Usage of Public Financial Support Services, Entrepreneurial Orientation and Sme Performance: the Case of Malaysia

Abstract

SMEs have received much recognition as they continue to be the backbone in the development and economic growth of nations. This study intended to investigate how the entrepreneurial orientation moderates the relationship between the utilization of the financial support services and the firm’s performance. This study used Structural Equation Modeling to evaluate the impact of financial support services on SME performance. The sample for this study involved SMEs in Malaysia. The result indicates that financial support services significantly associated with the firms’ performance and entrepreneurial orientation failed to influence significantly the relationship between the usage of the services and the performance. The findings of this study could be useful for the government business support services providers to enhance further the quality of services and will provide an understanding of how effectively the characteristics of SMEs related to entrepreneurial orientation would help increase the effectiveness of the support services.

How to Increase Sustainable Rural Tourism Performance? An Empirical Study in Indonesia

“…Moreover, the relationship between government support and entrepreneurial orientation (t-value 3.34, -value 0.000) showed statistical significance. Therefore, the confirmation of H5 aligns with findings from prior research that have asserted the favorable impact of government support on entrepreneurial orientation, as indicated by studies such as Ismail and Zakaria (2018), Yusoff et al (2021), andZaato et al (2021). However, the results in Table 4 failed to provide support for H2 due to the lack of influence of government support on rural tourism sustainable performance (t-value 1.21, -value 0.114).…”

Entrepreneurial Orientation and Open Innovation Promote the Performance of Services SMEs: The Mediating Role of Cost Leadership

“…Naidu et al (2021) argued that contingency theory is especially useful when there is a lack of an established theoretical framework. In prior EO-performance literature, the resource-based view (RBV) theory has taken the dominant position (Bin Yusoff et al 2021;Susanto et al 2021;Meekaewkunchorn et al 2021;Mazhar et al 2022b), although a few researchers underpin their work on contingency theory. For instance, Galbreath et al (2020) examined the relationship between EO and firm performance under the influence of low-cost and differentiation strategies.…”

“…According to Miller (1983), EO means "entrepreneurial firm engages in product-market innovation, undertakes somewhat risky ventures, and is first to come up with proactive innovations beating competitors to the punch". The prior literature highlights that entrepreneurial orientation (EO) plays an important role in enhancing firm performance (Bin Yusoff et al 2021;Fang et al 2021). However, much research has provided varying evidence on the relationship between EO and performance.…”