Does Government Support Enhance the Sustainable Competitive Performance Among SMEs? Emperical Study Among Small Medium Enterprises (SMEs) Perlis

In recent decades, economic growth in countries around the world has become increasingly dependent on the dynamism of small and medium-sized enterprises (SMEs). The success of SMEsdepends on the support provided by their state. Government plays a crucial role in small-and medium-sized enterprises to boost performance and economic growth because it creates employment opportunities, poverty reduction, and economic development. The underlining study‟s main objective is to examine how government support affects the sustainable competitive performance of SMEs at Perlis. Hence, small enterprises are a significant source of economic development, employment, and value creation. Therefore, based on previous literature, we developed hypotheses related to government financial support and network structure, and data collected through structured questionnaires from top management of SMEs at Perlis. The results indicate that density has a positive and significant effect on sustainable competitive performance, while centrality has an insignificant impact on sustainable competitive performance. Furthermore, government financial support strongly and significantly supports the sustainable competitive performance of SMEs.


INTRODUCTION
SMEs are the backbone of the Malaysian economy, accounting for 97.2% of total business establishments, generating 38.2% of GDP and providing employment for 7.3 million people. In the last few decades, a comprehensive financing ecosystem has been put in place to provide diversified funding options for SMEs from both public and private institutions. This has enabled Malaysian SMEs to continue to have access to diversified sources of financing to address their needs at various stages of development. However, SMEs in transitioning economies face numerous challenges due to the changes in economic, political, and social systems during the transition period. These challenges include limited access to finance, technology, and markets, inadequate infrastructure, and weak institutions (Welter & Smallbone, 2022).
To overcome these challenges and enhance their competitiveness and sustainability, SMEs rely on various types of support from governments, such as financial assistance, training and consulting services, and regulatory reforms. Government support programs have become increasingly common in transitioning economies, where SMEs have a significant role in economic development. However, the effectiveness of government support programs in promoting SMEs' sustainable competitive performance remains unclear.
Recent studies have highlighted the importance of government support programs in promoting SMEs' growth and competitiveness in transitioning economies. According to Karpak and Topcu (2010) and Paul, Whittam, and Wyper (2007), SMEs have become an increasingly important element of economic growth, representing a large part of most economies around the world. Furthermore, governments and economists see the SMEs as a mechanism to create national growth (Pollard & Hayne, 1998). The flexibility and responsiveness of SMEs to adapt to changes in demand is a key component of a country"s economic growth strategy (Hunter & Long, 2003).
Despite these studies' contributions, there is still a lack of empirical evidence on the relationship between government support and SMEs' sustainable competitive performance in transitioning economies. To fill this gap, this paper aims to investigate the extent to which government support enhances SMEs' sustainable competitive performance during the transition period. By identifying the most effective types of support and contextual factors that moderate the relationship between government support and performance, this paper will help policymakers and managers design and implement effective government support programs for SMEs in transitioning economies.
Kadiri (2012) suggested that in the business world small and medium enterprises development has continued to be a well-accepted phrase because this sector acts as a mechanism for the generation of employment, countrywide development, and poverty decline and economic development. The SMEs have more employment opportunities as compared to the major firm as well as multinationals firms.

LITERATURE REVIEW 2.1 Governement Support towards SMEs Performance
Government support has been recognized as an important factor in promoting the growth and competitiveness of small and medium-sized enterprises (SMEs) worldwide. In transition economies, where SMEs face numerous challenges due to the changes in economic, political, and social systems during the transition period, government support programs have become increasingly common. However, the effectiveness of government support programs in promoting SMEs' sustainable competitive performance remains unclear. The impact of government support on small and mediumsized enterprises (SMEs) in transition economies is a topic of significant interest to scholars, policymakers, and business practitioners. In recent years, researchers have investigated the relationship between government support and sustainable competitive performance in SMEs, with a focus on transition economies.
Several studies have examined the impact of government support on SME performance in Malaysia. A study by Kamilah and Kassim (2021) found that government support positively affects SMEs' financial performance. The study found that government support in the form of grants, subsidies, and tax incentives had a significant positive impact on SMEs' profitability and growth. A study by Olugbola and Adenuga (2021) found that financial assistance positively affects SME performance by providing muchneeded capital to fund growth and development. However, the study also found that the impact of financial assistance on SME performance is dependent on the level of entrepreneurial orientation of the firm.
In addition to financial assistance, many governments provide non-financial support to SMEs, such as training and advisory services. Li, Li, and Li (2019) conducted a comparative study of the effects of digitalization on SME performance in developed and developing countries and found that non-financial support provided by governments, such as training on how to use digital technologies, positively impacts SME performance. Here are some of the key findings and contributions to the field, along with some recent citations: i. Government support positively affects SMEs' sustainable competitive performance. Several studies have found that government support can enhance SMEs' sustainable competitive performance by providing resources and information that enable firms to become more efficient, innovative, and competitive (e.g., Li, Li, & Li, 2019; Yang & Li, 2020). ii.
The type and quality of government support matter. Studies have highlighted the importance of the type and quality of government support for SMEs' sustainable competitive performance. For example, financial support, such as grants or loans, can be helpful, but non-financial support, such as training and advisory services, can be equally or more beneficial (e.g., Chen & Chen, 2019; Tran, Nguyen, & Vu, 2020). iii.
Institutional factors, such as government policies and regulations, also influence SMEs' sustainable competitive performance. Studies have suggested that institutional factors, such as government policies and regulations, can affect SMEs' sustainable competitive performance by creating an enabling environment for entrepreneurship and innovation (e.g., Olugbola & Adenuga, 2021). iv.
The impact of government support on SMEs' sustainable competitive performance is mediated by factors such as firm size, industry, and ownership structure. Researchers have shown that the impact of government support on SMEs' sustainable competitive performance can vary depending on factors such as firm size, industry, and ownership structure (e.g., Hiebl, Fink, & Grünwald, 2019; Vu & Nguyen, 2021) Despite their significant contributions to the economy, SMEs in transition economies face several challenges that limit their growth and competitiveness. These include inadequate access to finance, weak institutional frameworks, limited managerial and technical skills, and insufficient market information (Gogokhia et al., 2021; Mohammadi & Mehrizi-Sani, 2021). To overcome these challenges, various government initiatives and donor-funded programs have been implemented to support SMEs' development, including the provision of financial assistance, business incubators, and training programs.

SMEs Contribution to Malaysia Economy
In conclusion, SMEs play a crucial role in promoting economic growth, employment, and innovation in transition economies. However, they face numerous challenges that limit their growth and competitiveness, and concerted efforts are needed to support their development. Governments and other stakeholders should implement policies and programs that facilitate access to finance, build institutional capacity, and enhance managerial and technical skills to promote SMEs' growth and competitiveness in transition economies.

Sustainable competitive performance
Sustainable competitive performance (SCP) refers to a firm's ability to achieve and maintain a competitive advantage over its rivals for an extended period while simultaneously taking into consideration environmental and social concerns. SCP is an important construct for firms as it can enhance their long-term profitability and sustainability. Several dimensions contribute to SCP, and this review highlights the latest research in this area.
One critical dimension that impacts SCP is innovation. Chen  In conclusion, SCP is a multifaceted construct that requires firms to consider several dimensions to achieve and maintain a competitive advantage sustainably. Innovation, supply chain management, social responsibility, corporate governance, and IT are critical dimensions that firms must consider to enhance SCP. Firms that effectively incorporate these dimensions into their strategy can improve their SCP and achieve long-term profitability and sustainability.

PROBLEM STATEMENT
Furthermore, the government"s financial supports promote the SME sector to expand its operation to the international level; it can increase the SME"s performance and significantly contribute to economic growth (Clement & Hansen, 2003). Lee (2007) suggested that firm performance is significantly dependent on the political and government ties in emerging economies and a firm can gain sustainable production. Moreover, top management, which has strong political and government relationships, can quickly gain a sustainable competitive advantage in the turbulent market (Li, Meng, Wang, & Zhou, 2008).
Nevertheless, due to some governement policies, SMEs face a lot of challenges that became a barrier such as lack of government subsidies, incentives, and taxes in emerging economies. To bridge the above challenges of SMEs, the current study is conducted because before this there was no such literature thatunderlines the current challenges in emerging economies.

FRAMEWORK& HYPOTHESIS DEVELOPMENT
H1: Government support has positive influence on SMEs" sustainable competitive performance.

RESEARCH METHODOLOGY 4.1 Research design
This study relies on small-and-medium-sized enterprises at Perlis were registered under SMECorp. This section will discuss the research design and approach for this study. This study will use a quantitative research design to explore the impact of government support on SMEs' sustainable competitive performance in transitioning economies. The survey questionnaire will comprise three sections: government support, sustainable competitive performance, and firm characteristics.

4.2
Sampling and data collection A purposive sampling technique will be used to select SMEs operating and the criteria for inclusion in the study are SMEs that have been operating for at least three years and have received some form of government support in the past. The sample size will be determined using the formula developed by Krejcie and Morgan (1970), and a sample size of 180 SMEs will be selected. Data will be collected using an online survey questionnaire. The survey questionnaire will be pre-tested among a sample of 30 SMEs to ensure its reliability and validity. The final survey questionnaire will be administered to the selected SMEs, and data will be collected over a period of four weeks.

Data Analysis
The data collected will be analyzed using descriptive statistics and inferential statistics. Descriptive statistics such as mean, standard deviation, and frequency distributions will be used to describe the sample characteristics. Inferential statistics such as correlation and regression analysis will be used to test the research hypotheses. The research design and approach for this study will enable us to explore the impact of government support on SMEs' sustainable competitive performance in transitioning economies. The results of this study will provide insights into the role of government support in promoting SME performance to Malaysia economic growth and development.

FINDING 5.1 Reliability Analysis
Data were first analyzed to ensure instrument quality by convergent and discriminant validity. Applying SPSS, the principal components analysis (PCA) was conducted to measure the underlying dimension associated with 30 items. The constructs validity was measured using Bartlett"s test of Sphericity and Kaiser-Mayer-Olkin (KMO) measure of the sampling adequacy of individual variables. KMO overall should be 0.6 or over to perform factor analysis (Ozdamar, 2002). This data analysis demonstrates on Table 1 that measurements possessed an acceptable convergent validity. The composite reliability of the measurements must reach 0.6 or above (Fornell & Larcker, 1981). According to the Cronbach alpha test, the total scales of reliability varies from 0.832 to 0.927 (Table 3)
.024 Accepted Table 4 show the hypotheis result for this study. The entire paths were significant at p < 0.000. Government support has positively influences on SMEs" sustainable competitive performance. Therefore this hypothesis (H1) accepted at p < 0.000. Thestudy showed that Employment no positively influences on SMEs" sustainable competitive performance. H2 hypothesis is not accepted at p > 0.474. Results also indicated that for H3;poverty reduction positive influnce SMEs" sustainable competitive performance. Hence H3 hypothesis is accepted at p < 0.049 Furthermore, findings exposed economic development has a significant and direct impacton SMEs" sustainable competitive performance. The result shows thatp < 0.024) and supported hypothesis H4.

DISCUSSION & IMPLICATION 6.1 Discussion
The study on the impact of government support on SMEs in transitioning economies has practical and policy implications for different stakeholders. Practically, the findings of this study suggest that SMEs in transitioning economies can achieve sustainable competitive performance by receiving appropriate government support. This support can be in the form of financial assistance, capacity building, market access, and technology transfer. Therefore, SMEs can leverage government support to improve their competitiveness and contribute to the economic growth of their countries. The results indicated that the government support, poverty reduction and economic development has positively influences on SMEs" sustainable competitive performance. This is in line with previous studies bLi, Li, & Li, 2019; Yang & Li, 2020. Therefore, the SMEs at Perlis is suggested to provide more job opportunities to the community to improve the national economy through the business that is conducted.

Practical implications
The key objective of this study is to show how government support can enhance the sustainable of competitive advantage on SMEs in transitioning economies has practical implications for different stakeholders. Practically, the findings of this study suggest that SMEs at Perlis can achieve sustainable competitive performance by receiving appropriate government support. This support can be in the form of financial assistance, capacity building, market access, and technology transfer. Therefore, SMEs can leverage government support to improve their competitiveness and contribute to the Perlis economic growth.
Moreover, SMEs can use the results of this study to identify areas where government support can be most effective. For instance, the study highlights the importance of financial support in enhancing SMEs' performance. SMEs can use this insight to identify appropriate funding sources and seek government assistance in accessing these resources.

CONCLUSION
This study examines the effect of government support on sustainable competitive performance among SMEs at Perlis. In emerging economies, mostly organizational top managers and owners are trying to connect networking his roots at the national and international levels, but still,the organization faces a lack of government support. This study also finds out about the employment opportunities, poverty reduction, and economic development that exist as a result of the contribution of SMEs to the national economy.