State Government Roles As Moderator In Entrepreneurial Orientation And Organizational Stucture Relationship

Abstract

SEDCs are the central representative in dispersing economic development at the state level. There are thirteen SEDCs in Malaysia. Each state SEDCs have its owned subsidiaries which are known as states government link companies or SGLCs. The aim of SGLCs establishment are fulfilling obligatory of raising Bumiputera participation in states economic sectors. Global dynamism required enterprises to suit and made changes accordingly. Thus SEDCs thru its SGLCs should fully run based on five EO dimensions namely autonomy, competitive aggressiveness, innovativeness, pro-activeness and risk takings in order to meet the obligation. Currently, five EOs have not been fully practices in state enterprises. Thus, the role of state government in rectifying this matter is important to ensure SGLCs aims are not diverted by other than noble intention and will be tested in this research. Besides that, SGLCs too have faced with internal problems related to culture as indicated by Hofstede, and organizational culture as mentioned by Schein. This paper proposed the conceptual model which highlighted the role of state governments' as the moderating construct in the relationships between Entrepreneurial Orientation and Organizational Culture towards the performance of State Government Link Companies in Malaysia.