Collaborative Networks as a Source of Innovation and Sustainable Competitiveness for Small and Medium Food Processing Enterprises in Indonesia

Abstract

Collaborative Networks give an opportunity to Small and Medium Enterprises to conduct the learning process, transfer knowledge and technology, and increase organizational capacity as a pre-requisite for sustainable innovation development. The aim of this study is to discover the relationships between Collaborative Networks and Innovation, between Innovation and Competitiveness, and between Collaborative Networks and Competitiveness. This study used the Structural Equation Modelling with Partial Least Square as the tool for analysis. Forty respondents were interviewed. The respondents were food-processing Small and Medium Enterprises which had innovations and were located in Bogor, Sukabumi, and Bandung District.The results of the study showed that Collaborative Networks influence innovation but do not have significant effect on sustainable competitiveness, whereas the innovations done by Small and Medium Food Processing Enterprises in West Java will increase sustainable competitiveness.