The purpose of this study is to identify the critical dimensions of entrepreneurial orientation and to determine the level of entrepreneurial orientation in technology-based SMEs in Malaysia. To conclude, thefindings show that the factor analysis conducted confirms the dimensions demonstrated by technology-based SMEs in this study are consistent as with Lumpkin and Dess (1996). The Table 3.3 Results of
descriptive and inferential analysis
Constructs Test value = 3
Mean t P-value
Innovativeness 4.241 23.479 0.000*
Proactiveness 4.180 29.813 0.000*
Risk-taking 4.101 25.759 0.000*
Competitive aggressiveness 4.016 18.335 0.000*
Autonomy 4.227 24.416 0.000*
Entrepreneurial orientation 4.161 33.077 0.000*
*Significance at 0.05
3 Entrepreneurial Orientation of Technology-Based SMEs in Malaysia 27
multi-dimensionality of entrepreneurial orientation dimensions of innovativeness, proactiveness, risk-taking, competitive aggressiveness, and autonomy verify the findings of Lumpkin and Dess (1996). Thus, it can be explained that thefindings of this study validate further the results of the previous studies where entrepreneurial orientation dimensions can vary independently in many situations (Hansen et al.
2011; Kusumawardhani 2013; Nonyane-Mathebula 2010; Lee et al. 2011). The researcher believes that it is essential to identify the critical dimensions of entre- preneurial orientation as it allows the researcher to place questions with a similar concept in the same category while combining several questions into a more important concept. Hence, it removes questions that are redundant or unnecessary.
The level of entrepreneurial orientation dimension is considerably high where the mean values are all above 4. This indicates technology-based SMEs are entrepreneurial oriented, and they take entrepreneurial orientation seriously as one of the driving factors for them to succeed. A higher level of entrepreneurial ori- entation allowsfirms to identify and seize opportunities in a way that differentiates them from non-entrepreneurial firms (Covin et al. 2006). Rauch et al. (2009) highlighted businesses in high-tech industries gain more benefits from pursuing an entrepreneurial orientation; which supports thefindings of this study. To add fur- ther, Kreiser et al. (2002) explained an entrepreneurial business would exhibit high levels of each dimension of entrepreneurial orientation. This study proves that each entrepreneurial orientation dimension is significantly high where the mean values are all above 4 (see Table3.3). This indicates that technology-based SMEs in Malaysia perceive that entrepreneurial orientation dimension is essential for them to be successful. As explained by Covin and Slevin (1991),firms which have higher levels of entrepreneurial orientation have the ability to recognize and grasp opportunities differently in comparison to non-entrepreneurialfirms. Richard et al.
(2004) described entrepreneurial orientation dimensions vary independently, and firms may demonstrate relatively high levels of some and at the same time relatively low levels of others. Thisfinding of this study is in line with Richard et al. (2004).
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Chapter 4
Financial Literacy of Entrepreneurs in the Small and Medium Enterprises
Husniyati Ali, Emi Normalina Omar, Hanisah Abu Nasir and Muhamad Rahimi Osman
Abstract The success of any small and medium enterprises (SME) has been associated with the ability of the entrepreneurs to befinancially literate in managing the financial matters. The task of entrepreneurs does not only focuses on pur- chasing, allocating, and distributing the resources efficiently, but to be able to understand the running of the business in terms of possessing the knowledge on accounting, costing, and budgeting. Those entrepreneurs who arefinancially literate normally are able to sustain in the market, regardless of economic condition. A total of 100 respondents from SME have been chosen in this study. The study has revealed that the entrepreneurs are really give time and energy to know and possess the skills infinancial matters. Among the variables chosen, budget control seems to be the main factor that entrepreneurs wanted to be expert at since a correct budget will determine the survival of thefirm.
Keywords Financial literacy
Small and medium enterprises Budget control SkillH. Ali (&)E.N. OmarH.A. Nasir
Faculty of Business Management, Kampus Puncak Alam, Universiti Teknologi MARA, Shah Alam, Malaysia
e-mail: [email protected] E.N. Omar
e-mail: [email protected] H.A. Nasir
e-mail: [email protected] M.R. Osman
Academy of Contemporary of Islamic Studies, Kampus Shah Alam, Universiti Teknologi MARA, Shah Alam, Malaysia
e-mail: [email protected]
©Springer Nature Singapore Pte Ltd. 2018
F. Noordin et al. (eds.),Proceedings of the 2nd Advances in Business Research International Conference, https://doi.org/10.1007/978-981-10-6053-3_4
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