Share:


HR innovation in mediating entrepreneurial motivation in improving the competitive ability of Palu Fried Onions MSMEs

    Andi Indriani Ibrahim Affiliation
    ; Margono Setiawan Affiliation
    ; Noermijati Affiliation
    ; Mintarti Rahayu Affiliation

Abstract

Purpose – This study aims to describe the competitive ability of MSMEs Palu Fried Onions (BGP) from the point of view of human resources, namely innovation and the influence of motivation.


Research methodology – This research was conducted on 141 active BGP MSMEs in Palu and tested using quantitative methods using SEM-PLS analysis testing.


Findings – The study results show that Human Resource Innovation is proven to affect the ability of the Palu Fried Onions MSMEs.


Research limitations – A limitation of this study is that it focuses solely on the competitive abilities of BGP MSMEs from the perspective of human resources, specifically innovation and motivation, and does not explore other potential factors that might influence their competitiveness.


Practical implications – The results of this study have the benefit of being practical considerations for driving BGP MSMEs to increase their competitiveness; besides that, the results of this study also expand the variation of the Diamond Model or the Diamond Model of production factors to be competitive.


Originality/Value – Rather than focusing solely on traditional factors, this research delves into the innovative realm of human resource innovation and motivation as key drivers of competitiveness.

Keyword : competitive ability, human resource management, innovation, motivation, MSMEs

How to Cite
Ibrahim, A. I., Setiawan, M., Noermijati, & Rahayu, M. (2024). HR innovation in mediating entrepreneurial motivation in improving the competitive ability of Palu Fried Onions MSMEs. Business, Management and Economics Engineering, 22(1), 77–95. https://doi.org/10.3846/bmee.2024.19933
Published in Issue
Apr 30, 2024
Abstract Views
500
PDF Downloads
423
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

References

Amrita, K., Garg, C. P., Raghuvanshi, J., & Singh, S. (2022). An integrated model to prioritize the strategies for women entrepreneurship development to overcome its barriers: Case of Indian MSMEs. IEEE Transactions on Engineering Management, 71, 3964–3978. https://doi.org/10.1109/TEM.2022.3217356

Atwater, L., & Carmeli, A. (2009). Leader–member exchange, feelings of energy, and involvement in creative work. The Leadership Quarterly, 20(3), 264–275. https://doi.org/10.1016/j.leaqua.2007.07.009

Bank Indonesia. (2017). Komoditas Unggulan Daerah (Komoditas/Produk/Jenis Usaha (KPJU) Unggulan) [Regional Leading Commodities (Leading Commodities/Products/Types of Business (KPJU)]. https://seminstitute.co.id/penelitian-komoditas-produk-jenis-usaha-kpju-unggulan-umkm/

Baron, R. M., & Kenny, D. A. (1986). The moderator-mediator variable distinction in social psychological research. Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51(6), 1173–1182. https://doi.org/10.1037/0022-3514.51.6.1173

Bogilović, S., Bortoluzzi, G., Černe, M., Ghasemzadeh, K., & Žnidaršič, J. (2021). Diversity, climate, and innovative work behavior. European Journal of Innovation Management, 24(5), 1502–1524. https://doi.org/10.1108/EJIM-03-2020-0100

Buttner, E. H., & Moore, D. P. (1997). Women’s organizational exodus to entrepreneurship: Self-reported motivations and correlates with success. Journal of Small Business Management, 35(1), 34–46.

Carvalho, M., & Mamede, H. S. (2018). The impact of e-commerce on the success of microenterprise retail sector of the Pinhal Interior Norte sub-region of Portugal. Procedia Computer Science, 138, 571–579. https://doi.org/10.1016/j.procs.2018.10.077

Chedli, M. K. E. (2016). Entrepreneurial motivation and performance of enterprises. Economics, Management, and Financial Markets, 11(1), 175–188.

Chen, J., Su, Y. S., de Jong, J. P. J., & von Hippel, E. (2020). Household sector innovation in China: Impacts of income and motivation. Research Policy, 49(4), Article 103931. https://doi.org/10.1016/j.respol.2020.103931

Chin, W. W. (1998). Commentary: Issues and opinion on structural equation modeling. MIS Quarterly, 22(1), 7–17.

Department of Industry and Trade of Central Sulawesi Province. (2021). The MSMEsBGP. http://disperindag.sultengprov.go.id/index

Eijdenberg, E. L., Paas, L. J., & Masurel, E. (2015). Entrepreneurial motivation and small business growth in Rwanda. Journal of Entrepreneurship in Emerging Economies, 7(3), 212–240. https://doi.org/10.1108/JEEE-01-2015-0004

Ferguson , K. L., & Reio, T. G. (2010). Human resource management systems and firm performance. Journal of Management Development, 29(5), 471–494. https://doi.org/10.1108/02621711011039231

Gál, A. N. (2010). Competitiveness of small and medium-sized enterprises – A possible analytical framework. Hungarian Electronic Journal of Science, HEJ: ECO-100115-A, 1–14.

Gemina, D., Silaningsih, E., & Yuningsih, E. (2016). Pengaruh motivasi usaha TERHADAP keberhasilan usaha dengan kemampuan usaha sebagai variabel mediasi pada industri kecil menengah makanan ringan Priangan Timur-Indonesia [The effect of business motivation on business success with business ability as a mediation variable in the small and medium snack industry of East Priangan-Indonesia]. Jurnal Manajemen Teknologi, 15(3), 297–323. https://doi.org/10.12695/jmt.2016.15.3.6

Griffin, R. W., & Moorhead, G. (2014). Organizational behavior: Managing people and organizations (11th ed.). South-Western Cengage Learning.

Gupta, V. (2020). Relationships between leadership, motivation and employee-level innovation: Evidence from India. Personnel Review, 49(7), 1363–1379. https://doi.org/10.1108/PR-11-2019-0595

Gundolf, K., Gast, J., & Géraudel, M. (2017). Startups’ innovation behaviour: An investigation into the role of entrepreneurial motivations. International Journal of Innovation Management, 21(07), Article 1750054. https://doi.org/10.1142/S1363919617500542

Hakhverdyan, D., & Shahinyan, M. (2022). Competitiveness, innovation and productivity of the country. Marketing and Management of Innovations, 1(1), 108–123. https://doi.org/10.21272/mmi.2022.1-08

Hamad, H., Elbeltagi, I., & El-Gohary, H. (2018). An empirical investigation of business-to-business e-commerce adoption and its impact on SMEs competitive advantage: The case of Egyptian manufacturing SMEs. Strategic Change, 27(3), 209–229. https://doi.org/10.1002/jsc.2196

Hair, J., Hollingsworth, C. L., Randolph, A. B., & Chong, A. Y. L. (2017). An updated and expanded assessment of PLS-SEM in information systems research. Industrial Management & Data Systems, 117(3), 442–458. https://doi.org/10.1108/IMDS-04-2016-0130

Hasibuan, M. S. (2001). Organisasi dan motivasi: Dasar peningkatan produktivitas [Organization and motivation: Basics of increasing productivity]. Bumi Aksara.

Hove, P., Sibanda, K., & Pooe, D. (2014). The impact of Islamic banking on entrepreneurial motivation, firm competitiveness and performance in South African small and medium enterprises. Mediterranean Journal of Social Sciences, 5(15), 165–174. https://doi.org/10.5901/mjss.2014.v5n15p165

Huhtala, J. P., Sihvonen, A., Frösén, J., Jaakkola, M., & Tikkanen, H. (2014). Market orientation, innovation capability, and business performance: Insights from the global financial crisis. Baltic Journal of Management, 9(2), 134–152. https://doi.org/10.1108/BJM-03-2013-0044

Husti, I., & Mahyarni, M. (2019). Islamic leadership, innovation, competitive advantages, and performance of SMEs in Indonesia. East Asia, 36, 369–383. https://doi.org/10.1007/s12140-019-09325-7

Ibrahim, A. I., Setiawan, M., Noermijati, & Rahayu, M. (2023). Pengaruh kepemimpinan kewirausahaan, motivasi kewirausahaan dan SDM berorientasi inovasi terhadap kemampuan bersaing UMKM: Peran moderasi kesadaran berinovasi (Studi pada UMKM bawang goreng di Provinsi Sulawesi Tengah) [The influence of entrepreneurial leadership, entrepreneurial motivation and innovation-oriented human resources on the competitive ability of MSMEs: The moderating role of innovation awareness (Study on fried onion MSMEs in Central Sulawesi Province)] [Doctoral dissertation, Brawijaya University].

Ilyas, R., & Hartono, R. (2023). Analysis of the influence of digitalization on UMKM growth (Case study of Bangka Belitung and Yogyakarta UMKM). International Journal of Environmental, Sustainability, and Social Science, 4(2), 477–481. https://doi.org/10.38142/ijesss.v4i2.462

Janssen, O. (2000). Job demands, perceptions of effort‐reward fairness and innovative work behaviour. Journal of Occupational and Organizational Psychology, 73(3), 287–302. https://doi.org/10.1348/096317900167038

Jiménez-Jiménez, D., & Sanz-Valle, R. (2011). Innovation, organizational learning, and performance. Journal of Business Research, 64(4), 408–417. https://doi.org/10.1016/j.jbusres.2010.09.010

Karadeniz, B., Erzurum, E., Akcan, A. F., & Zaim, S. (2021). Intrinsic motivation and innovative work behavior: The mediating role of creative self-efficacy. In M. Ozsahin (Ed.), New strategic, social and economic challenges in the age of society 5.0 implications for sustainability: Vol 121. European Proceedings of Social and Behavioural Sciences (pp. 136–144). https://doi.org/10.15405/epsbs.2021.12.04.14

Kheng, Y. K., Mahmood, R., & Beris, S. J. H. (2013). A conceptual review of innovative work behavior in knowledge intensive business services among knowledge workers in Malaysia. International Journal of Business, Humanities, and Technology, 3(2), 91–99. https://www.ijbhtnet.com/journals/Vol_3_No_2_February_2013/9.pdf

Knezović, E., & Drkić, A. (2021). Innovative work behavior in MSMEs: The role of transformational leadership. Employee Relations: The International Journal, 43(2), 398–415. https://doi.org/10.1108/ER-03-2020-0124

Kundu, S. C., Kumar, S., & Gahlawat, N. (2019). Empowering leadership and job performance: Mediating role of psychological empowerment. Management Research Review, 42(5), 605–624. https://doi.org/10.1108/MRR-04-2018-0183

Kusdiyanti, H., Zanky, M. N., & Wati, A. P. (2021). Innovation of poverty eradication pioneer school model for scavenger descent based on micro, small, and medium enterprises in the Malang. Journal of Physics: Conference Series, 1807(1), Article 012002. https://doi.org/10.1088/1742-6596/1807/1/012002

La Falce, J. L., De Muylder, C. F. De, & Santos, M. F. (2020). Competitiveness: Theoretical reflections and relation with innovation. Revista Horizontes Interdisciplinares Da Gestão, 4(2), 1–21. https://www.academia.edu/74217732/Competitiveness_Theoretical_Reflections_and_Relation_with_Innovation

Machmud, S. (2017). The effect of motivational entrepreneurship on business performance of MSMEs moderated by process innovation. Archives of Business Research, 5(8), 142–150. https://doi.org/10.14738/abr.58.3585

Machmud, S., & Sidharta, I. (2016). Entrepreneurial motivation and business performance of MSMEs in the SUCI clothing center, Bandung, Indonesia. DLSU Business & Economics Review, 25(2), 63–78. https://www.dlsu.edu.ph/wp-content/uploads/2019/03/5machmud-020616.pdf

Mangkunegara, A., & Prabu, A. A. (2016). Manajemen Sumber Daya Manusia Perusahaan. Bandung: PT. Remaja Rosdakarya.

McClelland, D. C. (1965). N achievement and entrepreneurship: A longitudinal study. Journal of Personality and Social Psychology, 1(4), 389–392. https://doi.org/10.1037/h0021956

McDermott, C. M., & Prajogo, D. I. (2012). Service innovation and performance in MSMEs. International Journal of Operations & Production Management, 32(2), 216–237. https://doi.org/10.1108/01443571211208632

Mingzhu, X. (2023). Work attitude, innovation ability and innovation performance of employees in Chinese manufacturing enterprises. International Journal of Business Marketing and Management, 8(3), 2456–4559. https://www.ijbmm.com/paper/May2023/8340436454.pdf

Morais, G. M., Santos, V. F., Tolentino, R. D. S. da S., & Martins, H. C. (2021). Intrapreneurship, innovation, and competitiveness in organization. International Journal of Business Administration, 12(2). https://doi.org/10.5430/ijba.v12n2p1

Nasution, A. H., & Kartajaya, H. (2018). Inovasi. Andi.

Nurani, H., Dwiana, E., & Eti, E. (2013). Pengaruh kepemimpinan, motivasi usaha dan penggunaan informasi terhadap kinerja pengambilan keputusan dan dampaknya terhadap kinerja perusahaan (Survey pada UMKM di Cimahi) [Effect of leadership, business motivation and use of information on decision making performance and impact on business performance (Survey on SMEs Cimahi)]. Sosiohumaniora, 15(3), 261–271. https://doi.org/10.24198/sosiohumaniora.v15i3.5751

Omri, W. (2015). Innovative behavior and venture performance of MSMEs: The moderating effect of environmental dynamism. European Journal of Innovation Management, 18(2), 195–217. https://doi.org/10.1108/EJIM-02-2013-0015

Poltak, H., Doloksaribu, T. A., Muhfizar, M., Gunaisah, E., & Mustasim, M. (2021). Students’ perceptions of the movie story of joy inspiring entrepreneurs. Budapest International Research and Critics Institute-Journal (BIRCI-Journal), 4(3), 3900–3905. https://www.bircu-journal.com/index.php/birci/article/view/2157

Porter, M. E. (1990). The competitive advantage of nations. Journal of Management, 17(1), 213–227. https://doi.org/10.1177/014920639101700113

Purwani, S. R., Wahyu, W. T., & Nining, Y. (2018). Multiplying success: The influence of behavior, intrinsic motivation, and innovation of female handicraft entrepreneurs. Journal of Aplied Management, 16(3), 503–510. https://doi.org/10.21776/ub.jam.2018.016.03.15

Rahman, D. K., Setyanti, S. W. L. H., & Saleh, C. (2015). Pengaruh kreativitas dan perilaku inovatif terhadap keberhasilan usaha industri kecil melalui motivasi usaha sebagai variabel mediasi (Studi kasus pada pengusaha UKM kerajinan bambu di Desa Gintangan Kabupaten Banyuwangi), [Effect of creativity and innovative behavior to the success small industries trough motivational business as mediation variable (Case study on bamboo craft SME entrepreneurs in Gintangan Village of Banyuwangi Regency)]. Jember University.

Rajan, S., & Panicker, S. (2020). The concept of entrepreneurial ability-evidence from women in MSMEs of Karnataka state. International Journal of Entrepreneurship and Small Business, 41(1), 1–32. https://doi.org/10.1504/IJESB.2020.109429

Raposo, M. L. B., Matos Ferreira, J. J., Finisterra do Paço, A. M., & Gouveia Rodrigues, R. J. A. (2008). Propensity to firm creation: Empirical research using structural equations. International Entrepreneurship and Management Journal, 4, 485–504. https://doi.org/10.1007/s11365-008-0089-9

Raposo, M. L., Ferreira, J. J. M., & Fernandes, C. I. (2014). Local and cross-border SME cooperation: Effects on innovation and performance. Revista Europea de Dirección y Economía de la Empresa, 23(4), 157–165. https://doi.org/10.1016/j.redee.2014.08.001

Robichaud, Y., McGraw, E., & Alain, R. (2001). Toward the development of a measuring instrument for entrepreneurial motivation. Journal of Developmental Entrepreneurship, 6(2), 189–201.

Sari, A. P., & Hayadi, I. (2022). Efikasi diri kreatif memediasi intelegensi terhadap perilaku kerja inovatif pada UMKM di Kota Bengkulu [Intelligence on innovative work behavior: The mediating role of creative self-efficacy at UMKM in Benkulu City]. Jurnal Manajemen dan Organisasi, 13(2), 166–179. https://doi.org/10.29244/jmo.v13i2.40634

Sanchez-Roige, S., Gray, J. C., MacKillop, J., Chen, C. H., & Palmer, A. A. (2018). The genetics of human personality. Genes, Brain and Behavior, 17(3), Article e12439. https://doi.org/10.1111/gbb.12439

Saoula, O., Shamim, A., Ahmad, M. J., & Abid, M. F. (2023). Do entrepreneurial self-efficacy, entrepreneurial motivation, and family support enhance entrepreneurial intention? The mediating role of entrepreneurial education. Asia Pacific Journal of Innovation and Entrepreneurship, 17(1), 20–45. https://doi.org/10.1108/apjie-06-2022-0055

Sinambela, E. A., & Ernawati, E. (2021). Analysis of the role of experience, ability and motivation on employee performance. Journal of Social Science Studies (JOS3), 1(2), 69–74. https://doi.org/10.56348/jos3.v1i2.13

Scott, S. G., & Bruce, R. A. (1994). Determinants of innovative behavior: A path model of individual innovation in the workplace. Academy of Management Journal, 37(3), 580–607.

Selden, S. C., & Brewer, G. A. (2000). Work motivation in the senior executive service: Testing the high-performance cycle theory. Journal of Public Administration Research and Theory, 10(3), 531–550. https://doi.org/10.1093/oxfordjournals.jpart.a024280

Setiawan, L. R., & Laily, N. (2018). Pengaruh motivasi berprestasi dan perilaku inovatif terhadap keberhasilan usaha [The influence of achievement motivation and innovative behavior on business success]. Jurnal Ilmu dan Riset Manajemen (JIRM), 7(9).

Setyawati, A., Suggangga, A., Wibowo N. A., Rahma A., & Maula F. I. (2023). Ability to use digitalization in increasing the competitive advantages of Msmes in Indonesia: Systematic literature review (SLR). International Journal of Economics and Management Research, 2(2), 48–65. https://doi.org/10.55606/ijemr.v2i2.94

Shafaei, R. (2009). An analytical approach to assessing the competitiveness in the textile industry. Journal of Fashion Marketing and Management: An International Journal, 13(1), 20–36. https://doi.org/10.1108/13612020910939851

Shahzad, K., Arenius, P., Muller, A., Rasheed, M. A., & Bajwa, S. U. (2019). Unpacking the relationship between high-performance work systems and innovation performance in MSMEs. Personnel Review, 48(4), 977–1000. https://doi.org/10.1108/PR-10-2016-0271

Shane, S., Locke, E. A., & Collins, C. J. (2003). Entrepreneurial motivation. Human Resource Management Review, 13(2), 257–279. https://doi.org/10.1016/S1053-4822(03)00017-2

Smit, A. J. (2010). The competitive advantage of nations: Is porter’s diamond framework a new theory that explains the international competitiveness of countries? Southern African Business Review, 14(1), 105–130.

Solymossy, E. (1998). Entrepreneurial dimensions: The relationship of individual, venture, and environmental factors to success. [Doctoral dissertation, Case Western Reserve University]. https://www.academia.edu/2576147/Entrepreneurial_dimensions_the_relationship_of_individual_venture_and_environmental_factors_to_success

Stoffers, J. M. M., & Van der Heijden, B. I. J. M. (2009). Towards an HRM model predicting organisational performance by enhancing innovative work behaviour: A study among Dutch MSMEs in the province of Limburg. Business Leadership Review, 6(4), 1–13. https://repository.ubn.ru.nl/bitstream/handle/2066/139435/139435.pdf

Subowo, R., & Setiawan, R. (2015). Pengaruh kepemimpinan transformasional dan motivasi kerja terhadap kepuasan kerja karayawan pada PT multi artistikacithra, [The influence of transformational leadership and work motivation on employee job satisfaction at PT multi artistikacithra]. Agora, 3(1), 493–499.

Sulistiowati, T. (2014, September 25). Bawang Goreng Mbok Sri Makin kesohor [Mbook Sri fried onions are getting more famous]. Kontan. https://peluangusaha.kontan.co.id/news/bawang-goreng-mbok-sri-makin-kesohor-1

Suryana, Y., & Bayu, K. (2011). Kewirausahaan pendekatan karakteristrik wirausaha sukses [Entrepreneurship approach characteristics of successful entrepreneurs]. Kencana.

Thamrin, M. H., Wahyudi, S., Ngatno, Widiartanto, & Yuwanto. (2022). Building transformational leadership in efforts to improve the performance of handicraft MSMEs in Medan City. WSEAS Transactions on Business and Economics, 19, 505–520. https://doi.org/10.37394/23207.2022.19.46

Toska, A., Ramadani, V., Dana, L.-P., Rexhepi, G., & Zeqiri, J. (2022). Family business successors’ motivation and innovation capabilities: The case of Kosovo. Journal of Family Business Management, 12(4), 1152–1166. https://doi.org/10.1108/JFBM-11-2021-0136

Udriyah, Tham, J., & Ferdous Azam, S. M. (2019). The effects of market orientation and innovation on competitive advantage and business performance of textile SMEs. Management Science Letters, 9(9), 1419–1428. https://doi.org/10.5267/j.msl.2019.5.009

West, M. A., & Farr, J. L. (1989). Innovation at work: Psychological perspectives. Social Behavior Technology, 4, 15–30.

Wilson, F., Kickul, J., & Marlino, D. (2007). Gender, entrepreneurial self–efficacy, and entrepreneurial career intentions: Implications for entrepreneurship education. Entrepreneurship Theory and Practice, 31(3), 387–406. https://doi.org/10.1111/j.1540-6520.2007.00179.x

Yan, Z. (2021). Management ability, innovation input and enterprise performance. E3S Web of Conferences, 253, 1–5. https://doi.org/10.1051/e3sconf/202125303059

Yateno. (2020). Perilaku organisasional [Organisational behavior]. Yogyakarta.