Sources of competitive advantage for Malaysian micro-enterprises
Journal of Entrepreneurship in Emerging Economies
ISSN: 2053-4604
Article publication date: 4 June 2018
Abstract
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.
Keywords
Acknowledgements
The authors would like to express their deepest gratitude to the RAGS (Research Acculturation Grant Scheme, Grant Code: RAGS/2013/UMK/SS05/1, Grant from Ministry of Education, Malaysia).
Citation
Mamun, A.A., Nawi, N.B.C., Permarupan, P.Y. and Muniady, R. (2018), "Sources of competitive advantage for Malaysian micro-enterprises", Journal of Entrepreneurship in Emerging Economies, Vol. 10 No. 2, pp. 191-216. https://doi.org/10.1108/JEEE-05-2017-0037
Publisher
:Emerald Publishing Limited
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