Analysis of Process Innovation for Small and Medium Enterprise
Keywords:
Process Innovation, Small and Medium Enterprise, Factor AnalysisAbstract
Innovation has a profound effect on global and business changes, such as its impact on GDP and local development. This research aims to analyze the components of process innovation in small and medium-sized businesses. It contains the theory of innovation theory. and entrepreneurial value creation theory. The target populations were 400 sample size of small and medium-sized business entrepreneurs in the food sector in the central and metropolitan areas. The results of the IOC analysis were consistent between 0.60 - 1.00. The percentage analysis revealed that the top two numbers of employees were between 41-60 and 61-200 employees with 161 employees, equivalent to 40.3%. As for the results of the composition analysis, it was found that the conformity index was good and harmonious. (Chi-square=155.56, df=5, P-value=0.000, RMSEA=0.057), also has a tolerance of 0.733 and a VIF of 1.365. Finally, when analyzing the reliability of the latent variable (Pc) and mean of the extracted variance of the latent variable (Pv) of the process innovation, it was found that the Pc value was 0.860 and the Pv value was 0.560.
Knowledge from research to improve product pricing techniques used for new product prices What's more, new product design processes are being improved. There must be an understanding of consumer behavior that changes with modern situations and fast changing behaviors. The organization must manage the business by seeking new knowledge. Surveys and research to obtain information for decision making. Moreover, using technology to communicate between customers and operators Entrepreneurs must consider survival and self-improvement in order to survive. Including the sustainability and stability of the organization. In addition, organizations need to innovate or create new products to reduce unnecessary things in order to gain competitive advantages in other business.
Recommendations for researching small and medium enterprises should improve production processes to meet international standards. including the development of new marketing channels through social media Develop new marketing strategies, proactively through various media, and develop modern packaging suitable for consumers of each age.
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