Effect of economic vulnerability on entrepreneurial competencies among Malaysian micro-entrepreneurs

Abdullah Al Mamun · Rajennd Muniady · Mohd Asrul Hery Ibrahim · Noorshella Che Nawi

23 citations0/0 files storedAsia Pacific Journal of Innovation and Entrepreneurship

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Entrepreneurship Studies and Influences Migration, Ethnicity, and Economy Innovation and Socioeconomic Development

Abstract

Purpose This study aims to investigate the impact of economic vulnerability upon entrepreneurial competencies (i.e. commitment competency, conceptual competency, opportunity recognition competency, organizing competency, relationship competency and strategic competency) among respondents from varied development initiatives established by the eKasih program (National Poverty Data Bank) in Peninsular Malaysia. Design/methodology/approach Upon adopting the cross-sectional design, data were randomly gathered from selected 300 micro-entrepreneurs from the list of development organizations available in the eKasih (National Poverty Data Bank), located at four states in Peninsular Malaysia. The quantitative data were gathered by performing structured interview sessions from September until November 2017. Findings The outcomes of the study displayed that economic vulnerability has a significantly negative effect upon commitment, opportunity recognition, organizing and strategic competency. On the other hand, the results showcased that economi c vulnerability has a significantly positive effect on competency, but insignificantly positive impact upon conceptual competency. Originality/value These study outcomes appear to extend the scope of the resource-based view, apart from enriching the existing entrepreneurial competency literature, particularly within the Malaysian context. Hence, it is recommended that the government of Malaysia and development organizations should focus on maximizing the level of competency among micro-entrepreneurs as a viable approach to decrease the effect of economic vulnerability.

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References

1991Firm Resources and Sustained Competitive Advantage 2004Firm resources and sustained competitive advantage 2011PLS-SEM: Indeed a Silver Bullet 1998The partial least squares approach for structural equation modeling.2013Partial Least Squares Structural Equation Modeling: Rigorous Applications, Better Results and Higher Acceptance 2002The competitiveness of small and medium enterprises 2008Entrepreneurial Competencies and the Performance of Small and Medium Enterprises: An Investigation through a Framework of Competitiveness 2016A conceptual model of social entrepreneurial intention based on the social cognitive career theory

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