International Business Management

Year: 2016
Volume: 10
Issue: 15
Page No. 2756 - 2767

The Implication of Entrepreneurial Behavior and Network Collaboration on Firm Innovativeness in Knowledge Intensive Business Services

Authors : Md Noh Ab. Majid and Mohd Ghani Awang

Abstract: This study explored the role of entrepreneurial behavior and network collaboration on firm innovativeness among ‘Knowledge-Intensive Business Services’ (KIBS) in Malaysia. Applying the resource-based view approaches, a field study was carried out and data were randomly obtained from 200 firms in this service sub-sector by using a self-administered questionnaire via a key-informant from each firm. The questionnaires used were pre-tested before the actual survey. Data were analyzed by using Partial-Least Square (PLS) as it involved structural modeling of latent constructs, the use of hierarchical models and formative items construct which aimed at estimating complex model while maximizing the variances in the dependent variable. Results showed that both predictor variables significantly influence firm innovativeness. It distinctly revealed that professional employees’ innovative behavior and collaboration with commercial lab or private Research and Development (R&D) institutes as two vital resources of firm innovativeness in KIBS. This research has made a significant contribution on theoretical conceptualization as well as empirical validation in firm innovativeness studies. Conceptually, it extends theory by reframing entrepreneurial orientation into entrepreneurial behavior as a hierarchical model that incorporates corporate entrepreneurship and innovative behavior. Empirically, it confirms that PLS path modeling is applicable to estimate the parameters of a higher-order model developed in this study. This research has offered firms in the service sector vital strategies to enhance innovativeness for organizational competitiveness.

How to cite this article:

Md Noh Ab. Majid and Mohd Ghani Awang, 2016. The Implication of Entrepreneurial Behavior and Network Collaboration on Firm Innovativeness in Knowledge Intensive Business Services. International Business Management, 10: 2756-2767.

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