The Effect of Corporate Entrepreneurship Determinants on the Financial Performance of Small and Medium Enterprises (SMEs): An Empirical Study

  • Mohd Saleh Abbas School of Management and Business MILA University No. 1, Persiaran MIU Putra Nilai, 71800 Nilai Negeri Sembilan
  • Mohd Rushidi Mohd Amin Faculty of Business and Communications (FBC) INTI INTERNATIONAL UNIVERSITY (IIU) Persiaran Perdana BBN, Putra Nilai 71800 Nilai, Negeri Sembilan
  • Vinesh Maran Sivakumaran Center of Australia Degree Program INTI International University & Colleges (Penang)
Keywords: Corporate Entrepreneurship, Individual Characteristics, Organizational Characteristics, Competitive Advantage, Organizational Financial Performance, Small and Medium Enterprise (SMEs)

Abstract

This paper examines the effect of corporate entrepreneurship determinants on small and medium-sized enterprises (SMEs) financial performance in Malaysia, including the mediator effect of competitive advantage. A cross-sectional design was adopted, where data were collected from a sample of 221 SMEs utilizing an online questionnaire. Hypotheses were tested using the partial least squares (PLS) approach. The findings revealed a significant relationship between the determinants of corporate entrepreneurship (individual, organizational, and external environment characteristics) and an organization’s financial performance. A mediating effect was also found by including an organization’s competitive advantage in its financial performance. A profound understanding of corporate entrepreneurship determinants by focusing on individual and organizational perspectives can assist SMEs in implementing appropriate strategies to achieve desired financial performance. The capability of SMEs to embed employee entrepreneurial behavior in the workplace is likely to achieve the desired financial performance outcomes effectively. This study advances knowledge on corporate entrepreneurship by proposing relevant determinants and the effect of each determinant on an organization's financial performance in the context of Malaysian SMEs. 

Author Biographies

Mohd Saleh Abbas, School of Management and Business MILA University No. 1, Persiaran MIU Putra Nilai, 71800 Nilai Negeri Sembilan

Abbas, Mohd Saleh, holds the position of Associate Professor at MILA University (Malaysia). He earned his PhD (Business Administration) in 2017 in the field of Marketing and Entrepreneurship from International Islamic University Malaysia. He holds an Associate Professor position in 2024 from MILA University (Malaysia). His research interests include Marketing, Entrepreneurship, Higher Education, and SME’s. He has publications in International Journal of Communication Networks and Information Security (IJCNIS), International Journal of Academic Research in Business and Social Sciences, Panamerican Mathematical Journal, South Eastern European Journal of Public Health, and International Journal of Operations and Quantitative Management.

Author’s contact detail: Address: School of Management and Business, MILA University, Putra Nilai, 71800 Nilai, Negeri Sembilan; phone number: +6016-2215587; Email: saleh.abbas@mila.edu.my

Mohd Rushidi Mohd Amin, Faculty of Business and Communications (FBC) INTI INTERNATIONAL UNIVERSITY (IIU) Persiaran Perdana BBN, Putra Nilai 71800 Nilai, Negeri Sembilan

Mohd Amin, Mohd Rushidi, holds the position of Senior Lecturer at INTI International University (Malaysia). He earned his DBA in 2019 in the field of Marketing and Entrepreneurship from Open University Malaysia and his Senior Lecturer position in 2021 from INTI International University (Malaysia). His research interests include Marketing, Entrepreneurship, Higher Education, Artificial Intelligence (AI). He has publications in Journal of Islamic Marketing, Journal of Applied Research in Higher Education, Social Sciences & Humanities Open, Higher Education, Skills and Work-Based Learning, Journal of Education for Business, International Review of Research in Open and Distributed Learning, International Journal of Business Excellence and International Journal of Business Innovation and Research.

Author’s contact detail: Address: Faculty of Business and Communications, INTI International University (Malaysia), Persiaran Perdana BBN Putra Nilai, 71800 Nilai, Negeri Sembilan; phone number: +6006-7982000; Email: rushidi.mamin@newinti.edu.my

Vinesh Maran Sivakumaran, Center of Australia Degree Program INTI International University & Colleges (Penang)

Sivakumaran, Vinesh Maran, holds the position of Senior Lecturer at INTI International College Penang, (Malaysia). He earned his PhD in 2019 in the field of Educational Leadership from University Sains Malaysia, Penang and his Senior Lecturer position in 2015 from INTI International College, Penang, (Malaysia). His research interests include Leadership. Entrepreneurship, Higher Education and Human Resource Management. He has publications in Journal of Applied Research in Higher Education, Social Sciences & Humanities Open, Higher Education, Skills and Work-Based Learning.

Author’s contact detail: Address: Centre of Australian Degree Programs (CADP), INTI International College Penang, (Malaysia), 1-Z, Lebuh Bukit Jambul, 11900 Bukit Jambul, Penang; phone number: +6004-6310142; Email: vmaran.skumaran@newinti.edu.my

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Published
2025-05-02
How to Cite
Abbas, M. S., Amin, M. R. M., & Sivakumaran, V. M. (2025). The Effect of Corporate Entrepreneurship Determinants on the Financial Performance of Small and Medium Enterprises (SMEs): An Empirical Study. Gadjah Mada International Journal of Business, 27(2), 247-267. https://doi.org/10.22146/gamaijb.v27i2.21210
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Articles