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Article
Publication date: 17 August 2017

Abdullah Al Mamun

The purpose of this paper is to examine the attributes of innovation adoption and its effects on the performance of Malaysian manufacturing SMEs.

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1838

Abstract

Purpose

The purpose of this paper is to examine the attributes of innovation adoption and its effects on the performance of Malaysian manufacturing SMEs.

Design/methodology/approach

Quantitative data were collected from 360 randomly selected manufacturing SMEs through structured interviews.

Findings

The findings of the study confirmed that, in Malaysian manufacturing SMEs, the degree of persuasion (i.e. relative advantages, compatibility, complexity, trialability and observability), strategic orientation (i.e. consumer, market and entrepreneurship) and firm antecedents (i.e. prior condition, knowledge and risk orientation) have significant effects on the innovation (i.e. product, process and service) adoption and performance of SMEs.

Practical implications

For policymakers, this study emphasizes the areas to focus on the development of an effective innovation ecosystem for an innovation-led economy. Because SMEs operate with limited resources and capacity, the programs and policies for innovation support systems must focus on providing new innovation information, cost-benefit analyses for new innovation adoption, innovation adoption processes and how new innovations affect performance.

Originality/value

The paper examines an important, but under-researched issue – designed and tested a model under the premises of the DOI and organizational diffusion of innovation theories which improve the knowledge and understanding about the innovation adoption by manufacturing SMEs.

Details

European Journal of Innovation Management, vol. 21 no. 1
Type: Research Article
ISSN: 1460-1060

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Article
Publication date: 8 July 2019

Shelen W.H. Ho

The ASEAN Economic Community (AEC) initiative poses both significant opportunities and difficult challenges to the Malaysian SME communities. This study aims to…

Abstract

Purpose

The ASEAN Economic Community (AEC) initiative poses both significant opportunities and difficult challenges to the Malaysian SME communities. This study aims to investigate the preparedness of the local SMEs to compete and exploit opportunities in a post-AEC era. The aim is to contribute to existing literature and knowledge base on SMEs’ practices in the ASEAN region. The manufacturing sector has been selected for study, and the research efforts focus on procurement competencies. SME procurement practices in the two largest manufacturing sub-sectors in Malaysia – resource-based (RB) and electrical and electronics (E&E) – are explored.

Design/methodology/approach

Preparedness for AEC is gauged from four key performance areas summarized from literature review. Six key research activities are also identified for each performance area from the findings of previous works. Data were collected using a survey instrument and face-to-face interviews. Research methodology is primarily qualitative with quantitative data for robustness check.

Findings

The findings reveal peculiar procurement practices in Malaysian SME manufacturers that have significant implications on their preparedness to compete effectively post-AEC. The findings also highlighted the key influences that have contributed to variations in Malaysian SMEs’ attitude toward trade liberalization challenges and business process improvements in comparison with practices in foreign firms and more advanced economies.

Originality/value

Theoretical models have been adopted across business settings and environments by managers. This study reveals managerial practices in Malaysian SME manufacturers run counter to developed theories. The peculiarities and business attitudes of this resilient economic sector can be an important input to managerial decision-making when analyzing business activities in the region.

Details

Journal of Asia Business Studies, vol. 13 no. 3
Type: Research Article
ISSN: 1558-7894

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Book part
Publication date: 12 February 2021

Azrain Nasyrah Mustapa and Armanurah Mohamad

In Malaysia, small- and medium-sized enterprises (SMEs) are the significant contributor to economic growth. However, since the coronavirus outbreak, Malaysian SME business…

Abstract

In Malaysia, small- and medium-sized enterprises (SMEs) are the significant contributor to economic growth. However, since the coronavirus outbreak, Malaysian SME business activity has been severely slowed. Therefore, during this COVID-19 pandemic crisis, government business supports and assistances are indispensable because if SMEs go down, the country will be affected. This chapter will focus on supports and assistances provided by Malaysian government on SMEs impacted from the COVID-19 pandemic crisis. The chapter will be introduced with the background of SMEs in Malaysia, follow by scenarios of COVID-19, the Movement Control Order imposed by Malaysian government, and the impact of COVID-19 on SMEs. Next the chapter will discuss the government supports and assistances and follow by government monitoring on supports and assistances given. Lastly, the chapter ends with suggestions for SME recovery of COVID-19 pandemic crisis.

Details

Modeling Economic Growth in Contemporary Malaysia
Type: Book
ISBN: 978-1-80043-806-4

Keywords

Open Access
Article
Publication date: 11 August 2021

Shehnaz Tehseen, Fatema Johara, Hussam Al Halbusi, Md Asadul Islam and Fadi Abdel Muniem Abdel Fattah

The purpose of this study is to examine the perceptions of Malaysian and Bangladeshi retail small- and medium-sized enterprise (SME) business owners on the key elements of…

Abstract

Purpose

The purpose of this study is to examine the perceptions of Malaysian and Bangladeshi retail small- and medium-sized enterprise (SME) business owners on the key elements of business growth.

Design/methodology/approach

The construct measurements have all been taken from previous researches. The data were gathered from retail SMEs in Malaysia and Bangladesh in order to evaluate entrepreneurs' perception towards the essential elements of a business performance. Structural equation modeling (SEM) with PLS-technique, specifically Smart-PLS Version 3.2.4, was used to accomplish the study's objectives and analyze the measurements, as well as the structural model.

Findings

According to the findings, Malaysian and Bangladeshi SMEs have different perspectives toward the dimensions of their business performance. For example, Malaysian retail SME owners consider business growth and financial results to be the most important aspects of their success. Retailers consider financial performance to be less critical than non-financial performance when it comes to their business's success. Owners of Bangladeshi retail SMEs, on the other hand, see efficiency relative to competition, and that non-financial performance is the key component to achieving business success. In the sense of Bangladeshi SMEs, market development and financial results are seen as less significant in attaining success.

Research limitations/implications

Since this research was only conducted in Malaysia and Bangladesh, it did not cover a large number of countries. The sample size was limited; therefore, the findings of this study cannot be applied to the entire population of Malaysian and Bangladeshi retail SMEs due to the non-probability sampling technique.

Practical implications

The findings of this study show that entrepreneurs or business owners in the retail sector in Malaysian and Bangladeshi SMEs view the attributes of their business performance differently.

Originality/value

This study adds to the rising context of entrepreneurship by examining SME owners' perception of main business performance dimensions in the scope of Asian retail SMEs.

Details

Rajagiri Management Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0972-9968

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Article
Publication date: 29 August 2019

Haniruzila Hanifah, Hasliza Abdul Halim, Noor Hazlina Ahmad and Ali Vafaei-Zadeh

Innovation performance is an issue that has a profound effect not only on Malaysian large companies but also among small and medium enterprises (SMEs) especially…

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1498

Abstract

Purpose

Innovation performance is an issue that has a profound effect not only on Malaysian large companies but also among small and medium enterprises (SMEs) especially Bumiputera SMEs. The purpose of this paper is to explore the theoretical review of innovation culture pertaining to innovation performance by conducting a literature review on SME studies. The previous reference on innovation performance in Malaysian SMEs is still scarce, even though it is the key benchmark to measure firm performance. It has been demonstrated by the literature that innovation culture is significantly associated with innovation performance. Nonetheless, its effect on Bumiputera SMEs is still underexplored. Thus, this study examines the importance of internal factors (specific human capital and social capital) to innovation culture in driving innovation performance.

Design/methodology/approach

A questionnaire-based survey was conducted to gather data from Bumiputera SMEs. A total of 140 responses were obtained and analyses were carried out using Smart-PLS software to produce interesting findings.

Findings

The findings indicate that social capital (relational capital and social network) has a significant impact on innovation culture and indirectly impacts innovation performance. The findings also reveal that specific human capital does not have significant impact on innovation culture and innovation performance. This paper shows the importance of social capital and how it directly influences Bumiputera SMEs and innovation performance. This result will be encouraging to firms in other developing countries.

Practical implications

Although SMEs play an important role in economic development, their contribution to innovation is small and marginal. This study makes an important contribution by providing information to the Malaysian SMEs, especially those that are of Bumiputera status on the factors that could enhance innovation performance and nurture innovation culture in their organisations. Thus, it is hoped that this study will generate interest among researchers to attain more conclusive evidence about the practice of innovation culture among Malaysian SMEs.

Originality/value

This paper is one of the first to address the mediating effect of innovation culture on specific human capital, social capital and innovation performance.

Details

Benchmarking: An International Journal, vol. 27 no. 1
Type: Research Article
ISSN: 1463-5771

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Article
Publication date: 12 February 2019

Shehnaz Tehseen, Farhad Uddin Ahmed, Zuhaib Hassan Qureshi, Mohammad Jasim Uddin and Ramayah T.

The purpose of this paper is twofold. First, to examine the influence of two dimensions of entrepreneurial competencies, namely, strategic competency and ethical…

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6195

Abstract

Purpose

The purpose of this paper is twofold. First, to examine the influence of two dimensions of entrepreneurial competencies, namely, strategic competency and ethical competency on the growth of small and medium enterprises (SMEs); and second, to explore the role of network competence as a mediator among these understudied variables.

Design/methodology/approach

The data for this study were collected from wholesale and retail-based SMEs in Malaysia through a standard structured questionnaire. PLS–SEM approach was utilised to analyse the data.

Findings

Although the findings did not reveal a direct effect of strategic and ethical competencies of entrepreneurs on SMEs’ growth, these competences, however, were found to be influential in driving their growth when network competence was used as a mediator.

Originality/value

The existence of a mediation effect between strategic and ethical competencies and SMEs’ growth via network competence has provided insights which add new knowledge to the extant entrepreneurship and SMEs’ performance literature.

Details

Asia-Pacific Journal of Business Administration, vol. 11 no. 1
Type: Research Article
ISSN: 1757-4323

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Article
Publication date: 22 August 2019

Arash Asiaei and Nor Zairah Ab. Rahim

The purpose of this study is to develop a model to understand the relationships among technology, organizational and environmental (TOE) contexts, intention to adopt cloud…

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1157

Abstract

Purpose

The purpose of this study is to develop a model to understand the relationships among technology, organizational and environmental (TOE) contexts, intention to adopt cloud computing (IACC) and actual usage of cloud computing (AUCC) in small and medium enterprises (SMEs) in Malaysia as a developing country. More specifically, this paper seeks to explore the mediation effect of IACC on the relationship between TOE context and AUCC.

Design/methodology/approach

A positivist research approach was selected for this study. Drawing largely upon the TOE framework, this study uses survey data from 209 Malaysian SMEs. Structural equation modelling (SEM) based on partial least squares (PLS) was used to assess the structural relations of the research model.

Findings

The results of the structural model show that data security, technology readiness, top management support, competitive pressure and innovativeness are the most significant factors in predicting the adoption of cloud computing in Malaysian SMEs. Further, the results indicate that intention to adopt cloud computing can play a mediating role between TOE factors and the actual usage of cloud computing.

Research limitations/implications

The focus upon Malaysian SMEs may diminish the generalizability of the findings. This study provides profound insight into the management and foundation of cloud computing, different types of cloud services and deployment models that could facilitate the management of enterprise strategic resources and contribute to the performance improvement. This study also provides another important implication for practitioners regarding the absolute necessity of value drivers’ identification within enterprise and understand the causal relationships, which are vital in driving those values.

Practical implications

This study provides several practical guidance for practitioners in deploying cloud services which are most suitable option for their specific technology requirement in their enterprise to enjoy the full benefits of their intangible assets. Another significant implication of this study lies in the fact that it may require a different emphasis on nature and adoption design when there is a higher level of stress on technology-related and cloud computing resources.

Originality/value

This study contributes to the extant literature by developing an integrative model to identify how a wide set of contextual factors can determine the intention to adopt cloud computing and, in turn, influence the actual usage of cloud computing in SMEs in Malaysia as a developing country.

Details

Journal of Science and Technology Policy Management, vol. 10 no. 3
Type: Research Article
ISSN: 2053-4620

Keywords

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Article
Publication date: 20 January 2021

Ariful Islam and Sazali Abd Wahab

SMEs that manage more sustainability focused initiatives into their core business strategy can possibly benefit from lower expenses, reduced threats and new business…

Abstract

Purpose

SMEs that manage more sustainability focused initiatives into their core business strategy can possibly benefit from lower expenses, reduced threats and new business opportunities, but in Malaysia most of the SMEs are still far off in terms of adapting to a sustainable business growth outline from a holistic point of view. Hence, this study aims to serve deeper understanding about a strategic innovation focused sustainable growth model on basis of multidisciplinary QBL-QHIM theoretical perspectives where strategic innovation practices intervene in between desired growth and government support (regulations).

Design/methodology/approach

This conceptual investigation embraces a newly emerged concern of sustainable business growth in SMEs, considering ranges of literature reviews from the disciplines of management and entrepreneurship. The study also systematically explores the concepts of regulations, strategic innovation practices on basis of QBL and QHIM theories to adjust the sustainable business growth model from a holistic angle.

Findings

The outcomes show that multidisciplinary QBL-QHIM conjunction within the interrelationships of the selected constructs holds the potential for innovation focused business growth in a more sustainable, comprehensive and holistic manner. The study also detects that exploitative-explorative innovation practices can possibly mediate in between suitable regulations and sustainable business growth of SMEs, considering supportive external environment.

Research limitations/implications

Researches are encouraged to test the proposed model.

Practical implications

The study indicates a conceptual configuration for policy makers as well as entrepreneurs to ensure sustainable business growth for SMEs. The outcomes of the study also provide useful direction on decision-making process of owner or manager considering social, economic, environmental and spiritual aspects of daily operations.

Social implications

The conceptual model may possibly able to generate more social values, considering a holistic angle into business activities.

Originality/value

The conceptualization is a unique attempt, considering developing regions to extend the current understanding of strategic innovation focused sustainable growth process of SMEs from a holistic angle.

Details

World Journal of Entrepreneurship, Management and Sustainable Development, vol. 17 no. 3
Type: Research Article
ISSN: 2042-5961

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Article
Publication date: 9 January 2009

Izatul Hamimi Abdul Razak, Shahrul Kamaruddin, Ishak Abdul Azid and Indra Putra Almanar

The purpose of this paper is to provide an understanding on implementation and operation of ISO 13485:2003 – “Medical Devices – Quality Management System – Requirements…

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2519

Abstract

Purpose

The purpose of this paper is to provide an understanding on implementation and operation of ISO 13485:2003 – “Medical Devices – Quality Management System – Requirements for Regulatory Purposes” – in the perspective of medical device industries in Malaysia. The study is focused on the Malaysian Small and Medium Enterprises (SMEs) which currently have accredited to ISO 9001:2000 quality management systems.

Design/methodology/approach

Literature research and comparative analysis between ISO 13485:2003 and ISO 9001:2000 standard and requirements. A reference model is developed to assist the Malaysian SMEs towards ISO 13485:2003 accreditation.

Findings

Unlike ISO 9001:2000, ISO 13485:2003 stresses the safety and efficacy of medical devices that are being produced. For this reason risk management is an essential process that needs to be adopted into the ISO 13485:2003 quality management system. Moreover, to demonstrate the effectiveness of the ISO 13485:2003 implementation, this standard has placed great emphasis on documentation requirements which are more prescriptive in insisting on the use of formal procedures.

Originality/value

The paper provides guidelines to ISO 13485:2003 implementations as well as risk management approaches for small and medium‐sized businesses of Malaysian medical device manufacturers, which at the same time maintains its ISO 9001:2000 certification.

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Article
Publication date: 31 August 2010

Azizan Abdullah

The purpose of this paper is to contribute to the understanding of total quality management (TQM) practices at the small to medium‐sized enterprise (SME) level within the

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4559

Abstract

Purpose

The purpose of this paper is to contribute to the understanding of total quality management (TQM) practices at the small to medium‐sized enterprise (SME) level within the under‐researched context of the Malaysian economy.

Design/methodology/approach

Malaysia is an economy that is dependent on SME businesses and the improved performance of these organizations to meet the challenges of the economy in the transition to a modern manufacturing state. Following the extensive literature review and interviews with academics experts in the field of TQM, the objectives of this study were designed. The objectives of this research were to determine differences in performance and the differences in features engaged at high and lower performing businesses. In order to achieve this objective eight purposively selected (three awards winners and five non‐award‐winners) and in‐depth case studies of Malaysian SME were employed.

Findings

The findings of this research show those three levels of TQM application starting with quality control, then a broader application of management involvement with quality assurance process and finally a system‐wide application of TQM that involves a high degree of strategic integration of TQM principles. The integration between functional areas in the factory, formalization of activities and clear strategy were present at the TQM businesses and resulted in effective and efficient systems of customer service, operational excellence and human resource integration.

Research limitations/implications

This research focuses on eight SME businesses that employed simple technology such as plastic injection molding and metal stamping. Therefore, the finding of this research could be generalized between similar businesses in similar industries.

Practical implications

This paper provides an understanding of TQM practices offering design advice for professional managers and academia who work within SME businesses. The research also helps to identify and inform areas of government policy that might assist the performance improvement of such firms.

Originality/value

The paper finds that there is a logic and structure to high performance businesses and the application of TQM; the award‐winning companies perform better over their closest rivals. The importance of promoting TQM on a national scale cannot be under‐estimated and could bring a renewed interest to the relationship between TQM implementation and SMEs' improvement.

Details

Measuring Business Excellence, vol. 14 no. 3
Type: Research Article
ISSN: 1368-3047

Keywords

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