Moderating role of lean practices on the relationship between on-shelf availability and retail SMEs performance

• Main Author: Halim, Hamim
• Format: Thesis
• Language: English; English
• Published: 2021
• Subjects: HD28-70 Management. Industrial Management; HD60 Small Business.
• Online Access: https://etd.uum.edu.my/9637/1/s900445_01.pdf; https://etd.uum.edu.my/9637/2/s900445_02.pdf; https://etd.uum.edu.my/9637/
• Institution: Universiti Utara Malaysia

Firm performance is a critical issue for Malaysian industries. This includes the retail sector which always strives for on-shelf availability superior performance. The main objective of this study was to examine the relationships between on-shelf availability (OSA) and the SMEs’ performance (FP) of the retail subsector. This empirical research integrated OSA drivers, namely operational (OPS), behavioral (BVL), managerial (MGR) and coordination (CDN). Studies focusing on Malaysian retail SMEs’ performance especially in terms of the determinant effects on FP are scarce. Thus, this study utilized lean practices (LP) as a moderating variable in examining its influence on the determinants and FP. Data were collected from SMEs’ owner-managers in the retail category within the central region of peninsular Malaysia using the cross-sectional study design. The quantitative method was utilized through survey questionnaires. This study adopted stratified sampling and 373 retail SMEs were randomly selected. 151 usable responses were analysed and regressed using the PLS-SEM software. Results of the structural model assessment for direct relationship by PLS-SEM indicated that OPS, BVL and CDN had significant effects on FP. However, MGR did not provide any significant positive effect on FP. The results also showed that LP moderated three relationships, namely OPS-FP, BVL-FP and MGR-FP, but not the CDN-FP relationship. In this study, theoretical contribution was evident by integrating the Constraints and Contingency constructs, where the results were able to extend the body of knowledge in SMEs literature. The results of this study provide important inputs to the owner- managers, researchers and policy-makers to further understand the determinant effects on retail SMEs’ performance and the moderating effect of lean practices. Finally, the study's limitations and future research directions are explored.