Unique Capabilities and Product Innovation: Effects on the Competitiveness and Implications for Business Performance of Small and Medium Coffee Enterprises
Nizar Alam Hamdani
Universitas Garut
Abstract
Indonesia is a country producing various types of coffee. Each type of coffee has its characteristics in terms of its level of viscosity, taste and acidity, depending on plantation soil structure, plantation altitude and weather. These characteristics may also be affected by how the coffee is processed and brewed. The purpose of this study is to examine the influence of unique capabilities and product innovation on the competitiveness and business performance of small and medium coffee enterprises. 35 small and medium coffee enterprises were chosen as the sample using a non-probability sampling technique. Data processing was performed using path analysis. It was revealed that the influence of unique capabilities on the competitiveness than product innovation and that competitiveness had influence on the business performance. This implies that it is necessary for small and medium coffee enterprises to make product differentiation to offer to the consumers.
Keywords: Unique Capabilities, Product Innovation, Competitiveness
Topic: Strategic Management, Entrepreneurship and Contemporary Issues