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This study analyzes strategic factors that can influence the performance of small and medium size enterprises (SMEs) in the Malaysian manufacturing sector. The conceptual framework is developed based on the distinctive capabilities and the performance of the SMEs. This study is based on a sample survey of 121 SMEs in the manufacturing sector. Using structured questionnaires, the data is collected by mailing as well as interviews with owner-managers of the SMEs. Using the Statistical Package of Science Social (SPSS) program, the analyses were made to show the relationship between the distinctive capabilities and the performance of SMEs. The findings indicate that there is a significant relationship between distinctive capabilities and the performance of SMEs.

The Relationship Between Distinctive Capabilities And The Performance Of Small And Medium-Size Enterprises (SMES) In Malaysia