Characteristics Of SMEs As Determinants Of Organizational Performance
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Date
2014
Authors
Chue, Kar Wen
Journal Title
Journal ISSN
Volume Title
Publisher
Universiti Sains Malaysia
Abstract
Small and Medium Enterprises (SMEs) are important economy entities in a country
development. They contribute more than 30% of the country’s Gross Domestic Product (GDP) and hire as many as 4 million employees (59% of total workforce) in the country. There is a significant underperformance in the SMEs in Malaysia compared with other country’s SMEs. This research focused on determining the significant SMEs firm’s characteristics in enhancing organizational performance in Malaysia. Five independent variables (owner’s characteristics, firm’s network, accessibility to financing, technology savvy and firm’s location), a dependent variable (organizational performance) and a moderating variable (government policies) have been selected through the summarizing previous studies. The data was collected through structured questionnaire from the 121 SMEs in Malaysia. The data was analyzed using SPSS17, and SmartPLS version 2.0M3. Firm’s network, technology savvy, and firm’s location significantly were found to be significant on organizational performance of SMEs; and the government policies are significantly moderating the effect between owner’s characteristics and SMEs organizational performance; as well as effectively moderate the relationship between firm’s location and SMEs organizational performance. Therefore the entrepreneurs and the academicians could focus on the developing the SMEs’ network, technology savvy and firm’s location; whereas the government could focus on developing the owners (or the entrepreneurs) and firm’s location in order to enhance the SMEs organizational performance, finally contributes to the economy of the country.
Description
Keywords
Small and Medium Enterprises , Gross Domestic Product