External pressure influence on entrepreneurship performance of SMEs: a case study of Malaysian herbal industry

Abstract

Activities of small and medium-sized enterprises (SMEs) have contributed significantly to environmental degradation that causes a disastrous effect on us and our future generation. Considering this, sustainable entrepreneurship practice has been promoted as a resolution of ecological problems capable of addressing climate change issues, public health, and safety concerns, and has become critical for competing in international markets. Literature shows that external pressure provides the impetus for SMEs to achieve a competitive advantage regarding turnover, customer attraction, and market share. This article investigates the standpoints of small and medium-sized businesses under the influence of external pressure on entrepreneurial activities within business dynamics. 300 herbal-based SMEs were surveyed using a structured questionnaire. Data were analyzed using descriptive statistics, exploratory and confirmatory factor analysis, and structural equation model. The results show that external pressure has a positive direct effect on entrepreneurship practices, it also indicates that strategic sustainability orientation provides a form of differentiation among the SMEs. This study suggests that SMEs that seek competitive advantage should resolve their challenges by responding positively to environmental pressure through sustainability. This study contributes to sustainability literature based on incorporation of institutional and strategic orientation theories in entrepreneurship framework.

Les activités des petites et moyennes entreprises (PME) ont largement contribué à dégradation de l'environnement qui a un effet désastreux sur nous et notre génération future. Considérant cela, la pratique de l'entrepreneuriat durable a été promue comme une résolution de problèmes écologiques pouvant traiter des problèmes de changement climatique, de santé publique et de sécurité préoccupations, et est devenu essentiel pour la concurrence sur les marchés internationaux. Littérature montre que la pression externe incite les PME à obtenir un avantage concurrentiel concernant le chiffre d'affaires, l'attraction client et la part de marché. Ce document étudie les points de vue de petites et moyennes entreprises sous l'influence de pressions externes sur activités entrepreneuriales au sein de la dynamique des entreprises. 300 PME à base de plantes ont été interrogées en utilisant un questionnaire structuré. Les données ont été analysées à l'aide de statistiques descriptives, de analyse factorielle confirmatoire et modèle d'équation structurelle. Les résultats montrent que pression externe a un effet direct positif sur la pratique de l'entrepreneuriat, elle indique également cette orientation stratégique de la durabilité offre une forme de différenciation entre les PME. Cette étude suggère que les PME cherchant un avantage concurrentiel devraient résoudre leurs problèmes relever les défis en répondant positivement à la pression environnementale par le biais de la durabilité. Ce L'étude contribue à la documentation sur la durabilité basée sur l'incorporation de ressources théories d'orientation stratégique dans le cadre de l'entrepreneuriat.

Keywords:

• sustainable entrepreneurship practice
• external pressure
• strategic sustainability orientation
• herbal-based
• small and medium-sized enterprises

Mots-clés:

• pratique de l'entreprenariat durable; pression extérieure; durabilité stratégique orientation; à base de plantes; enterprises de petite et moyenne taille

Additional information

Notes on contributors

Abdullahi Muhammad Auwal

Abdullahi Muhammad Auwal is a Lecturer in the Department of Agricultural Economics and Extension, Federal University Dutse, Nigeria. Currently a student in the Department of Agribusiness and Bioresource Economics, Faculty of Agriculture, Universiti Putra Malaysia. His research interest areas are Agribusiness Marketing and Agribusiness Management.

Zainalabidin Mohamed

Zailnalabidin Mohamed is a Professor in the Department of Agribusiness and Bioresource Economics, Faculty of Agriculture, Universiti Putra Malaysia. His research interest areas are Agricultural Economics, and Agribusiness Marketing.

Mad Nasir Shamsudin

Mad Nasir Shamsudin is a Professor in the Department of Agribusiness and Bioresource Economics, Faculty of Agriculture, Universiti Putra Malaysia. His research interest areas are Agricultural Economics and Agricultural Resource Economics.

Juwaidah Sharifuddin

Juwaidah Sharifuddin is a Senior Lecturer at the Department of Agribusiness and Bioresource Economics, Faculty of Agriculture, Universiti Putra Malaysia. Her research interest area is International Agribusiness Marketing.

Fazlin Ali

Fazlin Ali is a Senior Lecturer at the Department of Agribusiness and Bioresource Economics, Faculty of Agriculture, Universiti Putra Malaysia. Her research interest areas are Agribusiness Accounting and Agribusiness Finance.