The Relationship Between Entrepreneurial Orientation And Organisational Performance In Small And Medium Enterprise (SMEs)

Hishamuddin, Azreen Hanieza (2016) The Relationship Between Entrepreneurial Orientation And Organisational Performance In Small And Medium Enterprise (SMEs). Project Report. UTeM, Melaka, Malaysia. (Submitted)

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Abstract

Malaysia is heading towards having developed country states by 2020. To realise this national agenda, the country need to further strengths its economic development growth and well-being. One of the important sources for economic growth is the developement of small and medium enterprises (SMEs). SMEs are acknowledged as a source of employment, economic dynamism, competitionand innovation. But their contributions to country's economy are still comparatively low compared with the contribution of SMEs in many developed and developing countries. Research has been show that an entrepreneurial orientation are important for organisational performance in SMEs. Entrepreneurial orientation (EO) is an strategic orientation for Malaysian SMEs. EO is also independent variable and the outcomes produced by performanced to be the successful. The factors of EO which are innovativeness, proactiveness and risk taking also being particularly effective for organisational performance into SMEs. The data were collected around Malacca by conducted 75 respondents from SMEs that operating in manufacturing, service and others industry. The relationship between independent variable and dependent variable which are entrepreneurial orientation and also their factors dimension that effect on organizational performance in SMEs had been analyzed through correlation and regression by using Statistical Packaged for Social Sciences (SPSS). Correlation is a statistical measure that indicates the extent two or more variable fluctuate together. A positive correlation indicates the extent to which those variables increase or decrease in parallel and if a negative correlation indicates the extent to which one variable increases as the other decrease. Regression is a statistical measure that attempts to determine the strength of the relationship between one dependent variable and independent variable. From the result, it is finding out whether the hypotheses and objective will be answer it or not.

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