Innovation Capability - Converting Resources into Value

Innovation capability mediates the relationship between entrepreneurial resources and business performance. Research involving 455 women entrepreneurs in Malaysia found that entrepreneurial resources—particularly technical resources—positively affect innovation capability, which in turn enhances business performance. Innovation capability represents an organization's ability to generate novel ideas, develop new products and services, and implement innovative processes. Entrepreneurs who foster innovation capability gain competitive advantages and create superior value for customers. Policymakers and business managers should design programs that enhance innovation capability alongside providing entrepreneurial resources.