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Innovation Capability for SME Biomass Industry Performance: Perspectives of HRM, OC, KMC in Industry 4.0
Abstract
Industry 4.0 exerts great pressure on the organization today to innovate its business model in order to stay competitive. This study examines the positive and indirect effect of human resource management, organizational culture, knowledge management capabilities on organizational performance, with the mediating effect of organizational innovation capability among small and medium-sized enterprise (SME) in biomass industry in Malaysia. In addition, this study integrates resource-based view (RBV) and dynamic capabilities theories to investigate how the organization utilize its resources and capabilities to enhance organizational performance. Data were collected using survey questionnaire from biomass SMEs located in Malaysia. Structural equation modelling (Smart PLS 3.0) was used to test and analyze the data. The findings reveal that knowledge management capability and organizational culture exert a positive influence on organizational innovation capabilities. Similarly, organizational innovation capabilities also found to positively affect organizational performance.
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