The Mediating Effect of Entrepreneurial Orientation in the relationship between SME’s Developing Program and Business Success of SME in Perak

Kesan pengantaraan orientasi keusahawanan dalam hubungan di antara program pembangunan Perusahaan Kecil dan Sederhana (PKS) dengan kejayaan perniagaan usahawan di Perak

  • Nor Hafizah binti Hasan Universiti Pendidikan Sultan Idris, Tanjong Malim, Perak, Malaysia
  • Hazianti binti Ab. Halim Universiti Pendidikan Sultan Idris, Tanjong Malim, Perak, Malaysia
Keywords: SME Development Program, Entrepreneurial Orientation, Business Success, Mediator and SMEs

Abstract

The main objective of this study is to analyze the relationship between the areas of focus in the SME Development Program on the success of entrepreneurs in Perak. This study found that the success of SME business is better if the entrepreneur participates in the SME Development Program organized by SME Corporation and related agencies. This study also take the entrepreneurial orientation (EO) in influencing the success of SME business. Previous studies have not provided a comprehensive explanation of business success through an entrepreneurial orientation perspective. The main problem of this study is to review the success of business among SMEs by assessing the impact of SME development programs on business success, in which the entrepreneurial orientation as a mediator. This study uses a quantitative method that is the distribution of a questionnaire involving 304 SMEs from the manufacturing sector, services sector, and others covering 12 Districts in the State of Perak. There are four hypotheses developed to test the relationship between the main construct and the data then analyzed using IBM SPSS software version 23.0. The findings of this study indicate that there is a significant positive effect between SME development programs, entrepreneurial orientation, and business success. The data analysis used were descriptive analysis, correlation, and regression. The findings of this study indicate that there is a significant positive effect between SME development programs, entrepreneurial orientation, and business success. Regression analysis showed that the entrepreneurial orientation variable was a significant positive mediator and had a statistically significant effect of change of 31% (R2 = 0.31). In conclusion, this study is in line with the government's requirements to ensure that every entrepreneur is applied with the right entrepreneurial knowledge through development and entrepreneurship programs conducted, while entrepreneurial orientation creates the ability to be more proactive, competitive, and innovation can further enhance SME business success in Perak.

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Published
2021-03-19
How to Cite
Hasan, N. H., & Ab. Halim, H. (2021). The Mediating Effect of Entrepreneurial Orientation in the relationship between SME’s Developing Program and Business Success of SME in Perak. Management Research Journal, 10(1), 42-57. https://doi.org/10.37134/mrj.vol10.1.4.2021