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Marketing Innovation of Muslim Agro-Food Small and Medium Enterprises (SMEs) in Peninsular Malaysia

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Enhancing Halal Sustainability

Abstract

The most recent report on small and medium enterprises (SMEs) has indicated the increase in the performance, there are still 40% of the companies remain stagnant in their growth without showing any improvement. SMEs are unable to compete and sustain long enough in the marketplace. Management skills are often ignored by the SMEs as they depend solely on their experience. However, changes in the Malaysian lifestyle have increased the demand for agro-food products. Therefore, the challenge for Muslim agro-food SMEs is to fulfill the demand by implementing innovative marketing strategies. This study, focusing specifically on Muslim agro-food SMEs, seeks to examine their performance based on innovative marketing and innovative market orientation. The quantitative survey was employed using self-administered questionnaires. Systematic random sampling was used to select 50 targets of Muslim agro-food SMEs from four regions in Peninsular Malaysia. The results showed that there were positive relationships between the performance of Muslim agro-food SMEs and innovative marketing strategies while innovation has the strongest relationship in the innovative market orientation and performance (r = 0.912, p < 0.01). Therefore, the Muslim agro-food SMEs can use the knowledge from their experience to develop more effective marketing innovation for better performance.

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Acknowledgment

We thank Universiti Putra Malaysia for the financial support through the Putra Grant—Putra Group Initiative (IPB); Vote No: 95422302.

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Correspondence to N. H. Kamarulzaman .

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Khairuddin, N.H., Kamarulzaman, N.H., Hashim, H., Hussin, S.R. (2021). Marketing Innovation of Muslim Agro-Food Small and Medium Enterprises (SMEs) in Peninsular Malaysia. In: Md Shariff, N.N., et al. Enhancing Halal Sustainability. Springer, Singapore. https://doi.org/10.1007/978-981-33-4854-7_13

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