Malaysian Small And Medium-sized Enterprises Research Articles

Greening the hospitality industry: examining institutional influences and perceived benefits of EMS in Malaysian SME hotels

PurposeThe majority of Malaysian firms are small and medium-sized enterprises (SMEs), and the hospitality industry is no exception. However, a study on environmental management systems (EMS) reveals that relatively few studies have observed EMS implementation in small and medium-sized enterprises hotels (SMEHs). Hence, this study aims to determine the link between institutional influences and mediating effects of top managers' perceived benefits toward EMS implementation by Malaysian SMEHs.Design/methodology/approachThe results of a questionnaire survey of 252 SMEHs managerial-level professionals using Smart-PLS software provide some explanation for the marginal action taken by these SMEHs to improve their environmental performance.FindingsBased on the findings, five variables might stimulate the implementation of an EMS: regulatory influences, customer influences, competitor influences, employee influences and manager attributes influences.Research limitations/implicationsThis study significantly advances understanding of EMS and SMEHs, offering a replicable research framework applicable across industries and countries. Scholars can leverage the framework for further exploration, while managers should recognize institutional influences on EMS implementation.Originality/valueGiven that this study is one of the few that investigates the institutional influences and perceived benefits of EMS implementation, it may provide valuable information for future research on the hospitality industry and the SMEHs among researchers and practitioners.

A Study on the Mediating Effect of Knowledge Management Capability between HRM Practices and Radical Innovation Capability in Malaysia SME-ICT

Increasingly, executives understand the value of information as a source of new ideas for their companies. Only a small number of research examine the role of HR management in increasing knowledge competency, which leads to enhanced creativity inside firms. Because of this, this research examines how human resource management policies and practices affect the link between knowledge management competency and innovation. Consequently, The research is based on primary data collected from 200 SMEs in Malaysia's Klang Valley in the ICT sector. The study's goals necessitate a quantitative methodology. ICT small and medium-sized enterprises (SMEs) owners, CEOs, and managers are surveyed utilizing a survey method. More than 200 responses were received and analysed in the course of this study. The study models and hypotheses were evaluated using the Partial Least Squares (PLS) method. Research is scarce in the domains of HRM and innovation, as well as the interaction between HRM and knowledge management in the context of innovation. Research indicates a good correlation between Human Resource Management (HRM) Capabilities and Knowledge Management.

Empowering Bumiputra SMEs Through Intellectual Capital: Lessons from a Developing Nation

Small and medium-sized enterprises (SMEs) play a vital role in the economic development of countries by contributing to the expansion of the export sector's GDP, generating a significant number of employment opportunities, and promoting the development of social infrastructure. Despite their crucial role, SMEs in Malaysia have not received sufficient attention in terms of intellectual capital research. This study aims to address this gap in the current literature by examining the intellectual capital of Bumiputra SMEs in a developing country. The primary objective of this study is to assess the impact of intellectual capital components on the performance of Bumiputra SMEs. The data gathering process will involve qualitative techniques, specifically NVivo-facilitated interview sessions. The insights derived from these sessions will provide SME firm owners with a comprehensive understanding of how intellectual capital influences company performance, empowering them to make informed decisions. This study relies on two firm owners as the main sources of information during the interview sessions. The findings reveal that various elements of intellectual capital, such as human capital, structural capital, customer capital, social capital, technological capital, and spiritual capital, significantly influence the commercial performance of Bumiputra SME entrepreneurs. The study's conclusions have a notable and positive impact on the theoretical and practical aspects of Bumiputra SME businesses by expanding the understanding of how intellectual capital serves as a strategic asset for SMEs and by incorporating resource-based, knowledge-based, and social capital frameworks. The decision of employing only a small number of participants was determined by limitations on time, money, and accessibility. Nevertheless, only a small number of representations can yield significant results, particularly in qualitative studies where data accuracy and breadth are crucial.

Is knowledge management a missing link? Linking entrepreneurial competencies and sustainable performance of manufacturing SMEs

PurposeBy combining relevant literature and using quantitative methodology, this study aims to look into the role of knowledge management (KM) as a mediator between entrepreneurial competencies (ECs) and the sustainable performance (SP) of manufacturing small and medium-sized enterprises (SMEs).Design/methodology/approachThe relationships in the proposed model were examined with data collected from 122 Malaysian SMEs using a cross-sectional technique and a standardized questionnaire and analyzed using structural equation modeling path analysis.FindingsAccording to the findings, ECs have a positive and considerable impact on KM as well as the SP of manufacturing SMEs. Importantly, KM partially mediates between ECs and the SP of manufacturing SMEs.Research limitations/implicationsThis research provides a theoretical contribution through the integration of ECs, KM and SP within a unified framework that takes into account the viewpoints of the resource-based view, the knowledge-based view and the triple bottom line. The results corroborate that ECs directly affect SP and indirectly through KM. Nevertheless, the study’s use of cross-sectional survey data makes it impossible to draw conclusions about causes. This is because ECs, KM and SP all have effects on time that this empirical framework cannot account for.Practical implicationsThe findings of this research provide valuable insights for managers and decision-makers in SMEs, who are expected to show an increasing interest in adopting KM processes into their companies through which ECs can be translated into SP.Social implicationsBy applying the proposed framework, SMEs can conduct their activities in ways that do not harm environmental and societal well-being while achieving appropriate economic performance at the same time.Originality/valueAs a result, the findings of this study can add to the literature on ECs and KM, as well as boost the chances of SME sustainability. Directions for future research are also provided in relation to a better understanding of the factors affecting the SP of SMEs.

Deciphering blue economy for SMEs in Malaysia: A dual approach through scoping review and stakeholder conversations

The expanding blue economy, marked by its focus on sustainable use of ocean resources, offers enormous opportunity for Small and Medium-sized Enterprises (SMEs). However, for SMEs to properly integrate and succeed in this economy, they must first have a thorough awareness of the sector’s challenges and prospects. This research used a scoping review and a qualitative study to identify the challenges and opportunities facing SMEs operating in the blue economy. The study discovered recurring themes and gaps in the existing literature by conducting an extensive examination of scholarly publications. The key challenges identified include complicated regulatory frameworks, restricted access to funding, infrastructure restrictions, talent deficiencies, government support, and market outreach. In-depth interviews with Malaysian SME leaders, industry stakeholders, and policymakers were conducted to decipher these findings. The results of interviews confirmed the relevance of the regulatory framework, infrastructure restrictions, talent deficit, and market access challenges in the Malaysian context. In particular, the study revealed emerging opportunities for Malaysian blue SMEs in sectors such as renewable energy, sustainable fisheries, marine biotechnology, and ecotourism. The study emphasizes the importance of an encouraging policy framework, knowledge-sharing platforms, and capacity building activities. It finishes by underlining the ability of SMEs to drive a sustainable and thriving blue economy, if challenges are systematically handled, and opportunities are appropriately capitalized.

Testing Occupational Hazard Self-Evaluation Module (OHSEM) Intervention among Workers of SME (Manufacturing) in Northern Malaysia

Introduction: Workplace accidents have been a persistent problem in Malaysia’s manufacturing industry, particularly for small and medium-sized enterprises (SMEs). Employee behavior has been identified as a significant contributing factor to these accidents, and research has suggested that improving safety knowledge and attitudes can enhance safety behavior. Despite this, there have been no empirical intervention studies in Malaysia to investigate the effectiveness of safety intervention programs aimed at improving SME worker safety behavior. Therefore, this study aimed to assess the efficacy of the Occupational Hazard Self-Evaluation Module (OHSEM) intervention in enhancing safety knowledge, attitudes, and behavior (KAB) among SME workers in the manufacturing sector. Methods: A quasi-experimental design with control group was utilized to evaluate the effectiveness of the OHSEM intervention. The intervention was implemented over a 12-week period on production workers in the experimental group, while the control group received no intervention. A self-administered questionnaire was distributed to 88 production workers in both groups before and after the intervention to measure the improvement of safety KAB. Descriptive analysis and an independent t-test were used to analyse the data. Results: The post-test results showed that safety KAB for the control group was moderate (mean = 2.11), while the mean score in the experimental group was high (m=4.17). Furthermore, the t-test result revealed a significant difference in safety KAB mean scores between the experimental and control groups. Conclusion: This study provides empirical evidence on the effectiveness of the OHSEM intervention in enhancing safety KAB in SMEs in the Malaysian SME (manufacturing) sector.

Investigating Factors Affecting Solar Photovoltaic (PV) Adoption among Malaysian SMEs

This study investigates the factors affecting solar PV adoption among Malaysian small and medium-sized enterprises (SMEs), focusing specifically on manufacturing. The study employed Technology-Organisational-Environmental (TOE) model as a research framework. The study hypothesised that owners’/managers’ technology readiness (innovativeness and optimism), relative advantage, organisational readiness, and government support play a significant role in the adoption of solar PV. Data were gathered from 69 manufacturing SMEs and analysed using Partial Least Squares (PLS) Structural Equation Modelling (SEM). The findings demonstrate a significant influence of owner’s/managers’ technology readiness (innovativeness and optimism) and relative advantage on a firm’s adoption of solar PV. Meanwhile, organisational readiness and government support were not significant predictors of the adoption. The study’s findings can be helpful to policymakers (e.g., the government) and solar authority bodies [e.g., Sustainable Energy Development Authority (SEDA)] in Malaysia to design effective strategies, programs, and incentives to promote solar PV adoption in the manufacturing sector. The study further suggests that the efforts to promote greater adoption of solar PV among firms should be capitalised on its perceived benefits. In short, consistent with the government initiative to promote a more sustainable environment using renewable energy sources such as solar PV, this study offers an insightful perspective to understand the acceptance of this renewable energy solution among the industry players, specifically the SME sector.

SURVIVE AND THRIVE: DRIVING FACTORS FOR SMES PERFORMANCE IN MALAYSIA

Purpose: The purpose of this paper is to empirically test the relationships between entrepreneurial orientation (EO), total quality management (TQM), and small and medium-sized enterprises (SMEs) performance. It specifically examines whether innovation practices (IPs) mediate the EO, TQM, and SME performance relationships.Design/methodology/approach: A self-administered questionnaire was utilised to collect data from owners/managers of SMEs in Malaysia. The validity and reliability of the instrument were evaluated. Structural equation model utilised to analyse the relationships using PLS 3.3.9.Findings: Statistical outcomes displaying a significant direct effect of EO and IPs on SMEs’ performance, while TQM displayed an insignificant effect on SMEs’ performance. For mediation effect analysis, the indirect effect of EO and TQM on SMEs’ performance through IPs was significant.Research limitations/implications: A sample of manufacturing SMEs was investigated using a quantitative cross-sectional research design. Future research could use qualitative techniques or a longitudinal research design for further information analysis.Practical implications: The research findings provide insights into the owners/managers of SMEs in today’s dynamic manufacturing environment, with a focus on EO and TQM as driving factors to enhance their performance.Originality/value: The research extends the literature on EO and TQM with a comprehensive understanding from the standpoint of Malaysian SMEs.

The impact of information technology on accounting systems towards SME performance in Malaysia

This study seeks to investigate the impact of accounting information systems on the performance of small and medium-sized enterprises (SMEs) in Malaysia. SMEs were the focus of this study due to their importance to the economy. The features of an accounting system, namely accuracy, efficiency, reliability, data quality, and ease of use, were tested against the performance of a sample of SMEs that implemented an Accounting Information System (AIS) in their companies. A closed-ended questionnaire consisting of a five-point Likert scale was used to gather the data. Convenience sampling was utilized to collect data from a sample size of 112 respondents using questionnaires distributed via online platforms, including social media, messaging applications, and email. The findings revealed that only three features of an accounting information system were positively related to the performance of SMEs in Malaysia, namely accuracy, reliability, and ease of use. Therefore, an accounting system must generate accurate, reliable, and easy-to-use data to assist management in making informed decisions. Companies need to provide internal and external training for accountants and decision-makers and give organizational culture the attention it deserves as it impacts accounting data quality. This training should aim to promote a strong work ethic and a culture of excellence.

DEVELOPMENT OF PREVENTIVE COUNTERMEASURES TO COMBAT COVID-19 PANDEMIC IN SMALL AND MEDIUM-SIZED ENTERPRISES IN MALAYSIA

The World Health Organization announced the COVID-19 pandemic in 2020, and it has since infected over 286 million people worldwide in 2021, killing over 5.4 million. In Malaysia, the disease infected approximately 2,758,086 people, resulting in 31,487 deaths. Malaysian government has enacted a Movement Control Order (MCO) under the National Recovery Plan (NRP) to contain the infection. The multiple MCO phases resulted in the closure of numerous small and medium-sized enterprises (SMEs), resulting in revenue loss and employment losses. The objectives of this research include developing an efficient COVID-19 preventive countermeasure or enhance existing MITI Safe@Work guidelines for Malaysian SMEs and to suggest improvements to the National Recovery Plan roadmap and the MySejahtera system. An open-ended questionnaire survey is sent to Malaysian workers with safety or health background to obtain their professional information. By using Excel and NVivo software, 15 respondents’ answers are chosen for the qualitative analysis. The results include analysing experts’ valuation and insights on the existing countermeasures, NRP roadmap, MySejahtera system, development of preventive protocols for SMEs workplace, suggestion of improvements to the NRP roadmap and MySejahtera system application. In conclusion, these indicate that there are still improvements that can be made to the guidelines implemented by the government in the future with proper studies.

Factors Influencing the Adoption of Online Marketing among Malaysian SMEs

In today's global economy, using online marketing and Internet has become an imperative move to improve business operations. However, due to limited technical diffusion and the fact that the majority of small- and medium-sized enterprises (SMEs) in Malaysia do not engage in research and development (R&D) activities, SMEs are still lagging behind in adopting this modern technology. Therefore, there is a need to investigate SMEs in terms of their extent of online marketing adoption and factors influencing their adoption of online marketing. A quantitative survey was conducted on 80 selected SMEs in Malaysia. The study found that the proposed framework could be used to assess the degree of online marketing adoption among SMEs. The adoption of online marketing among SMEs was rather high. Specifically, the findings demonstrated that compatibility, complexity and trialability significantly influenced adoption of online marketing. However, the adoption of online marketing was not affected by relative advantage and observability. This study further concluded compatibility was the most important factor which influenced SMEs in adopting internet marketing.

Social Media Content Creation: A Study of SMEs in Malaysia

In recent years, social media has taken the world by storm in the digital society. Initially, social media was created to eliminate the barriers of time difference and physical distance between individuals. Taking advantage of the situation, especially with the recent COVID-19 pandemic where the physical world was suddenly halted and everything goes online, organisations perceived an opening to exploit the benefits of social media for the advantage of their online businesses. Unfortunately, many Malaysian SMEs (small and medium-sized enterprises) still lack in awareness of the advantages to be gained from social media adoption and engagement. Given the growing significance of social media in contemporary marketing tactics, it is essential for SMEs to comprehend how to produce compelling content that appeals to their target market. The study intends to investigate the kinds of material Malaysian SMEs should produce for social media, the methods they employ to produce and disseminate information, and the difficulties they encounter along the way. In-depth interviews with SME owners and managers will be used to gather data through qualitative study, and non-probability sampling which is snowball sampling will be used to gather participants. Therefore, this concept paper seeks to comprehend what constitutes good content for social media and how social media content creation impacts a firm’s overall performance.

Impact of Entrepreneurial Leadership, Entrepreneurial Self-Efficacy, Basic Psychological Needs Satisfaction, and Training Effectiveness on Entrepreneur Resilience in Malaysian SMES

The COVID-19 Pandemic has impacted industries worldwide, affecting virtually every industry and business field as it spreads. Small and medium-sized businesses, in particular, have been particularly hard hit due to a scarcity of funding and a lack of entrepreneurial skills such as resilience. However, research on resilience at an individual level is underexplored, with even less attention on resilience in the context of entrepreneurs. Thus, this study examined entrepreneur resilience in Malaysian SMEs related to entrepreneurial leadership, entrepreneurial self-efficacy, basic psychological needs satisfaction, and training effectiveness. Social cognitive and self-determination theories underpin the study framework. Integrating both theories can provide a motivating lens to facilitate a more holistic understanding of resilience factors. Indeed, addressing the entrepreneurs' basic psychological needs and satisfaction can help entrepreneurs overcome their fear of failure. The study used a quantitative approach to collect primary data from 221 Malaysian small and medium-sized enterprises (SME) entrepreneurs through an online questionnaire. Partial Least Squares-Structural Equation Modeling (PLS-SEM) was used to analyze the data. The findings reveal that entrepreneurial self-efficacy is statistically significant and positively impacts entrepreneur resilience. Meanwhile, basic psychological needs satisfaction mediates the relationship between entrepreneurial leadership, entrepreneurial self-efficacy, and entrepreneur resilience. The second contribution of this study is that it establishes a moderating impact on training effectiveness. As a result, this study discovered that entrepreneurial self-efficacy, basic psychological needs satisfaction, and training effectiveness directly or indirectly impacted entrepreneur resilience. Entrepreneurial leadership, on the other hand, is the inverse. Many previous studies on the factors influencing resilience yielded inconsistent and incoherent findings. Therefore, this study contributes to the theoretical debate on exploring resilience concepts, measures in SMEs, and the factors that influence resilience at the entrepreneur level.

Developing an IoT Framework for Industry 4.0 in Malaysian SMEs: An Analysis of Current Status, Practices, and Challenges

This qualitative study aimed to explore the current status, practices, and challenges of Internet of Things (IoT) implementation and to develop an IoT framework for Industry 4.0 in Malaysia. Industry 4.0 enhances a company’s manufacturing competitiveness and efficiency. However, the implementation of Industry 4.0 in Malaysian small- and medium-sized enterprises (SMEs) is still in its early stages. Five participants from three different SMEs were selected for online interviews and a focus group. Due to the COVID-19 pandemic, the interviews were conducted online and lasted about 30 to 45 min. The data collected from the interviews were analyzed through thematic analysis and used to validate the literature review and to identify gaps in existing frameworks. The IoT framework was developed through a focus group of experts. This study found that the implementation of Industry 4.0 is relatively low in Malaysian manufacturing SMEs. SMEs are facing various challenges, including the need for education and training, budget constraints, and a lack of experience and knowledge among workers. This study found that the positive impact of IoT implementation included improved internal communication, reduced errors, and enhanced product quality and safety. In addition, this study resulted in the development of an IoT framework for SMEs in Malaysia.

Service quality by small medium practices towards SMEs: The expectations, perceptions, and firm performance

This study examined the relationship between the expectation and perception of service quality by small and medium practices (SMPs) towards the performance of small and medium-sized enterprises (SMEs). This study utilized the questionnaire survey as the research instrument distributed to the managers/owners of SMEs in Malaysia. Using multiple regression analysis on 162 respondents, this study shows that the expectation of the service quality provided by SMPs has a significant positive relationship with the perceptions of the service quality received. Similarly, the perceptions of service quality have a significant positive relationship with the firm performance. The findings from this study provide some implications for the SMPs in improving their service quality in performing their tasks. This is because the expectations and perceptions of SMEs play an important role in appointing SMPs for accounting-related matters. This study contributes to the accounting literature and provides information regarding the service quality dimensions which could help SMPs to assess the success of their services.

Determinants of environmental, financial, and social sustainable performance of manufacturing SMEs in Malaysia

Discovering the determinants of firm sustainable performance from the Small and Medium-sized Enterprises (SMEs) perspectives is essential. However, few studies have empirically examined all three environmental, financial, and social pillars of sustainable performance into a single research framework in the context of emerging economies like Malaysia. Drawing on the resource-based view and institutional theory, this study identified the determinants of environment, financial, and social sustainable performance of manufacturing SMEs. Data was collected from 209 Malaysian manufacturing firms. A hybrid approach of structural equation modeling (SEM) - artificial neural network (ANN) was used to assess the hypotheses and predict the level of their importance toward sustainable performance. Results showed that green entrepreneurial orientation, green innovation, leadership commitment, stakeholder pressure, and market orientation positively and significantly influenced social performance. Environmental performance was predicted by green entrepreneurial orientation, green innovation, leadership commitment, and market orientation. Green entrepreneurial orientation and market orientation demonstrated a positive influence on financial performance. Results of ANN showed that leadership commitment is the most significant factor influencing environmental and social performance while green entrepreneurial orientation is the first ranked factor predicting financial performance. These findings extend the knowledge by shedding light on the determinants of SMEs' sustainable performance. The study enables SMEs to take proper actions in response to sustainability development. Besides, the findings assist practitioners and policymakers in setting effective plans by giving more attention to leadership commitment and green entrepreneurial orientation as the most significant determinants.

Small and Medium-Sized Businesses in Malaysia Can Look Forward to the Future of Co-Creation, a Literature Review

Purpose: The fundamental objective of the study is to provide Malaysian SMEs with a competitive edge by creating a knowledge infrastructure around the co-creation phenomena and pinpointing the existing gap in prior understanding of co-creation. Theoretical framework: The study provides a summary of the literature on topics such as form, success, origins, definitions, diversity, competitive advantage, differentiation, co-creation innovation, the notion of collaborative advantage, and the DART model for co-creation. The theory and model codes that were uncovered as part of the literature review provided a solid foundation upon which to build further investigations. Design/methodology/approach: This is a descriptive-based study. The literature review within that article will stress the need for top-level management to know about the positive effects of customer co-creation. Findings: Co-creating value with customers has the potential to increase brand equity, but this has not been well studied, especially in the context of small and medium-sized businesses. To address these research gaps, this study delves into the topic of co-creation among clients of small and medium-sized enterprises (SMEs) in the service sector. Conclusion: It looked into and offered writings on a wide variety of topics, including the landscape of forms, success, and beginnings; definitions; diversity; competitive advantage; uniqueness; and co-creation innovation. The codes from the theory and model would be used to build clusters and emergent themes in the literature review, which would then serve as the basis for further studies.

Adoption Strategy for Electrical and Electronics (E&E) Small and Medium-Sized Enterprises (SMEs): Malaysia IR4.0 Perspective

Many developing countries are facing difficulty in embracing Industrial Revolution 4.0 (IR4.0) technologies as it creates a challenging business environment for its manufacturing sector. It is vital for Malaysia, a developing country, in ensuring their manufacturing sector particularly Electrical and Electronics (E&E) Small and Medium-sized Enterprises (SMEs) are not left behind in the IR4.0. It is the mission that every E&E SMEs fully adopt IR4.0 technologies and drive towards sustainable and competitive economic growth. In doing so, concerns regarding the human dimension on digitally driven transformation initiatives are much more needed to be studied. Leveraging the human capabilities to the IR4.0 technologies is not only upskilling themselves in the field that is related to IR4.0 technologies, but also will decentralizing operations and coordinate processes. The IR4.0 will enable operations and processes equipped with extremely automated and digitized machines and robots that will be the parts of production in future. As such, this paper provides an insight on the research gap, the development of the manufacturing sector focusing on the E&E SMEs in Malaysia, the importance of IR4.0 and finally the significance of this research that explains the IR4.0 adoption.

Linking knowledge acquisition, knowledge dissemination, and manufacturing SMEs’ sustainable performance: the mediating role of knowledge application

PurposeThis study aims to examine the impact of knowledge acquisition and dissemination on the sustainable performance of small- and medium-sized enterprises (SMEs). Additionally, the mediating role of knowledge application in this relationship is investigated.Design/methodology/approachData collected from 428 manufacturing SMEs in Malaysia were analyzed using the partial least squares structural equation modeling approach.FindingsThe results reveal that knowledge acquisition significantly impacts the sustainable performance of manufacturing SMEs, and knowledge application partially mediates this impact. Cutting-edge knowledge from within or outside the organization enables a deeper understanding of information regarding new products/services, a list of competing suppliers, consumer preferences and so on.Research limitations/implicationsThis study combined the knowledge-based view theory and the triple bottom line framework into a unified conceptual framework and examined the impact of knowledge acquisition and dissemination on manufacturing SMEs’ sustainable performance as well as the mediating role of knowledge application on manufacturing SMEs’ sustainable performance.Practical implicationsManufacturing SMEs should emphasize knowledge application in business operations and encourage employees to develop and enhance their knowledge acquisition and dissemination to leverage knowledge in ways that enhance business operations, produce new products and generate new knowledge assets.Originality/valueThis study is unique in that it highlights the partially mediated effects of knowledge application on the linkages between knowledge acquisition and manufacturing SMEs’ sustainable performance and the fully mediated effects of knowledge application on the association between knowledge dissemination and sustainable performance of manufacturing SMEs.

FACTORS THAT IMPACT THE EFFECTIVENESS OF SOCIAL MEDIA AS A MARKETING TOOL IN SMALL AND MEDIUM-SIZED ENTERPRISES IN SELANGOR, MALAYSIA

Small and medium-sized enterprises (SMEs) play a vital role in the Malaysian economy. The success of SMEs is critical for Malaysia's total economic progression, both nationally and globally. Conducting business online is one of the opportunities social media has provided entrepreneurs. SMEs often lack the means to conduct in-house marketing operations or hire a skilled marketing consultant. Social media is a massive dialogue that everyone can join. With social media, businesses have the added advantage of following statements and replying instantly. While there is much literature on social media marketing methods, there is not much information on how businesses might utilize social media to enhance profits. There is little academic research into the elements that drive social media use and its impact on SMEs in Malaysia. This research aims to develop an understanding of improving the use of social media as a marketing tool in SMEs and address its relationship to brand awareness, consumers' engagement, word-of-mouth, conversion rate, and effectiveness. For this quantitative study, data was collected using questionnaires conveyed to SMEs engaged in online marketing activities. The survey yielded 177 valid responses. The findings of this study indicate that word-of-mouth and engagement were insignificant. However, brand awareness and conversion rates were significant. This result is significant for SMEs in emerging markets as it allows them to establish their marketing presence and enhance brand equity.<p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/edu_01/0811/a.php" alt="Hit counter" /></p>