The effect of innovative mindset and behavior on innovation performance and competitive advantage: a case of halal SMEs owner-managers from Malaysian energy-intensive industry

Amar Hisham Jaaffar (), Nurshahirah Abd Majid (), Saraswathy Kasavan (), Aerni Isa (), Mohd Nur Ruzainy Alwi () and Abdul Rahman Zahari ()
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Amar Hisham Jaaffar: Universiti Tenaga Nasional, Jalan IKRAM-UNITEN
Nurshahirah Abd Majid: Universiti Tenaga Nasional, Jalan IKRAM-UNITEN
Saraswathy Kasavan: Management and Science University
Aerni Isa: Taylor’s University
Mohd Nur Ruzainy Alwi: Universiti Tenaga Nasional, IKRAM-UNITEN
Abdul Rahman Zahari: Uniten Business School, Universiti Tenaga Nasional, Jalan IKRAM-UNITEN

Journal of Innovation and Entrepreneurship, 2024, vol. 13, issue 1, 1-19

Abstract: Abstract Malaysia was ranked 32nd on the Global Competitiveness Index in 2022, which denotes that the level of R&D and productivity in SMEs in Malaysia needs to be improved. Therefore, more research is needed to ensure it remains competitive in the global halal marketplace by using innovative concepts as a culture to promote energy-intensive halal SMEs. This study examines the sequential influence of an innovative mindset, behavior, and performance on competitive advantage among SME owner-managers embarking on halal businesses. Data were gathered from SME owner-managers from the halal energy-intensive industry by conducting a self-administered and online-based survey involving 140 respondents. Data were analyzed with the partial least squares technique (SmartPLS 3.0). The results of this study show that innovative behavior was a direct result of an innovative mindset. On the other hand, innovative behavior produced innovation performance, which in turn produced a competitive advantage. This study shows that SMEs owner-managers of halal energy-intensive industries need possess both innovative behavior and innovative attitude as valuable assets. Moreover, a key component in their ability to gain a competitive advantage is their performance in innovation.

Keywords: Energy-intensive halal SMEs; SMEs owner-manager; Competitive advantage (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1186/s13731-023-00359-z

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