Indigenous (“Bumiputera”) Malay Entrepreneurs in Malaysia: Government Supports, Entrepreneurial Orientation and Firms Performances

Abstract

The research examines entrepreneurial orientation (EO) in Indigenous or Bumiputera entrepreneurs (Malay firms) by taking government supports as the antecedent. This construct is used to explain the influence of entrepreneurial orientation (EO) and its consequence towards firm performance. Design/methodology/approach Multiples Linear Regressions (MLR) analysis was conducted to test the hypothesis on surveyed firms selected from the current available list given by MARA (the government agency for Indigenous or Bumiputera SMEs). The specific research question is: Does the relationship between government supports received by entrepreneur and firm performance is mediated by entrepreneurial orientation (EO)? Findings In Malay firms, the relationship between government supports with firm performance was not mediates by entrepreneurial orientation (EO). However, the construct is significant as predictor towards firm performance. Practical implications This research provides a better understanding of the indigenous entrepreneurs for policy makers, NGOs, business support organizations and the indigenous entrepreneurs themselves particularly in planning or utilizing government supports programmes. Originality/value The impact of government supports towards firm performance observed in Malay firms is unique to the paper. Our studies provided the empirical test in understanding indigenous entrepreneurship in Malay firms in Malaysia towards developing a more holistic entrepreneurship theory. Key words: Entrepreneurial Orientation (EO); Government Supports; Indigenous Entrepreneurship