Cost Management, Entrepreneurship and Competitiveness of Strategic Priorities for Small and Medium Enterprises☆

Abstract In this paper, we examine the relationship between cost management practices and competitiveness of strategic priorities of Small and Medium Enterprises (SMEs) in Malaysia. Based on resource based view, we argue that cost management is an important resource to develop competitiveness of strategic priorities. The results show cost management practices are positively associated with SME's competitiveness of strategic priorities. Further analysis demonstrates the relationship between cost management practices and SMEs’ competitiveness of strategic priorities is mediated by entrepreneurship capabilities. This study contributes to the understanding of the effect of cost management practices and entrepreneurship on SME's competitiveness of strategic priorities.