Abstract

Purpose This paper aims to examine the impacts of corporate entrepreneurship, national policies and supply chain collaboration on the innovativeness of manufacturers of light emitting diode (LED) in Malaysia. Design/methodology/approach The data were collected by using questionnaire survey from the manufacturers involved in the various echelon of the supply chain. The data collected were analyzed by using partial least square (PLS). Findings Corporate entrepreneurship plays a moderating role in the relationship between national policies, supply chain collaboration and innovativeness. Research limitations/implications This study is only focusing on the supply chain of LED in Malaysia; hence, the results may not be suitable to be generalized to wider populations. Practical implications The findings of this study could help the local companies to understand on how, as entrepreneurs, they could expand from small scale to contract manufacturers through enhancing innovativeness. This is important as failure to do so may cause them to be excluded from the global supply chain. Originality/value This study expands the existing literature by providing empirical evidence from the perspective of an emerging country, namely, Malaysia. It also attempts to close the gaps by examining the role of corporate entrepreneurship as the moderating variable.

Highlights

  • The use of light emitting diode (LED) as an alternative to conventional lighting has been emphasized as an effective way to promote greener environment and reduce the problems caused by climate change

  • This study evaluated the convergent validity of the measurement model by inspecting the factor loadings, composite reliability and average variance extracted (AVE)

  • Based on the cross-sectional data collected from the local LED manufacturers in Malaysia, this study has proven the importance of both external support and corporate entrepreneurship in generating innovations

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Summary

Introduction

The use of light emitting diode (LED) as an alternative to conventional lighting has been emphasized as an effective way to promote greener environment and reduce the problems caused by climate change. As the country controls the input resources required for LED production, it is not surprised that they could offer lower production costs of which have attracted the multinational firms (Levy et al, 2017) This situation has pressured its neighboring country, Malaysia to step out from its “comfort zones” and start to build up its innovative capabilities to sustain. They could not be the “follower” in the crowded market that has a quick declined of final price LEDs. They could not be the “follower” in the crowded market that has a quick declined of final price LEDs They need to be more innovative by providing “cheap” resources and able to offer distinct and unique products. This suggests that in a dynamic environment, the survival of SMEs are depending on their creativity and innovativeness (Ouedraogo and Koffi, 2018)

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