The Critical success factors for organizational performance of SMEs in Malaysia: a partial least squares approach

Purpose – This paper seeks to examine the relationship between the determinants of organizational performance such as top management support, customer focus, employees’ orientation, technology orientation, and entrepreneurial orientation in Malaysia. Design/methodology/approach – A quantitative...

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Main Authors: Lo, May-Chiun, Yin, Chai Wang, Constance Rinen, Justin Wah, Ramayah, T.
Format: Article
Language:English
Published: FECAP 2016
Subjects:
Online Access:http://ir.unimas.my/id/eprint/13571/
http://ir.unimas.my/id/eprint/13571/7/The%20Critical%20success%20factors%20for%20organizational%20performance%20of%20SMEs%20in%20Malaysia%20%28abstract%29.pdf
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author Lo, May-Chiun
Yin, Chai Wang
Constance Rinen, Justin Wah
Ramayah, T.
author_facet Lo, May-Chiun
Yin, Chai Wang
Constance Rinen, Justin Wah
Ramayah, T.
author_sort Lo, May-Chiun
building UNIMAS Institutional Repository
collection Online Access
description Purpose – This paper seeks to examine the relationship between the determinants of organizational performance such as top management support, customer focus, employees’ orientation, technology orientation, and entrepreneurial orientation in Malaysia. Design/methodology/approach – A quantitative research design was applied for this study. Data was collected through survey questionnaires applied to business owners and senior managers working in SMEs located in three Malaysian states, using purposive sampling technique. SmartPLS 2.0 (M3) was applied to test the hypotheses. Findings – The findings suggest that both technology and entrepreneurial orientations are significant success factors for SMEs in terms of financial and non-financial performance. In addition, top management support is found to be significantly and positively related to financial performance. Originality/value – The empirical analysis indicates that technology orientation and entrepreneurial orientation add more value to organizational performance. Therefore, it is vital for SMEs to focus on these two critical success factors in order to improve their performance.
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institution Universiti Malaysia Sarawak
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language English
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publishDate 2016
publisher FECAP
recordtype eprints
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spelling unimas-135712016-09-22T18:58:41Z http://ir.unimas.my/id/eprint/13571/ The Critical success factors for organizational performance of SMEs in Malaysia: a partial least squares approach Lo, May-Chiun Yin, Chai Wang Constance Rinen, Justin Wah Ramayah, T. HD28 Management. Industrial Management Purpose – This paper seeks to examine the relationship between the determinants of organizational performance such as top management support, customer focus, employees’ orientation, technology orientation, and entrepreneurial orientation in Malaysia. Design/methodology/approach – A quantitative research design was applied for this study. Data was collected through survey questionnaires applied to business owners and senior managers working in SMEs located in three Malaysian states, using purposive sampling technique. SmartPLS 2.0 (M3) was applied to test the hypotheses. Findings – The findings suggest that both technology and entrepreneurial orientations are significant success factors for SMEs in terms of financial and non-financial performance. In addition, top management support is found to be significantly and positively related to financial performance. Originality/value – The empirical analysis indicates that technology orientation and entrepreneurial orientation add more value to organizational performance. Therefore, it is vital for SMEs to focus on these two critical success factors in order to improve their performance. FECAP 2016 Article PeerReviewed text en http://ir.unimas.my/id/eprint/13571/7/The%20Critical%20success%20factors%20for%20organizational%20performance%20of%20SMEs%20in%20Malaysia%20%28abstract%29.pdf Lo, May-Chiun and Yin, Chai Wang and Constance Rinen, Justin Wah and Ramayah, T. (2016) The Critical success factors for organizational performance of SMEs in Malaysia: a partial least squares approach. Review of Business Management, 18 (61). pp. 370-391. ISSN 18064892 DOI:10.7819/rbgn.v18i61.3058
spellingShingle HD28 Management. Industrial Management
Lo, May-Chiun
Yin, Chai Wang
Constance Rinen, Justin Wah
Ramayah, T.
The Critical success factors for organizational performance of SMEs in Malaysia: a partial least squares approach
title The Critical success factors for organizational performance of SMEs in Malaysia: a partial least squares approach
title_full The Critical success factors for organizational performance of SMEs in Malaysia: a partial least squares approach
title_fullStr The Critical success factors for organizational performance of SMEs in Malaysia: a partial least squares approach
title_full_unstemmed The Critical success factors for organizational performance of SMEs in Malaysia: a partial least squares approach
title_short The Critical success factors for organizational performance of SMEs in Malaysia: a partial least squares approach
title_sort critical success factors for organizational performance of smes in malaysia: a partial least squares approach
topic HD28 Management. Industrial Management
url http://ir.unimas.my/id/eprint/13571/
http://ir.unimas.my/id/eprint/13571/
http://ir.unimas.my/id/eprint/13571/7/The%20Critical%20success%20factors%20for%20organizational%20performance%20of%20SMEs%20in%20Malaysia%20%28abstract%29.pdf