International Journal of Advanced and Applied Sciences

Int. j. adv. appl. sci.

EISSN: 2313-3724

Print ISSN: 2313-626X

Volume 4, Issue 9  (September 2017), Pages:  108-113

Title: Influencing factors in doing business: The case of oil palm smallholders

Author(s):  Azhar Ahmad 1, *, Ahmad Rafis Che Omar 1, Md Shafiin Shukor 1, Lokhman Hakim Osman 1, Norazlan Alias 1, Mara Ridhuan 1, Suraiya Ishak 2, Mohd Abdullah Jusoh 3

Affiliation(s):

1Faculty of Economics and Management, Universiti Kebangsaan Malaysia, Bangi, Malaysia
2Faculty of Social Sciences and Humanities, Universiti Kebangsaan Malaysia, Bangi, Malaysia
3Faculty of Management and Economics, Universiti Pendidikan Sultan Idris, Tanjung Malim, Malaysia

https://doi.org/10.21833/ijaas.2017.09.014

Full Text - PDF          XML

Abstract:

Agricultural industry such as oil palm is facing the market volatility and economic oppression. This resulted in volatility of oil palm planter’s revenue. One way to make up the shortfall in revenue is to get them involved in business. However, the involvement of oil palm smallholders is not only influenced by economic factors alone, but also influenced by the push and pull factors. Therefore, the study included 178 smallholders who were currently doing business in Johor, Selangor, Perak and Sarawak. Analysis was done by Structural Equation Model (SEM) using SmartPLS software. The study found that the respondents engaged in business with the push and pull factors. Overall, the respondents expressed that “risk / challenges management” is the most important push factor followed by “leadership skill”, “business opportunity”, “family encouragement” and “income level”. Meanwhile, “attend training” is the most important pull factor followed by factors of “infrastructure facilities” and “finance”. 

© 2017 The Authors. Published by IASE.

This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).

Keywords: Factors in business, Entrepreneurships, Smallholders

Article History: Received 15 February 2017, Received in revised form 20 July 2017, Accepted 20 July 2017

Digital Object Identifier: 

https://doi.org/10.21833/ijaas.2017.09.014

Citation:

Ahmad A, Omar ARC, Shukor MS, Osman LH, Alias N, Ridhuan M, Ishak S, and Jusoh MA (2017). Influencing factors in doing business: The case of oil palm smallholders. International Journal of Advanced and Applied Sciences, 4(9): 108-113

http://www.science-gate.com/IJAAS/V4I9/Ahmad.html

References:

  1. Alvarez SA and Busenitz LW (2001). The entrepreneurship of resource-based theory. Journal of Management, 27(6): 755-775. https://doi.org/10.1177/014920630102700609 
  2. Azhar A, Omar AR, Osman LH, Shukor MS, and Jusoh MA (2015). Oil palm smallholder's engagement in business activities. International Academic Research Journal of Social Science, 1(2): 192-198.     
  3. Chin WW (1998). The partial least squares approach to structural equation modeling. Modern Methods for Business Research, 295(2): 295–336.     
  4. Corso M, Martini A, Paolucci E, and Pellegrini L (2003). Knowledge management configurations in Italian small-to-medium enterprises. Integrated Manufacturing Systems, 14(1): 46-56. https://doi.org/10.1108/09576060310453344 
  5. Emin C (2000). Knowledge management as a competitive asset: A review. Marketing Intelligence and Planning, 18(4): 166-174. https://doi.org/10.1108/02634500010333280 
  6. Fishbein M and Ajzen I (1977). Belief, attitude, intention and behavior: An introduction to theory and research. Philosophy and Rhetoric, 10(2): 130-132.     
  7. Fuller PB (1994). Assessing marketing in small and medium-sized enterprises. European Journal of Marketing, 28(12): 34-49. https://doi.org/10.1108/EUM0000000003872 
  8. Gadar K and Yunus N (2009). The influence of personality and socio-economic factors on female entrepreneurship motivations in Malaysia. International Review of Business Research Papers, 5(1): 149-162.     
  9. Hair J, Money A, Samouel P, and Page M (2007). Research methods for business. John Wiley and Sons, New York, USA.     
  10. Hulland J (1999). Use of partial least squares (PLS) in strategic management research: A review of four recent studies. Strategic Management Journal, 20(2): 195–204. https://doi.org/10.1002/(SICI)1097-0266(199902)20:2<195::AID-SMJ13>3.0.CO;2-7 
  11. Indarti N and Langenberg M (2004). Factors affecting business success among SMEs: Empirical evidences from Indonesia. In The 2ed Bi-annual European Summer University, University of Twente, Encschede, Netherland: 19-25.     
  12. Jasra J, Khan M, Hunjra A, Rahman R, and Azam R (2011). Determinants of business success of SMEs. International Journal of Business and Social Science, 2(20): 275-280.     
  13. Jutla D, Bodorik P, and Dhaliwal J (2002). Supporting the e-business readiness of small and medium-sized enterprises: Approaches and metrics. Internet Research, 12(2): 139-164. https://doi.org/10.1108/10662240210422512 
  14. Kolawole O and Torimiro D (2005). Participatory and entrepreneurship development for grasstoots transformation: A factor analysis. Journal of Human Ecology, 18(3): 193-198.     
  15. Kuzilwa J (2005). The role of credit for small business success: A study of the national entrepreneurship development fund in Tanzania. The Journal of Entrepreneurship, 14(2): 131-161. https://doi.org/10.1177/097135570501400204 
  16. Mazdan A and Khiri M (2014). Personality dimensions towards entrepreneurship enculturation among graduates in Malaysia. International Journal of Arts and Commerce, 3(6): 85-93.     
  17. Morrison, A. (1996). Marketing the small tourism business. In: Seaton AV and Bennett M (Eds.), Marketing Tourism products: Concepts, issues and cases. International Thomson Publishing, London, UK.     
  18. MPOB (2014). Annual Report. The Malaysian Palm Oil Board, Bandar Baru Bangi, Malaysia. Available online at: http://www.mpob.gov.my/ms/info-sawit/alam-sekitar/520-achievements 
  19. Page J, Forer P, and Lawton GR (1999). Small business development and tourism: Terra incognita?. Tourism Management, 20(4): 435-459. https://doi.org/10.1016/S0261-5177(99)00024-2 
  20. Rose R, Kumar N, and Yen L (2006). Entrepreneurs success factors and escalation of SMEs in Malaysia. Journal of Social Sciences, 2(3): 74-80. https://doi.org/10.3844/jssp.2006.74.80 
  21. Salleh NHM, Shukor MS, Othman R, Samsudin M, and Idris SHM (2016). Factors of local community participation in tourism-related business: Case of langkawi island. International Journal of Social Science and Humanity, 6(8): 565-571. https://doi.org/10.7763/IJSSH.2016.V6.712 
  22. Santrock JA (2007). Topical approach to life span development, McGraw-Hill, New York, USA.     PMid:18083470 
  23. Smit Y and Watkins JA (2012). A literature review of small and medium enterprises (SME) risk management practices in South Africa. African Journal of Business Management, 6(21): 63-74.     
  24. Vinten G (2000). Training in SMEs. Industrial and Commercial Training, 32(1): 9-14. https://doi.org/10.1108/00197850010311112 
  25. Walker E and Brown A (2004). What success factors are important to small business owners?. International Small Business Journal, 22(6): 577-594. https://doi.org/10.1177/0266242604047411 
  26. Yew K and Aspinwall E (2004). Characterizing knowledge management in small business environment. Journal of Knowledge Management, 8(3): 44-61. https://doi.org/10.1108/13673270410541033 
  27. Zapalska AM, Brozik D, and Zieser N (2015). Factors affecting success of small business enterprises in the Polish tourism industry. Turizam: Znanstveno-Stručni Časopis, 63(3): 365-381.