THE IMPACTS OF ADAPTIVE AND INNOVATION CAPABILITIES ON THE FINANCIAL PERFORMANCE OF SMALL AND MEDIUM-SIZED ENTERPRISES IN MEDAN
Yeni Absah (a*), R.Hamdani Harahap (b**)

a) Faculty of Economic and Business, Universitas Sumatera Utara
Jl.Porf.T.M. Hanafiah, SH, Kampus USU Medan 20155, Indonesia
*yeni.absah[at]usu.ac.id
b) Faculty of Social and Political Science, Universitas Sumatera Utara, Jl.Prof. A. Sofian No.1 Kampus USU Medan 20155
**r.hamdani[at]usu.ac.id

Abstract

Technological developments have caused Small and Medium Enterprises (SMEs) to have the ability to face increasingly fierce business competition. The industrial revolution 4.0 brings changes in the lifestyle of consumers so that SMEs must develop a number of core competencies to adapt to the changes that occur. The adaptive and innovation capabilities are believed to influence an enterprise’s financial performance. Provided with the population of SMEs of culinary in Medan, 100 of them were used as samples. The research result simultaneously and partially showed a positive and significant impact of the adaptive and innovation capabilities on the marketing performance of SMEs of culinary in Medan.

Keywords: financial performance, adaptive capabilities, innovation capabilities, SMEs

Topic: Strategic Management, Entrepreneurship and Contemporary Issues