Enhancing MSMEs Innovation Capacity Based on ISO 56002:2019
Micro, Small, and Medium Enterprises (MSMEs) play a vital role in Indonesia's economy, contributing 60.5% to the Gross Domestic Product (GDP), 96.9% to employment, and 15.7% to total national exports in 2024. These facts underscore the importance of MSME development as a priority in the Asta Cita of the President of the Republic of Indonesia, evidenced by Rp3.9 trillion in partnerships involving 579 MSMEs and the debt relief for one million MSMEs nationwide by 2025. However, alongside financial constraints, researchers contend that MSMEs face challenges in competitiveness due to a lack of innovation and creativity. To address this, ISO 56002:2019 can serve as a standard for assessing organizational innovation capacity to enhance competitiveness. Yet, research in this area remains limited, highlighting the need for studies focused on enhancing innovation capacity for MSMEs based on ISO 56002:2019. This qualitative study employs semi-structured interviews with XYZ Perfume Company in Yogyakarta, an MSME actor. The assessment is based on eight factors from Valladares et al. (2014) and its development in Silva (2021), aligned with ISO 56002:2019: (1) Transformative Leadership; (2) Strategic Intention to Innovate; (3) Weight Management for Information; (4) Customer and Market Knowledge; (5) Strategic Technology Management; (6) Organizational Structure; (7) Project Management; and (8) Innovation Performance. The results indicate that XYZ Perfume Company's innovation capacity is rated as good, with strengths in Transformative Leadership and Weight Management for Innovation.
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