Factors Influencing Employee's Performance in Small and Medium Enterprises of Malaysia

Abstract

Employee performance is one of the most important components for the organization to excel. This study aims to analyse the determinants for employee performance in small and medium enterprises (SME) in Malaysia. Based on the literature discussed, the four factors considered as the important elements influencing the employees' performance that are investigated. The research question lies in whether each of those factors has a simultaneous and partial effect on the employees' performance or otherwise. Using the quantitative method, the population of this study was 200 respondents. The primary data gathered in the form of questionnaires with a Likert typed-scale were then analysed using the multiple regression method. The findings from this study showed that all the independent variables such as employee engagement, employee empowerment, innovation at work and knowledge management have a strong relationship with the performance of employee which is the dependent variable of the study. The Cronbach alpha of each of these variables is more than 0.7 which makes the study a reliable one.