Innovative Characteristics Among Small And Medium Enterprises In (Johor) Malaysia
Innovation is seen as a means that aids in promoting opportunities for new businesses to grow in the market. It has been proven to have a significant increase in SMEs as well as an expansion of business due to an implementation of innovation. Hence, SMEs are in competition among themselves in Malaysia even throughout the world, to improve their strategic innovation in order for them to boost productivity as well as sustain their competitive advantage. Thus, the objectives of this research are:(1) To identify the external business success factors being implemented by the SMEs in Johor. (2) To identify the internal business success factors being implemented by the SMEs in Johor. (3) To investigate the current level of innovative practices among SMEs in Johor. (4) To identify the relationship between external and internal factors with innovative practices among SMEs in Johor. Data was collected from 152 respondents of SMEs from all sectors in Johor. SPSS version 22 was used to analyze of the data. The findings confirmed that the survey instruments used were reliable. The findings enlighten that there is a significant positive relationship between external factors (Financial resource, Government supported developments, Market dynamics, and Academia-industry collaborations) on another hand, the internal factors (Organizational culture, and Management orientation) with innovation practices. The study also found that the level of innovation practices among SMEs in Johor was at a medium level. This study recommended to apply this study in other states within Malaysia and in other countries, Besides comparing innovative practices of locally managed SMEs and SMEs managed by foreign entities can increase our understanding of SME innovation practices. The study focused on SMEs, may better to examine large companies and identify whether they have similar outcomes.