Abstract

In today’s dynamic business environment, having good strategies alone is not enough. Businesses must be able to evolve in consonance with the environment and focused on achieving sustained competitive advantages. One potential mechanism through which sustained competitive advantages can be obtained is innovativeness. Drawing upon data from 39 small and medium enterprises in Malaysia, this study examined the relationship of market innovativeness to performance. The findings of this study were somehow consistent with those of the earlier innovativeness study. The result of regression analyses reveals that market innovativeness is significantly related to the performance. Apart from providing some new evidence in the important area of innovativeness of Malaysian SMEs, this study has also important implication for managers and policy makers while revealing considerable scope for future research.

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