Malaysia Health Tourism SME’s Innovation Performance in the Relationship with Innovation Capability and Competency

Abstract

Malaysia provides top-notch medical tourism services, as evidenced by the numerous international awards it has won. However, corporate institutions like private hospitals and five-star hotels dominate the health tourism market in Malaysia. There aren’t many successful tourist SMEs. In addition, the Ministry of Health Malaysia is now the sole organisation in charge of the whole area of health tourism, making it difficult for other tourist SMEs to collaborate with one another to support the growth of the sector. One of the major shortcomings is that most tourism SMEs do not prioritise innovation and digital adaptation capabilities because they require more knowledge, expenses, and long-term commitments. As a result, this study will pinpoint the innovation capability variables that affect performance as well as the significance of digital adaptation skills in the Malaysian health tourism sector. This study is quantitative in nature and is based on a straightforward random selection of business owners in Malaysia’s health tourism sector who are identified as responders by the Malaysian Health Tourism Council (MHTC) and the Ministry of Tourism, Arts, and Culture (MOTAC). All respondents were surveyed as part of the study. The results demonstrated that innovation capability had a significant impact on innovation performance using the current statistical system.