Realizing Innovation Barriers among Manufacturing Smes in Malaysia

Abstract

Innovation performance plays an important role in the growth of the firm, including small and medium
entrepreneurs (SMEs). SMEs have become a very important sector and can be considered as a bone of economic
development in Malaysia. Besides, SMEs can be one of the essential engines of the nation growth particularly in
competitive global. However, the SMEs often face many pressures and challenges in order to increase their
innovation performance. Therefore, this study was undertaken to identify some of internal barriers that will
affect the innovation performance among Malaysian manufacturing SMEs. An examination of the relationship
among internal barriers and innovation performance leads to a conceptual framework that can helps SMEs build
their own strategies and structure their practices in order to keep them ranged with dynamic global market. A
pilot study via interview was conducted with a sample of five manufacturing SMEs from Malaysia to review the
outlook on internal barriers toward innovation performance.