The Network Diversity Effect on The Performance of SME Construction Firms in Malaysia

This article highlights some issues and looks at how SMEs are performing in the construction industry, which is declining in 2021. It suggests that the performance of construction companies is either declining or trending in the wrong direction, which is concerning for the Malaysian economy and needs to be looked into. This report highlights the gap in the literature that motivated this investigation. Previous studies have looked into the impact of entrepreneurial resources on an organization's performance, and their findings shows inconsistency between firms' performance and network diversity. Quantitative research approach with random sampling method was organised, 168 samples of CIDB-registered SME construction firms were analysed to study the effect of network diversity on the organizational performance of SME construction firms. The research proposal is offered based on the gaps discovered. It was found that the efficacy of organizational performance of small and medium-sized construction firms is significantly correlated with network diversity, as exemplified by virtual and closed networks, future research should explore further on the construction firm's growth factors.