Malaysian Manufacturing SMEs Research Articles

Intention of Smart Manufacturing Technologies Adoption among Manufacturing SMEs in Malaysia

Intention of Smart Manufacturing Technologies Adoption among Manufacturing SMEs in Malaysia

The Impact of Psychological Capital and Mediation Role of Intrinsic Motivation on Employee Productivity on Manufacturing SMEs in Malaysia

The Impact of Psychological Capital and Mediation Role of Intrinsic Motivation on Employee Productivity on Manufacturing SMEs in Malaysia

Ambidextrous Leadership and Innovation Capabilities Correlation: The Moderating Role of Financial Literacy in Malaysian Manufacturing SMEs

Ambidextrous Leadership and Innovation Capabilities Correlation: The Moderating Role of Financial Literacy in Malaysian Manufacturing SMEs

Implementation of lean manufacturing practices and six-sigma among Malaysian manufacturing SMEs: intention to implement IR 4.0 technologies

PurposeIn this paper, the implementation of lean manufacturing and six sigma practices among Malaysian manufacturing SMEs toward achieving sustainable performance was investigated. Furthermore, intention to implement IR 4.0 technologies among manufacturing SMEs was also examined.Design/methodology/approachThe primary data were collected from 120 manufacturing SMEs across Malaysia using organization as the unit of analysis. The data were collected using the six-point Likert scale questionnaire.FindingsBased on research findings, about 86% Malaysian manufacturing SMEs implement 6s. Nevertheless, lean and 6s has an influence on sustainable performance among Malaysian manufacturing SMEs. Only about 32.5% Malaysian manufacturing SMEs have the intention to implement IR 4.0 technologies. This study results imply that IR 4.0 technologies implementation among Malaysian manufacturing SMEs are still at infant stage though lean and 6s concept is known by the manufacturing SMEs.Research limitations/implicationsThis study has implications for future researchers to explore application of IR 4.0 technologies among manufacturing SMEs. Therefore, there is need to create awareness about the application of IR 4.0 technologies suitable for manufacturing SMEs in order to remain sustainable for local and foreign competitors. From the perspective of system theory, there is an interconnection network across each department in a whole system. More so, sustainable performance can continuously change and improve the system in any organization.Practical implicationsFrom the view of SMEs policy makers, this study should be use to encourage SMEs to adopt technologically inclined practices. Accordingly, this research recommends government bodies to help support the implementation of sustainable practices due to their sizes and inadequate resources involved. Therefore, the role of government in providing suitable policies that could be beneficial to manufacturing SMEs toward achieving sustainable practices cannot be overlooked. Through proper government support, Malaysian manufacturing SMEs will be able to survive both locally and internationally and also gain competitive advantage.Originality/valueThe main contribution of this paper includes integrated effect of lean manufacturing practices and six sigma implementation among manufacturing SMEs and prioritizing implementation of IR 4.0 technologies to be executed by manufacturing SMEs.

The Impact of External Stakeholders’ Pressures on the Intention to Adopt Environmental Management Practices and the Moderating Effects of Firm Size

SMEs in the food manufacturing sector represent a considerable proportion of mainstream businesses in Malaysia. The changes in the lifestyles of Malaysians have led to increased demand for convenience and processed foods, which has led to a growing number of food manufacturing establishments in Malaysia. Nevertheless, the expansion in the food manufacturing sector is followed by a rise in environmental issues. Therefore, to mitigate the impact of food manufacturing activities on the environment, one of the best possible solutions is to implement environmental management practices (EMPs). SMEs may encounter varying levels of pressure from customers, regulatory bodies, and the social community regarding environmental behavior and compliance. This study used the Stakeholder theory to develop the research model. The first objective of this study is to determine the effect of SMEs’ external stakeholders, including customer pressure, regulatory pressure, and social community pressure, on food manufacturing SMEs’ intention to adopt EMPs. The second objective is to test the effect of firm size as a moderating variable. A structured questionnaire was administered to 367 food manufacturing SMEs in Malaysia. The findings reveal that the SMEs’ intention to adopt EMPs was significantly related to customer, regulatory, and social community pressures. The study also discovered that firm size only moderated the relationship between customer pressure and the intention to adopt EMPs. The results provided a more robust understanding of the effect of external factors on SMEs’ intentions toward EMPs. Policymakers are recommended to carefully consider those factors to encourage more SMEs to adopt EMPs. SMEs should cultivate a learning and innovative culture to successfully embrace EMPs in a changing business environment.

Intellectual Capital and Firm Performance Correlation: The Mediation Role of Innovation Capability in Malaysian Manufacturing SMEs Perspective

Understanding of intellectual capital’s influence on the firm performance has received immense interest in recent years. In this view, the impact of various intellectual capital components, including human, structural, and relational capital, on the performance of small- and medium-sized Malaysian manufacturing enterprises were examined. A correlation between intellectual capital and firm performance were established based on the mediating role of innovation capability. To achieve this goal, a stratified sampling method was used wherein 262 participants’ responses from the focused manufacturing firms were obtained and analyzed via the structural equation model (SEM) and resource-based view (RBV). Statistical tools like SPSS.v25 and SmartPLS.v3 were used. The results showed that the relationship between intellectual capital and firm performance was strengthened due to the mediation of innovation capability, thereby gaining higher competitive advantages. It was asserted that the present comprehensive analyses may offer a useful information and guidance to the academics, owners/managers, and policymakers involving the impact of intellectual capital development towards improving the Malaysian SMEs performance.

The impact of government support and innovation culture on new product development of manufacturing SMEs: does innovation strategy matter

Manufacturing SMEs play a significant role in the nation's growth, especially in a rich country with organisational resources and talent, such as Malaysia. However, studies on the factors contributing to the innovation of manufacturing SMEs in Malaysia are still scarce. Thus, this study examines the importance of government support and innovation culture towards innovation strategy in driving new product development, indirectly enhancing organisation performance. A survey was conducted to gather data from manufacturing SMEs. A total of 127 responses were obtained, and analyses were carried out using Smart-PLS software. The findings indicate that innovation culture is an important factor for innovation strategy. However, government support has no impact on innovation strategy as well as indirect impact. The finding also indicates that innovation strategy has positive significance towards new product development and improves organisation performance. This study offers an important contribution to the factors enhancing organisational performance to the manufacturing SMEs in Malaysia.

Contextual Factors and Strategic Consequences of Cloud Enterprise Resource Planning (ERP) Adoption in Malaysian Manufacturing SMEs: A Conceptual Framework

Purpose: The purpose of this study is to holistically investigate the interrelationships between key contextual factors of cloud ERP adoption and the strategic consequences of such adoption. Design/Methodology/Approach: The key contextual factors whose influences are explored on cloud ERP adoption are Feature task-match, (FTM); Top Management Support on Change Management (TMSCM) and Government Financial Support (GFS) while the strategic consequences of cloud ERP adoption investigated are competitive advantage (CA) and organisational performance. A conceptual framework grounded in Technology-Organisation-Environment (TOE) model, Task technology-fit (TTF) model and Resource-Based View (RBV) theory is developed for empirical validation that will involve a projected sample of 382 respondents of SMEs in Malaysia using PLS-SEM as main statistical analysis tool. Practical Implications: Practically, this study will guide SMEs' managers on cloud ERP selection that fits their firms' tasks, how to effectively deal with resistance to change occasioned by technology adoption and how effective GFS has been influencing cloud ERP adoption. In addition, SMEs managers stand to gain insight into how cloud ERP adoption can simultaneously and/or indirectly lead to competitive advantage and organisational performance as strategic benefits. Originality/Value: Investigation of a new variant key contextual factors critical for successful cloud ERP adoption and their subsequent impact on CA and organisational performance simultaneously and indirectly.

Sustainable entrepreneurship practices in Malaysian manufacturing SMEs: the role of individual, organisational and institutional factors

Sustainability is an issue that has a profound effect on large companies and also among SMEs. The research framework for this study is built upon this triple bottom line agenda. The study integrates individual factors that consist of sustainable orientation, organisational factors that consist of intellectual capital (human, structural and relational capital) and institutional factors (government support and social norms) as the antecedents of sustainable entrepreneurship practices. Sustainable performance of SMEs is treated as the dependent variable in this research. A total of 203 responses were obtained and analyses were carried out using Smart-PLS software. The results show that five out of eight hypotheses were accepted. The result indicates that Malaysian SMEs entrepreneurs are clearly aware and understand the importance of sustainability concepts in their business performance. In addition, this study aims to provide insight and knowledge for designing policies and promote sustainable practices in Malaysian manufacturing SMEs.

Sustainable entrepreneurship practices in Malaysian manufacturing SMEs: the role of individual, organisational and institutional factors

Sustainability is an issue that has a profound effect on large companies and also among SMEs. The research framework for this study is built upon this triple bottom line agenda. The study integrates individual factors that consist of sustainable orientation, organisational factors that consist of intellectual capital (human, structural and relational capital) and institutional factors (government support and social norms) as the antecedents of sustainable entrepreneurship practices. Sustainable performance of SMEs is treated as the dependent variable in this research. A total of 203 responses were obtained and analyses were carried out using Smart-PLS software. The results show that five out of eight hypotheses were accepted. The result indicates that Malaysian SMEs entrepreneurs are clearly aware and understand the importance of sustainability concepts in their business performance. In addition, this study aims to provide insight and knowledge for designing policies and promote sustainable practices in Malaysian manufacturing SMEs.

Towards a sustainable agenda: enhancing green entrepreneurship image among manufacturing SMEs

Adoption of green practices within an organisation can take many different forms, through developing green practices and processes as its core competences and subsequently promoting a green corporate image. This study aims to examine the predictors of green entrepreneurship image and the mediating effect of green innovation on green organisational identity, green core competences and green entrepreneurship image of Malaysian manufacturing SMEs. This empirical study was conducted using a structured instrument, analysed by the Partial Least Square (PLS) technique. The results show that green organisational identity and green core competences significantly enhance the firms' green entrepreneurship image and that green process innovation performance underpins green entrepreneurship image. This study also offers practitioners a guide on what kind of green practice they need to adopt, which can bring advantages to them. It highlights the importance of engaging in green innovation as a differentiation strategy to promote a sustainable agenda within SME sectors.

An empirical examination of knowledge management and organisational performance among Malaysian manufacturing SMEs

Knowledge management has gained increased attention recently, as many researchers have revealed its significant roles on enhancing organisational performance. This study aims to examine the relationship between knowledge management and organisational performance in the context of Malaysia. Knowledge management was conceptualised as capabilities made up of knowledge acquisition, knowledge conversion, knowledge application, and knowledge protection. One hundred sixteen respondents comprising of the top management from manufacturing SMEs had participated in this study. SmartPLS 2.0 (M3) was employed to examine the hypothesised relationships between knowledge management and organisational performance. The results revealed that among the four knowledge management capabilities, only knowledge acquisition and protection had a significant positive relationship with organisational performance, whereas knowledge conversion and application had not. Implications, limitations as well as directions for future research were further discussed.

An empirical examination of knowledge management and organisational performance among Malaysian manufacturing SMEs

Knowledge management has gained increased attention recently, as many researchers have revealed its significant roles on enhancing organisational performance. This study aims to examine the relationship between knowledge management and organisational performance in the context of Malaysia. Knowledge management was conceptualised as capabilities made up of knowledge acquisition, knowledge conversion, knowledge application, and knowledge protection. One hundred sixteen respondents comprising of the top management from manufacturing SMEs had participated in this study. SmartPLS 2.0 (M3) was employed to examine the hypothesised relationships between knowledge management and organisational performance. The results revealed that among the four knowledge management capabilities, only knowledge acquisition and protection had a significant positive relationship with organisational performance, whereas knowledge conversion and application had not. Implications, limitations as well as directions for future research were further discussed.

How Different Ownership Structures Perform in Industry 4.0: A Case of Malaysian Manufacturing SMEs

Small and medium enterprises are vital components for economic growth globally. Similarly, the Malaysian manufacturing SMEs has contributed greatly in developing Malaysia’s economy. However, higher failure rate of the Malaysian SMEs is a great concern among researchers and government bodies. Currently, the industry 4.0 has changed the business environment globally. Therefore, this study attempts to investigate the relationship of ownership structures on firm performance with a mediating role of innovation. Baron and Kenny approach of mediation analysis was used on the sample of the Malaysian manufacturing SMEs. The results revealed that, majority SMEs prefer traditional business methods, which causes the higher failure rate in the industry.

Factors of Lean Manufacturing Practices in Malaysian Manufacturing SMEs

The purpose of this study is to examine the significance of lean manufacturing practices in Malaysian manufacturing practices. The proposed model was empirically evaluated by using survey data collected from 150 manufacturing SMEs that was randomly chosen from the directories of the association of small and medium industries around Malaysia. Questionnaires were mailed and personally distributed to these industries. The findings indicate that this model can predict how the lean manufacturing is being practiced in Malaysian manufacturing SMEs. The results may provide further insights into manufacturing practices in Malaysia.

Diffusion of innovation among Malaysian manufacturing SMEs

PurposeThe purpose of this paper is to examine the attributes of innovation adoption and its effects on the performance of Malaysian manufacturing SMEs.Design/methodology/approachQuantitative data were collected from 360 randomly selected manufacturing SMEs through structured interviews.FindingsThe findings of the study confirmed that, in Malaysian manufacturing SMEs, the degree of persuasion (i.e. relative advantages, compatibility, complexity, trialability and observability), strategic orientation (i.e. consumer, market and entrepreneurship) and firm antecedents (i.e. prior condition, knowledge and risk orientation) have significant effects on the innovation (i.e. product, process and service) adoption and performance of SMEs.Practical implicationsFor policymakers, this study emphasizes the areas to focus on the development of an effective innovation ecosystem for an innovation-led economy. Because SMEs operate with limited resources and capacity, the programs and policies for innovation support systems must focus on providing new innovation information, cost-benefit analyses for new innovation adoption, innovation adoption processes and how new innovations affect performance.Originality/valueThe paper examines an important, but under-researched issue – designed and tested a model under the premises of the DOI and organizational diffusion of innovation theories which improve the knowledge and understanding about the innovation adoption by manufacturing SMEs.

English

English