||
a. | Surabaya | 99 | 31% |
b. | Sidoarjo | 125 | 39% |
c. | Gresik | 6 | 2% |
d. | Pasuruan | 3 | 1% |
e. | Jember | 54 | 17% |
f. | Banyuwangi | 11 | 3% |
g. | Lombok | 11 | 3% |
h. | Semarang | 1 | 0% |
i. | Mojokerto | 2 | 1% |
j. | Malang | 2 | 1% |
k. | Outer Java | 3 | 1% |
Variable | Mean | Standard Deviation |
---|---|---|
Strategic Alliances | 4.31 | 0.60 |
Absorptive capacity | 4.14 | 0.56 |
Organizational Performance | 4.39 | 0.58 |
Indicator | AS | AC | OP | SE | p-Value |
---|---|---|---|---|---|
CR: 0.842 | AVE: 0.641 | ||||
AS7 | 0.784 | −0.017 | 0.041 | Reflect 0.051 | <0.001 |
AS8 | 0.822 | −0.018 | 0.008 | Reflect 0.051 | <0.001 |
AS9 | 0.795 | 0.035 | −0.049 | Reflect 0.051 | <0.001 |
CR: 0.882 | AVE: 0.519 | ||||
AC4 | −0.102 | 0.647 | 0.089 | Reflect 0.052 | <0.001 |
AC6 | 0.191 | 0.689 | −0.120 | Reflect 0.052 | <0.001 |
AC7 | 0.097 | 0.782 | −0.084 | Reflect 0.051 | <0.001 |
AC8 | −0.109 | 0.786 | 0.034 | Reflect 0.051 | <0.001 |
AC9 | −0.069 | 0.686 | 0.077 | Reflect 0.052 | <0.001 |
AC12 | −0.005 | 0.751 | −0.007 | Reflect 0.051 | <0.001 |
AC13 | −0.008 | 0.688 | 0.023 | Reflect 0.052 | <0.001 |
CR: 0.905 | AVE: 0.544 | ||||
OP6 | 0.164 | −0.074 | 0.638 | Reflect 0.052 | <0.001 |
OP9 | 0.117 | −0.048 | 0.664 | Reflect 0.052 | <0.001 |
OP11 | −0.126 | 0.149 | 0.733 | Reflect 0.052 | <0.001 |
OP12 | −0.143 | 0.018 | 0.756 | Reflect 0.051 | <0.001 |
OP13 | 0.02 | 0.032 | 0.822 | Reflect 0.051 | <0.001 |
OP14 | 0.018 | −0.043 | 0.769 | Reflect 0.051 | <0.001 |
OP15 | 0.032 | 0.002 | 0.757 | Reflect 0.051 | <0.001 |
OP16 | −0.049 | −0.052 | 0.744 | Reflect 0.052 | <0.001 |
Strategic Alliances | Absorptive Capacity | Organizational Performance | |
---|---|---|---|
Strategic Alliances | 0.8 | 0.251 | 0.214 |
Absorptive Capacity | 0.251 | 0.72 | 0.397 |
Org. Performance | 0.214 | 0.397 | 0.737 |
Panel A (direct) | ||
---|---|---|
Hypotheses | Coefficient | Decision |
SA > OP | 0.22 *** | Supported |
Panel B (indirect) | ||
Hypotheses | Coefficient | Decision |
SA > OP | 0.09 *** | Supported |
SA > AC | 0.30 *** | Supported |
AC > OP | 0.39 *** | Supported |
Hypotheses | VAF | Decision |
SA > AC > OP | 34.72 percent | Partial Mediation, Supported |
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Kustiningsih, N.; Tjahjadi, B.; Soewarno, N. Projecting Experience of Technology-Based MSMEs in Indonesia: Role of Absorptive Capacity Matter in Strategic Alliances and Organizational Performance Relationship. Sustainability 2022, 14, 12025. https://doi.org/10.3390/su141912025
Kustiningsih N, Tjahjadi B, Soewarno N. Projecting Experience of Technology-Based MSMEs in Indonesia: Role of Absorptive Capacity Matter in Strategic Alliances and Organizational Performance Relationship. Sustainability. 2022; 14(19):12025. https://doi.org/10.3390/su141912025
Chicago/Turabian StyleKustiningsih, Nanik, Bambang Tjahjadi, and Noorlailie Soewarno. 2022. "Projecting Experience of Technology-Based MSMEs in Indonesia: Role of Absorptive Capacity Matter in Strategic Alliances and Organizational Performance Relationship" Sustainability 14, no. 19: 12025. https://doi.org/10.3390/su141912025