Linkage between Flexibility and SMEs Performance: Does Improvisation Matter?

Abstract

Small Medium Enterprises (SMEs) has become significant in today’s economic growth. To gain and sustain the SMEs performance, one of the ways the organization should do is to be flexible and improvise in its business activities. The link between flexibility, improvisation and SMEs performance is still vague, thus this paper aims to investigate the effect of improvisation as a mediator between organizational flexibility and SMEs performance. Three hypotheses are put forward to achieve the aforementioned research goal. Obtaining on a survey data from 202 manufacturing SMEs in Malaysia, the findings of the study confirmed that all hypotheses have a positive significant association. Theoretically and in practice, this study denotes rich addition to the vocabulary of business and management.