EO

Financial information mediated innovativeness and return on sales (ROS) relationship proved in a study among small and medium agro-based enterprises (SMAEs) in a state in Northern Peninsular Malaysia. The study conducted among sample of 125 SMAEs in the state of Kedah, an agro-based state in Northern Peninsular Malaysia. Mediating effect of eight dimensions distinctive capabilities (DC) on four dimensions entrepreneurial orientation (EO) ROS relation observed in a two-stage regression analysis that lend partial support to the hypothesis. Direct relationship between EO and DC proved all four EO dimensions explained five DC dimensions. Subsequently, only each one of DC and EO dimension significantly predicted ROS due to two control variables have more explanation in predicting ROS. Seven-point Likert scales of 29 EO and 52 DC items went through separate factor analysis verifying validity of the construct respectively. The factor analysis loaded with 18 items in four factors of EO and 28 items with eight factors of DC. EO and DC found as distinct variables but correlated. The dependent variables derived from objective response in SMAEs’ total sales average between year 2000 and 2003. ROS computed using financial ratios’ formula by dividing the total sales average by net profit. EO and DC of SMAEs in Malaysia share some resemblances of EO and DC characteristics in many parts of the world. The study provides Malaysian SMAEs with some basic foundation to capitalize on strengths and readjust weaknesses to compete in global competitive landscape.

Small and medium agro-based
enterprises (SMAEs) in Malaysia is progressing
parallel with the developed nations’ direction in
2020. The progress in this sector could be
enhanced with the support of strategic
entrepreneurship variables. Entrepreneurial
orientation, knowledge, business network,
technology, strategy and perceived environmental
factors showed significant impact on growth,
efficiency and effectiveness of the SMAEs. A total
of 615 observations were collected from owner or
manager of multi sectoral SMAEs. The study
substantiated specific EO patterns among SMAEs
between regional growth corridors (RGCs) on the
peninsular. EO among SMAEs in Malaysia shows
some forms of strategic entrepreneurship.
Knowledge, network and EO were important
determinants for SMAEs’ growth, efficiency and
effectiveness. Moreover, social network showed
significant intervening effect for higher SMAEs
effectiveness when EO was used. Presence of
technology, strategy and perceived environment
justified higher SMAEs’ growth, efficiency and
effectiveness when knowledge, network and EO
were utilized.