THE RELATIONSHIP BETWEEN SOFT AND HARD FACTORS ON OPERATIONAL EXCELLENCE IN SMALL AND MEDIUM ENTERPRISES (SMES)

Abstract

The purpose of this study was to examine the relationship between soft and hard factors on operational excellence among Small and Medium Sized Enterprises (SMEs) in the manufacturing sector in Malaysia. Grounded by the Resource-Based View (RBV) Theory, this study presents a conceptual framework incorporating both soft and hard factors that impact operational excellence. While many factors influence operational excellence, this study focuses on the soft and hard factors and fills a gap in the literature by studying SMEs manufacturing sectors in Malaysia. This paper makes a valuable contribution to the existing body of knowledge by enhancing conceptual understanding of operational excellence within the context of SMEs in Malaysia. The practical implementation of effective management strategies for both soft and hard factors among Malaysian SMEs can significantly contribute to achieving operational excellence and improving their overall business performance.