THE INFLUENCE OF ADAPTIVE CAPABILITY AND ORGANIZATIONAL CREATIVITY TO PRODUCT INNOVATION OF SMALL AND MEDIUM ENTERPRISES
DOI:
https://doi.org/10.60101/rmuttgber.2024.275468Keywords:
Adaptive Capability, Organizational Creativity, Product InnovationAbstract
The objective of this research was to examine the influence of adaptive capability and organizational creativity to product innovation. This quantitative research used the questionnaire to collect data from a sample of 256 SMEs in food and beverage manufacturing sector. The statistics used in the data analysis include descriptive analysis and structural equation model analysis (SEM). The results found that adaptive capability has a direct effect on organizational creativity, with a coefficient of 0.786 (p-value < 0.001). Adaptive capability has direct effect and indirect effect on product innovation, with a coefficient of 0.377 and 0.216 (p-value < 0.001). Organizational creativity has a direct effect on product innovation, with a coefficient of 0.275 (p-value < 0.05). The developed model was consistent with the empirical data, with values /d.f. = 2.471, GFI = 0.833, IFI = 0.915, TLI = 0.900, CFI = 0.914, RMSEA = 0.076. The results of this research provided guidelines for SMEs in formulating strategic plans and creating an enabling environment for enhancing adaptability and innovative creativity.
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