The Effects of Entrepreneurial Management and Ethics On The Women-owned SMEs Business Performance in Malaysia

Umi Kartini Rashid, Rosli Mahmood


Being one of the major players in the economic growth, the number of women entrepreneurs in many countries, including Malaysia, is increasing and researches are directed on their business performance. Despite the studies that have been conducted to investigate the factors that influenced women-owned SMEs performance in Malaysia, this study intends to examine the role of ethics as a mediator of entrepreneurial management and business performance relationship. This study involved the women-owned SMEs from all over the country and data were gathered through mail survey questionnaire. The constructs used were adapted from prior research and already tested for reliability. All research hypotheses including mediation were tested by multiple regression analyses to determine whether the conditions of mediation outlined by Baron and Kenny (1986) were addressed. Statistical results confirmed the significant relationships between resource orientation, reward philosophy, strategic orientation, and women-owned SMEs business performance. Meanwhile, ethics was found to mediate the relationships between reward philosophy, strategic orientation and women-owned SMEs business performance. Theoretical contributions and practical implications are also significant findings for women owner-managers of SMEs and women entrepreneurial development in the country. Some limitations are also acknowledged that indicate future research directions.

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