The analysis on innovation, strategic marketing, market turbulence, and its influence on performance of the Malaysian halal F&B companies / Mohammad Aminuddin Sham Tajudin

Innovation and strategic marketing have been identified in many literatures as the source for performance growth of companies. With Malaysia’s position as one of the leaders in the global halal industry, Malaysia halal companies are pressed to continue their market presence and growth especially with the surge of production cost and intensifying competition. However, the performance of Malaysia halal F&B companies is impeded by issues surrounding innovation and marketing such as low level of innovation, competitiveness and commercialisation. In understanding these problems, the study focused on the relationship between innovation and strategic marketing with regards to companies’ performance of the Malaysia halal F&B companies which will be moderated by market turbulence. In this research, the sampling consists of 386 Malaysian companies from the halal F&B industry. In order to determine the interrelation of the variables, a Pearson’s bivariate correlation analysis was conducted using the data collected in this study. This is followed by multiple regressions analysis, which was used to test the level of influence of the independent variables and companies’ performance. The first research objective is to study the relationship between innovation dimensions and performance. The second research objective is to study the relationship between strategic marketing dimensions (Independent Variable) and company’s performance. Finally, for the third research objective, a hierarchical multiple regression was conducted to examine the moderating effects of market turbulence on the relationship between independent variables (innovation type, innovation capability, innovation challenges, innovation drivers and strategic marketing) and dependent variable (companies’ performance). From the findings, it can be concluded that Malaysian companies especially the SMEs emphasize on technological type innovation to ensure their performance in the market. The companies are leveraging on their internal capabilities such as human resource talents, and technology, to venture in various innovation type as a strategic tool for sustainable growth. The study also highlighted on the stressed given by Malaysia halal F&B companies on operational marketing and strategic marketing drivers in ensuring the growth of their business activities performance. Another important finding of the study is that even though Malaysia halal F&B companies emphasised on technological innovation, under the presence of market turbulence, the technological innovation has to be supported through non-technological innovations such as innovation in marketing or business model innovation. Lastly, in the context of innovation, Malaysian halal F&B companies are looking at strategic marketing especially operational marketing and strategic marketing drivers as important factors for business performance sustainability such as in the area of commercialisation of new products, branding and product development. Besides consolidating the existing theory on the importance of innovation and strategic marketing for explaining a variation in companies’ performance and the moderating role of market turbulence in the relationship, the findings of this study also reinforce the view of the industry and policy makers on the critical role of innovation and strategic marketing in company’s performance (financial and non-financial) and towards developing the halal F&B industry in Malaysia.