256 Marketing Capability is used to add a value to the initial input of resources.
Vorhies 1999 also adopted the Day 1994 which says that the Marketing Capability is a process designed to design the knowledge of integrative
collective, skills, and resources of the company to market-related business needs, which allows businesses to add value to goods and services, and
meet the competitive demands. Marketing Capability of the company refers to a companys ability to differentiate on products and services from
those of competitors while also creating and maintaining a profitable brand Azizi, Mohave, and Khah, 2009. Two areas Marketing Capability
interrelated should have been identified: the ability of the Marketing Mix such as product development and management, pricing, sales, marketing
communications, and channel management and the ability of the process of marketing strategy development and execution Vorhies and Morgan ,
2009. As for the notion that marketing capability have the capability to influence the innovation capability to create a development of the
products or services produced by the company, Mohammed et al 212
B. Innovation Capability Tabel 2.
Innovation Capability Source
Defitinition Document
Saunila Minna
Innovation can be considered as the ability of the organization because it
is the act of bringing together resources capabilities that already
exist with the new ability to create value.
• Organization
al Capability •
Ability Resources
• creating
Value
Francis dan
Bessant
The development of innovation capacity is essential for innovation
play a key role in the survival and growth of the organization.
• Ability
Innovation •
Growth Organization
Tidd The measures used to prove the
relationship between innovation and business performance into two
categories. The first group concerns the
accounting and
financial performance, including profitability,
return on investment, and stock •
Financial performance
• Profitability
• Profit
• Investation
• Stock price
• Market
257 prices. The second group is the
performance of the market, such as stocks or growth.
Performance
Wang Innovation Capability classification
and definition, which describes the Incremental Innovation Capability as
the ability to generate innovations that improve and strengthen the
existing products and services, while the Radical Innovation Capability is
the ability to produce innovation that significantly alter the existing
products and services. •
Radical Innovation
Capability •
Incremental Innovation
Capability
Lowson dan Samson
the ability of innovation as a high- level integration capabilities and
proposed a mixed model consisting of a vision and strategy, utilizing
basic
competence, intelligence
organizations, creative and idea management,
organizational structure and systems, culture and
climate, and
technology management.
• High-
Level Integrati
on
• Strategy
• Creative
Manage ment
• Structure
• manage
ment of Technolo
gy
Innovation can be considered as the ability of the organization because it is the act of bringing together resources capabilities that already exist with
the new ability to create value Saunila Minna, 2014. Therefore, the development of innovation capabilities is essential for innovation play a
key role in the survival and growth of the organization Francis and Bessant, 2005 cited by Saunila, 2014.
258 According Saunila Minna 2014 which is based on Calantone 2002
innovation is the most important determinant of an organizations performance. Tidd 2001 adopted by Saunila Minna 2014 divides the
steps - steps that are used to prove the relationship between innovation and business performance into two categories. The first group concerns
the accounting and financial performance, including profitability, return on investment, and stock prices. The second group is the performance of the
market, such as stocks or growth. According to Wang 2013 which adopted Subramaniam and Youndt 2005
classification and definition of Innovation Capability, which describes the Incremental Innovation Capability as the ability to generate innovations
that improve and strengthen the products and services currently available, while the Radical Innovation Capability is the ability to produce significant
innovations modify existing products and services. Wang 2013 which is based on Abernathy and Clark 1985 showed that the Incremental
Innovation Capability focused on the accumulation and strengthening of existing knowledge, which helps to improve our knowledge of the
dominant. In contrast, Radical Innovation Capability focused on change and transformation of existing basic knowledge. Lowson and Samson 2001
argues that innovation capability as the ability of high level of integration and proposed a mixed model consisting of a vision and strategy, utilizing
basic competence, intelligence organizations, creative management and ideas, organizational structure and systems, culture and climate, and
technology management , As a result, Radical Innovation Capability create applicable knowledge base into using new knowledge and establish a set of
dominant. Indicators used:
1. Participatory leadership culture. Participatory leadership culture
refers to all the organizations which support and motivate innovation, and leadership that facilitate innovation Saunila and
Ukko, 2013.
2. Ideation and organizing structures. Ideation and organizing
structure related to the structure and system of successful innovation. It includes the generation, development, and
application of innovation, as well as the ways how the organizations work can be organized Saunila and Ukko, 2013.
3. Work climate and wellbeing. Work climate and wellbeing
represent the welfare of employees and further work climate for the development of innovation, including collaboration and
259 values. Innovation is more likely in situations where people with a
high level of integrity, competence, reliability, loyalty, and high openness towards other people and other people see the same
4. Know-how development. Know-how development, including skills
and knowledge of employees who play an important role in the ability of innovation. This includes the use of knowledge and
improvement of skills of employees Saunila and Ukko, 2013.
5. Regeneration. Regeneration reflect the organizations ability to
learn from previous experiences and use that experience to make innovations and develop their operations Saunila and Ukko,
2013.
6. External
knowledge. External
knowledge highlights
the importance of proper conduct of the external network utilization
and knowledge to the organizations overall innovation capability Saunila and Ukko, 2013.
7. Individual activity. Individual innovation capability that is where
employees and activities required to establish the overall innovation capability of organizations, which form the aspect of
employee activities Saunila and Ukko, 2013.
C. Marketing Perfomance Table 3.
