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STRATEGIC ORIENTATIONS, THE MEDIATING EFFECT OF ABSORPTIVE CAPACITY AND INNOVATION: A STUDY AMONG MALAYSIAN MANUFACTURING SMEs

Author

Listed:
  • ABDULLAH AL MAMUN

    (Global Entrepreneurship Research and Innovation Centre (GERIC), Universiti Malaysia Kelantan, Malaysia)

  • SYED ALI FAZAL

    (Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Malaysia)

  • MUHAMMAD MOHIUDDIN

    (School of Business and Economics, Thompson Rivers University, Canada)

  • ZHAN SU

    (Faculty of Administrative Sciences, Laval University, Quebec, Canada)

Abstract

Strategic orientations (SOs) and absorptive capacity can significantly enhance innovation capacity in manufacturing Small and Medium Enterprises (SMEs). This study explores the relationship of SOs i.e., Market Orientations (MOs), Entrepreneurial Orientations (EOs) and Customer Orientations (COs) to absorptive capacity on the one hand, and to innovation on the other hand. The study also delves into the issue of how absorptive capacity mediates the effects of SOs on innovation in manufacturing SMEs from emerging countries’ perspective. This study uses a cross-sectional design and quantitative data collected through a structured interview of top managers from 360 manufacturing SMEs. The findings show that MO, EO and CO have positive and significant effects on innovation and that absorptive capacity partially mediates SOs’ effects on innovation.

Suggested Citation

  • Abdullah Al Mamun & Syed Ali Fazal & Muhammad Mohiuddin & Zhan Su, 2019. "STRATEGIC ORIENTATIONS, THE MEDIATING EFFECT OF ABSORPTIVE CAPACITY AND INNOVATION: A STUDY AMONG MALAYSIAN MANUFACTURING SMEs," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(02), pages 1-25, February.
    • Handle: RePEc:wsi:ijimxx:v:23:y:2019:i:02:n:s1363919619500166
    DOI: 10.1142/S1363919619500166
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    Cited by:

    1. Jianhong He & Hongmin Chen & Fu-Sheng Tsai, 2020. "Strategy Orientation, Innovation Capacity Endowment, and International R&D Intensity of Listed Companies in China," Sustainability, MDPI, vol. 12(1), pages 1-20, January.
    2. Shaohong Mu & Weixiu Li & Muhammad Mohiuddin, 2022. "The Impact of Low-Carbon City (LCC) on Elderly People’s Health: Evidence from a Natural Experiment in China," IJERPH, MDPI, vol. 19(15), pages 1-18, August.
    3. Qu, Yan & Mardani, Abbas, 2023. "Market orientation, technological opportunity, and new product innovation performance," Journal of Business Research, Elsevier, vol. 162(C).
    4. Azlina Mohamad & Adriana Mohd Rizal & Suzilawati Kamarudin & Musli Sahimi, 2022. "Exploring the Co-Creation of Small and Medium Enterprises, and Service Providers Enabled by Digital Interactive Platforms for Internationalization: A Case Study in Malaysia," Sustainability, MDPI, vol. 14(23), pages 1-24, December.

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