Cost management, entrepreneurship and competitiveness of strategic priorities for small and medium enterprises

In this paper, we examine the relationship between cost management practices and competitiveness of strategic priorities of Small and Medium Enterprises (SMEs). Based on resource based view theory, we argue that cost management is an important resource to develop competitiveness of strategic priorities of SMEs. This paper posits that there is a positive relationship between cost management practices and competitiveness of strategic priorities of SMEs. Questionnaire surveys were mailed to either owners or senior management of SMEs in Malaysia. This study applies factor analysis and regression to test the hypotheses. Consistent with previous research, the results of this study provide evidence that cost management practices is positively associated with SME's competitiveness of strategic priorities. A further analysis demonstrates that the relationship between cost management practices and SMEs' competitiveness of strategic priorities is mediated by entrepreneurship capabilities. This study contributes to the literature on resource based view by extending the understanding of integrated effects of cost management practices and entrepreneurship on competitiveness of strategic priorities. In terms of practical contribution, the results of this study can be used by regulators, policy makers and SMEs' owners in developing the right resources to enhance the competitiveness of SMEs' strategic priorities. (C) 2016 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY-NC-ND license.