Journal of Economics.
Entrepreneurship.
Management Business and Accounting, 2026, 4.
,1-10.
https://doi.
org/10.
61255/jeemba.
Innovation Capability As a Strategic Asset:
Examining the Human Resource Dynamics and Technology Integration Business Performance Muh.
Rasbi1*.
Erwin2.
Andika Isma2.
Hajar Dewantara2.
Muhammad Nur Alam Muhajir3 1Universitas Islam Negeri Alauddin Makassar, 92113.
Indonesia 2Faculty of Economics and Business.
Universitas Negeri Makassar, 90222.
Indonesia 3Faculty of Islamic Economics and Business.
Universitas Islam Negeri Palopo, 91914.
Indonesia
ABSTRACT
ARTICLE INFO
Purpose Ae This study aims to analyze business performance models using innovation capabilities, which are rarely used to improve business performance.
Design/methodology/approach Ae The research method used is questionnaires and analyzing them using Partial Least SquaresStructural Equation Modeling Finding/Results Ae The findings of this study indicate that there is no significant relationship between innovation capabilities and business performance, and there is no moderating effect of technology access on the relationship between innovation capabilities and business performance.
Originality/Value Ae This study contributes to the literature by uncovering a 'performance paradox', where innovation capabilityAi contrary to conventional theoriesAishows no significant impact on business performance.
It shifts the academic focus from internal innovation processes to the critical necessity of direct technology access as a primary driver for business resilience in the digital era.
Keywords:
Innovation Capability.
Business Performance.
Technology Access Article Information:
Received: 16/01/2026 Revise 1: 12/03/2026 Revise 2: 25/03/2026 Accepted: 25/03/2026 ISSN:
2985-3168 (Onlin.
2985-3222 (Prin.
___________ *Corresponding Author at:
Department of Economics.
Faculty of Economics and Business.
Universitas Hasanuddin.
Jalan Perintis Kemerdekaan No.
Makassar 90245.
Indonesia.
E-mail address: muh.
rasbi@uin-alauddin.
id (Muh.
Rasb.
, erwin@unm.
id (Erwi.
, andika.
isma@unm.
(Andika Ism.
, hajardewantara@unm.
id (Hajar Dewantar.
, mnur_alam@uinpalopo.
id (Muhammad Nur Alam Muhaji.
The work is licensed under a Creative Commons Attribution-ShareAlike 0 International (CC BY-SA 4.
Journal of Economics.
Entrepreneurship.
Management Business and Accounting Introduction Business performance is a highly influential indicator in the economy, particularly in the corporate world.
Business performance itself is a measure of how well and to what extent a company is able to achieve its goals.
Business performance is very important to be achieved by every organization because it represents the corporation's ability to manage and deploy its resources effectively (Rahmawati.
Wahyuningsih, and Garad 2.
Business performance can be achieved through the company's ability to achieve the strategic goals and operational targets that have been set (Rose B.
Mathafena 2.
Business performance is also an important success factor that can produce sustainable competitive advantage (Wongsansukcharoen and Thaweepaiboonwong 2.
Business performance refers to the achievement of organizational goals that are mandatory for the survival of the organization, which consists of financial performance and non-financial performance (Rehman et al.
Business performance is a factor that is always considered in the business world, but in practice, organizations still face many challenges in improving their business performance.
These performance issues also vary greatly depending on the context and scale of the Business performance issues are influenced by several factors, including entrepreneurial orientation, social media adoption, innovation, andfinancial also affects business performance (Natasha.
Christin, and Soesilo 2023.
Debrulle et al.
A person's attitude also influences business performance, where if not monitored, they may become overconfident or careless, resulting in poor business performance, even failure (Conejo.
Khuntia, and Parthasarathy 2.
In addition to weak ties .
oose acquaintances, shallow relationships and relationships with people in societ.
are one of the causes of failed business performance.
Environmental conditions such as the Covid-19 pandemic can also have a negative impact on business performance (Tran Thi Ngoc Lan.
Le Doan Minh Duc.
Nguyen Hoang Tien and Do Huu Hai.
Dinh Hoang Anh Tuan 2022.
Mouzas and Bauer 2.
The solution to achieve maximum business performance is to utilize technology access, collaborate between various business actors, and innovate in terms of services and products (Agrawal et al.
Kreshpaj et al.
and in other research it is said that the use of AIS (Accounting Information Syste.
is also a solution to improve business performance (Aisjah.
Arsawan, and Suhartanto 2023.
Government support is also useful for increasing interaction between companies which can improve business performance within a company (Kim and Jin 2.
This research is important to conduct because innovation capabilities are needed to improve business performance and competitive advantage (Hanaysha et al.
It is known that business performance has a significant influence on business growth.
This research also shows that access to technology has a significant influence on business performance (Kumar.
Singh, and Jain 2022.
Agrawal et al.
We live in a time of radical transition in the sustainable production and consumption of goods and services.
Much of this transformation relates to corporate sustainability and technology-based innovation, which are key factors in successful business performance (Yanine and Campos 2.
This research also helps provide knowledge that strengthening close relationships between entrepreneurs can help maintain and improve business performance (Udriyah.
Tham, and Ferdous Azam 2.
This study aims to determine the influence of innovation capability on business performance moderated by technology access.
Journal of Economics.
Entrepreneurship.
Management Business and Accounting Literature Review & Hypothesis Development Innovation Capability Innovation capability refers to the fulfillment or creation of technology as applied to new products, devices, systems, processes, services, etc.
within an organization (Fan et al.
Innovation capability is the ability to create something new that is different from before, which is able to create added value and utility value for something, whether it is goods or services, so that it can attract consumer purchasing power.
Parwita et al.
in their research said that there are three indicators of the innovation capability variable, namely:
market innovation, product innovation, and innovation process (Parwita et al.
Innovation capability is crucial for companies to cope with the turmoil of a rapidly changing environment and to gain competitive advantage (VU 2.
According to previous research, innovation capability has a significant impact on business performance, enabling companies to develop innovative capabilities that drive growth and ensure long-term success (Linda Sutanto.
Bambang Tjahjadi, and Fiona Niska Dinda Nadia 2.
Other research suggests that innovation capability has a positive influence on sustainable business Furthermore, innovation capability also partially mediates the relationship between sustainable business performance and organizational performance (Somwethee.
Aujirapongpan, and Ru-Zhue 2.
Based on several previous findings, the research hypothesis is outlined as follows:
H1: Innovation capability influences business performance.
Technology Access Technology is an innovation that can address the various challenges affecting the construction industry, including cost overruns, rework, low project performance, poor safety records, substandard quality and undesirable productivity (Nikmehr et al.
Technology is a means of greater flexibility that helps maintain competitive prices (Stalmachova.
Chinoracky, and Strenitzerova 2.
Technology access is how technology plays a role or helps business activities.
Prabawa .
et al.
in his research said that there are three indicators of the technology access variable, namely: intensity of information technology, ease of exchanging information and ease of access to collaboration.
Access to this technology makes it easier for businesses to improve their innovation and According to previous research, technology is fast and a crucial factor for business success, with access to technology playing a significant role in influencing business performance (Qalati et al.
In other research, it is stated that access to technology can improve company performance as a result of the creation and use of its capabilities (Erkmen.
Gynsel, and Altnda 2.
Based on several previous findings, the research hypothesis is outlined as follows:
H2: Access to technology has an impact on business performance.
Business Performance Business performance is the result of activities carried out within a company or organization, influenced by internal and external factors, in achieving predetermined goals.
Business performance in entrepreneurship is measured by the company's success in increasing revenue, reducing operating costs, and reinvesting initial capital (Rahmawati.
Wahyuningsih, and Garad 2.
Business performance is the ability of a business to achieve its goals and objectives.
It is measured by various metrics, including revenue, profit, market share, customer satisfaction, and employee engagement (Aisjah.
Arsawan, and Suhartanto Therefore, business performance shows growth and development as a reflection of Journal of Economics.
Entrepreneurship.
Management Business and Accounting effective and efficient organizational management.
Business performance is the end result of an organization's efforts in managing its resources.
Performance is a reflection of how an organization manages its resources, thus determining the organization's survival.
Rahayu .
in his research said that there are three indicators of business performance variables, namely: increased sales, increased profits and satisfactory growth.
Methodology This research uses quantitative research type.
The data in this study were collected using a questionnaire distributed to 100 samples.
The sample in this study were entrepreneurs who have their own businesses.
This study used a purposive sampling technique with the criteria being entrepreneurs or self-employed entrepreneurs.
This study used a Likert scale, with 1 = strongly disagree to 5 = strongly agree to measure the questionnaire items used.
Specifically, this study measured the innovation capability variable with six statement items.
The technology access variable was measured with six statement items.
Furthermore, the business performance variable was measured with six statement items.
This study employed variance-based structural equation modeling.
Partial Least Squares (PLS) was used to assess the measurement model and structural model, and to test the research hypotheses.
Furthermore.
PLS was used to address the issue of non-normally distributed data (Hair et al.
Technology Access Innovation Capability Business Performance Figure 1.
Conceptual Framework Result and Discussion Respondent Demographics Based on Table 1.
1, it is clear that the majority of respondents in this study were entrepreneurs who owned their own businesses.
Furthermore, based on the type of business, there were various types of businesses.
Furthermore, based on age, they ranged from 17 to 50 years and above.
The following is a description of the demographic statistics of the research Profile Gender Man Woman Table 1.
1 Demographic Profile Total Percentage % Journal of Economics.
Entrepreneurship.
Management Business and Accounting Age Under17 years 18 to 25 years old 26 to 32 years old 33 to 40 years old Over 50 years old Type of business Fashion Business Food Business Other Unknown Source: Author's Analysis, .
Validity and Reliability Measurement Model Evaluation The measurement model evaluation in this study includes a reflective measurement model using the variables innovation capability, technology access, and business performance.
This study refers to a study conducted by Hair et al.
that stated that the reflective measurement model consists of a loading factor Ou 0.
70, composite reliability Ou 0.
Cronbach's alpha, and average variance extracted (AVE Ou 0.
, and uses discriminant validity evaluation, namely HTMT.
The following is Table 4.
1: Measurement Model Evaluation Table 1.
Measurement Model Evaluation Measurement Outer Cronbach's Composite Variables AVE Items Loadings Alpha Reliability X1.
X1.
Innovation X1.
Capability X1.
X1.
X1.
X2.
X2.
Technology X2.
Access X2.
X2.
X2.
Business Performance Source: Smart PLS 4 data processing, .
Based on the table, it is known that the Innovation Capability variable is measured by 6 .
valid measurement items with outer loadings between 0.
737 Ae 0.
891, which indicates that the Journal of Economics.
Entrepreneurship.
Management Business and Accounting six items are valid in reflecting the measurement.
The variable reliability level is acceptable as indicated by Cronbach's alpha and composite reliability above 0.
Furthermore, the convergent validity level indicated by the AVE value of 0.
678 > 0.
50 has met the requirements for good convergent validity.
Among the five valid measurement items, innovation capability appears to be stronger, reflected by X1.
It is also known that the Technology Access variable is measured by 6 .
valid measurement items with outer loading between 0.
803 Ae 0.
872 which indicates that the six items are valid and reflect the measurement.
The level of variable reliability is acceptable as indicated by Cronbach's alpha and composite reliability above 0.
Furthermore, the level of convergent validity indicated by the AVE value of 0.
708 > 0.
50 has met the requirements for good convergent validity.
Among the five valid measurement items, innovation capability appears stronger as reflected by X2.
Meanwhile, the Technology Access variable is measured by 6 .
valid measurement items with outer loadings between 0.
724 Ae 0.
818, indicating that the six items are valid and reflect the measurements.
The variable reliability level is acceptable, indicated by Cronbach's alpha and composite reliability above 0.
Furthermore, the convergent validity level indicated by the AVE value of 0.
598 > 0.
50 has met the requirements for good convergent Among the five valid measurement items, innovation capability appears to be stronger, reflected by Y5 .
Table 2.
HTML
Business Innovation Construct Technology Access Performance Capability Business Performance Innovation Capability Technology Access Technology Access x Innovation Capability Source: Smart PLS 4 data processing, .
Hair et al.
recommends HTMT because this measure of discriminant validity is considered more sensitive in detecting discriminant validity.
The recommended value is The HTMT test results based on the table above indicate that if the HTMT value for each variable is below 0.
90, discriminant validity is achieved.
Structural Model Evaluation This test is conducted because it is closely related to hypothesis testing, specifically the influence between variables.
The structural model evaluation in this study refers to the research conducted by Hair et al.
, which conducted a multicollinear evaluation using the Inner VIF measure and hypothesis testing using the t-statistic or p-value.
The following illustrates the structural model evaluation in this study.
Table 3.
Inner VIF
Construct
VIF
Innovation Capability -> Business Performance 1,954 Technology Access -> Business Performance 2,229 Journal of Economics.
Entrepreneurship.
Management Business and Accounting Technology Access x Innovation Capability -> Business Performance 1,597 Source: Smart PLS 4 data processing, .
The Inner VIF table shows that there is no multicollinearity between the variables indicated by the inner VIF value below 5.
Thus, this result confirms that the parameter estimation results in SEM PLS are robust .
Table 4.
Hypothesis Testing Path Coefficient Pvalue I Innovation Capability -> 0.
Business Performance Technology Access -> 0.
Business Performance Technology Access x 0.
Innovation Capability -> Business Performance Source: Smart PLS 4 data processing, .
Hypothesis 95% Internal Trust Path Coefficient Lower Limit Upper Limit The table above shows that there is no significant effect of innovation capability on business performance with a path coefficient of 0.
291 and a p-value of 0.
677 > 0.
Furthermore, there is a significant effect of technology access on business performance with a path coefficient of 0.
604 and a p-value of 0.
000 < 0.
Any increase in technology access will improve the business performance of entrepreneurs.
Within a 95% confidence interval, the effect of technology access on improving business performance lies between 0.
300 and 0.
Furthermore, the results of this study also show that there is no significant effect between technology access and innovation capability on business performance with a path coefficient 015 and a p-value of 0.
119 > 0.
Furthermore, the mediation test shows that technology access does not have a moderating effect on the influence of innovation capability on business performance.
Discussion The results of our data processing show that Innovation Capability does not have a positive impact or influence on Business Performance.
This is because the type of business may not require innovation in its business or the business is monotonous, and perhaps if there is a change in the business it could affect the income and thinking of consumers so that through the results of the research that we have done there is no influence caused by innovation capability on business performance.
This finding is not in line with the study conducted by Mathafena .
Business performance can be achieved through the company's ability to achieve strategic and operational goals by delivering new innovations.
Innovation capability is a strategic interfunctional coordination tool for improving business Conversely, technology access significantly impacts business performance.
This is because technological access facilitates and supports entrepreneurs' business performance.
Advances in technological access can improve business performance.
This finding aligns with a study conducted by StjepiN.
PejiN Bach, and Bosilj VukiN .
about emerging Journal of Economics.
Entrepreneurship.
Management Business and Accounting technological innovations that can improve business performance and increase the company's overall business activities.
The results of this study indicate that technological access does not moderate the relationship between innovation capability and technological access.
This finding suggests that the relationship between innovation capability and business performance is not mediated through technological access.
In other words, technological access, as a moderating variable in this study, does not directly impact innovation capability.
This is due to entrepreneurs' lack of knowledge and understanding of technological access, which hinders their ability to moderate its impact on business performance.
Furthermore, unequal access to technology also hinders entrepreneurs living in remote or isolated areas from obtaining access to technology.
This finding is not in line with previous research which stated that access to technology can provide convenience in making new innovations for businesses so that it is useful in improving business performance by utilizing access to technology or new methods that can improve the condition of the company and business performance (Jonathan and Nuringsih 2.
Access to technology can help entrepreneurs innovate and improve their business performance.
Conclusion and Suggestion The conclusion of this study shows that there is no complex relationship between innovation capability and business performance.
This finding indicates that the level of innovation capability does not have a positive impact on business performance, but access to technology has a positive effect on business performance.
Furthermore, access to technology does not moderate the relationship between innovation capability and business performance in improving their business.
The implications of this research can help entrepreneurs improve their businesses by increasing their innovation capabilities, but this depends on the type of business and the utilization of technology access and the entrepreneurs' knowledge of the role of technology itself.
Reference