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Designing and Validating a Model for Measuring Sustainability of Overall Innovation Capability of Small and Medium-Sized Enterprises

Author

Listed:
  • Mohd Nizam Ab Rahman

    () (Department of Mechanical and Materials Engineering, Faculty of Engineering and Built Environment, Universiti Kebangsaan Malaysia, 43600 Bangi, Selangor, Malaysia)

  • Mahmood Doroodian

    () (Department of Mechanical and Materials Engineering, Faculty of Engineering and Built Environment, Universiti Kebangsaan Malaysia, 43600 Bangi, Selangor, Malaysia
    These authors contributed equally to this work.)

  • Yusniza Kamarulzaman

    () (Department of Marketing, Faculty of Business and Accountancy, University of Malaya, Kuala Lumpur 50603, Malaysia
    These authors contributed equally to this work.)

  • Norhamidi Muhamad

    () (Department of Mechanical and Materials Engineering, Faculty of Engineering and Built Environment, Universiti Kebangsaan Malaysia, 43600 Bangi, Selangor, Malaysia
    These authors contributed equally to this work.)

Abstract

The business environment is currently characterized by intensified competition at both the national and firm levels. Many studies have shown that innovation positively affect firms in enhancing their competitiveness. Innovation is a dynamic process that requires a continuous, evolving, and mastered management. Evaluating the sustainability of overall innovation capability of a business is a major means of determining how well this firm effectively and efficiently manages its innovation process. A psychometrically valid scale of evaluating the sustainability of overall innovation capability of a firm is still insufficient in the current innovation literature. Thus, this study developed a reliable and valid scale of measuring the sustainability of overall innovation capability construct. The unidimensionality, reliability, and several validity components of the developed scale were tested using the data collected from 175 small and medium-sized enterprises in Iran. A series of systematic statistical analyses were performed. Results of the reliability measures, exploratory and confirmatory factor analyses, and several components of validity tests strongly supported an eight-dimensional (8D) scale of measuring the sustainability of overall innovation capability construct. The dimensions of the scale were strategic management, supportive culture and structure, resource allocation, communication and networking, knowledge and technology management, idea management, project development, and commercialization capabilities.

Suggested Citation

  • Mohd Nizam Ab Rahman & Mahmood Doroodian & Yusniza Kamarulzaman & Norhamidi Muhamad, 2015. "Designing and Validating a Model for Measuring Sustainability of Overall Innovation Capability of Small and Medium-Sized Enterprises," Sustainability, MDPI, Open Access Journal, vol. 7(1), pages 1-26, January.
  • Handle: RePEc:gam:jsusta:v:7:y:2015:i:1:p:537-562:d:44268
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    References listed on IDEAS

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    1. repec:gam:jsusta:v:8:y:2016:i:5:p:464:d:69789 is not listed on IDEAS
    2. repec:gam:jsusta:v:9:y:2017:i:12:p:2157-:d:120057 is not listed on IDEAS
    3. Simona Catalina Stefan & Ion Popa & Cosmin Octavian Dobrin, 2016. "Towards a Model of Sustainable Competitiveness of Health Organizations," Sustainability, MDPI, Open Access Journal, vol. 8(5), pages 1-15, May.

    More about this item

    Keywords

    sustainability; overall innovation capability; small and medium-sized enterprises; automobile industry; measurement model;

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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