Abstract:
Small and medium sized sector is increasingly recognized as the prime vehicle for economic development in both developed and developing nations. In most of the countries in the world, the level of economic dependence on Small and Medium Enterprises (SME) has increased in recent years. Therefore, every government of a country emphasizes more the importance of the SME sector and at the same time this scenario has also led the government to place emphasis on enterprise assistance programs and policies to develop this sector. However, the effectiveness of these policies and programs depend on a thorough understanding of owners/managers and how they operate. Particularly, within this context owner-managers? personal values are considered very important. The literature in this area shows that a considerable attention has been devoted to the personal traits of owner-managers/entrepreneurs of Small and Medium-Sized Enterprises (SMEs). Nonetheless less attention has been given to their values, particularly outside of a western context. However, as values are instrumental in the decision making and have implications for the owner-manager?s behavior and approach to managing the organization, the aim of this research is to empirically investigate the relationship between personal values and the business performance of SMEs. The research also fills gaps in empirical research on values and business success in SMEs within the Asian context. Data for the research were obtained from a mail survey using a questionnaire distributed to owner-managers of SMEs of the manufacturing industry in a developing Asian country - Sri Lanka. Analyzing data employing non-parametric statistical techniques (Kruskal-Wallis test) it is found that there is a significant relationship between the personal values of owner-managers and business performance of SMEs. The findings and implications of this study could provide some useful insights to fill the gap in contemporary research and contribute to literature which can be useful to owner-managers and managers of SMEs.