Ainul Mohsein e al. CI among Malaysian SMEs
2nd In e na ional Symposium on Pa ial Leas Squa es Pa h Modeling, Se ille (Spain), 2015 1
Compe i i e In elligence Among SMEs: Assessing he Role o
En ep eneu ial A i ude O ien a ion on Inno a ion Pe o mance.
Comple ed Resea ch Pape
1s Ainul Mohsein Abdul-Mohsin
Uni e isi i Sains Malaysia
amam11_man095@s uden .usm.my
2nd Hasliza Abdul-Halim
Uni e si i Sains Malaysia
[email protected]
3 d Noo Haslina Ahmad
Uni e si i Sains Malaysia
[email protected]
Abs ac
Compe i i e in elligence is key in oday's uns able global en i onmen because i leads o
c ea ion o ideas and inno a ion. Ye , esea ch on compe i i e in elligence as he ounda ion
o s a egic managemen is e y much lacking. Fu he mo e, esea ch on compe i i e
in elligence p ac ice among he SMEs is also scan y. Thus, he in en ion o his s udy is o
e iew he li e a u e on en ep eneu ial a i ude o ien a ion, compe i i e in elligence and
inno a i e pe o mance and o in es iga e he ela ionships o hese h ee a iables wi hin he
Malaysian SME con ex wi h empi ical e idence.
Keywo ds: Compe i i e in elligence, En ep eneu ial a i ude o ien a ion, Inno a i e
pe o mance, SME.
1. In oduc ion
In ecen yea s, he Malaysian SME sec o has soa ed in acco dance wi h he global
business de elopmen . The go e nmen con inues o p o ide a ious suppo in he o m o
de elopmen p og ammes and unding o escala e he SMEs p oduc i i y (PEMANDU,
2010). Ne e heless, he SMEs con ibu es o only 32.5% o he coun y's GDP (S a
Business, 2013). The 2014-2015 Compe i i e Index cha anked Malaysia a wen ie h in
e ms o compe i i eness and a hi y- hi d on he 2014 Global Inno a ion Index o
inno a i eness. F om hese ankings i is ob ious ha he Malaysian o ganisa ions lack
inno a i eness. The e o e, o hem o sus ain, hey need o enhance on hei inno a i eness,
c ea i i y and en ep eneu ship.
In he wes e n hemisphe e and Eas Asia, compe i i e in elligence (CI) is being
hea ily u ilised by la ge and smalle o ganisa ions (Adidam, Bane jee, & Shukla, 2012;
P ipo as, Gas o is, & Zacha is, 2005) as a sou ce o compe i i e ad an age and
inno a i eness (Smi h & Kossou, 2008; W igh , 2011). A e iew o he li e a u e also shows a
posi i e ela ionship be ween CI and inno a i e pe o mance and CI also leads o he c ea ion
o inno a i eness in small businesses (Hussein, Fa zaneh, & Ami i, 2011; Tane & Baile i,
2008). Hence, o compe e e ec i ely, SME mus p ac ice CI in hei day- o-day business
ac i i ies. Howe e , a oo li le esea ches ha e cen ed on he en ep eneu 's a i ude
o ien a ion, CI and inno a i e pe o mance. Gi en he ac ha CI is impo an o he SMEs
inno a i eness, his pape a gues ha i is essen ial o unde s and he en ep eneu ial a i ude
o ien a ion ela ionships o CI and inno a i e pe o mance in hei day- o-day business
Ainul Mohsein e al. CI among Malaysian SMEs
2nd In e na ional Symposium on Pa ial Leas Squa es Pa h Modeling, Se ille (Spain), 2015 2
p ac ices. The e o e, he pu pose o his pape is o in es iga e he ela ionships o
en ep eneu ial a i ude o ien a ion, compe i i e in elligence and inno a i e pe o mance
among he Malaysian SMEs wi h empi ical e idence.
2. Li e a u e Re iew and Resea ch Hypo heses
2.1 En ep eneu ial A i ude O ien a ion
A i ude is an e alua ion o an objec o hough . A i ude objec s can comp ise o
any hing a pe son may hold in mind, anging om he mundane o he abs ac , including
hings, people, g oups, and ideas (Bohne & Dickel, 2011). A i ude exis s a he gene al le el
and also a a e y speci ic le el o many objec s and because o his, a i ude needs o be
ma ched by measu emen speci ici y (Ajzen, 1988; Ajzen & Madden, 1986). Robinson,
S impson, Hu ne , and Hun (1991) summa ise ha a i ude owa ds achie emen in gene al
(gene al objec ) is no he same as a i ude owa ds achie emen in an en ep eneu ial se ing
(speci ic objec ). Thus, he En ep eneu ial A i ude O ien a ion (EAO) inco po a es an
a i ude scale o p edic en ep eneu ial ac i i y (Robinson e al., 1991). Fu he mo e, EAO is
mo e domain-speci ic and inc eases he co ela ion wi h he ac ual beha iou and educes
unexplained a iabili y (Gibson, Walke , & Ha is, 2010).
The EAO model is based on ou heo ies which a e needs o achie emen
(McClelland, 1961), inno a i eness (Ki on, 1984), locus o con ol (Le enson, 1973), and
sel es eem (C andall, 1973). In EAO, he in e p e a ion o achie emen , inno a i eness,
pe sonal con ol and sel es eem can be in e p e ed as he business accomplishmen and
unde akings, c ea i i y in handling a business, sel -in luence o e he business des iny and
he sel -con idence in unning a business. Howe e , s udies ha e shown ha only h ee
dimensions a e commonly iden i ied wi h business mo i a ion. These dimensions a e needs
o achie emen (N A), locus o con ol (LoC) and inno a i eness (Qiu,2008; K auss e al.,
2005; Ramsey & Ibbo son, 2005). In his s udy, only h ee dimensions o he EAO a e
applied. Fishbein and Ajzen (1977) sugges ha he a i udinal ac o signals a pe son’s
judgmen al a i ude owa ds a beha iou and a no ma i e belie signal a pe son’s pe cei ed
social p essu es o ac o no o ac on a speci ic beha iou . Thus, EAO cons uc s such as
N A, LoC and inno a i eness may en isage en ep eneu beha iou owa ds CI.
2.2 Inno a i e Pe o mance
Inno a ion is de ined as he adop ion o an idea o beha iou ha is new o an
o ganisa ion (Da , 1978; Damanpou & E an, 1984). The adop ion o inno a ion is desc ibed
as a p ocess ha includes gene a ion, de elopmen and implemen a ion o new ideas o
beha iou s. Inno a ion is no only an adop ion bu also an adap a ion o new in o ma ion and
p ac ices which lead o he abili y o c ea e new ideas and apply hem o imp o ise new
p oduc s, se ices, p ocesses and p ocedu es (Ba es & Khasawneh, 2005). The de ini ion o
inno a ion has e ol ed in o di e en ca ego ies which include p oduc s, p oduc ion me hods
and echnologies, ma ke s, se ices and o ganisa ional s uc u e and an assump ion is made
ha he sou ce o in o ma ion a ies be ween di e en ypes o inno a ion (F eel & de Jong,
2009; Töd ling, Lehne , & Kau mann, 2009). Inno a ion can ei he be adical which is
e olu iona y and o iginal (G een, Ga in, & Aiman-Smi h, 1995) o inc emen al which a e
small imp o emen s on an es ablished p ocess, p oduc s o se ices. Inno a ion is p ac iced
by all ypes o o ganisa ions ega dless o size because i is p o en ha o ganisa ions ha a e
inno a i e has highe p o i s and ma ke sha e (P ajogo & Ahmed, 2006). Fo he pu pose o
Ainul Mohsein e al. CI among Malaysian SMEs
2nd In e na ional Symposium on Pa ial Leas Squa es Pa h Modeling, Se ille (Spain), 2015 3
his s udy, inno a i e pe o mance is de ined as inc emen al p oduc , se ice and p ocess
inno a ion because SME’s inno a ion ac i i ies a e mo e likely o be ad hoc o p ojec d i en
(Ho man, Pa ejo, Bessan , & Pe en, 1998). Fu he mo e, SMEs a e likely o ocus on
inc emen al inno a ion as posi by Oke, Bu ke, and Mye s (2007).
2.3 Compe i i e In elligence
In elligence is de ined as he collec i e alue-added bene i s ob ained om he
in angible asse s such as knowledge om he employees, managemen , s akeholde s, and
cus ome s (Liebowi z, 2006). Knowledge and expe ience go hand in hand in de eloping
in elligence. The di e ence be ween in o ma ion and in elligence is; in o ma ion is ac ual
and in elligence is in o ma ion ha has been sc eened, dis illed and analysed (D ucke , 1988;
Kahane , 1996). In e es ingly, CI is a p oduc and also a p ocess (P ipo as e al., 2005). CI
p ocess includes he cons uc s o planning, collec ion, analysis, communica ion, and
o ganisa ional awa eness o decision make s in deciding ac ion (Saayman e al., 2008;
S auss & du Toi , 2010). CI is a p oduc when he in elligence p oduced assis s he decision
make s in o mula ing a s a egy and in making a choice. CI is an ongoing p ocess o
analysing da a and in o ma ion in o in elligence by applying psychological echniques and
new echnology o de elop compe i i e edge (Fuld, 2010).
3) Resea ch F amewo k
Many li e a u e a gue ha CI is only popula among he la ge o ganisa ions bu he e
a e se e al empi ical e idences ha indica e CI is also applied by SMEs o imp o e hei
abili y o assess he isk awa eness and isk p e en ion (Zha & Chen, 2009). Canadian and
I anian small businesses a e also in ol ed in CI o inc ease hei inno a i e pe o mance
(Hussein e al., 2011; Tane & Baile i, 2008; Ta a & Molz, 2006) and ega ds CI as c ucial
o hei business success. SMEs in he Eu opean Union also ha e di ec suppo om hei
go e nmen s o suppo he use o CI by aising awa eness campaign and assis ing in skill
de elopmen (La i e , 2009; Smi h, W igh , & Pick on, 2010). Fo SMEs o be able o be
inno a i e, W igh , Bisson, and Du y (2012) ad oca e SMEs o in es in and p ac ise CI.
Based on he a o e-men ioned li e a u e e iew, he p oposed amewo k ( igu e1) and
he hypo heses a e depic ed below. EAO cons uc s a e ep esen ed by needs o achie emen ,
inno a i eness, and locus o con ol a e iewed as possible p edic o s o compe i i e
in elligence applica ion and inno a i e pe o mance. Compe i i e in elligence is also a
p edic o o inno a i e pe o mance. CI is also empi ically p o en o inc ease inno a i e
pe o mance in SMEs. Gi en ha he ole played by he a i udinal ac o can signal a pe son's
judgmen al a i ude owa ds a beha iou , i hen can be an icipa ed ha :
Figu e 1: Resea ch F amewo k
N A
LoC
Inn
CI
IP
Ainul Mohsein e al. CI among Malaysian SMEs
2nd In e na ional Symposium on Pa ial Leas Squa es Pa h Modeling, Se ille (Spain), 2015 4
Hypo hesis 1: The e will be a posi i e ela ionship be ween N A and CI.
Hypo hesis 2: The e will be a posi i e ela ionship be ween LoC and CI.
Hypo hesis 3: The e will be a posi i e ela ionship be ween inno a i eness and CI.
Hypo hesis 4: The e will be a posi i e ela ionship be ween CI and inno a i e pe o mance.
4) Me hodology
This s udy is quan i a i e in na u e and he scope ocuses on he SMEs ha a e
egis e ed wi h he SME Co po a ion Malaysia ei he in he manu ac u ing o se ices sec o s.
Since his s udy ocuses on SME en ep eneu s, he de ini ions o SMEs p o ided by Small
and Medium Indus ies De elopmen Co po a ion (SME Co ps, 2014) Malaysia will be used
o iden i y app op ia e businesses o inclusion in he s udy. A su ey ins umen was
de eloped by adap ing i ems om p e ious li e a u e which a e eliable and alida ed o
e alua e he ela ionships be ween he EAO cons uc s and CI and also on inno a i e
pe o mance.
P io o conduc ing his s udy, a p e- es ing on he ins umen is conduc ed. Eigh
en ep eneu s who me he s udy's p e equisi e pa icipa ed in his p e- es ing. The
esponden s we e asked o hei eedbacks on he ques ionnai e ace and con en alidi y,
con en ele ance, eadabili y, and o p oo ead he comp ehensi eness, syn ax e o s and he
gene al o ma layou . The eedbacks ecei ed om hese en ep eneu s a e compiled and
cons uc i ely examined be o e making amendmen s o he ins umen .
Since many SMEs en ep eneu s in Malaysia a e com o able in answe ing in he
Malay language he ins umen is also ansla ed in o he Malay language. The ansla ion in
his s udy applied he ex ended pa allel ansla ion p ocedu e known as collabo a i e
ansla ion. By applying his echnique he equi alence in meaning and he in ended sense o
s a emen is cap u ed (Limpani gul & Robson, 2009). Again, he ansla ed ques ionnai e is
being p e es ed by he esponden s o ensu e he ques ions a e alike be ween he English and
Malay e sion ques ionnai e.
Da a is collec ed by means o mail su ey whe e he ques ionnai es a e dis ibu ed o
1000 companies in all s a es o Malaysia. The esponden s a e business owne s cum
en ep eneu s o SMEs. This s udy is a c oss-sec ional ype o inqui y. Two sc eening
ques ions a e used o check he sample o any o m o esponse bias (Podsako , MacKenzie,
& Podsako , 2012). A o al o 191 eplies a e ecei ed. Twen y- ou ques ionnai es a e no
usable because hey a e pa ially comple ed and do no mee he sc eening ques ions c i e ia.
The e o e, only a sample size o N=167 is used o his s udy esul ing in a esponse a e o
16.7 pe cen . This esponse a e is conside ed sa is ac o y because i is a common scena io in
Malaysia o ob ain a s anda d esponse a e o be ween 15-20% om he SMEs (O hman,
Abdul-Ghani, & A shad, 2001). Fu he mo e, a p io i powe analysis using he G*Powe
so wa e (Faul, E d elde , Lang, & Buchne , 2007) e ealed ha an N o app oxima ely 119
is needed o an e ec size o 0.15.
5) Findings and Discussion
The model is es ed by using he Sma PLS S uc u al Equa ion Modeling (SEM)
p ocedu e which is de eloped by Ringle, Wende, and Will (2010). The i s s ep is o es o
he con e gen alidi y. Hai e al. (2010), sugges ed using he ac o loadings, composi e
Ainul Mohsein e al. CI among Malaysian SMEs
2nd In e na ional Symposium on Pa ial Leas Squa es Pa h Modeling, Se ille (Spain), 2015 5
eliabili y and a e age a iance ex ac ed o measu e he con e gence alidi y. Hai , Hul ,
Ringle, and Sa s ed (2014) s a e ha ou e loadings o 0.7 is accep able because i is
conside ed close enough o 0.708. Ne e heless, Hai e al. (2014) cau ion social sciences
esea che s o ini ially analyse he impac o dele ing indica o be ween 0.40 and 0.70 on AVE
and composi e eliabili y. I by dele ing he ou e loading does no inc ease measu e abo e he
h eshold, he e lec i e indica o should be e ained. Howe e , indica o s wi h ou e loading
below 0.40 should always be elimina ed om he scale (Hai , Sa s ed , Piepe , & Ringle,
2012). The loadings a e dele ing some o he i ems exceeded he ecommended alue o 0.7
(Hai e al. 2010) as depic ed in Table I. The Composi e Reliabili y as depic ed in Table 1
anged om 0.880 o 0.959 which exceeded he ecommended alue o 0.7 (Hai e al., 2010).
The a e age a iance ex ac ed, which e lec s he o e all amoun o a iance in he indica o s
accoun ed o by he la en cons uc , was in he ange o 0.587 and 0.776 which also
exceeded he ecommended alue o 0.5 (Hai e al., 2010).
Table 1
Resul o he measu emen model
Cons uc
I em
Loadings
AVE
CR
I em(s) dele ed due o
low loadings
Compe i i e In elligence
CI2
0.761
0.624
0.959
I em CI
CI3
0.745
I em CI5
CI4
0.762
I em CI15
CI6
0.767
CI7
0.842
CI8
0.842
CI9
0.752
CI10
0.783
CI11
0.850
CI12
0.850
CI13
0.775
CI14
0.842
CI16
0.743
CI17
0.727
Inno a i e pe o mance
IP1
0.800
0.587
0.895
IP2
0.799
IP3
0.792
IP4
0.653
IP5
0.766
IP6
0.788
EAO
NFA1
0.891
0.776
0.933
NFA2
0.875
NFA3
0.878
NFA4
0.880
LOC5
0.859
0.710
0.880
I em LOC7
LOC6
0.799
I em LOC9
LOC8
0.868
I em LOC10
Inn 11
0.793
0.618
0.889
Inn 12
0.720
Inn 13
0.848
Inn 14
0.844
Inn 15
0.715
No e: Loadings > 0.7, AVE>0.5, CR>0.7
The nex s ep is o measu e he disc iminan alidi y o check i he cons uc is
exclusi e om he o he cons uc s by empi ical s anda d (Hai e al., 2014). As shown in
Table 2, he co ela ions o each cons uc is less han he squa e oo o he a e age a iance

Ainul Mohsein e al. CI among Malaysian SMEs
2nd In e na ional Symposium on Pa ial Leas Squa es Pa h Modeling, Se ille (Spain), 2015 6
ex ac ed by he indica o s measu ing ha cons uc , indica ing adequa e disc iminan alidi y.
In o al, he measu emen model demons a es adequa e con e gen alidi y and disc iminan
alidi y.
Table 2
Disc iminan Validi y o Cons uc
CI
INNV
IP
LOC
NFA
CI
0.790
INNV
0.486
0.786
IP
0.651
0.462
0.766
LOC
0.426
0.705
0.452
0.842
NFA
0.346
0.429
0.300
0.671
0.881
No e: Diagonals ep esen he squa e oo o he AVE while he o diagonals ep esen he co ela ions.
To es he hypo heses, an e alua ion on he s uc u al model is conduc ed. The
analysis o he hypo heses is pe o med using he boo s apping me hod. This me hod akes a
la ge numbe o cases om he o iginal sample wi h eplacemen (Hai , Black, Babin, &
Ande son, 2010). Boo s apping p ocedu e is o es he coe icien s o hei signi icance.
Table 3 shows ha H1, H3 and H4 a e suppo ed. N A and inno a ion a e posi i ely ela ed o
compe i i e in elligence. CI is posi i ely ela ed o inno a i e pe o mance. F om Figu e 1,
he inno a i e pe o mance R2 alue is 0.423 which sugges s ha 42.3% o he a iance in he
dependen a iable is explained by CI. The CI R2 alue is 0.260 which sugges s 26.0% o he
a iance in he CI is explained by he EAO cons uc s which a e N A, LoC and
inno a i eness.
Table 3
Hypo hesis es ing
Hypo heses
Rela ionship
BETA
S d E o
T Value
H1
NFA -> CI
0.139
0.087
1.607*
H2
LOC -> CI
0.063
0.102
0.618
H3
INNV -> CI
0.381
0.078
4.683***
H4
CI -> IP
0.650
0.041
16.050***
No e: * p<0.10 (1.28), ** p<0.05 (1.645),*** p<0.01(2.33) one ail. Hypo heses a e suppo ed.
Figu e 2. S uc u al Model
Ainul Mohsein e al. CI among Malaysian SMEs
2nd In e na ional Symposium on Pa ial Leas Squa es Pa h Modeling, Se ille (Spain), 2015 7
N A is posi i ely ela ed o inno a i e pe o mance wi h a be a alue o 0.139, - alue
o 1.607 and ρ<0.10 signi icance le el. Many schola s ha e a gued ha N A has a posi i e
co ela ion wi h he psychological needs. Due o hei desi e o succeed, en ep eneu s a e
able o p edic new ini ia i e ha will con ibu e o he de elopmen o hei en u e success.
(Phelan & Alde , 2005; Spence, Ghe ib, & Biwolé, 2011). C i ically, McClelland (1961) wo k
also emphasises ha en ep eneu s wi h high N A will ind ways o maximise hei economic
achie emen . This iew implies ha en ep eneu s N A a e mo e c i ical han he economic
condi ions suppo ing hei po en ial inno a ions (de Bee , Sowa, & Holman, 2014).
The e o e, he e is some e idence ha an en ep eneu wi h high N A also has a endency o
emb ace CI o c ea e inno a ion o maximise his economic achie emen .
Inno a i eness is also posi i ely ela ed o CI wi h a be a alue o 0.381, - alue o
4.683 and ρ<0.01 signi icance le el. Inno a i eness is de ined as a pe son's willingness o
en u e in o a new p oduc o se ice (Goldsmi h & Ho acke , 1991). Gi en ha inno a ion
has inancial, imi a ion (Esc ibano & Gia a ana, 2011) and success isks (Co mican &
O’Sulli an, 2004) en ep eneu s a e mo e obus in accessing abou he inno a ion po en ial
(De eli & Al un, 2013). Thus, he esul sugges s a s ong link exis s be ween inno a i eness
and CI as i may lead o inno a ion in elligence.
Ro e (1966) made a signi ican con ibu ion o he psychological ield wi h he
de elopmen o locus o con ol cons uc . Acco ding o him an indi idual pe cei es he
ou come o an e en as being ei he wi hin o beyond his o he pe sonal con ol and
unde s anding. An in e nal LoC is one ha belie es he has in luence o e he ou comes
h ough his abili y, e o o skills. On he o he hand, ex e nal LoC means hose o ces om
ou side con ol he indi idual and de e mine he ou comes. Schola s ha e a gued ha in e nal
LoC o ien a ion is a p e equisi e o en ep eneu s o ake ac ion (K uege , 1993; Muelle &
Thomas, 2001). Con a y o expec a ion, his s udy esul shows ha he ela ionship be ween
LoC and CI is no s a is ically signi ican . This a he con adic o y esul may be due o
cul u al di e ences. Malaysia shows a s ong endo semen o being a high powe dis ance and
a collec i is ic socie y (A indell e al., 1997; Ho s ede, 1983; Kühnen e al., 2001) whe e
decisions a e made by membe s o a g oup a he han indi iduals. Thus his esul is no
su p ise because i is expec ed ha an in e nal LoC o ien a ion would be less p e alen in
collec i is ic cul u es han in indi idualis ic cul u es.
CI is posi i ely ela ed o inno a i e pe o mance wi h a be a alue o 0.650, - alue
o 16.050 and ρ<0.01 signi icance le el. This esul co obo a es he indings by Hussein e al.
(2011) and Tane and Baile i (2008) ha CI leads o inno a i eness, c ea ion o ideas and
inc ease in inno a i e pe o mance among he SMEs. This also leads o a s ong suppo o
he easoning by Pe işo and S ăin (2013), Jawo ski, Macinnis, and Kohli (2002) and
K ücken-Pe ei a, Debiasi, and Ab eu (2001) ha CI is a ool o inno a ion ha suppo s an
o ganisa ion's business s a egy, ma ke pene a ion, and de elopmen and p oduc inno a ion.
The e o e, compe i i e in elligence is a ool ha assis s in he de elopmen o an inno a i e
pe o mance o an o ganisa ion.
6) Conclusion and Implica ion
The objec i e o his s udy is o examine he EAO cons uc s, CI and inno a i e
pe o mance ela ionship in he Malaysian SMEs con ex . This s udy makes se e al
con ibu ions o he li e a u e on s a egic managemen . Fi s ly, his s udy ex ends he pool o
li e a u e by examining he EAO, CI and inno a i e pe o mance. Secondly, i is i al o he
Ainul Mohsein e al. CI among Malaysian SMEs
2nd In e na ional Symposium on Pa ial Leas Squa es Pa h Modeling, Se ille (Spain), 2015 8
Mul ina ional companies (MNC) o unde s and he SMEs a i ude o ien a ion o an Asian
eme ging coun y because o i s unique his o ical backg ound, eligious belie s and p ac ices,
philosophical in luences, poli ical sys ems and cul u es. MNC in Malaysia is known o
ou sou cing many non-co e businesses o SMEs. F om his s udy, he esul is in ag eemen
wi h Ho s ede's cul u al dimensions heo y ha he e ec s o a socie y's cul u e on he alues
o i s membe s plays an impo an ole in in luencing he en ep eneu beha iou . I seems
clea ha his s udy acknowledges ha EAO and CI a e posi i ely ela ed o inno a i e
pe o mance bu only N A and inno a i eness exhibi signi ican ela ionship wi h
compe i i e in elligence. Finally, compe i i e in elligence is also con i med as a ool o boos
inno a i e pe o mance.
The indings om his s udy clea ly show ha CI is indeed impo an o Malaysian
SME economic success. The success o he Malaysian SMEs is e y much a ec ed by he
en ep eneu s' a i ude in engaging new echniques o accele a e inno a i e pe o mance.
F om his s udy, he e is a consensus ha he en ep eneu a i ude is he decisi e ac o in
engaging CI. This s udy's empi ical e idence also indica es ha CI boos s inno a i e
pe o mance. Thus, en ep eneu s mus ha e he igh mindse when unde aking inno a i e
de elopmen and compe i i e in elligence is able o accele a e his conce n. SMEs a e ad ised
o emb ace a new way o inc easing inno a i e pe o mance o hey a e a isk o being le
behind in oday's bo de less ma ke place. They mus make use o o mal echniques in
ga he ing in elligence abou hei su oundings. Ne e heless, i is impo an o he SMEs o
ha e a mindse ha ecognises he ac ha inno a i eness can be achie ed by adop ing new
echniques and changing he deep- oo ed sys em. The s udy also con i ms ha EAO is an
an eceden o CI; and i may be use ul no only o he en ep eneu s bu also o employees in
he p i a e and public sec o s o inculca e he EAO o achie e a cul u e o inno a i e
pe o mance. Go e nmen agencies can ini ia e awa eness campaign o p omo e CI among he
SMEs. They can also iden i y SMEs ha show po en ial g ow h and o e CI p og ammes a
bo h he s a up and g ow h s ages. In addi ion, collabo a ions can also be es ablished
be ween he uni e si ies and he SMEs h ough pa ne ships o encou age he use o CI.
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