Impact of exploitative learning strategy on Malaysian SMEs' creativity and innovation capabilities

Small and medium-sized enterprises (SMEs) can be considered as learning enterprises due to their competitive natures. The aim of the present study is to examine the notion of exploitative learning strategy, which is practised among Malaysian SMEs to determine to which extent it will result in creativity and innovation. A questionnaire was developed and was distributed among 1,850 SMEs online from which 206 surveys were thoroughly completed and returned. A variance-based structural equation modelling technique (VBSEM) was utilised to assess the measurement as well as the structural relationships for exogenous and endogenous constructs. Results of hypothesis testing indicate that the exploitative learning strategy has a significant, positive role in improvisational creativity, compositional creativity and innovation while its indirect effect on innovation capability is also significant through compositional creativity. This study also finds that the number of employees moderates the relationship between exploitative learning strategy, improvisational creativity and innovation in SMEs.