Entrepreneurial competency, competitive advantage and performance of informal women micro-entrepreneurs in Kelantan, Malaysia
Journal of Enterprising Communities: People and Places in the Global Economy
ISSN: 1750-6204
Article publication date: 13 July 2018
Issue publication date: 8 August 2018
Abstract
Purpose
The purpose of this study is to examine the effect of entrepreneurial competencies on competitive advantage and to investigate the effect of competitive advantage on the performance of informal microenterprises owned and managed by women micro-entrepreneurs in Kelantan, Malaysia.
Design/methodology/approach
This study used a cross-sectional design and collected quantitative data from 384 informal women micro-entrepreneurs operating in “night markets” in Kelantan, Malaysia.
Findings
The finding of the analysis using variance-based structural equation modeling indicated that commitment competency, conceptual competency, organizing competency and opportunity recognition competency have a significant positive effect on competitive advantages, and competitive advantages have a significant positive effect on the performance of microenterprises owned and managed by women micro-entrepreneurs in Kelantan, Malaysia.
Research limitations/implications
The development programs and policies should focus on improving the competencies, i.e. commitment competency, conceptual competency, organizing competency and opportunity recognition competency to improve the socioeconomic condition of low-income households in Malaysia. Informal women micro-entrepreneurs should, therefore, focus on value creating strategies to avoid potential competitors from duplicating the benefits of their strategy. This will result in a sustainable competitive advantage of microenterprises in Malaysia.
Originality/value
This study puts forward and tests the effect of entrepreneurial competencies on competitive advantages and performance of informal women micro-entrepreneurs in Kelantan, Malaysia, which provides a foundation for the design and implementation of development programs and policies that promote entrepreneurial activities in Malaysia.
Keywords
Acknowledgements
Funding: This research was funded by the Ministry of Higher Education, Malaysia under the grant entitled “Research Acculturation Grant Scheme – RAGS” (Grant Code: RAGS/1/2014/SS05/UMK//4, Topic: Entrepreneurial competency among women informal traders: A study in Peninsular Malaysia).
Citation
Zainol, N.R. and Al Mamun, A. (2018), "Entrepreneurial competency, competitive advantage and performance of informal women micro-entrepreneurs in Kelantan, Malaysia", Journal of Enterprising Communities: People and Places in the Global Economy, Vol. 12 No. 3, pp. 299-321. https://doi.org/10.1108/JEC-11-2017-0090
Publisher
:Emerald Publishing Limited
Copyright © 2018, Emerald Publishing Limited