The Effect of Entrepreneurial Orientation, Innovation Capability and Knowledge Creation on Firm Performance: A Perspective on Small Scale Entrepreneurs

Nor Asiah Omar, Hasnan Md Aris, Muhamad Azrin Nazri

Abstract


ABSTRACT

The purpose of this study is to examine the predictive effects of entrepreneurial orientation, innovation capability and knowledge creation on firm performance. Data for the study was collected using a cross-sectional quantitative survey. A total of 188 useable responses were collected from SMEs in Malaysia. The findings show that entrepreneurial orientation, innovation capability and knowledge creation have a positive impact on firm performance. Furthermore, the impacts of entrepreneurial orientation and innovation capability on knowledge creation are also examined in this study. The findings suggest that innovation capability is positively related to knowledge creation, but entrepreneurial orientation does not have a significant impact on knowledge creation. This study makes a considerable contribution to the existing literature on entrepreneurial orientation, innovation capability and knowledge creation of SMEs, particularly in regards to explaining the performance of Malaysian SMEs.

Keywords: Entrepreneurial orientation; innovation capability; knowledge creation; performance; SMEs

ABSTRAK

Tujuan kajian ini adalah untuk mengetahui kesan orientasi keusahawanan, inovasi dan penciptaan pengetahuan kepada prestasi firma. Data kajian ini telah dikumpulkan melalui metod kuantitatif. Seramai 188 responden di kalangan PKS di Selangor, Malaysia telah terlibat di dalam kajian ini. Hasil kajian menunjukkan bahawa wujudnya hubungan positif di antara orientasi keusahawanan, inovasi dan penciptaan pengetahuan kepada prestasi firma. Disamping itu, kajian ini juga melibatkan kesan orientasi keusahawanan dan inovasi terhadap penciptaan pengetahuan. Hasil kajian menunjukkan hubungan positif wujud di antara inovasi dengan penciptaan pengetahuan. Namun begitu, orientasi keusahawanan tidak mempunyai kesan yang ketara kepada penciptaan pengetahuan. Secara umumnya, kajian ini memberikan sumbangan besar kepada kajian-kajian yang sedia di dalam bidang orientasi keusahawanan, inovasi dan penciptaan pengetahuan, khususnya dalam konteks prestasi PKS di Malaysia.

Kata kunci: Orientasi keusahawanan; keupayaan inovasi; penciptaan pengetahuan, prestasi; SMEs


Keywords


Entrepreneurial orientation; innovation capability; knowledge creation; performance; SMEs

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