Cultural Background and Firm Performances of Indigenous (“Bumiputera”) Malay Family Firms in Malaysia: The Role of Entrepreneurial Orientation as a Mediating Variable

Zainol, Fakhrul Anwar and Ayadurai, Selvamalar (2010) Cultural Background and Firm Performances of Indigenous (“Bumiputera”) Malay Family Firms in Malaysia: The Role of Entrepreneurial Orientation as a Mediating Variable. Journal of Asia Entrepreneurship and Sustainability, 6 (1). pp. 3-20. ISSN 1176-8592

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Abstract

The research examines entrepreneurial orientation (EO) in Indigenous or Bumiputera entrepreneurs (Malay firms) by taking cultural background as the antecedent. This construct is used to explain the influence of entrepreneurial orientation (EO) and its consequence towards firm performance. Design/methodology/approach: Multiples Linear Regressions (MLR) analysis was conducted to test the hypothesis on surveyed firms selected from the current available list given by MARA (the government agency for Indigenous or Bumiputera SMEs). The specific research question is: Does the relationship between cultural background of the entrepreneur and firm performance is mediated by entrepreneurial orientation (EO)? Findings: In Malay firms, the relationship between cultural background with firm performance was not mediated by entrepreneurial orientation (EO). However, the construct is significant as predictor towards firm performance. Practical implications: This research provides a better understanding of the indigenous entrepreneurs for policy makers, NGOs, business support organizations and the indigenous entrepreneurs themselves particularly in planning or utilizing government programmes. Originality/value: The impact of cultural background towards firm performance observed in Malay firms is unique to the paper. Our studies provided the empirical test in understanding indigenous entrepreneurship in Malay firms in Malaysia towards developing a more holistic entrepreneurship theory

Item Type: Article
Keywords: Entrepreneurial Orientation (EO), Cultural Background, Indigenous Entrepreneurship
Subjects: H Social Sciences > H Social Sciences (General)
Faculty / Institute: Faculty of Economics & Management Sciences
Depositing User: Dr Fakhrul Anwar Zainol
Date Deposited: 09 Dec 2014 08:19
Last Modified: 09 Dec 2014 08:19
URI: http://erep.unisza.edu.my/id/eprint/2247

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