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Effect of Economic Vulnerability on Competitive Advantages, Enterprise Performance and Sustainability

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  • Abdullah Al Mamun

    (Research Fellow, Global Entrepreneurship Research and Innovation Centre (GERIC), Universiti Malaysia Kelantan, 16100 Pengkalan Chepa, Kelantan, Malaysia)

  • Noorshella Binti Che Nawi

    (Senior Lecturer, Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, 16100 Pengkalan Chepa, Kelantan, Malaysia)

  • Mohd Asrul Hery Bin Ibrahim

    (Senior Lecturer and Deputy Dean, Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, 16100 Pengkalan Chepa, Kelantan, Malaysia)

  • Rajennd Muniady

    (Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, 16100 Pengkalan Chepa, Kelantan, Malaysia)

Abstract

This study investigated the effect of economic vulnerability upon competitive advantages, performance, and sustainability of micro-enterprises owned and managed by micro-entrepreneurs who participate in varied development initiatives in Peninsular Malaysia. Upon adopting the cross-sectional design, data were randomly collected from selected 300 micro-entrepreneurs from the eKasih program (national poverty data bank) located in four states of Peninsular Malaysia. The quantitative data were collected by conducting structured interview sessions with the respondents held from September until November 2017. The findings revealed that the state of economic vulnerability among the respondents had a significantly negative effect on the aspects of competitive advantages, performance, and sustainability among micro-enterprises in Peninsular Malaysia. Despite of the widely acknowledged and empirically examined effects of socioeconomic antecedents upon micro-enterprise performance, the focus on the effect of a more comprehensive measure of socioeconomic condition, that is, economic vulnerability, among low-income households appears to be scant. Hence, the outcomes of this study are able to provide critical insights for development organizations pertaining to development programs and their effectiveness on economically vulnerable, particularly among low-income households in Peninsular Malaysia.

Suggested Citation

  • Abdullah Al Mamun & Noorshella Binti Che Nawi & Mohd Asrul Hery Bin Ibrahim & Rajennd Muniady, 2018. "Effect of Economic Vulnerability on Competitive Advantages, Enterprise Performance and Sustainability," Social Sciences, MDPI, vol. 7(4), pages 1-11, April.
    • Handle: RePEc:gam:jscscx:v:7:y:2018:i:4:p:54-:d:139396
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    References listed on IDEAS

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    Cited by:

    1. Wan Nurulasiah binti Wan Mustapa & Abdullah Al Mamun & Mohamed Dahlan Ibrahim, 2018. "Development Initiatives, Micro-Enterprise Performance and Sustainability," IJFS, MDPI, vol. 6(3), pages 1-15, August.
    2. Syed Ali Fazal & Abdullah Al Mamun & Ghazali Bin Ahmad & Muhammad Mehedi Masud, 2022. "Entrepreneurs’ Competencies and Competitive Advantages: A Study on Malaysian Microenterprises," Global Business Review, International Management Institute, vol. 23(1), pages 61-74, February.
    3. Abdullah Al Mamun & Syed Ali Fazal & Muhammad Mehedi Masud & Ganeshsree Selvachandran & Noor Raihani Zainol & Quek Shio Gai, 2020. "The Underlying Drivers of Underprivileged Households’ Intention and Behavior towards Community Forestry Management: A Study Using Structural Equation Modelling and Artificial Neural Network Approach," Sustainability, MDPI, vol. 12(18), pages 1-26, September.

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