Assessing the relationship between firm resources and product innovation performance

Abstract

PurposeThis paper seeks an answer to the question about which of a firm's resources contributes most to product innovation performance (PIP). The paper aims to adopt the resource‐based view (RBV) and consider both tangible and intangible assets.Design/methodology/approachA mail administrated survey was distributed to a randomly selected list of 700 small and medium enterprises (SMEs) in Malaysia. The response rate was 20.1 percent and the usable response rate was 15.4 percent which is favorable for this type of research. As comparable to other SME studies and particularly in Malaysia, this relatively low‐response rate is not surprising for mail administrated questionnaire.FindingsThe findings indicate that, in the Malaysian context, intangible resources are the main drivers of PIP. This is keeping with the expectations of the RBV.Research limitations/implicationsEstablishing a cooperative relationship with the Small and Medium Size Industries Development Corporation of Malaysia plays a significant role in helping us to garner a larger than expected response rate among the SMEs. Alliances such as this may help researchers improve survey response rates among smaller manufacturers.Originality/valueThis paper is unique in that it is the first paper to address the relationship between firm resources and PIP among Malaysian companies. While the paper is primarily descriptive in nature, it does provide some evidence that can be used in the development and testing of hypotheses concerning the relationship between PIP and firm's resources.