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