The relationship of technological innovation capabilities and business innovation capabilities on organization performance: preliminary findings of Malaysian food processing SMEs

摘要

Due to the increasing of global competitivepressure, shortened product life cycles and ease of imitation,organizations must continue to innovate to ensure theorganization sustainability. One of the major factors contributingto organization sustainability is innovation. Previous studies haveshown significant impact of organizational innovationcapabilities on product and service quality. Literature hasidentified various types of innovation in organization. Amongthem are business innovation capabilities and technologicalinnovation capabilities. In the Malaysian context, business andtechnological innovation capabilities-related research,particularly among food SMEs are still not comprehensive. Manystudies have overlooked at the process of successful TIC buildingin the industrialization of developing countries. To address thegap, this current empirical research identifies the relationship ofBIC and TIC components at 30 Malaysian food SMEs innorthern area. Using case study approach, the questionnaireswere distributed among the top and middle management levelstaff. A total of 30 respondents involved in the survey. Data wereanalyzed using descriptive and inferential techniques. The studyfound that, BIC and TIC have moderate relationship onorganizational performance. Business innovation capability wasfound to have the most influential impact. The findings couldhelp food SMEs particularly in order to increase the level ofinnovation. The paper finalizes with some conclusions forindustry and other actors, and also future research.