CC BY
1
UDC 332; DOI 10.18551/rjoas.2023-12.03
THE INFLUENCE OF SOCIAL CAPITAL, EMPLOYEE MOTIVATION AND SUSTAINABLE INNOVATION ON IMPROVING MARKETING PERFORMANCE OF MSMES IN BALI
Ribek Pande Ketut*, Mirayani Luh Putri Mas, Verawati Yenny, Pradnyandari Ni Putu Chintya, Sekharendra Nyoman Agus Chandra
Faculty of Economics and Business, Mahasaraswati University, Bali, Indonesia *E-mail: pandeketutribek@unmas.ac.id
ABSTRACT
Human Resources are an important resource in improving company performance, both in manufacturing and services. In traditional food businesses, the existence of social capital needs to be strengthened to get potential customers. This research aims to increase social capital, employee motivation and product innovation in improving marketing performance. This research is a quantitative research method. The population of all traditional food entrepreneurs is 119 entrepreneurs. Sampling uses a census. The analysis technique uses multiple linear regression. The findings show that social capital has a positive and significant effect on marketing performance. Employee motivation has a positive and significant effect on marketing performance in traditional food businesses in Bali. Sustainable innovation has a positive and significant effect on marketing performance in traditional food businesses in Bali. The novelty in this study is the power of social capital, especially information using social media and knowing societal trends, are able to improve marketing performance so that it further increases sales and is able to improve employee welfare. The implication of this research is that it is hoped that it can help in making decisions and policies at the company level related to social capital, employee motivation and sustainable innovation, in improving marketing performance.
KEY WORDS
Social capital, motivation, innovation, product, marketing performance, MSMEs.
Business improvement really depends on the ability of leaders to implement strategies to improve marketing performance. This increase will be realized if it is supported by human resources who have competence as the driving force of the company. The success of a traditional food business is largely determined by the ability to optimize internal resources in the face of external factors, including facing and overcoming competition from substitute businesses, with changes in market demand. The ability to balance internal and external factors determines strategic steps to survive amidst increasingly fierce competition and changes in market demand. The ability to motivate employees in building a business thereby improves marketing performance. Motivation as a driving force and employee work enthusiasm can change employee behavior in carrying out work with stronger motivation in the hope that organizational commitment will be realized. Employee organizational commitment is good or bad depending on the extent of the factors driving employee motivation. Research findings by (Suherman, & Savitri, (2018) state that employee motivation has no effect on marketing performance. However, findings by (Prasasti, et al., 2016) state that employee work motivation has a positive and significant effect on marketing performance. Factors other than motivation is also the existence of product innovation that can improve marketing performance. Tawas (2014) explains that the superiority of new products is very important in the global market environment. This superiority cannot be separated from the development of the resulting innovative product, so that it will have an advantage in the market which will then win in competition. The indicators used in this innovation are product innovation, process innovation, business model innovation (Silva and Cirani, 2020). Sustainable innovation in a company is a basic need which in turn will lead to the creation of competitive advantage (Ribek et al., 2020). Sustainable innovation can
improve marketing performance with indicators of technical innovation, design changes, administrative innovation (Nasir, 2017)
Marketing performance is a concept for measuring the market performance that has been achieved by a product in a company, including traditional food businesses, but marketing is a problem faced by entrepreneurs (Sholekhah et al., 2020). Many small businesses are only able to produce food without being able to market their products. A number of study results state that social capital is the main source or driving component that causes a business to have a competitive advantage so that it continues to exist. The results of research findings conducted by Khoirrin and Kartika (2014), Sugiyanto et al (2017), Sholekhah et al (2020) show that social capital can improve marketing performance. The results of research findings conducted by Hartono and Soegianto (2013), Prasetyo and Harjanti (2013), Hartono at al (2013), Widjajanti et al (2017), Rahmawati et al (2018), Astuti et al (2019) stated that social capital does not directly affect marketing performance. Inconsistent research findings on social capital can be caused by the dimensions of social capital being positive and negative, depending on which dimension is studied. Theory the basis of social power (Franch et al., 1959; Raven, 2017, Ribek et al., 2021), consists of ten aspects, namely legitimate, reward, expert, referent, coercive, informational, behavioral consciousness, social consciousness, consciousness intentionality and cultural consciousness. This theory tends to be used to describe the power of social capital to work together to achieve goals.
LITERATURE REVIEW AND HYPOTHESES DEVELOPMENT
The strength of relationships within an organization can be seen from the number of members the organization has who have high quality and integrity so they are able to achieve their goals. Social power is defined as the potential to influence, the ability of actors or power figures to achieve goals using the resources they have. The strength of relationships and cooperation in organizations that allows certain people to influence other people, in acting to achieve goals (Franch et al., 1959; Raven, 2017, Ribek et al., 2021). The strength of social capital consists of: legitimate, reward, expert, referent, coercive, informational, behavioral consciousness, social consciousness, intentional consciousness and cultural consciousness. With high quality human resources, they will be able to produce high quality products so that the industry has a positive image and is able to dominate the market at large (Widodo). Employee motivation has a good influence on marketing performance, indicators of employee motivation according to Riduwan, (2012:66) are self-actualization, appreciation, social needs, security needs. , Employee Income (Employee Income). According to Notoatmodjo, 2015: 130 and Ansory 2018: 110 Motivation indicators include salary, adequate facilities, health insurance, security guarantees, need for respect, need for acceptance, friendship, incentives, praise, need for self-development. With this aspect, employee motivation must be maintained so that they can improve marketing. Apart from this, there needs to be continuous innovation (Bekmezci, 2015). Sustainable innovation can be used as a source for improving marketing performance. Several indicators used to assess sustainable innovation are creativity, technical sustainable innovation, design changes, distribution system changes, and payment administration systems. Marketing performance is a measure of achievement obtained from the overall marketing process activities of a company or organization. There are four indicators used to measure marketing performance (Ferdinand, 2002) Limakrisna et al (2017), Nuryakin (2018), Ribek, et al., (2023) in research, namely as follows: sales turnover, increase in sales, sales returns, regional coverage, consumer satisfaction.
Social capital is able to form an extraordinary contribution from a micro to a macro view. Social capital is the value of social networks and is determined by volunteerism, donations, environmental and charitable activities, infrastructure and facilities, and need to gain access (Tedong et al., 2016). Social capital combined in strategic management will make more improvements in strategic planning, which includes pre-planning and strategic planning procedures to ensure social welfare can be achieved in the organization (Mainardes
et al., 2014). Coleman (2018) stated that social capital will not run out if it is used but will increase and increase. The research results which state that social capital influences marketing performance are the results of research from Azhari (2017), Astuti et al (2019). However, the results of research findings conducted by Hartono and Soegianto (2013), Prasetyo and Harjanti (2013), Hartono at al (2013), Widjajanti (2017), Rahmawati et al (2018), Astuti et al (2019), which states that social capital does not directly influence marketing performance. This is due to the existence of organizational resources as a business success factor (Kozlenkova et al., 2013).
H1: Social capital has a positive and significant effect on marketing performance.
Motivation is the driving force and work enthusiasm of an employee which can change the employee's behavior so that they are willing to do the assigned work enthusiastically with stronger motivation in the hope that commitment to the organization will be realized. Research findings by (Suherman, & Savitri, (2018) state that employee motivation has no effect on marketing performance. However, findings by (Prasasti, et al., 2016) state that employee work motivation has a positive and significant effect on marketing performance.
H2: Employee motivation has a positive and significant effect on marketing performance.
Companies that carry out continuous innovation are seen as a source of competitive advantage Bahren et al (2019). Sustainable innovation can turn social and environmental challenges into opportunities so that companies can grow in a profitable way while providing added value to society and the environment (Bekmezci, 2015). Slavkovic and Babic (2013). Killa's (2014) research findings show that product innovation has a positive and significant effect on marketing performance in the craft industry in Yogyakarta, Solo and Bandung. The research findings from Utaminingsih (2016) state that innovation has a positive and significant effect on marketing performance. The research findings of Zameer et al (2020) stated that sustainable innovation in organizations does not have a strong effect on performance. The research findings of Ardyan et al (2016), Maslichan (2016) shows that sustainable innovation has no significant effect on marketing performance.
H3: Sustainable Innovation Has a Positive and Significant Influence on Marketing Performance.
METHODS OF RESEARCH
This research was conducted in the city of Denpasar, Bali. The independent variables used in this research consist of social capital, employee motivation, and sustainable innovation. Meanwhile, the dependent variable is marketing performance. The population in this study was all traditional food business owners in Denpasar City using the saturated sampling method. The data collection methods used: observation, documentary study, bibliography, questionnaires. The data analysis technique used to test the data in this study is multiple linear regression analysis.
RESULTS AND DISCUSSION
Validity Test based on the results of the study, it can be explained that all items of the questions have a value greater than 0.3, so that all items of the questions for all investigation variables correlate significantly with the total score, which explains that the points of the questionnaire are valid. Reliability Test based on the study results, it can be explained that the value of Cronbach's alpha is greater than 0.70 for all study variables, so that the reliability of the items of the study instrument can be concluded. Completion of validity testing completed using 1MB SPSS Statistics.
Reliability testing is actually a tool for measuring a questionnaire which is an indicator of a variable or construct (Ghozali, 2016:47. The reliability of the research instrument in this study was tested using the Cronbach's Alpha coefficient. A variable is said to be reliable if the Cronbach's Alpha value is > 0.60. Results Reliability tests are presented in Table 2.
Table 1 - Validity Test Results
No Variable Indicator Pearson Correlation Information
X1.1 0,825 Val d
X1.2 0,870 Val d
X1.3 0,884 Val d
X1.4 0,865 Val d
1 Social capital (X-i) X1.5 0,774 Val d
X1.6 0,826 Val d
X1.7 0,816 Val d
X1.8 0,726 Val d
X1.9 0,752 Val d
X1.10 0,807 Val d
X2.1 0,810 Val d
X2.2 0,789 Val d
X2.3 0,838 Val d
X2.4 0,811 Val d
2 Motivation (X2) X2.5 0,774 Val d
X2.6 0,826 Val d
X2.7 0,819 Val d
X2.8 0,725 Val d
.9 0,759 Val d
X3.1 0,806 Val d
X3.2 0,724 Val d
3 Sustainable innovation (X3) X3.3 0,812 Val d
X3.4 0,812 Val d
X3.5 0,856 Val d
Y.i 0,835 Val d
Y.2 0,897 Val d
4 Marketing performance (Y) Y.3 0,886 Val d
Y.4 0,842 Val d
Y.5 0,838 Val d
Source: Research Data, 2023.
Table 2 - Reliability Test Results
No Variable Cronbach's Alpha Information
1 Social capital (X1) 0,880 Reliable
2 Motivation (X2) 0,925 Reliable
3 Sustainable innovation (X3) 0,859 Reliable
4 Marketing performance (Y) 0,910 Reliable
Source: Research Data, 2023.
Multiple linear regression analysis aims to predict what the condition will be (up and down) of the dependent variable (criterium), if two or more independent variables as prediator factors are manipulated (increasing and decreasing their value). A summary of the results of the multiple linear regression test is shown in Table 3.
Table 3-Multiple Linear Regression Analysis Test Results
Coefficientsa
Model Unstandardized Coefficients Standardized Coefficients Sig.
B Std. Error Beta
1 (Constant) -1,194 1,101 -1,084 0,285
Social capital 0,486 0,131 0,373 3,718 0,001
Motivation 0,150 0,053 0,255 2,838 0,007
Sustainable innovation 0,425 0,116 0,381 3,653 0,001
e. Dependent Variable: Marketing performance R = 0,944
Adjust R Square = 0,883 F = 111,583
Sig F = 0,000_
Source: Processed Data, 2023.
Based on the results of the multiple linear regression analysis test in this study, it was found Y = a + P1X1 + P2X2 + P3X3 + e, so Y = -1.194 + 0.486X1 + 0.150X2 + 0.425X3 + e.
Based on the results of the multiple linear regression test, it was found that the beta value of X1 was 0.486 with a significance value of 0.001 < 0.05. This means that social capital has a positive and significant effect on marketing performance in traditional food businesses in Bali. In improving marketing performance, social capital is very necessary, especially information, both conventional and technological, using social media to promote products that are owned so that it can improve marketing performance in traditional food businesses in Bali. The beta value of X2 is 0.150 with a significance value of 0.007 <0.05, this means that employee motivation has a positive and significant effect on marketing performance. In improving marketing performance, motivation from superiors is very necessary so that employees are able to work optimally to achieve the targets that have been set. The beta value of X3 is 0.425 with a significance value of 0.001 < 0.05. This means that sustainable innovation has a positive and significant effect on marketing performance in traditional food businesses in Bali. Continuous innovation is very necessary so that the products owned are not monotonous, various variations and the latest systems are more effective and efficient resulting in increased marketing performance. Social capital is able to form an extraordinary contribution from a micro to a macro view. Social capital is the value of social networks and is determined by volunteerism, donations, environmental and charitable activities, infrastructure and facilities, and need to gain access (Tedong et al., 2016). Social capital combined in strategic management will make more improvements in strategic planning, which includes pre-planning and strategic planning procedures to ensure social welfare can be achieved in the organization (Mainardes et al., 2014). Coleman (2018) stated that social capital will not run out if it is used but will increase and increase. The research results which state that social capital influences marketing performance are the results of research from Azhari (2017), Astuti et al (2019). However, the results of research findings conducted by Hartono and Soegianto (2013), Prasetyo and Harjanti (2013), Hartono at al (2013), Widjajanti (2017), Rahmawati et al (2018), Astuti et al (2019), which states that social capital does not directly influence marketing performance. This is due to the existence of organizational resources as a business success factor (Kozlenkova et al., 2013). Motivation is the driving force and work enthusiasm of an employee which can change the employee's behavior so that they are willing to do the assigned work enthusiastically with stronger motivation in the hope that commitment to the organization will be realized. Research findings by (Suherman, & Savitri, (2018) state that employee motivation has no effect on marketing performance. However, findings by (Prasasti, et al., 2016) state that employee work motivation has a positive and significant effect on marketing performance. Companies that carry out continuous innovation are seen as a source of competitive advantage Bahren et al (2019). Sustainable innovation can turn social and environmental challenges into opportunities so that companies can grow in a profitable way while providing added value to society and the environment (Bekmezci, 2015). Slavkovic and Babic (2013). Killa's (2014) research findings show that product innovation has a positive and significant effect on marketing performance in the craft industry in Yogyakarta, Solo and Bandung. The research findings from Utaminingsih (2016) state that innovation has a positive and significant effect on marketing performance. The research findings of Zameer et al (2020) stated that sustainable innovation in organizations does not have a strong effect on performance. The research findings of Ardyan et al (2016), Maslichan (2016) shows that sustainable innovation has no significant effect on marketing performance.
CONCLUSION
The results of this research show that social capital has a positive and significant effect on marketing performance in traditional food businesses in Bali. This means that the better the social capital in the company, the better the marketing performance in traditional food businesses in Bali. Motivation has a positive and significant effect on marketing performance, this means that the better employee motivation, the greater the marketing performance in traditional food businesses in Bali. Sustainable innovation has a positive and significant effect on marketing performance in traditional food businesses in Bali. This means that the
better the innovation is carried out on an ongoing basic, the more marketing performance will increase. Research findings by using the power of social capital, especially information using social media and knowing societal trends, are able to improve marketing performance so that it further increases sales and is able to improve employee welfare. The implication is to increase employee performance in marketing products and improve community welfare. The suggestion is that employees are able to increase awareness in their behavior so that they provide better and more polite service. Reducing superiors provides higher incentives to motivate employees and better and more efficient technical improvements so as to improve marketing performance. For further researchers, it is recommended to add research samples in order to get more valid results.
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