Investigating Constraints In Food Manufacturing For SMEs Performance : A Case Of Kuala Lumpur

Small and medium enterprises (SMEs), across sectors, have proven to be the backbone of the world's economy including Malaysia. However, according to the SME annual report in 2016, 41 percent of businesses have deteriorated in terms of sales and profit, during the third quarter of 2015. Hence, i...

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Main Author: Kamaruddin, Nur Izaitun
Format: Thesis
Language:English
English
Published: 2018
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Online Access:http://eprints.utem.edu.my/id/eprint/23712/1/Investigating%20Constraints%20In%20Food%20Manufacturing%20For%20SMEs%20Performance%20-%20A%20Case%20Of%20Kuala%20Lumpur.pdf
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spelling my-utem-ep.237122022-02-22T11:13:43Z Investigating Constraints In Food Manufacturing For SMEs Performance : A Case Of Kuala Lumpur 2018 Kamaruddin, Nur Izaitun H Social Sciences (General) HD Industries. Land use. Labor Small and medium enterprises (SMEs), across sectors, have proven to be the backbone of the world's economy including Malaysia. However, according to the SME annual report in 2016, 41 percent of businesses have deteriorated in terms of sales and profit, during the third quarter of 2015. Hence, if the deterioration continues, food manufacturing will also face the impacts as 90 percent of the establishments of the food manufacturing are SMEs. Furthermore, food manufacturing is the highest contributor in manufacturing sector of SMEs, in terms of value of gross output, largest number of establishments, and largest number of employments. The deterioration of business proved that there is a presence of constraints that hinder the performance of SMEs. Thus, this study intended to investigate the constraints and their impacts towards SMEs in food manufacturing located in Kuala Lumpur. With the application of Theory of Constraints, five constraints have been identified in the literature that influence the performance of food manufacturing SMEs, namely: (i) institutional constraints, (ii) financial constraints, (iii) external constraints, (iv) internal constraints, and (v) social constraints. A framework consisting of five independent variables and one dependent variable was developed. In order to meet the research objectives, this study employed quantitative method by conducting a self-administered survey questions to 135 SMEs in food manufacturing. The distribution of questionnaires was conducted by hand and through electronic mail. The same method was applied in data collection. The results from correlation and multiple regression have identified that financial, external, and social constraints were significant to the performance of SMEs in food manufacturing. On the other hand, institutional and internal constraints were not significant to the performance. Thus, greater initiatives and collaboration from various parties that are involved directly and indirectly with SMEs in food manufacturing, are needed in order to reduce these constraints. Reduction and elimination of constraints faced by SMEs would enhance the performance of food manufacturing SMEs. This study has managed to produce a model of constraints that have. an impact on the performance of food manufacturing SMEs. In conclusion, this study provided clearer understanding of the food manufacturing practices in Malaysia and offer several implications for research, policymakers, and practitioners. 2018 Thesis http://eprints.utem.edu.my/id/eprint/23712/ http://eprints.utem.edu.my/id/eprint/23712/1/Investigating%20Constraints%20In%20Food%20Manufacturing%20For%20SMEs%20Performance%20-%20A%20Case%20Of%20Kuala%20Lumpur.pdf text en public http://eprints.utem.edu.my/id/eprint/23712/2/Investigating%20Constraints%20In%20Food%20Manufacturing%20For%20SMEs%20Performance%20-%20A%20Case%20Of%20Kuala%20Lumpur.pdf text en validuser http://plh.utem.edu.my/cgi-bin/koha/opac-detail.pl?biblionumber=112233 mphil masters Universiti Teknikal Malaysia Melaka Faculty Of Technology Management And Technopreneurship
institution Universiti Teknikal Malaysia Melaka
collection UTeM Repository
language English
English
topic H Social Sciences (General)
H Social Sciences (General)
spellingShingle H Social Sciences (General)
H Social Sciences (General)
Kamaruddin, Nur Izaitun
Investigating Constraints In Food Manufacturing For SMEs Performance : A Case Of Kuala Lumpur
description Small and medium enterprises (SMEs), across sectors, have proven to be the backbone of the world's economy including Malaysia. However, according to the SME annual report in 2016, 41 percent of businesses have deteriorated in terms of sales and profit, during the third quarter of 2015. Hence, if the deterioration continues, food manufacturing will also face the impacts as 90 percent of the establishments of the food manufacturing are SMEs. Furthermore, food manufacturing is the highest contributor in manufacturing sector of SMEs, in terms of value of gross output, largest number of establishments, and largest number of employments. The deterioration of business proved that there is a presence of constraints that hinder the performance of SMEs. Thus, this study intended to investigate the constraints and their impacts towards SMEs in food manufacturing located in Kuala Lumpur. With the application of Theory of Constraints, five constraints have been identified in the literature that influence the performance of food manufacturing SMEs, namely: (i) institutional constraints, (ii) financial constraints, (iii) external constraints, (iv) internal constraints, and (v) social constraints. A framework consisting of five independent variables and one dependent variable was developed. In order to meet the research objectives, this study employed quantitative method by conducting a self-administered survey questions to 135 SMEs in food manufacturing. The distribution of questionnaires was conducted by hand and through electronic mail. The same method was applied in data collection. The results from correlation and multiple regression have identified that financial, external, and social constraints were significant to the performance of SMEs in food manufacturing. On the other hand, institutional and internal constraints were not significant to the performance. Thus, greater initiatives and collaboration from various parties that are involved directly and indirectly with SMEs in food manufacturing, are needed in order to reduce these constraints. Reduction and elimination of constraints faced by SMEs would enhance the performance of food manufacturing SMEs. This study has managed to produce a model of constraints that have. an impact on the performance of food manufacturing SMEs. In conclusion, this study provided clearer understanding of the food manufacturing practices in Malaysia and offer several implications for research, policymakers, and practitioners.
format Thesis
qualification_name Master of Philosophy (M.Phil.)
qualification_level Master's degree
author Kamaruddin, Nur Izaitun
author_facet Kamaruddin, Nur Izaitun
author_sort Kamaruddin, Nur Izaitun
title Investigating Constraints In Food Manufacturing For SMEs Performance : A Case Of Kuala Lumpur
title_short Investigating Constraints In Food Manufacturing For SMEs Performance : A Case Of Kuala Lumpur
title_full Investigating Constraints In Food Manufacturing For SMEs Performance : A Case Of Kuala Lumpur
title_fullStr Investigating Constraints In Food Manufacturing For SMEs Performance : A Case Of Kuala Lumpur
title_full_unstemmed Investigating Constraints In Food Manufacturing For SMEs Performance : A Case Of Kuala Lumpur
title_sort investigating constraints in food manufacturing for smes performance : a case of kuala lumpur
granting_institution Universiti Teknikal Malaysia Melaka
granting_department Faculty Of Technology Management And Technopreneurship
publishDate 2018
url http://eprints.utem.edu.my/id/eprint/23712/1/Investigating%20Constraints%20In%20Food%20Manufacturing%20For%20SMEs%20Performance%20-%20A%20Case%20Of%20Kuala%20Lumpur.pdf
http://eprints.utem.edu.my/id/eprint/23712/2/Investigating%20Constraints%20In%20Food%20Manufacturing%20For%20SMEs%20Performance%20-%20A%20Case%20Of%20Kuala%20Lumpur.pdf
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