THE FACTORS THAT INFLUENCE THE INTENTION OF MARKETING AND TECHNOLOGICAL INNOVATION IN MSMES

: Innovation drives change, and conversely, innovation occurs because of change. Initially, innovation was only oriented toward technology in discovering new products. Only large companies could do it since it requires a challenging process. All levels, including MSMEs, could carry out further developments and innovation because innovation is not only about technological innovations. Based on this, the research objectives are to analyze the influence of the MSME owner’s characteristics on the intention of marketing and technological innovation through attitude and motivation in Indonesia. SEM analysis with the Smart-PLS program was used to answer the research objectives. The population in this study is the Indonesian micro, small

Introduction.Innovation drives change, and conversely, innovation occurs because of change.So innovation becomes the driving force, as well as a solution effort.Various theories were developed by several researchers, along with the development of an understanding of innovation.Ciborowski (2016) conveyed the analysis of Schumpeter's theory that innovation occurs because the market is constantly moving.Thus, it requires technological superiority.From this condition, technological innovation is driven by internal companies.Schumpeter presented the theory around 1935 and argued that large companies could only carry out innovation because it requires a long process.These innovations drive changes in the economic, sociocultural, and market fields.Innovation theory continues to develop.Research results in recent years show that understanding innovation is not only about technology.It extends further into changes that lead to creativity in the value chain, among others.As stated by Ungerman (2018) and Lemanowicz (2015), there are marketing innovations, production processes, and organizational innovation.The study's results (Li and Lucien, 2019) show that marketing, product, and organizational innovation affect the performance of MSMEs.
Thus, the paradigm begins to develop, and all levels of business can carry out innovation.That is a new alternative for SMEs to innovate, with the understanding that innovation is the result of creative efforts.As stated by (Muller, 2019;Vrandea et al., 2009), innovation can and is open to SMEs, where SMEs exploit and exploit innovation.Understanding exploitation and exploitation leads to innovations that are not only technological innovations in the form of discoveries that take a long time but also marketing innovations.The theory of diffusion of innovation is an openness of innovation.It is a long process that companies can only carry out.This theory can challenge the theory of diffusion of innovation, where the theory of diffusion is based on actors.The length of the innovation process depends on the actors, which can be divided into innovators, early adopters, early majority, and late majority (Dearing and Cox, 2018).The theory explains that innovation depends on the actors who decide and produce the innovation, In the post-Covid-19 pandemic, the impact is felt by MSMEs, where MSME performance has decreased, and even 50% of microenterprises are no longer operating.To overcome these conditions, business actors, especially MSMEs, need to innovate quickly to improve or maintain their performance.At the MSME level.It is necessary to find answers to what factors need to be owned by business actors to encourage innovation to improve the performance of MSMEs immediately.According to Wiktorsson and Groth (2011), one of the conditions that must be met in carrying out innovation is the entrepreneurial concept of business actors.Furthermore, according to Mansfeld et al. (2010), innovative personal innovation is a specific creative actor in this case.People or business actors, called innovators, are essential factors in the success of innovation.As stated by Ahn et al. (2017), research results with respondents in Korea show positive CEO attitudes, entrepreneurial orientation (EO), patience, and education.According to Machmud (2017), motivation affects the innovation process.These motivations include achievement motivation, risk tendencies, and self-efficacy.The opinion of Koudelkova and Milichovcky (2014) and Gribanova et al. ( 2020) is similar.In addition, some researchers argue that a positive attitude toward innovation also affects the intention to innovate (Paulikas, 2018;Usai et al., 2018).
Based on this, this study aims to analyze the effect of the characteristics of MSME owners on Marketing Intentions and Technological Innovation through attitudes and motivations in Indonesia.The findings of this study could be used by the Government and social organizations that act as a companion for MSMEs to massively mobilize MSMEs to increase the intention of marketing innovation and technological innovation, in addition to being input for MSME owners to move towards increasing the intention of marketing innovation and technological innovation.Innovations made by MSMEs could be useful to overcome the slump in performance.These characteristics, attitudes, and motivations are the novelty of this study, which are the factors influencing the intention to innovate, both marketing and technological innovation.
Literature Review.Initially, innovation was only oriented toward technological innovation.Large companies only carried them out because the process took a long time.It is Schumpeter's Theory (Ciborowski, 2016).Furthermore, the Innovation Diffusion Theory determines the level of business actors towards innovation, starting with innovators, Early Adopters, Early Majority, and Late Majority (Dearing and Cox, 2018).From this character level, an understanding develops that innovation could be carried out quickly on certain characteristics, in this case, by business actors who are at the innovator level.The speed of innovation is needed, especially in unusual conditions.In addition, the new marketing concept is oriented toward meeting consumer needs, causing innovation to develop technology-oriented innovation and marketing orientation (Ungerman, 2018;Lemanowicz, 2015).The characteristics of MSME Owners based on several studies affect the innovation process and intentions, as follows a) awareness that influences innovation (Ying and Sovacool, 2021;Huang et al., 2019;Mai et al., 2018;Goorha and Potts, 2016;Bernatchez et al., 2015;Johnson, 2013;Larsen, 2011;Diaconu, 2011;Choi et al., 2008;Halbesleben et al., 2003); b) the curiosity which is the melting of knowledge and experience (Gross et al., 2020) affects innovation (Gross et al., 2020;Geum et al., 2020;Celik et al., 2016;Peljko, 2016); c) knowledge is a collection of experiences, appropriate information, and skill insights that form the structure of integrating new experiences and information (Mohajan, 2016;Encabo, 2016), influencing innovation (Ibarra et al., 2020;Asim and Sorooshian, 2019;Raghupathi and Raghupathi, 2017;Gupta et al., 2016;Nieves and Meneses, 2016;Suharti et al., 2014;Moreira et al., 2012); d) the innovator level differentiator contained in the Disruptive Innovation Theory includes opinion leadership, social status, financial stability, optimism, and risk-taker (Dearing and Cox, 2018;Cilicus, 2021).The levels of these various indicators determine the level of actors, including innovators, early adopters, early majority, or/and late majority.
Attitude expresses consumer feelings about an object and describes reactions to object attributes (Sumarwan 2015).In the Theory of Planned Behavior, Ajzen (1991) said that attitudes would lead to interest and behavior.In this case, the attitude towards innovation raises the intention to innovate.Attitude indicators include good-bad reactions, useful-not-beneficial, or pleasant-unpleasant reactions.Motivation is the drive within individuals that compels them to act.Motivation is triggered by various things, where the trigger source comes from within and outside.According to Urban (2008) in Koudelkova and Milichovsky (2015), motivation is described in detail as follows, motivation based on object interest, motivation based on financial rewards, motivation based on specific social level achievements, and motivation based on a social mission.In the Theory of Planned Behavior (TPB), motivation is part of perceived behavior control, namely behavioral control to form intentions. TPB components include attitude toward behavior, subjective norm, and perceived behavioral control (Ajzen, 1991).Innovation is change and novelty that could create added value, requiring specific and flexible management (Ozusaglam, 2012).So, innovation is the intention to make changes in a business that provides added value.Furthermore, according to Taylor (2017), innovation is the development or development of products and services.The doer can successfully build innovation (Dearing and Cox, 2018).Innovations include technological innovation and marketing innovation.Technological innovation has developed since the 1400th century, with the strengthening of Schumpeter's Theory (Chibowroski, 2016).
Furthermore, innovation develops not only technological innovation but also further, including marketing innovation.Marketing innovation in the form of unusual marketing initiatives or marketing development (Gupta et al., 2016).Besides, marketing innovation is identified as an effort to find new creative solutions to meet consumer needs, followed by developing innovative products (Ungerman, 2018).Thus, starting from fulfilling consumer needs to produce innovative products, it becomes one of the innovation marketing categories.Furthermore, according to (Medrano and Pascual, 2016;Naido, 2010), marketing innovation could improve company performance, even in times of crisis.Thus, marketing innovation and innovative technology need to be developed by increasing the drivers, namely awareness, curiosity, and knowledge of the actor.
Methodology and research methods.This research is explanatory because this research intends to explain the effect of the independent variable on the dependent variable through hypothesis testing.The population in this study is micro, small, and medium enterprises (MSMEs) in Indonesia from various types of businesses.The number of samples is determined based on the theory of Hair et al. (2006).The sample size is at least 5 times the number of questionnaires or multiples thereof.The number of respondents specified is 128.
The data collection method is a distribution of online questionnaires in the form of Google Forms, with a judgment sampling technique.The data analysis technique used in this research is Structural Equation Modeling (SEM).According to Ghozali (2012), SEM is the second generation of multivariate analysis techniques that allow researchers to examine the relationship between complex variables, both recursive and non-recursive, to obtain a comprehensive picture of the entire model.The tool used as a software in using SEM is Smart PLS.Before the data is tested, the validity and reliability are tested first.The standard validity of the indicators that make up the variables must meet the minimum loading factor requirements of 0.7.If it is less than 0.7, it is considered not strong enough to be part of the formation variable.Thus, it is excluded and not included in the further data processing.The reliability of the variables must meet the requirements of Cronbach's alpha and composite reliability above 0.7.Then the validity of the variables is indicated by the average extract variance (AVE) of more than 0.5.The hypothesis is accepted if it meets the requirements of P < 0.05 and T-count > 1.96 (T-table with an error rate of 0.05).
On the other hand, optimism encourages the emergence of motivation.Thus, whether it also encourages the emergence of motivation leading to innovation intention arises.Based on this, hypothesis 4 is formulated as follows: H4 Business actors carry out innovation.Innovation consists of marketing innovation and technological innovation.Furthermore, the characteristic component of MSME owners affects the intention of marketingoriented innovation (Bernatchez et al., 2015;Cilicus, 2021;Celik et al., 2016;Dearing and Cox, 2018;Diaconu, 2011;Gross et al., 2020;Geum et al., 2020;Peljko, 2016;Ying and Sovacool, 2021).Based on the Theory of Planned Behavior (Ajzen, 1991), the characteristic of MSME owner triggers an attitude reaction, where the attitude forms behavior that leads to intention, in this case, the intention to innovate.Furthermore, attitudes affect innovation intentions (Fishman, 2021;Paulikas, 2018;Sumarwan, 2015;Usai et al., 2018;).Based on this, the first hypothesis is formulated as follows: H5 H6.9 Attitude influences technology innovation intention.Business actors carry out innovation.Innovation consists of marketing innovation and technological innovation.Furthermore, the characteristics of the components of MSME owners influence marketingoriented innovation intentions (Bernatchez et al., 2015;Cilicus, 2021;Celik et al., 2016;Diaconu, 2011;Dearing and Cox, 2018;Gross et al., 2020;Geum et al., 2020;Peljko, 2016;Ying and Sovacool, 2021).Based on the Theory of Planned Behavior (Ajzen, 1991), the characteristics of MSME owners trigger a motivational reaction, where behavioral motivation leads to intention, in this case, the intention to innovate.Furthermore, motivation affects innovation (Ajzen, 1991;Gribanova, 2020;Haque et al., 2014;Koudelkova and Milichovski, 2015;Machmud, 2017).Based on this, the second hypothesis is formulated as follows: H7.1 Motivation intervening in the influence awareness of MSME owners on the intention of marketing innovation.

H7.2 Motivation intervening the influence of curiosity of MSME owners on the intention of marketing innovation.
H7.3 Motivation intervening the influence of knowledge of MSME owners on the intention of marketing innovation.
H7.4 Motivation intervening the influence of opinion leaders of MSME owners on the intention of marketing innovation.
H7.5 Motivation intervening the influence of social status of MSME owners on the intention of marketing innovation.
H7.6 Motivation intervening in the influence of financial stability of MSME owners on the intention of marketing innovation.H7.7 Motivation intervening in the influence optimism of MSME owners on the intention of marketing innovation.
H7.8 Motivation intervening the influence of risk-taker of MSME owners on the intention of marketing innovation.
H7.9 Motivation influences intention marketing innovation.Business actors carry out innovation.Innovation consists of marketing innovation and technological innovation.Furthermore, the characteristics of the components of MSME owners influence the intention of technology-oriented innovation (Diaconu, 2011;Huang et al., 2019;Johnson, 2013;Mai et al., 2018).Based on the Theory of Planned Behavior (Ajzen, 1991), the characteristics of MSME owners trigger a motivational reaction, where behavioral motivation leads to intention, in this case, the intention to innovate.Furthermore, motivation affects innovation (Ajzen, 1991;Gribanova, 2020;Haque et al., 2014;Koudelkova and Milichovski, 2015;Machmud, 2017).Based on this, the fourth hypothesis is formulated as follows: H8 H8.8 Motivation intervening the influence of risk-taker of MSME owners on the intention of technology innovation.
Results.The number of female and male respondents differed (65.6% and 34.4%, respectively).Respondents come from various regions in Indonesia, with various types of businesses.The longest time in entrepreneurship/owning a business is over 3 years.Most of the employees owned are less than 4 people, mostly micro-entrepreneurs (67.2%).Table 1 presents the details.Continued Table 1 Sources: developed by the authors.
Indicators have an outer loading of less than 0.6.Some indicators are invalid to measure the construct and must be deleted.The deleted indicators are X5.3.Once removed, the following indicators meet the construct requirements and can be further processed.Table 2 presents the validity of indicators that have met the requirements for further processing.Table 2 allows concluding that all indicators are valid because the outer loading is more than 0.6.
Table 3 shows that all variables' composite reliability and Cronbach's Alpha are more than 0.7, and the Average Variance Extracted (AVE) is more than 0.5.Thus, the variable (construct) is reliable and valid.Sources: developed by the authors.
Table 3 shows the results of the reliability and validity variable test.Sources: calculated by the authors.
The coefficient of determination (R square Adjusted) shows how much influence the influencing variable has on the affected variable (Table 4).Sources: calculated by the authors.
The Adjusted R Square Y1 value of 0.626 (Table 4) shows that changes in Z1 and Z2 could explain 62.6% of the Y1 variable.At the same time, the remaining 37.4% is explained by other factors outside the model.The Adjusted R Square Y2 value of 0.781 from the table above shows that changes in Z1 and Z2 can explain 78.1% of the Y2 variable.At the same time, the remaining 21.9% is explained by other factors outside the model.The Adjusted R Square Z1 value of 0.820 (Table 4) shows that changes in X1 can explain 18% of the Y2 variable, X2, X3, X4, X5, X6, X7, and X8.Other factors outside the model explain the remaining 21.9%.The Adjusted R Square Z2 value of 0.744 (Table 4) shows that changes in X1 can explain 74.4% of the Y2 variable, X2, X3, X4, X5, X6, X7, and X8.In contrast, other factors outside the model explain the remaining 25.6%.
The results of Path Analysis show the results of hypothesis testing, based on the t-test, namely to test the effect of the independent variable on the dependent variable and the moderating variable.Table 5 presents the path analysis results of two effect lanes.The results of the hypothesis analysis show that the characteristics of MSME owners that influence technological innovation intentions are awareness (H2.1), financial stability (H2.6), optimism (H2.7), risk-takers (H2.8), attitude (H6.9), motivation (H8.9).Curiosity (H2.2) does not directly influence the intention of technological innovation.It is necessary to have a positive attitude towards innovation as an intervening variable (H6.2 is accepted).Optimism with motivation as an intervening variable influences the intention of technological innovation (H7.7 is accepted).Optimists and risk-takers either with attitude as an intervening variable (H6.7) or can directly influence technological innovation intentions (H2.7).Furthermore, a positive attitude towards innovation directly influences technological innovation intentions.In contrast to awareness and financial stability, both do not require intervening variables because they can directly influence technological innovation intentions (H2.1 and H2.6).Referring to previous research that characteristics influence the intention of technological innovation (Asim and Sorooshian, 2019;Diaconu, 2011;Huang et al., 2019;Ibarra et al., 2020;Johnson, 2013;Mai et al., 2018;Raghupathi and Raghupathi, 2017;Suharti et al., 2014).Opinion leadership (H4.4) and social status (H4.5) influence marketing innovation intentions.It is the understanding that creating creativity requires expanding the network (Wulandari and Uno, 2021).Opinion leadership strength and social status indicate the power of network development.In addition, attitudes and motivation significantly and positively affect marketing innovation intentions.Referring to previous research that characteristics influence marketing innovation intentions (Altunbasak, 2015;Bernatchez et al., 2015;Celik et al., 2016;Silikus, 2021;Diaconu, 2011;Dearing and Cox, 2018;Geum et al., 2020;Kotor et al., 2020;Gupta et al., 2016;Moreira et al., 2012;Nieves and Meneses, 2016;Peljko, 2016;Ying and Sovacool, 2021).Furthermore, the factors that shape the attitude toward innovation are curiosity (H3.2), optimism (H3.7), and risk-taker (H3.8).The factors that shape the motivation related to innovation are optimism (H4.7) and taking (H4.8).
Conclusions.Optimism variable alone cannot grow the intention of marketing innovation.It is necessary to build an attitude and motivation first to grow the intention of marketing innovation.In addition, optimism can foster technological innovation intention directly or through forming attitudes and motivation first.The risk-taker cannot directly develop the intention of marketing innovation.It is necessary to build motivation first.
Meanwhile, risk-takers can increase the intention of technological innovation directly or through the formation of attitudes and motivation.In addition, curiosity cannot directly influence the intention of technological innovation except by forming attitudes first.Thus, the factors influencing the intention of marketing innovation include opinion leadership, social status, optimism, and risk-taker.Factors influencing technological innovation's intention are awareness, financial stability, optimism, risk-taker, and curiosity.These characteristics, attitudes, and motivations are the novelty of this study, which are the factors influencing the intention to innovate, both marketing and technological innovation.MSME owners need to strengthen their character to create innovations, including opinion leadership, optimism, risk-takers, awareness, and curiosity.In addition, MSMEs need to prepare for financial stability and social status.Furthermore, the government and institutions related to the empowerment of MSMEs need to organize activities that motivate and build an attitude of innovation for MSMEs.All Adjusted R Square above 0.5 means that the independent and intervening variables that affect the dependent variables are quite strong.However, further research is needed to determine other factors that influence the increase in innovation intention.The factors necessary for continuing this research to encourage innovation intentions are business environment factors and government policies.
Conflicts of Interest: We declare there is no conflict of interest.The sponsor, in this case, Universitas Mercu Buana University, does not interfere with research related to the development of the study; in the collection, analysis, or interpretation of data; or in the decision to announce the results must be announced.
.1 The awareness of MSME actors influences the intention of marketing innovation.H1.2The curiosity of MSME actors influences the intention of marketing innovation.H1.3The knowledge of MSME actors influences the intention of marketing innovation.H1.4The opinion leadership of MSME actors influences the intention of marketing innovation.H1.5 The social status of MSME actors influences the intention of marketing innovation.H1.6 The financial stability of MSME actors influences the intention of marketing innovation.H1.7 The optimism of MSME actors influences the intention of marketing innovation.H1.8The risk-taker of MSME actors influences the intention of marketing innovation.
.1 The awareness of MSME actors influences the intention of technology innovation.H2.2The curiosity of MSME actors influences the intention of technology innovation.H2.3The knowledge of MSME actors influences the intention of technology innovation.H2.4The opinion leadership of MSME actors influences the intention of technology innovation.H2.5 The social status of MSME actors influences the intention of technology innovation.H2.6 The financial stability of MSME actors influences the intention of technology innovation.H2.7 The optimism of MSME actors influences the intention of technology innovation.H2.8The risk-taker of MSME actors influences the intention of technology innovation.Based on several studies, characteristic components affect attitude, including knowledge that affects attitude (Zhu and Xie, 2015).According to Malandrino et al. (2013), awareness affects the attitude of respondents to ICT (Information and Communication Technology).Harada (2020) argues that risk-takers regarding finding solutions affect attitudes.Attitude consists of a positive or negative attitude.Thus, there is a question of to what extent positive characteristics influence positive attitudes toward innovation.Based on this, the following hypotheses are formulated: H3.1 The awareness of MSME actors influences the attitude.H3.2The curiosity of MSME actors influences the attitude.H3.3The knowledge of MSME actors influences the attitude.H3.4The opinion leadership of MSME actors influences the attitude.H3.5 The social status of MSME actors influences the attitude.H3.6 The financial stability of MSME actors influences attitude.H3.7 The optimism of MSME actors influences the attitude.H3.8The risk-taker of MSME actors influences the attitude.
.1 The awareness of MSME actors influences motivation.H4.2The curiosity of MSME actors influences motivation.H4.3The knowledge of MSME actors influences motivation for innovation.H4.4The opinion leadership of MSME actors influences motivation for innovation.H4.5 The social status of MSME actors influences motivation for innovation.H4.6 The financial stability of MSME actors influences motivation for innovation.H4.7 The optimism of MSME actors influences motivation for innovation.H4.8The risk-taker of MSME actors influences the motivation for innovation.
.1 Attitude intervening in the influence awareness of MSME owners on marketing innovation intention.H5.2 Attitude intervening in the influence curiosity of MSME owners on marketing innovation intention.H5.3 Attitude intervening in the influence knowledge of MSME owners on marketing innovation intention.H5.4 Attitude intervening in the influence opinion leadership of MSME owners on marketing innovation intention.H5.5 Attitude intervening in the influence of the social status of MSME owners on marketing innovation intention.H5.6 Attitude intervening in the influence of the financial stability of MSME owners on marketing innovation intention.H5.7 Attitude intervening in the influence optimism of MSME owners on marketing innovation intention.H5.8 Attitude intervening in the influence risk-taker of MSME owners on marketing innovation intention.H5.9 Attitude influences marketing innovation intention.Business actors carry out innovation.Innovation consists of marketing innovation and technological innovation.Furthermore, the characteristic component of MSME owners affects the intention of technologyoriented innovation(Diaconu, 2011;Huang et al., 2019; Johnson, 2013; Mai et al., 2018;).Based on the Theory of Planned Behavior (Ajzen, 1991), the characteristic of MSME owner triggers an attitude reaction, where the attitude forms behavior that leads to intention, in this case, the intention to innovate.Furthermore, attitudes affect innovation(Fishman, 2021; Paulikas, 2018; Sumarwan, 2015;Usai et al., 2018).Based on this, the third hypothesis is formulated as follows:H6.1 Attitude intervening in the influence awareness of MSME owners on technology innovation intention.H6.2 Attitude intervening in the influence of curiosity of MSME owners on technology innovation intention.H6.3 Attitude intervening in the influence of knowledge leadership of MSME owners on technology innovation intention.H6.4 Attitude intervening in the influence of opinion leaders of MSME owners on technology innovation intention.H6.5 Attitude intervening in the influence of social status of MSME owners on technology innovation intention.H6.6 Attitude intervening the influence on the financial stability of MSME owners on technology innovation intention.H6.7 Attitude intervening in the influence optimism of MSME owners on technology innovation intention.H6.8 Attitude intervening in the influence of risk-taker of MSME owners on technology innovation intention.
.1 Motivation intervening in the influence awareness of MSME owners on the intention of technology innovation.H8.2 Motivation intervening the influence of curiosity of MSME owners on the intention of technology innovation.H8.3 Motivation intervening the influence of knowledge of MSME owners on the intention of technology innovation.H8.4 Motivation intervening the influence of opinion leaders of MSME owners on the intention of technology innovation.H8.5 Motivation intervening the influence of social status of MSME owners on the intention of technology innovation.H8.6 Motivation intervening in the influence of financial stability of MSME owners on the intention of technology innovation.H8.7 Motivation intervening the influence of optimism of MSME owners on the intention of technology innovation.

Figure 1 .
Figure 1.Model of result