Effect of organizational innovation as mediator in enhancing wholesale and retail small and medium enterprises’ performance

In the fast-changing environment, Small and Medium Size Enterprises (SMEs) need to seize business opportunities and develop dynamic capabilities that produce high performance. Malaysia's wholesale and retail SMEs have suffered a severe decline in their business performance. Moreover, the sector...

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Main Author: Amer Maaodhah, Ali Saleh
Format: Thesis
Language:English
Published: 2022
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Online Access:http://eprints.utm.my/108335/1/AliSalehAmerMaaodhahPAHIBS2022.pdf.pdf
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spelling my-utm-ep.1083352024-11-01T03:33:47Z Effect of organizational innovation as mediator in enhancing wholesale and retail small and medium enterprises’ performance 2022 Amer Maaodhah, Ali Saleh H Social Sciences (General) HD Industries. Land use. Labor In the fast-changing environment, Small and Medium Size Enterprises (SMEs) need to seize business opportunities and develop dynamic capabilities that produce high performance. Malaysia's wholesale and retail SMEs have suffered a severe decline in their business performance. Moreover, the sector's Gross Domestic Product (GDP) contribution is comparatively low compared to other sectors in Malaysia. In addition, the wholesale and retail sector also suffers heavily from low productivity. The present study has investigated the relationships between market orientation, entrepreneurial orientation, human resource management (HRM) practices, and organizational learning towards firm performance and organizational innovation. The current study also investigated the relationship between organizational innovation and firm performance. Likewise, the present study tested the mediating role of organizational innovation between market orientation, entrepreneurial orientation, HRM practices, and organizational learning towards organizational innovation. Hence, 201 responses were obtained from the owners/ managers of wholesale and retail SMEs in Malaysia. Data were analysed using Statistical Package for the Social Sciences (SPSS) and Partial Least Squares–Structural Equation Modelling (PLS-SEM). Thirteen hypotheses were tested in the study, and only ten of them were supported, and three hypotheses were not supported. The present study found a positive and significant relationship between entrepreneurial orientation, organizational learning, organizational innovation, and firm performance. However, market orientation and HRM practices were found to have no relationship with firm performance. A positive and significant relationship was found between market orientation, entrepreneurial orientation, HRM practices, and organizational learning towards organizational innovation. Besides that, organizational innovation mediates the relationship between market orientation, entrepreneurial orientation, organizational learning and firm performance. However, the study failed to provide empirical evidence for the mediating role of organizational innovation between HRM practices and firm performance. The study made significant contributions, especially for the owners/managers of wholesale and retail SMEs in Malaysia, by increasing their knowledge and awareness of appropriate strategies to improve organizational capabilities and how these strategies could foster an organizational innovation culture and increase firm performance. It also expands the current knowledge from the perspective of wholesale and retail SMEs in Malaysia. Thus, if the owners/managers of wholesale and retail SMEs in Malaysia could apply these strategies, they would enjoy superior firm performance and ensure business sustainability. Similarly, policymakers in Malaysia were provided recommendations to develop and establish policies to support the growth of wholesale and retail SMEs in Malaysia. 2022 Thesis http://eprints.utm.my/108335/ http://eprints.utm.my/108335/1/AliSalehAmerMaaodhahPAHIBS2022.pdf.pdf application/pdf en public http://dms.library.utm.my:8080/vital/access/manager/Repository/vital:154510 phd doctoral Universiti Teknologi Malaysia Azman Hashim International Business School
institution Universiti Teknologi Malaysia
collection UTM Institutional Repository
language English
topic H Social Sciences (General)
H Social Sciences (General)
spellingShingle H Social Sciences (General)
H Social Sciences (General)
Amer Maaodhah, Ali Saleh
Effect of organizational innovation as mediator in enhancing wholesale and retail small and medium enterprises’ performance
description In the fast-changing environment, Small and Medium Size Enterprises (SMEs) need to seize business opportunities and develop dynamic capabilities that produce high performance. Malaysia's wholesale and retail SMEs have suffered a severe decline in their business performance. Moreover, the sector's Gross Domestic Product (GDP) contribution is comparatively low compared to other sectors in Malaysia. In addition, the wholesale and retail sector also suffers heavily from low productivity. The present study has investigated the relationships between market orientation, entrepreneurial orientation, human resource management (HRM) practices, and organizational learning towards firm performance and organizational innovation. The current study also investigated the relationship between organizational innovation and firm performance. Likewise, the present study tested the mediating role of organizational innovation between market orientation, entrepreneurial orientation, HRM practices, and organizational learning towards organizational innovation. Hence, 201 responses were obtained from the owners/ managers of wholesale and retail SMEs in Malaysia. Data were analysed using Statistical Package for the Social Sciences (SPSS) and Partial Least Squares–Structural Equation Modelling (PLS-SEM). Thirteen hypotheses were tested in the study, and only ten of them were supported, and three hypotheses were not supported. The present study found a positive and significant relationship between entrepreneurial orientation, organizational learning, organizational innovation, and firm performance. However, market orientation and HRM practices were found to have no relationship with firm performance. A positive and significant relationship was found between market orientation, entrepreneurial orientation, HRM practices, and organizational learning towards organizational innovation. Besides that, organizational innovation mediates the relationship between market orientation, entrepreneurial orientation, organizational learning and firm performance. However, the study failed to provide empirical evidence for the mediating role of organizational innovation between HRM practices and firm performance. The study made significant contributions, especially for the owners/managers of wholesale and retail SMEs in Malaysia, by increasing their knowledge and awareness of appropriate strategies to improve organizational capabilities and how these strategies could foster an organizational innovation culture and increase firm performance. It also expands the current knowledge from the perspective of wholesale and retail SMEs in Malaysia. Thus, if the owners/managers of wholesale and retail SMEs in Malaysia could apply these strategies, they would enjoy superior firm performance and ensure business sustainability. Similarly, policymakers in Malaysia were provided recommendations to develop and establish policies to support the growth of wholesale and retail SMEs in Malaysia.
format Thesis
qualification_name Doctor of Philosophy (PhD.)
qualification_level Doctorate
author Amer Maaodhah, Ali Saleh
author_facet Amer Maaodhah, Ali Saleh
author_sort Amer Maaodhah, Ali Saleh
title Effect of organizational innovation as mediator in enhancing wholesale and retail small and medium enterprises’ performance
title_short Effect of organizational innovation as mediator in enhancing wholesale and retail small and medium enterprises’ performance
title_full Effect of organizational innovation as mediator in enhancing wholesale and retail small and medium enterprises’ performance
title_fullStr Effect of organizational innovation as mediator in enhancing wholesale and retail small and medium enterprises’ performance
title_full_unstemmed Effect of organizational innovation as mediator in enhancing wholesale and retail small and medium enterprises’ performance
title_sort effect of organizational innovation as mediator in enhancing wholesale and retail small and medium enterprises’ performance
granting_institution Universiti Teknologi Malaysia
granting_department Azman Hashim International Business School
publishDate 2022
url http://eprints.utm.my/108335/1/AliSalehAmerMaaodhahPAHIBS2022.pdf.pdf
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