Modeling Factors Affecting SME Performance in Malaysia

Md. Ibrahim Khalil
MBA Student, FBFAH, MAHSA University, Malaysia..

Rasheedul Haque
Associate Professor, Faculty of Business, Hospitality, Accounting and Finance (FBHAF), MAHSA University, Malaysia.

Abdul Rahman bin S Senathirajah
Senior Lecturer, Faculty of Business and Communications. INTI International University, Persiaran Perdana BBN Putra Nilai, 71800 Nilai, Negeri Sembilan, Malaysia.

Binoy Chowdhury
MBA Student, FBHAF, MAHSA University, Malaysia..

Saif Ahmed
MBA Student, FBHAF, MAHSA University, Malaysia..

Abstract:

This study presents research findings regarding the success elements of small and medium-sized enterprises (SMEs). Reliability and validity analyses indicate that the research instrument is a relatively reliable and useful measurement. However, the questions used to evaluate technological orientation may be more reliable. The study uncovered a correlation between technical focus and corporate success. However, these appeared to require moderating variables because further operational explanations were needed to link them to the business's profitability (Musa & Chinniah, 2016; Schuller, 2000). The study revealed that marketing, top management, customer focus, staff guidance, and corporate orientation indicated the performance of a business. However, legality hampered success. The development efforts of SMEs should thoroughly examine these facts. The model's relatively low explanatory power indicates that more factors are required to describe the business success of Malaysian SMEs more completely (Fachrunnisa et al., 2020).