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Strategic Orientation and Performance of SMEs in Malaysia

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  • Wan Mohd Nazdrol bin Wan Mohd Nasir
  • Abdullah Al Mamun
  • John Breen

Abstract

The primary objective of this study is to critically examine the effect of strategic orientation on the performance of small and medium enterprises (SMEs) in Malaysia. Three most comprehensive constructs, namely, entrepreneurial orientation, market orientation, and interaction orientation were adopted to present a holistic picture of the effect of strategic orientation on firm performance. This study adopts a cross-sectional design and uses the stratified random sampling method to select the potential respondents. The complete data were collected from 473 entrepreneurs who operate in the service sector in Malaysia. Findings of this study show that entrepreneurial and market orientations have a positive effect on superior firm performance. As entrepreneurial orientation is shown to be the construct sharing a positive relationship with all the other constructs in the model, it has been identified as the most significant strategic orientation. SMEs in Malaysia should therefore focus on adopting strategies in market orientation by appropriate marketing efforts, and in entrepreneurial orientation where the entrepreneur needs to adopt a proactive stance to counter challenges in the market of new products and changing customer preferences.

Suggested Citation

  • Wan Mohd Nazdrol bin Wan Mohd Nasir & Abdullah Al Mamun & John Breen, 2017. "Strategic Orientation and Performance of SMEs in Malaysia," SAGE Open, , vol. 7(2), pages 21582440177, June.
    • Handle: RePEc:sae:sagope:v:7:y:2017:i:2:p:2158244017712768
    DOI: 10.1177/2158244017712768
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    Cited by:

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    5. Qamar Farooq & Peihua Fu & Shahzad Ahmad & Yanni Zhang & Yunhong Hao, 2019. "Assessing Human Factor in the Adoption of Computer-Based Information Systems as the Internal Corporate Social Responsibility," SAGE Open, , vol. 9(3), pages 21582440198, August.

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