Effect of Company Resources and Capabilities to Product Innovation SMEs in East Java Batik

Abstract

This study aims to explain the influence of resources and capabilities of enterprises with product innovation. This study uses a quantitative approach with a sample of 92 micro-enterprises. Analysis of data using regression. The results showed that the company's resources a significant effect on product innovation, while capability is valuable, rare, and can not be duplicated nor significant effect on product innovation. Originality of this study to measure product innovation by combining resources and capabilities of micro enterprise in eastern Java batik.