ISSN: 2222-6990
Open access
Handicraft industries continue to play an important role in the economies of all Asian countries including Malaysia. They not only constitute small business activities in themselves but are also often the only available means to provide additional employment and raise the level of living for rural populations. Despite the government's several institutional and policy support for enhancing the capacity of micro and small-scale enterprises, the results have fallen short of expectations. In view of the growing world market for products of traditional Asian handicraft industries, having a relevant entrepreneurial ecosystem model specific to handicraft micro and small industries in Malaysia is imperative. Thus, this study attempts to: (1) identify the components of entrepreneurial ecosystem of handicraft micro and small industries in Malaysia; (2) determine the relationship between components of entrepreneurial ecosystem
and business performance. The SEM-PLS approach has been employed as a statistical method to analyze the research model. Data were collected from 50 handicraft micro and small entrepreneurs using personally administered questionnaire surveys. The findings indicate that only talent was found to have a significant relationship with business performance. This study is significant to the investors, the ministry, the government, academics and even business owners in providing a comprehensive model in understanding the handicraft industry entrepreneurial processes through which the ecosystems emerge, change, and influence the activities of the entrepreneurs.
Alvedalen, J., & Boschma, R. ( 2017). A critical review of entrepreneurial ecosystems research: Towards a future research agenda. European Planning Studies, 25, 887– 903.
Anderson, J. C., & Gerbing, D. W. (1988). Structural Equation Modeling in Practice: A Review and Recommended Two-Step Approach. Psychological Bulletin, 103(3), 411–423.
Audretsch, D. B., & Belitski, M. ( 2017). Entrepreneurial ecosystems in cities: Establishing the framework conditions. Journal of Technology Transfer, 42, 1030– 1051.
Cohen, J. (1988). Statistical power analysis for the behavioral sciences. Mahwah NJ: Lawrence Erlbaum.
Decker, R. A., Haltiwanger, J., Jarmin, R. S., & Miranda, J. ( 2016). Where has all the skewness gone? The decline in high?growth (young) firms in the U.S. European Economic Review, 86, 4– 23.
Garson, G. D. (2016). Partial Least Squares: Regression & Structural Equation Models.
Gauthier, J. F., Penzel, M., & Marmer, M. ( 2017). Global Startup Ecosystem Report 2017. San Francisco: Startup Genome.
Grohmann, A., & Kauffeld, S. (2013). Evaluating Training Programs: Development and Correlates of the Questionnaire for Professional Training Evaluation. International Journal of Training and Development, 17, 135-155.
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2016). A primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) (Second Edi). SAGE Publications, Inc.
Isenberg, D. (2014). What an entrepreneurship ecosystem actually is. Harvard Business Review Blog, May 12.
Khadhraoui, M., Lakhal, L., Plaisent, M., Bernard, P. (2016). The impact of entrepreneurial orientation on performance and customer satisfaction: The moderator effect of network capabilities. Journal of Economic Development, 8, 66-76.
Malecki (2018). EJ. Entrepreneurship and entrepreneurial ecosystems. Geography Compass, 2, 23-50.
Maroufkhani, P., Wagner, R., & Khairuzzaman, W. I. (2018). Entrepreneurial ecosystems: a systematic review, Journal of Enterprising Communities: People and Places in the Global Economy ,12 ( 4), 545-564.
Ngah, R. (2011). The relationship of intellectual capital, knowledge sharing, innovation and organizational performance of Malaysian SMEs, Unpublished Doctoral Dissertation, Universiti Malaya, Malaysia.
Rajah, S., & Fauziah, W. Y. (2019). Malaysian Entrepreneurial Ecosystem Influence on SMEs Business Performance. Paper presented at Conference: 33rd International Business Information and Management Association IBIMA, Granada, Spain.
Redzuan, M., & Aref, F. (2009). Barriers and opportunities in the development of rural industries: A case study of silverware and batik production in Kelantan, Peninsular Malaysia. J. Agric. & Environ. Sci, 6 (2): 96-202.
Saad, M. N. (2014). Determinants of internalization and performance of SMEs in Malaysia, Unpublished Doctoral Thesis, Universiti Malaya, Malaysia.
Spigel, B. (2015). The Relational Organization of Entrepreneurial Ecosystems, Entrepreneurship Theory and Practice, June, 1-24.
Spigel, B. (2017). The Relational Organization of Entrepreneurial Ecosystems, Entrepreneurship Theory and Practice, 41 (1), 49-72.
Stam, E. ( 2007). Why butterflies don't leave: Locational behavior of entrepreneurial firms. Economic Geography, 83, 27– 50.
Stam, E. ( 2015). Entrepreneurial ecosystems and regional policy: A sympathetic critique. European Planning Studies, 23, 1759– 1769.
Surin, E. F. (2014). Moderating role of human capital on the relationship between social network and business performance of established manufacturing SMEs, Unpublished Doctoral Dissertation, Universiti Teknologi MARA, Malaysia.
Yan, Y., & Guan, J. (2019). Entrepreneurial ecosystem, entrepreneurial rate and innovation: The moderating role of internet attention, Int Entrep Manag J (15), 625–650
Yojana, B., & Sansad, M. (2006). Status Study of Tribal Handicraft- An Option for Livelihood of Tribal Community in the States of Arunachal Pradesh Rajasthan, Uttaranchal and Chhattisgarh.
Zainol, N. R., Al Mamun, A., Ahmad, G., & Simpong, D. B. (2018). Human Capital and Entrepreneurial Competencies towards Performance of Informal Microenterprises in Kelantan, Malaysia. Economics and Sociology, 11(4), 31-50.
In-Text Citation: (Hussein et al., 2021)
To Cite this Article: Hussein, N., Omar, M. K., & Surin, E. F. M. (2021). Handicraft Industry Entrepreneurial Ecosystem (HIEE): An Empirical Evidence of Malaysian Handicraft Micro and Small Industry Entrepreneurs. International Journal of Academic Research in Business and Social Sciences, 11(6), 1267–1278.
Copyright: © 2021 The Author(s)
Published by HRMARS (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode