Innovation Impact on Business Performance in Indonesia: Build Governance and Sustainability for the Next Normal

Abstract

Uncertain end of Pandemic Covid19 is a big challenge for business sustainability. This study aims to explore existing innovations of business and its performances. It is important for business governance in the next normal era. Regarding Oslo Manual (2015), the innovations variables consist of products, operations, management, and marketing innovations. The performance variables consist of sales increase, cost efficiency, competitiveness, and better customer services. It is measured by Pearson’s Correlation with secondary data from BPS, collected from 6 million companies in 2019 survey.
The result shows that marketing innovation has strong positive correlation with business performance, compared to innovation of product, operations and management. All the innovations are strongly correlated with competitiveness, better customer service and sales increase, but no correlation with cost efficiency. Assuming the situation of movement limitation during Covid19 pandemic as next normal era, the need for marketing innovation and product innovation can be continued, because they will potentially provide a higher performance on sales, competitiveness and better service.

Keywords: Innovation; Performance; Next Normal; Business Governance; Sustainability