Internal Factors Environment and Small Medium Enterprises (SMEs) Performance: Malaysian Evidence

Abstract:

This study investigates the association between internal factors environment, and the performance os small and Medium Enterprise (SMEs) comprises employee’s capabilities and behavior, technological environment, financial management and creativity and innovation. A total of 152 SMEs were selected as sample for this study, and each was given a three-section survey questionnaire. The findings reveal that all the internal factors, except for creativity and innovation, have a significant association with the SMEs performance. The outcome of this study heightened the importance of internal factors, which could be a reference to the government agencies and authorities to strengthen the performance of SMEs, locally as well as globally. The findings are expected to add to the extant literature as well. Several limitations and recommendations for future research were discussed.

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