Abstract

The small and medium enterprises (SMEs) have contributed to the economic growth and competitiveness of many countries. However, as the SMEs continue to grow as an important entity in many economies including Malaysia, many factors have dampened such progress. While previous studies had focused on its macro perspective in terms of firm level and industry level performance, this study attempted to address the basic issue of SMEs employees in terms of their job performance. This study is underpinned by the theory of job performance and further supported by the theory of congruence. The main objective of this research is to investigate on the relationship that may exist between three variables comprised of competency, person-job fit and the employees’ job performance in the context of service SMEs. Using a quantitative method, a sample of 324 responses was collected using a mail survey from 1500 distributed questionnaires. Results show significant relationships between competency, person-job fit and the job performance of employees. Conclusions and implications of the study were discussed.

Highlights

  • One of the important factors that can contribute to organizational performance is employee job performance

  • While previous studies had focused on its macro perspective in terms of firm level and industry level performance, this study attempted to address the basic issue of SMEs employees in terms of their job performance

  • The main objective of this research is to investigate on the relationship that may exist between three variables comprised of competency, person-job fit and the employees’ job performance in the context of service SMEs

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Summary

Introduction

One of the important factors that can contribute to organizational performance is employee job performance. Employees who performed well will help organizations to meet strategic goals. They are playing an important role in marinating organization competitiveness (Dessler, 2011). It is important to identify the factors that can affect the job performance of employees both in large enterprises and in SMEs. The SME sector plays a vital role in both the developed and developing countries in terms of economic growth and promoting competitiveness (Caniels & Romijn, 2005). 50% GDP of most developed countries comes from this sector (Kefela, 2010) while it contributed approximately 30% to 60% of the GDP of the East Asian region with an estimated 70% of employment (Hall, 2002). Many researchers are interested to examine the various obstacles that hinder their progress (Alasadi & Abdelrahim, 2008)

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