The Effect of Business Model Innovation, Customer Trust and Commitment on SME Business Growth
DOI:
https://doi.org/10.59141/jiss.v3i07.647Keywords:
role, program, kentongan broadcastAbstract
Business growth includes an increase in the number of turnover and an increase in the number of employees, which means if the business grows, its sales also increase. Efforts for SMEs to develop, the competitiveness of SMEs needs to be developed. Several factors can affect the growth of SMEs, so SMEs are required to innovate business models, increase trust, and commitment to customers in order to remain competitive with competitors out there. Due to the increasingly diverse needs of consumers, business people must also offer quality services so that consumers can feel comfortable. The primary purpose of this study was to determine the effect of business model innovation, customer trust, and customer commitment on SME business growth: a survey of the SME business at the Handicraft Center in Bantul. The population used in this research is the UKM craft center in Bantul. The sampling technique used in this research is purposive sampling. The sample used in this study amounted to 100 respondents. This study uses Structural Equation Modeling (SEM) analysis using the Partial Least Square (PLS) method. The results of this study indicate that business model innovation has a positive and significant effect on SME business growth, business model innovation through customer trust has a positive and insignificant impact on SME business growth, and business model innovation through customer commitment has a positive and significant impact on SME business growth.
References
Achtenhagen, Leona, Melin, Leif, & Naldi, Lucia. (2013). Dynamics of Business Models – Strategizing, Critical Capabilities and Activities for Sustained Value Creation Paper forthcoming in: Long Range Planning (2013). Long Range Planning, 46(6), 427–442. https://doi.org/10.1016/j.lrp.2013.04.002
Amit, Raphael, & Zott, Christoph. (2010). Business model innovation: Creating value in times of change. https://doi.org/10.2139/ssrn.1701660
Björkdahl, Joakim, & Holmén, Magnus. (2013). Business model innovation–the challenges ahead. International Journal of Product Development, 18(3/4), 213–225.
Boons, Frank, & Lüdeke-Freund, Florian. (2013). Business models for sustainable innovation: state-of-the-art and steps towards a research agenda. Journal of Cleaner Production, 45, 9–19. https://doi.org/10.1016/j.jclepro.2012.07.007
Chen, Jiawen, Liu, Linlin, & Wang, Yong. (2020). Business model innovation and growth of manufacturing SMEs: a social exchange perspective. Journal of Manufacturing Technology Management. https://doi.org/10.1108/JMTM-03-2020-0089
Durmaz, Yakup, & İlhan, Ahmet. (2015). Growth strategies in busynesses and a theoretical approach. International Journal of Business and Management, 10(4), 210. https://doi.org/10.5539/ijbm.v10n4p210
Eggers, F., O’Dwyer, M., Kraus, S., Vallaster, C., & Güldenberg, S. (2013). The impact of brand authenticity on brand trust and SME growth: A CEO perspective. Journal of World Business, 48(3), 340–348. https://doi.org/10.1016/j.jwb.2012.07.018
Evanschitzky, Heiner, Eisend, Martin, Calantone, Roger J., & Jiang, Yuanyuan. (2012). Success factors of product innovation: An updated meta‐analysis. Journal of Product Innovation Management, 29, 21–37. https://doi.org/10.1111/j.1540-5885.2012.00964.x
Ghozali, Imam, & Latan, Hengky. (2014). Partial Least Squares konsep, metode dan Aplikasi menggunakan program WarpPLS 4.0. Semarang: Badan Penerbit Universitas Diponegoro.
Hair Jr, Joseph F., Black, William C., Babin, Barry J., Anderson, Rolph E., & Tatham, R. L. (2010). SEM: An introduction. Multivariate data analysis: A global perspective. Multivariate Data Analysis: A Global Perspective, 629–686.
Hsu, Chih Hung, Chang, An Yuan, & Luo, Wei. (2017). Identifying key performance factors for sustainability development of SMEs – integrating QFD and fuzzy MADM methods. Journal of Cleaner Production, 161, 629–645. https://doi.org/10.1016/j.jclepro.2017.05.063
Huang, Hao Chen, Lai, Mei Chi, Lin, Lee Hsuan, & Chen, Chien Tsai. (2013). Overcoming organizational inertia to strengthen business model innovation: An open innovation perspective. Journal of Organizational Change Management, 26(6), 977–1002. https://doi.org/10.1108/JOCM-04-2012-0047
Kastalli, Ivanka Visnjic, & Van Looy, Bart. (2013). Servitization: Disentangling the impact of service business model innovation on manufacturing firm performance. Journal of Operations Management, 31(4), 169–180. https://doi.org/10.1016/j.jom.2013.02.001
Rangus, Kaja, & Slavec, Alenka. (2017). The interplay of decentralization, employee involvement and absorptive capacity on firms’ innovation and business performance. Technological Forecasting and Social Change, 120, 195–203. https://doi.org/10.1016/j.techfore.2016.12.017
Sugiyono, H. (2016). Metode kualitatif dan kuantitatif Cetakan ke-23. Alf. Bandung.
Velu, Chander. (2015). Business model innovation and third-party alliance on the survival of new firms. Technovation, 35, 1–11. https://doi.org/10.1016/j.technovation.2014.09.007
Vogels, Chantal B. F., Watkins, Anne E., Harden, Christina A., Brackney, Doug E., Shafer, Jared, Wang, Jianhui, Caraballo, César, Kalinich, Chaney C., Ott, Isabel M., & Fauver, Joseph R. (2021). SalivaDirect: A simplified and flexible platform to enhance SARS-CoV-2 testing capacity. Med, 2(3), 263–280. https://doi.org/10.1016/j.medj.2020.12.010
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2022 Shafira Firgynia Maharani, Zulian Yamit
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International. that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
