Factors Impact Business Performance. A Study Among Business Operations In Usm

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Date
2015-11
Authors
Teoh, Saw Beng
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Abstract
The development and contribution of SMEs are crucial for the country to achieve high income country in the year of 2020. In Malaysia, it is reported that the SMEs comprise 98.5% of total establishments in 2014, has contributed 32.7% of the Malaysian Gross Domestic Product (GDP) growth. This research focused on determining the significant factors that impact business performance for small business operators in USM campus. Six independent variables (cost leadership strategy, differentiation strategy, focus strategy, entrepreneurial orientation, business location and productivity propensity), a dependent variable (business performance) and a moderating variable (university supports) were selected through the summarizing previous studies. The data was collected through structured questionnaire from the 75 business operators in USM. The data was analyzed using SPSS17, and SmartPLS 3.0. Cost leadership strategy, differentiation strategy and productivity propensity were found to have significant impact on business performance of the small business operators; and the university supports had negative significant moderating effect on the relationship between cost leadership and business performance with an overall large effect size. Based on the output of this study, therefore, the business operators and the academicians could focus on developing the business strategies such as cost leadership and differentiation strategy. On the other hand, the university could focus on investigating its policies related to cost in order to enhance the business performance of the business operators in the campus and finally contributes to the development of SMEs in the country.
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Factors Impact Business Performance , USM campus.
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