Name : Aldira Jasmine Rizky Arifin

Students ID : 12010119190284
Class : Y.IUP
Research Methods for Business

1. Research Gap
2. Research problem and Research Question.
3. The purposes of the research
4. Hypothesis and research model
5. Population, sample, variables, and data.
6. Tool of Analysis in hypothesis testing
7. Result and Finding
8. Limitations of the research.

1. Research Gap
The originality of this research can be seen in the use of contingency theory
which narrows the gap between the industrial organization (I/O) paradigm and
the resource-based view (RBV) regarding competitive advantage and
performance. In addition, this research tries to reduce the gap in empirical
research by offering a new research model and new research establishment at
the level of strategic business units (SBU) in manufacturing companies in East
Java.

2. Research problem and research question

This research aims to present the importance of sustainable innovation strategy
applied in manufacturing companies in Indonesia which affects the company’s
financial performance through several mediating variables. Variables used in
the model include Innovation Strategy, Intellectual Capital, Management
Accounting Information System, and Internal Process Performance.

The originality of this research can be seen in the use of contingency theory
which narrows the gap between the industrial organization (I/O) paradigm and
the resource-based view (RBV) regarding competitive advantage and
performance. Specifically, this research introduces innovation strategy, human
capital, management accounting information system, and internal business
process performance as the contingency factors that affect financial
performance. Second, empirically, this research tries to reduce the gap in
empirical research by offering a new research model and new research
establishment at the level of strategic business units (SBU) in manufacturing
companies in Indonesia. This research is expected to be useful for policy
decision making, especially for managers who want to improve SBU’s
financial performance
3. The purposes of the research
Analyze the importance of sustainable innovation strategy applied in
manufacturing companies in Indonesia which affects the company’s financial
performance through several mediating variables.

4. Hypothesis and research model

H1. Innovation strategy has a significant effect on financial performance
H2. Human capital mediates the relationship between innovation strategy and
financial performance
H3. Human capital and internal process performance mediate the relationship
between innovation strategy and financial performance
H4. Management accounting information system mediates the relationship
between innovation strategy and financial performance
H5. Internal process performance mediates the relationship between
innovation strategy and financial performance
H6. Management accounting information system and internal process
performance mediate the relationship between innovation strategy and
financial performance

5. Population, sample, variables, and data

● The data were collected through questionnaires delivered to the
respondents (samples) who had been selected by certain procedures.
● The population in this research was medium and large manufacturing
company business units in Indonesia. The population of this research
was 389 business units.
● The research sample was at least 80 respondents or 21 percent.
● Variables used in the model include Innovation Strategy, Intellectual
Capital, Management Accounting Information System, and Internal
Process Performance.
6. Tool of Analysis in hypothesis testing
Data analysis in this study was carried out using Structural Equation Modeling
(SEM) based on variance, using Partial Least Square (PLS) tools
 7. Result and Finding
The empirical results show that the first hypothesis which states innovation
strategy affects financial performance theoretically supported is predicted. The
second hypothesis which states that human capital mediates the relationship
between innovation strategy and financial performance is not empirically
supported. Theoretically, innovation strategy requires competent human
capital to carry out the strategy effectively. This relationship is empirically
supported by this research. However, the effect of human capital on financial
performance is not supported. Human capital cannot directly affect financial
performance. Competent human capital makes better business process

8. Limitations of the research.

First, on the implementation of a sustainable innovation strategy, this research
does not consider the product life cycle stage. In this case, the researchers do
not consider the position of the companies’ product cycle. The researchers do
not identify whether the company’s product life cycle is in the introduction
stage, growth stage, maturity stage or decline stage. The researchers assume
that the companies are at the same product lifecycle stage. It is because the
product life cycle is getting shorter with the increasingly intense competition.
Secondly, data on manufacturing companies taken from the Ministry of
Industry and Trade in Indonesia have been grouped in medium and large
manufacturing companies. In this case, the researchers do not further identify
the grouping of medium and large manufacturing companies.

Reference:
Hutahayan, B. (2020). The mediating role of human capital and management
accounting information system in the relationship between innovation strategy and internal
process performance and the impact on corporate financial performance. Benchmarking: An
International Journal, 27(4), 1289-1318. doi: 10.1108/bij-02-2018-0034