This report will helps identify gaps that this study is aiming to bridge, which will also help guide the entire paper. It is becoming increasingly difficult to overlook the importance of the small and medium enterprise (SME) sector in the economic and social development of a country. In view of their identified importance, this study aims to develop a better understanding of the factors that influence success and performance in small and medium enterprises in Malaysia, as perceived by owners and/or managers. The research framework, which was derived from a systematic literature review, was carefully analyzed, observed and investigated using a two (2) stage design, which incorporated both quantitative and qualitative approaches.
The justification behind the two (2) stage methodology was mainly to avoid common method bias and, furthermore, seek to clarify findings arising from the survey by providing individual insights. Approaches were adopted in succession with the findings from the quantitative phase which in turn informs the qualitative phase.
Small and medium enterprises (SMEs) have an important role to play in the development of a country. A strong SME sector contributes highly to the economy, contributing to the gross domestic product, by reducing the level of unemployment, reduction in poverty levels and promotion of entrepreneurship activity. Therefore, the success of this sector determines economic status of the economy of Malaysia which is dependent on a number of factors.
Table of Contents
1.1 Introduction
1.2 Research background
1.3 Research problem
1.4 Theoretical framework
1.5 Research objectives and questions
1.6 Scope of the study
1.7 Research justification
1.8 Research methodology
1.9 Significance of the study
1.10 Definitions
1.11 Thesis structure
1.12 Summary
2.1 Introduction
2.2 Systematic literature review
2.2.1 Overview
2.2.2 Aim and objectives of the review
2.2.3 Reasons for the systematic literature review
2.3 The review process
2.3.1 Searching
2.3.1.1 Identification of resources
2.3.1.2 The use of search terms
2.3.2 Screening
2.3.3 Data extraction
2.3.4 Data synthesis
2.3.4.1 Descriptive analysis
2.3.4.2 Thematic analysis
2.3.5 Reporting and dissemination
2.4 Strengths and limitations
2.4.1 Strengths of the review
2.4.2 Limitations of the review
2.5 Summary
2.6 LITERATURE REVIEW
2.6.1 Introduction
2.6.2 Definition of SMEs
2.6.3 Importance of SMEs
2.6.4 Performance, success, and failure
2.6.4.1 Success as survival
2.6.4.2 Success as growth
2.6.4.3 Success as high growth
2.6.4.4 Issues remaining in the HGF literature
2.6.5 Measurement of success
2.6.6 Success factors
2.6.6.1 Internal factors
2.6.6.1.1 Characteristics of SMEs
2.6.6.1.2 Characteristics of the entrepreneur
2.6.6.1.3 Firm strategies
2.6.6.2 External factors
2.6.6.2.1 Macro-environmental factors
2.6.6.2.2 Micro-environmental factors
2.6.7 Success, survival, and growth: questions of perception
2.6.8 Development of the conceptual framework
2.6.9 Hypotheses of the study
2.6.10 Summary
2.7 SMALL AND MEDIUM ENTERPRISES IN MALAYSIA
2.7.1 Introduction
2.7.2 Overview about the Country of Malaysia
2.7.2.1 Geographical description
2.7.2.2 Demographic characteristics
2.7.2.3 Historical background
2.7.2.4 Political background
2.7.2.5 Economic context
2.7.3 Overview of Malaysia
2.7.3.1 Geographical description
2.7.3.2 Demographic background
2.7.3.3 Historical background
2.7.3.4 Political background
2.7.3.5 Economic context
2.7.4 The structure of SMEs in Malaysia
2.7.4.1 The primary sector
2.7.4.2 The secondary sector
2.7.4.3 The tertiary sector
2.7.5 The external business environment in Malaysia
2.7.5.1 The regulatory environment
2.7.5.2 The tax system
2.7.5.2.1 Tax regime applicable to the Selected districts of Malaysia
2.7.5.2.2 Tax regime applicable to the export free zones
2.7.5.2.3 Tax regime applicable to the free zone of the port of Malaysia
2.7.6 Summary
3.1 Introduction
3.2 The research philosophy
3.2.1 The adopted research philosophy
3.3 The research purpose
3.4 The research approach
3.4.1 Deductive and inductive approach
3.4.2 Quantitative and qualitative approach
3.4.3 The adopted research approach
3.5 The research strategy
3.5.1 The survey strategy
3.5.2 The interview strategy
3.6 The research design
3.6.1 The developmental phase
3.6.1.1 Conceptualization and Operationalization
3.6.1.2 Instrument development
3.6.2 The implementation phase
3.6.2.1 Data collection
3.6.3 The analysis / validation phase
3.6.3.1 Quantitative data analysis
3.6.3.2 Validity and reliability of the quantitative phase
3.6.3.3 Qualitative data analysis
3.6.3.4 Trustworthiness of the qualitative results
3.7 Ethical issues
3.7.1 Consent
3.7.2 Confidentiality
3.7.3 Debriefing
3.7.4 Protection of participants
3.7.5 Withdrawal from participation
3.8 SUMMARY
4.1 Introduction
4.2 Data analysis
4.2.1 Data preparation
4.2.2 Data classification
4.2.3 Non-response bias
4.2.4 Reliability and validity
4.2.4.1 Reliability
4.2.4.2 Validity
4.2.5 Descriptive analysis
4.2.5.1 Demographic characteristics of the respondents
4.2.5.2 Demographic characteristics of the businesses
4.2.5.3 Success factors
4.2.6 Exploratory factor analysis
4.2.7 Hypotheses testing
4.2.8 Open ended question analysis
4.3 Summary
4.4 RESULTS AND ANALYSIS OF THE QUALITATIVE PHASE
4.4.1 Introduction
4.4.2 Profile of respondents
4.4.3 Macro-environmental factors
4.4.3.1 Economic factors
4.4.3.1.1 Financial resources
4.4.3.1.2 Taxation
4.4.3.2 Political-legal factors
4.4.3.2.1 Government support
4.4.3.2.2 Regulatory environment
4.4.3.3 Technological factors
4.4.3.3.1 Technology and information
4.4.3.3.2 Infrastructure
4.4.3.4 Socio-cultural factors
4.4.3.4.1 Networking
4.4.3.4.2 The workforce
4.4.4 Micro-environmental factors
4.4.4.1 Customers
4.4.4.2 Suppliers
4.4.4.3 Competition
4.4.5 Summary
4.5 DISCUSSION OF FINDINGS
4.5.1 Introduction
4.5.2 Success factors
4.5.2.1 Internal factors
4.5.2.1.1 Characteristics of the business
4.5.2.1.2 Characteristics of the entrepreneur
4.5.2.2 External factors
4.5.2.2.1 Economic factors
4.5.2.2.2 Political-legal factors
4.5.2.2.3 Technological factors
4.5.2.2.4 Socio-cultural factors
4.5.2.2.5 Micro-environmental factors
4.5.3 Summary
5.1 Introduction
5.2 Research questions and objectives revisited
5.3 Research conclusions
5.3.1 Business owner and manager attributes
5.3.2 Work partnership
5.3.3 Business characteristics
5.4 Research contributions
5.4.1 Introduction
5.4.2 The impact of location
5.4.3 Networking, partnership, and nepotism “who you know”
5.4.4 The value of a mixed methods approach
5.4.5 Overview
5.5 Research limitations
5.6 Implications of the research
5.6.1 Implications for practice
5.6.2 Implications for policy
5.6.3 Implications for research
Research Goal and Thematic Focus
The primary goal of this research is to develop a comprehensive understanding of the factors that influence the success and performance of Small and Medium Enterprises (SMEs) in Malaysia, as perceived by business owners and managers. The study aims to bridge existing research gaps by utilizing a two-stage methodology that combines quantitative survey data with qualitative in-depth interviews to create a situational model of critical success factors specifically tailored to the Malaysian business context.
- Identification of significant factors influencing SME business success and performance.
- Comparative analysis of successful versus less successful SMEs in Malaysia.
- Exploration of the role of internal attributes, external environment, and work partnerships in SME success.
- Assessment of the impact of geographical location, specifically within free trade zones, on business outcomes.
- Development of a situational model to explain the drivers of success from the perspective of local entrepreneurs.
Excerpt from the Book
The impact of location
Another business attribute that has been identified in the literature to have an influence on growth is location of the firm. Davidsson (1999) and Storey (2013) argued that firm location may determine firm’s growth, with the local market binds firms. Furthermore, Storey (2013) argued that some locations are more conducive to firm growth, with small firms in accessible rural locations growing faster than firms in urban areas. Whilst this seems to be plausible, it is possible that in many cases the local market binds firm growth, it can however be argued that a firm does not necessarily restrain its sales to its local market. In fact, firms can expand into other geographic markets provided that they can access modern channels of communication and logistics. The influence of location on high-growth firms has not been covered extensively in the literature. Mason and Brown (2016) argued that evidence of the geographical dimension of HGFs is largely absent from the HGF literature. Some studies, conducted by economic geographers, suggest that HGFs do exhibit a distinctive geography. (For an example, see Gallagher and Miller,2010) (For further details in section Location of the enterprise p. 52).
With regard to the firm specific resources, financial resources and human capital are the most important resources for small business growth (Wiklund et al., 2009). The importance of financial resources in promoting firm growth has been documented. However, the empirical evidence still remains ambiguous. Some empirical studies have shown a positive effect of financial resources on small business growth (Cooper et al., 2013; Storey, 2013), while other studies have found only moderation effects (Coad, 2015) and even some negative effects (Hardwick and Adams, 2002). This could be explained by the large number of unexplained variations in the growth rate (Coad, 2015) (For further details in section Financial resources p. 70). On the other hand, human capital, which can be represented by knowledge, skills and experience, is considered to play a crucial role for the growth of SMEs (Heskel, 1999; Rauch et al., 2005) (For further details in section Previous experience p. 59 and section Competences and skills of the entrepreneur p. 63).
Summary of Chapters
CHAPTER ONE: INTRODUCTION AND OVERVIEW OF THE STUDY: Provides the research background, identifies the research problem regarding SME success in Malaysia, and outlines the objectives and methodology.
CHAPTER TWO: THE SYSTEMATIC LITERATURE REVIEW PROCESS: Describes the rigorous process of searching, screening, and synthesizing existing literature to form the theoretical framework.
CHAPTER THREE: RESEARCH METHODOLOGY: Details the two-stage research design, justifying the use of both quantitative surveys and qualitative interviews to ensure data validity and depth.
CHAPTER FOUR: RESULTS AND ANALYSIS OF THE QUANTITATIVE AND QUALITATIVE PHASE: Reports the empirical findings from the survey data and the thematic analysis of the semi-structured interviews.
CHAPTER FIVE: CONCLUSION: Summarizes the research findings, revisits the objectives, and discusses the theoretical and practical implications for SMEs in Malaysia.
Keywords
Business Success, Small and Medium-Sized Enterprise, Performance, Malaysia, Free Zones, Critical Success Factor, SME Growth, Entrepreneurship, Work Partnership, Business Environment, Quantitative Research, Qualitative Research, Mixed Methods Approach, Management, Industrial Sector
Frequently Asked Questions
What is the core focus of this research paper?
The paper fundamentally explores the determinants of success for small and medium-sized enterprises (SMEs) in Malaysia by gathering insights directly from local business owners and managers.
What are the primary thematic areas covered?
The research covers internal factors like owner attributes and business characteristics, as well as external factors like the regulatory environment, financial resources, networking, and the specific impact of geographical location and free zones.
What is the primary research goal?
The primary goal is to establish a situational model of perceived critical success factors for Malaysian SMEs, moving beyond mere economic data to capture the perspectives and experiences of the entrepreneurs themselves.
What scientific methodology is utilized in this study?
The study employs a two-stage "mixed-method" approach: first, a quantitative phase utilizing survey questionnaires for empirical data, followed by a qualitative phase using in-depth, semi-structured face-to-face interviews to gain nuanced understanding.
What does the main body of the work address?
The main body examines existing literature through a systematic review process, details the chosen research design and methodology, and provides a thorough analysis of both quantitative survey results and qualitative interview themes.
Which keywords best characterize this thesis?
Key terms include Business Success, Small and Medium-Sized Enterprise (SME), Malaysia, Critical Success Factors, Entrepreneurship, Business Environment, and Mixed Methods Research.
How does the role of 'location' affect business success in this study?
The study highlights that location is not just a geographical factor but a significant influence on access to financial resources, taxation benefits, and the ability to compete, particularly for firms located in or outside of designated free trade zones.
What is the significance of the "who you know" concept?
The research identifies that networking and social connections—often described by participants as a form of "nepotism" or "who you know"—play a critical and unique role in Malaysian business culture, acting as a force for navigating complex environments and accessing opportunities.
- Arbeit zitieren
- Yusuf Balarabe Abdullahi (Autor:in), 2018, Factors Determing the Success of SMEs in Malaysia. A Qualitative Study, München, GRIN Verlag, https://www.grin.com/document/996403
