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Book part
Publication date: 12 February 2021

Armanurah Mohamad, Azrain Nasyrah Mustapa and Hanissah A. Razak

Small Medium Enterprises (SMEs) are the backbone of Malaysian economy since they are the largest category of business in the country and as such provide paramount contributions…

Abstract

Small Medium Enterprises (SMEs) are the backbone of Malaysian economy since they are the largest category of business in the country and as such provide paramount contributions. However, referring to the past studies on SMEs in Malaysia from the year 2001 to the most recent (2020) studies, it was found that SMEs faced various issues, challenges, and hindrances, thus preventing the growth of their operations. Many SMEs also have problems to ensure their sustainability as well as to remain competitive in the market and changing environment. This chapter will provide an overview of SMEs in Malaysia. The discussion begins with the definition of Malaysian SMEs, followed by the contributions of SMEs in Malaysia. The last part is on issues and challenges faced by SMEs entrepreneurs in Malaysia.

Article
Publication date: 6 July 2012

Ernawati Mustafa Kamal and Roger Flanagan

The construction industry is a very important part of the Malaysian economy. The government's aim is to make the industry more productive, efficient and safe. Small to medium

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Abstract

Purpose

The construction industry is a very important part of the Malaysian economy. The government's aim is to make the industry more productive, efficient and safe. Small to medium‐sized enterprises (SMEs) are at the core of the Malaysian construction industry and account for about 90 per cent of companies undertaking construction work. One of the main challenges faced by the Malaysian construction industry is the ability to absorb new knowledge and technology and to implement it in the construction phase. The purpose of this paper is to consider absorptive capacity in Malaysian construction SMEs in rural areas.

Design/methodology/approach

The research was conducted in three stages: first, understanding the Malaysian construction industry; second, a literature review on the issues related to absorptive capacity and discussions with the Construction Industry Development Board (CIDB); and third, multiple case studies in five construction SMEs operating in a rural area to validate the factors influencing absorptive capacity.

Findings

Nine key factors were identified influencing absorptive capacity in Malaysian construction SMEs operating in rural areas. These factors involved: cost and affordability; availability and supply; demand; infrastructure; policies and regulations; labour readiness; workforce attitude and motivation; communication and sources of new knowledge and; culture.

Originality/value

The key factors influencing absorptive capacity presented in this paper are based on validation from the case studies in five construction SMEs in Malaysia. The research focuses on how they operate in rural areas; however, the research results have wider application than just Malaysia. The key factors identified as influencing absorptive capacity can serve as a basis for considering knowledge absorption in the wider context by SMEs in other developing countries.

Details

Journal of Engineering, Design and Technology, vol. 10 no. 2
Type: Research Article
ISSN: 1726-0531

Keywords

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

Article
Publication date: 1 July 2022

Zulhamri Abdullah, Chinedu Eugenia Anumudu and Syed Hassan Raza

This study aims to examine the current state of mission and vision statements on the company websites of fast-growing Malaysian and Singaporean small- and medium-sized enterprises

Abstract

Purpose

This study aims to examine the current state of mission and vision statements on the company websites of fast-growing Malaysian and Singaporean small- and medium-sized enterprises (SMEs) and analyze how these attributes are functionally used to build a distinct digital organizational identity.

Design/methodology/approach

The content analysis method was used to examine the similarities and differences among 170 Malaysian and Singaporean-selected SMEs based on Aaker’s five brand personality scales.

Findings

The findings demonstrated that there were explicit discrepancies between Malaysian and Singaporean SMEs in the applications of brand personality attributes. The findings also identified an increase in communicating mission and vision statements on the websites of both Malaysian and Singaporean SMEs. This emphasizes the need for Malaysian and Singaporean companies to intensify their efforts to develop a notable digital organizational identity.

Research limitations/implications

This study endeavors to provide novel insights into the digital communication practices of SMEs in building digital organization identity based on brand personality elements. Therefore, this study theoretically advances Aaker’s brand personality framework by incorporating digital organizational identity as a concept of Aaker’s brand personality from the SME perspective. This study contributes to the organizational identity literature by highlighting the need for these SMEs to integrate brand personality dimensions to compete with leading global companies.

Practical implications

The findings indicate that managers of SMEs can develop a unique digital organizational identity by communicating their vision and mission statements on their websites as a strategic asset for sustaining corporate reputation.

Originality/value

To date, little is known about the inevitable adaptation and application of communication that occurs when using digital means to develop a digital organizational identity. To the best of the authors’ knowledge, this is the first study to establish how Asian SMEs communicate their unique brand personality through websites to build their digital organizational identity.

Article
Publication date: 8 May 2018

Abdoulaye N’Guilla Sow, Rohaida Basiruddin, Jihad Mohammad and Siti Zaleha Abdul Rasid

In Malaysia, as in most of the developing countries, small businesses play pivotal roles in the economy. Yet, despite the contribution of small businesses, previous researchers…

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Abstract

Purpose

In Malaysia, as in most of the developing countries, small businesses play pivotal roles in the economy. Yet, despite the contribution of small businesses, previous researchers have overlooked the fraud issues that are threating the sustainability of those businesses and instead focus mainly on large and public listed companies. Therefore, the purpose of this study is to identify how small businesses can prevent fraudulent activities.

Design/methodology/approach

This study used self-administer questioners and distributed 126 questionnaires to general managers, financial managers and supervisors in Malaysian small and medium enterprises (SMEs). Multiple regression was used to test the theoretical model.

Findings

The output of multiple regressions showed that culture of honesty and high integrity, anti-fraud processes and controls and appropriate oversight functions has a positive and significant effective on fraud prevention mechanisms.

Practical implications

Overall, this study suggests effective fraud prevention measures to mitigate the fraud risk surrounding Malaysian SMEs and other SMEs in emerging countries.

Originality/value

There has been a dearth of empirical studies on the effect of culture of honesty, anti-fraud processes and appropriate oversight functions on effective fraud prevention in non-western context, and this study has fulfilled the need for this research.

Details

Journal of Financial Crime, vol. 25 no. 2
Type: Research Article
ISSN: 1359-0790

Keywords

Book part
Publication date: 15 April 2024

Akansha Mer and Amarpreet Singh Virdi

Introduction: Small- and medium-sized enterprises (SMEs) play a vital role in the economic development of economies by generating job opportunities. Considering their…

Abstract

Introduction: Small- and medium-sized enterprises (SMEs) play a vital role in the economic development of economies by generating job opportunities. Considering their significance, understanding the challenges and skills required in these enterprises becomes essential and timely.

Purpose: This study aims to discuss the limitations and skill gaps faced by SMEs in emerging economies, such as India, Indonesia, Brazil, China, Malaysia, Ghana, Hungary, Saudi Arabia, South Africa, Türkiye, UAE, Iran, Kazakhstan, Türkiye, Zambia, Romania, and Vietnam.

Methodology: The study adopts a systematic review and meta-synthesis approach, utilising a literature review to comprehensively analyse, synthesise, and map the existing literature by identifying overarching themes.

Findings: The study examines the challenges SMEs encounter in emerging economies, including resource scarcity, limited access to credit, inadequate infrastructure, low technology adoption, restricted global market access, and ineffective marketing strategies. There is a notable shortage of skilled labour and development initiatives within SMEs in India even though the country has a sizeable pool of qualified workers. There is a pressing need for additional technical and managerial skills to remain competitive in the market. The findings of this study will assist HR managers in addressing skill shortages among employees in SMEs operating within emerging economies

Details

Contemporary Challenges in Social Science Management: Skills Gaps and Shortages in the Labour Market
Type: Book
ISBN: 978-1-83753-170-7

Keywords

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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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

Article
Publication date: 29 April 2014

Syed Zamberi Ahmad

The purpose of this paper is to investigate the international business strategy, key driving factors and the major barriers that may hinder the internationalisation progress of…

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Abstract

Purpose

The purpose of this paper is to investigate the international business strategy, key driving factors and the major barriers that may hinder the internationalisation progress of Malaysian small and medium-sized enterprises (SMEs).

Design/methodology/approach

Based on the aims of the study, the paper encompasses both quantitative and qualitative data. For quantitative data, structured questionnaires were used, and a total of 216 SMEs that engaged in international business participated using purposeful sampling, covering all the states in Peninsular Malaysia. For the collection of qualitative data, the study involved in-depth interviews with 25 owners/managers of SMEs.

Findings

The findings indicate that the motives of SMEs for international expansion are varied, and that SMEs still face many institutional challenges, which have prevented them from making a greater contribution.

Research limitations/implications

Due to lack of resources, firms from West Malaysia were included. West Malaysian firms may well possess characteristics concerning the challenges and issues to internationalisation that are unique to their region.

Originality/value

The paper addresses a knowledge gap in respect of the internationalisation process of SMEs in the context of Southeast Asia. The findings of this paper will have relevance for policymaking and supportive measures at the government level to create an environment that will stimulate the competitiveness of SMEs in their attempts for internationalisation.

Details

Journal of Asia Business Studies, vol. 8 no. 2
Type: Research Article
ISSN: 1558-7894

Keywords

Article
Publication date: 2 April 2024

Nurin Athilah Masron, Zaini Zainol and Suhaiza Ismail

The objectives of this paper are twofold. First, it aims to investigate the impact of the COVID-19 pandemic on the activities and performance of small and medium-sized enterprises

Abstract

Purpose

The objectives of this paper are twofold. First, it aims to investigate the impact of the COVID-19 pandemic on the activities and performance of small and medium-sized enterprises (SMEs) government suppliers involved in government green procurement (GGP). Second, it examines the differences in the impact of COVID-19 between small and medium-sized groups.

Design/methodology/approach

The study used a questionnaire survey that was distributed to SMEs listed in the MyHIJAU directory that supply green goods and services to the government. Of the total 394 sample respondents, 126 usable questionnaires were received, representing a usable response rate of 31.98%. Descriptive analysis of mean score, standard deviation and mean score ranking was used to analyse the overall results. A t-test analysis was carried out to examine the differences between the small and medium-sized groups of companies.

Findings

The study discovers that the SME government suppliers involved in GGP were impacted by the COVID-19 pandemic. The top ranked impacts are that “the COVID-19 pandemic has heightened health and safety practices among the employees”, “the COVID-19 pandemic has reduced company’s turnover”, “the COVID-19 pandemic has forced the company to implement a cost reduction strategy”, “the COVID-19 pandemic has had a negative impact on the company’s ability to deliver work, supplies or services to the government” and “the COVID-19 pandemic has forced the company to incur higher production costs for green products or services provided”. However, there is no significant difference between the impact of the COVID-19 pandemic on the small and medium-sized group of enterprises.

Originality/value

The present study is among the fewer studies on the impact of the COVID-19 pandemic, with particular focus on SME government suppliers involved in GGP.

Details

Journal of Economic and Administrative Sciences, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1026-4116

Keywords

Article
Publication date: 1 October 2018

Malar Gunasegaran, Rohaida Basiruddin, Siti Zaleha Abdul Rasid and Adriana Mohd Rizal

The purpose of this paper is to identify the extent and type of fraud scheme, prevention mechanisms and challenges experienced by the Malaysian medium enterprises.

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Abstract

Purpose

The purpose of this paper is to identify the extent and type of fraud scheme, prevention mechanisms and challenges experienced by the Malaysian medium enterprises.

Design/methodology/approach

The multiple case studies approach has been used in this study. The data were collected through interviews with the directors, owners, managers and supervisors of three medium-size enterprises.

Findings

The findings suggest that the fraud cases experienced by the enterprises were related to broken trust and non-cash larceny. The implementation of fraud prevention mechanisms in the enterprises seem to be very limited because of resources and budget constraints.

Practical implications

The findings of the study have an alarming implication for the owners and directors of the selected medium-size organizations. They seem to have shown proactivity and to have responded to fraud in their organizations by implementing fraud prevention mechanisms; however, not to the extent that large organizations have done. This fact may expose the companies to the risk of losing their competitiveness and the ability to survive in the marketplace.

Originality/value

This paper contributes to the growing literature on the studies of fraud scheme and the fraud prevention mechanism in the medium-size enterprises, particularly in the context of developing country. Prior studies in these areas have predominantly been undertaken by large organizations of developed countries, which offer different environment, litigation and institutional setting thus limits the generalizability of fraud prevention mechanism to small- and medium-size businesses.

Details

Journal of Financial Crime, vol. 25 no. 4
Type: Research Article
ISSN: 1359-0790

Keywords

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