Adoption Of Problem Solving Tools In Manufacturing Sector Of Malaysia Small And Medium Enterprises
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Date
2015-11
Authors
Low, Rong Quan
Journal Title
Journal ISSN
Volume Title
Publisher
Universiti Sains Malaysia
Abstract
In the competitive world, the competitive level of the company played a very essential role especially to the SMEs where they are having limited resources. The Manufacturing Sector of SMEs played an important role in the economy growth of many countries such as Malaysia as 5.9% of businesses of the total were from Manufacturing Sector. However, the bankruptcy level increased in the period of five years in Malaysia which the main root cause is because manufacturing sector of SMEs did not solve daily problems and their product’s quality were lowered. Hence Problem Solving Tools are recommended to the SMEs. However, the adoption level was only at low level. This research was conducted to find out the factors that influence the high level and low level of adoption of the tools in Manufacturing Sector of SMEs in West Malaysia. 1000 sets of questionnaires were sent to the Manufacturing Sectors of SMEs and 141 data sets were accepted for the final data analysis. The SPSS software was used for analysis and the data of the results were analyzed with the help of the Discriminant Analysis technique. As a result, Complexity, Cost, Relative Advantage, Current Comfort Level of the Problem Solving Process, Organizational Resources, External Pressure and Government Support were found out to be significant predictors that influence adoption level of Problem Solving Tools whereas Compatibility and External Support were found not significant.
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Keywords
Manufacturing Sector of SMEs