Can Internal, Cultural and Personal Factors Create A Culture of Innovation in SME in The Province of North Sulawesi? (Learning From COVID-19)

Abstract

Many researches prove that SMEs (Small Medium Enterprises or SMEs) are the
pillars of an economy. SMEs absorb a lot of labor and have a significant contribution
to the economic growth of a country and region. SMEs also have a very large number
and are spread in every existing business sector, so SMEs receive serious attention
from both academics, researchers and the government. This study has a specific
purpose, namely to analyze and test the influence of perceived difficulties, responses
to difficuties, open-mindedness culture, creativity as well as adaptive ability),
Individualism, power distance, uncertainty avoidance and masculinity / femininity),
learning Capability (LC), Intellectual capital, Knowledge management, social
network) on innovation culture, which is an aspect of originality or novelty in this
study. This study used a sample of SMEs in North Sulawesi Province and used
multiple regression analysis techniques. The results of the analysis show that
perceived difficulties (X1), responses to difficulties (X2), open-mindedness culture
(X3), creativity (X4) and adaptive ability (X5) have a significant effect (below 5%)
on Innovation culture. The results of the analysis show that Learning Capability
(LC) (X6), Intellectual capital (X7), Knowledge management (X8), social network
(X9) have a significant effect (below 5%) on Innovation culture. The analysis results
show that Individualism (X10), uncertainty avoidance (X12) and masculinity /
femininity (X13) have a significant effect (below 5%) on the culture of innovation.
However, the power distance variable (X11) does not significantly affect the culture
of innovation. The results of the analysis show that the influence of perceived
difficulties (X1), responses to difficulties (X2), open-mindedness culture (X3),
creativity (X4) and adaptive ability (X5) has a significant effect (below 5%) on
innovation culture, remains significant even though it has been controlled for aspects
of the owner's age, ethnicity and business age. The results of testing the effect of
internal factors (Learning Capability (LC) (X6), Intellectual capital (X7),
Knowledge management (X8), social network (X9) on innovation culture (Y), show
different results specifically on the Learning Capability (LC) variable (X6), where
when controlled for aspects of ethnicity and business age, this variable becomes
insignificant on innovation culture. For the results of testing the effect of cultural
cultural factors (Individualism (X10), power distance (X11), uncertainty avoidance
(X12) and masculinity / femininity (X13) on innovation culture (Y), with variable
control of owner age, ethnicity and business age, no impact on innovation culture.