Effect of Market and Interaction Orientations on Innovation Orientation and Enterprise Performance

摘要

To minimize poverty and inequality, Amanah Ikhtiar Malaysia (AIM) has been providing assistance for the development and growth of micro-enterprises over the last two decades. In order to reevaluate and elucidate ‘what and where’ to focus on while redesigning AIM’scredit and training programs, this action research project was initiated to examine the role of strategic orientation (i.e., market and interaction orientations) on innovation orientation and the performance of women micro-entrepreneurs in Malaysia. Findings of this study revealed that marketorientation and interaction orientation have a significant positive effect on innovation orientation. Findings also noted a positive and significant effect of innovation orientation on micro-enterprise performance. Micro-enterprises in Malaysia should therefore, adopt strategies in marketorientation with appropriate marketing efforts and interaction orientation where the entrepreneur adopts a proactive stance to deal with customers.