Risk sources, agility strategy and company performance among manufacturing small and medium enterprises in Malaysia
Small and Medium Enterprise (SME), with its significant contribution to a country’s economy is gaining a corresponding interest from the research community. However, SMEs face numerous risks that could affect their performance resulting in its inability to rise to its full potential. Thus, this pape...
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Online Access: | https://repo.uum.edu.my/id/eprint/30031/1/GBMR%2014%2001%202022%2020-37.pdf https://doi.org/10.32890/gbmr2022.14.1.2 https://repo.uum.edu.my/id/eprint/30031/ https://e-journal.uum.edu.my/index.php/gbmr/article/view/16708 https://doi.org/10.32890/gbmr2022.14.1.2 |
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my.uum.repo.300312023-11-28T11:18:27Z https://repo.uum.edu.my/id/eprint/30031/ Risk sources, agility strategy and company performance among manufacturing small and medium enterprises in Malaysia Yaakub, Sabariah Mustafa, Hamidatun Khusna HF Commerce Small and Medium Enterprise (SME), with its significant contribution to a country’s economy is gaining a corresponding interest from the research community. However, SMEs face numerous risks that could affect their performance resulting in its inability to rise to its full potential. Thus, this paper seeks to study the effect of risk sources (innovation and technology adoption risk, infrastructure risk and legal and regulation environment risk) towards company performance while introducing agility strategy in improving performance. Data was collected through a survey to Malaysian SME manufacturing companies yielding a response from 152 companies. Data were analysed using PLS-SEM. Findings indicate that innovation and technology adoption risk and legal and regulation environment risk have a significant effect on company performance. Meanwhile, the introduction of agility strategy does indicate a role in improvement of company’s performance in handling these risk sources. It would seem that agility strategy plays an effective role in mitigating risks therefore improving SME’s performance, contributing to knowledge of effective mitigating strategies in the field of risk management in supply chain for SMEs. UUM Press 2022 Article PeerReviewed application/pdf en cc4_by https://repo.uum.edu.my/id/eprint/30031/1/GBMR%2014%2001%202022%2020-37.pdf Yaakub, Sabariah and Mustafa, Hamidatun Khusna (2022) Risk sources, agility strategy and company performance among manufacturing small and medium enterprises in Malaysia. Global Business Management Review (GBMR), 14 (1). pp. 20-37. ISSN 2180-2416 https://e-journal.uum.edu.my/index.php/gbmr/article/view/16708 https://doi.org/10.32890/gbmr2022.14.1.2 https://doi.org/10.32890/gbmr2022.14.1.2 |
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HF Commerce Yaakub, Sabariah Mustafa, Hamidatun Khusna Risk sources, agility strategy and company performance among manufacturing small and medium enterprises in Malaysia |
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Small and Medium Enterprise (SME), with its significant contribution to a country’s economy is gaining a corresponding interest from the research community. However, SMEs face numerous risks that could affect their performance resulting in its inability to rise to its full potential. Thus, this paper seeks to study the effect of risk sources (innovation and technology adoption risk, infrastructure risk and legal and regulation environment risk) towards company performance while introducing agility strategy in improving performance. Data was collected through a survey to Malaysian SME manufacturing companies yielding a response from 152 companies. Data were analysed using PLS-SEM. Findings indicate that innovation and technology adoption risk and legal and regulation environment risk have a significant effect on company performance. Meanwhile, the introduction of agility strategy does indicate a role in improvement of company’s performance in handling these risk sources. It would seem that agility strategy plays an effective role in mitigating risks therefore improving SME’s performance, contributing to knowledge of effective mitigating strategies in the field of risk management in supply chain for SMEs. |
format |
Article |
author |
Yaakub, Sabariah Mustafa, Hamidatun Khusna |
author_facet |
Yaakub, Sabariah Mustafa, Hamidatun Khusna |
author_sort |
Yaakub, Sabariah |
title |
Risk sources, agility strategy and company performance among manufacturing small and medium enterprises in Malaysia |
title_short |
Risk sources, agility strategy and company performance among manufacturing small and medium enterprises in Malaysia |
title_full |
Risk sources, agility strategy and company performance among manufacturing small and medium enterprises in Malaysia |
title_fullStr |
Risk sources, agility strategy and company performance among manufacturing small and medium enterprises in Malaysia |
title_full_unstemmed |
Risk sources, agility strategy and company performance among manufacturing small and medium enterprises in Malaysia |
title_sort |
risk sources, agility strategy and company performance among manufacturing small and medium enterprises in malaysia |
publisher |
UUM Press |
publishDate |
2022 |
url |
https://repo.uum.edu.my/id/eprint/30031/1/GBMR%2014%2001%202022%2020-37.pdf https://doi.org/10.32890/gbmr2022.14.1.2 https://repo.uum.edu.my/id/eprint/30031/ https://e-journal.uum.edu.my/index.php/gbmr/article/view/16708 https://doi.org/10.32890/gbmr2022.14.1.2 |
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