The Relationship Between Entrepreneurial Orientation and Manufacturing Operations of Malaysian SMEs Rural Entrepreneurs

Abstract

Despite numerous studies have been done on entrepreneurial orientation (EO), its relationship with manufacturing operations has yet to be determined. Thus, the purpose of this study is to identify the relationship between EO and the manufacturing operations of Malaysian rural entrepreneurs of small and medium-sized enterprises (SMEs). The survey questionnaires were distributed to 73 respondents who were rural entrepreneurs in Selangor, Malaysia. Pearson’s correlation coefficient analysis was used to analyze the quantitative data obtained. The findings showed that the five dimensions of EO (innovativeness, proactiveness, risk-taking, competitive aggressiveness and autonomy) has positive relationship with manufacturing operations. Competitive aggressiveness has the highest value of correlation with manufacturing operations among the EO dimensions. It can be concluded that the EO has strong relationship with manufacturing operations of Malaysian SMEs rural entrepreneurs. This study provides new empirical evidence on EO and manufacturing operations relationship as well as some practical contributions to the rural SMEs entrepreneurs in Malaysia. Several recommendations have been proposed for further investigations in future studies.