Enhancing local SME innovation capabilities for economic growth in Malaysia

• Main Authors: Ahmad Firdaus Ahmad Zulkhairi, Lee Shu Qi, Nik Nur Ruzaini Razali, Nurin Atiqah Hanim Talhah
• Format: Undergraduate Final Project Report
• Language: English
• Published: 2024
• Online Access: http://discol.umk.edu.my/id/eprint/14023/1/SAK2.pdf; http://discol.umk.edu.my/id/eprint/14023/
• Institution: Universiti Malaysia Kelantan

By encouraging the development of new goods, services, technology, and management practices within local small and medium enterprises (SMEs), innovation plays a critical role in improving business performance. This dynamic process entails the deployment of creative techniques that provide actual benefits to SMEs, becoming a vital component for these firms' long-term success and resilience in the economic landscape. This study discusses the critical need to understand how SMEs in Malaysia foster and enhance their innovation capabilities in order to prosper in the arena of e-economics. The primary objective is to examine the existing status of innovation capabilities inside SMEs and identify the tactics used for continuous improvement. To accomplish this, we interviewed four selected SMEs—Zaras Bakery, Tokku Leko, Saudagar Kerepek, and White Hall—to learn about their diverse approaches to innovation. To elicit significant ideas from interviews, thematic analysis, a rigorous qualitative technique, was used. The study's findings shed light on the many tactics used by SMEs to execute and improve innovation, assuring their market presence and competitiveness. This study contributes to a better understanding of the dynamics of innovation in SMEs and gives practical insights for organizations attempting to navigate the changing terrain of e-economic growth.