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Research title and researcher
Research title : The Effect of Organizational Learning and Innovation on Business Performance of SMEs of Rattan Product Manufacturing in Cirebon Regency, West Java Province, Indonesia
Researcher : Indra Muis
Keywords : Innovation, Organizational Learning, Business Performance, Small Medium Enterprises
Abstract

This research is to find out the effect of organizational learning and innovation on business performance of Small-Medium Enterprises (SMEs) manufacturing rattan products in West Java Province, Indonesia. After understanding literatures on organizational learning, innovation, and business performance, the research then formulates a model of organizational learning, innovation and business performance and defines how those variables are associated. Hypotheses on organizational learning - business performance, innovation-business performance, and learning organization-innovation association are tested. Organizational learning is measured based on 4 (four) dimensions, namely: information acquisition, information distribution, information interpretation, and behavioral and cognitive changes. Innovation is measured based on 3 (three) dimensions, namely: product and service innovation, process innovation, and innovative culture. Business performance is measured based on financial and non-financial performance of the enterprises. Validity and reliability tests are conducted by using SPSS 21. Then, the association is tested through Structural Equation Modeling (SEM) from a database of 109 SMEs in rattan product manufacturing in Cirebon Regency, West Java Province. The results show that the presence of organizational learning and innovation is associated to business performance of SMEs as stated in the proposed model.

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