SME PERFORMANCE ON OWNER–MANAGER VALUES: EMPIRICAL EVIDENCE FROM TWO ASIAN COUNTRIES

Abstract

Small and Medium-sized Enterprises (SMEs) all over the world have played a fundamental role in promoting economic and social development. At present, a crucial problem has arisen in the long term survival, how and what will be the best adaptation of the SMEs for changes in the dynamic environment to maintain their productivity. In this context, while considerable attention has been devoted by researchers to the personal traits of owner-managers/entrepreneurs of Small and Medium-Sized Enterprises (SMEs), less attention has been given to their values, especially outside the western context. However, as values are instrumental in the decision making and have implications for the owner-manager’s behavior and approach to managing the organization, the aim of this research was to examine the personal values of owner-managers and empirically test the relationship between personal values and the performance of SMEs. The research fills a gap in empirical research on values and performance in SMEs within the Asian context to a significant context. Data for the research were obtained from a mail survey using a questionnaire distributed to owner-managers of SMEs in manufacturing industry in two Asian countries-Japan and Sri Lanka. Non-parametric statistical techniques were employed for the purpose of data analysis. It was found that there is a significant relationship between ownermanager values and performance of SMEs. The findings and implications of this study could provide some useful insights to fill the gap in contemporary research and contribute to literature which can be useful to owner-managers and managers of SMEs.

Key Words: SMEs, Values, Performance

For full paper: fmscresearch@sjp.ac.lk