Managerial capabilities, learning orientation and international performance of Malaysian halal SMEs
Halal industry has become a new competitive advantage especially for Muslim countries especially Malaysia, where small medium enterprises (SMEs) export of halal product is one of important contributions to the national income. In ensuring the sustainability of SMEs in the international market, SMEs...
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| Format: | Thesis |
| Language: | English English |
| Published: |
2023
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| Subjects: | |
| Online Access: | http://eprints.utem.edu.my/id/eprint/28263/1/Managerial%20capabilities%2C%20learning%20orientation%20and%20international%20performance%20of%20Malaysian%20halal%20SMEs.pdf http://eprints.utem.edu.my/id/eprint/28263/2/Managerial%20capabilities%2C%20learning%20orientation%20and%20international%20performance%20of%20Malaysian%20halal%20SMEs.pdf |
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| Summary: | Halal industry has become a new competitive advantage especially for Muslim countries especially Malaysia, where small medium enterprises (SMEs) export of halal product is one of important contributions to the national income. In ensuring the sustainability of SMEs in the international market, SMEs needs to develop its internal capabilities especially managerial capabilities in facing uncertain environment internationally with the intervention
of learning orientation as organisational culture. Thus, this research was conducted to examine the mediating effect of learning orientation between managerial capabilities and
international performance of SMEs in halal industry. This study is a quantitative, crosssectional study. Purposive sampling was used as the sampling method where sample was selected based on 4 criteria; SMEs, manufacturer, obtained Malaysia Halal certification, and at least must export their halal product. A response from 136 top management team from participating firms were analyse using PLS-SEM. There is a mixed result of learning orientation as a mediator in the relationship between managerial capabilities (foreign market knowledge (FK), international experience (IE), international entrepreneurial orientation (IEO), global mindset (GM)) and international firm performance (IFP). Learning orientation act as a full mediator in the relationship between FK and IEO with international performance, while acting as partial mediator in the relationship between IEO and GM with international performance. Direct relationship occurs in all variables except for FK and IEO towards international performance. The insignificant direct relationship between FK and IEO towards IFP is due to the different performance measurement used in this study compare to previous research. Operating in emerging countries does not require much innovation while there is a tendency that the use of indicators selected especially for financial performance measurement resulted in different effect on the IEO to performance relationship. This study shows that learning orientation help SMEs in halal industry to transfer tacit knowledge embedded in managerial capabilities to the whole organization, thus can perform better internationally. Theoretically, this study contributes in specifying
resources fit under Resourced Based View theory and confirmed the use of the theory to increase performance of SMEs in global halal industry. |
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