FACTOR ANALYSIS OF PRODUCT INNOVATION FOR SMALL AND MEDIUM ENTERPRISE OF FOOD SECTOR

Abstract

This study aims to study the factor of innovation in the small and medium enterprise in food sector. In the term of literature focus product innovation with the innovation theory and entrepreneurial value creation theory. By collecting samples from 400 SME entrepreneurs who are business owners or authorized persons in the central region and specific vicinities. Because there are the largest This study aims to study the factor of innovation in the small and medium enterprise in food sector. In the term of literature focus product innovation with the innovation theory and entrepreneurial value creation theory. By collecting samples from 400 SME entrepreneurs who are business owners or authorized persons in the central region and specific vicinities. Because there are the largest number of entrepreneurs (Office of Small of Medium Enterprise Promotion, 2021) by collecting samples from SMEs in food sector. Researcher use the questionnaires as a research tool. As well as to examine the research tools from 5 experts with a consistent value between 0.60-1.00. The percentage analysis was used. Mean and factor analysis.
The research results by factor analysis revealed that the product innovation variables found that all 5 components factor of the questionnaire passed the minimum qualifying criteria greater than 0.50, consistent with the confirmatory factor analysis. The results of the multiple linearity test revealed that the tolerance value was 0.835 and the VIF value was 1.298, and the AVE value was 0.545 and the CR value was 0.080. It can be concluded that the research tool is highly accurate. Moreover, the reliability analysis of latent variable (Pc) and mean of extracted variance of latent variable (Pv) found that Pc at 0.90 and Pv at 0.66.
In conclusion, all five factors of the product innovation met the minimum criteria as specified. Incidentally, an element can be split into two. It was found that the question of increasing the production quality of the components and materials of the current product (Product5) had the highest factor loading weight at 0.920. As well as packaging that can add value and attract the attention of consumers. The important thing is to develop products that are suitable for consumers in each age group. Together with promoting the development of marketing innovations such as promoting marketing through social media new marketing promotion.