Small and medium-sized enterprises (SMEs) in both the industrial and service sectors have been identified as the drivers of Malaysia’s fast economic growth. However, SMEs are faced with an inherent issue of lack of resources and capabilities which constrains the ability of SMEs to improve performance. Due to this, it is critical for SMEs to understand and develop an important capability that supports them in facing a dynamic and competitive business environment. This study examines the mediating role of contextual ambidexterity as a dynamic capability in the relationship between innovation culture and SME performance. The online surveys were carried out starting from 5th July until 25th July 2021. A total of 277 SMEs in Selangor, Malaysia participated in this study and Covariance-Based Structural Equation modeling analysis was utilized to test the hypotheses. The findings show that in terms of direct relationships, innovation culture has a significant positive relationship with contextual ambidexterity, while innovation culture and contextual ambidexterity have a significant positive relationship with SME performance. The findings showed that contextual ambidexterity is significant as a mediator in the relationship between innovation culture and SME performance. This study makes an important contribution to the management field by highlighting the role of contextual ambidexterity, which is often the focus of large companies. These findings support the notion of dynamic capability that accentuates the importance of developing capabilities in dealing with dynamic and challenging situations.

In the past decade, franchising has become a well-known platform for business expansion. Various strategies have been employed by franchisors in expanding their business into the global market. However, few studies have assessed the determinants that can be adopted by the franchisors in bringing value as well as opening up opportunities for global market expansion. This study aims to explore the determinants of global expansion based on Malaysian franchisors’ experience. A qualitative research approach was adopted through various case studies with ten franchisors from the food and beverage industry in Malaysia. In-depth interviews were carried out to explore this topic. Thematic analysis was performed through the “Atlas.ti” software package version 9.0, which was also used in analyzing the data. The findings indicated that there are four themes, and nine sub-themes were discovered from the grounded data. The franchisors agreed that franchise brand, business location, product, advertising, and promotion were able to influence franchisors in designing strategies for global expansion. The data were also able to provide an in-depth understanding of the determinants for global expansion that can be undertaken as a guide to prospective franchisors who want to start exploring the global market. These results are expected to assist the government as well as the agencies involved with franchising in improving related policies, strategies and programmes. Thus, it is important to understand these determinants in order to survive in a competitive global market.

Since the world was hit by the COVID-19 pandemic crisis that began in December 2019, many industries have been affected, including the franchise industry in Malaysia. Thus, the COVID-19 pandemic has had a great impact on business survival. Direct effects can be seen in reduced income, job losses, changes in customer preferences, and business relationships between franchisors and franchisees. Some franchises have had to close their operations, and others still struggled to survive during the pandemic crisis. In addressing this situation, the role of government is crucial in supporting the resilience of these franchisor entrepreneurs in an increasingly worrisome situation around the world. However, the existing literature that focuses on the role of government in developing countries such as Malaysia is still poorly understood. In addition, a study of the Malaysian franchising industry during the pandemic crisis is still inadequate, especially concerning the government’s role in the survival of local franchises during the pandemic era. Therefore, understanding the role of the government in advocating the survival of local Malaysian franchises is worth studying. A qualitative research approach was applied through multiple cases involving twelve (12) franchise business owners and four (4) franchise-related agencies in Malaysia. In-depth interviews were conducted in exploring this topic. Thematic analysis has been used by applying “Atlas.ti” in analysing the data. Hence, the findings have indicated four themes from the grounded data. There are: (i) financial assistance; (ii) virtual franchise exhibition; (iii) training and support; and (iv) business development grants. This study is expected to highlight the role of government as well as agencies involved with the franchising industry in improving policies, strategies, and programs to ensure the viability of the franchise industry during periods of pandemic outbreaks.