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Impact of information technology on SMEs survival rate in Malaysian manufacturing industry

This study focuses on the impact of information technology on the survival rate of small and medium enterprises (SMEs) in the manufacturing sector in Malaysia. It analyses the effects of information technology on survival of SMEs in 2000 and 2005, based on two separate groups of closed firms. The st...

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Main Author: Jamali, Mohammad Ali
Format: Thesis
Language:English
English
Published: 2010
Online Access:http://psasir.upm.edu.my/id/eprint/19478/1/FEP_2010_2_F.pdf
http://psasir.upm.edu.my/id/eprint/19478/
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spelling my.upm.eprints.194782013-03-29T09:12:40Z http://psasir.upm.edu.my/id/eprint/19478/ Impact of information technology on SMEs survival rate in Malaysian manufacturing industry Jamali, Mohammad Ali This study focuses on the impact of information technology on the survival rate of small and medium enterprises (SMEs) in the manufacturing sector in Malaysia. It analyses the effects of information technology on survival of SMEs in 2000 and 2005, based on two separate groups of closed firms. The study attempts to present a rational relationship between theories of firm survival and information technology. It sets out to show that while factors such as minimum efficient size, market and firms attributes, transaction cost, uncertainty, opportunism, information asymmetry and atmosphere, profitability and learning have an impact on the survival of SMEs, the effect of information technology is also significant. The Cox Proportional Hazard Regression Model is used for estimation of coefficients and survival functions. Evidence suggests that factors such as minimum economies of scale, productivity, technology usage, profits, R&D, location and capital-labor ratio affect the survival of SMEs. Of equal importance is the expenditure on information technology, which is said to have an impact on the viability of firms. By employing the model this study presents that information technology expenditure has positive effect on survival of SMEs in Malaysian manufacturing sector in this period. The model further shows that information technology plays a bigger role among the larger SMEs than the smaller ones. Thus, policy maker with regard to main finding of this study should consider some policy for promoting the IT among SMEs, especially larger ones in Malaysian manufacturing sector. Moreover, for increasing survival of SMEs, policy maker should encourage R&D among SMEs and concentrate on some sector, which have high entry rate. 2010-09 Thesis NonPeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/19478/1/FEP_2010_2_F.pdf Jamali, Mohammad Ali (2010) Impact of information technology on SMEs survival rate in Malaysian manufacturing industry. PhD thesis, Universiti Putra Malaysia. English
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
English
description This study focuses on the impact of information technology on the survival rate of small and medium enterprises (SMEs) in the manufacturing sector in Malaysia. It analyses the effects of information technology on survival of SMEs in 2000 and 2005, based on two separate groups of closed firms. The study attempts to present a rational relationship between theories of firm survival and information technology. It sets out to show that while factors such as minimum efficient size, market and firms attributes, transaction cost, uncertainty, opportunism, information asymmetry and atmosphere, profitability and learning have an impact on the survival of SMEs, the effect of information technology is also significant. The Cox Proportional Hazard Regression Model is used for estimation of coefficients and survival functions. Evidence suggests that factors such as minimum economies of scale, productivity, technology usage, profits, R&D, location and capital-labor ratio affect the survival of SMEs. Of equal importance is the expenditure on information technology, which is said to have an impact on the viability of firms. By employing the model this study presents that information technology expenditure has positive effect on survival of SMEs in Malaysian manufacturing sector in this period. The model further shows that information technology plays a bigger role among the larger SMEs than the smaller ones. Thus, policy maker with regard to main finding of this study should consider some policy for promoting the IT among SMEs, especially larger ones in Malaysian manufacturing sector. Moreover, for increasing survival of SMEs, policy maker should encourage R&D among SMEs and concentrate on some sector, which have high entry rate.
format Thesis
author Jamali, Mohammad Ali
spellingShingle Jamali, Mohammad Ali
Impact of information technology on SMEs survival rate in Malaysian manufacturing industry
author_facet Jamali, Mohammad Ali
author_sort Jamali, Mohammad Ali
title Impact of information technology on SMEs survival rate in Malaysian manufacturing industry
title_short Impact of information technology on SMEs survival rate in Malaysian manufacturing industry
title_full Impact of information technology on SMEs survival rate in Malaysian manufacturing industry
title_fullStr Impact of information technology on SMEs survival rate in Malaysian manufacturing industry
title_full_unstemmed Impact of information technology on SMEs survival rate in Malaysian manufacturing industry
title_sort impact of information technology on smes survival rate in malaysian manufacturing industry
publishDate 2010
url http://psasir.upm.edu.my/id/eprint/19478/1/FEP_2010_2_F.pdf
http://psasir.upm.edu.my/id/eprint/19478/
_version_ 1643827046416121856
score 13.211869

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