INNOVATION ADOPTION BARRIERS IN INDONESIAN MANUFACTURING SMALL AND MEDIUM ENTERPRISES
Keywords:
Innovation Adoption, Manufacturing SMEs, Barriers to Innovation, Technology Transfer, IndonesiaAbstract
Background: Innovation adoption remains critical for manufacturing SME competitiveness, yet many Indonesian enterprises struggle to implement innovations despite recognizing their importance. Aims: This study identifies and analyzes primary barriers preventing Indonesian manufacturing SMEs from successfully adopting innovations. Research Method: Qualitative approach involving in-depth interviews with 32 manufacturing SME owners and managers across West Java representing diverse subsectors. Thematic analysis identified recurring barrier patterns. Results and Conclusion: Analysis reveals five major barrier categories: financial resource constraints (78%), technical knowledge gaps (65%), organizational risk aversion (58%), infrastructure limitations (52%), and regulatory complexity (43%). Barriers interact creating compound effects. Contribution: Research provides empirical evidence on innovation barriers in Indonesian manufacturing SME contexts, offering practical recommendations for targeted interventions.
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Copyright (c) 2024 Herry Achmad Buchory, Uce Karna Suganda, Ijang Faisal (Author)
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
