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Effect of Market and Interaction Orientations on Innovation Orientation and Enterprise Performance

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To minimize poverty and inequality, Amanah Ikhtiar Malaysia (AIM) has been providing assistance for the development and growth of micro-enterprises over the last two decades. In order to reevaluate and elucidate ‘what and where’ to focus on while redesigning AIM’s credit and training programs, this action research project was initiated to examine the role of strategic orientation (i.e., market and interaction orientations) on innovation orientation and the performance of women micro-entrepreneurs in Malaysia. Findings of this study revealed that market orientation and interaction orientation have a significant positive effect on innovation orientation. Findings also noted a positive and significant effect of innovation orientation on micro-enterprise performance. Micro-enterprises in Malaysia should therefore, adopt strategies in market orientation with appropriate marketing efforts and interaction orientation where the entrepreneur adopts a proactive stance to deal with customers.
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Keywords: Innovation Orientation; Interaction Orientation; Market Orientation; Micro-Enterprise; Performance

Document Type: Research Article

Affiliations: Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Kota Bharu, Malaysia

Publication date: April 1, 2017

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