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Sustainability 2015, 7(1), 537-562; doi:10.3390/su7010537

Designing and Validating a Model for Measuring Sustainability of Overall Innovation Capability of Small and Medium-Sized Enterprises

1
Department of Mechanical and Materials Engineering, Faculty of Engineering and Built Environment, Universiti Kebangsaan Malaysia, 43600 Bangi, Selangor, Malaysia
2
Department of Marketing, Faculty of Business and Accountancy, University of Malaya, Kuala Lumpur 50603, Malaysia
These authors contributed equally to this work.
*
Author to whom correspondence should be addressed.
Academic Editor: Gayle C. Avery
Received: 14 October 2014 / Accepted: 23 December 2014 / Published: 6 January 2015
(This article belongs to the Special Issue Sustainable Leadership and Management)
View Full-Text   |   Download PDF [1085 KB, uploaded 24 February 2015]   |  

Abstract

The business environment is currently characterized by intensified competition at both the national and firm levels. Many studies have shown that innovation positively affect firms in enhancing their competitiveness. Innovation is a dynamic process that requires a continuous, evolving, and mastered management. Evaluating the sustainability of overall innovation capability of a business is a major means of determining how well this firm effectively and efficiently manages its innovation process. A psychometrically valid scale of evaluating the sustainability of overall innovation capability of a firm is still insufficient in the current innovation literature. Thus, this study developed a reliable and valid scale of measuring the sustainability of overall innovation capability construct. The unidimensionality, reliability, and several validity components of the developed scale were tested using the data collected from 175 small and medium-sized enterprises in Iran. A series of systematic statistical analyses were performed. Results of the reliability measures, exploratory and confirmatory factor analyses, and several components of validity tests strongly supported an eight-dimensional (8D) scale of measuring the sustainability of overall innovation capability construct. The dimensions of the scale were strategic management, supportive culture and structure, resource allocation, communication and networking, knowledge and technology management, idea management, project development, and commercialization capabilities. View Full-Text
Keywords: sustainability; overall innovation capability; small and medium-sized enterprises; automobile industry; measurement model sustainability; overall innovation capability; small and medium-sized enterprises; automobile industry; measurement model
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

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MDPI and ACS Style

Rahman, M.N.A.; Doroodian, M.; Kamarulzaman, Y.; Muhamad, N. Designing and Validating a Model for Measuring Sustainability of Overall Innovation Capability of Small and Medium-Sized Enterprises. Sustainability 2015, 7, 537-562.

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