FACTOR ANALYSIS OF ORGANIZATION INNOVATION FOR SMALL AND MEDIUM ENTERPRISE IN FOOD SECTOR

Abstract

 The objectives of this research were 1) to study the composition of organizational innovation of medium and small businesses in food business in the central region and 2) to examine the confirmatory of the constituent structure of small and medium-sized businesses in food business in central region. The concept of organizational innovation. on the theory of knowledge distribution among entrepreneurs innovation diffusion theory The population is 400 small and medium-sized business entrepreneurs in the food business in the central region. The random sampling in specific order in the list, the research instrument used a questionnaire. Data analysis used exploratory and confirmatory factor analysis. The results of the research showed that 1) all the questions used to measure the 9 components of the questionnaire passed the minimum criteria required to have a component weight greater than 0.50 and 2) the results of the confirmatory factor examination of the structure found that there was a measure index. Consistency through the specified criteria is Chi-square=415.06, df=27, P-value=0.000, RMSEA=0.040

Knowledge gained from research and utilization is to increase efficiency in various areas of management, reduce production costs and improve production processes, reduce unnecessary production processes. Including access to modern marketing channels through social media and manufactured goods, such as food products, need to make a difference in the product production to meet consumers and tastes.