Sustainable Growth in SMEs: A Review from the Malaysian Perspective

Yusoff, Tairuddin; Wahab, Sazali Abd; Latiff, Ahmad Shaharudin Abdul; Osman, Suzana Idayu Wati; Zawawi, Nur Fadiah Mohd; Fazal, Syed Ali

doi:10.5539/jms.v8n3p43

Cited by 42 publications

(37 citation statements)

References 40 publications

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“…The growth of Ivorian SMEs is relatively unsustainable, because some of the existing 'firm and entrepreneur characteristics' do not support their performance and long-term development. This observation is in line with the results of numerous studies [30,[77][78][79][80], which assert that many SMEs are not able to sustain their businesses. This poor performance results in a failure rate of more than 50% [10,80] or 60% [77,78] within the first five years of establishment.…”

Section: Testing Association Between Independent Variables and Growthsupporting

confidence: 91%

“…The concept of sustainable growth seems to be highly complex in light of the diversity of definitions and factors to be taken into consideration [30]. However, despite the complexity of its definition, it is admitted without question that the sustainable success of an enterprise results from a combination of various factors including specific characteristics [31].…”

Section: Sustainable Growth and Its Measurementmentioning

confidence: 99%

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Do Firm and Entrepreneur Characteristics Play a Role in SMEs’ Sustainable Growth in a Middle-Income Economy like Côte d’Ivoire?

et al. 2019

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Globally, small- and medium-sized enterprises (SMEs) play a key role in driving sustainable economic growth in both developed and developing countries. The main objective of this study was to investigate the firm and entrepreneur characteristics influencing the growth of SMEs in Côte d’Ivoire, with special insight into why this country has been a middle-income economy for decades despite its numerous economicpotentialities. Through IBM SPSS version 22.0, 19 hypotheses were tested using data from 160 SMEs operating in Côte d’Ivoire. The results from chi-square tests revealed an association between each of the ‘firm and entrepreneur characteristics’ and at least one of the three growth measurements. However, it was found thatkey factors such as ‘entrepreneur’s ‘age’, ‘work experience’ and ‘level of education’ do not play a role in SMEs’ sustainable growth in Côte d’Ivoire. Results from the binomial logistic regression confirmed that ‘ability to avoid reporting loss’ can be predicted based on ‘entrepreneur’s work experience’, ‘business sector’ and ‘source of funding’. Although this study has practical significance in the business sphere, its results may be of particular help to governments and policymakers in middle-income economies like Côte d’Ivoire for policy formulation and development of frameworks to enhance SMEs’ sustainable growth.

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Section: Testing Association Between Independent Variables and Growthsupporting

confidence: 91%

Section: Sustainable Growth and Its Measurementmentioning

confidence: 99%

Do Firm and Entrepreneur Characteristics Play a Role in SMEs’ Sustainable Growth in a Middle-Income Economy like Côte d’Ivoire?

et al. 2019

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“… Yusoff et al. (2018) suggested coming up with an integrated model of SMEs and sustainable achievements by considering internal organizational factors to attaining sustainable growth.…”

Section: Literature Reviewmentioning

confidence: 99%

“…SMEs’ contribution to the Malaysian economic growth is ample and realizing this fact, the Malaysian government has introduced several programs to enhance sustainable performance ( Musa and Chinniah, 2016 ; Yusoff et al., 2018 ). The Department of Statistics Industrial Production Index (IPI) has increased to 26 % in manufacturing indices and its sales increased to 37.2 % ( Department of Statistics, 2021 ).…”

Section: Literature Reviewmentioning

confidence: 99%

Industry 4.0 implementation and Triple Bottom Line sustainability: An empirical study on small and medium manufacturing firms

Jayashree

Reza

Malarvizhi

et al. 2021

Heliyon

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Background The current level of industrialization has generated many challenges worldwide, including ecological hazards, climate change, and the overuse of non-renewable natural resources, thereby creating an increasing demand for achieving the goal of the Triple Bottom Line (TBL). In this regard, Industry 4.0 can be used as a crunch point to contribute to the production process that can help achieve sustainable development. Purpose While the Malaysian government proposed the “Industry4ward” approach to enhance technological adoption, there is scarce empirical evidence in the literature that validates SMEs for Industry 4.0. Using Dynamic Capability View (DCV), this study proposes a framework that includes core determinants like top management commitment, supply chain integration, and IT infrastructure, that can significantly influence Industry 4.0 implementation toward achieving TBL sustainability. Design/methodology/approach Employing simple random sampling, the study adopted a quantitative approach based on 199 useable respondent's feedback collected through a survey questionnaire of 900 employees from Malaysian SMEs. The statistical analysis was performed using Structural Equation Modeling (Partial Least Square, SmartPLS 3.3.2). Findings The results show that top management and IT infrastructure significantly impact Industry 4.0 implementation and sustainability. In contrast, the analysis also demonstrates that supply chain integration is insignificant to Industry 4.0 implementation in SMEs. The findings also indicate that the relationship between the determinants of Industry 4.0 and TBL sustainability can be mediated by the “effective implementation” of Industry 4.0. Recommendations The study highlights the practical consequences of the role and use of the determinants in Industry 4.0 implementation. Its findings help managers and policy-makers to optimize value creation to achieve sustainable development goals. Limitations and future research Focusing only on Malaysian manufacturing SMEs may restrict the generalization of the study; thus, a benchmarking analysis from other industrial settings is encouraged. The questionnaire-based survey is a further limitation of the study.

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“…SMEs contribute significantly to Malaysia's economy in the short and long term (Yusoff et al, 2018). They represent the vast majority of the business population accounting for 98.5 percent of total enterprises and providing 65.3 percent of total employment (Department of Statistics, 2017).…”

Section: Introductionmentioning

confidence: 99%

Bankruptcy Prediction: Smes in the Hospitality Industry

Abidin

Abdullah

Khaw

2021

International Journal of Banking and Finance

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The objectives of this study are to predict bankruptcy risk among SMEs in the hospitality industry for a three-year horizon period and to investigate the factors that are significant in determining bankruptcy. The contribution of SMEs in the hospitality industry is essential as businesses in the hospitality industry are dominated by SME operators. However, the failure rate among SMEs is relatively high and almost 50 percent of hospitality establishments do not survive beyond five years of operation. The Stepwise logistic model was employed to determine significant predictors that could predict bankruptcy for the period of one year, two years and three years before bankruptcy. Return on assets and firm age were found to be significant in all periods while other variables were identified to be important at a specific period prior to bankruptcy. In addition to return on assets and firm age, debt ratio and total assets turnover were found to be significant predictors of bankruptcy one-year prior to bankruptcy. However, in the two years prior to bankruptcy, debt ratio and total assets turnover were no longer important but current ratio, ownership concentration and gender diversity were found to be significant. As for the three years prior to bankruptcy, additional variables namely debt-to-equity ratio and board size were found to be significant, but ownership concentration and gender diversity ceased to be important. The findings of this study contribute to the limited literature in predicting the bankruptcy risk of small firms for a three-year horizon period by providing empirical evidence from SMEs in the hospitality industry of Malaysia.

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Sustainable Growth in SMEs: A Review from the Malaysian Perspective

Cited by 42 publications

References 40 publications

Do Firm and Entrepreneur Characteristics Play a Role in SMEs’ Sustainable Growth in a Middle-Income Economy like Côte d’Ivoire?

Do Firm and Entrepreneur Characteristics Play a Role in SMEs’ Sustainable Growth in a Middle-Income Economy like Côte d’Ivoire?

Industry 4.0 implementation and Triple Bottom Line sustainability: An empirical study on small and medium manufacturing firms

Bankruptcy Prediction: Smes in the Hospitality Industry

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