MODEL DEVELOPMENT OF ENTREPRENEURSHIP EFFECT TO INNOVATION AND MARKET ORIENTATION INTERVENTION STUDY CASE : BANDUNG SOFTWARE HOUSE

• Main Author: (NIM: 23409050), ANDZARRAHIM
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/21087
• Institution: Institut Teknologi Bandung

Software house is a segment of small industries that has been growing fast in Indonesia since several years ago. Fast growth of software house has caused many independent and government institutes to create opportunities that can be used by Indonesian software house (especially Bandung). But, the truth is there are many software houses still have problems such as money deficiency, lack of idea, and government help for creating innovative product. Ironically, solutions of these problems already had been provided by institutes that were mentioned before. Therefore, problems that interfering development of innovation actually comes from internal software house itself. Both lack of responsiveness and can’t take a risk is a symptoms that caused problems to these software houses. Root cause of the problems can be explained by the difference of entrepreneurship quality of each software house. Praag & Versloot (2007), Grants et al. (2006), and Grinstein (2007) shows that entrepreneurship haves positive effect to the development of innovation in company. Moreover, entrepreneurship can also have some effect to innovation through market orientation. Therefore, this research will investigate the effect of entrepreneurship to innovation and effect of intervention that caused by market orientation in Bandung software house. <br /> <br /> Method of data processing in this research is Partial Least Square (PLS) and sample in this research is 31 software houses. Respondent in this research is a representative from each software house which haves fulfilled terms to be included as sample. Questionnaire items/indicators in this research were created by combining indicators from previous research with actual condition and there were 64 questionnaire items which were used in this research. Results of this research are proofing that entrepreneurship really haves a positive effect to development of innovation and market orientation. On contrary, market orientation haves negative effect to innovation. Model in this research is expected to be guideline for Bandung software house especially when being used as consideration for developing entrepreneurship quality and implementing market orientation culture which have negative effect to development of innovation in software house.