The impact of environmental dynamism on knowledge absorptive capacity-innovation performance relationship amongst manufacturing SMEs in Malaysia / Zarina Denan, Noraini Ismail and Noormala Amir Ishak

This study examines the absorptive capacity construct at the organization level: its influence on the innovation performance. The primary question this study sought to answer was: How does absorptive capacity affect innovation performance? More specifically, the study examines the relationships of...

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Main Authors:	Denan, Zarina, Ismail, Noraini, Amir Ishak, Noormala
Format:	Article
Language:	English
Published:	Research Management Institute (RMI) 2009
Subjects:	Malaysia Small business
Online Access:	http://ir.uitm.edu.my/id/eprint/13072/ http://ir.uitm.edu.my/id/eprint/13072/1/AJ_ZARINA%20DENAN%20SMRJ%2009%201.pdf

id	uitm-13072
recordtype	eprints
spelling	uitm-130722016-06-30T00:25:55Z http://ir.uitm.edu.my/id/eprint/13072/ The impact of environmental dynamism on knowledge absorptive capacity-innovation performance relationship amongst manufacturing SMEs in Malaysia / Zarina Denan, Noraini Ismail and Noormala Amir Ishak Denan, Zarina Ismail, Noraini Amir Ishak, Noormala Malaysia Small business This study examines the absorptive capacity construct at the organization level: its influence on the innovation performance. The primary question this study sought to answer was: How does absorptive capacity affect innovation performance? More specifically, the study examines the relationships of absorptive capacity dimensions and innovation performance. Also, the role of environmental dynamism, as a moderator on absorptive capacity-innovation performance relationship was also investigated. Absorptive capacity is defined as a firm’s capability to complete the entire process from acquiring, disseminating and exploiting knowledge for commercial ends. This study focuses on three dimensions only; knowledge acquisition, knowledge dissemination and knowledge exploitation. The innovation performance concentrates on incremental innovation which includes product, service, method of production, market, sources of supply and ways of organizing. The study used a survey research method and regression analysis technique to examine the hypothesized relationships among constructs using data collected from 180 manufacturing SMEs in Malaysia. It was found that absorptive capacity is positively and significantly related to firms’ innovation performance. Nevertheless, none of the dimensions of absorptive capacity was found significant. The environmental dynamism significantly moderates the relationship between absorptive capacity and innovation performance. The results indicated that both researchers and managers need to pay more attention on SMEs capability in acquiring, disseminating and exploiting knowledge and these capabilities must be integrated in order to achieve superior innovation performance. Also Malaysian SMEs are seen to be more absorptive in more stable environment which eventually enhances the innovation performance. Research Management Institute (RMI) 2009 Article PeerReviewed text en http://ir.uitm.edu.my/id/eprint/13072/1/AJ_ZARINA%20DENAN%20SMRJ%2009%201.pdf Denan, Zarina and Ismail, Noraini and Amir Ishak, Noormala (2009) The impact of environmental dynamism on knowledge absorptive capacity-innovation performance relationship amongst manufacturing SMEs in Malaysia / Zarina Denan, Noraini Ismail and Noormala Amir Ishak. Social and Management Research Journal, 6 (1). pp. 63-85. ISSN 1675-7017
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Teknologi MARA
building	UiTM Institutional Repository
collection	Online Access
language	English
topic	Malaysia Small business
spellingShingle	Malaysia Small business Denan, Zarina Ismail, Noraini Amir Ishak, Noormala The impact of environmental dynamism on knowledge absorptive capacity-innovation performance relationship amongst manufacturing SMEs in Malaysia / Zarina Denan, Noraini Ismail and Noormala Amir Ishak
description	This study examines the absorptive capacity construct at the organization level: its influence on the innovation performance. The primary question this study sought to answer was: How does absorptive capacity affect innovation performance? More specifically, the study examines the relationships of absorptive capacity dimensions and innovation performance. Also, the role of environmental dynamism, as a moderator on absorptive capacity-innovation performance relationship was also investigated. Absorptive capacity is defined as a firm’s capability to complete the entire process from acquiring, disseminating and exploiting knowledge for commercial ends. This study focuses on three dimensions only; knowledge acquisition, knowledge dissemination and knowledge exploitation. The innovation performance concentrates on incremental innovation which includes product, service, method of production, market, sources of supply and ways of organizing. The study used a survey research method and regression analysis technique to examine the hypothesized relationships among constructs using data collected from 180 manufacturing SMEs in Malaysia. It was found that absorptive capacity is positively and significantly related to firms’ innovation performance. Nevertheless, none of the dimensions of absorptive capacity was found significant. The environmental dynamism significantly moderates the relationship between absorptive capacity and innovation performance. The results indicated that both researchers and managers need to pay more attention on SMEs capability in acquiring, disseminating and exploiting knowledge and these capabilities must be integrated in order to achieve superior innovation performance. Also Malaysian SMEs are seen to be more absorptive in more stable environment which eventually enhances the innovation performance.
format	Article
author	Denan, Zarina Ismail, Noraini Amir Ishak, Noormala
author_facet	Denan, Zarina Ismail, Noraini Amir Ishak, Noormala
author_sort	Denan, Zarina
title	The impact of environmental dynamism on knowledge absorptive capacity-innovation performance relationship amongst manufacturing SMEs in Malaysia / Zarina Denan, Noraini Ismail and Noormala Amir Ishak
title_short	The impact of environmental dynamism on knowledge absorptive capacity-innovation performance relationship amongst manufacturing SMEs in Malaysia / Zarina Denan, Noraini Ismail and Noormala Amir Ishak
title_full	The impact of environmental dynamism on knowledge absorptive capacity-innovation performance relationship amongst manufacturing SMEs in Malaysia / Zarina Denan, Noraini Ismail and Noormala Amir Ishak
title_fullStr	The impact of environmental dynamism on knowledge absorptive capacity-innovation performance relationship amongst manufacturing SMEs in Malaysia / Zarina Denan, Noraini Ismail and Noormala Amir Ishak
title_full_unstemmed	The impact of environmental dynamism on knowledge absorptive capacity-innovation performance relationship amongst manufacturing SMEs in Malaysia / Zarina Denan, Noraini Ismail and Noormala Amir Ishak
title_sort	impact of environmental dynamism on knowledge absorptive capacity-innovation performance relationship amongst manufacturing smes in malaysia / zarina denan, noraini ismail and noormala amir ishak
publisher	Research Management Institute (RMI)
publishDate	2009
url	http://ir.uitm.edu.my/id/eprint/13072/ http://ir.uitm.edu.my/id/eprint/13072/1/AJ_ZARINA%20DENAN%20SMRJ%2009%201.pdf
first_indexed	2023-09-18T22:49:48Z
last_indexed	2023-09-18T22:49:48Z
_version_	1777417467820244992

The impact of environmental dynamism on knowledge absorptive capacity-innovation performance relationship amongst manufacturing SMEs in Malaysia / Zarina Denan, Noraini Ismail and Noormala Amir Ishak

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