Gadjah Mada International Journal of Business
Vol 27, No 2 (2025): May-August

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

Abbas, Mohd Saleh (Unknown)
Mohd Amin, Mohd Rushidi (Unknown)
Sivakumaran, Vinesh Maran (Unknown)



Article Info

Publish Date
28 May 2025

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.  

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Journal Info

Abbrev

GAMAIJB

Publisher

Subject

Economics, Econometrics & Finance

Description

Gadjah Mada International Journal of Business (GamaIJB) is a peer-reviewed journal published three times a year (January-April, May-August, and September-December) by Master of Management Program, Faculty of Economics and Business, Universitas Gadjah Mada. GamaIJB is intended to be the journal for ...