Publication: The Influence Of Strategic Imperatives On Sustainable Business Growth Among Manufacturing Smes In Malaysia
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Date
2024-11
Authors
Hu, Meng Kui
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Abstract
Smes are recognised for their significant contributions to economic growth, the creation of decent jobs, the provision of public goods and services, poverty alleviation and reduced inequality. In malaysia, they make up 97.4% of business establishments, contributing 39.1% to the nation’s gdp, 48.5% to employment and 12.2% to exports in 2023. Conversely, manufacturing smes accounted for 33.8% of sme contribution to gdp, 45.7% to employment and 9.0% to total exports. Due to the nature of smes, which are resource-constraint, approximately 60% of smes experience failure within the first five years of business establishment. Moreover, the covid-19 pandemic exacerbated the failure rate, resulting in the closure of at least 150,000 smes. If this trend continues, smes cannot operate profitably and sustainably. In this regard, the economic expectations of smes to deliver the aspirational goals under various governmental initiatives will be impacted. Therefore, given their importance to the country’s economic agenda, smes must uncover effective measures to enhance their resilience, enabling them to grow sustainably. Against this background, a research framework and eleven hypotheses were conceptualised and developed based on the resource-based view (rbv) and past literature.