THE EFFECT OF ENTREPRENEURIAL ORIENTATION OF SMALL FIRMS INNOVATION

The innovation has become a crucial factor in developing business in both large and small organizations. The entrepreneurial orientation (EO) is recognized to be an effective development approach for innovation performance. However, the majority of past and current literature focus on the association between EO and innovation performance in the large organizations compared to small and medium firms, especially in the developing countries. Thus, this study aims to examine the association between EO and innovation performance in small business innovation performance in Malaysia. Due to the fact that the small business is a wide sector, food small firms were selected because they contribute significantly to Malaysian economy development and job creation. A survey was conducted with 177 firms, while regression was employed to analysis the relationship. The finding of this study ensures that there is positive relationship between EO and innovation performance in food small firms in Malaysia.