Previous research has concluded how the Small Medium Enterprise (SMEs) have huge effect on the world economy. On the other hand, future demands lead SMEs to be able to be innovative in order to compete in the business world. One indicator of the innovative scale of a company is the scale of innovation of its products. This research tries to analyze how the impact of dimensions in technological innovation capabilities (TIC) on the performance of new product development (NPD) on SMEs. There are 7 dimensions in TIC, namely learning capability, R&D capability, resource allocation capability, manufacturing capability, marketing capability, organizing capability and strategic planning capability. The analysis method used in this research is the structural equation modeling (SEM) approach using SmartPLS 3.0 software. The data processed is the result of a questionnaire that was answered successfully by 178 SMEs. The analysis results indicate that the marketing capability, R&D capability and strategic planning capability had significant impacts on the new product development performance.

Original languageEnglish
Pages (from-to)2875-2882
Number of pages8
JournalManagement Science Letters
Issue number12
Publication statusPublished - 2020


  • New product development
  • Performance
  • Small medium enterprise
  • Technological innovation capabilities


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