THE CRITICAL SUCCESS FACTORS (CSFs): EMPIRICAL INSIGHT FROM MALAYSIAN SMEs

Abstract: This study investigates the critical success factors (CSFs) of SMEs in Malaysia. The study examines the mechanisms by which each factor enhances the success and survival of SMEs. The research design employed in this study was a quantitative methodology. Data were collected through online questionnaires administered to business owners and senior managers in SMEs located in Peninsular Malaysia using convenience sampling. The study sample comprised 450 SMEs operating in diverse business sectors, including service, manufacturing, and construction. The hypotheses were tested using the SmartPLS software. The findings suggest that business networks, financial resources, human capital, and marketing are positively correlated with SMEs success. The results also revealed that strategic planning and technology influence have a negative correlation with SMEs success. This study highlights the significance of Critical Success Factors (CSFs) as a competitive advantage for small and medium-sized enterprises (SMEs) in the manufacturing, services, and construction industries in peninsular Malaysia. The findings offer valuable insights for SME owners and managers to overcome challenges and establish robust operational structures. Keywords:. Financial resources, Technology influence, Marketing, Human capital, Business networks, Strategic planning, SMEs success