The Role of Marketing Capabilities and Integrative Capabilities for Business Model Innovation in Small Business Indonesian Culinary Sector

Abstract

This empirical study is about developing business model innovations based on the antecedents of marketing capabilities and integrative capabilities in the culinary sector in Indonesia. Specifically, the respondents used are 136 small-scale businesses from various regions in Indonesia. Data collection was carried out in the range of September 2020 through questionnaires distributed through digital channels. This research is quantitative research by using SMART-PLS as a statistical tool. The research orientation is to see the effect of marketing capability and integrative capability on business model innovation and firm performance, also the effect of business model innovation on performance. The results of this study found that marketing capabilities affect business model innovation and performances. Another finding is integrative capabilities affects business model innovation but does not affect firm performance, and furthermore the construct of the business model innovation itself affects performance. This finding is important for the culinary sector which is the leading sector in the creative economy in Indonesia. The central role of business model innovation is also the orientation of forming a strategic posture for small-scale business actors who are still entrepreneurial in order to make their business to be strategic.

Keywords: Business model innovation, Marketing Capabilities, Integrative Capabilities, Firm Performance