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Absorptive Capacity, Innovativeness and the Performance of Micro-enterprises in Malaysia

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  • Abdullah Al Mamun
  • Nik Maheran Nik Muhammad
  • Mohammad Bin Ismail

Abstract

This study examines the effect of the entrepreneur’s innovativeness and absorptive capacity on micro-enterprise innovativeness and the performance of micro-enterprises owned and managed by women micro-entrepreneurs in Peninsular Malaysia. This study adopted a cross-sectional design and stratified sampling methods, and collected complete data from 417 micro-entrepreneurs. Findings of this study reveal that women micro-entrepreneurs’ innovativeness and absorptive capacity have a significant positive effect on micro-enterprise innovativeness and the performance of micro-enterprises. The development programmes and policies on innovation and SMEs should therefore emphasize on promoting innovativeness and improving the absorptive capacity among the women micro-entrepreneurs to improve the performance of micro-enterprises.

Suggested Citation

  • Abdullah Al Mamun & Nik Maheran Nik Muhammad & Mohammad Bin Ismail, 2017. "Absorptive Capacity, Innovativeness and the Performance of Micro-enterprises in Malaysia," Vision, , vol. 21(3), pages 243-249, September.
    • Handle: RePEc:sae:vision:v:21:y:2017:i:3:p:243-249
    DOI: 10.1177/0972262917716729
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    References listed on IDEAS

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    1. Autio, Erkko & Kenney, Martin & Mustar, Philippe & Siegel, Don & Wright, Mike, 2014. "Entrepreneurial innovation: The importance of context," Research Policy, Elsevier, vol. 43(7), pages 1097-1108.
    2. Robert E. Morgan & Pierre Berthon, 2008. "Market Orientation, Generative Learning, Innovation Strategy and Business Performance Inter‐Relationships in Bioscience Firms," Journal of Management Studies, Wiley Blackwell, vol. 45(8), pages 1329-1353, December.
    3. Chen, Chung-Jen & Huang, Jing-Wen, 2009. "Strategic human resource practices and innovation performance -- The mediating role of knowledge management capacity," Journal of Business Research, Elsevier, vol. 62(1), pages 104-114, January.
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