The Internationalisation of Malaysian Manufacturing Small and Medium Enterprises

Please do not remove this page The internationalisation of Malaysian manufacturing small and medium enterprises Tan, Lin Lah https://researchportal.scu.edu.au/discovery/delivery/61SCU_INST:ResearchRepository/1267229610002368?l#1367374210002368 Tan, L. L. (2008). The internationalisation of Malaysian manufacturing small and medium enterprises [Southern Cross University]. https://researchportal.scu.edu.au/discovery/fulldisplay/alma991012821740502368/61SCU_INST:Research Repository Southern Cross University Research Portal: https://researchportal.scu.edu.au/discovery/search?vid=61SCU_INST:ResearchRepository [email protected] Open Downloaded On 2021/09/29 21:30:12 +1000 Please do not remove this page THE INTERNATIONALISATION OF MALAYSIAN MANUFACTURING SMALL AND MEDIUM ENTERPRISES TAN, LIN LAH BCom (ANU), MPP (NUS) THIS THESIS IS SUBMITTED FOR THE DEGREE OF DOCTOR IN BUSINESS ADMINISTRATION SOUTHERN CROSS UNIVERSITY AUSTRALIA OCTOBER 2008 DECLARATION I certify that the work presented in this thesis is, to the best of my knowledge and belief, original, except as acknowledged in the text, and that the material has not been submitted, either in whole or in part, for a degree at this or any other university. I acknowledge that I have read and understood the University's rules, requirements, procedures and policy relating to my higher degree research award and to my thesis. I certify that I have complied with the rules, requirements, procedures and policy of the University (as they may be from time to time). -------------------------------------------------- Tan Lin Lah Date: i ACKNOWLEDGEMENT More than a decade ago, a silent wish was made that perhaps some day He will provide the opportunity, „right timing‟ and resources to embark on a doctoral path. The wish, albeit slow to progress, has „blossomed‟ with the support, encouragement and dedication of many around me. My late father, Tan Chin Choon, who believed in education, regardless of gender. My mother, Mdm. Lee Saw Keow, my siblings and their families, Kee Tat & Huai Yaw, Zhi Wei, Zhi Yang, Zhi Ming; Luna & Ivan, Wern Xin and Lesa, who have always allowed me to be „different‟ and love me just the same. Dr Andy Woo, my supervisor, for his guidance, commitment and attention to detail. Prof. Dr. Selvanathan, who pushed me to do my Masters and now this DBA. I am grateful for his unceasing prodding, utter commitment to knowledge taking „root‟ in anyone desiring to learn and his comments as a friend and pod-supervisor. Staff of the Graduate College of Management, SCU and Unity College International for their assistance. The very many close friends, near and far, who supported me through this endeavour with their prayers, care and understanding. ii ABSTRACT This exploratory research identified the critical factors for the successful internationalisation of Malaysian manufacturing small and medium enterprises (SMEs) for contending with the challenges emerging from globalisation. Four research propositions, based on the identified research gaps, were tested by this research. The findings yielded new and useful insights on the research problem and six salient recommendations for consideration by the Malaysian Government and the manufacturing SMEs. First, for the Malaysian Government to critically review its support policies for SMEs. The findings revealed that several SMEs remained unaware of the available support policies, programmes and measures. This suggests that the Government devote more attention on promoting and publicising them. Second, a perception by some export manufacturing SMEs that they were not eligible for support from the Government. This requires the Government to reassure them that its policies are aimed at assisting all SMEs and are not discriminatory. Third, the application procedures and the delivery systems which appeared to act against the SMEs for securing Governmental support. These pinpointed the need for loan and grant applications to be made „applicant-friendly‟ and for the Government to critically review the delivery systems for SMEs support. iii Fourth, for the SMEs to be better equipped to successfully compete in the global „new economy‟. This requires them to move up the value chain, acquire international business skills, master global languages, form international linkages, participate in global supply chains and develop technological capabilities to produce high quality, innovative branded products. Fifth, to enhance management practices. This requires the hiring of competent staff, regardless of race, who understand the competitive landscape, know what their customers need and how their products can satisfy them. Sixth, to emphasise on corporate social responsibility (CSR) practices. This study recommends that SMEs fully appreciate the importance of CSR practices by engaging a diversified workforce; adopting environmental protection practices and enhancing employee well-being. Theory development was another important outcome of this research. The research findings permitted the construct of a modified international entrepreneurship model. Finally, it offered suggestions for further research. Keywords Research Problem Exploratory Research Research Issues Propositions SMEs Internationalisation Global Outlook CSR Practices Research and Development (R&D) Value Chain iv ABBREVIATIONS 8MP Eighth Malaysia Plan 9MP Ninth Malaysia Plan ADB Asian Development Bank AEC ASEAN Economic Community AFTA ASEAN Free Trade Agreement APEC Asia Pacific Economic Corporation ASEAN Association of South East Asian Nations BNM Bank Negara Malaysia (Central Bank of Malaysia) CSR Corporate Social Responsibility DOS Department of Statistics E-commerce Electronic Commerce E&E Electrical and Electronics EPU Economic Planning Unit EXIM Bank Export-Import Bank of Malaysia Berhad K-Economy Knowledge Economy K-Society Knowledge Society F&B Food and Beverage FDIs Foreign Direct Investments FMM Federation of Malaysian Manufacturers FTA Free Trade Agreement GATS General Agreement on Trade in Services GDP Gross Domestic Product v GLCs Government Linked Companies GOM Government of Malaysia ICT Information and Communications Technology ILO International Labour Organisation IMP2 Second Industrial Master Plan IMP3 Third Industrial Master Plan IT Information Technology MASSCORP Malaysia South-South Corporation Berhad MATRADE Malaysian External Trade Development Corporation MECD Ministry of Entrepreneurial and Cooperative Development MIDA Malaysia Industrial Development Authority MIDF Malaysian Industrial Development Finance Berhad MITI Ministry of International Trade and Industry MNCs Multinational Companies MNE Multinational Enterprises MNE Declaration Multinational Enterprises and Social Policy MOF Ministry of Finance MOSTI Ministry of Science, Technology and Innovation MPIC Ministry of Plantations, Industries and Commodity MTDC Malaysian Technology Development Corporation NPC National Productivity Centre OECD Organisation for Economic Cooperation and Development OTOP One Tambun One Product PEMUDAH The Special Taskforce to Facilitate Business R&D Research and Development vi RBV Resource Based View RM Ringgit Malaysia SCA Sustainable Competitive Advantage SMEs Small and Medium Enterprises SMI Small and Medium Industries SMIDEC Small and Medium Industries Development Corporation SMIDEX SMIDEC‟s Annual Showcase TNCs Transnational Corporations TRIMS Trade Related Aspects of Investment Measures TRIPS Trade Related Aspects on Intellectual Property Rights UN United Nations UNCTAD United Nations Conference for Trade and Development UNDP United Nations Development Programme UNIDO United Nations Industrial Development Organisation WTO World Trade Organisation vii TABLE OF CONTENTS Title Page Declaration ............................................................................................................. i Acknowledgement ........................................................................................................... ii Abstract .......................................................................................................... iii Abbreviations ............................................................................................................ v Table of Contents ........................................................................................................ viii List of Tables ......................................................................................................... xiv List of Figures ......................................................................................................... xvi CHAPTER 1 INTRODUCTION ........................................................................................ 1 1.1 Introduction ............................................................................................................ 1 1.2 The Research Problem ............................................................................................... 2 1.2.1 The Research Questions ..................................................................................... 2 1.2.2 The Research Objectives .................................................................................... 3 1.3 Background To The Research .................................................................................. 4 1.3.1 Justification And Research Contributions .......................................................... 7 1.3.2 Unit Of Analysis ................................................................................................. 8 1.4 Research Methodology

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