Investigating the internal and external factors that affect growth business intention and Corporate Social Responsibility (CSR) intention among Small Medium Enterprise in Malaysia

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Date
2010
Authors
Mohamad Karudin, Khairulazmi
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Abstract
SMEs represent the largest composition of all established businesses in Malaysia. Hence, the role of SMEs towards the nation’s growth with respect to the economic, employment as well as gross domestic product is substantial. Having said that, only a countable sum of the SME entrepreneurs have the intention to grow their business. This is somewhat a worrying trend given that the economic development of a country depends considerably on the ability these entrepreneurs to grow and expand their businesses. This study is therefore designed based on Institutional Theory that consists regulatory, cognitive and normative as main dimensions to investigate the internal and external factors that will influence SME growth intention and SME CSR Intention in Malaysia. In order to enhance the findings, the effect of self efficacy on cognitive dimension is accounted for. The findings reveal that regulatory dimension does not have any significant impact on SMEs intention to grow and to practice CSR, whereas other dimension namely cognitive and normative dimensions do have positive impacts on SMEs intention to grow and to practice CSR. In addition, self efficacy is found to have a positive influence on cognitive dimension.
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Keywords
Business Administration , Corporate Social Responsibility , SMEs
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