Innovation and firm performance: Evidence from Malaysian SMEs (original) (raw)
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Empirical review on innovation-performance linkage in Malaysian manufacturing SMEs
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SMEs have demonstrated significant impact on the overall economic performance of Malaysia. Nevertheless, it has not reached their full potential. It is vital to comprehend its drivers in order to improve the production of SMEs. Previous studies discovered that organizations with better innovative behavior often instigate changes which could influence organizational’s performance. Hence, this study seeks to explore the relationship between organizational innovation and organizational performance of Malaysian SMEs. For that reason, this article does not only analyze the concept of organizational innovation and organizational performance, but also the linkage between both concepts at the end of the findings. Data from SMEs in manufacturing sectors were collected. Data from the respondents were assembled using a total of 321 self-administered questionnaires. The hypotheses were tested using Smart PLS 2.0. As a conclusion, a positive relationship was displayed between organizational in...
Role of Innovation in SMEs Performance: A Case of Malaysian SMEs
Innovation has been termed as the most crucial of the elements in today's globalized and competitive environment. Companies focusing on innovation achieve not only competitiveness but also are able to sustain them for a longer period of time. The present study is conducted in the context of Malaysian SMEs using a sample of 870 SMEs from both manufacturing and services sectors. These SMEs have been found engaged in variety of businesses and to some extent have also been involved in the process of innovation.
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Nowadays, small and medium-sized enterprises (SMEs) play an important role in contributing to the country's economic growth. Overall, the contribution of SMEs to the Gross Domestic Product (GDP) are increased year by year. However, there are few studies showed that SMEs business performance are still inconsistent and need improvement. Therefore, the Malaysian government through the budget of 2016, has been working to ensure business sustainability, and also support the development and long-term growth of the SMEs. This study aims to investigate the relationship between innovation and business performance among SMEs in Malaysia. A sample of 155 SMEs data has successfully collected through a survey. The collected data was analysed by using the Multiple Regression Analysis. The findings revealed that innovation had a significant positive effect on the SMEs firm business performance. The findings has strengthen the theory of resource-based view (RBV) by filling in the scarcity of r...
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The purpose of this study is to examine and analyze product innovation and process innovation as an indicator of innovation that affects the performance of small and medium enterprises (SMEs). Government policy as a moderator of the effect of innovation on performance. This research was conducted during the COVID-19 pandemic. The population in this study are SMEs that produce clothes and t-shirts in Indonesia. Data collection is done through questionnaires and direct interviews. Online questionnaires were given to the managers and business owners. The sampling technique used is purposive sampling based on certain conditions of the research object, and in this study 100 business units were selected. The result of loading factor correlation between indicator and latent construct is significant. Hypothesis which explored the linear relationship between the construct variables was tested. Structural Equation Modeling (SEM) was used. The results of this study indicate that there is a pos...
2016
Small and medium enterprises (SMEs) have demonstrated significant impact on the overall economic performance of Malaysia. Nevertheless, it has not reached their full potential. It is vital to comprehend its drivers in order to improve the production of SMEs. Previous studies discovered that organizations with better innovative behavior often instigate changes which could influence organizational’s performance. Hence, this study seeks to explore the relationship between organizational innovation (OI) and organizational performance (OP) of Malaysian SMEs. For that reason, this article does not only analyze the concept of OI and OP, but also the linkage between both concepts at the end of the findings. Data from SMEs in manufacturing sectors were collected. Data from the respondents were assembled using a total of 321 self-administered questionnaires. The hypotheses were tested using Smart PLS 2.0. As a conclusion, a positive relationship was displayed between OI and OP. This study wil...
The main objective of the current study is to examine the impact of the innovation types such as product, process and market innovation on the performance of the Indonesian SMEs. Additionally, the study has also examined the mediating role of organizational innovativeness. The researcher has employed the statistical tools and procedures to analyze the data which was obtained from the self-administered questionnaires. For data analyzation in the current study we have used the mixture of inferential and statistical tools. For getting the complete questionnaires all efforts had provided positive result. Total 315 questionnaires were distributed, whereas 265 were retrieved. Out of 265 questioners 10 were discard because of having missing information, while 255 were used for further analysis. So, the response rate was 80%. The results show that the performance of the firm is positively influenced by these four dimensions. The structural linkage among innovative skills (Organizational innovation, Product innovation, Marketing innovation, Process innovation) significantly and positively influenced the performance of SMEs which is determined in a single model. Practically, the innovative procedures for the production of high-quality goods and services, with new or advanced technology obviously enhances the performance of SMEs firm. For a long period of a time company aims for innovation and innovative technology that plays a vital role in high and competitive profit.
2020
The purpose of this study is to analyze the effect of innovation on SME business performance, which is motivated by the important role of SMEs in national economic growth should be accompanied by a significant increase in business performance. But in reality SME competitiveness is still low in the global market due to low innovation. This study uses an explanatory quantitative survey method. There are 231,181 SMEs in the manufacturing industry sector in West Java, Indonesia as a population with a sample of 346 respondents. Data collection uses a Likert scale 1-5 questionnaire. Data analysis using SEM. The analysis shows that innovation has a positive and significant effect on business performance. The implication of this research is that the performance of SME businesses can be improved through increased product innovation, process innovation, and distribution innovation.
The Effect of Innovation on Increasing Business Performance of Smes in Indonesia
WSEAS TRANSACTIONS ON BUSINESS AND ECONOMICS, 2020
The purpose of this study is to analyze the effect of innovation on SME business performance, which is motivated by the important role of SMEs in national economic growth should be accompanied by a significant increase in business performance. But in reality SME competitiveness is still low in the global market due to low innovation. This study uses an explanatory quantitative survey method. There are 231,181 SMEs in the manufacturing industry sector in West Java, Indonesia as a population with a sample of 346 respondents. Data collection uses a Likert scale 1-5 questionnaire. Data analysis using SEM. The analysis shows that innovation has a positive and significant effect on business performance. The implication of this research is that the performance of SME businesses can be improved through increased product innovation, process innovation, and distribution innovation.
Innovation Capacity and Performance of Malaysian SMES
International Journal of Academic Research in Business and Social Sciences
The study is designed to examine and analyze the effects of innovation capacity (IC) on firm performance (FP) of Small Medium Enterprises (SMEs) within the service industry, located within the State of Selangor, Malaysia. The populations of the respondents are owner managers of 150 SME firms, constituting 20% response rate. Partial Least Squares Structural Equation Modeling (PLS-SEM) is utilized to examine the relationship. The evidence shows that IC has a significant and positive impact on overall FP. Firms' that emphasizes innovativeness in all aspects indicates' an improved overall performance. The study contributes to existing understanding highlighting important aspects of innovation within an organization that affects overall performance and ensures sustainability and growth.