Fostering Innovation Capability And Sustainable Innovation In Malaysia: A New Halal Entrepreneurship Success Scale

Abstract

In recent years, there has been increasing interest in studying the relationship between entrepreneurship and sustainable innovation. However, there has been little research on how to foster sustainable innovation in the global and Malaysian Halal industry. This study proposes a Halal Entrepreneurship Success Scale (HESS) to assist Malaysia in preparing for a future led by innovation and technology. The sequential mixed methodology was used to develop the Halal Entrepreneurship Success Scale (HESS). First, the qualitative phase began with a literature review to gain insights into (Halal) entrepreneurship success and identify gaps. Qualitative data were collected through semi-structured interviews in Malaysia. Content analysis was used to analyse the interviews. The second stage was the quantitative survey research. Exploratory factor analysis (EFA) and confirmatory factor analysis (CFA) were used during the quantitative phase. The finalised HESS contains 24 items divided into four dimensions: Islamic success (7 items), economic success (6 items), social success (5 items), and environmental success (6 items). The partial least squares (PLS) technique was then used to assess the structural model. The relationship between the developed scale (HESS) and sustainable innovation and innovation capability was tested. The results showed that HESS was positively related to sustainable innovation in the presence of the mediation variable (innovation capability). The developed scale is perhaps the first to measure Halal entrepreneurship success. It is expected to be a useful contribution to both entrepreneurship scholarship and the Halal industry. The new scale and the research findings contribute to the body of knowledge on the Halal market. There are also practical implications for policymakers and managers in the Halal industry to enhance their business strategies.