Innovation capability as a mediation in the relationship of social capital and entrepreneurial leadership behavior on the performance of culinary and hospitality sectors’ SMEs in Pekanbaru, Indonesia
Economic Annals-ХХI: Volume 193, Issue (9-10), Pages: 92-98
Citation information:
Purwati, A. A., Budiyanto, & Suhermin (2021). Innovation capability as a mediation in the relationship of social capital and entrepreneurial leadership behavior on the performance of culinary and hospitality sectors’ SMEs in Pekanbaru, Indonesia. Economic Annals-XXI, 193(9-10), 92-98. doi: https://doi.org/10.21003/ea.V193-11
Astri Ayu Purwati
PhD Student (Economics),
Doctoral Program of Management,
Sekolah Tinggi Ilmu Ekonomi Indonesia;
Lecturer,
Management Study Program,
Institute of Business and Technology Pelita
Jl. Kayu Jati Raya No.11A, RW.3, Rawamangun, Kec. Pulo Gadung, Kota Jakarta Timur, Daerah Khusus Ibukota Jakarta, 13220, Indonesia
astri.ayu@lecturer.pelita.ac.id
ORCID ID: https://orcid.org/0000-0002-1165-3387
Budiyanto
PhD (Economics),
Professor,
Supervisor in Writing a Dissertation,
Sekolah Tinggi Ilmu Ekonomi Indonesia
Jl. Kayu Jati Raya No.11A, RW.3, Rawamangun, Kec. Pulo Gadung, Kota Jakarta Timur, Daerah Khusus Ibukota Jakarta 13220, Indonesia
budiyanto@stiesia.ac.id
ORCID ID: https://orcid.org/0000-0001-7007-9066
Suhermin
PhD (Economics),
Professor,
Sekolah Tinggi Ilmu Ekonomi Indonesia
Jl. Kayu Jati Raya No.11A, RW.3, Rawamangun, Kec. Pulo Gadung, Kota Jakarta Timur, Daerah Khusus Ibukota Jakarta, 13220, Indonesia
suhermin@stiesia.ac.id
ORCID ID: https://orcid.org/0000-0002-6251-5451
Innovation capability as a mediation in the relationship of social capital and entrepreneurial leadership behavior on the performance of culinary and hospitality sectors’ SMEs in Pekanbaru, Indonesia
Abstract. The main objective of the research is to evaluate SME performance issues in the Culinary and Hospitality sectors in Pekanbaru via utilizing a number of company internal environmental parameters to develop the dynamic procedure for improving the efficacy. The purpose of this study is to investigate the relationship between social capital and entrepreneurship with respect to the mediating role of organizational innovation capabilities. The present study is applied in terms of purpose and descriptive-survey in terms of data collection. The statistical population of this study includes faculty members that the study population in this study is 2116 people. The method of cluster and random sampling is simple. The sample size according to Morgan table and Cochran’s formula with an error of 0.05 is equal to 325 people. Structural equation modeling technique and PLS Smart software have been used to investigate the causal relationships between variables in a coherent manner. The findings showed that there was not direct link between social capital and culinary and hospitality SMEs’ business performance in Pekanbaru. Problems related to strong social capital, such as over-information, problems due to recklessness, and myopia, along with investing a lot of time and money to maintain relationships, can affect the development of entrepreneurial orientation. Based on the research findings in this regard (social capital and entrepreneurial orientation), the structural dimension of social capital (relational and cognitive) has a negative relationship and other dimensions have a positive relationship with entrepreneurial orientation. In this regard (social capital and entrepreneurial orientation) organizational innovation capabilities play a mediating role.
Keywords: Innovation Capability; Social Capital; COVID-19 Pandemic; Entrepreneurial Leadership Behavior; Culinary; Hospitality
JEL Classifications: E01; Q55; O30
Acknowledgements and Funding: The authors received no direct funding for this research.
Contribution: The authors contributed equally to this work.
Data Availability Statement: The dataset is available from the authors upon request.
DOI: https://doi.org/10.21003/ea.V193-11
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Received 26.07.2021
Received in revised form 29.08.2021
Accepted 9.09.2021
Available online 19.10.2021