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

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...

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Main Authors: Mohd Rosli Mohamad, Rajah Rasiah, Puvanesvaran Sanjivee
Format: Indexed Article
Published: Routledge 2011
Online Access:http://discol.umk.edu.my/id/eprint/7439/
http://www.tandfonline.com/doi/pdf/10.1080/19761597.2011.630504
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spelling my.umk.eprints.74392022-05-23T10:00:10Z http://discol.umk.edu.my/id/eprint/7439/ Production linkages, technological intensities and economic performance : small and medium enterprises in Malaysian manufacturing Mohd Rosli Mohamad Rajah Rasiah Puvanesvaran Sanjivee 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. Routledge 2011-12 Indexed Article NonPeerReviewed Mohd Rosli Mohamad and Rajah Rasiah and Puvanesvaran Sanjivee (2011) Production linkages, technological intensities and economic performance : small and medium enterprises in Malaysian manufacturing. Asian Journal of Technology Innovation, 19 (2). pp. 279-296. ISSN 2158-6721 http://www.tandfonline.com/doi/pdf/10.1080/19761597.2011.630504
institution Universiti Malaysia Kelantan
building Perpustakaan Universiti Malaysia Kelantan
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Malaysia Kelantan
content_source UMK Institutional Repository
url_provider http://umkeprints.umk.edu.my/
description 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.
format Indexed Article
author Mohd Rosli Mohamad
Rajah Rasiah
Puvanesvaran Sanjivee
spellingShingle Mohd Rosli Mohamad
Rajah Rasiah
Puvanesvaran Sanjivee
Production linkages, technological intensities and economic performance : small and medium enterprises in Malaysian manufacturing
author_facet Mohd Rosli Mohamad
Rajah Rasiah
Puvanesvaran Sanjivee
author_sort Mohd Rosli Mohamad
title Production linkages, technological intensities and economic performance : small and medium enterprises in Malaysian manufacturing
title_short Production linkages, technological intensities and economic performance : small and medium enterprises in Malaysian manufacturing
title_full Production linkages, technological intensities and economic performance : small and medium enterprises in Malaysian manufacturing
title_fullStr Production linkages, technological intensities and economic performance : small and medium enterprises in Malaysian manufacturing
title_full_unstemmed Production linkages, technological intensities and economic performance : small and medium enterprises in Malaysian manufacturing
title_sort production linkages, technological intensities and economic performance : small and medium enterprises in malaysian manufacturing
publisher Routledge
publishDate 2011
url http://discol.umk.edu.my/id/eprint/7439/
http://www.tandfonline.com/doi/pdf/10.1080/19761597.2011.630504
_version_ 1763303841764212736
score 13.211869

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