Innovativeness and Performance of Small and Medium Enterprises: Malaysian Perspectives

By Mohd Faiz Hilmi, T. Ramayah and Yanti Mustapha.

Published by The Organization Collection

Format Price
Article: Print $US10.00
Article: Electronic $US5.00

The year 2010 has been made as the Year of Innovation aims to celebrate and encourage innovation among Malaysians. Innovation is recognized as the next phase of development towards a developed country status. Innovation creates jobs and boost national competitiveness. Innovation is a central issue for organizations in the new global economy. It is a potential mechanism towards competitive advantages and the key to sustainable growth. Small and Medium Enterprises (SMEs) make a valuable economic and social contribution because of their innovative capacities. SMEs are the engine of growth in achieving the developed nation status. Malaysian policy-makers recognized the importance of innovation and SMEs to the competitiveness of national economies. This study is interested in how Malaysian SMEs achieved superior performance by means of innovativeness. This study, therefore, investigate innovativeness as the factor in improving the performance of SMEs in Malaysia. This study answered the following; 1) What is the level of innovativeness of Malaysian SMEs?; and 2) Is there a correlation between innovativeness and performance of Malaysian SMEs? The results indicate that innovativeness does correlate with organizational performance. Since innovativeness has significant positive correlation with organizational performance, SMEs need to design and implement cultures that will nurture innovativeness to grasp its benefits. The findings provide an understanding based on the multiple dimensions of innovativeness and can be used to develop targeted programs aimed at enhancing Malaysian SMEs.

Keywords: Growth & Innovation, Innovativeness, Small and Medium Enterprises

International Journal of Knowledge, Culture and Change Management, Volume 10, Issue 12, pp.105-114. Article: Print (Spiral Bound). Article: Electronic (PDF File; 632.922KB).

Dr. Mohd Faiz Hilmi

Senior Lecturer, Management Section, School of Distance Education, Universiti Sains Malaysia, Gelugor, Penang, Malaysia

Mohd Faiz Hilmi is currently attached to the School of Distance Education, Universiti Sains Malaysia. He received his DBA from Universiti Sains Malaysia, MBA from Universiti Utara Malaysia and a B.A. degree from Washington State University. Prior to joining Universiti Sains Malaysia, he had 11 years of multi-functional accomplishments including as IT engineer, IT project/support coordinator, product data specialist and configuration manager in various multinationals corporations. Companies and organizations he has been working with include MCMS, Advanced Micro Devices, Celestica, Intel and Motorola. His areas of research interest include Innovation and Technology Management.

Prof. T. Ramayah

Associate Professor, School of Management, Universiti Sains Malaysia, Penang, Penang, Malaysia

T. Ramayah has an MBA from Universiti Sains Malaysia (USM). Currently he is an Associate Professor at the School of Management in USM. He teaches mainly courses in Research Methodology and Business Statistics. Apart from teaching, he is an avid researcher, especially in the areas of technology management and adoption in business and education. Thus far, he has published in several journals such as Information Development, Direct Marketing, WSEAS Transactions on Information Science & Applications, International Journal of Learning, The International Journal of Knowledge, Culture and Change Management, Asian Journal of Information Technology (AJIT), International Journal of Services and Technology Management (IJSTM), International Journal of Business Information Systems (IJBIS), Journal of Project Management (JoPM), Management Research News (MRN), International Journal of Information and Operations Management Education (IJIOME), International Journal of Services and Operations Management (IJSOM), Engineering, Construction and Architectural Management (ECAM) and North American Journal of Psychology.. Having his contributions in research acknowledged, he is constantly invited to serve on the editorial boards and program committees of several international journals and conferences of repute. He enjoys spending time with his wife, Sally and their children, and travelling to new places.

Yanti Mustapha

Lecturer, Department of Business Management, UiTM Kedah, Merbuk, Kedah, Malaysia


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