The Propensity of Adapting Strategic Reactiveness and Entrepreneurial Management Amongst SMEs

It has been widely agreed that entrepreneurship leads to firms’ success. SMEs have been given high priority in Malaysia and have been identified as one of the engines of the economic growth to drive Malaysia toward the NEM (New Economic Model) transformation. This research highlights the implementation of Strategic Reactiveness (SR) and Entrepreneurial Management (EM) tendencies of SMEs sector within the states of Malacca and Johor in Malaysia. This research considers that strategy-related variables are competitively aggressive and adaptive. Strategic planning allows organizations to anticipate changes and create strategic options for those changes. It is commonly perceived that SR will have a positive relationship with EM. Respondents for this research include CEOs, owner-managers and entrepreneurs. The obtained data from the questionnaires are analyzed through SPSS statistical packaged software. Data collected from 178 entrepreneurs indicates that 30.4% impact of SR related to the entrepreneur's organizational potential.