Measurement Validation of Factors Influence SME Business Performance in Malaysia

Abstract

Organizations are increasingly under pressure to shift their production methods from traditional to sustainable, reinforcing the requirement to monitor their sustainability performance. The slow performance growth of Malaysian manufacturing companies remains a concern. The goal of this research is to highlighted the measurement used in the Malaysian SME context. Data were collected using survey method. A survey method was employed to collect a total of 1,071 responses in SME firms using proportional stratified sample technique. Using statistical packages for the social sciences (SPSS) version 27, this research focused on data validity and reliability. Findings of factor analysis confirmed 3 factors for the ICT adoption variable, were formed while 1 factor for the innovation variable, 4 factors for the competitiveness variable and 1 factor for the business performance. Only 2 items were dropped due to the weak loadings. Meanwhile the reliability analysis also indicates all the constructs and dimensions achieve good reliability value at more than 0.8. This research demonstrates the measurement validity and reliability of the research variables were inconsistent due to culture setting. This research highlighted the measurement used in the Malaysian SME context. The findings of this research withdraw a conclusion that the validity and reliability of item and construct of this research is proficient and consistent with the previous studies.