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Enhancing Export Performance Through Inimitable-Based Innovative Entrepreneurship: Evidence From Indonesian Furniture Export SMEs With Pareto Sales Network Asset As Mediators = Enhancing Export Performance Through Inimitable-Based Innovative Entrepreneurship: Evidence From Indonesian Furniture Export SMEs With Pareto Sales Network Asset As Mediators
The creative economy regards innovation as the primary source of competitive advantage in enhancing export competitiveness. However, an innovative edge does not always directly improve export performance. This study was motivated by two gaps. The first is a research gap, particularly contradictory evidence regarding the impact of innovation on export performance. The second is a phenomenon gap, reflected in the persistently low export competitiveness of furniture SMEs in Central Java, as evidenced by the decline in Indonesia’s furniture and handicraft exports from USD 3.47 billion in 2021 to USD 2.44 billion in 2023, accompanied by an approximately 84.6% decline in the average revenue of furniture businesses during 2022–2024. These indicate a persistent decline in the export performance and business revenue of the furniture industry. This study aims to examine the effect of Inimitable-Based Innovative Entrepreneurship on Export Performance via Supply Chain Management and Pareto Sales Network Assets, based on Entrepreneurship Theory of Innovation. The study employs a quantitative approach within a positivist paradigm, involving 132 respondents of SMEs furniture export in Central Java, and the data were analysed using Structural Equation Modelling Partial Least Squares (SEM-PLS) via SmartPLS 3. The research findings indicate that Inimitable-Based Innovative Entrepreneurship does not have a significant direct effect on Export Performance. However, IBIE has a significant indirect effect on Export Performance through the Pareto Sales Network Asset, which has the largest indirect effect with a magnitude of 0.164. Practically, the findings provide implications for the Central Java Provincial Department of Cooperatives and SMEs to promote the implementation of Inimitable-Based Innovative Entrepreneurship (IBIE) among export-oriented furniture SMEs, particularly by strengthening their sales networks and supply chain capabilities to improve export performance.
Keywords: Innovative Entrepreneur, Entrepreneurship Theory of Innovation, Furniture Exports, SMEs.
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