Effect of Serene Business Environment on the Performance of Small and Medium Enterprises in Malaysia
The effect of business environment on the performance of small and medium enterprises (SMEs) has been widely studied. Nevertheless, research on the effect of a serene business environment on the performance of SMEs is insufficient, notably in the context of Malaysia. Therefore, this study examined t...
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| Format: | Article |
| Language: | English |
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Universiti Utara Malaysia Press
2023
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| Online Access: | https://repo.uum.edu.my/id/eprint/29724/1/MMJ%2027%202023%2059-82.pdf https://doi.org/10.32890/mmj2023.27.3 |
| _version_ | 1803629732474912768 |
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| author | Khar, Kheng Yeoh |
| author_facet | Khar, Kheng Yeoh |
| author_sort | Khar, Kheng Yeoh |
| collection | UUM |
| description | The effect of business environment on the performance of small and medium enterprises (SMEs) has been widely studied. Nevertheless, research on the effect of a serene business environment on the performance of SMEs is insufficient, notably in the context of Malaysia. Therefore, this study examined the effect of a serene business environment on SMEs’ performance in Malaysia. Related literature was critically reviewed, and five hypotheses on the effect of serene business environmental factors on performance were formulated. By adopting the cross-sectional survey design, the data of 148 respondents were collected and analyzed using descriptive and inferential statistical tools – Statistical Package for Social Sciences (SPSS) and Partial Least Square – Structural Equation Modeling (PLS-SEM). From the empirical findings, Malaysia’s serene business environment is critical in stimulating the performance of SMEs. Financial market environment, technological environment, and regulatory environment exerted a positive significant effect on SMEs’ performance. Nonetheless, economic environment and competitive environment indicated a strong, but negative significant effect on SMEs’ performance. These findings proposed new insights in this field of research by providing relevant research implications and suitable recommendations to business managers and policymakers in Malaysia. |
| first_indexed | 2024-07-04T06:42:32Z |
| format | Article |
| id | uum-29724 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T06:42:32Z |
| publishDate | 2023 |
| publisher | Universiti Utara Malaysia Press |
| record_format | dspace |
| spelling | uum-297242023-09-06T15:18:29Z https://repo.uum.edu.my/id/eprint/29724/ Effect of Serene Business Environment on the Performance of Small and Medium Enterprises in Malaysia Khar, Kheng Yeoh HF Commerce The effect of business environment on the performance of small and medium enterprises (SMEs) has been widely studied. Nevertheless, research on the effect of a serene business environment on the performance of SMEs is insufficient, notably in the context of Malaysia. Therefore, this study examined the effect of a serene business environment on SMEs’ performance in Malaysia. Related literature was critically reviewed, and five hypotheses on the effect of serene business environmental factors on performance were formulated. By adopting the cross-sectional survey design, the data of 148 respondents were collected and analyzed using descriptive and inferential statistical tools – Statistical Package for Social Sciences (SPSS) and Partial Least Square – Structural Equation Modeling (PLS-SEM). From the empirical findings, Malaysia’s serene business environment is critical in stimulating the performance of SMEs. Financial market environment, technological environment, and regulatory environment exerted a positive significant effect on SMEs’ performance. Nonetheless, economic environment and competitive environment indicated a strong, but negative significant effect on SMEs’ performance. These findings proposed new insights in this field of research by providing relevant research implications and suitable recommendations to business managers and policymakers in Malaysia. Universiti Utara Malaysia Press 2023 Article PeerReviewed application/pdf en cc4_by https://repo.uum.edu.my/id/eprint/29724/1/MMJ%2027%202023%2059-82.pdf Khar, Kheng Yeoh (2023) Effect of Serene Business Environment on the Performance of Small and Medium Enterprises in Malaysia. Malaysian Management Journal (MMJ), 27. pp. 59-82. ISSN 0128-6226 https://e-journal.uum.edu.my/index.php/mmj/article/view/16179 https://doi.org/10.32890/mmj2023.27.3 https://doi.org/10.32890/mmj2023.27.3 |
| spellingShingle | HF Commerce Khar, Kheng Yeoh Effect of Serene Business Environment on the Performance of Small and Medium Enterprises in Malaysia |
| title | Effect of Serene Business Environment on the Performance of Small and Medium Enterprises in Malaysia |
| title_full | Effect of Serene Business Environment on the Performance of Small and Medium Enterprises in Malaysia |
| title_fullStr | Effect of Serene Business Environment on the Performance of Small and Medium Enterprises in Malaysia |
| title_full_unstemmed | Effect of Serene Business Environment on the Performance of Small and Medium Enterprises in Malaysia |
| title_short | Effect of Serene Business Environment on the Performance of Small and Medium Enterprises in Malaysia |
| title_sort | effect of serene business environment on the performance of small and medium enterprises in malaysia |
| topic | HF Commerce |
| url | https://repo.uum.edu.my/id/eprint/29724/1/MMJ%2027%202023%2059-82.pdf https://doi.org/10.32890/mmj2023.27.3 |
| work_keys_str_mv | AT kharkhengyeoh effectofserenebusinessenvironmentontheperformanceofsmallandmediumenterprisesinmalaysia |