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Competitive intelligence among SMEs: assessing the role of entrepreneurial attitude orientation on innovation performance

Abdul-Mohsin, Ainul Mohsein; Ahmad, Noor Haslina; Abdul-Halim, Hasliza

Abstract

Competitive intelligence is key in today's unstable global environment because it leads to creation of ideas and innovation. Yet, research on competitive intelligence as the foundation of strategic management is very much lacking. Furthermore, research on competitive intelligence practice among the SMEs is also scanty. Thus, the intention of this study is to review the literature on entrepreneurial attitude orientation, competitive intelligence and innovative performance and to investigate the relationships of these three variables within the Malaysian SME context with empirical evidence.

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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. 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