SMEs represent more than 90 percent of the establishment in many countries including Malaysia. However, from 98.5 percent of SMEs establishment, only 37 percent represent bumiputera SMEs. Human capital and self-efficacy are identified as internal factors of the organisation and function as a possible solution to address bumiputera SMEs’ difficulties. Hence, the primary objective of this study is to investigate the mediating effect of self-efficacy in the interaction between human capital and the SMEs performance in Malaysia. This study has investigated 203 Malay-owned small and medium enterprises. Structural Equation Modelling (SEM) was employed to analyse the data. The results demonstrated that human capital and self-efficacy influence each other and have a significantly positive impact on firm performance. Mediation simultaneously affirms that the relationship between human capital and firm performance is mediated by self-efficacy. This study concluded that these two internal factors can provide a holistic model to improve bumiputera SMEs performance in Malaysia.
Abstract-The purpose of this paper is to make comparison in terms of social network between male and female Malay entrepreneurs in Small and Medium Enterprises (SMEs) in Malaysia. Social network is defined as interrelationship between the entrepreneurs and their contact (alter) in business venturing. However, there is limited understanding on how the entrepreneurs use their social network. Moreover, there is dearth attention given to investigate the social network in developing country especially in Malaysia. Both social network theory and structural perspective were employed in this quantitative-based study. The data gathered through the mail questionnaire method in which 93 are male and 72 female respondents representing 53 percent responded. Using t-test, the study reveals that there is no significance difference in terms of network size, network activity and network density for both genders. Implications and direction for further research are also presented.
The purpose of this paper is to examine social network among SME firms in Malaysia. Specifically, this paper aims to investigate the usage of social network among Malay ethnic entrepreneurs in the start-up phase of SME firms in manufacturing sectors. Secondly, this paper aims to investigate the relationship between social network and business performance of the start-up manufacturing SME firms in Malaysia. The research data were collected through self-administered and mail questionnaire with a stratified random sample of 83 SME firms around Malaysia. The hierarchical regression was used for hypothesis testing. The result shows that Malay entrepreneurs used extensively business contact in their social network. For the hypothesis testing, the hierarchical regression shows that social network has significantly positive relationship with business performance. This paper contributes to the body of knowledge especially to the social network theme in Malaysia which is considered to be in the infant stage still. The discussions of the results, the contribution to the body of knowledge as well as limitations of the study are also discussed.
Handicraft industries continue to play an important role in the economies of all Asian countries including Malaysia. They not only constitute small business activities in themselves but are also often the only available means to provide additional employment and raise the level of living for rural populations. Despite the government's several institutional and policy support for enhancing the capacity of micro and small-scale enterprises, the results have fallen short of expectations. In view of the growing world market for products of traditional Asian handicraft industries, having a relevant entrepreneurial ecosystem model specific to handicraft micro and small industries in Malaysia is imperative. Thus, this study attempts to:(1) identify the components of entrepreneurial ecosystem of handicraft micro and small industries in Malaysia;(2) determine the relationship between components of entrepreneurial ecosystem and business performance. The SEM-PLS approach has been employed as a statistical method to analyze the research model. Data were collected from 50 handicraft micro and small entrepreneurs using personally administered questionnaire surveys. The findings indicate that only talent was found to have a significant relationship with business performance. This study is significant to the investors, the ministry, the government, academics and even business owners in providing a comprehensive model in understanding the handicraft industry entrepreneurial processes through which the ecosystems emerge, change, and influence the activities of the entrepreneurs.
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