*Administrative and Diplomatic Officer, Human Capital Division, Civil Service Department, Putrajaya, Malaysia
**Associate Professor, College of Business, Universiti Utara Malaysia, Kedah, Malaysia
***Senior Lecturer, College of Law, Government and International Studies, Universiti Utara Malaysia, Kedah, Malaysia
Online published on 11 June, 2014.
The recognition of innovation capability as a key success factor in determining performance has gained widespread attention from academicians and practitioners. They studied innovation capability in a variety of contexts including in relation to the business development, technology, policy design and social systems. Innovation capability is the ability of a firm to transform an idea into a something new which carries an economic value. The economic value would then increase profit and consequently firm performance.However, prior empirical study on innovation capability does not provide conclusive evidence regarding the relationship between innovation capability and firm performance. This paper tends to explore the conflicting results that link between the two variables. The unit of analysis for the study is Small and Medium Enterprises operating in Malaysia.
Innovation, Innovation Capability, Performance, Small and Medium Enterprise
