Determinants of Innovative Performance: The Case of an Emerging Country SMEs

Abstract

Purpose: Malaysia aspires to vie with other developed countries and achieve similar status shortly. Thus, to generate a more knowledge-intensive and innovation-driven economy is crucial for the country. Considering the significance that an Innovation Economy is designed from an amalgamation of knowledge, technology, entrepreneurship, and innovation to hasten productivity, which is the core of economic growth; this study analyzed the relationship of entrepreneurial attitude orientation (EAO), market orientation, and entrepreneurial competencies to competitive intelligence and its impact on the innovative performance of SMEs in Malaysia. Approach/Methodology/Design: This study adopted a cross-sectional research design and collected data from small, medium enterprises from 13 states and two federal territories of Malaysia. Findings: The findings revealed that market orientation has a positive impact on entrepreneurial competencies. It is also found that EAO constructs, in particular conceptual, strategic, and technical competencies, have a significant relationship with competitive intelligence and thereby have an impact on the Malaysian SMEs. Likewise, competitive intelligence positively influences the innovative performance. Practical Implications: Apart from contributing to the body of existing literature on innovative firm performance, the study gives a guideline to the SMEs, government agencies, and universities to create the database and designing their training and development programs to cultivate the sense of innovativeness among Malaysians regardless of age, race, and education background. Originality/Value: This study contributes by supporting that conceptual, strategic, and technical competencies have a significant relationship with competitive intelligence and is achievable to be used by SMEs.