The Mediating Effect of Innovation on Entrepreneurial Competencies and Business Success in Malaysian SMEs

Umar, Azmi; Omar, Che Mohd Zulkifli Che; Hamzah, Mohd Sahandri Gani; Hashim, Azizah

doi:10.5539/ibr.v11n8p142

Cited by 16 publications

(19 citation statements)

References 36 publications

(39 reference statements)

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…The results of this study certainly do not support a previous research conducted by Umar et al (2018) which stated that process innovation and product innovation can partially mediate the influence of entrepreneurial competence on financial and non-financial business performance. This difference in results was probably due to previous research was carried out in normal conditions, while this study was conducted during the COVID-19 pandemic.…”

Section: The Influence Of Competence On Fashion Business Performance In Surabaya With Work Innovation As a Mediating Variable During The contrasting

confidence: 99%

“…Work innovation is defined as an effort made by utilizing all available resources to develop ideas, solve problems in order to survive, and create new products. Previous study was conducted by Umar, et al (2018) on 407 business owners as well as business managers in fields of manufacturing, services, and others in Malaysia. The study found that process innovation and product innovation can partially mediate the effect of entrepreneurial competence on financial and nonfinancial business performance.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Fashion Business Performance In Surabaya

Agustina

Dewi

2021

jbmp

View full text Add to dashboard Cite

The COVID-19 pandemic, which resulted in social and physical restrictions, has consequences for the sustainability of the fashion business. This industry is included in the top 5 priority scales for MSME development in Surabaya. Therefore, the existence of the fashion industry is very important for the economy of Surabaya. Related to this, fashion business owners in Surabaya are required to be able to maintain their business through work innovation. This study aims to analyze the direct or indirect influences of competence, the use of information technology, and self-efficacy on business performance through work innovation as a mediating variable for fashion entrepreneurs in Surabaya. This research is a quantitative involving 69 fashion entrepreneurs who are supported by the Surabaya Trade Office. Data distribution was carried out using online questionnaires from November to December 2020. Hypothesis testing was carried out by the path analysis. The results of this study include: competence and self-efficacy are proven to have a positive influence on business performance; the use of information technology is proven to not influence business performance; work innovation cannot mediate the influence of competence on business performance; work innovation is proven to fully mediate the influence of the information technology usage on business performance; work innovation is proven to mediate some of the self-efficacy influence on business performance.

show abstract

Section: The Influence Of Competence On Fashion Business Performance In Surabaya With Work Innovation As a Mediating Variable During The contrasting

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Fashion Business Performance In Surabaya

Agustina

Dewi

2021

jbmp

View full text Add to dashboard Cite

show abstract

“…In this regard, the greater level of the identified competencies, the higher level of social innovation development of the enterprises. Umar et al (2018) also reveals the study findings that exhibited a positive relationship between entrepreneurial competencies, innovation development and business success of small and medium enterprises (SMEs) in Malaysia. This is also consistent with a study of Varis and Littunen (2010) that demonstrated the positive association between personal competencies in terms of information-seeking and a firm's innovation development and growth sustainability.…”

Section: Discussionsupporting

confidence: 54%

Social innovation: relationships with social and human capitals, entrepreneurial competencies and growth of social enterprises in a developing country context

Pansuwong

Photchanachan

Thechatakerng

2022

SEJ

View full text Add to dashboard Cite

Purpose This study aims to examine capital and competency variables – human capital, social capital and personal entrepreneurial competencies – in relation to social innovation development and growth of social enterprises in a developing country with an emerging social enterprise sector: Thailand. Design/methodology/approach A hypothetical-deductive approach was adopted and a quantitative survey by questionnaire was applied to collect data from owners/top management of 103 social enterprises in Thailand. The data were used to test hypotheses and further analysed using partial least squares technique. Findings The results revealed that there were positive direct and indirect (mediating) relationships between human capital, social capital, personal entrepreneurial competencies and social innovation development and growth of Thai social enterprises. Skills and training were key determinants of human capital, whereas social interaction, trust, social identification and shared knowledge were key determinants of social capital which affected social innovation development. Goal orientation, information seeking, opportunity seeking, persuasion and self-confidence were key determinants of entrepreneurial competencies that also affected social innovation development. This study ultimately revealed the mediating effects of social innovation development on the relationships between capital and competency variables and the growth of social enterprises. Originality/value This study fills the research gap, from the theoretical perspective, by identifying capital and competency variables as well as their additional determinants that are divergent from previous literature, which can potentially influence the social innovation development of social enterprises, and where only limited research is evidenced. From an empirical perspective, this study attempts to investigate the associations between these variables and growth indicators in the context of social enterprises in a developing nation, where its sector is in its infancy. This study further helps to clarify the existence of the direct and indirect (mediating) effects of social innovation development in the context of the economic and social accomplishments of social enterprises.

show abstract

“…Sa'ari, Adenan, Hashim, and Jamaludin (2013) confirmed that entrepreneurial competencies have led to high performance in the organisation and gained competitive advantages over the competitors. This is seconded by recent study done by Umar et al (2018) urged that entrepreneurial competencies significantly affect the performance in Malaysian SMEs as well the innovation practice in the firm. Another research conducted by Mitchelmore and Rowley (2010), claimed that entrepreneurial competencies can range from personality traits and individual motivations to specific knowledge and the skills.…”

Section: Introductionmentioning

confidence: 95%

Determinants of Entrepreneurial Competencies Development in Small and Medium Enterprises

Umar¹,

Cob²,

Omar³

et al. 2018

IJBM

Self Cite

View full text Add to dashboard Cite

This paper is to investigate the impact of key factors that influence the development of entrepreneurial competencies in Malaysian SMEs, both in the manufacturing sector and services sector. This is vital because the economy of Malaysia is partially depending on the contribution of SMEs and the roles played by SMEs. The statical sample population of this research includes 407 owners and manager involved in SMEs. For data collection, a standard questionnaire using seven-point Likert scale and 72 items were used to evaluate 12 entrepreneurial competencies and four items that influence the development of entrepreneurial competencies. Data were analyzed using SPSS version 21 and SEM-Amos version 21. The results confirmed, education was significantly affecting the development of entrepreneurial competencies among entrepreneurs, while the training before business set-up, training after business set-up and work experience have no effect on the development of entrepreneurial competencies. The results contributed to the development of theoretical contribution and knowledge base, as well as offering results that will be of interest to research and policy communities. The results are limited to quantitative, using cross-sectional data. The direction for future research are also suggested.

show abstract

The Mediating Effect of Innovation on Entrepreneurial Competencies and Business Success in Malaysian SMEs

Cited by 16 publications

References 36 publications

Fashion Business Performance In Surabaya

Fashion Business Performance In Surabaya

Social innovation: relationships with social and human capitals, entrepreneurial competencies and growth of social enterprises in a developing country context

Determinants of Entrepreneurial Competencies Development in Small and Medium Enterprises

Contact Info

Product

Resources

About