Abstract

This study focused on the less explored small and medium enterprise (SME) innovativeness in an Asian context and attempts to probe the relationship of innovativeness practices and organizational performance of small- and medium-sized enterprises located in Malaysia. As a resource, innovativeness can help companies achieve the desired performance. This is in line with the Resource Based View theory that says appropriate resources will help the company achieve competitive advantages. Data were collected through both mail and web-based survey. 150 responses collected but only 92 accepted for analysis. Descriptive and regression analysis were conducted. The descriptive result shows that Malaysian SMEs to be above average on the innovativeness variables under study. As for the regression analysis on the innovativeness and its outcomes variables, strategic innovativeness has a significant link with company performances. However behavioral innovativeness has a weak link with company performances. The research results provide some insights for companies that interested in applying innovative measures as part of their strategy.