IDEAS home Printed from https://ideas.repec.org/a/baq/jetart/v4y2024i13p95-109.html
   My bibliography  Save this article

Identifying the impact of absorptive capacity, new product development, and marketing capabilities on digital marketing adoption and new product performance in Indonesian SMEs

Author

Listed:
  • Edy Yulianto

    (University of Brawijaya)

  • Supriono Supriono

    (University of Brawijaya)

  • Aniesa Samira Bafadal

    (University of Brawijaya)

Abstract

This study investigates the impact of absorptive capacity on enhancing the performance of SMEs through new product development, marketing capabilities, and the adoption of digital marketing. The research problem addresses how absorptive capacity influences these factors to improve new product performance. A quantitative approach was employed, collecting data from 212 SMEs in three cities in East Java Province, Indonesia. Data analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results indicate that critical factors influencing new product performance include the ability of SMEs to absorb external knowledge (indicator AC3, loading factor 0.852), new initiatives in product development (indicator NPD4, loading factor 0.886), and strong marketing strategies (indicator MC3, loading factor 0.878). Further analysis reveals that absorptive capacity positively and significantly affects new product development (ß=0.763; p-value 0.05). However, digital marketing adoption positively and significantly impacts new product performance (ß=0.628; p-value

Suggested Citation

  • Edy Yulianto & Supriono Supriono & Aniesa Samira Bafadal, 2024. "Identifying the impact of absorptive capacity, new product development, and marketing capabilities on digital marketing adoption and new product performance in Indonesian SMEs," Eastern-European Journal of Enterprise Technologies, PC TECHNOLOGY CENTER, vol. 4(13 (130)), pages 95-109, August.
    • Handle: RePEc:baq:jetart:v:4:y:2024:i:13:p:95-109
    DOI: 10.15587/1729-4061.2024.310101
    as

    Download full text from publisher

    File URL: https://journals.uran.ua/eejet/article/download/310101/301771
    Download Restriction: no
    File URL: https://libkey.io/10.15587/1729-4061.2024.310101?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Flatten, Tessa C. & Engelen, Andreas & Zahra, Shaker A. & Brettel, Malte, 2011. "A measure of absorptive capacity: Scale development and validation," European Management Journal, Elsevier, vol. 29(2), pages 98-116, April.
    2. Kaplan, Andreas M. & Haenlein, Michael, 2010. "Users of the world, unite! The challenges and opportunities of Social Media," Business Horizons, Elsevier, vol. 53(1), pages 59-68, January.
    3. Tirta Nugraha Mursitama & Noerlina & Lili Yulyadi Arnakim, 2023. "The role of absorptive capacity, technological capability, and firm performance in Indonesia’s high-tech industry," International Journal of Applied Economics, Finance and Accounting, Online Academic Press, vol. 15(2), pages 126-134.
    4. Sun, Wenbin & Price, Joseph & Ding, Yuan, 2019. "The longitudinal effects of internationalization on firm performance: The moderating role of marketing capability," Journal of Business Research, Elsevier, vol. 95(C), pages 326-337.
    5. Cui, Anna Shaojie & Griffith, David A. & Cavusgil, S. Tamer & Dabic, Marina, 2006. "The influence of market and cultural environmental factors on technology transfer between foreign MNCs and local subsidiaries: A Croatian illustration," Journal of World Business, Elsevier, vol. 41(2), pages 100-111, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bashir, Naheed & Papamichail, K.Nadia & Malik, Khaleel, 2017. "Use of Social Media Applications for Supporting New Product Development Processes in Multinational Corporations," Technological Forecasting and Social Change, Elsevier, vol. 120(C), pages 176-183.
    2. Christian Arnold & Kai-Ingo Voigt, 2019. "Determinants of Industrial Internet of Things Adoption in German Manufacturing Companies," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 16(06), pages 1-21, October.
    3. Caroline Ardelet & Bérangère Brial, 2011. "Influence des recommandations d'internautes: le role de la presence sociale et de l'expertise," Post-Print hal-01258971, HAL.
    4. Fan, Rui & Xu, Ke & Zhao, Jichang, 2018. "An agent-based model for emotion contagion and competition in online social media," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 495(C), pages 245-259.
    5. Aslam, Muhammad Shakeel & Qammar, Ahmad & Ali, Imran & Yaqub, Muhammad Zafar & Ahmed, Farhan & Mohapatra, Amiya Kumar, 2024. "Fostering innovation speed and quality in ICT firms: The role of knowledge governance mechanisms, absorptive capacity and environmental dynamism," Technological Forecasting and Social Change, Elsevier, vol. 205(C).
    6. T.H.A.S.H. Niranjala, 2020. "Factors Influencing Towards the Adoption of Social Media Marketing in SMEs (References to Small and Medium scale Enterprises in Anuradhapura, Sri Lanka)," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 4(6), pages 540-548, June.
    7. Nour El Houda Ben Amor & Mohamed Nabil Mzoughi, 2023. "Do Millennials’ Motives for Using Snapchat Influence the Effectiveness of Snap Ads?," SAGE Open, , vol. 13(3), pages 21582440231, July.
    8. Majumdar, Adrija & Bose, Indranil, 2019. "Do tweets create value? A multi-period analysis of Twitter use and content of tweets for manufacturing firms," International Journal of Production Economics, Elsevier, vol. 216(C), pages 1-11.
    9. Schmidt, Christoph G. & Wuttke, David A. & Heese, H. Sebastian & Wagner, Stephan M., 2023. "Antecedents of public reactions to supply chain glitches," International Journal of Production Economics, Elsevier, vol. 259(C).
    10. Marta Götz & Małgorzata Bartosik-Purgat & Barbara Jankowska, 2018. "International Aspects and Challenges of Digital Transformation," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 1, pages 87-102.
    11. Ladhari, Riadh & Massa, Elodie & Skandrani, Hamida, 2020. "YouTube vloggers’ popularity and influence: The roles of homophily, emotional attachment, and expertise," Journal of Retailing and Consumer Services, Elsevier, vol. 54(C).
    12. Mohammad Awad AlAfnan, 2024. "Social Media Personalities in Asia: Demographics, Platform Preferences, and Behavior Based Analysis," Studies in Media and Communication, Redfame publishing, vol. 12(3), pages 349-363, September.
    13. Emre Yildiz, H. & Murtic, Adis & Klofsten, Magnus & Zander, Udo & Richtnér, Anders, 2021. "Individual and contextual determinants of innovation performance: A micro-foundations perspective," Technovation, Elsevier, vol. 99(C).
    14. Mahan, Joseph E. & Seo, Won Jae & Jordan, Jeremy S. & Funk, Daniel, 2015. "Exploring the impact of social networking sites on running involvement, running behavior, and social life satisfaction," Sport Management Review, Elsevier, vol. 18(2), pages 182-192.
    15. Grygiel, Jennifer & Brown, Nina, 2019. "Are social media companies motivated to be good corporate citizens? Examination of the connection between corporate social responsibility and social media safety," Telecommunications Policy, Elsevier, vol. 43(5), pages 445-460.
    16. Molina, Arturo & Fernández, Alejandra C. & Gómez, Mar & Aranda, Evangelina, 2017. "Differences in the city branding of European capitals based on online vs. offline sources of information," Tourism Management, Elsevier, vol. 58(C), pages 28-39.
    17. Christian Bartelheimer & Philipp Heiden & Hedda Lüttenberg & Daniel Beverungen, 2022. "Systematizing the lexicon of platforms in information systems: a data-driven study," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(1), pages 375-396, March.
    18. Carmela Milano, 2015. "Democratization or else vulgarization of cultural capital? The role of social networks in theater’s audience behavior," Working Papers CEB 15-004, ULB -- Universite Libre de Bruxelles.
    19. Yildiz, H. Emre & Murtic, Adis & Zander, Udo, 2024. "Re-conceptualizing absorptive capacity: The importance of teams as a meso-level context," Technological Forecasting and Social Change, Elsevier, vol. 199(C).
    20. Som Sekhar Bhattacharyya & Sumi Jha, 2020. "Explicating micro foundations of corporate social responsibility: a moderated-mediation study of customer, investor and employee roles," International Journal of Ethics and Systems, Emerald Group Publishing Limited, vol. 36(4), pages 619-640, September.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:baq:jetart:v:4:y:2024:i:13:p:95-109. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Iryna Prudius (email available below). General contact details of provider: https://journals.uran.ua/eejet/issue/archive .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.