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Social networks and innovation (handicraft industry in Bantul, Yogyakarta)

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  • Aloysius Gunadi, Brata

Abstract

This research found most of the handicraft producers have conducted various innovations during last five years. The newest innovations are managerial innovation, marketing innovation and product innovation. Meanwhile, product innovation and managerial innovation are the most important innovations in enhancing the business performance. Based on the actors, innovation in this case could be classified as producer driven innovation. The main information source of product innovation, process innovation, and service innovation is the producer’s experiences itself. The study found that the role of social networks in the process of innovation activities is rather limited. This finding is also supported by a fact that the strongest social network of the producers is only the relation with family and close friend in term of their closeness, trust, and willingness to share information. Regression analysis also indicates the aggregate of social network elements does not influence the number of innovations. Components of social network that still show positive impact on the innovation are only the closeness with business partners and with members of other association. The study also suggest that research on the role of social network or social capital on innovations is need to consider more appropriate indicators of social networks. At the empirical level, differences in location or industry may require different indicators of social networks.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 28032.

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Date of creation: Jan 2011
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Handle: RePEc:pra:mprapa:28032

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Keywords: social network; innovation; handicraft industry;

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  1. Wei-ping Wu, 2008. "Dimensions of Social Capital and Firm Competitiveness Improvement: The Mediating Role of Information Sharing," Journal of Management Studies, Wiley Blackwell, Wiley Blackwell, vol. 45(1), pages 122-146, 01.
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