Business coping strategy, entrepreneurial orientation, improvisational competence, and crisis readiness of the Malaysian medium-sized manufacturing enterprises in recessionary times

The main issue of this thesis was the hampered performance of the manufacturing small-and-medium-sized enterprises (SMEs) in Malaysia during economic recessions. The bona fide respondents of the study were the medium-sized manufacturing enterprises (MMEs). Crisis readiness (CR) was proposed as the surrogate measure for firm performance. While CR was examined in relationships to business coping strategy (BCS) and entrepreneurial orientation (EO), this study also assessed the mediating effect of improvisational competence (IC) on the BCS-CR relationship. Altogether, a three-pronged-objective research framework was theoretically underpinned by resource-based view. Simple random sampling
technique was used to select the targeted respondents. Of the 295 usable responses, a
random near-split-half of 145 and 150 were used for exploratory and confirmatory factor analysis respectively. Statistically significant positive relationships were found in two direct relationships: BCS-CR and EO-CR, while IC was found to mediate the BCS-CR relationship. Significant positive relationships were also evident between all dimensions of EO and CR, except risk-taking. While CR was a new performance surrogate, its examination with BCS, EO, and IC contributed
nascent theoretical insights. Other theoretical gaps included the development and validation of the BCS and bricolage scales, psychometric revisions of the CR and IC scales, and the incorporation of a vignette into the measurement to provide
standardization as to the recessionary context understudied. Practically, the findings provided the manufacturing entrepreneurs some guidance on the appropriate response strategy and decision making which would better-position them in
recessionary situations. Likewise, the understandings may also assist the policy makers to develop or to adjust policies to better-fabricate assistance channelled to MMEs. Towards the end, methodological limitations and potential avenues for future research were also identified.