IDEAS home Printed from https://ideas.repec.org/a/ibn/ijbmjn/v13y2021i10p161.html
   My bibliography  Save this article

Evaluation of Small and Medium Sized Enterprise Innovation Performance Growth in Malaysia

Author

Listed:
  • Rashidah Binti Mohamad Ibrahim
  • Abasiti Victor Abraham
  • Wan Abd Aziz Bin Wan Mohd Amin

Abstract

Innovation is defined as a natural renewable source accessible to all restricted only by human effort. It is also affirmed that innovation create a positive impact of the organization capability. Based on the current situation in Malaysia, it’s established that SME’s has been undergoing challenges that have reduce their capability, sustainability and growth. These issues have created a negative impact of the SME’s and also in the Malaysia economy. Hence, for SME’s to be strengthen and to overcome their problems, there should be a drastic change or modification to be experienced in Malaysia SME’s which will enhance their capability towards innovation performance growth. As such this study investigates the innovation practices amongst the SMEs, in order to enhance their business growth performance in the Malaysian market. Data from a sample of 413 respondents from SMEs in the construction, service and manufacturing sectors was collected by means of a structured questionnaire. The sampling technique/procedure used was the stratified random sampling in other to analyze the hypothesis model. The result of the findings indicated that there is a positive relationship between organization culture and human capital towards innovation performance growth with organizational culture having the strongest coefficient. The findings as well enlighten small and medium sized firms as well as policy makers that innovation is an essential tool in the present day business doings. In conclusion, further studies should examine how small and medium sized firms can make a choice from a range of possibilities for innovation sources before they carry out the real innovation.

Suggested Citation

  • Rashidah Binti Mohamad Ibrahim & Abasiti Victor Abraham & Wan Abd Aziz Bin Wan Mohd Amin, 2021. "Evaluation of Small and Medium Sized Enterprise Innovation Performance Growth in Malaysia," International Journal of Business and Management, Canadian Center of Science and Education, vol. 13(10), pages 161-161, July.
    • Handle: RePEc:ibn:ijbmjn:v:13:y:2021:i:10:p:161
    as

    Download full text from publisher

    File URL: http://www.ccsenet.org/journal/index.php/ijbm/article/download/0/0/36782/36820
    Download Restriction: no
    File URL: http://www.ccsenet.org/journal/index.php/ijbm/article/view/0/36782
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Andreas Rauch & Johan Wiklund & G.T. Lumpkin & Michael Frese, 2009. "Entrepreneurial Orientation and Business Performance: An Assessment of past Research and Suggestions for the Future," Entrepreneurship Theory and Practice, , vol. 33(3), pages 761-787, May.
    2. Minna Saunila & Sanna Pekkola & Juhani Ukko, 2014. "The relationship between innovation capability and performance," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 63(2), pages 234-249, January.
    3. Wai Wong & Noor Hazlina Ahmad & Aizzat Mohd. Nasurdin & Marini Mohamad, 2014. "The impact of external environmental on business process management and organizational performance," Service Business, Springer;Pan-Pacific Business Association, vol. 8(4), pages 559-586, December.
    4. Patrick Kreiser & Louis Marino & Donald Kuratko & K. Weaver, 2013. "Disaggregating entrepreneurial orientation: the non-linear impact of innovativeness, proactiveness and risk-taking on SME performance," Small Business Economics, Springer, vol. 40(2), pages 273-291, February.
    5. Nur Naha Abu Mansor Author_Email: nurnaha@utm.my & Farhad Sanjari Fard & Azzman Mohamed, 2011. "The Critical Success Factors Of Performance Measurement For Malaysian Smes In Manufacturing Sectors: A Proposed Framework," 2nd International Conference on Business and Economic Research (2nd ICBER 2011) Proceeding 2011-520, Conference Master Resources.
    6. Hakikur Rahman & Isabel Ramos, 2014. "Open Innovation in SMEs: Prospects and Challenges," Progress in IS, in: Jan Devos & Hendrik Landeghem & Dirk Deschoolmeester (ed.), Information Systems for Small and Medium-sized Enterprises, edition 127, pages 313-335, Springer.
    7. Syed Shah Alam & Abul Bashar Bhuiyan & Fauzi Mohd Jani & Che Aniza Che Wel, 2016. "The impact of innovation on growth and performance of processed food SMEs in Malaysia," International Journal of Entrepreneurship and Innovation Management, Inderscience Enterprises Ltd, vol. 20(1/2), pages 61-79.
    8. Patrick M. Kreiser & Louis D. Marino & Pat Dickson & K. Mark Weaver, 2010. "Cultural Influences on Entrepreneurial Orientation: The Impact of National Culture on Risk Taking and Proactiveness in SMEs," Entrepreneurship Theory and Practice, , vol. 34(5), pages 959-984, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andreas Engelen & Christoph Neumann & Christian Schwens, 2015. "“Of Course I Can†: The Effect of CEO Overconfidence on Entrepreneurially Oriented Firms," Entrepreneurship Theory and Practice, , vol. 39(5), pages 1137-1160, September.
    2. Insoo Cho & Peter F. Orazem, 2021. "How endogenous risk preferences and sample selection affect analysis of firm survival," Small Business Economics, Springer, vol. 56(4), pages 1309-1332, April.
    3. Michael Stuetzer & David B. Audretsch & Martin Obschonka & Samuel D. Gosling & Peter J. Rentfrow & Jeff Potter, 2018. "Entrepreneurship culture, knowledge spillovers and the growth of regions," Regional Studies, Taylor & Francis Journals, vol. 52(5), pages 608-618, May.
    4. Michael Sheppard, 2020. "The relationship between discretionary slack and growth in small firms," International Entrepreneurship and Management Journal, Springer, vol. 16(1), pages 195-219, March.
    5. Felipe Hernández-Perlines & Manuel Alejandro Ibarra Cisneros, 2018. "The Role of Environment in Sustainable Entrepreneurial Orientation. The Case of Family Firms," Sustainability, MDPI, vol. 10(6), pages 1-16, June.
    6. Erkko Autio & Saurav Pathak & Karl Wennberg, 2013. "Consequences of cultural practices for entrepreneurial behaviors," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 44(4), pages 334-362, May.
    7. Homa Pirhadi & Alireza Feyzbakhsh, 2021. "Corporate entrepreneurship, its antecedents, process, and consequences: A systematic review and suggestion for future research," Journal of International Entrepreneurship, Springer, vol. 19(2), pages 196-222, June.
    8. Mateusz Codogni & Joanna Duda & Rafal Kusy, 2017. "Entrepreneurial orientation in high-tech and low-tech SMEs in Malopolska region," Managerial Economics, AGH University of Science and Technology, Faculty of Management, vol. 18(1), pages 7-22.
    9. Jelica Rastoka & Saša Petković & Dragana Radicic, 2022. "Impact of Entrepreneurship on the Quality of Public Health Sector Institutions and Policies," IJERPH, MDPI, vol. 19(3), pages 1-25, January.
    10. Gupta, Deepika R. & Veliyath, Rajaram & George, Rejie, 2018. "Influence of national culture on IPO activity," Journal of Business Research, Elsevier, vol. 90(C), pages 226-246.
    11. Patrick Kreiser & Louis Marino & Donald Kuratko & K. Weaver, 2013. "Disaggregating entrepreneurial orientation: the non-linear impact of innovativeness, proactiveness and risk-taking on SME performance," Small Business Economics, Springer, vol. 40(2), pages 273-291, February.
    12. Jeewhan Yoon & George T Solomon, 2017. "A curvilinear relationship between entrepreneurial orientation and firm performance: The moderating role of employees’ psychological safety," International Entrepreneurship and Management Journal, Springer, vol. 13(4), pages 1139-1156, December.
    13. Bekir Emre KurtulmuÅŸ & Alev Katrinli & Bernadette Warner, 2020. "International Entrepreneurial Orientation and Performance of SMEs: The Mediating Role of Informal Institutional Framework," SAGE Open, , vol. 10(4), pages 21582440209, December.
    14. Schneider, Markus & Engelen, Andreas, 2015. "Enemy or friend? The cultural impact of cross-functional behavior on the EO–performance link," Journal of World Business, Elsevier, vol. 50(3), pages 439-453.
    15. Marisa Lages & Carla S. Marques & João J. M. Ferreira & Fernando A. F. Ferreira, 2017. "Intrapreneurship and firm entrepreneurial orientation: insights from the health care service industry," International Entrepreneurship and Management Journal, Springer, vol. 13(3), pages 837-854, September.
    16. Dai, Li & Maksimov, Vladislav & Gilbert, Brett Anitra & Fernhaber, Stephanie A., 2014. "Entrepreneurial orientation and international scope: The differential roles of innovativeness, proactiveness, and risk-taking," Journal of Business Venturing, Elsevier, vol. 29(4), pages 511-524.
    17. Hernández-Perlines, Felipe, 2016. "Entrepreneurial orientation in hotel industry: Multi-group analysis of quality certification," Journal of Business Research, Elsevier, vol. 69(10), pages 4714-4724.
    18. Theresia Gunawan & Jojo Jacob & Geert Duysters, 2016. "Network ties and entrepreneurial orientation: Innovative performance of SMEs in a developing country," International Entrepreneurship and Management Journal, Springer, vol. 12(2), pages 575-599, June.
    19. Laura H. Middermann & Lubna Rashid, 2019. "Cross-Country Differences in Entrepreneurial Internationalization Tendencies: Evidence from Germany and Pakistan," Administrative Sciences, MDPI, vol. 9(3), pages 1-17, July.
    20. Basco, Rodrigo & Hernández-Perlines, Felipe & Rodríguez-García, María, 2020. "The effect of entrepreneurial orientation on firm performance: A multigroup analysis comparing China, Mexico, and Spain," Journal of Business Research, Elsevier, vol. 113(C), pages 409-421.

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibn:ijbmjn:v:13:y:2021:i:10:p:161. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Canadian Center of Science and Education (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.