SMEs – Jurnal Pengurusan

Digital Financial Literacy, Financial Inclusion, and SME Performance in Malaysia: Evidence from Threshold Regression

asriwn — Mon, 17 Nov 2025 07:35:58 +0000

This study examines the effect of digital financial literacy on firm performance among selected small and medium-sized enterprises (SMEs) in Malaysia. The level of digital financial literacy is measured as a percentage, based on firm’s understanding or knowledge, experience, awareness of potential risks, and skills. The level of financial inclusion for each firm, as the threshold variable, is calculated using a newly constructed firm-level financial inclusion index. The relationship between digital financial literacy and firm performance is subsequently estimated using a cross-sectional threshold regression technique. The main findings reveal the digital financial literacy-performance nexus is contingent on the level of financial inclusion, indicating that digital financial literacy exhibits a non-monotonic positive effect on firm performance. The positive effect is evident at high and low levels of financial inclusion. These findings should motivate policymakers in Malaysia to exert greater efforts to raise awareness of digital financial literacy as a means of supporting sustainable firm performance. The utilization of digital plays a crucial role in mitigating and facilitating SMEs’ access to , thereby enhancing firm performance.

Corporate Social Responsibility and SME Sustainability: A Systematic Literature Review

asriwn — Wed, 02 Jul 2025 00:03:11 +0000

Given the growing importance of sustainability and the unique challenges faced by small and medium-sized enterprises (SMEs), this study conducted a systematic literature review on the relationship between SMEs’ corporate social responsibility (CSR) and corporate sustainability (CS). A total of 41 peer-reviewed articles published between 2003 and 2023 were analyzed, revealing that CSR positively influences CS across including environmental, social, and financial dimensions. However, notable differences were found between SMEs and large enterprises in terms of CSR implementation mechanisms. While large enterprises rely on formal structures like corporate governance, SMEs demonstrate more diverse and informal approaches. The review also identified key research gaps: a lack of integrated, multidimensional analyses; limited comparisons of firm size; and an overreliance on subjective primary data. To address these limitations, more comprehensive, comparative, and data-driven studies are required. This paper contributes to a deeper understanding of how CSR can enhance SMEs’ long-term sustainability and offers valuable directions for future research and practice.

Building SMEs Competitive Advantage in Export Markets: The Role of Human Capital and Relationship Quality

Nazira Adnan — Wed, 12 Oct 2022 03:16:04 +0000

Small businesses look for cooperative relationships with foreign partners to build competitive advantage in export markets. In addition, the ability of small businesses to compete is also strongly related to human capital specifically the managerial competences. This study aims to investigate the effect of managerial competences on the relationship quality, which in turn affects the competitive advantage of small business in export markets. Data were collected among small and medium manufacturers. A total of 228 small and medium businesses participated in this study. This study employs structural equation modelling approach for data analysis. The findings indicate that human capital is a function of relationship quality and competitive advantage. In addition, relationship quality is significantly related to competitive advantage. Finally, relationship quality partially mediates the relationship between human capital and competitive advantage. At the end of this paper, the conclusion and discussion are presented, and limitation and future study are discussed.

Insight into the Relationship between Entrepreneurship Orientations and Performance: The Case of SME Exporters in Malaysia

apriyaliwahab — Tue, 11 Oct 2022 06:01:41 +0000

The rise in the number of small and medium businesses competing in foreign markets has led to growing interest among researchers in the study of the international activities of these firms. Previous studies have focused on how small businesses successfully compete in the market alongside larger and resourceful firms despite the former’s scarcity of resources. In this light, we develop the conceptual framework that is based upon the resource-based view, and explore the link between firm-specific resources and export performance. This study examines the relationships between entrepreneurial dimensions, namely pro-activeness, risk-taking, and innovativeness, and the performance of the exporter. Based on a sample of 220 SMEs, this study found that pro-activeness affects export performance positively and significantly. In addition, innovativeness was found to be significantly associated with export performance. Finally, the paper ends with the conclusion, a presentation of the limitations of the study, and suggestions for future research.

The Moderating Function of Communication on the Relationship between Entrepreneurship Orientation, Learning Orientation and International Relationship Trust

amrularshad — Sun, 09 Oct 2022 14:34:59 +0000

Small and medium-sized enterprise exporters that build trusting relationships with foreign importers are strategically helpful in overcoming the challenges brought about by internationalization. Trust facilitates knowledge sharing between partners, and it allows small firms to expand their foreign market knowledge and consequently reduce their uncertainties that are caused by the unfamiliarity of international markets. Although building trust is central to fostering inter- organizational relationships, limited research effort has been exerted on the process of developing and maintaining a trusting relationship. Based on resource-based view, this study assumes that capability in building international relationship trust is a function of organizational unique cultural orientations namely entrepreneurship orientation and learning orientation. Furthermore, the literature demonstrates that communication between partners moderates the relationship between entrepreneurship orientation and learning orientation, and relationship trust. Data was collected from small and medium business exporters in manufacturing sector. The sample consisted of 179 participants and data was analyzed using hierarchical moderated regression analysis. The results show that the relationship between learning orientation and trust is moderated by communication. In addition, the relationship between entrepreneurship orientation and trust is positive and significant. At the end of this paper, discussion, implications and limitations are presented.

Board of Directors and Ownership Structure: A Study on Small and Medium Enterprises (SMEs) in Malaysia

sufizulkarnain01 — Sat, 08 Oct 2022 17:21:39 +0000

Small- and medium-sized enterprises (SMEs) do not gain sufficient economic returns despite their significant economic contributions. A possible cause of poor SME performance is weak corporate governance. However, the corporate governance of SMEs is rarely investigated. Ownership structure provides SMEs with a monitoring mechanism that enhances performance. This study examines the relationships between board characteristics (including size, composition boards, CEO duality, expertise, and ethnicity) and SME performance in Malaysia. This study also explores how such relationships can be moderated by monitoring ownership structure. Survey results on SMEs in Klang Valley and Selangor areas show that non-executive boards and CEO duality are significantly and positively related to firm performance. In comparison, management ownership is significantly and negatively related to performance. Board size, expertise, ethnicity, and family ownership are not significantly related to SME performance. Findings indicate that good corporate governance improves decision making and firm performance. Furthermore, agency theory can explain conflict of interest in SMEs and the importance of corporate governance in enhancing their performance.

Catastrophe of E-Commerce among Malaysian SMEs – Between Its Perceived and Proven Benefits

syazwinaramjan — Sat, 08 Oct 2022 16:39:40 +0000

There is a substantial interest in the adoption of e-commerce by firms, particularly the small and medium enterprises (SMEs). SMEs are said to gain considerably from using the e-commerce because the Internet provides equal access to both SMEs and large organizations. It is also said SMEs which adopt e-commerce will improve their businesses and finally increase their profit. However, little is known concerning the benefits that SMEs have gained by adopting e-commerce and to what extent have SMEs achieved these benefits. Thus, this paper aims to analyse between the benefits that SMEs perceived they have gained and the proven benefits they realised. Survey and face-to-face interviews were carried-out in this study. The study found a number of interesting facts. Many respondents in the survey indicated that they gained some benefits, such as, more customers, increased sales, and increased productivity. Yet, the interviews did not substantiate such claims. This paper looks at these views critically and finally provides some suggestions and recommendations.

Creating Good Citizen through Company Ethical Values

syazwinaramjan — Sat, 08 Oct 2022 14:49:35 +0000

Creating high employee engagement is becoming more important in achieving sustainability in small and medium enterprises (SMEs). It helps organisations to motivate their employees to go beyond expectation. The main characteristic of organisation that pursues sustainability includes creating ethical values through organisational climate. This paper analyses the impact of ethical work climate on employee engagement and organisational citizenship behavior (OCB). Study was conducted on SMEs in Central Java, Indonesia. This research utilised quantitative approach and data collection was based on survey questionnaire. The result highlighted the significant impact of ethical work climate on employee engagement and OCB. This study’s findings contribute to the business ethics and SME literature by providing relevant empirical evidence based on primary data. The results provide guidance to SMEs in achieving sustainability.

The Effect of Entrepreneurial Orientation, Innovation Capability and Knowledge Creation on Firm Performance: A Perspective on Small Scale Entrepreneurs

syazahzwni — Sat, 08 Oct 2022 14:09:39 +0000

The purpose of this study is to examine the predictive effects of entrepreneurial orientation, innovation capability and knowledge creation on firm performance. Data for the study was collected using a cross-sectional quantitative survey. A total of 188 useable responses were collected from SMEs in Malaysia. The findings show that entrepreneurial orientation, innovation capability and knowledge creation have a positive impact on firm performance. Furthermore, the impacts of entrepreneurial orientation and innovation capability on knowledge creation are also examined in this study. The findings suggest that innovation capability is positively related to knowledge creation, but entrepreneurial orientation does not have a significant impact on knowledge creation. This study makes a considerable contribution to the existing literature on entrepreneurial orientation, innovation capability and knowledge creation of SMEs, particularly in regards to explaining the performance of Malaysian SMEs.

The Role of Relationship Marketing in Small and Medium Enterprises (SMEs)

syazahzwni — Sat, 08 Oct 2022 12:53:43 +0000

This study examines the role of relationship marketing on Small and Medium Enterprises (SMEs) in Indonesia. Relationship marketing is a concept in marketing management aimed at maintaining long-term relationships with customers. Meanwhile, SMEs occupy a crucial role in sustaining the economy of Indonesia. Therefore, by implementing the concept of relationship marketing, it is expected that customer loyalty on SMEs is formed and can maintain the sustainability of SMEs. The study used survey methods, with a sample pool of 183 SMEs customers. The analysis technique utilized structural equation modeling (SEM) and the data was processed using AMOS Basic. The results show that trust and relational commitment is significantly affected by communication and relational benefits. Meanwhile, trust and relational commitment significantly affect customer loyalty. The variables of similarity and frequency of interactions have no significant effect on either trust or relational commitment of customers of SMEs.