Dynamic Capabilities Elaboration For Indonesia Smes Culinary Performance In Indonesia

Abstract

Dynamic capability is an elaborative study considering that its elaboration will produce various capability constructs. This study will study the role of integrative capabilities, learning capabilities, networking capabilities, and marketing capabilities for the performance of SMEs. This study uses quantitative research using SmartPLS on 198 respondents of SMEs in the culinary sector in Indonesia. Culinary actors in Indonesia are 6.6 million and for sampling questionnaires were distributed to 500 culinary actors online in September 2020 in various cities using the purposive sampling method. This study resulted in the findings that networking capabilities and marketing capabilities positively affect performance, while integrative capabilities and learning capabilities do not affect performance. The capabilities selected in this research are limited to only four capabilities considering that this study must choose the most contextual capabilities for entrepreneurship development in Indonesia. Through these findings, culinary SMEs in Indonesia can focus on developing networking capabilities and marketing capabilities because they are proven to affect performance. While integrative capability and learning capability are thought to require a mediating variable, these two variables influence performance in other contexts