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Sources of competitive advantage for Malaysian micro-enterprises

Sources of competitive advantage for Malaysian micro-enterprises PurposeEntrepreneurial activities are embedded within the networks of social relationships, which facilitate the flow of crucial information and resources. This study aims to examine the effect of social capital (i.e. structural, cognitive and relational), entrepreneurial competencies (i.e. commitment, conceptual and organizing) and micro-enterprise innovativeness (i.e. innovativeness and absorptive capacity) on the competitive advantages of the micro-enterprises owned and managed by women micro-entrepreneurs in Peninsular Malaysia.Design/methodology/approachThis study used a cross-sectional design and collected quantitative data from 417 women micro-entrepreneurs from six selected states in Peninsular Malaysia through structured interview. For data analysis, this study adopted variance-based structural equation modeling, i.e. PLS-SEM.FindingsThe findings of this study revealed a significant positive effect of social capital on entrepreneurial competencies, innovativeness and competitive advantage. The findings also revealed a significant positive effect of entrepreneurial competencies on innovativeness and competitive advantage.Originality/valueThe government and other development agencies working toward enterprise development in Malaysia should therefore focus on designing a platform for women micro-entrepreneurs to promote the development of structural and relational social capital, which foster the flow of crucial information and resources necessary for suitable micro-enterprise performance. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Entrepreneurship in Emerging Economies Emerald Publishing

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
2053-4604
DOI
10.1108/JEEE-05-2017-0037
Publisher site
See Article on Publisher Site

Abstract

PurposeEntrepreneurial activities are embedded within the networks of social relationships, which facilitate the flow of crucial information and resources. This study aims to examine the effect of social capital (i.e. structural, cognitive and relational), entrepreneurial competencies (i.e. commitment, conceptual and organizing) and micro-enterprise innovativeness (i.e. innovativeness and absorptive capacity) on the competitive advantages of the micro-enterprises owned and managed by women micro-entrepreneurs in Peninsular Malaysia.Design/methodology/approachThis study used a cross-sectional design and collected quantitative data from 417 women micro-entrepreneurs from six selected states in Peninsular Malaysia through structured interview. For data analysis, this study adopted variance-based structural equation modeling, i.e. PLS-SEM.FindingsThe findings of this study revealed a significant positive effect of social capital on entrepreneurial competencies, innovativeness and competitive advantage. The findings also revealed a significant positive effect of entrepreneurial competencies on innovativeness and competitive advantage.Originality/valueThe government and other development agencies working toward enterprise development in Malaysia should therefore focus on designing a platform for women micro-entrepreneurs to promote the development of structural and relational social capital, which foster the flow of crucial information and resources necessary for suitable micro-enterprise performance.

Journal

Journal of Entrepreneurship in Emerging EconomiesEmerald Publishing

Published: Jun 4, 2018

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