Malaysian Small And Medium-sized Enterprises Research Articles

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>

An Inside-Out Model of Brand Orientation for SME Branding

The study aims to develop a branding strategy model for small and medium-sized enterprises (SMEs) as the industrial revolution 4.0 necessitates the alignment of branding for sustainability. An inside-out model of brand orientation is a comprehensive approach that focuses on strategic brand resources internally, offering an effective branding strategy for SMEs to attain sustainability. This model is essential for SMEs due to the fragmented market segmentation nowadays, and SMEs need to cope by using their internal resources. Thus, it is crucial to ensure they can exploit market opportunities and not lose out in the cloud of digitalisation. This qualitative study relied on data from in-depth interviews with informants from 10 brand-oriented SMEs in Malaysia. The resource-based view (RBV) was applied as the managerial framework, and thematic analysis was used to reveal themes. It was found that the internal strengths and weaknesses of strategic brand resources indicate the creation of a competitive branding strategy. Interestingly, the companies explored not only tangible resources but also intangible resources in creating their branding strategies and communicating those strategies to employees and customers. The model contributes by guiding SMEs in formulating their branding strategies based on their resources. These findings elucidate an option for SMEs to develop their brands based on their existing resources in order to sustain in the market. Keywords: Branding, brand orientation, strategic brand resources, small-medium enterprises.

Innovation strategies and organisational performance: the moderating role of company size among small- and medium-sized companies

PurposeNot all innovative ideas or approaches commonly implemented by larger companies apply to smaller firms in all regions. Innovation that does not imply company achievements might exhaust their limited resources and cause the market to be uncompetitive. This paper aims to answer two research questions: (1) Do innovation strategies, such as process, marketing and social innovation, affect the performance of small- and medium-sized enterprises (SMEs)? (2) Does company size moderate the relationship between social and marketing innovations with SMEs' performance?Design/methodology/approachThis paper proposed three innovation strategies (i.e. social, marketing and process innovations) influencing Malaysian SMEs' performance. There were 123 valid respondents from SMEs, and the data were analysed using a structural equation modelling partial least square (SEM-PLS) technique.FindingsThe research findings advocate that process innovation directly impacts SMEs' performance, not marketing innovation. Interestingly, the influence of social innovation on organisation performance is only significant when the company size becomes more prominent. Companies can provide consistent and continuous social enhancement that arouses public trust and reputation with more resources and capabilities. Also, smaller companies might concentrate their scarce resources on process innovation with instant beneficial potential instead of a sophisticated marketing strategy.Originality/valueThere is limited empirical research examining how different innovation strategies, especially social innovation, affect SMEs' performance in developing countries. Furthermore, the second-generation analysis (PLS-SEM) technique provides more systematic and comprehensive results.

EMBRACING DIGITAL INTERACTIVE PLATFORMS FOR RAPID INTERNATIONALIZATION

Digital interactive platforms (DIP) enhance communication in a growing online interaction and promote innovation in small business operations. However, there is still a lack of knowledge about the interactions between small and medium-sized enterprises (SMEs) and stakeholders via DIP and the factors contributing to accelerating internationalization. Therefore, this study aims to explore the DIP used by SMEs to interact with service providers to accelerate their internationalization. This study applied the case study methodology and used a dyadic process with selected service providers and Malaysian manufacturing SMEs. The findings of this study examine the interactions of SMEs and service providers, specifically through DIP. From the analysis, two factors contributing to SMEs' rapid internationalization can be deduced. The novelty of this study is that it contributes to the understanding of the DIP used by SMEs to interact with service providers and identifies internal resources and the external environment as DIP factors for SMEs' rapid internationalization. A framework is provided for SMEs to use DIP for rapid internationalization.

Sustainable Entrepreneurship in SMEs

Objective – Sustainable entrepreneurship is considered to be combined with economic, social, and environmental value creation, and is considered a combination of social enterprise and environmental enterprise. The small and medium-sized enterprises (SMEs) in Malaysia are without exception. However, due to the lack of research, the existing literature has not yet provided sufficient explanation for the establishment of sustainable entrepreneurship in Malaysian SMEs. This research included an introduction that gives an overview of the research, continued by the review of existing literature that correlates to the research topic followed by the methodology adopted for this research. Methodology – Specifically, this research extends the Entrepreneurial Event Model to test the proposed framework. To test the research framework and to achieve the research objectives, the survey questionnaire was used to collect the primary data of 200 respondents (entrepreneurs from Malaysian SMEs). The research used Analysis of Moment Structure (AMOS) and Statistical Package of Social Science (SPSS) to encode and analyse the main data collected in this study. Findings – This research's findings revealed that the developed model was sustainable. All the constructs were reliable and valid, and the value was acceptable. The research novelty present in the paper regarding many researchers pay little attention to the key factors that affect the sustainable entrepreneurial ability of SMEs. At this point, this study had proposed a new variable such as environmental awareness and examined its impact on sustainable entrepreneurship performance. Furthermore, the research also provides references for future practical and theoretical contributions. Novelty – This research provides new and important insights for SMEs, entrepreneurs, employees, and institutions through empirical testing of the framework, thereby contributing to knowledge. Type of Paper: Empirical JEL Classification: L21, L26, M19 Keywords: Sustainable Entrepreneurship; Perceived Desirability; Perceived Feasibility; Propensity to Act; Environmental Awareness Reference to this paper should be made as follows: Fong, C.W; Yen, Y.Y; Ramasamy, S. (2022). Sustainable Entrepreneurship in SMEs, J. Bus. Econ. Review, 7(1), 92–102. https://doi.org/10.35609/jber.2022.7.1(4)

Sustainable Entrepreneurship in Malaysian Companies

Sustainable entrepreneurship is considered to be combined with economic, social, and environmental value creation, and is considered a combination of social enterprise and environmental enterprise. When creating sustainable entrepreneurs in the community, small and medium-sized enterprises (SMEs) are significant substances that can't be overlooked. This is because they have made significant commitments to the economic advancement of a nation. The SMEs in Malaysia are without exception. When creating sustainable entrepreneurs in Malaysia, SMEs are significant elements that can't be disregarded. However, due to the lack of research, the existing literature has not yet provided sufficient explanation in the establishment of sustainable entrepreneurship in Malaysian SMEs. This research included an introduction that gives an overview of the research, continued by the review of existing literature that correlates to the research topic followed by the methodology adopted for this research. Specifically, this research extends the Entrepreneurial Event Model, Social Identity Theory, and Social Capital Theory to test the proposed framework. To test the research framework and achieve the research objectives, the survey questionnaire was used to distribute the primary data to 400 respondents (entrepreneurs from Malaysian SMEs). The research used Analysis of Moment Structure (AMOS) and Statistical Package of Social Science (SPSS) to encode and analyse the main data collected in this study. Furthermore, the research also provides references for future practical and theoretical contributions. This research provide new and important insights for SMEs, entrepreneurs, employees, and institutions through empirical testing of the testing framework, thereby contributing to knowledge. Keywords: Small and Medium-Sized Enterprises (SMEs), Sustainable Entrepreneurship, Perceived Behavioural Control, Age, Perceived Desirability, Perceived Feasibility, Propensity to Act, Environmental Awareness, Psychological Capital, Self- Categorization, Social Networks, Reciprocity

Digitization of Business for Small And Medium-Sized Enterprises (SMEs)

Digitalization is critical for the long-term viability of small businesses in the new economy. As global digitalization accelerates, Malaysian SMEs must embrace the digital economy to contribute to economic growth. A critical issue confronting SMEs in the aftermath of the COVID-19 pandemic is adopting a digital business model. This study examines the importance of embedding digital technology into business models among SMEs, which has been shown to increase long-term productivity and sustainability. Technology adoption will help close the productivity gap between SMEs and large corporations by increasing capacity and capability for greater competitiveness and innovation. Keywords: Small-Medium Enterprise (SME); digitalization; resource-based view; performance eISSN: 2398-4287 © 2022. The Authors. Published for AMER ABRA cE-Bs by e-International Publishing House, Ltd., UK. This is an open access article under the CC BYNC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer–review under responsibility of AMER (Association of Malaysian Environment-Behaviour Researchers), ABRA (Association of Behavioural Researchers on Asians/Africans/Arabians) and cE-Bs (Centre for Environment-Behaviour Studies), Faculty of Architecture, Planning & Surveying, Universiti Teknologi MARA, Malaysia. DOI: https://doi.org/10.21834/ebpj.v7i19.3270

Is Digital Business Model Innovation the Silver Bullet for SMEs Competitiveness in Digital Era? Evidence from a Developing Nation

Digital business model innovation (DBMI) is often claimed to be a ‘game changer’ for SMEs in Malaysia. Small and medium-sized enterprises (SMEs) can use digital technology to coordinate business activities and create and deliver differentiated value to customers in both domestic and global markets. The literature on DBMI is sparse in the SME context. Therefore, semi-structured interviews were conducted with eight SME top managers to investigate how SMEs in manufacturing and service sector can implement DBMI (value creation innovation, value proposition innovation, value delivery innovation, value capture innovation); the challenges encountered in the DBMI adoption process and how they can be resolved; and perceptions of DBMI (whether as a ‘storm’ or ‘silver bullet’ for SMEs competitiveness). The findings highlight that DBMI is perceived as a ‘silver bullet’ for SMEs that will allow them to improve competitiveness and sustainability in the digital age. This study contributes insights and valuable information to researchers, academics, SMEs, entrepreneurs (managers) and policy makers.

A Framework of Contingencies Factors, Government Support and Management Accounting Practices in Malaysian Small and Medium-Sized Enterprises

Small and medium-sized enterprises (SMEs) are critical in developing countries, as they create significant job opportunities and contribute to global economic development. Numerous Malaysian SMEs are struggling to survive in the aftermath of the COVID-19 outbreak. As a result, the adoption of management accounting practices (MAPs) plays an important role in supporting decision making, which aids in the sustainability of SMEs' economic growth and leads to long-term performance. However, there is limited research on MAPs being used in SMEs across various industries. This paper aims to propose a conceptual framework for the factors affecting MAPs in Malaysian SMEs from a contingency theory perspective. This paper employs a qualitative approach by reviewing all pertinent literature on the subject from various databases and relating it to the current environment, which attempts to bring the entire concept of MAPs into focus based on the findings of previous research and a proposed conceptual framework that can be used for future research. This research has contributed to the literature by providing a conceptual framework for MAPs from the perspective of contingency theory, with an addition on government support, which can improve industry competitiveness, business prosperity, and long-term performance. Based on the proposed framework, further empirical study is needed to examine whether the factors that contribute significantly to the adoption of MAPs in SMEs.

DIGITAL BUSINESS MODEL INNOVATION IN SMEs: THE ROLES OF ENTREPRENEURIAL LEADERSHIP AND GOVERNMENT SUPPORT

Digital business model innovation (DBMI) is a new business model domain which is increasingly attracting interest in an attempt to resolve challenges to digital transformation. It is known as a crucial research field of business model. However, the empirical studies on SMEs focusing on digital business model innovation in a developing country are relatively scant. Previous studies have concentrated mostly on any two or three elements of DBMI. Thus, this research attempts to bridge the knowledge gap by focusing on all elements of DBMI to reveal valuable insights. Grounded in upper echelon and institutional theories, this study investigates the relationship between entrepreneurial leadership, government support with digital business model innovation (DBMI). Preliminary interviews were conducted with four members of top management from different SMEs in Malaysia to determine whether the literature and anecdotal evidence can reflect real-life business circumstances. The empirical data were collected from 132 Malaysian small and medium-sized enterprises (SMEs) using the purposive sampling technique. As predicted, the empirical findings show that entrepreneurial leadership and government support positively affect DBMI (value creation innovation, value proposition innovation, value delivery innovation, and value capture innovation). This research is novel as it the first study unravelling the pivotal role of entrepreneurial leadership and government support in promoting DBMI adoption to achieve superior performance in the digital sphere. It bridges the literature gaps on the driving factors of DBMI adoption. Present study contributes to the DBMI literature with the empirical evidence from SMEs. This study would complement prior findings on the role of entrepreneurial leadership and government support in business model innovation, e-business and e-commerce. The findings of the present study have various implications for SMEs and practitioners that plan to adopt DBMI in various industries. This model can be incorporated as a strategy by SMEs in both developing and developed countries to increase their competitiveness. Future studies could examine other factors that may contribute to DBMI and its associated outcomes in other contexts.

Model intention to success amongst Muslim SME businesses: an exploratory study and future research

Small and medium-sized enterprises (SMEs) in Malaysia have a significant impact on the economy, contributing 38.3% of GDP in 2022, and so serve as the backbone of the nation. Entrepreneurs' intention to success and their demographic attributes play a crucial role in SMEs' future growth (Delmar and Wiklund, 2008). This paper utilises the theory of planned behaviour (TPB) to analyse and propose numerous determinants of attitude (ATT), subjective norms (SN), and perceived behavioural control (PBC) toward success intention among Muslim SMEs. Further, age, education, and gender to model Muslim SMEs' intention to succeed are also analysed. This study contributes to the understanding of entrepreneurs' intention to success and their demographic attributes that may lead to successful SMEs, in particular among Muslim SMEs in Malaysia.

Sustainable business practices in manufacturing SMEs: The mediating effect of dynamic capabilities

AbstractThis study aims to assess the economic, social, and environmental sustainability of Malaysian manufacturing small and medium‐sized enterprises (SMEs) and the role of dynamic capacities in promoting sustainable business practices. The data was gathered through a survey completed by 216 Malaysian manufacturing SMEs with an SEM‐AMOS nested model comparison analysis. The findings revealed that economic, social, and environmental dimensions are related to sustainable business practices. Besides, firms' dynamic capabilities fully mediate the association between economic, social, and environmental dimensions in Malaysian manufacturing SMEs. This study intended to assist academics, practitioners, policymakers, and other sectors in establishing sustainability to achieve the Sustainable Development Goal 9: Industry, Innovation, and Infrastructure (SDG 9).

Talent Management Practices, Employee Engagement, Employee Retention; Empirical Evidence from Malaysian SMEs

The aim of this research is to investigate the relationship between talent management practices, employee engagement, and employee retention in the small and medium-sized enterprises (SMEs) in Malaysia. To assess the current issues in the industry, a researcher performed a study of relevant themes and subjects in the most recent literature. The above research utilizes a framework to analyze the business environment, while also providing insight on how to employee retention and employees engagement. A study on quantitative research was done. A self-administered questionnaire is used in this study. In this study, convenience sampling methods were employed. A total of 55 employee answered the surveys correctly. This research was analyzed using SPSS version 26. According to the findings of the study, talent management practices have a beneficial impact on employee engagement and retention. Talent management practices contribute for 74.3 percent of employee engagement, and it is expected to improve by 92 percent if talent management is indicated. Talent management practices, on the other hand, accounted for 74.3 percent of employee engagement and are projected to grow by 92 percent if talent management is implemented in a business. The relevant conclusion from the study into talent management practices may have a beneficial impact on employee engagement and retention, allowing the organization to achieve business performance.

THE BENEFITS OF ENTERPRISE RESOURCE PLANNING SYSTEM IMPLEMENTATION OF MANAGEMENT ACCOUNTING PRACTICES IN MALAYSIAN SMES

Malaysia is a primary destination for smart manufacturing and high technology activities. However, as businesses grow and compete, there is high pressure on small and medium-sized enterprises (SMEs) to improve their organizational performance, diversify and expand their business, and support stakeholders' interests. Management accounting practices (MAPs) are likely to allow businesses to achieve such objectives as the use of financial and non-financial information at the management and operational level will assist in planning, control, and decision-making subsequently. This increases profit and sales while reducing operational cost, improving quality, and strengthening stakeholders’ relationships, including enhancing customer value. Enterprise resource planning (ERP) is a system that allows businesses to achieve these enhancements as the ERP software integrates various automated processes related to technology, inventory, finance, services, and human resource management. The review of studies in the field of MAPs has found that the operational, tactical, and strategic benefit from the ERP system implementation may affect MAPs in SMEs; hence, this study aims to examine the possible relationships that may exist between operational, tactical, and strategic benefits of ERP implementation and MAPs among Malaysian SMEs. Data was collected using online questionnaires from 150 managers from SMEs in the state of Selangor. Using Structural Equation Modeling (AMOS), the study found that both operational benefit and strategic benefit of ERP system implementation had significant positive relationships with MAPs in Malaysian SMEs. The implications of the research findings of this study are discussed.

Adoption of enterprise risk management (ERM) in small and medium-sized enterprises: evidence from Malaysia

PurposeThe critical success factor of enterprises is the ability to identify risks and subsequently adapt to the ever-changing technology, as well as the business environment. This paper aims to investigate the top risks faced by small and medium-sized enterprises (SMEs). In the meantime, this paper outlines the perspectives on enterprise risk management (ERM)-based best practices and the adoption level of ERM practices in SMEs.Design/methodology/approachA mixed methodology was used to collect a comprehensive understanding of the adoption of ERM, especially in SMEs. The research is based on cross-sectional questionnaires and collected from risk practitioners in Malaysia. Detailed analysis of the top risks and best practices presented in this paper to identify the developments of risk management in changing organizations. This study used chi-square tests to examine the distribution of the adoption of the ERM programme using risk and insurance management society risk maturity model attributes. Logit regression was used to test the association of ERM efforts with the probability of adopting/considering ERM practices.FindingsThe findings indicated that business interruption risk and economic slowdown risk are the major concern for companies in Malaysia. A business continuity plan was found to be the most common risk management practice. Efforts such as the establishment of a risk management team and the development of risk appetite and/or risk tolerance statements in an organization are associated with the probability of adopting/considering ERM practices.Research limitations/implicationsThis paper helps to identify challenges of implementing risk governance and management in SMEs that shed light on the regulatory setting which we rather know a little about its impacts.Originality/valueThere are limited studies conducted in emerging countries on ERM and the application of the ERM framework in SMEs. Prior research studies are mostly generalized and lack details of risk management strategies applying to specific risks. This paper successfully examined the low maturity level of ERM practices and how SMEs in Malaysia managed those risks that emerged in their organizations.

Effect of intellectual capital and entrepreneurial orientation on innovation performance of manufacturing SMEs: mediating role of knowledge sharing

PurposeManufacturing sectors are identified to be of the foremost importance expected to increase Malaysia's GDP contribution to the Eleventh Malaysia Plan (11th MP). The present study aims to examine the effects of intellectual capital and entrepreneurial orientation (EO) on knowledge sharing in manufacturing SMEs. The impact of intellectual capital and EO on firms' innovation performance in small and medium-sized enterprises (SMEs) is accordingly investigated by considering knowledge sharing as the mediator.Design/methodology/approachThe data were collected via a questionnaire consisting of the owners or top managers of 121 manufacturing SMEs in Malaysia. Partial least square (PLS) was used to analyze the obtained data.FindingsResults indicated that human capital, as well as external relational capital, has a positive correlation with both knowledge sharing and innovation performance mediated by knowledge sharing. It was also shown that knowledge sharing has a significant impact on firm innovation performance. Interestingly, structural capital, internal relational capital and (EO) did not significantly impact knowledge sharing and innovation performance. However, all of these elements are important to influence the firm's innovation performance.Practical implicationsThe study contributes to the literature on intellectual capital, entrepreneurial orientation, knowledge sharing and innovation through developing and testing the possible connections among them. The finding of this study will provide owners and top managers in manufacturing SMEs insight into the variables improving firm innovation performance.Originality/valueThis study provides a basis for researchers to reach more mounting evidence about the practice of knowledge sharing and innovation performance among manufacturing SMEs in Malaysia.

Validity and Reliability of Measurements for Perceived Organizational Support and Turnover Intention Among Employees in the Services Sector

Employee turnover is a major challenge faced by Small and Medium-sized Enterprises (SMEs) in the services sector in Malaysia. It is found that this sector has faced a conservative turnover for the past two years and further studies need to be done to solve this problem. To minimize turnover, employees need to feel safe, valued, and satisfied. Many previous literatures showed that organizations that implement and increase the level of Perceived Organizational Support (POS) among employees could help to overcome turnover problems. Increasing the level of POS is believed to help strengthen the relationship between employee and employer, thereby reducing employees' intention to seek or accept other jobs. This study aims to analyze the validity and reliability of measuring tools designed to identify how POS affects employee turnover in Malaysian SMEs. This study also extends POS research by demonstrating support for a multidimensional measure of supervisor support, organizational justice, and organizational rewards & work conditions. A quantitative method was used and a pilot test for the reliability of the questionnaires was carried out by using SPSS to examine the results of Cronbach’s Alpha. There were 33 respondents from the services sectors who participated in answering the questionnaires. The questionnaire contained 42-items and was developed after a detailed analysis of the literature. Overall, all components show measuring components under the given component providing a reliable internal consistency measure as the alpha of Cronbach for POS and Turnover Intention ranged from 0.784 to 0.856.