Competitive Capabilities and Business Performance among Manufacturing SMEs: Evidence from an Emerging Economy, Malaysia

This study examines whether the manufacturing competitive capabilities that Malaysian small and medium enterprises (SMEs) in the manufacturing sector currently pursue yield satisfactory returns in terms of financial and nonfinancial performance. A sample of 145 manufacturing SMEs were analyzed to ex...

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Bibliographic Details
Published in:Journal of Asia-Pacific business 2016-01, Vol.17 (1), p.37-58
Main Authors: Ho, Theresa C.F., Ahmad, Noor Hazlina, Ramayah, T.
Format: Article
Language:English
Subjects:
Business
Business performance
Competition
competitive capabilities
Emerging markets
Insurance industry
Malaysia
Manufacturing
Prices
Small & medium sized enterprises-SME
small and medium enterprises
Small business
Studies
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Summary:This study examines whether the manufacturing competitive capabilities that Malaysian small and medium enterprises (SMEs) in the manufacturing sector currently pursue yield satisfactory returns in terms of financial and nonfinancial performance. A sample of 145 manufacturing SMEs were analyzed to examine the relationship between manufacturing competitiveness (price, delivery dependability, innovation, and quality) and business performance (financial and nonfinancial) using partial least squares approach via Smart PLS 2.0. The study reveals that competitive capabilities did not lead to satisfactory financial performance. However, manufacturing competitive capabilities, in terms of delivery dependability and quality, did lead to satisfactory nonfinancial performance.
ISSN:1059-9231
1528-6940
1547-0636
DOI:10.1080/10599231.2016.1129263