Critical success and failure factors in SMEs - the retailing sector / Sofiah Abd Rahman ... [et al.]
Recently, SMIDEC has extended its instrument, acronym SCORE, to measure the 'state of health' of SMEs in the distributive sector. Through this tool, SMEs are rated against six dimensions of capabilities: management, financial, compliance, stock management, marketing, and operations managem...
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| Format: | Article |
| Language: | English |
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Research Management Institute (RMI)
2008
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| Online Access: | https://ir.uitm.edu.my/id/eprint/13067/ |
| _version_ | 1848803230876696576 |
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| author | Abd Rahman, Sofiah Mohd Roslin, Rosmimah Salleh, Zarina Mohd Yusof, Yuslina Liza |
| author_facet | Abd Rahman, Sofiah Mohd Roslin, Rosmimah Salleh, Zarina Mohd Yusof, Yuslina Liza |
| author_sort | Abd Rahman, Sofiah |
| building | UiTM Institutional Repository |
| collection | Online Access |
| description | Recently, SMIDEC has extended its instrument, acronym SCORE, to measure the 'state of health' of SMEs in the distributive sector. Through this tool, SMEs are rated against six dimensions of capabilities: management, financial, compliance, stock management, marketing, and operations management. The outcome provides an input in identifying the appropriate incentive/assistance and in linking potential SMEs to suitable global partners. This study primarily sets out to assess and enhance this instrument and to compare the success/failure factors of SMEs against SME categorization and ethnicity. An exploratory study by means of focus groups was first undertaken and as a result, non-compliance was included in this study. 'Innovation', another critical dimension to business success, was also incorporated into the framework. Using a stratified area sampling method, 503 SMEs were
administered the survey instrument. Data analyses uncovered several key findings. Bumiputera SMEs had better educational background than their non-Bumiputeras counterparts, they claimed to work longer hours, and they
rated themselves as having higher positive entrepreneurial traits but their returns (both on revenue and profits) were lower, indicating inefficiency and ineffectiveness in running the retail businesses. All capabilities contributed
to the retail SMEs success led by innovation (fi = 0.362), marketing (fi = 0.310), and operations management (fi = 0.310), while non-compliance, proved to be detrimental (fi = -0.195). This study, thus, points out the need to include 'innovation' capability in measuring the 'state of health' of SMEs in the distributive sector and must be included in SCORE. |
| first_indexed | 2025-11-14T21:35:57Z |
| format | Article |
| id | uitm-13067 |
| institution | Universiti Teknologi MARA |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T21:35:57Z |
| publishDate | 2008 |
| publisher | Research Management Institute (RMI) |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | uitm-130672016-06-30T00:15:49Z https://ir.uitm.edu.my/id/eprint/13067/ Critical success and failure factors in SMEs - the retailing sector / Sofiah Abd Rahman ... [et al.] smrj Abd Rahman, Sofiah Mohd Roslin, Rosmimah Salleh, Zarina Mohd Yusof, Yuslina Liza Malaysia Small business Retail trade Recently, SMIDEC has extended its instrument, acronym SCORE, to measure the 'state of health' of SMEs in the distributive sector. Through this tool, SMEs are rated against six dimensions of capabilities: management, financial, compliance, stock management, marketing, and operations management. The outcome provides an input in identifying the appropriate incentive/assistance and in linking potential SMEs to suitable global partners. This study primarily sets out to assess and enhance this instrument and to compare the success/failure factors of SMEs against SME categorization and ethnicity. An exploratory study by means of focus groups was first undertaken and as a result, non-compliance was included in this study. 'Innovation', another critical dimension to business success, was also incorporated into the framework. Using a stratified area sampling method, 503 SMEs were administered the survey instrument. Data analyses uncovered several key findings. Bumiputera SMEs had better educational background than their non-Bumiputeras counterparts, they claimed to work longer hours, and they rated themselves as having higher positive entrepreneurial traits but their returns (both on revenue and profits) were lower, indicating inefficiency and ineffectiveness in running the retail businesses. All capabilities contributed to the retail SMEs success led by innovation (fi = 0.362), marketing (fi = 0.310), and operations management (fi = 0.310), while non-compliance, proved to be detrimental (fi = -0.195). This study, thus, points out the need to include 'innovation' capability in measuring the 'state of health' of SMEs in the distributive sector and must be included in SCORE. Research Management Institute (RMI) 2008 Article PeerReviewed text en https://ir.uitm.edu.my/id/eprint/13067/1/AJ_SOFIAH%20ABD%20RAHMAN%20SMRJ%2008%201.pdf Abd Rahman, Sofiah and Mohd Roslin, Rosmimah and Salleh, Zarina and Mohd Yusof, Yuslina Liza (2008) Critical success and failure factors in SMEs - the retailing sector / Sofiah Abd Rahman ... [et al.]. (2008) Social and Management Research Journal (SMRJ) <https://ir.uitm.edu.my/view/publication/Social_and_Management_Research_Journal_=28SMRJ=29.html>, 5 (2). pp. 109-121. ISSN 1675-7017 https://smrj.uitm.edu.my/ |
| spellingShingle | Malaysia Small business Retail trade Abd Rahman, Sofiah Mohd Roslin, Rosmimah Salleh, Zarina Mohd Yusof, Yuslina Liza Critical success and failure factors in SMEs - the retailing sector / Sofiah Abd Rahman ... [et al.] |
| title | Critical success and failure factors in SMEs - the retailing sector / Sofiah Abd Rahman ... [et al.] |
| title_full | Critical success and failure factors in SMEs - the retailing sector / Sofiah Abd Rahman ... [et al.] |
| title_fullStr | Critical success and failure factors in SMEs - the retailing sector / Sofiah Abd Rahman ... [et al.] |
| title_full_unstemmed | Critical success and failure factors in SMEs - the retailing sector / Sofiah Abd Rahman ... [et al.] |
| title_short | Critical success and failure factors in SMEs - the retailing sector / Sofiah Abd Rahman ... [et al.] |
| title_sort | critical success and failure factors in smes - the retailing sector / sofiah abd rahman ... [et al.] |
| topic | Malaysia Small business Retail trade |
| url | https://ir.uitm.edu.my/id/eprint/13067/ https://ir.uitm.edu.my/id/eprint/13067/ |