Navigating Disruption: Strategic Decision-Making for Resilient Malaysian SMEs

Abstract

In the disruptive era defined by rapid technological advancements, globalisation, and volatile market conditions, Small and Medium Enterprises (SMEs) face unique challenges and opportunities. This concept paper explores the critical factors influencing strategic decision-making in Malaysian SMEs, focusing on leadership, cost management, supply chain management, and digitalisation. Anchored in the theoretical frameworks of the Upper Echelons Theory, Resource-Based View (RBV), and Dynamic Capabilities Theory, the study presents a conceptual framework highlighting the interplay between internal capabilities and external pressures. The paper emphasises the pivotal role of leadership in driving resilience and innovation, cost management in optimising resources, supply chain innovations in enhancing adaptability, and digital transformation in fostering strategic agility. By addressing gaps in the literature and contextualising findings within Malaysia's socio-economic landscape, this paper provides actionable insights for SME leaders and policymakers. It advocates for future empirical research to validate the framework and explore the synergistic effects of these factors, offering practical strategies for SMEs to navigate disruption and achieve long-term competitiveness.