The Effect of Entrepreneurial Orientation, Innovation Capability and Knowledge Creation on Firm Performance: A Perspective on Small Scale Entrepreneurs

Abstract

The purpose of this study is to examine the predictive effects of entrepreneurial orientation, innovation capability and knowledge creation on firm performance. Data for the study was collected using a cross-sectional quantitative survey. A total of 188 useable responses were collected from SMEs in Malaysia. The findings show that entrepreneurial orientation, innovation capability and knowledge creation have a positive impact on firm performance. Furthermore, the impacts of entrepreneurial orientation and innovation capability on knowledge creation are also examined in this study. The findings suggest that innovation capability is positively related to knowledge creation, but entrepreneurial orientation does not have a significant impact on knowledge creation. This study makes a considerable contribution to the existing literature on entrepreneurial orientation, innovation capability and knowledge creation of SMEs, particularly in regards to explaining the performance of Malaysian SMEs.

How Entrepreneurial Orientation Stimulates Different Types of Knowledge in the Internationalisation Process of Firms from Poland?

“…Amplification of the Mejri and Umemoto (2010) model with the aspect of entrepreneurial orientation is justified indirectly in studies by Omar, Aris and Nazri (2016), Åkerman (2015), Prashantham (2005), Fletcher (2004), Wiklund and Shepherd (2003). These authors proved positive influence of entrepreneurial orientation and knowledge on the firm's functioning but they did not take into account the international dimension directly.…”

Innovation as Intervening Variable between Entrepreneurial Orientation and Learning Orientation with Company Performance on MSEs in Ambon City

“…al., 2013;Amen, 2015;Vasconcelos, et. al., 2016;Nur, et al, 2014;Omar, et al, 2016, Setayanti, et. al., 2013.…”

“…al., 2013); Amin, 2015; Vasconcelos, et. al., 206;Nur, et al, 2014;Omar, et al, 2016, Setayanti, et. al., 2013 This means that companies that adopt a lot of entrepreneurial orientation are better at achieving performance compared to companies that are lack of learning orientation.…”

“…This is in line with the findings of Vasconcelos, et. al., 2016, Omar, et. al., 2016, or Setyanti, et al, 2015 which states that directly entrepreneurial orientation affects business performance.…”

SMEs’ Export Performance: The Effect of Learning Orientation and Innovativeness

“…Innovativeness is significantly related to the growth rate of a firm (Moreno & Casillas 2008) and intensifies the activities of firms in existing foreign markets or increases the potential of firms to enter into new market (Bortoluzzi et al 2018) as a means of leveraging its ability. The lack of innovativeness is often associated with failures among firms (Omar, Aris & Nazri 2016). Along this line, innovativeness will likely to be a strategic means by which firms deal with changes in the internal and external environment (Rhee et al 2010).…”