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The Moderating Effects of Logistics and Supply Chain Issues on the Relationship Between Organisational Innovations, Entrepreneurial Orientation and Market Orientation of Smes in Malaysia

Author

Listed:
  • S. Yaakub*

    (OYAGSB, Malaysia)

  • N. A. H. Nik Abdullah

    (School of International Studies,Universiti Utara Malaysia, 06010 Sintok, Kedah, Malaysia)

Abstract

SMEs need to develop market orientation (MO) of the company together with entrepreneurial orientation (EO) and organisational innovation (OI) in order to sustain its business via market expansion. Venturing into new markets, however, could bring forth issues in logistics and supply chain such as transportation, packaging, documentation and warehousing. This study is conducted with focus on the moderating effects of logistics and supply chain issues on the relationship between entrepreneurial orientation and organizational innovation, on the market orientation of SMEs. This study used a combination of both the qualitative and quantitative research design. Data were obtained through face-to-face interviews and survey questionnaires. The population of the study were SMEs in Kedah, Perlis and Penang. A total of 5 companies were interviewed and 106 mail survey questionnaires were collected. Data gathered from survey questionnaires were analysed using SPSS and Partial Least Square Regression technique. Findings indicate that there is a mix of logistics and supply chain issues faced by the SMEs’ with most common issues being customer service and inventory management. Quantitative data analysis indicates that both entrepreneurial orientation and organisational innovations do influence the level of market orientation. In addition, logistics and supply chain issues are found to significantly moderate the relationship between both independent variables and the dependent variable.

Suggested Citation

  • S. Yaakub* & N. A. H. Nik Abdullah, 2018. "The Moderating Effects of Logistics and Supply Chain Issues on the Relationship Between Organisational Innovations, Entrepreneurial Orientation and Market Orientation of Smes in Malaysia," The Journal of Social Sciences Research, Academic Research Publishing Group, pages 973-985:6.
    • Handle: RePEc:arp:tjssrr:2018:p:973-985
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    References listed on IDEAS

    as
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