Towards an Innovation Culture: Enhancing Innovative Performance of Malaysian SMEs

Halim, Hasliza Abdul; Ahmad, Noor Hazlina; Ramayah, T.; Hanifah, Haniruzila; Taghizadeh, Seyedeh Khadijeh; Mohamad, Marini Nurbanum

doi:10.5901/ajis.2015.v4n2p85

Cited by 20 publications

(20 citation statements)

References 34 publications

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“…Malaysian SMEs are not achieving superior performances due to various challenges related to innovation, human capital development, and external business environment (Hooi & Ngui, 2014). Malaysia is an emerging country in which the SMEs are facing tremendous pressure and multidimensional challenges in the recent competition of the 21st century (Halim et al, 2015). Particularly, Malaysia is revealing slow performance along with the recent financial crisis due to slow improvement in their productivity of labour and is also becoming less attractive for investors (Halim et al, 2015).…”

Section: Importance Of Network Competence and Innovation For Malaysiamentioning

confidence: 99%

“…Malaysia is an emerging country in which the SMEs are facing tremendous pressure and multidimensional challenges in the recent competition of the 21st century (Halim et al, 2015). Particularly, Malaysia is revealing slow performance along with the recent financial crisis due to slow improvement in their productivity of labour and is also becoming less attractive for investors (Halim et al, 2015). Furthermore in 2010, the Global Competitiveness Index rank of Malaysia has dropped from 21st to 24th (Halim et al, 2015).…”

Section: Importance Of Network Competence and Innovation For Malaysiamentioning

confidence: 99%

“…Particularly, Malaysia is revealing slow performance along with the recent financial crisis due to slow improvement in their productivity of labour and is also becoming less attractive for investors (Halim et al, 2015). Furthermore in 2010, the Global Competitiveness Index rank of Malaysia has dropped from 21st to 24th (Halim et al, 2015). Moreover, the Malaysian SME sector is facing very high competition which compels the businesses to differentiate their services and products relative to their competitors and become more innovative (Halim et al, 2015).…”

Section: Importance Of Network Competence and Innovation For Malaysiamentioning

confidence: 99%

“…Furthermore in 2010, the Global Competitiveness Index rank of Malaysia has dropped from 21st to 24th (Halim et al, 2015). Moreover, the Malaysian SME sector is facing very high competition which compels the businesses to differentiate their services and products relative to their competitors and become more innovative (Halim et al, 2015). However, Malaysian SME sector is lacking the abilities to produce and differentiate services and products to compete with other developed countries.…”

Section: Importance Of Network Competence and Innovation For Malaysiamentioning

confidence: 99%

“…According to Halim et al (2015), the government of Malaysia has acknowledged SMEs as a key sector that catalyses the investment in this country. Moreover, Malaysian SME sector is viewed as a mean to transform country into a developed nation by 2020 (Halim et al, 2015). The Malaysian SMEs are more accountable to achieve superior performance (Lee & Wong, 2015).…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

Network Competence and Firm Performance: The Mediating Role of Entrepreneurial Innovativeness Among Malaysian Chinese Entrepreneurs of Wholesale Businesses

Sajilan¹,

Tehseen²

2019

AAMJ

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Entrepreneurial innovativeness has been considered as one of the crucial factors for any firm to achieve its superior performances. The aim of this paper is to analyse the mediating effect of entrepreneurial innovativeness in the relationship between network competence and firm performances including financial performance, non-financial performance, and business growth. Data were collected from 150 Malaysian Chinese wholesalers from the states of Selangor and Kuala Lumpur. Non-probability sampling technique was used to get the target respondents. PLS-SEM technique was used to analyse the data. The results revealed positive as well as significant mediating influence of entrepreneurial innovativeness in the relationship between network competence and firm performances. This study also provides future recommendations and managerial implications.

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Section: Importance Of Network Competence and Innovation For Malaysiamentioning

confidence: 99%

Section: Importance Of Network Competence and Innovation For Malaysiamentioning

confidence: 99%

Section: Importance Of Network Competence and Innovation For Malaysiamentioning

confidence: 99%

Section: Importance Of Network Competence and Innovation For Malaysiamentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Network Competence and Firm Performance: The Mediating Role of Entrepreneurial Innovativeness Among Malaysian Chinese Entrepreneurs of Wholesale Businesses

Sajilan¹,

Tehseen²

2019

AAMJ

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How Different Ownership Structures Perform in Industry 4.0: A Case of Malaysian Manufacturing SMEs

Umrani

Johl

2018

SHS Web Conf.

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Small and medium enterprises are vital components for economic growth globally. Similarly, the Malaysian manufacturing SMEs has contributed greatly in developing Malaysia’s economy. However, higher failure rate of the Malaysian SMEs is a great concern among researchers and government bodies. Currently, the industry 4.0 has changed the business environment globally. Therefore, this study attempts to investigate the relationship of ownership structures on firm performance with a mediating role of innovation. Baron and Kenny approach of mediation analysis was used on the sample of the Malaysian manufacturing SMEs. The results revealed that, majority SMEs prefer traditional business methods, which causes the higher failure rate in the industry.

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Can internal factors improve innovation performance via innovation culture in SMEs?

Hanifah

Halim

Ahmad

et al. 2019

BIJ

Self Cite

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Purpose Innovation performance is an issue that has a profound effect not only on Malaysian large companies but also among small and medium enterprises (SMEs) especially Bumiputera SMEs. The purpose of this paper is to explore the theoretical review of innovation culture pertaining to innovation performance by conducting a literature review on SME studies. The previous reference on innovation performance in Malaysian SMEs is still scarce, even though it is the key benchmark to measure firm performance. It has been demonstrated by the literature that innovation culture is significantly associated with innovation performance. Nonetheless, its effect on Bumiputera SMEs is still underexplored. Thus, this study examines the importance of internal factors (specific human capital and social capital) to innovation culture in driving innovation performance. Design/methodology/approach A questionnaire-based survey was conducted to gather data from Bumiputera SMEs. A total of 140 responses were obtained and analyses were carried out using Smart-PLS software to produce interesting findings. Findings The findings indicate that social capital (relational capital and social network) has a significant impact on innovation culture and indirectly impacts innovation performance. The findings also reveal that specific human capital does not have significant impact on innovation culture and innovation performance. This paper shows the importance of social capital and how it directly influences Bumiputera SMEs and innovation performance. This result will be encouraging to firms in other developing countries. Practical implications Although SMEs play an important role in economic development, their contribution to innovation is small and marginal. This study makes an important contribution by providing information to the Malaysian SMEs, especially those that are of Bumiputera status on the factors that could enhance innovation performance and nurture innovation culture in their organisations. Thus, it is hoped that this study will generate interest among researchers to attain more conclusive evidence about the practice of innovation culture among Malaysian SMEs. Originality/value This paper is one of the first to address the mediating effect of innovation culture on specific human capital, social capital and innovation performance.

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Towards an Innovation Culture: Enhancing Innovative Performance of Malaysian SMEs

Abstract: The ability to have high level of innovative performance is essential in competitive global market, particularly for small and medium-sizes enterprises (SMEs

Cited by 20 publications

References 34 publications

Network Competence and Firm Performance: The Mediating Role of Entrepreneurial Innovativeness Among Malaysian Chinese Entrepreneurs of Wholesale Businesses

Network Competence and Firm Performance: The Mediating Role of Entrepreneurial Innovativeness Among Malaysian Chinese Entrepreneurs of Wholesale Businesses

How Different Ownership Structures Perform in Industry 4.0: A Case of Malaysian Manufacturing SMEs

Can internal factors improve innovation performance via innovation culture in SMEs?

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