Entrepreneurial competency, competitive advantage and performance of informal women micro-entrepreneurs in Kelantan, Malaysia

Noor Raihani Zainol · Abdullah Al Mamun

78 citations0/0 files storedJournal of Enterprising Communities People and Places in the Global Economy

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Entrepreneurship Studies and Influences SMEs Development and Digital Marketing Migration, Ethnicity, and Economy

Abstract

Purpose The purpose of this study is to examine the effect of entrepreneurial competencies on competitive advantage and to investigate the effect of competitive advantage on the performance of informal microenterprises owned and managed by women micro-entrepreneurs in Kelantan, Malaysia. Design/methodology/approach This study used a cross-sectional design and collected quantitative data from 384 informal women micro-entrepreneurs operating in “night markets” in Kelantan, Malaysia. Findings The finding of the analysis using variance-based structural equation modeling indicated that commitment competency, conceptual competency, organizing competency and opportunity recognition competency have a significant positive effect on competitive advantages, and competitive advantages have a significant positive effect on the performance of microenterprises owned and managed by women micro-entrepreneurs in Kelantan, Malaysia. Research limitations/implications The development programs and policies should focus on improving the competencies, i.e. commitment competency, conceptual competency, organizing competency and opportunity recognition competency to improve the socioeconomic condition of low-income households in Malaysia. Informal women micro-entrepreneurs should, therefore, focus on value creating strategies to avoid potential competitors from duplicating the benefits of their strategy. This will result in a sustainable competitive advantage of microenterprises in Malaysia. Originality/value This study puts forward and tests the effect of entrepreneurial competencies on competitive advantages and performance of informal women micro-entrepreneurs in Kelantan, Malaysia, which provides a foundation for the design and implementation of development programs and policies that promote entrepreneurial activities in Malaysia.

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References

1991Firm Resources and Sustained Competitive Advantage 2004Firm resources and sustained competitive advantage 2011PLS-SEM: Indeed a Silver Bullet 2013Partial Least Squares Structural Equation Modeling: Rigorous Applications, Better Results and Higher Acceptance 1999Social Cognitive Theory and Individual Reactions to Computing Technology: A Longitudinal Study1 2014Managerial cognitive capabilities and the microfoundations of dynamic capabilities 2006The social dimensions of entrepreneurship 2009Market orientation, marketing capabilities, and firm performance

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