The critical success factors : a study on the small- and medium- sized manufacturing companies in East Malaysia
In an era of globalization, there is a great need to possess the critical success factors that propel the small and medium-sized manufacturing companies to be competitive and produce higher returns for the owner-managers. The pivotal roles of the SMMCs in the economy, coupled by a very limited st...
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| Main Author: | |
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| Format: | Thesis |
| Language: | English |
| Published: |
2007
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| Subjects: | |
| Online Access: | https://eprints.ums.edu.my/id/eprint/19748/1/The%20critical%20success%20factors.pdf https://eprints.ums.edu.my/id/eprint/19748/ |
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| Summary: | In an era of globalization, there is a great need to possess the critical success
factors that propel the small and medium-sized manufacturing companies to be
competitive and produce higher returns for the owner-managers. The pivotal roles
of the SMMCs in the economy, coupled by a very limited study on this group
warrant this study. This study attempts to investigate the relationship between the
owner-manager's personal background, personality traits, objectives, and the
annual performance of the SMMCs. In addition, this relationship is further tested
by employing the choice of strategy as the mediating variable, and the internal
strategic resources as well as the external factors of industry dynamism and
government intervention as the moderating variables. The results of the study will
determine whether the findings in other countries are similar or applicable In this
study. The sample of respondents are members of the Federation of Sabah
Manufacturers (FSM) and the Sarawak Manufacturers Association (SMA), who own
at least 5% shareholding and manage the small- and medium-sized manufacturing
companies (SMMCs), which employs between 5 and 300 workers and produce an
annual sales between RM1million and RM50 millions. The results indicate that the
owner-managers of the SMMCs are highly complex, and that most of the variables
employed do not cause any variation in the performance results. The SMMCs'
choice of competitive strategies, namely differentiation and focus, are found to
Influence the motives of the owner-managers. The 'Need of Achievement' of the
owner-managers is also found to have a mediating role on the relationship between
the 'differentiation' strategy employed by the owner-managers and the firm's
annual employees' growth. In addition, the strategic financial resources and
reputational resources also play mediating roles in the relationship between the
owner-manager's risk-taking propensity and the focus strategy, and between the
independence motive and the focus strategy, respectively. Even though the findings
do not duplicate the empirical findings found in other countries, nevertheless, the
study can still be used as reference materials for all concerned. A comprehensive
and longitudinal study is highly recommended to establish the critical success
factors of the SMMCs in East Malaysia. |
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