Navigating uncertainty: Disaster risk management and resilience in Malaysian small and medium enterprises

Abstract

Small and Medium Enterprises (SMEs) constitute a crucial sector of Malaysia's economy, contributing approximately 38.9% to the nation's GDP and employing a substantial portion of the workforce. However, these enterprises face significant vulnerabilities to natural disasters, including floods, landslides, and haze incidents, which threaten their operational continuity and long-term sustainability. This study examines the multifaceted determinants influencing disaster risk management (DRM) adoption among Malaysian SMEs through a comprehensive conceptual framework. Drawing from established theoretical foundations including Protection Motivation Theory, Adaptive Capacity Theory, Institutional Theory, and Resource-Based View Theory, our framework integrates three interconnected components: input factors (organizational characteristics, technological capabilities, institutional support mechanisms, and financial resources), process factors (risk assessment and preparedness planning, response strategies, and monitoring and evaluation), and outcome factors (effectiveness of DRM practices, business continuity, and overall resilience). The framework provides a holistic lens to analyse the complex interplay between these factors, informing evidence-based policymaking, targeted support mechanisms, and capacity-building initiatives. This research contributes to the body of knowledge in disaster management, organizational resilience, and SME development, serving as a foundation for future empirical research and practical applications aimed at enhancing the disaster resilience of Malaysian SMEs in an increasingly unpredictable business environment.