The Relationships Between Entrepreneurial Attitude Orientation, Market Orientation, Entrepreneurial Competencies, Competitve Intelligence And Innovative Performance
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Date
2015-09
Authors
Abdul Mohsin, Ainul Mohsein
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Abstract
Malaysia aspires to attain the status of a fully developed nation that is competitive and built on innovation-based economy. Several steps are taken by the Malaysian Government to develop a knowledge-intensive and innovative society. According to the Economic Transformation Programme, the private sector shall lead in building the nation’s economy. However, 97.3% of the total established businesses in Malaysia are SMEs and they contribute to only 32.5% of the country's Gross Domestic Product. To correct this imbalance, the government is committed to support the SMEs via development programmes and funding. Despite all these affirmative action, many SMEs still fail to sustain. This failure to sustain is attributed to the inability to utilise available resources effectively. Perhaps there is another factor that the SMEs need to consider. Research has shown that Malaysian SMEs are heavily involved in market orientation. Market orientation is found to have a positive correlation to innovative performance; and competitive intelligence is a critical tool for innovation. Furthermore, market intelligence is a subset of competitive intelligence (CI). Besides that, the CI competencies are very comparable to the entrepreneurial competencies which are also positively related to the entrepreneurs' attitude. In view of the above, the purpose of this study is to examine the interrelationship of these five internal variables. The underpinning theory and concepts for this framework are Resource-based Theory, Dynamic Capabilities Concept and Entrepreneurial Competency Concept. The data collection was conducted by self-administrated questionnaire which were distributed to 1000 SME CEOs. Descriptive analysis and structural equation modelling were conducted to test all the hypotheses of this study. In general, entrepreneurial competencies influenced competitive intelligence but particularly only specific competencies have significant influence on CI. The findings also indicates that CI mediates the relationship between specific entrepreneurial competencies and innovative performance. These specific competencies motivate innovativeness. Market orientation is confirmed as a determinant of entrepreneurial competencies. Two constructs of entrepreneurial attitude orientation; locus of control and innovativeness are found to have significant relationships to these competencies. This study make both theoretical and practical contributions, especially in identifying the significant factors that influence the practice of CI in enhancing innovativeness and its impact on innovative performance. In short, it provides useful pointers to entrepreneurs and policy makers on the importance of CI, entrepreneurial competencies, market orientation and entrepreneurial attitude orientation in developing and enhancing innovative performance.
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Management