Understanding Barriers to Innovation and its Linkage to Indonesian Firms- Openness Decision
Arif Hartono
Prodi Manajemen, Fakultas Ekonomi, Universitas Islam Indonesia
Abstract
This study examines a broad firms- openness decision, conceptualised in terms of external search breadth and depth, external R&D, cooperation, and acquisition activities, as a response to different innovation barriers faced by Indonesian firms. Data derived from Indonesia innovation survey. Exploratory factor analysis is used to identify and combine innovation barriers variables. Ordered logistic estimation is used to measure the impact of innovation barriers on firm openness decision. Logistic regression is used to measure the impact of innovation barriers on firm openness indicators such as external R&D, cooperation, and acquisition as the variables are binary variables. The main findings indicate that different barriers to innovation lead to different firms- openness decisions. This study contributes to the innovation barrier literature by empirically testing whether experiencing barriers to innovation is associated with a broader and deeper approach to openness. Previous studies tend to link innovation barriers with a narrow firms- openness decision.
Keywords: Innovation barriers, open innovation, Indonesian firms
Topic: Kewirausahaan Dan Inovasi Bisnis