The Mediating Effect of Innovation in the Relationship Between Social Capital and Halal Culinary Business's Competitive Advantage
Keywords:
innovation, social capital dan competitive advantage, the mediating effect
Abstract
This study aims to examine how the role of innovation in its influence between social capital and competitive advantage. Research conducted on 150 halal culinary businesses in Yogyakarta province, Indonesia. This research uses purposive sampling techniques, primary data are collected through questionnaires distributed to managers and owners of halal culinary businesses. Data is processed using Smart PLS 3.0 software. The results prove the social capital has a direct effect on competitive advantage. Social capital has a positive and significant effect on innovation. Innovation has a positive and significant effect on competitive advantage. The results of the mediation role test obtained that social capital has a positive and significant effect on competitive advantage through innovation variables. That is, innovation in this research model is a mediating variable. This research clarifies the importance of social capital and innovation in achieving competitive advantage.
References
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Anderson, N., Potočnik, K., & Zhou, J. (2014). Innovation and creativity in organizations: A state-of-the-science review, prospective commentary, and guiding framework. Journal of management, 40(5), 1297-1333.
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Barney, J. B. (2001). Resource-based theories of competitive advantage: A ten-year retrospective on the resource-based view. Journal of management, 27(6), 643-650.
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Chen, K. H., Wang, C. H., Huang, S. Z., & Shen, G. C. (2016). Service innovation and new product performance: The influence of market-linking capabilities and market turbulence. International Journal of Production Economics, 172, 54-64.
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Coff, R. W. (1997). Human assets and management dilemmas: Coping with hazards on the road to resource-based theory. Academy of management review, 22(2), 374-402.
Cooke, P., & Wills, D. (1999). Small firms, social capital, and the enhancement of business performance through innovation programs. Small business economics, 13(3), 219-234.
Crescenzi, R., Gagliardi, L., & Percoco, M. (2013). Social capital and the innovative performance of Italian provinces. Environment and planning A, 45(4), 908-929.
Duryadi, 2022: Buku Ajar Metode Peneitian Ilmiah, Metode Penelitian Emperis Model Path Analysis dan Analisis Menggunakan SmartPL, Penerbit Yayasan Prima Agus Teknik, Semarang
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Handoyo, A. S. (2015). The effect of marketing innovation, market orientation, and social capital on competitive advantage and marketing performance: A study in MSMEs of embroidery Central Java Province. Journal of Economics, Business, & Accountancy Ventura, 18(3), 351-366.
Herrera, M. E. B. (2015). Creating competitive advantage by institutionalizing corporate social innovation. Journal of business research, 68(7), 1468-1474.
Hill, C.W. L., Jones, G.R. and Schilling, M.A. (2015), Strategic Management Theory, 11th edition, Cengage Learning, Canada.
Indonesian Ministry of National Development Planning, The Indonesian Sharia Economic Masterplan (MEKSI) 2019-2024
Jiang, T.Y.; Zhang, Y.Q.; Wang, J.J. A research on the relationship between corporate social capital and competitive advantages: Based on knowledge. Stud. Sci. Sci. 2010, 28, 1212– 1221.
Jiménez‐Jimenez, D., Sanz Valle, R., & Hernandez‐Espallardo, M. (2008). Fostering innovation:
the role of market orientation and organizational learning. European Journal of innovation
management, 11(3), 389-412.
Kim, N., & Shim, C. (2018). Social capital, knowledge sharing and innovation of small-and
medium-sized enterprises in a tourism cluster. International journal of contemporary
hospitality management, 30(6), 2417-2437.
Kumar Ranjit. (2011). RESEARCH METHODOLOGY a step-by-step guide for beginners, Third
Edition, Sage.
Landry, R., Amara, N., & Lamari, M. (2002). Does social capital determine innovation? To what extent? Technological forecasting and social change, 69(7), 681-701.
Lee, W. C., & Law, S. H. (2016). The roles of formal and informal institutions on innovations activity. Jurnal Ekonomi Malaysia, 50(2), 167-179.
Liu, C. H. S., & Fang, Y. P. (2016). Night markets: entrepreneurship and achieving competitive advantage. International Journal of Contemporary Hospitality Management, 28(11), 2374- 2398.
Nafei, W. A. (2016). Organizational agility: The key to organizational success. International Journal of Business and Management, 11(5), 296-309.
Nahapiet, J.and Ghoshal, K. (1998). Social Capital, Intellectual Capital, and the Organizational Advantage. Acad. Manag. Rev. 1998, 23, 242–266. [CrossRef]
Naidoo, V. (2010). Firm survival through a crisis: The influence of market orientation, marketing innovation and business strategy. Industrial marketing management, 39(8), 1311-1320.
Oladimeji, M. S., Amida, O. A., & Essien, E. A. (2019). Business Innovation and Competitive Advantage in Nigerian Manufacturing Sector. EMAJ: Emerging Markets Journal, 9(2), 37- 43.
Parzefall, M. R., & Kuppelwieser, V. G. (2012). Understanding the antecedents, the outcomes and the mediating role of social capital: An employee perspective. Human Relations, 65(4), 447-472.
Prabhu, P. (2019). The Effect of Innovation On Competitive Advantage in IT Companies: An Empirical Investigation, A Journal of Composition Theory, 12 (9), 1013-1025.
Rosli, M. M., & Sidek, S. (2013). The Impact of innovation on the performance of small and medium manufacturing enterprises: Evidence from Malaysia. Journal of Innovation Management in Small & Medium Enterprises, 2013, 1.
Sadalia, I., Irawati, N., & Mass, L. T. M. An Analysis of Competitive Advantage Based on Intellectual Capital, Social Capital And Strategic Entrepreneurship Among Student Entrepreneurs.
Sanchez-Famoso, V., Maseda, A. and Iturralde, T. (2014), “The role of internal social capital in organizational innovation: an empirical study of family firms”, European Management Journal, Vol. 32 No. 6, pp. 950-962.
Sekaran Uma & Bougie Roger. (2016). RESEARCH METHODS FOR BUSINESS, A Skill-Building
Approach, Seventh Edition, Wiley.
Shane, S., & Venkataraman, S. (2000). The promise of entrepreneurship as a field of research. Academy of management review, 25(1), 217-226.
Soulard, J., Knollenberg, W., Boley, B. B., Perdue, R. R., & McGehee, N. G. (2018). Social capital and destination strategic planning. Tourism Management, 69, 189-200.
Steinerowska-Streb, I., & Głód, G. (2022). Innovation of small and medium enterprises in times of Covid-19. Zeszyty Naukowe. Organizacja i Zarządzanie/Politechnika Śląska.
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Tjokropandojo, D. S., Aqmarini, A., & Fiisabiilillah, D. F. (2019). Modal sosial dalam menumbuhkan dan mendifusikan inovasi pertanian hortikultura sebagai basis pengembangan ekonomi lokal studi kasus: Kabupaten bandung dan bandung barat. TATALOKA, 21(1), 115-128.
Udriyah, U., Tham, J., & Azam, S. (2019). The effects of market orientation and innovation on competitive advantage and business performance of textile SMEs. Management Science Letters, 9(9), 1419-1428.
Yeşil, S., & Doğan, I. F. (2019). Exploring the relationship between social capital, innovation capability, and innovation. Innovation, 21(4), 506-532.
Yi-Ching, T. (2006). Effect of Social Capital and Absorptive Capability on Innovation in Internet
Marketing. International Journal of Management, 23(1), 157–166. Retrieved
fromhttp://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=20302803&site=e
host-live
Zach, F. J., & Hill, T. L. (2017). Network, knowledge and relationship impacts on innovation in tourism destinations. Tourism Management, 62, 196-207.
Zhao, Z., Meng, F., He, Y., & Gu, Z. (2019). The influence of corporate social responsibility on competitive advantage with multiple mediations from social capital and dynamic capabilities. Sustainability, 11(1), 218.
Zhao, Q., Tsai, P. H., & Wang, J. L. (2019). Improving financial service innovation strategies for enhancing china’s banking industry competitive advantage during the fintech revolution: A Hybrid MCDM model. Sustainability, 11(5), 1419
Alamsyah, Y. (2008). Home Made Frozen Food. Gramedia Pustaka Utama.
Anderson, N., Potočnik, K., & Zhou, J. (2014). Innovation and creativityin organizations: A state- of-the-science review, prospective commentary, and guiding framework. Journal of management, 40(5), 1297-1333.
Andriani, N. (2012). Model Hubungan Modal Sosial, Kompetensi Pemasaran (Marketing Intelligence dan Marketing Innovation) dalam Mempengaruhi Kinerja Pemasaran. Jurnal Aplikasi Manajemen , 50-59
Akmaludin, A., Cahyadi, C., & Suhardoyo, S. (2021). Pelatihan pembuatan design digital marketing bagi UMKM untuk meningkatkan wawasan dan pendapatan masyarakat Desa Cikarageman, Setu, Bekasi. Jurnal Pengabdian Pada Masyarakat, 6(2), 372-380.
Alguezaui, S., & Filieri, R. (2010). Investigating the role of social capital in innovation: sparse versus dense network. Journal of knowledge management.
Amarakoon, U., Weerawardena, J., & Verreynne, M. L. (2018). Learning capabilities, human resource management innovation and competitive advantage. The International Journal of Human Resource Management, 29(10), 1736-1766.
Anderson, N., Potočnik, K., & Zhou, J. (2014). Innovation and creativity in organizations: A state-of-the-science review, prospective commentary, and guiding framework. Journal of management, 40(5), 1297-1333.
Anning-Dorson, T. (2018). Innovation and competitive advantage creation: The role of organizational leadership in service firms from emerging markets. International Marketing Review.
Barney, J. B. (2001). Resource-based theories of competitive advantage: A ten-year retrospective on the resource-based view. Journal of management, 27(6), 643-650.
Blyler, M.; Coff, R.W. Dynamic Capabilities, Social Capital, and Rent Appropriation: Ties that Split Pies. Strategy. Manag. J. 2003, 24, 677–686. [CrossRef].
Chatzoglou, P., & Chatzoudes, D. (2017). The role of innovation in building competitive advantages: an empirical investigation. European Journal of Innovation Management.
Chen, K. H., Wang, C. H., Huang, S. Z., & Shen, G. C. (2016). Service innovation and new product performance: The influence of market-linking capabilities and market turbulence. International Journal of Production Economics, 172, 54-64.
Chuang, M. Y., Chen, C. J., & Lin, M. J. J. (2016). The impact of social capital on competitive advantage: The mediating effects of collective learning and absorptive capacity. Management Decision.
Coff, R. W. (1997). Human assets and management dilemmas: Coping with hazards on the road to resource-based theory. Academy of management review, 22(2), 374-402.
Cooke, P., & Wills, D. (1999). Small firms, social capital, and the enhancement of business performance through innovation programs. Small business economics, 13(3), 219-234.
Crescenzi, R., Gagliardi, L., & Percoco, M. (2013). Social capital and the innovative performance of Italian provinces. Environment and planning A, 45(4), 908-929.
Duryadi, 2022: Buku Ajar Metode Peneitian Ilmiah, Metode Penelitian Emperis Model Path Analysis dan Analisis Menggunakan SmartPL, Penerbit Yayasan Prima Agus Teknik, Semarang
Eidizadeh, R., Salehzadeh, R., & Chitsaz Esfahani, A. (2017). Analysing the role of business intelligence, knowledge sharing and organisational innovation on gaining competitive advantage. Journal of Workplace Learning, 29(4), 250-267.
Eklinder-Frick, J., Eriksson, L. T., & Hallén, L. (2014). Multidimensional social capital as a boost or a bar to innovativeness. Industrial marketing management, 43(3), 460-472.
Ekosistem Industri Halal, (2020), Departemen Ekonomi dan Keuangan Syariah, Bank Indonesia,
ISBN 978-602-60042-5-3. 1
Elfring, T.; Hulsink, W. Networks in entrepreneurship: The case of high-technology firms. Small Bus. Econ. 2003, 21, 409–422. [CrossRef] 41.
Faccin, K., Genari, D., & Macke, J. (2017). Interorganisational social capital and innovation: a multiple case study in wine producers networks in Serra Gaúcha. RAI Revista de Administração e Inovação, 14(1), 52-66.
Ferdinand, A. 2005. Modal Sosial Dan Keunggulan Bersaing: Wajah Sosial Strategi Pemasaran. Semarang: Badan Penerbit Universitas Diponegoro
Fornell, C., & Larcker, D. F. (1981). Structural equation models with unobservable variables and measurement error: Algebra and statistics.
Handoyo, A. S. (2015). The effect of marketing innovation, market orientation, and social capital on competitive advantage and marketing performance: A study in MSMEs of embroidery Central Java Province. Journal of Economics, Business, & Accountancy Ventura, 18(3), 351-366.
Herrera, M. E. B. (2015). Creating competitive advantage by institutionalizing corporate social innovation. Journal of business research, 68(7), 1468-1474.
Hill, C.W. L., Jones, G.R. and Schilling, M.A. (2015), Strategic Management Theory, 11th edition, Cengage Learning, Canada.
Indonesian Ministry of National Development Planning, The Indonesian Sharia Economic Masterplan (MEKSI) 2019-2024
Jiang, T.Y.; Zhang, Y.Q.; Wang, J.J. A research on the relationship between corporate social capital and competitive advantages: Based on knowledge. Stud. Sci. Sci. 2010, 28, 1212– 1221.
Jiménez‐Jimenez, D., Sanz Valle, R., & Hernandez‐Espallardo, M. (2008). Fostering innovation:
the role of market orientation and organizational learning. European Journal of innovation
management, 11(3), 389-412.
Kim, N., & Shim, C. (2018). Social capital, knowledge sharing and innovation of small-and
medium-sized enterprises in a tourism cluster. International journal of contemporary
hospitality management, 30(6), 2417-2437.
Kumar Ranjit. (2011). RESEARCH METHODOLOGY a step-by-step guide for beginners, Third
Edition, Sage.
Landry, R., Amara, N., & Lamari, M. (2002). Does social capital determine innovation? To what extent? Technological forecasting and social change, 69(7), 681-701.
Lee, W. C., & Law, S. H. (2016). The roles of formal and informal institutions on innovations activity. Jurnal Ekonomi Malaysia, 50(2), 167-179.
Liu, C. H. S., & Fang, Y. P. (2016). Night markets: entrepreneurship and achieving competitive advantage. International Journal of Contemporary Hospitality Management, 28(11), 2374- 2398.
Nafei, W. A. (2016). Organizational agility: The key to organizational success. International Journal of Business and Management, 11(5), 296-309.
Nahapiet, J.and Ghoshal, K. (1998). Social Capital, Intellectual Capital, and the Organizational Advantage. Acad. Manag. Rev. 1998, 23, 242–266. [CrossRef]
Naidoo, V. (2010). Firm survival through a crisis: The influence of market orientation, marketing innovation and business strategy. Industrial marketing management, 39(8), 1311-1320.
Oladimeji, M. S., Amida, O. A., & Essien, E. A. (2019). Business Innovation and Competitive Advantage in Nigerian Manufacturing Sector. EMAJ: Emerging Markets Journal, 9(2), 37- 43.
Parzefall, M. R., & Kuppelwieser, V. G. (2012). Understanding the antecedents, the outcomes and the mediating role of social capital: An employee perspective. Human Relations, 65(4), 447-472.
Prabhu, P. (2019). The Effect of Innovation On Competitive Advantage in IT Companies: An Empirical Investigation, A Journal of Composition Theory, 12 (9), 1013-1025.
Rosli, M. M., & Sidek, S. (2013). The Impact of innovation on the performance of small and medium manufacturing enterprises: Evidence from Malaysia. Journal of Innovation Management in Small & Medium Enterprises, 2013, 1.
Sadalia, I., Irawati, N., & Mass, L. T. M. An Analysis of Competitive Advantage Based on Intellectual Capital, Social Capital And Strategic Entrepreneurship Among Student Entrepreneurs.
Sanchez-Famoso, V., Maseda, A. and Iturralde, T. (2014), “The role of internal social capital in organizational innovation: an empirical study of family firms”, European Management Journal, Vol. 32 No. 6, pp. 950-962.
Sekaran Uma & Bougie Roger. (2016). RESEARCH METHODS FOR BUSINESS, A Skill-Building
Approach, Seventh Edition, Wiley.
Shane, S., & Venkataraman, S. (2000). The promise of entrepreneurship as a field of research. Academy of management review, 25(1), 217-226.
Soulard, J., Knollenberg, W., Boley, B. B., Perdue, R. R., & McGehee, N. G. (2018). Social capital and destination strategic planning. Tourism Management, 69, 189-200.
Steinerowska-Streb, I., & Głód, G. (2022). Innovation of small and medium enterprises in times of Covid-19. Zeszyty Naukowe. Organizacja i Zarządzanie/Politechnika Śląska.
Sulistyo, H., & Ayuni, S. (2020). Competitive advantages of SMEs: The roles of innovation capability, entrepreneurial orientation, and social capital. Contaduría administración, 65(1).
Tjokropandojo, D. S., Aqmarini, A., & Fiisabiilillah, D. F. (2019). Modal sosial dalam menumbuhkan dan mendifusikan inovasi pertanian hortikultura sebagai basis pengembangan ekonomi lokal studi kasus: Kabupaten bandung dan bandung barat. TATALOKA, 21(1), 115-128.
Udriyah, U., Tham, J., & Azam, S. (2019). The effects of market orientation and innovation on competitive advantage and business performance of textile SMEs. Management Science Letters, 9(9), 1419-1428.
Yeşil, S., & Doğan, I. F. (2019). Exploring the relationship between social capital, innovation capability, and innovation. Innovation, 21(4), 506-532.
Yi-Ching, T. (2006). Effect of Social Capital and Absorptive Capability on Innovation in Internet
Marketing. International Journal of Management, 23(1), 157–166. Retrieved
fromhttp://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=20302803&site=e
host-live
Zach, F. J., & Hill, T. L. (2017). Network, knowledge and relationship impacts on innovation in tourism destinations. Tourism Management, 62, 196-207.
Zhao, Z., Meng, F., He, Y., & Gu, Z. (2019). The influence of corporate social responsibility on competitive advantage with multiple mediations from social capital and dynamic capabilities. Sustainability, 11(1), 218.
Zhao, Q., Tsai, P. H., & Wang, J. L. (2019). Improving financial service innovation strategies for enhancing china’s banking industry competitive advantage during the fintech revolution: A Hybrid MCDM model. Sustainability, 11(5), 1419
Published
2023-09-09
How to Cite
Khairawati, S., Nur Wening, Tulus Haryon0, Wijiharta, W., & Irton, I. (2023). The Mediating Effect of Innovation in the Relationship Between Social Capital and Halal Culinary Business’s Competitive Advantage . Asian Journal of Management, Entrepreneurship and Social Science, 3(04), 378-399. Retrieved from http://www.ajmesc.com/index.php/ajmesc/article/view/459
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