The study is designed to examine and analyze the effects of innovation capacity (IC) on firm performance (FP) of Small Medium Enterprises (SMEs) within the service industry, located within the State of Selangor, Malaysia. The populations of the respondents are owner managers of 150 SME firms, constituting 20% response rate. Partial Least Squares Structural Equation Modeling (PLS-SEM) is utilized to examine the relationship. The evidence shows that IC has a significant and positive impact on overall FP. Firms’ that emphasizes innovativeness in all aspects indicates’ an improved overall performance. The study contributes to existing understanding highlighting important aspects of innovation within an organization that affects overall performance and ensures sustainability and growth.
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In-Text Citation: (Singh & Hanafi, 2020)
To Cite this Article: Singh, D. S. M., & Hanafi, N. B. (2020). Innovation Capacity and Performance of Malaysian SMES. International Journal of Academic Research in Business and Social Sciences, 10(2), 665–679.
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