Economic Vulnerability, Orientations and Performance: a study among Micro-enterprises in Kelantan, Malaysia

Abstract

This study examined the impact of economic vulnerability on strategic orientations (i.e. sales orientation, consumer orientation, competitive orientation, emotional orientation and business orientation), and the effect of strategic orientations on the performance of the micro-enterprises in Kelantan Malaysia. This study used a cross-sectional design and collected quantitative data through structured interviews from 450 micro-entrepreneurs in Kelantan, Malaysia. Economic vulnerability has significant negative effects on the dimensions of strategic orientation (i.e. Sales Orientation; Consumer Orientation; Competitive Orientation; Emotional Orientation, Business Orientation). Moreover, both competitive and business orientation showed significant positive effects on micro-enterprise performance. This is the first known study to test the relationship between economic vulnerability and strategic orientations. This study is further unique because of its focus on micro-entrepreneurs of emerging economies, a context missed by most previous studies. Apart from extending current literature, this paper could have significant policy and practical implications.