Fariza Hashim

SMEs’ impediments and developments in the internationalization process

Purpose – The purpose of this paper is, first, to examine the factors that impede SMEs in their internationalization process; second, to analyse the effectiveness of the government support and development programs of the SMEs; and finally, to examine the networking efforts by Malaysian SMEs at the industrial level. Design/methodology/approach – This study is descriptive in nature. Secondary data are the main source of data collection. Data were obtained from reliable and authoritative sources such as SME Corp, government agency publications, newspapers, international business journals and other related periodicals. A meta-analysis technique was used in this study where results from previous and current studies on similar topics were critically reviewed. Findings – This study found that Malaysian SMEs faced external and internal impediments in their efforts of expanding their operations internationally. Externally there is a lack of skilled workers available in the domestic labour market; increased competi...

Firms' absorptive capacity and technology compatibility in transferred technology

Absorptive capacity and technological compatibility are among the many elements that facilitate the transference of technology. However, studies that discussed absorptive capacity overlooked most elements that have been suggested to comprise the construct. In addition, studies on technology transfer have also not integrated both the firms capacity to absorb the technology and the appropriateness of the technology, even though both are seen as important to ensure the success of technology transfer. This study used data collected from Malaysian manufacturing firms to determine the relationship between absorptive capacity, technological compatibility and technology transfer performance. The results in multiple regression tests indicated that these variables contributed in explaining the transfer stage.

Restoring service quality, satisfaction and loyalty in higher education institutions through market orientation

This study investigates the effect of being market oriented on service quality perceptions and its relationship with customer satisfaction and loyalty. Specifically, this paper examines as to how market orientation influences performance from the customers perspective in the private higher education institutions (HEIs). Based from the response of 147 respondents comprising of postgraduate students in Malaysian private HEIs, the findings showed that market orientation influences service quality that subsequently influences customer satisfaction and loyalty. The partial effect of service quality mediating the market orientation and customer satisfaction relationship is also discussed. Finally, the implications of the research are discussed as are the limitations.

Internationalisation process of Malaysian firms: the mediating effects of motivation and network

This research examines the internationalisation process of large Malaysian firms by focusing on identifying the effect of mediating forces between internationalisation advantage and internationalisation intensity. A total of 100 Malaysian firms participated in this research. Using regression and hierarchical multivariate regression analyses (HMRAs), researchers found the mediating effect of motivation on internationalisation advantage and internationalisation intensity, which indicated a full mediation effect. The results further indicated that network has partial mediation effect on the relationship between internationalisation advantage and internationalisation intensity. The theoretical and practical implications of these findings were also discussed.

Early internationalisation of emerging MNEs: case of Top Glove Malaysia

Internationalisation is no longer a choice but is a necessity that enables firms to grow and expand competitively. This study aims to assess the process of internationalisation of a Malaysian local firm which started as a new venture and then expanded globally and drastically to ensure its foothold in the global market. Top Glove Corporation Ltd is among the pioneers from local companies that internationalise by capitalising its limited resources and exploiting its exports and other international operations abroad. This study is qualitatively conducted where content analysis was used to examine its internationalisation process. The findings indicate that the company was successful in its early internationalisation despite limited resources and capabilities thus challenging the existing internationalisation models in the literature. The company represents a truly born global company from the emerging country of Malaysia.

The moderating role of firms’ structure during the implementation stage of technology transfer in Malaysia

Technology transfer helps countries to benefit from advanced technology without having to make huge investment in R&D. However, the transferred technology can work well only with appropriate absorptive capacity. In addition, a firm’s structure plays a very important role in the relationship between absorptive capacity and technology transfer as it dictates the flow of information and work assignment. This study attempts to fill the gap left by previous studies as they tend to overlook the role of a firm’s structure in moderating the relationship between absorptive capacity and the transferred technology. The study was conducted at electrical and electronic manufacturing firms in Malaysia. A multiple hierarchical regressions method was used to identify the moderating effect. The findings suggest that decision-making and formalisation was a pure moderator in the absorptive capacity and technology transfer performance relationship. Hence, management should consider the firm’s structure before they embark on transferring any technologies.

Springboard internationalisation as a growth strategy for emerging countries MNEs: the case of Malaysia

Emerging countries’ MNEs have become significant players in the global market and their success is attributed to internationalisation strategies. In spite of entering the global market at a later stage, these firms have aggressively involved at their initial stage. Their acceleration in international expansion has challenged the MNEs’ internationalisation as discussed in the conventional theories. This paper attempts to shed light on the international expansion by emerging markets MNEs and highlight their differences in the internationalisation theories. Based on an internationalisation model developed by previous scholars, this paper qualitatively analyses several Malaysian MNEs that have expanded using various modes and strategies. The paper focuses on the view of springboard international expansion and the processes that they went through despite their immature presence in the global market. The findings indicate that the motives and drivers of Malaysian MNEs differ from MNEs in other larger emerging countries like India and China.

Dream or doom dome

Subject area – International management control and organisational behaviour.Study level/applicability – This case is suitable for final year undergraduate and Masters students as well as for the general practitioner. It is suitable for the university course program and for in‐company training seminars. For company training seminars, the human resources department and finance would most probably benefit from the discussion of the case.Case overview – This case was about a company that was eager to expand its business internationally as it gains success in the home market. Having being entrusted by the company CEO to lead the project, the enthusiastic “project champion” lavishly spent the company investments with minimal control from the parent company.Expected learning outcomes – After carrying out this exercise, students are expected to be able to: first, decide a firm mode of entry, scale of entry and strategic commitment; second, determine the market potential of a particular business venture; third, ...

What's cooking? Indonesia's kerosene to LPG conversion program

Subject area Strategic market entry; international business; marketing. Study level/applicability MBA/MA in management; international business; postgraduate. Case overview This case is based on a real-life situation of an existing transnational firm contemplating to enter a new market in a developing country. It involves a gamut of issues ranging from firm-strategic market entry, competitive positioning, international marketing strategies (including international market segmentation) and international product lifecycle. These issues revolve on numerous theories namely theories on internationalization (motive, scope, process, scale and timing of entry) and globalization of markets (standardization versus adaptation). In the past, the market was heavily regulated and protected which makes market entry simply impossible. However, a change in government policy is opening up new opportunities for foreign providers to participate in the host country. Although the market potential is enormous, there are various factors that concern the firm in determining its market entry and marketing mix decision. Expected learning outcomes After carrying out this exercise, students are expected to be able to: evaluate a firms internal and external position in market expansion decision; assess a countrys attractiveness in terms of its potential, competitive intensity and entry barriers; identify and discuss the factors that influence firms marketing mix decision (standardize/adapt); and determine the firm market entry and the tactical decisions. Supplementary materials Teaching notes.

Knowledge acquisition and its determinants: Malaysian international alliance experience

Global competition forces firms to be innovative in sustaining their competitiveness. Knowledge is one of the key strategic assets that enable firms to do so particularly firms from developing countries. Engaging in international alliances provides chances for firms to learn and acquire knowledge from the partner. This study identified five variables that determine the knowledge acquisition process from their counterpart: learning capacity, experience, goals, partners involvement and accessibility influence the learning process. Hypotheses were tested on 65 Malaysian firms through interviews and maximum likelihood technique was used to analyse the data. The results confirm the importance of the variables in facilitating and expediting the process of acquiring knowledge. The critical components to the process are learning capacity, experience, partners involvement and accessibility of local partner to the knowledge required. Despite its significance in determining knowledge acquisition, the influence of goals in the knowledge-acquiring process is less critical than the other four.