Due to the increasing significance of design management and innovation to business performance, it is critical for the product sectors to stay up with the world's rapid changes in economic model and technology. As a result, industrialized countries regard design management as a competency that falls under the umbrella of innovation management. The objectives of this study are to identify the relationship between product innovation and marketing innovation on the business performance of Malaysian product industries, to analyze the effect of product innovation and marketing innovation on design management of Malaysian product industries, to examine the effect of design management on the business performance of Malaysian product industries and to test the mediating effect of design management between innovation and marketing innovation. This study uses a mixed method of qualitative and quantitative research design to collect data from 386 respondents from Malaysia's product industries. Simple random sampling was utilized to acquire the required data using a verified questionnaire. Furthermore, the qualitative survey data was analyzed using the Partial Least Square Structural Equation Model (SmartPLS3-SEM) in early phase as back data for qualitative method and for qualitative concerns, the researcher is using Likert scale form for subject matter expert to validate the gathered data with the hypothesis based on the findings of this study to check on the validity of the data gathered. In accordance to this research, the researcher defines “Malaysian Product Industries” as a group of small and medium enterprises in the services, primary agriculture and Information & Communication Technology (ICT) sectors that are enterprises and private company with full-time employees not exceeding 50 or with annual sales turnover not exceeding RM5 million. This study presents empirical evidence that the effect of design management on the relationship between innovation types and business success in Malaysia's product industries could lead to increased company performance. This research could assist the product industries better their businesses by identifying critical factors that contribute to greater business performance.
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