The Innovation-Performance Linkage: Empirical Evidence of Malaysian Manufacturing SMEs

Zakaria, Nazlina; Abdullah, Nor Azimah Chew; Yusoff, Rushami Zien

doi:10.15405/epsbs.2016.08.59

Cited by 9 publications

(10 citation statements)

References 20 publications

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“…Innovative behaviour is the implementation of ideas, which grants firms a competitive advantage and higher profitability (Roberts & Amit, 2003). It has been shown in previous studies that innovation and firm performance have a positive relationship (Rosli & Sidek, 2013;Zakaria, Abdullah, & Yusoff, 2016). Ramamoorthy, Flood, Slattery, and Sardessai (2005) found that employees are likely to perform their job efficiently when they are in an environment that encourages innovative behaviour, thereby contributing to better company performance.…”

Section: Hypotheses Development and Theorymentioning

confidence: 99%

The Corporate Conundrum: How to Blend People and Process towards Firm Performance?

Rathakrishnan

et al. 2021

RBGN

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Purpose -One of the challenges in the business world is maximising effectiveness and firm performance. This study proposes that the right blend of people (with openness to change and self-transcendence values) and process (effectuation) would result in innovative behaviour and firm performance.Theoretical framework -The effectuation process has been found to be useful in promoting innovativeness, especially among small firms whose resources are scarce. This relationship is also true in large firms, although these have more resources and operate in a relatively stable environment.Design/methodology/approach -Using a snowball sampling approach, a total of 206 completed questionnaires were collected online from employees involved in decision making and innovative work processes in multinational companies in Selangor, Malaysia. PLS-SEM was used to analyse the data.Findings -The right people (who are open to change or self-transcendent) blended with the right process (effectuation) were found to positively predict innovative behaviour and firm performance. Effectuation and innovative behaviour also mediated the relationships between individual values and firm performance, suggesting that people and process should coexist to enhance firm performance.Research Practical & Social implications -Effectuation is scarcely practised in large firms. Therefore, we suggest that large firms encourage the use of effectuation through training. As the practice is better received among individuals who are open to change and self-transcendent, these values could also be used as hiring criteria.Originality/value -This study contributes to the literature by analysing the roles of people and process in optimising firm performance, and identifying effectuation and innovative behaviour as mechanisms that link individual values to firm performance.

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Section: Hypotheses Development and Theorymentioning

confidence: 99%

The Corporate Conundrum: How to Blend People and Process towards Firm Performance?

Rathakrishnan

et al. 2021

RBGN

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“…There are empirical evidences in existing literature that prove that performance relative to competitors is also a key measurement of business success for SMEs (Ahmad, 2007;Bocij, 2018). Moreover, Zakariaa et al (2016) have also used performance relative to competitors to access business success along with financial performance, non-financial performance, and business growth.…”

Section: Perceived Performance Relative To Competitorsmentioning

confidence: 99%

“…On the other hand, few researchers have focused on non-financial aspects (Haber & Reichel, 2005;Hoque, 2004). Moreover, some studies have considered growth of company as the parameter of business success (Ahmad, 2007) and others have deemed performance relative to competitors as determinant factor for business success (Zakariaa et al, 2016;Nzimande & Padayachee 2017).…”

Section: Introductionmentioning

confidence: 99%

A Conceptual Study on Contingent Impact of External Integration on Innovation Sme Business Success Relationship

Khairuddin¹,

Qureshi²,

Wahid³

et al. 2019

IJFR

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It is widely acknowledged in the existing studies that innovation has the critical role in firms’ performances. Moreover, it has been acknowledged that innovative activities are the main sources of growth, survivability, and success for SMEs firms. In the setting of entrepreneurship, earlier studies have claimed that innovation is the integrated element of entrepreneurship. However, the existing studies have also revealed inconsistent findings regarding the impacts of innovation on firm’s performances under various contexts. Thus, this study claims that there should be a moderator to facilitate the relationship between innovations and firm’s performances. Therefore, this study has introduced the external integration as a moderator to improve the relationship between types of innovations and firm’s performances. The main objective of the study is to identify the relationship between various types of innovations including process innovation, product innovation, marketing innovation, and organizational innovations and business success operationalized with four dimensions including perceived financial performance, perceived non-financial performance, perceived business growth, and perceived performance relative to competitors) under the moderating role of external integration. Three theories namely Strategic Contingency Theory (SCT), Resource Dependence Theory (RDT), and Resource Based View (RBV) have been integrated to develop the proposed theoretical framework. The recent literature has been taken to gather the information about the variables that helped current study to develop a theoretical frame work and then eight propositions have been developed based on proposed theoretical framework. The external integration as a moderator between innovations and business success is the main theoretical contribution of this study. Furthermore, limitations have been stated at the end and recommendations have been made for future research.

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“…In fact, SMEs can transform to be better in enhancing organization, management and production capabilities; improving productivity and efficiency; enabling better quality and monitoring; and developing innovators and producers of IR 4.0 technologies (MITI, 2018). However, SMEs in Malaysia are not yet reaching the full potential in improving the performance (Zakaria et al, 2016). Therefore, it is important to understand the drivers that can assist SMEs to fully contribute to the economic performance especially in innovation performance.…”

Section: Introductionmentioning

confidence: 99%

The Need Of Innovation Among Malaysian SMEs

Teh¹,

Kee²

2020

European Proceedings of Social and Behavioural Sciences

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The Innovation-Performance Linkage: Empirical Evidence of Malaysian Manufacturing SMEs

Cited by 9 publications

References 20 publications

The Corporate Conundrum: How to Blend People and Process towards Firm Performance?

The Corporate Conundrum: How to Blend People and Process towards Firm Performance?

A Conceptual Study on Contingent Impact of External Integration on Innovation Sme Business Success Relationship

The Need Of Innovation Among Malaysian SMEs

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