The Effect of Organizational Cultureon the Relationship between Entrepreneurial Competencies and SMEs Business Performance in Malaysia

Juzaimi Nasuredin, Azizi Haji Halipah, Abdul Shukor Shamsudin


Generating up to 80 per cent of the economic growth, providing jobs and making up the majority of businesses that operate around the world, the crucial role of SMEs in the global economy is undeniable. This paper tends to investigate the relationships between the dimensions of entrepreneurial competency, organizational culture and SMEs performance particularly in Malaysia that have been proven as lacking in the entrepreneurship study. In addition, this paper also focused primarily on testing the possibility of organizational culture as a moderating variable in the relationship between entrepreneurial competencies and SMEs business performance. By employing a quantitative cross-sectional survey approach, data were collected through mail survey questionnaire distributed to SMEs owner-managers throughout Malaysia. The constructs used were adapted from earlier research and data obtained was analysed using Statistical Package for Social Sciences (SPSS) version 21 for Windows. Statistical results revealed that opportunity competency, organizing competency and strategic competency significantly affected Malaysian SMEs performance. However, organizational culture was found not to moderate the relationships between entrepreneurial competency and Malaysian SMEs performance. Conclusively, implications of the study and some suggestions for forthcoming research are also reviewed.

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