Enhancing firm performance via distribution channel innovation: The case of small and medium enterprises

Empirical Evidence The Grant Challenges for The Worldwide SMEs

Textbook , 2012 , 286 Pages

Business economics - Trade and Distribution

As evidenced for many decades, small and medium enterprises (SMEs) have been the major and fundamental contributors to employment generation, poverty alleviation, value added creation and economic development around the globe. Due to the growing significance of internationalization, engaging in export drive has grown up among SMEs for seeking natural growth. Literature on export has shown that the effectiveness and efficiency of distribution channel become a critical issue for export performance. Whilst acknowledging that the characteristic of distribution channels is generally difficult to change once established findings of previous studies strengthen the indications that firm performance is also governed by affiliation among channel members on managing coordination, avoiding conflict, achieving sales and profit, exchanging information, trusting and holding commitment as well as how the applications of non formal channels, position of channel members; multiple distribution channels’ establishments; importers linkage establishments; and decentralization. The importance of innovation including innovation in distribution channels as the driver of performance is inconclusive. Additionally, such a study is extremely limited in small and medium enterprises (SMEs). Therefore, this study examines the impact of distribution channel innovation on the activities upon firm performance. Based on the existing literature gap, a special attention was given to the mediating role of distribution channel performance in the relationship between distribution channel innovation and firm performance of SMEs. Using a total of 120 samples collected from export-oriented agriculture-based SMEs in DIY province and the surrounding areas of the Central Java, Indonesia; a hierarchical regression analysis was used to estimate the distribution channel innovation-firm performance model. The clearer findings were found how the innovations lead to firm performance. It was indicated innovation in assortment, information sharing and transportation coordination led to greater firm performance. The result of the study also shows that distribution performance mediated the relationship between innovations in assortment, information sharing and transportation coordination, and firm performance. [...]

Inhaltsverzeichnis (Table of Contents)

• Abstract
• Dedication
• Acknowledgement
• Chapter 1: Introduction
• 1.1 Background of the Study
• 1.2 Problem Statement
• 1.3 Research Objectives
• 1.4 Research Questions
• 1.5 Significance of the Study
• 1.6 Scope of the Study
• 1.7 Definition of Key Terms
• Chapter 2: Literature Review
• 2.1 Small and Medium Enterprises (SMEs)
• 2.2 Export Performance
• 2.3 Distribution Channel Performance
• 2.4 Distribution Channel Innovation
• 2.5 Firm Performance
• Chapter 3: Methodology
• 3.1 Research Design
• 3.2 Population and Sampling
• 3.3 Data Collection
• 3.4 Data Analysis
• Chapter 4: Results and Findings
• 4.1 Descriptive Statistics
• 4.2 Regression Analysis
• Chapter 5: Discussion
• 5.1 Theoretical Implications
• 5.2 Practical Implications
• 5.3 Limitations of the Study
• 5.4 Suggestions for Future Research

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This research study examines the impact of distribution channel innovation on the activities of firm performance, particularly in the context of small and medium enterprises (SMEs). The main goal is to determine the influence of distribution channel innovation on firm performance and investigate the mediating role of distribution channel performance in this relationship. The study is based on data collected from export-oriented agriculture-based SMEs in the DIY province and surrounding areas of Central Java, Indonesia.

• The role of distribution channel innovation in enhancing firm performance.
• The mediating effect of distribution channel performance between distribution channel innovation and firm performance.
• The specific types of distribution channel innovations (assortment, information sharing, transportation coordination) that contribute to firm performance.
• The implications of the findings for existing theories, including transaction cost theory, depot theory, individual perspectives on innovation, and the resource base view.
• Practical recommendations for stakeholders and policy-makers on how to promote innovation in distribution channels for SMEs.

Zusammenfassung der Kapitel (Chapter Summaries)

• Chapter 1: This chapter introduces the study's background, problem statement, research objectives, research questions, significance, scope, and key terms. It establishes the context for investigating the relationship between distribution channel innovation and firm performance in the context of SMEs.
• Chapter 2: This chapter provides a comprehensive review of existing literature related to SMEs, export performance, distribution channel performance, distribution channel innovation, and firm performance. It examines the key concepts and theories relevant to the study's research questions.
• Chapter 3: This chapter outlines the research methodology employed in the study, including the research design, population and sampling techniques, data collection methods, and data analysis approaches.
• Chapter 4: This chapter presents the results and findings of the study, based on the analysis of data collected from export-oriented agriculture-based SMEs. It includes descriptive statistics and regression analysis results.
• Chapter 5: This chapter discusses the theoretical and practical implications of the study's findings. It also addresses the limitations of the study and suggests avenues for future research in this area.

Schlüsselwörter (Keywords)

This study focuses on the impact of distribution channel innovation on firm performance within the context of small and medium enterprises (SMEs) in Indonesia. Key terms and concepts explored in the study include: innovation, distribution channel, SMEs, firm performance, export performance, distribution channel performance, transaction cost theory, depot theory, individual perspectives on innovation, and the resource base view.

• College: University Kuala Lumpur (Faculty of Economics and Administration, University of Malaya, 50603, Kuala Lumpur, Malaysia )
• Author: Ferri Kuswantoro (Author)
• Publication Year: 2012
• Pages: 286
• Catalog Number: V203241
• ISBN (eBook): 9783656296188
• ISBN (Book): 9783656298045
• Language: English
• Tags: enhancing, empirical, evidence, grant, challenges, worldwide, smes