Absorptive Capacity,Innovativeness and the Performance of Micro-enterprises in Malaysia

Abstract

This study examines the effect of the entrepreneur’s innovativeness and absorptive capacity on micro-enterprise innovativeness and the performance of micro-enterprises owned and managed by women micro-entrepreneurs in Peninsular Malaysia. This study adopted a cross-sectional design and stratified sampling methods, and collected complete data from 417 micro-entrepreneurs. Findings of this study reveal that women micro-entrepreneurs’ innovativeness and absorptive capacity have a significant positive effect on micro-enterprise innovativeness and the performance of micro-enterprises. The development programmes and policies on innovation and SMEs should therefore emphasize on promoting innovativeness and improving the absorptive capacity among the women micro-entrepreneurs to improve the performance of micro-enterprises.

Keywords

Innovativeness Innovation Absorptive Capacity Micro-enterprise Women Micro-entrepreneurs

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