Linking Innovativeness and Business Performance: A Study of Malaysian Technology-Based SMEs

Abstract

One of the most crucial sources of sustainable business in this increasing changing environment is innovation. Innovation leads to improvement of product, services and process and at the same time it allows firms to survive, grows and gets more profits than non-innovators with continuous advancement. This study aims to determine the innovativeness of technology-based SMEs and to investigate the relationships between innovativeness and business performance. This study adopts a quantitative method where the respondents were the owners/ top managers of technology-based SMEs in Malaysia.  Results from quantitative study indicate that technology-based SMEs in Malaysia are innovative and innovativeness has significant and positive impact towards business performance. This study would add to the body of knowledge by examining innovativeness in technology-based SMEs.