The Effect of Dynamic Capability, Innovation, and Masculinity Culture on Performance of Microenterprise Owned by Women in Kelantan

Abstract

Since small and medium enterprises (SMEs), which include micro-firms, constitute majority businesses in Malaysia; they employ about two-thirds of the workforce who have a wide range of competencies and skills. This exemplifies the important economic and social responsibilities that microenterprises play and the need for them to be innovate and leverage their dynamic capability for a long-term competitive advantage. However, women-owned, and managed microbusinesses lag considerably behind men. Hence, this study aims to uncover how innovation and dynamic capabilities affect the performance of microbusinesses run and controlled by women in Kelantan. Investigations were also conducted into how these relationships were affected by masculinity culture. To respond to these research objectives, PLS-SEM was used