The Effect of Innovative Work Behaviour on the Performance of Service Sector SMEs in Sabah
Innovation is often associated with the introduction of new products or services in the business. Moreover, it can also be about changing the way business is conducted. Innovation embraces new technologies, improves industry methods, meets changing customer demands or needs, and creates better syste...
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| Format: | Article |
| Language: | English |
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UiTM Press
2021-06-01
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| Series: | Journal of International Business, Economics and Entrepreneurship |
| Subjects: | |
| Online Access: | https://myjms.mohe.gov.my/index.php/JIBE/article/view/14204/7305 |
| _version_ | 1827620624251486208 |
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| author | Siti Noraisah Hj Musneh Sylvia @ Nabila Azwa Ambad Rosmimah Mohd Roslin |
| author_facet | Siti Noraisah Hj Musneh Sylvia @ Nabila Azwa Ambad Rosmimah Mohd Roslin |
| author_sort | Siti Noraisah Hj Musneh |
| collection | DOAJ |
| description | Innovation is often associated with the introduction of new products or services in the business. Moreover, it can also be about changing the way business is conducted. Innovation embraces new technologies, improves industry methods, meets changing customer demands or needs, and creates better systems and processes. The organisation relies heavily upon its stakeholders, especially the employees, when it wants to develop or create an innovative environment in the workplace, either in terms of operations, processes, or methods. In line with employees' innovative spirits, innovation is deemed more critical for Small Medium Enterprises (SMEs). As the backbone of Malaysia's economy, SMEs' competitive ability is often measured through its innovative capacity. In essence, SMEs and innovation are synergistically integrated as innovative efforts are regarded as the source of economic competitiveness. However, the means for the firms to be innovative remain questionable (Makanyeza & Dzvuke, 2016). In the current scenario, to achieve long-term success, an organisation needs to support and enhance its employees' innovative potential rather than focusing solely on research and development (R&D) professionals, scientists, or specialists. Thus, this study is conducted to examine the effect of innovative work behaviour on Sabah's SMEs' performance in the Service Sector. This is a quantitative research in which a total of 300 questionnaires were distributed to the managers of Service Sector SMEs in Sabah and 219 responses were received. The data collected was then analysed using PLS-SEM. This study found that the innovative work behaviour (β = 0.393, p =0.000) were positively related to organisation performance. Hence, innovative work behaviour is crucial to be embraced by the employees of the organisation itself to enable organisations to stay relevant in the industry and keep pace with the environment's rapid changes. |
| first_indexed | 2024-03-09T10:50:38Z |
| format | Article |
| id | doaj.art-8fa145890fc042199d14649293fa8554 |
| institution | Directory Open Access Journal |
| issn | 2550-1429 |
| language | English |
| last_indexed | 2024-03-09T10:50:38Z |
| publishDate | 2021-06-01 |
| publisher | UiTM Press |
| record_format | Article |
| series | Journal of International Business, Economics and Entrepreneurship |
| spelling | doaj.art-8fa145890fc042199d14649293fa85542023-12-01T07:34:18ZengUiTM PressJournal of International Business, Economics and Entrepreneurship2550-14292021-06-0161203010.24191/jibe.v6i1.14204The Effect of Innovative Work Behaviour on the Performance of Service Sector SMEs in SabahSiti Noraisah Hj Musneh0Sylvia @ Nabila Azwa Ambad1Rosmimah Mohd Roslin2Universiti Teknologi MARA Cawangan Sabah, Kampus Kota Kinabalu, Kota Kinabalu, SabahUniversiti Teknologi MARA Cawangan Sabah, Kampus Kota Kinabalu, Kota Kinabalu, SabahArshad Ayub Graduate Business School, Universiti Teknologi MARA, Shah Alam, SelangorInnovation is often associated with the introduction of new products or services in the business. Moreover, it can also be about changing the way business is conducted. Innovation embraces new technologies, improves industry methods, meets changing customer demands or needs, and creates better systems and processes. The organisation relies heavily upon its stakeholders, especially the employees, when it wants to develop or create an innovative environment in the workplace, either in terms of operations, processes, or methods. In line with employees' innovative spirits, innovation is deemed more critical for Small Medium Enterprises (SMEs). As the backbone of Malaysia's economy, SMEs' competitive ability is often measured through its innovative capacity. In essence, SMEs and innovation are synergistically integrated as innovative efforts are regarded as the source of economic competitiveness. However, the means for the firms to be innovative remain questionable (Makanyeza & Dzvuke, 2016). In the current scenario, to achieve long-term success, an organisation needs to support and enhance its employees' innovative potential rather than focusing solely on research and development (R&D) professionals, scientists, or specialists. Thus, this study is conducted to examine the effect of innovative work behaviour on Sabah's SMEs' performance in the Service Sector. This is a quantitative research in which a total of 300 questionnaires were distributed to the managers of Service Sector SMEs in Sabah and 219 responses were received. The data collected was then analysed using PLS-SEM. This study found that the innovative work behaviour (β = 0.393, p =0.000) were positively related to organisation performance. Hence, innovative work behaviour is crucial to be embraced by the employees of the organisation itself to enable organisations to stay relevant in the industry and keep pace with the environment's rapid changes.https://myjms.mohe.gov.my/index.php/JIBE/article/view/14204/7305innovationinnovative behavioursmesservice sectororganisation performance |
| spellingShingle | Siti Noraisah Hj Musneh Sylvia @ Nabila Azwa Ambad Rosmimah Mohd Roslin The Effect of Innovative Work Behaviour on the Performance of Service Sector SMEs in Sabah Journal of International Business, Economics and Entrepreneurship innovation innovative behaviour smes service sector organisation performance |
| title | The Effect of Innovative Work Behaviour on the Performance of Service Sector SMEs in Sabah |
| title_full | The Effect of Innovative Work Behaviour on the Performance of Service Sector SMEs in Sabah |
| title_fullStr | The Effect of Innovative Work Behaviour on the Performance of Service Sector SMEs in Sabah |
| title_full_unstemmed | The Effect of Innovative Work Behaviour on the Performance of Service Sector SMEs in Sabah |
| title_short | The Effect of Innovative Work Behaviour on the Performance of Service Sector SMEs in Sabah |
| title_sort | effect of innovative work behaviour on the performance of service sector smes in sabah |
| topic | innovation innovative behaviour smes service sector organisation performance |
| url | https://myjms.mohe.gov.my/index.php/JIBE/article/view/14204/7305 |
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