The Role of Absorptive Capacity and Organizational Innovation in Culinary Business

Zoel Hutabarat, Willy Arafah, Farida Jasfar


The growth of micro and small businesses in the culinary sector in Jakarta and Tangerang is quite significant. Changes in the way to market the products and payment systems that force an entrepreneur to switch to e-commerce and digital payment systems have made many entrepreneurs not ready or able to adapt quickly. For this reason, this study wants to examine the influence of organizational culture and absorptive capacity on organizational performance mediated by organizational innovation in micro and small business actors in the culinary field in the Jakarta and Tangerang areas. This study indicates that the mediating role of organizational innovation in the relationship of organizational culture and absorptive capacity on organizational performance is not supported by micro and small business actors in the culinary field in the Jakarta and Tangerang areas. However, the direct effect of organizational learning on organizational innovation and organizational performance is proven to be supported in this study. Meanwhile, the influence of absorptive capacity on organizational performance is not supported, either directly or indirectly. The ability to adapt by identifying and assimilating new information to produce innovations that can improve company performance is still very low. However, the entrepreneur's awareness of the importance of speed in adapting to changes in companies and markets is good enough.



Keywords: organizational culture, absorptive capacity, organizational innovation, organizational performance, strategic flexibility, micro and small enterprises.



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