As evidenced for many decades, small and medium enterprises (SMEs) have been the major and fundamental contributors to employment generation, poverty alleviation, value added creation and economic development around the globe. Due to the growing significance of internationalization, engaging in export drive has grown up among SMEs for seeking natural growth. Literature on export has shown that the effectiveness and efficiency of distribution channel become a critical issue for export performance. Whilst acknowledging that the characteristic of distribution channels is generally difficult to change once established findings of previous studies strengthen the indications that firm performance is also governed by affiliation among channel members on managing coordination, avoiding conflict, achieving sales and profit, exchanging information, trusting and holding commitment as well as how the applications of non formal channels, position of channel members; multiple distribution channels’ establishments; importers linkage establishments; and decentralization. The importance of innovation including innovation in distribution channels as the driver of performance is inconclusive. Additionally, such a study is extremely limited in small and medium enterprises (SMEs). Therefore, this study examines the impact of distribution channel innovation on the activities upon firm performance. Based on the existing literature gap, a special attention was given to the mediating role of distribution channel performance in the relationship between distribution channel innovation and firm performance of SMEs. Using a total of 120 samples collected from export-oriented agriculture-based SMEs in DIY province and the surrounding areas of the Central Java, Indonesia; a hierarchical regression analysis was used to estimate the distribution channel innovation-firm performance model. The clearer findings were found how the innovations lead to firm performance. It was indicated innovation in assortment, information sharing and transportation coordination led to greater firm performance. The result of the study also shows that distribution performance mediated the relationship between innovations in assortment, information sharing and transportation coordination, and firm performance. [...]
Table of Contents
Chapter 1 Introduction
1.1. Study backdrop
1.2. Problem statement
1.3. Research questions
1.4. Objectives of the study
1.5. Scope of study
1.6. Contribution & significance of the study
1.7. Organization of the study
Chapter 2 Small & Medium Entreprises in Indonesia
2.1. Summary
2.2. A brief review of Indonesian economic development
2.3. Definition of small and medium enterprises scale in Indonesia
2.4. Development of SMEs in Indonesia
2.5. Evident roles and problems of small and medium enterprises scales (SMEs) in Indonesia
2.6. How to adopt capital access
2.7. A loan proposal
2.8. How to maintain active loan
Chapter 3 Innovation, Distribution Channel, & Firm Performance
3.1. Summary
3.2. Globalization
3.3. The concept of innovations
3.4. The types of innovations
3.5. Distribution channels
3.5.1.The origin of distribution channels
3.5.2. Exchange through intermediaries
3.5.3. Centralized exchange & creating utility
3.5.4. The role & importance of distribution channel
3.5.5. Integration in distribution channel
3.6. Distribution channel institutions
3.7. Distribution channel performance
3.8. Economic firm performance
Chapter 4 Theoretical Framework
4.1. Summary
4.2. Innovation & firm performance
4.3. Product distribution channel & firm performance
4.4. Competitive environment hostility & firm performance
4.5. Distribution channel innovation & distribution channel performance, and hypotheses
4.5.1. Innovation in assortment
4.5.2. Innovation in order processing handling
4.5.3. Innovation in information sharing
4.5.4. Innovation in product and distribution scheduling
4.5.5. Innovation in inventory
4.5.6. Innovation in transportation
4.5.7. Innovation in packaging
4.5.8. Innovation in warehousing & finished good handling
4.5.9. Innovation in acquisition
4.5.10. Distribution effectiveness & firm performance
4.5.11. Distribution efficiency & firm performance
4.5.12. Control variables-Firm size
4.5.13. Control variables-Age of company
4.5.14. Control variables-Competitive environment hostility
4.5.15. Control variables-Industry sector
4.6. Theory
4.6.1. Resources base view
4.6.2. Innovation theory
4.6.3. Transaction cost
4.6.4. Depot theory
Chapter 5 Research Methodology
5.1. Summary
5.2. Data collection & sample
5.3. Quantitative survey
5.4. Survey instrument
5.5. Language and format
5.6. Descriptive variable
5.7. Independent, Dependent, and Mediating Variables
5.8. 5.8.1. Measures of independent variables
5.8.2. Measures of control variables
5.8.3. Measures of mediator-distribution performance
5.8.4. Measures of dependent variable
5.9. Pre testing and Administration of the Actual Survey
5.10. Data Analysis
5.11. Reliability
5.12. Validity
5.13. Assessing the Normality of Data
5.14. Parametric tests
5.15. Conceptual frame work figure
Chapter 6 Empirical Findings and Analysis
6.1. Summary
6.2. Descriptive analysis
6.2.1. Profiles of the respondents
6.2.2. Correlation
6.3. Regression
6.3.1. Multicollinearity
6.3.2. Simple Regression
6.3.3. Multiple Regression
6.3.4. Hierarchical Regression-Distribution effectiveness mediating between innovation in distribution channel and firm performance
6.3.5. Hierarchical Regression-Distribution efficiency mediating between innovation in distribution channel and firm performance
6.4. Plotted coefficient of effectiveness
6.5. Plotted coefficient of efficiency
6.6. Hypotheses testing
Chapter 7 Discussion
7.1. Summary
7.2. Discussion
7.2.1. Innovation in distribution channels & distribution performance in terms of effectiveness of export oriented SMEs manufacturing agricultural based industry in Indonesia.
7.2.2. Innovation in distribution channels & distribution performance in terms of efficiency of export oriented SMEs manufacturing agricultural based industry in Indonesia.
7.2.3. Distribution performance in terms of effectiveness & efficiency as mediators between the relationship of distribution channel innovations & economic firm performance
Chapter 8 Concluding remark, Suggestions for future studies, Implication of the study & Recommendations
8.1. Concluding remark
8.2. Suggestions for future research works
8.3. Managerial implications
8.4. External factors’ implications
8.5. Recommendations
Research Objectives and Themes
This study aims to examine the impact of distribution channel innovation on the performance of export-oriented Small and Medium Enterprises (SMEs) in Indonesia. The research focuses on identifying how specific innovation activities, such as assortment, information sharing, and transportation coordination, influence firm performance, with a particular focus on the mediating role of distribution channel effectiveness and efficiency.
- The impact of distribution channel innovations on firm performance.
- The mediating role of distribution effectiveness and efficiency.
- Empirical analysis of export-oriented agriculture-based SMEs in Indonesia.
- The influence of external factors, such as the competitive environment, on firm performance.
- Strategies for leveraging distribution innovation to gain competitive advantage.
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3.5.4. The role and importance of distribution channel
The main aim of the distribution channel is to overpass the gap between the point of production and the point of consumption. It is the consumer’s need and demand which set up the whole flow process of the goods to the consumers. The flow of goods is to carry out the demand of the customers for attaining goods at the right time and place with the rational price. Therefore, efficient and speed transportation is a key factor: raw materials should be transported to factories; finished goods should be dispatched to wherever they are needed within easy reach of consumers. However, in terms of the gap that be closed by distribution channel, usually, the emerging gaps as following.
3.5.4.1. The geographical gap
Mediators can enhance the efficiency of exchange even when the location between the producers and consumers under the same community. The compensation are greater when large distances mediate between them. Therefore, when the pot maker and the natural basket maker are separated hundreds or even thousands of miles apart place utility takes a new aspect in this case. One or the other must have initiative to bridge the gap between seller (producer) and consumers.
Summary of Chapters
Chapter 1: Provides an introduction to the study, including the background of SMEs, the problem statement, research questions, and objectives.
Chapter 2: Details the landscape of Small and Medium Enterprises in Indonesia, including their definition, economic contribution, and growth challenges.
Chapter 3: Explores the conceptual foundations of innovation, distribution channels, and firm performance within the literature.
Chapter 4: Outlines the theoretical framework, establishing the relationship between innovation, distribution channel performance, and firm success.
Chapter 5: Explains the research methodology, detailing the data collection, survey design, and analytical tools used.
Chapter 6: Presents the empirical findings and analysis of the survey data, including descriptive statistics and regression results.
Chapter 7: Discusses the findings, interpreting the results in relation to the study's objectives and existing theories.
Chapter 8: Offers concluding remarks, suggestions for future research, and managerial implications for stakeholders and policymakers.
Key Words
Innovation, distribution channel, SMEs, Indonesia, firm performance, export-oriented, agricultural-based industry, effectiveness, efficiency, mediating role, competitive environment, resource-based view, transaction cost, depot theory, logistics.
Frequently Asked Questions
What is the primary focus of this research?
The study investigates how innovation in distribution channel activities affects the firm performance of export-oriented Small and Medium Enterprises (SMEs) in Indonesia, specifically within the agricultural-based manufacturing sector.
What are the core thematic areas?
The core themes include innovation (assortment, information sharing, etc.), distribution channel performance (effectiveness and efficiency), and their collective impact on firm performance.
What is the main research question?
The central question concerns how distribution channel innovations drive firm performance and whether distribution effectiveness and efficiency mediate this relationship.
What research method is employed?
The study utilizes a quantitative research method, involving a field survey of 120 export-oriented SMEs, followed by hierarchical and multiple regression analysis of the collected data.
What is treated in the main body?
The main body covers the Indonesian SME landscape, theoretical foundations of innovation and distribution, a conceptual framework, research methodology, empirical data analysis, and a discussion of the results.
Which keywords characterize this work?
Key terms include Innovation, distribution channel, SMEs, Indonesia, firm performance, effectiveness, efficiency, and resource-based view.
How does this study contribute to the existing theory?
It fills a literature gap by examining the mediating roles of distribution effectiveness and efficiency, supporting theories like the resource-based view, transaction cost theory, and depot theory in an emerging market context.
What are the practical implications for managers?
The study suggests that SMEs should prioritize specific distribution innovations—such as assortment and information sharing—to enhance performance and that cooperation among channel members is essential for competitive success.
- Arbeit zitieren
- Ferri Kuswantoro (Autor:in), 2012, Enhancing firm performance via distribution channel innovation: The case of small and medium enterprises, München, GRIN Verlag, https://www.hausarbeiten.de/document/203241
