Academic journal article Asian Social Science

Strategic Entrepreneurship Model for Economic Transformation: Malaysian Evidence

Academic journal article Asian Social Science

Strategic Entrepreneurship Model for Economic Transformation: Malaysian Evidence

Article excerpt

Abstract

The study examines input-process-output model of strategic entrepreneurship among the Malaysian SMEs entrepreneurs. The study justified resource inputs (environment, organizational and individual) are important resources for firms' output. The study examines 46 entrepreneurs in the community in cross-sectional analysis. The results indicate that the model uphold the resource-based view (RBV) theory that environmental, organizational and individual resources determine better SMEs' economic performance in Malaysia. Research limitations, common method bias and future studies are also discussed.

Keywords: strategic entrepreneurship, environmental resources, organizational resources, individual resources, competitive advantage, value creation, job creation, wealth creation, economic transformation, SMEs, Malaysia

1. Introduction

Inquiry in strategic entrepreneurship has steadily entered into entrepreneurship study since early 2000 when Hitt, Keats and Yucel (2003) proposed a conceptual framework in their textbook. However, much still unknown in capitalizing SE as a body of knowledge in entrepreneurship literatures. Most of the studies (e.g. Shepherd & Wilklund, 2009; Schindehutte & Morris, 2009; Hitt, Ireland, Sirmon, & Trahm, 2011) reiterated that SE has considerable impact on firms' growth, competitive advantage, opportunity advantage, value and wealth creation.

SE is an integrative model of strategic management and entrepreneurship whereby they capitalize on firms' behavioral aspect that will transform their internal resources (transforming its product, markets, internal processes and so on) to a better future and higher industrial standard (Hitt et al., 2011). Covin and Miles (1999) explain SE may take any one of the five forms, "strategic renewal, sustained regeneration, domain redefinition, organizational rejuvenation, and business model reconstruction" (p. 54).

Works in SE begin to take some forms filling basic gaps, especially in concept and model development (Hitt et al., 2011). Among others a model of Ireland, Hitt and Sirmon (2003) proposed four dimensions (1) the entrepreneurial mindset, culture and leadership, (2) the strategic management of organizational resources, (3) application of creativity, and (4) development of innovation invites further inquiry. Kyrgidou and Hughes (2010) criticized the model as lacking in robustness required in capturing the gestalt of SE. Supporting the argument there were studies suggesting the model to uphold SE as broader in scope, multilevel and more dynamic compared to original conceptualization (Chiles, Bluedorn, & Gupta, 2007; Hitt, Beamish, Jackson, & Mathieu, 2007; Rindova, Barry, & Ketchen, 2009). Recently, Hitt et al. (2011) proposed input-processes-output (I-P-O) model of SE that incorporates multilevel and more general domain, environmental influences, resource orchestration (RO) and three levels of outcome.

This paper verifies Hitt et al. (2011) input and output variables within Malaysian SMEs. A preliminary analysis among 46 small and medium firms justifies the instruments appropriate for the model. Analysis on direct relationships executed in testing the hypothesis. The study explores relationships that substantiate RBV and subsequently help in delineating which resources appropriate to enhance our nation's competitive advantage, job creation, value creation, wealth creation and economic transformation.

2. Research Issues

The quests for sound research instruments are always treated as a major factor before research results finalized. Study in SE has been a recent phenomenon where most of the literature were mainly seminal and conceptual, thus gap for construct and measurement development are essential for relationship inquiry. Moreover, limited study found investigating on relationship between input-output models of strategic entrepreneurship. We propose the research question as follows; 1) how does individual, organizational and environmental construct delineate into SE dimensions. …

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