International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

The Unique Situation Explaining the Entrepreneurial Orientation of Malay SMEs in Malaysia
Rohani Mohd, Nor Intan Adha Hafit, Zahariah Sahudin, Zaimy Johana Johan

The present study attempted to disclose the entrepreneurial behaviors of Malay business owners by specifically examined hostility environment as a moderator to the self-efficacy – entrepreneurial orientation relationship. In doing so, samples were extracted from the sampling frame of Majlis Amanah Rakyat Malaysia (MARA) which comprised Malays (the whole of Malaysia) who own small scale businesses in manufacturing. 26 percent of 620 questionnaires distributed came back to the researchers for analysis. The data was analyzed by using hierarchical regression analysis to test the moderating role of hostility. Even though hostility did not moderate the relationship, it was found to be useful as either an antecedent or mediator role. The findings also indicated the important role of self-efficacy in improving the entrepreneurial orientation of Malays the whole of Malaysia. While past researches indicated the significant role of business environment as a moderator, the present study uncovered otherwise, indicating the unique scenario of business establishments in Malaysia. This explains why the entrepreneurial orientation of Malays does not change despite much incentives provided to them by Malaysian government. Their confidence in operating business (self-efficacy) is the actual reason for them to improve. The findings serve a reminder for the government to assist Malay business owners to improve. The training module should include provisions that can stimulate the self-efficacy of the Malays.

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