Measuring the Organizational Innovation Capabilities (A case study of SMEs Food Industry in Surabaya-Indonesia)

Abstract

The presence of Micro, Small and Medium Enterprises (MSMEs) is consider as one of the most important drivers of the economy in Indonesia. The existence of MSMEs can also be the backbone of the community's economy which plays an important role in growing the economy of a region. As happened in East Java Province- Indonesia. MSMEs sector contributes greatly to the economy of East Java. Therefore, the power of small and medium enterprises should not be underestimated. Innovation and development must target MSMEs. Innovation is believed to be an important thing to do in organizations because it can derived organizational success. Specific attributes of Organizational Innovation Capabilities that companies can use to build a company's competitive advantage are: Product Innovation Capabilities and Process Innovation Capabilities. The results of data analysis show that Organizational Innovation Capability is best reflected by Product Innovation Capability, followed by Process Innovation Capability. Future research on different dimension of Organizational Innovation Capability needed to get boarded overview of SMEs Organizational Innovation Capability