Stimulating Malaysian SME Performance: The Synergistic Role Of Entrepreneurial Capital, Entrepreneurial Competencies And Institutional Support

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Date
2016-06
Authors
Mustapha, Yanti Aspha Ameira
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Abstract
This study looks at the synergistic role of entrepreneurial capital, entrepreneurial competencies and government assistance on the performance of small medium enterprises (SME) in Malaysia. Grounded in the model of entrepreneurial competencies and the institutional theory, the study provides a robust theoretical framework for exploring the impact of individual capital (human and network), individual abilities (entrepreneurial competencies) and government support (usefulness) on SME performance (financial and non-financial). Thus far, previous studies have looked into these contributors to performance in isolation to one another and results have been inconclusive. This thesis reconciles these discrepancies and provides a more comprehensive explanation to the entrepreneur-performance puzzle. A research model is developed to identify and evaluate the driving factors affecting entrepreneurs’ competencies and SME performance. A web survey technique is employed to collect data from SME owner-managers. Two-hundred and forty-six usable responses were received and further analyzed using the appropriate statistical procedures. The research model is tested using the partial least squares (PLS) technique. SMARTPLS2.0M3 is used to validate the research model and test the proposed research hypothesis. The results confirm that entrepreneurs’ capital i.e. specific human capital, relational capital and social network, do not have a direct influence of SME performance. However, individual endowment helps in enhancing one’s entrepreneurial competencies, namely strategic-opportunistic, learning and social competencies. As entrepreneurs gain more experience and being connected with other entrepreneurs as well as gaining information from the surround environment, they would improve these competencies and subsequently the firm performance. Another important finding is that government support usage was not found to moderate the competency-performance relationship. One contribution from this study is that competencies could be taught and learnt. Policy makers, practitioners and relevant institutions could benefit from this study because this study will highlight ways in which competencies are enhanced and also the significance of government support in further improving the state of the SME sector.
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The synergistic role of entrepreneurial capital, entrepreneurial competencies , of small medium enterprises (SME) in Malaysia.
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