Catching-Up Innovation Strategies for SMEs Sustainability: Context of Developing Economies

Abstract

Malaysia recognizes the critical role of Small and Medium-Sized Enterprises (SMEs) in its quest to become a developed country. As a result, Malaysia’s government has emphasized the importance of innovation with unique capabilities to help small and medium-sized enterprises (SMEs) become more competitive and sustainable. The purpose of this study is to examine the unique capabilities of Small and Medium-Sized Enterprises (SMEs) when it comes to innovation in a dynamic competitive environment. It is important understand how Small and Medium-Sized Enterprises (SMEs) developed and enhanced their unique capabilities in order to increase their competitiveness when implementing their innovation strategies. This paper as expected to provide a comprehensive explanation of the unique capabilities that Small and Medium-Sized Enterprises (SMEs) possess in order to enhance and develop their competitiveness and sustainability. Additionally, these unique capabilities should shed light on the significance of the study’s underlying theory (The Dynamic Capability Theory). To summarize, this study will provide the depth of knowledge and understanding necessary for Small and Medium-Sized Enterprises (SMEs) to remain competitive and viable for an extended period of time.