Innovation Barriers and the implementation of Open Innovation: Implications on The Performance of Small and Medium Enterprises in Indonesia

Jumi Apriza

Innovation Barriers, Open Innovation, Emerging Economy, Innovation Performance, Small and Medium Enterprises, Indonesia.

this study aims to determine the effect of barriers felt by SMEs during the innovation process, such as barriers related to markets and institutions, financial barriers, employee behavior and organization barriers, as well as barriers on knowledge and cooperation on open innovation in breadth and depth, as well as knowing the effect of open innovation on innovation performance. SMEs in Indonesia that have never been studied before. The data used in this study is secondary data, namely data obtained from the results of the 2014 Indonesian Innovation Survey. The data analysis used in this study is Structural Equation Modeling (SEM) quantitative method with results showing that of the four groups of innovation barriers, only barriers related to employee behavior and organization, as well as knowledge and cooperation have a positive and significant relationship to open innovation in depth. Furthermore, there is a positive and significant relationship between open innovation and the innovation performance of SMEs.

https://doi.org/10.31871/IJNTR.7.6.28