Skip to main content
SpringerLink
Log in

Measuring the Government Business Support Services and Performance of SMEs

  • Conference paper
  • First Online:
Financial Technology (FinTech), Entrepreneurship, and Business Development (ICBT 2021)

Part of the book series: Lecture Notes in Networks and Systems ((LNNS,volume 486))

Included in the following conference series:

  • 677 Accesses

Abstract

In essence, the government business support services (GBBS) were first initiated with a primary aim to help many small and medium-sized enterprises (SMEs) overcome various obstacles and constraints that are unique to them. Therefore, this study was set out to empirically investigate the influence of the business support services provided by the Malaysian government on the overall performance of Malaysian SMEs.

The resource-based view (RBV) theory was used as a basis for the development of the theoretical framework of this study. Plus, this study employed a deductive approach which saw primary data that were collected being administered on a cross-sectional study design through structured interviews using questionnaires on a sample population of 335 randomly selected SMEs representing all business sectors from each state in Malaysia. Subsequently, data analysis was carried out using the partial least squares structural equation modelling (PLS-SEM) to empirically test this study’s proposed hypotheses.

Results from the data analysis revealed that only three of the four hypotheses proposed by the study were eventually supported. These findings significantly indicate that not all business support services sourced by the government had a significant impact on the performance of SMEs. On top of that, the study’s findings also suggest that technical support services do not contribute significantly to the achievement and progress of SMEs. This means more proactive measures need to be taken in order to increase awareness and promote the use of technology among SMEs in Malaysia.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 259.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 329.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Similar content being viewed by others

References

  • Alvarez, S.A., Busenitz, L.W.: The entrepreneurship of resource-based theory. J. Manag. 27, 755–775 (2001)

    Google Scholar 

  • Barney, J.: Firm resources and sustained competitive advantage. J. Manag. 17(1), 99–120 (1991)

    Google Scholar 

  • Barney, J., Wright, M., Ketchen, D.J.J.: The resource-based view of the firm: ten years after 1991. J. Manag. 27, 625–641 (2001)

    Google Scholar 

  • Berry, J.A., Sweeting, R., Goto, J.: The effect of business advice on the performance of SMEs. J. Small Bus. Enterp. Dev. 13(1), 33–47 (2006)

    Article  Google Scholar 

  • Bohatá, M., Mládek, J.: The development of the czech SME sector. J. Bus. Ventur. 14(5–6), 461–473 (1999)

    Article  Google Scholar 

  • Carson, D., Gilmore, A.: SME marketing management competencies. Int. Bus. Rev. 9(3), 363–382 (2000)

    Article  Google Scholar 

  • Chin, W.W.: How to Write Up and Report PLS Analyses. Texas: Springer Handbooks of Computational Statistics. Springer, Berlin, Hielderberg

    Google Scholar 

  • Cohen, J.: Statistical power analysis for the behavioral sciences, 2nd edn. Lawrence Erlbaum Associates, Hillsdale (1988)

    Google Scholar 

  • Compeau, D., Higgins, C.A., Huff, S.: Social cognitive theory and individual reactions to computing technology: a longitudinal-study. MIS q. 23(2), 145–158 (1999)

    Article  Google Scholar 

  • Cravo, T.A., Piza, C.: The impact of business-support services on firm performance: a meta-analysis. Small Bus. Econ. 53(3), 753–770 (2019)

    Article  Google Scholar 

  • Deakins, D., Philpott, T.: Networking by external support agencies and financial institutions. Evidence from different financing arrangements in two European regions: West Midlands, UK and Baden-Wurttemberg, Germany. Int. Small Bus. J. 13(2), 47–58 (1995)

    Article  Google Scholar 

  • Doh, S., Kim, B.: Government support for SME innovations in the regional industries: the case of government financial support program in South Korea. Res. Policy 43(9), 1557–1569 (2014)

    Article  Google Scholar 

  • Dyer, M.L., Ross, A.C.: Seeking advice in a dynamic and complex business environment: Impact on the success of small firms. J. Dev. Entrep. 13(2), 133–149 (2008)

    Google Scholar 

  • Dzogbenuku, R.K., Keelson, S.A.: Marketing and entrepreneurial success in emerging markets: the nexus. APJIE 13(2), 168–187 (2019)

    Article  Google Scholar 

  • Fornell, C., Lacker, D.F.: Evaluating structural equation models with unobservable variables and measurement error. J. Mark. Res. XVIII(February), 39–50 (1981)

    Google Scholar 

  • Hair, F.J., Ringle, M.C., Sarstedt, M.: PLS-SEM: indeed a silver bullet. J. Mark. Theory Pract. 19(2), 139–151 (2011)

    Article  Google Scholar 

  • Hankinson, A.: The key factors in the profiles of small firm owner‐managers that influence business performance. The South Coast Small Firms Survey, 1997‐2000. Ind. Commer. Train. 32(3), 94–98 (2000)

    Article  Google Scholar 

  • Henseler, J., Christian, R.M., Sinkovics, R.R.: The use of partial least squares path modelling in international marketing. New Challenges to International Marketing Advances in International Marketing, vol. 20, pp. 277–319 (2009)

    Google Scholar 

  • Horvat, D., Moll, C., Weidner, N.: Why and how to implement strategic competence management in manufacturing SMEs? Procedia Manuf. 39, 824–832 (2019)

    Article  Google Scholar 

  • Izvercian, M., Miclea, Ş, Potra, S.: Marketing practices in SMEs. Case study: Romania vs. Malta. Procedia Soc. Behav. Sci. 221, 135–141 (2016)

    Article  Google Scholar 

  • John, M.G., Bruce, H., Arief, S.: Small business strategic planning and technology transfer: the use of publicly supported technology assistance agencies. J. Small Bus. Manag. 33(3), 26–37 (1995)

    Google Scholar 

  • Johnson, S., Webber, D.J., Thomas, W.: Which SMEs use external business advice? A multivariate subregional study. Environ. Plan. 39, 1981–1997 (2007)

    Article  Google Scholar 

  • Khairudin, H. (ed.): Entrepreneurship in Malaysia. Small and Medium-sized Enteprises Development in Malaysia: Programs and Evaluation. Universiti Utara Malaysia, Sintok (2007a)

    Google Scholar 

  • Khairudin, H.: SMEs in Malaysia: A brief handbook. Problems and causes of failure in small business, vol. 1. August Publishing Sdn Bhd, Petaling Jaya (2007b)

    Google Scholar 

  • Kraaijenbrink, J., Spender, J.C., Groen, A.J.: The resource-based view: a review and assessment of its critique. J. Manag. 36(1), 349–372 (2010)

    Google Scholar 

  • Krejcie, V.R., Morgan, W.D.: Determining sample size for research activities. Educ. Psychol. Measur. 30, 607–610 (1970)

    Article  Google Scholar 

  • Leiblein, M.J.: What do resource-and capability-based theories propose? J. Manag. 37(4), 909–932 (2011)

    Google Scholar 

  • Lussier, R., Halabi, C.: A three-country comparison of the business success versus failure prediction model. J. Small Bus. Manag. 48(3), 36–377 (2010)

    Article  Google Scholar 

  • Malecki, E.J.: Entrepreneurship and entrepreneurial ecosystems. Geogr. Compass 12(3), e12359 (2018)

    Article  Google Scholar 

  • Martinez, C., Choi, K.: Skills development pathways in Asia. In: Ghazali, G. (ed.) Mainstream Skills Training: Malaysia’s Skills and Future, pp. 67–70. The Organisation for Economic Co-operation and Development (OECD), Paris, France (2012)

    Google Scholar 

  • Moeuf, A., Lamouri, S., Pellerin, R., Tamayo-Giraldo, S., Tobon-Valencia, E., Eburdy, R.: Identification of critical success factors, risks and opportunities of Industry 4.0 in SMEs. Int. J. Prod. Res. 58(5), 1384–1400 (2020)

    Article  Google Scholar 

  • Moha Asri, A.: The accessibility of the government-sponsored support programmes for small and medium-sized enterprises in Penang. Cities 16(2), 83–92 (1999)

    Article  Google Scholar 

  • Mole, K.: The Value of Business Advice. Enterprise Research Centre: Warwick University (2016)

    Google Scholar 

  • Park, S., Lee, I.H., Kim, J.E.: Government support and small- and medium-sized enterprise (SME) performance: the moderating effects of diagnostic and support services. Asian Bus. Manag. 19(2), 213–238 (2020)

    Article  Google Scholar 

  • Penrose, E.: The Theory of the Growth of the Firm, 4th edn. Oxford University Press, Oxford (1959)

    Google Scholar 

  • Pinho, J.C., Martins, L.: Exporting barriers: Insights from Portuguese small- and medium-sized exporters and non-exporters. J. Int. Entrep. 8(3), 254–272 (2010)

    Article  Google Scholar 

  • Podsakoff, P.M., MacKenzie, S.B., Lee, Y.-L.: Common method biases in behavioral research: a critical review of the literature and recommended remedies. J. Appl. Psychol. 88(5), 879–903 (2003)

    Article  Google Scholar 

  • Prasanna, R., et al.: Sustainability of SMEs in the competition: a systemic review on technological challenges and SME performance. JOItmC 5(4), 100 (2019)

    Article  Google Scholar 

  • Shamsuddin, J., et al.: Relationship of perception and awareness towards utilization of government business support services (GBSS) in Malaysian SMEs perspectiv. J. Entrep. Educ. 23(1) (2020)

    Google Scholar 

  • Smallbone, D., Xiao, J., Xu, L.: Developing the small business market for business development services in Chengdu. Policy issues and priorities. J. Small Bus. Enterp. Dev. 15(4), 656–674 (2008)

    Article  Google Scholar 

  • Sternberg, R., Wennekers, S.: Determinants and effects of new business creation using global entrepreneurship monitoring data. Small Bus. Econ. 24(3), 193–203 (2005)

    Article  Google Scholar 

  • Tenenhaus, M., et al.: PLS path modelling. Comput. Stat. Data Anal. 48(1), 159–205 (2005)

    Article  MathSciNet  Google Scholar 

  • Walsh, M.F., Lipinski, J.: The role of the marketing function in small and medium-sized enterprises. J. Small Bus. Enterp. Dev. 16(4), 569–585 (2009)

    Article  Google Scholar 

  • Webber, D.J., Johnson, S., Fargher, S.: Sector variations in SMEs use of external business advice. Local Econ. 25(4), 339–355 (2010)

    Article  Google Scholar 

  • Wetzels, M., Schroder, G.O., Van, O.C.: Using PLS path modeling for assessing hierarchical construct models: Guidelines and empirical illustration. MIS Q. 33(1), 177–195 (2009)

    Article  Google Scholar 

  • Wignaraja, G.: Firm size, technological capabilities and market-oriented policies in Mauritius. Oxf. Dev. Stud. 30(1), 87–104 (2002)

    Article  Google Scholar 

  • Xiang, D., Worthington, A.C.: The impact of government financial assistance on the performance and financing of Australian SMEs. ARJ 30(4), 447–464 (2017)

    Article  Google Scholar 

  • Yuliarmi, N.N., et al.: The role of government, traditional institutions, and social capital empowering small and medium industries. J. Econ. Bus. Account. 15(2), 205–218 (2012)

    Google Scholar 

  • Yusoff, M.N., et al.: Psychological traits and intention to use e-commerce among rural micro-entrepreneurs in Malaysia. J. Theor. Appl. Electron. Commer. Res. 16(5), 1827–1843 (2021)

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Universiti Malaysia Kelantan, Kota Bharu, Malaysia

    Mohd Nor Hakimin Yusoff, Rooshihan Merican Abdul Rahim Merican, Siti Afiqah Zainudin, Noorul Azwin Nasir, Tahiran Abdullah & Nadzirah Mohd Said

Authors
  1. Mohd Nor Hakimin Yusoff
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Rooshihan Merican Abdul Rahim Merican
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Siti Afiqah Zainudin
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Noorul Azwin Nasir
    View author publications

    You can also search for this author in PubMed Google Scholar

  5. Tahiran Abdullah
    View author publications

    You can also search for this author in PubMed Google Scholar

  6. Nadzirah Mohd Said
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Mohd Nor Hakimin Yusoff .

Editor information

Editors and Affiliations

  1. Middle East Technical University, Northern Cyprus Campus, Kalkanlı, Güzelyurt, Turkey

    Bahaaeddin Alareeni

  2. College of Business of Finance, Ahlia University, Manama, Bahrain

    Allam Hamdan

Rights and permissions

Reprints and permissions

Copyright information

© 2022 The Author(s), under exclusive license to Springer Nature Switzerland AG

About this paper

Check for updates. Verify currency and authenticity via CrossMark

Cite this paper

Yusoff, M.N.H., Merican, R.M.A.R., Zainudin, S.A., Nasir, N.A., Abdullah, T., Said, N.M. (2022). Measuring the Government Business Support Services and Performance of SMEs. In: Alareeni, B., Hamdan, A. (eds) Financial Technology (FinTech), Entrepreneurship, and Business Development. ICBT 2021. Lecture Notes in Networks and Systems, vol 486. Springer, Cham. https://doi.org/10.1007/978-3-031-08087-6_44

Download citation

  • DOI: https://doi.org/10.1007/978-3-031-08087-6_44

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-031-08086-9

  • Online ISBN: 978-3-031-08087-6

  • eBook Packages: EngineeringEngineering (R0)

Publish with us

Policies and ethics

Search

Navigation