Innovation Capabilities and Performance of Malaysian Agricultural SMEs: The Moderating Role of Strategic Alliance

Small and Medium Enterprises (SMEs) in the agriculture sector Malaysia are still seen to contribute only a small portion towards Gross Domestic Product (GDP) total number of national workforce. As for agricultural SMEs, innovation activities needed produce quality agricultural-based products meet increasing world market demand. Nevertheless, among SMEs is less encouraging. Hence, this study aims investigate effect capabilities performance determine role strategic alliance as moderator influencing SMEs. The conceptual framework based on Resource-Based View Theory Schumpeter Innovation that considers will positively affect relationship between SME performance. A 136 respondents from Agricultural were used data analysis process using SmartPLS 3.0 software. results show have positive impact while does not Although has insignificant effect, might be resulted emphasis it defined alliances acquisitions companies. For Malaysia, entrepreneurs need look at an perspective by looking joint venture resource sharing benefit enterprises, thus meant acquisition. implication expected enhance Malaysian