Successful factors for innovation and their impact on performance of Malaysian small and medium entreprises
Innovation among small and medium enterprises (SMEs) has been the popular research topic of many researchers in the past decades due to its significant contribution to economic growth. However, according to the OECD Review of Innovation Policy in 2011, Malaysia has yet to enter a stage of inno...
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| Main Author: | |
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| Format: | Thesis |
| Language: | English |
| Published: |
2018
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| Subjects: | |
| Online Access: | http://psasir.upm.edu.my/id/eprint/90455/1/FEP%202018%2058%20IR.pdf |
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| Summary: | Innovation among small and medium enterprises (SMEs) has been the popular research
topic of many researchers in the past decades due to its significant contribution to
economic growth. However, according to the OECD Review of Innovation Policy in
2011, Malaysia has yet to enter a stage of innovation-led growth in the last decade.
This phenomenon suggests that some practical gaps should be filled, where sources
that improve innovativeness of SMEs should be examined in order to successfully
promote innovation-led growth amongst SMEs in Malaysia. Using Resource-Based
View (RBV) as underpinning theory, this study examines the relationship between
sources of innovation, innovation and firm performance in the context of
manufacturing and service sector of Malaysia SMEs. A total of 125 samples were used
in data analysis using partial least squares (PLS) techniques for hypothesis testing. The
findings of the hypothesis testing showed that R&D strategy, strategic relationship and
customer relationship have positive impact on innovation where strategic leadership
was the most influencing source of innovation. Meanwhile, government support and
supplier also have indirectly impact on innovation through the mediating effect of
R&D strategy. The findings also showed that innovation significantly contributed to
firm performance, at the same time it plays vital mediator role in the model. It is
concluded that all the sources in the framework are important contributors to
innovation and firm performance except learning orientation. |
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