A Study On The Relationship Between Innovation Factors, Innovation Capacity And Innovation Performance In Small And Medium Enterprises
The global competitiveness of Malaysia in innovation has been declined recently. Small medium enterprise (SME) hold 98.5% of businesses and seek as an economy backbone in Malaysia. However, the declining innovation index has been reflected that a low level of innovation in SME. In the line with Mala...
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| Format: | Thesis |
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2019
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| Summary: | The global competitiveness of Malaysia in innovation has been declined recently. Small medium enterprise (SME) hold 98.5% of businesses and seek as an economy backbone in Malaysia. However, the declining innovation index has been reflected that a low level of innovation in SME. In the line with Malaysia Master Plan (2012-2020), focusing on a fresh approach to bring SME to the next level by accelerating growth through innovation. With the aim to ensure SME able to achieve higher innovation level, this study seeks a need to further investigate in this field. The study aims to provide a result which innovation factors affect innovation performance as there are relatively little empirical evidences in previous researches and very little companies nurture innovative activities in SMEs. This study examined the relationship among innovation factors, innovation capacity towards innovation performance based on Absorptive Capacity Theory. This study used quantitative methodology, 300 sample sets has been collected from Malaysia SMEs and further analysed the results by using Structural Equation Modelling (SEM). The results indicated that all items are normal and do not exist multicollinearity. Also, the research framework which developed in this study also achieved goodness of fit through confirmatory factor analysis (CFA). Each variable is valid and reliable by achieving the acceptable values of composite reliability (CR) and average variance extracted (AVE). |
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