IDEAS home Printed from https://ideas.repec.org/a/bas/econst/y2025i4p59-79.html
   My bibliography  Save this article

Entrepreneurial Creativity and Business Innovation Performance: The Role of Competitivenes Mechanism Protection and Competitive Intensity

Author

Listed:
  • Roymon Panjaitan
  • Naili Farida
  • Farida Indriani

Abstract

The increasingly complex demand is a problem for a business because high creativity is not guaranteed for entrepreneurs to excel at innovation. The purpose of this study was to explore the important role of entrepreneurial creativity in improving business innovation performance through the mechanism of protecting competitiveness and moderating the intensity of the MSME business sector in Central Java, Indonesia. This study sampled 213 entrepreneurs operating in the micro, small, and medium enterprise sectors. The quantitative data from these respondents were analyzed using the SEM-PLS path analysis technique. The findings of the five hypotheses show that the role of entrepreneurial creativity, directly and indirectly mediated by the mechanism of protecting competitiveness, can potentially increase the performance of business innovation. However, on the contrary, the high intensity of competition has implications for weakening business innovation performance. The study's implications make a practical contribution to MSMEs. In the spirit of creativity, entrepreneurs must continue to consider external factors, from changing consumer preferences government policies, and competitive dynamics that conquer their competitive advantages.

Suggested Citation

  • Roymon Panjaitan & Naili Farida & Farida Indriani, 2025. "Entrepreneurial Creativity and Business Innovation Performance: The Role of Competitivenes Mechanism Protection and Competitive Intensity," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 59-79.
    • Handle: RePEc:bas:econst:y:2025:i:4:p:59-79
    as

    Download full text from publisher

    File URL: https://archive.econ-studies.iki.bas.bg/2025/2025_04/2025_04_04.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Colombelli, Alessandra & Grilli, Luca & Minola, Tommaso & Mrkajic, Boris, 2020. "To what extent do young innovative companies take advantage of policy support to enact innovation appropriation mechanisms?," Research Policy, Elsevier, vol. 49(10).
    2. Israel Kirzner, 1999. "Creativity and/or Alertness: A Reconsideration of the Schumpeterian Entrepreneur," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 11(1), pages 5-17, January.
    3. Zhenyang Zhang & Xinyuan Wang & Dongphil Chun, 2021. "The U-Shaped Relationship between Intellectual Capital and Technological Innovation: A Perspective on Enterprise Ownership and the Moderating Effect of CSR," Sustainability, MDPI, vol. 13(22), pages 1-20, November.
    4. Minh Hieu Thi Nguyen & Stuart C. Carr & Darrin Hodgetts & Emmanuelle Fauchart, 2021. "Why do some social enterprises flourish in Vietnam? A comparison of human and ecosystem partnerships," Sustainability Accounting, Management and Policy Journal, Emerald Group Publishing Limited, vol. 12(6), pages 1312-1347, March.
    5. Zobel, Ann-Kristin & Lokshin, Boris & Hagedoorn, John, 2017. "Formal and informal appropriation mechanisms: The role of openness and innovativeness," Technovation, Elsevier, vol. 59(C), pages 44-54.
    6. Sam Liu, Chih-Hsing & Jack Liu, Hsiou-Hsiang & Ng, Yen-Ling, 2021. "Investigation of entrepreneurial orientation development with airline employees: Moderating roles of a cooperation-competition mechanism," Journal of Air Transport Management, Elsevier, vol. 94(C).
    7. Dollinger, Marc J. & Li, Xueling & Mooney, Christine H., 2010. "Extending the Resource-based View to the Mega-event: Entrepreneurial Rents and Innovation," Management and Organization Review, Cambridge University Press, vol. 6(2), pages 195-218, July.
    8. Li, Guangpei & Wang, Xiaoyu & Su, Shibin & Su, Yuan, 2019. "How green technological innovation ability influences enterprise competitiveness," Technology in Society, Elsevier, vol. 59(C).
    9. Baron, Robert A. & Tang, Jintong, 2011. "The role of entrepreneurs in firm-level innovation: Joint effects of positive affect, creativity, and environmental dynamism," Journal of Business Venturing, Elsevier, vol. 26(1), pages 49-60, January.
    10. Stefan, Ioana & Bengtsson, Lars, 2017. "Unravelling appropriability mechanisms and openness depth effects on firm performance across stages in the innovation process," Technological Forecasting and Social Change, Elsevier, vol. 120(C), pages 252-260.
    11. ., 2017. "A General Theory of Economic Development," Chapters, in: A General Theory of Economic Development, chapter 7, pages 115-150, Edward Elgar Publishing.
    12. Mohammad Reza Jalilvand & Leila Nasrolahi Vosta & Rashid Khalilakbar & Javad Khazaei Pool & Reihaneh Alsadat Tabaeeian, 2019. "The Effects of Internal Marketing and Entrepreneurial Orientation on Innovation in Family Businesses," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(3), pages 1064-1079, September.
    13. Minh Hieu Thi Nguyen & Stuart C. Carr & Darrin Hodgetts & Emmanuelle Fauchart, 2021. "Why do some social enterprises flourish in Vietnam? A comparison of human and ecosystem partnerships," Sustainability Accounting, Management and Policy Journal, Emerald Group Publishing Limited, vol. 12(6), pages 1312-1347, March.
    14. Secundo, Giustina & Del Vecchio, Pasquale & Simeone, Luca & Schiuma, Giovanni, 2020. "Creativity and stakeholders' engagement in open innovation: Design for knowledge translation in technology-intensive enterprises," Journal of Business Research, Elsevier, vol. 119(C), pages 272-282.
    15. Paul Shum & Grier Lin, 2010. "A resource-based view on entrepreneurship and innovation," International Journal of Entrepreneurship and Innovation Management, Inderscience Enterprises Ltd, vol. 11(3), pages 264-281.
    16. Ko, Stephen & Butler, John E., 2007. "Creativity: A key link to entrepreneurial behavior," Business Horizons, Elsevier, vol. 50(5), pages 365-372.
    17. Grimaldi, Michele & Greco, Marco & Cricelli, Livio, 2021. "A framework of intellectual property protection strategies and open innovation," Journal of Business Research, Elsevier, vol. 123(C), pages 156-164.
    18. Ann Njoki Kingiri & Xiaolan Fu, 2020. "Understanding the diffusion and adoption of digital finance innovation in emerging economies: M-Pesa money mobile transfer service in Kenya," Innovation and Development, Taylor & Francis Journals, vol. 10(1), pages 67-87, January.
    19. Marianna Sigala & Olivia Kyriakidou, 2015. "Creativity and innovation in the service sector," The Service Industries Journal, Taylor & Francis Journals, vol. 35(6), pages 297-302, April.
    20. Wenchang Fang & Tzong-Hann Wu & Tai-Wei Chang & Cheng-Ze Hung, 2021. "What Could Entrepreneurial Vision Do for Sustainable Development? Explore the Cross-Level Impact of Organizational Members’ Green Shared Vision on Green Creativity," Sustainability, MDPI, vol. 13(10), pages 1-15, May.
    21. Kirzner, Israel M, 1999. "Creativity and/or Alertness: A Reconsideration of the Schumpeterian Entrepreneur," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 11(1-2), pages 5-17.
    22. Yihao Cao & Ehsan Elahi & Zainab Khalid & Ping Li & Pengsheng Sun, 2023. "How Do Intellectual Property Rights Affect Green Technological Innovation? Empirical Evidence from China," Sustainability, MDPI, vol. 15(10), pages 1-17, May.
    23. Sara Amoroso & Albert N. Link, 2021. "Intellectual property protection mechanisms and the characteristics of founding teams," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(9), pages 7329-7350, September.
    24. ., 2017. "A general theory of infrastructure and economic development," Chapters, in: Time, Space and Capital, chapter 8, pages 158-173, Edward Elgar Publishing.
    25. Lee, Cheng-Wen, 2007. "Strategic alliances influence on small and medium firm performance," Journal of Business Research, Elsevier, vol. 60(7), pages 731-741, July.
    26. Marc J. Dollinger & Xueling Li & Christine H. Mooney, 2010. "Extending the Resource-based View to the Mega-event: Entrepreneurial Rents and Innovation," Management and Organization Review, The International Association for Chinese Management Research, vol. 6(2), pages 195-218, July.
    27. Branka Ahlin & Mateja Drnovšek & Robert Hisrich, 2014. "Entrepreneurs’ creativity and firm innovation: the moderating role of entrepreneurial self-efficacy," Small Business Economics, Springer, vol. 43(1), pages 101-117, 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. Nerine Mary George & Vinit Parida & Tom Lahti & Joakim Wincent, 2016. "A systematic literature review of entrepreneurial opportunity recognition: insights on influencing factors," International Entrepreneurship and Management Journal, Springer, vol. 12(2), pages 309-350, June.
    2. Dorian Boumedjaoud & Karim Messeghem, 2019. "L'influence de la créativité sur la vigilance entrepreneuriale des repreneurs de PME," Post-Print hal-02570575, HAL.
    3. Srivastava, Smita & Sahaym, Arvin & Allison, Thomas H., 2021. "Alert and Awake: Role of alertness and attention on rate of new product introductions," Journal of Business Venturing, Elsevier, vol. 36(4).
    4. Tang, Jintong & Kacmar, K. Michele (Micki) & Busenitz, Lowell, 2012. "Entrepreneurial alertness in the pursuit of new opportunities," Journal of Business Venturing, Elsevier, vol. 27(1), pages 77-94.
    5. Fellnhofer, Katharina, 2023. "Positivity and higher alertness levels facilitate discovery: Longitudinal sentiment analysis of emotions on Twitter," Technovation, Elsevier, vol. 122(C).
    6. Eijaz Ahmed Khan & Lynne Harris & Mohammed Quaddus, 2021. "The mediating role of personality traits on the entrepreneurial orientation–firm performance relationship: informal entrepreneurship context," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 11(1), pages 41-52, December.
    7. Ayerbe, Cécile & Boulos, Caroline & Castellaneta, Francesco, 2024. "Navigating protection mechanisms and innovation models: A literature-based configurational framework of intellectual property strategies," Technovation, Elsevier, vol. 137(C).
    8. Hurmelinna-Laukkanen, Pia & Yang, Jialei, 2022. "Distinguishing between appropriability and appropriation: A systematic review and a renewed conceptual framing," Research Policy, Elsevier, vol. 51(1).
    9. Ludvig Levasseur & Jintong Tang & Masoud Karami & Lowell Busenitz & K. Michele Kacmar, 2022. "Increasing alertness to new opportunities: the influence of positive affect and implications for innovation," Asia Pacific Journal of Management, Springer, vol. 39(1), pages 27-49, March.
    10. Adnane Maalaoui & Nada Rejeb & Meriam Razgallah & Mirko Perano & Alberto Dello Strologo, 2023. "Perceived health as human capital in entrepreneurial intention among people with disability," International Entrepreneurship and Management Journal, Springer, vol. 19(3), pages 1367-1394, September.
    11. Czeglédi, Pál, 2009. "A tulajdonjogi biztonság szerepe a technológia elterjedésében [The role of property-law security in the spread of technology]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(9), pages 790-813.
    12. Fabiola Baltar & Sonia de Coulon, 2014. "Dynamics Of The Entrepreneurial Process: The Innovative Entrepreneur And The Strategic Decisions," Review of Business and Finance Studies, The Institute for Business and Finance Research, vol. 5(1), pages 69-81.
    13. FARAYIBI, Adesoji, 2015. "Entrepreneurship as a Driver of Economic Growth: Evidence from Enterprise Development in Nigeria," MPRA Paper 74591, University Library of Munich, Germany.
    14. Raymond J. March & Adam G. Martin & Audrey Redford, 2016. "The substance of entrepreneurship and the entrepreneurship of substances," Journal of Entrepreneurship and Public Policy, Emerald Group Publishing Limited, vol. 5(2), pages 201-220, August.
    15. Jeffery S. McMullen & Dimo Dimov, 2013. "Time and the Entrepreneurial Journey: The Problems and Promise of Studying Entrepreneurship as a Process," Journal of Management Studies, Wiley Blackwell, vol. 50(8), pages 1481-1512, December.
    16. Eduardo Angeli, 2014. "O Projeto De Pesquisa Heterodoxo Da Mainline Economics," Anais do XLI Encontro Nacional de Economia [Proceedings of the 41st Brazilian Economics Meeting] 014, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    17. Baltar, Fabiola & de Coulon, Sonia, 2014. "Dynamics of the entrepreneurial process: the innovative entrepreneur and the strategic decisions," Nülan. Deposited Documents 1878, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    18. repec:jpe:journl:1909 is not listed on IDEAS
    19. Pál Czeglédi, 2017. "Productivity, institutions, and market beliefs: three entrepreneurial interpretations," Journal of Entrepreneurship and Public Policy, Emerald Group Publishing Limited, vol. 6(2), pages 164-180, August.
    20. Krystian M. Zawadzki & Marcin Potrykus, 2023. "Stock Markets’ Reactions to the Announcement of the Hosts. An Event Study in the Analysis of Large Sporting Events in the Years 1976–2032," Journal of Sports Economics, , vol. 24(6), pages 759-800, August.
    21. Eduardo Angeli, 2014. "A Importância da História do Pensamento Econômico e do pluralismo metodológico em economia a partir da perspectiva da Escola Austríaca [The importance of Economic Thought and methodological pluralism ," Nova Economia, Economics Department, Universidade Federal de Minas Gerais (Brazil), vol. 24(1), pages 33-50, January-A.

    More about this item

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

    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:bas:econst:y:2025:i:4:p:59-79. 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: Diana Dimitrova (email available below). General contact details of provider: https://edirc.repec.org/data/ikbasbg.html .

    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.