The relationship between innovativeness, strategy types, environment and the export performance of small and medium-size enterprises (SMEs) of Malaysian manufacturing secto

Kim Man, M. M. and Wafa, S. A. (2009) The relationship between innovativeness, strategy types, environment and the export performance of small and medium-size enterprises (SMEs) of Malaysian manufacturing secto. The Business Review, Cambridge, 13 (2). pp. 145-154. ISSN 1553-5827

Abstract/Summary

This study was conducted to investigate the relationship between innovativeness, strategy types, environment and the export performance of SMEs in the Malaysian manufacturing sectors. The conceptual framework is developed based on the innovativeness, strategy types, environment and the export performance. This study is based on a sample survey consisting of 121 SMEs in the manufacturing sector. Using structured questionnaires, the data were collected by mail as well as interviews with owner-managers of the SMEs. The findings indicate that there is no significant relationships between innovativeness and the export performance of SMEs. However, the findings shows that there is significant relationships between differentiation strategy type and the export performance of SMEs. The findings also shows that there is significant environment moderating effect on the relationship between the differentiation strategy type and the export performance of SMEs. Small and medium- sized enterprises (SMEs) play a significant role in the business system of both developed and developing economics (United Nations, 1993). This study examines the impact of innovativeness, strategy types and environment on the export performance of SMEs, and the model built suggested the relationship between innovativeness and strategy types can affect SMEs export performance, and the environment moderates the said relationships. In the Malaysian context, discussion on small-sized enterprise is always associated with medium-sized enterprises. Like other developing countries, Malaysia is also having difficulties in considering a definition of SMEs. This study defined SMEs as firms that employ less than 200 employees, based on the previous research done by Salleh, M. I. (1990) and Mohd. Asri (1999).