SMEs' Preparedness to Face Economic Crisis: A Proposed Framework for Malaysian SMEs

Abstract

Economic crises are becoming more frequent, due to which the economies are going in and out of recession continuously. Large organizations have the potential to survive recessions because of their huge financial base but problem becomes severe to SMEs'. SMEs' are the backbone of every economy; they are small in size but large in numbers. In Malaysia, SMEs contribute 32% of GDP and employ 59% of workforce. In this paper, authors have tried to establish a relationship between organizational crisis management preparedness with organizational performance, organization experience, CEO characteristics and risk attitude.It has been proposed that these factors have the potential to influence the organizations crisis management preparedness in SMEs' in Malaysia.