P063 SME Innovative Performance via Influence of Empowering Leadership and Organizational Learning on Night Market Sellers in Sarawak with Mediating Role of Innovative Work Behaviour

Prestasi Inovatif PKS melalui Pengaruh Kepimpinan Pemerkasaan dan Pembelajaran Organisasi dalam kalangan Penjaja Pasar Malam di Sarawak dengan Peranan Pengantara Tingkah Laku Kerja Inovatif

Abstract

Small and Medium Enterprises (SMEs) in Sarawak, particularly night market sellers, face significant challenges in maintaining competitiveness within an increasingly digital economy. This study examines the influence of empowering leadership and organizational learning on SME innovation performance, with innovative work behaviour serving as a mediating mechanism. A quantitative, cross-sectional research design was employed, utilizing simple random sampling to collect data from 30 night market sellers in Kuching, Sarawak. Data were analyzed using Partial Least Squares Structural Equation Modelling (PLS-SEM) via SmartPLS. The findings reveal that organizational learning demonstrates a strong positive relationship with innovative work behaviour (β = 0.901, p < 0.05), while empowering leadership exhibits a more modest effect (β = 0.257, p = 0.00). Furthermore, innovative work behaviour significantly mediates the relationship between both empowering leadership and organizational learning on SME innovation performance. The model explains 68.4% of the variance in SME innovation performance when examining the EL-IWB-SME_IP pathway and 59.8% for the OL-IWB-SME_IP pathway. These findings underscore the critical importance of fostering learning-oriented cultures and encouraging innovative behaviours among employees to enhance the competitive position of night market sellers in Sarawak's evolving digital landscape.