1Owner/Director, Acuity Business Solutions, No. 34, Jalan 1/154A. Taman Bukit Anggerik, 56000, Taman Anggerik, Cheras, Kuala Lumpur. E-Mail: dsgill@acuity.my
2Senior Lecturer, University Utara Malaysia, No. 41-3, Jalan Raja Muda Abdul Aziz, Kampung Baru, 50300, Kuala Lumpur, Wilayah Persekutuan, Kuala Lumpur. E-Mail: norshafizah@uum.edu.my
The aim of this research is to examine the relationship between innovation capacity (IC), and firm performance (FP) among SMEs within the state of Selangor, Malaysia. A total of 150 firms responded for the research study. This research utilized the Partial Least Squares Structural Equation Modeling (PLS-SEM) to establish validity and reliability of measurement model and test the relationships. The results indicated a significant and positive relationship between innovation capability and performance of firms. Owner-managers of SMEs must lay emphasis on innovativeness to ensure enhanced firm performance and growth.
Innovation, capability, mortality, SMEs‟ Performance, Malaysia
