Small and medium enterprises (SMEs) have been recognized as an engine for the economy and a generator of employment and growth. However, SMEs are affected by the challenges from the business environment which influence their performance. The competitive and market conditions have force the organization to seek long term success by achieving excellence in the business. The literature shows that there are many factors that can lead to the operational excellence including the internal and external environment factors. The objective of the study is to investigate the factors that influencing the operational excellence on SMEs sectors. The literature shows that the study on operational excellence for the SMEs sectors remains unclear. Literature indicates that there is a need for a study in the context of Malaysian SMEs sectors.
The manufacturing sector in Malaysia has been recognized as an important sector due to its significant contribution toward the nation's economic growth. This sector is the most significant contributor to total exports of the country and the second largest contributor to the gross domestic product (GDP). However, the total shares of Malaysia's manufacturing exports in the world market declined due to competitive and globalized market condition. Consequently, it is essential to investigate the factors that affect operational excellence to remain competitive and achieving excellence in the business. This study aims to examine the internal and external environmental factors that affect the operational excellence in the Malaysian SMEs manufacturing sector. The literature have demonstrated that an investigation on operational excellence lacks particularly in Malaysian SMEs sector. In addition, the impact of internal and external environmental factors on operational excellence has received little attention in the literature especially in the SMEs sector. Therefore, the conceptual model has been developed based on a comprehensive review of the previous study. This paper presents a conceptual framework that investigates the internal and external environmental factors that affect operational excellence as well as their relationship on operational excellence in the Malaysian SMEs manufacturing sector. The contribution of this paper is to identify the influence of internal and external environmental factors towards the operational excellence. Thus, this study proposed a conceptual framework for SMEs manufacturing sectors in Malaysia.
This paper examines internal environmental factors that influence the operational excellence of SMEs manufacturing sector in Malaysia. The objective of this paper is to measure the reliability and validity of internal environmental factors and its construct. A pilot study was conducted among 30 SMEs company in Terengganu which represented by the managerial level who are closely linked to the manufacturing operations. This study adopted a survey method by using simple random sampling method for the data collection. The reliability and validity of the instrument were examined through content validity, face validity and reliability based on expert assessment and the data was analyzed using the statistical software SPSS version 22. The result shows that the survey instrument is reliable and valid. Therefore, this study expected will help the Malaysian SMEs manufacturing sector in determining the effect of internal environmental factors on operational excellence.
Zakat is one of the five pillars of the Islamic faith, which is an obligatory form of "charity", and every Muslim is expected to contribute. The use of zakat is not only to purify property but to purify the hearts of zakat payers from selfishness and wealth greed. Although it is part of Muslims obligation to pay zakat, the amount collected recorded is still lower and not optimal. The issue on zakat business payment is not often debated particularly on how to increase the number of business zakat payer. This is because zakat on wealth is more than total zakat on the business. Malaysian zakat institution still faces several obstacles to increase the collection of business zakat. Most of the previous studies on this issue they do not explain more detail about the factor of knowledge of payers on business zakat payment and also the role of zakat institution. Hence, the purpose of this research is to identify corporate responsibility and motivating corporate zakat payment. This research also used the Resource-Based View (RBV) Theory. For this study, data were collected using in-depth interviews as a method of collecting data which is a qualitative method. The reason influenced corporate responsibility and motivating corporate zakat payment are "level of knowledge", and "leadership of zakat institution". The case study is using Hotel Perdana Kota Bharu.
Innovation is important in enhancing the country's competitiveness and contributing to knowledge-based urban development. The development of innovation that focuses only on the economic perspective leads to the imbalance of development when there is a gap in economic growth and social development of society. The emergence of social innovation is a complement to corporate innovation that focuses only on profit. Thus, this article aims to highlight the strengths and weaknesses of social innovation in two countries which is Malaysia and Thailand. The findings show that both governments of Thailand and Malaysia have taken social innovations initiative as a serious matter by incorporating it as one important agenda in their economic planning and framework. However, besides of success stories discussed in this paper, there are also some weaknesses point out in this paper need to address seriously by the respected parties.
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