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Adoption of open innovation and entrepreneurial orientation practices in Malaysian furniture industry



Objective: The main objective of this research is to integrate the resource-based view (RBV) to analyse how the relationship between firm performance and entrepreneurial orientation is mediated by outbound innovation among furniture firms in Malaysia.

Research Design & Methods: In this research, data has been poised via questionnaire from the furniture firms in Johor state, Malaysia. In this study, 391 responses were considered and analysed. The partial least squares (PLS) model was employed to test the hypothetical relationships among entrepreneurial orientation, firm performance and outbound innovation intention to adopt open innovation practices.

Findings: Research findings show that innovativeness, competitive aggressiveness, risk-taking, outbound innovation are statistically significant factors influencing entrepreneurial orientation and open innovation adoption among furniture companies in Malaysia. However, autonomy and proactiveness do not have significant effects on entrepreneurial orientation and open innovation adoption intention.

Implications & Recommendations: Few implications that are significant for academics and practitioners are also debated according to research findings. This research can serve as a guideline for successfully implementing entrepreneurial orientation and open innovation among furniture firms in an emerging economy. Thus, offering an external

 knowledge search-collaboration mechanisms-superior performance framework. Through using

 this open approach, companies will seek to find opportunities for creativity that go beyond their

 current capabilities to dramatically boost success.

Contribution & Value Added: This research, expanding the open innovation (OI) paradigm, explicates and measures the impact of OI’s direct and mediating inputs on entrepreneurial orientation (EO) and firm performance. The results are consistent with the current OI literature demonstrating the complex connection among together outbound innovation and EO dimensions and firm performance by investigating Malaysian furniture manufacturers by building scales and evaluating their validity by developing outbound innovation. The initial findings are direct ties between entrepreneurial orientation dimensions with business performance and outbound open innovation. All the indirect (mediation) relations among the study variables were the second part of the results.


Outbound innovation, Entrepreneurial orientation, firm performance, PLS-SEM

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Author Biography

Fazli Wadood

Assistant Professor and Head of Department of Business Administration at the University of Buner (Pakistan). He earned BS in Computer Science from the University of Peshawar Pakistan, Master’s in Business Administration from the University of Agriculture, Peshawar, Pakistan, and PhD in Technology Management from Universiti Tun Hussein Onn Malaysia. He published journal and conference papers on strategic management, innovation, and marketing management. He is a member of the Alumni Board of Directors and an elected member of the research and innovation department. His research interests include innovation, qualitative expertise in research, marketing, and management. He is member of SMEDA and IEEE.

Mohammed Emad Alshaikh

Mohammed holds a degree in Marketing from King Faisal University. He further continued to study MBA in marketing and DBA in entrepreneurship & business sustainability. Currently, Mohammed is the Vice Dean of College of Business Administration and Director of Entrepreneurship unit at Imam Abdurrahman bin Faisal University. His research interests include: entrepreneurship, business incubators and accelerators, entrepreneurial marketing, and business sustainability

Fazal Akbar

A full time pre-PhD researcher at the Faculty of Technology Management and Entrepreneurship at Universiti Tun Hussein Onn (Malaysia). He earned his Master’s in Technology Management from University Tun Hussein Onn Malaysia. He published articles in journals and conferences and his research interests include marketing management and entrepreneurship, strategic management, and innovation. Currently, he focuses on Industrial Revolution 4.0, entrepreneurship, and innovation.

Maqsood Mahmud

Assistant Professor at the Department of Management Information Systems, College of Business Administration, IAU, and Dammam. He is also the Director of Business Re-enforcement Intelligence & Cyber security Lab (BRICS-Lab). He did his PhD at University of Technology Malaysia in the field of Information Security Management 2013 and PostDoc from King Saud University. He is Microsoft and CISCO Systems certified. He is silver medal winner in Malaysia Innovation Expo 2012. His research interests include, Business Intelligence, Big Data, Information/Cyber security, Techno-Entrepreneurship, and Technological Freelancing etc. He is a permanent member of IEEE.


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