Gender Managerial Workforce and Partial Least Squares On Small and Medium Enterprises (SMEs) Performances in Selangor, Malaysia

Abstract

This study aims to establish the relationships of the performances on Small and Medium Enterprises (SMEs) in Selangor, Malaysia. In addition, it also provides an overview on the appropriate analysis of structural equation modelling using the partial least squares method (PLS-SEM). A survey questionnaire is the instrument used for data collection on the services industries. The latent constructs for this study are: Entrepreneur Orientation (EO), Human Resource Management (HRM), Market Orientation (MO) and Information, Communication and Technology (ICT), meanwhile, the observe variable is the SME's performances. There are two components of an SEM; inner model and the outer model. PLS-SEM follows a two-step process that involves separate assessments of the measurement model and the structural model. Each process of model evaluation would follow a set of validity guidelines. The authors review on the application of PLS-SEM and its algorithm in evaluating the SMEs performances. The results obtained show that there are positive relationships between EO, HRM, MO and ICT with respect to SME's Performances and men play an active managerial role than women in the SMEs. Thus, this research can assist the entrepreneurial managers with the application of this technique.