SMEs in the Malaysian Economy

Hoq, Mohammad Ziaul; Ha, Norbani Che; Said, Saad Mohd

doi:10.2139/ssrn.1851426

Cited by 6 publications

(8 citation statements)

References 1 publication

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“…Small enterprises foster economic development and encourage the flow of trade and investment between countries. In Malaysia, SMEs first came to prominence with the implementation of the New Economic Policy in 1971, which had a subsidiary focus on SMEs with the aim of promoting an entrepreneurial culture among the country’s citizens (Hoq et al , 2009). There is a wide range of services and incentives provided to small enterprises by the Malaysian government and non-governmental development organizations.…”

Section: Introductionmentioning

confidence: 99%

Sources of competitive advantage for Malaysian micro-enterprises

Mamun

Nawi

Permarupan

et al. 2018

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Purpose Entrepreneurial activities are embedded within the networks of social relationships, which facilitate the flow of crucial information and resources. This study aims to examine the effect of social capital (i.e. structural, cognitive and relational), entrepreneurial competencies (i.e. commitment, conceptual and organizing) and micro-enterprise innovativeness (i.e. innovativeness and absorptive capacity) on the competitive advantages of the micro-enterprises owned and managed by women micro-entrepreneurs in Peninsular Malaysia. Design/methodology/approach This study used a cross-sectional design and collected quantitative data from 417 women micro-entrepreneurs from six selected states in Peninsular Malaysia through structured interview. For data analysis, this study adopted variance-based structural equation modeling, i.e. PLS-SEM. Findings The findings of this study revealed a significant positive effect of social capital on entrepreneurial competencies, innovativeness and competitive advantage. The findings also revealed a significant positive effect of entrepreneurial competencies on innovativeness and competitive advantage. Originality/value The government and other development agencies working toward enterprise development in Malaysia should therefore focus on designing a platform for women micro-entrepreneurs to promote the development of structural and relational social capital, which foster the flow of crucial information and resources necessary for suitable micro-enterprise performance.

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Section: Introductionmentioning

confidence: 99%

Sources of competitive advantage for Malaysian micro-enterprises

Mamun

Nawi

Permarupan

et al. 2018

JEEE

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“…Unlike developed countries, the research on immigrant entrepreneurship in developing countries is limited; for example, the role of immigrant entrepreneurs in Malaysia and the major constraints faced by them have not been well studied. Most studies focus on the role of SMEs in the Malaysian economy in general, or else focus on Bumiputera entrepreneurs; for example, Hoq et al (2009) highlighted lack of management expertise, less access to finance and human resource constraints as major impediments to SME development in Malaysia. Halim et al (2014) observed that the Malaysia SME business environment is characterized by many barriers, including lack of energy to meet competition, low skill and inferior entrepreneurial personality, lack of financial management and high external locus of control.…”

Section: Literature Reviewmentioning

confidence: 99%

Mainland Chinese Immigrant-owned SMEs in Malaysia: Case Studies

2021

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This article explores the contributions of—and constraints faced by—small and medium enterprises (SMEs) owned by mainland Chinese immigrant entrepreneurs in Malaysia using qualitative research and primary data gathered from five cases. It was found that Chinese immigrant SMEs make significant contributions to the host economy in terms of employment, diverse products and services, exports, innovation, micro foreign direct investment (FDI) and global linkages. Of these, employment creation and exports appear to be their most important contributions. They face various constraints, some of which are largely the same as those faced by local entrepreneurs. However, they additionally face some specific constraints which local entrepreneurs do not, such as language barrier, lack of financial support in the growth stage, lack of government assistance, and onerous bureaucratic problems, such as tax and visa requirements. The findings suggest that the government should create a special department to formulate tailor-made policies and incentives to support immigrant-owned SMEs, so that their contribution to the future economic development of Malaysia can be further strengthened and monitored.

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“…In Malaysia, SMEs first came into prominence with the implementation of the NEP in 1971. Although the main objective of the NEP was broader politico-economic restructuring in the nation to alleviate economic inequality between citizens of different ethnic backgrounds, there was also a subsidiary focus on SMEs with the aim of promoting an entrepreneurial culture among the country's citizens (Hoq et al, 2009). Over the years, the government has even set up a ministry for SMEs and entrepreneurs in Malaysia, and they provide a wide range of services and incentives to SMEs.…”

Section: Review Of Literaturementioning

confidence: 99%

“…Not only do SMEs contribute to the economic development of a country, the level of their success also acts as a measure of efficacy of government policy in nurturing entrepreneurial culture in an economy. In Malaysia, the importance of SMEs first came to prominence with the implementation of the New Economic Policy (NEP) in 1971, aimed at improving the welfare of the citizens and restructuring economic inequities across different ethnic groups (Hoq, Che, & Said, 2009). Making a concerted effort to aid the development of SMEs, the Malaysian government implemented the Malaysia Industrial Master Plan (IMP), followed by IMP 2 (year 2000 to year 2005), and IMP 3 (year 2006 to year 2020) to coincide with the country's vision to become a developed economy by 2020 (Ministry of International Trade and Industry, 2012).…”

Section: Introductionmentioning

confidence: 99%

Strategic Orientation and Performance of SMEs in Malaysia

2017

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The primary objective of this study is to critically examine the effect of strategic orientation on the performance of small and medium enterprises (SMEs) in Malaysia. Three most comprehensive constructs, namely, entrepreneurial orientation, market orientation, and interaction orientation were adopted to present a holistic picture of the effect of strategic orientation on firm performance. This study adopts a cross-sectional design and uses the stratified random sampling method to select the potential respondents. The complete data were collected from 473 entrepreneurs who operate in the service sector in Malaysia. Findings of this study show that entrepreneurial and market orientations have a positive effect on superior firm performance. As entrepreneurial orientation is shown to be the construct sharing a positive relationship with all the other constructs in the model, it has been identified as the most significant strategic orientation. SMEs in Malaysia should therefore focus on adopting strategies in market orientation by appropriate marketing efforts, and in entrepreneurial orientation where the entrepreneur needs to adopt a proactive stance to counter challenges in the market of new products and changing customer preferences.

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SMEs in the Malaysian Economy

Cited by 6 publications

References 1 publication

Sources of competitive advantage for Malaysian micro-enterprises

Sources of competitive advantage for Malaysian micro-enterprises

Mainland Chinese Immigrant-owned SMEs in Malaysia: Case Studies

Strategic Orientation and Performance of SMEs in Malaysia

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