Reconciliation of high-tech and high-touch for SME innovation performance in Indonesia

Article Russian OPEN
RIDUAN R. (2017)
  • Publisher: Редакция журнала Russian Journal of Agricultural and Socio-Economic Sciences
  • Journal: Russian Journal of Agricultural and Socio-Economic Sciences
  • Subject: ENTREPRENEURIAL ORIENTATION,ORGANIZATIONAL CHARACTERISTICS,ENVIRONMENTAL CHARACTERISTICS,INNOVATION PERFORMANCE,SMES,HIGH-TECH,HIGH-TOUCH,INDONESIA

The euphoria of technology in the Internet of Things (IOT) era is not only more advantageous but also provides double-edged sword effect for high-tech SMEs. In general, high-tech SMEs have a dependence on technology and neglect high touch aspect capacity to build relationships with human resources. Ironically, it is otherwise allegedly in an action as it is assumed to cause innovation imbalance where the product of SME innovation is high-tech but low-touch. Given its importance, this study aims to examine the importance of reconciliation between high-tech and high-touch as entrepreneurial orientation, organizational characteristics and environmental characteristics and their impacts on the innovation performance. The sample of this study consisted of 102 leaders of high-tech SMEs in East Java Province. Method of Data Analysis used in this study was Generalized Structured Component Analysis (CGCA). The results of this study indicate that the reconciliation between high-tech and high-touch aspects of SMEs in term of entrepreneurial orientation, organizational characteristics and environmental characteristics is an important catalyst for the creation of innovation performance. Several recommendations were developed in response to these findings.
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