**5. Hypotheses Discussion**

According to Adams et al. [103], the validation of the hypothetically assumed relationship between variables was identified from the PLS path coefficients, structural model. A causal relationship can be interpreted based on the standardized beta coefficient of ordinary least square regressions. Table 3 shows the path coefficients and t-value of each exogenous construct.

**Table 3.** Results of hypotheses testing.


\* Significant at 0.05, \*\* Significant at 0.01.

PLS regression results show that autonomy is not a significant predictor of business performance (beta = 0.033; t-value 0.865 significant at *p* > 0.05). However, this finding is contrary to the findings by Bavon, [53], Xu, [54], Izumi and Ayse, [55] who studied large industries. Further, in the case of SME study, the Sri Lankan study by Eriksson and Thunberg [56] also supports the previous study not only finding a relationship but also having the highest strength in the relationship between autonomy and business performance among other factors. However, the findings by Kasumawardhani [57] and Baba and Elumalai [52], who studied from the perspective of Indonesia and Malaysia, respectively confirms present study's outcome and suggested that autonomy might hamper in achievement of goal if independent spirit and freedom of action of employees are not taken in to account which reassures that autonomy is not an important factor in influencing business performance of Malay-based SMEs in Malaysia.

Consistent with the study of Davis, [51] the research found that risk-taking was positively and significantly related to business performance. This study also confirmed other studies such as Coulthard [46] found that risk-taking is important (beta = 0.1343; t-value 2.535 significant *p*-values = 0.05) rejecting the finding by Naldi et al. [64] and Sebora et al. [65] who showed a negative relationship. Taking risks keeps an entrepreneur in thinking of new approaches and allows striving which in return helps him put on the right track of performance. Research shows that it is important for the company owner or manager to tackle risk in the business [63]. These results are also supported by findings by other researchers [39].

From the third proposition (Hypothesis 3), this study found a significant positive relationship (β = 0.089; t-value 1.965 significant *p*-values = 0.05) between proactiveness and business performance complying with all the studies so far, such relevant to this. Nevertheless, the strength of the relationship varied over the study. The study by Kreiser et al. [39] and Hughes and Morgan, [62] found the highest strength of correlation between proactiveness and organizational performance compared with other EO dimensions which are the differences in the present study showing a lower strength among others. The possible reasons could be the maturity of the business. Proactiveness at early growth

stages exposed a positive effect on organizational performance [62], and this association prolongs as the venture ages. As venture ages, the higher is the impact of proactiveness on business performance [2]. Most of the Malay-based SMEs started following the success of Chinese-based SMEs in Malaysia which indicates an early stage of maturity of Malay-based SMEs. Yet, this research confirms the previous studies.

Based on the study results shown in the PLS regression value that innovativeness is significantly and positively related to the business performance of Malay-based firms in Malaysia. The significant relationship results (β = 0.143; t-value 2.944 significant *p*-value = 0.01) authenticating the findings of the study by Kreiser et al. [39], Rauch et al. [45], Davis [51], Hughes and Morgan [62], Coulthard [46], and Kasumawardhani [57] based on other than SMEs. In the context of SMEs, the study based in Greece [71] and even in Malaysia [52,72] another such study innovation was identified to have a significant effect on business performance while this study accentuates the same with an addition on the strength of the relationship is found to be moderate.

In accordance with the study by Koop et al. [74], Rauch and Frese [75], and Spencer and Spencer [76], the study results show that achievement orientation is significantly and positively (β = 0.352; t-value 6.921 significant *p*-value = 0.01) correlated to the business performance among Malaysia-based SMEs in Malaysia. Furthermore, the result is also supported by the study by Krauss et al. [42] where he showed achievement is an important factor as individuals with a high need for achievement perform better with non-routine tasks and take responsibility for their performance. Conversely, this result did not match with the claim of an insignificant relationship in another study in Malaysia by Poon et al. [104]. It is worth mentioning that achievement orientation was observed to be the strongest in terms of significance among all the dimensions tested in this study.
