Abstract
This study explores the relationship between Internet Marketing Orientation, Market Orientation, Learning Orientation, Innovation Capabilities and Performance. The study also investigates the role of Internet Marketing Orientation integration in the linkage between Market Orientation-Innovativeness and Learning Orientation-Innovativeness. From an analysis of usable survey data from 101 Bumiputera SMEs-Exporters, three dimensions of Market Orientation (Customer Focus, Inter-Functional Coordination, Information Dissemination), two dimensions of Learning Orientation (Shared Knowledge, and Vision and Commitment to Learning), one dimension of Internet Marketing Orientation and one dimension of Innovation Capabilities and Performance are extracted from the factor analysis results. The results of regression analysis show that Customer Focus, Shared Knowledge and Vision, and Internet Marketing Orientation directly influenced SMEs’ Innovation Capabilities. However, Internet Marketing Orientation is more influential in developing innovation capabilities among SMEs compared to others. While, Shared Knowledge and Vision is the crucial factor in enhancing the business performance among SME (exporters). The relationship among a firm's Internet Marketing Orientation, Learning Orientation, Market Orientation and Innovation Capabilities and Performance are considered a crucial research area in developing countries. The implications for Malaysian SMEs are discussed.
Highlights
Malaysian SMEs are a vital component of the country’s economic development even though their share of total exports is approximately 20 per cent lower than that of other countries in the region, such as the Philippines, Hong Kong and Taiwan (SMIDEC 2002)
The aim of this study is to assess the patterns of Learning Orientation, Market Orientation, Internet Marketing Orientation, Innovative Capabilities and Performance within the small enterprises as well as to test and extend the model developed by Calantone et al (2002)
The objectives of this paper are to investigate the relationship between Market Orientation, Learning Orientation, Internet Marketing Orientation, Innovation Capabilities and Performance in the case of Malaysian Bumiputera small medium enterprises
Summary
Malaysian SMEs are a vital component of the country’s economic development even though their share of total exports is approximately 20 per cent lower than that of other countries in the region, such as the Philippines, Hong Kong and Taiwan (SMIDEC 2002). As reported in the BNM Report (2008), SMEs contribute 99.2 per cent to Gross Domestic Product (GDP) and provide employment for about 56 per cent of the total employment in Malaysia. According to the SMIDEC Report (2004), SMEs in Malaysia are still largely dependent on the domestic market and confronting the challenges of market access, advancement of technology, innovation and creativity, access to information and human development. This report indicates that there is still low IT acceptance and usage among SMEs in Malaysia
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