Production linkages, technological intensities and economic performance : small and medium enterprises in Malaysian manufacturing

Mohd Rosli Mohamad, and Rajah Rasiah, and Puvanesvaran Sanjivee, (2011) Production linkages, technological intensities and economic performance : small and medium enterprises in Malaysian manufacturing. [Indexed Article]

Official URL: http://www.tandfonline.com/doi/pdf/10.1080/1976159...

Abstract

This paper examines the impact of proximate domestic sourcing on productivity, exports andatechnological upgrading in small and medium enterprises (SMEs) in electric-electronics, textiles-garments, automotives and wood products industries in Malaysia. The results show that the intensity of backward subcontracting in the domestic economy was important in domestic and export intra-industry purchases. The significant technological variables were that less-integrated firms showed higher intensities than more-integrated firms. Econometric results show that technological intensity is positively correlated with productivity and exportorientation; this infers that technology matters in economic performance. The Probit estimations confirm that domestic supplies matter in labour productivity and exportintensities, but not in technological intensities. Low export-intensities need not discourage technological upgrading if inward-oriented firms operate as subcontractors supplying exporters. Governments should be encouraged to examine the nexus between suppliers, buyers and economic performance to stimulate national inter-firm production synergies to increase competitiveness by domestic firms.

Item Type: Indexed Article
Keywords: SME, Manufacturing, Production linkages, Technology
Faculty: Faculty of Entrepreneurship and Business
Deposited By: En. Pahmi Abdullah
Date Deposited: 09 May 2012 22:36
Last Modified: 07 Mar 2016 08:28
URI: http://umkeprints.umk.edu.my/id/eprint/217

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