THE EFFECT OF GOVERNMENT INTERVENTION ON THE SUSTAINABLE COMPETITIVE ADVANTAGE AMONG SMES IN MALAYSIA

Abstract

This pilot study is conducted to see whether government intervention affect the sustainable competitive advantage of SMEs in Malaysia or not. It has become imperative since the numbers of SMEs establishment in Malaysia rose every year. However, their sustainability towards competitive advantage was questionable whether it is due to the intervention of the government or their own effort. It was focused on a general question whether government intervention importance among SMEs and provides empirical verification on types of government intervention received by SMEs. In an attempt to contribute to the body of knowledge in this area, this paper collected 30 respondents for pilot testing before commencing the main research study on sustainable competitive advantage. Data were collected from the SMEs of service sector that have been established at least five years in Malaysia through questionnaires. The results show that most SMEs agreed that government intervention is important towards the sustainable competitive advantage and success of SMEs