The Mediating Effect of Innovation in Between Strategic Orientation and Enterprise Performance: Evidence From Malaysian Manufacturing Small-to-Medium-Sized Enterprises

Frontiers in Psychology

Anas A. Salameh¹  Syed Ali Fazal²  Noor Raihani Zainol³  Naeem Hayat³  Abdullah Al Mamun⁴  Zafir Khan Mohamed Makhbul⁴ 

[1] Department of Management Information Systems, College of Business Administration, Prince Sattam Bin Abdulaziz University, Al-Kharj, Saudi Arabia;Faculty of Business Administration, University of Science and Technology Chittagong, Chittagong, Bangladesh;Global Entrepreneurship Research and Innovation Centre, Universiti Malaysia Kelantan, Kota Bharu, Malaysia;UKM-Graduate School of Business, Universiti Kebangsaan Malaysia, Bangi, Malaysia;

关键词: market orientation;    customer orientation;    entrepreneurial orientation;    product and process innovation;    performance of manufacturing SMEs;   

DOI  :  10.3389/fpsyg.2022.887895

来源: DOAJ

【 摘 要 】

Strategic orientation and innovation are vital determinants for accelerating the performance of small-to-medium-sized enterprises (SMEs). However, there is a lack of empirical evidence confirming the innovation at the product and process levels that instigated the SMEs’ performance. Moreover, the mediating effect of process and product innovation can play a significant role in strategic orientation and manufacturing SMEs’ performance. In this respect, this study aims to examine the mediating effect of product and process innovation between strategic orientation (i.e., market, entrepreneurial, and customer orientation) and the performance of Malaysian manufacturing SMEs. The questionnaire survey gathered data from 360 manufacturing SMEs and was analyzed using partial least square structural equation modeling (PLS-SEM) to achieve these research objectives. The study analysis established that customer and entrepreneurial orientation significantly influence product and service innovation. However, the market orientation is significant for process innovation but insignificant for product-level innovation among SMEs. The study’s consequences exposed that process innovation has significantly mediated between the strategic (market, customer, and entrepreneurial) orientation and SMEs performance. It implies that market, entrepreneurial, and customer-related strategies would substantially improve SMEs’ performance by harnessing innovation at product and process levels. The core insights provided by the current work are to strengthen the strategic orientation that can promote product and process innovation, thereby harnessing the SMEs’ performance. Additionally, the study’s significance and limitations were reported at the end.

【 授权许可】

Unknown