Leverage of Pro-value in Exchange Network Power to Business Performance: A Service-dominant logic Perspective
Keywords: Product innovation, Pro-value in exchange network power, Market entry speed, Business performance, Service-dominant logic
Abstract
Purpose – This study aims to build a conceptual model of pro-value in exchange network power in bridging product innovation against business performance, which was previously inconsistent.
Methodology – The survey method involved 187 owners and managers of the sector MSMEs in Salatiga, Central Java, Indonesia. The AMOS structural equation modeling software is used to test the proposed hypothesis.
Findings – The result showed that pro-value in exchange network power and market entry speed connect product innovation to business performance. The first hypothesis confirmed that product innovation significantly influenced pro-value in exchange network power; the second hypothesis illustrated that pro-value in exchange network power significantly affected market entry speed; the third hypothesis indicated that pro-value in exchange network power had a significant impact on business performance; and the fourth hypothesis confirmed that market entry speed significantly influenced business performance. The fifth hypothesis, which proposed full mediation using exchange network power, was rejected. However, the sixth hypothesis suggested that serial mediation through pro-value in exchange network power and market entry speed was accepted.
Originality – Based on the service-dominant logic, pro-value in exchange network power and market entry speed were proposed as alternative way to increase the role of product innovation in business performance of the MSME sector of food and beverage industry.
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References
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