Exploring the impact of product and process innovations on firm sector, ownership type, size and activity performed

Abstract

This study was carried out to assess the impact of firm’s demographic information on their perception about product and process innovation. Four demographic variables, namely: sector, type of ownership, company size, and main activity of the firms were chosen as predictors, and their relationship with the two dependent variables: product and process innovations were studied. A total of eight hypotheses were formulated, linking each predictor to both dependent variables, individually. Based on the questionnaire designed, the questions were aimed at determining firms’ perceptions towards product and process innovations in their firms. A simple random sampling was employed to choose firms within the manufacturing and service sector from SMEcorps Malaysia data based, and contact was established via survey to all the selected firms. The data collected was processed using SPSS and analyzed through One-Sample T-test and ANOVA. It was seen that none of the predictors caused a significant variation in SMEs firm perceptions with respect to the firm’s responses on the demographic variables of the firm.