Entrepreneurial Competency and SMEs Performance in Malaysia: Dynamic Capabilities as Mediator

Abstract

The purpose of this paper is to examine the role of dynamic capabilities as a mediator in the relationship between entrepreneurial competency and SMEs performance in Malaysia. Using a quantitative cross-sectional survey approach, data were gathered through mail survey questionnaire distributed to SMEs owner-managers throughout Malaysia, including Sabah and Sarawak. The constructs used were adapted from prior research and already tested for reliability. Data obtained was analysed using Statistical Package for Social Sciences (SPSS) version 21 for Windows. Statistical results confirmed the significant relationships between opportunity competency, organizing competency and strategic competency, and SMEs performance. Meanwhile, dynamic capabilities was found to mediate the relationships between relationship competency, conceptual competency, commitment competency and SMEs performance. Finally, implications and some suggestions for future research are also discussed.