Abstract:

This study explores the relationship between strategic reactiveness (SR) and EM tendencies of SMEs sector within the states of Melaka and Johor in Malaysia. This research considers that strategy-related variables are competitively aggressive and adaptive (Carlson, 1993; Dean & Thibodeaux’s, 1994). Strategic planning allows organizations to anticipate changes and create strategic options for those changes (Rudd et al., 2008). This research applies Stevenson’s six dimensional construct of EM, as interpreted and operationalised by Brown et al. (2001). This framework consists of Strategic Orientation (SO), Resources Orientation (RO), Management Structure (MS), Reward Philosophy (RP), Growth Orientation (GO) and Entrepreneurial Culture (EC). Strategic Reactiveness concept consists of: 1) Strategic formulation (Green et al., 2008); 2) Technocratic decision-making (Green et al., 2008); and, 3) Structural Organicity (Khandwalla, 1976 and Green et al., 2008). It is commonly perceived that SR will have a positive relationship with EM. Respondents for this research include CEOs, owner-managers and entrepreneurs. Data will be collected by distributing questionnaire to 200 small and medium-sized enterprises selected randomly from both the services and manufacturing sectors. This paper is a conceptual which will explore and explain the concept and variables related to the research.