A study on the effects of innovation marketing process for Indonesian SMEs’ in food and beverage sector

Abstract

SMEs in the food and beverage sector should be a responsive business for reaching consumers more effectively, expanding the market, and reducing consumer transaction costs. Still, many SMEs’ in the food and beverage sector are hesitant to use social media due to lack of some aspects in their business platforms. The study aims to give an overview model of the innovation marketing process by emphasizing the characteristics of SMEs’, which is simultaneously associated with marketing mix. The proposed model combined the TOE model and characteristics with a marketing mix using SEM on 198 SMEs in the Indonesian food and beverage sector. The findings proved that each technological, environmental, organizational, and characteristics are positively related to each of the people and processes. The management team roles in innovative solutions and contingencies of a complex environment gave the highest positive effects to technology and environment. However, technology does not always facilitate the work process, the quality of result, and process consistency for more efficiency. There are highlight points, i.e. the clear visibility of employee appraisals process for bridging the gap of competencies; using perceived usefulness, perceived ease of use, and perceived trust for generating business ideas, and attracting new customers.