1.6.2 Innovation 1.6.3 Organization Performance
1.6.4 Influence 1.7 Summary
2. LITERATURE REVIEW
2.1 SMEs Classification 2.1.1 Type of Measurement of SMEs
2.1.2 Role and Important of SMEs to the region 2.1.3 SMEs in the Manufacturing Sector
2.1.4 Benefits of SMEs to Malaysian Government 2.1.5 Problems faced by SMEs
2.1.6 Determinants of SMEs Success 2.1.7 Government Policies
2.1.8 Ministries and Agencies Involved in the Development of Malaysian SMEs
2.2 SME in Innovation 2.3 Technologies Innovation and Organization Effectiveness
2.3.1 Managerial Influence 2.3.2 Organizational Adoption
2.3.3 Adopter Interdependencies 2.3.4 Knowledge Barrier to Adoption
2.4 The Definition of Innovation 2.4.1 Various Definition of Innovation
2.4.2 Product Innovation 2.4.3 Process Innovation
2.4.4 Marketing Innovation 2.4.5 Organizational Innovation
2.4.6 Innovation and Firm Size 2.4.7 Innovation Strategies
2.4.8 Open Innovation 2.4.9 Innovations Model for Small and Medium Industries
19 22
22 23
24
24 30
32 34
39 43
50 56
61 63
66 68
68 70
71 72
76 82
83 87
87 87
89 90
92
ix
2.4.10 The Importance of Innovation for SMEs 2.4.11 Innovation Implementation
2.5 Performance of SMEs 2.5.1 Dimension of Organizational Performance
2.5.2 Manufacturing Performance Measure for SMEs 2.6 Innovation Factors Influencing Performance of Manufacturing
Manufacturing SMEs 2.6.1 Innovation importance
2.6.2 Innovation intention 2.6.3 Innovation improvement
2.6.4 Innovation personality 2.7 Theoretical Framework
2.8 Hypothesis 2.9 Summary
3. RESEARCH METHODOLOGY
3.1 Introduction 3.2 Research Design
3.2.1 Research Scope 3.3 Collecting Data
3.3.1 Primary Data 3.3.2 Secondary Data
3.4 Survey Instrument 3.5 Sampling Method
3.6 Pilot Test 3.7 Validity and Reliability
3.8 Research Area 3.9 Population and Sample Plan
3.9.1 Target Population 3.9.2 Population
3.9.3 Probability Random Sampling 3.9.4 Stratified Random Sampling
3.10 Research Instrument 95
99 104
106 108
110 110
111 111
112 112
117 124
125
125 126
126 129
129 129
130 131
131 132
134 137
137 137
139 139
140
x
3.10.1 Introduction 3.10.2 Survey Questionnaire
3.10.3 Data collection Strategies 3.10.3.1 Questionnaire Design
3.11 Procedures of Data Analysis 3.11.1 Quantitative Data Analysis
3.11.1.1 Factor Analysis 3.12 Summary
4.RESULT OF DATA ANALYSIS 4.1 Introduction
4.2 Description of Sample 4.3 Demographic
4.3.1 Particular of Respondent of SMEs in Malaysia
4.4 Descriptive Statistic Result of Company Profile 4.5 Descriptive Statistic Result of Innovation Activities
4.6 Descriptive Statistic Results of SMEs Development 4.7 The innovation importance and Business Performance
4.8 The innovation intention and Business Performance 4.9 The innovation improvement and Business Performance
4.10 The innovation personality and Business Performance 4.11 Factor Analysis for Innovation Variables
4.11.1 Principal Component Analysis-Total Variance Explained
4.11.2 Principal Component Analysis – Rotated
Component Matrix 4.12 Correlation analysis
4.13 Summary
5. RESULT AND DISCUSSION
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