An analysis of FDI: linkages and local firms capability (a case of manufacturing sector in Melaka) / Prof. Madya Dr. Abdul Halim Mohd Noor, Rosfadzimi Mat Saad and Mohd Saladin Abd Rasool

One key element for firms especially the small and medium enterprises (SMEs) to increase their competitiveness is the ability to form linkages with other firms either vertically or horizontally. This paper is based on a data set of forty foreign manufacturing firms operating in industrial estates in...

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Main Authors:	Mohd Noor, Prof. Madya Dr. Abdul Halim, Mat Saad, Rosfadzimi, Abd Rasool, Mohd Saladin
Format:	Research Reports
Language:	English
Published:	Institute of Research, Development and Commercialization (IRDC) 2004
Online Access:	http://ir.uitm.edu.my/id/eprint/18147/ http://ir.uitm.edu.my/id/eprint/18147/2/LP_ABDUL%20HALIM%20MOHD%20NOOR%20IRDC%2004_5.pdf

id	uitm-18147
recordtype	eprints
spelling	uitm-181472019-02-19T07:30:56Z http://ir.uitm.edu.my/id/eprint/18147/ An analysis of FDI: linkages and local firms capability (a case of manufacturing sector in Melaka) / Prof. Madya Dr. Abdul Halim Mohd Noor, Rosfadzimi Mat Saad and Mohd Saladin Abd Rasool Mohd Noor, Prof. Madya Dr. Abdul Halim Mat Saad, Rosfadzimi Abd Rasool, Mohd Saladin One key element for firms especially the small and medium enterprises (SMEs) to increase their competitiveness is the ability to form linkages with other firms either vertically or horizontally. This paper is based on a data set of forty foreign manufacturing firms operating in industrial estates in Malacca. The data provide statistical information such as firm's profile, production capability, nature of technology employed, and linkages developed. Linkages occur whenever any particular firms affects the amount and/or conditions of supply of, or demand for, other goods and services by another firm. It is commonly used to gauge the capability for firms to compete which is regarded as vital today with the advent of globalization and trade liberalization as domestic firms in industrializing countries face a daunting task in meeting head on with their global competitors. This paper assesses the two main types of linkages, namely developmental linkages and dependent linkages which are used by economist to proxy the level of competitiveness and capability of firms. Specifically, this study would like to explore the developmental linkages which is essential in developing the basic platform of a long term relationship between foreign multinationals with local suppliers. Using variables such as source of technology as a proxy to the level of linkages and independent variables such as exports value, research and development (R & D) expenditure, number of workers, years in operation and government incentives received, the study utilizes the simple regression analysis using ordinary least square (OLS) method to estimate the coefficients. This study found evidence that presence of foreign firms have a positive impact on local SMEs' performance. Increasing number of technical staff and increasing involvement of local partners and firms were among the significant variables employed to explain the reasons why firms source local components with higher technical requirements (as compared to local raw materials). Institute of Research, Development and Commercialization (IRDC) 2004 Research Reports NonPeerReviewed text en http://ir.uitm.edu.my/id/eprint/18147/2/LP_ABDUL%20HALIM%20MOHD%20NOOR%20IRDC%2004_5.pdf Mohd Noor, Prof. Madya Dr. Abdul Halim and Mat Saad, Rosfadzimi and Abd Rasool, Mohd Saladin (2004) An analysis of FDI: linkages and local firms capability (a case of manufacturing sector in Melaka) / Prof. Madya Dr. Abdul Halim Mohd Noor, Rosfadzimi Mat Saad and Mohd Saladin Abd Rasool. [Research Reports] (Unpublished)
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Teknologi MARA
building	UiTM Institutional Repository
collection	Online Access
language	English
description	One key element for firms especially the small and medium enterprises (SMEs) to increase their competitiveness is the ability to form linkages with other firms either vertically or horizontally. This paper is based on a data set of forty foreign manufacturing firms operating in industrial estates in Malacca. The data provide statistical information such as firm's profile, production capability, nature of technology employed, and linkages developed. Linkages occur whenever any particular firms affects the amount and/or conditions of supply of, or demand for, other goods and services by another firm. It is commonly used to gauge the capability for firms to compete which is regarded as vital today with the advent of globalization and trade liberalization as domestic firms in industrializing countries face a daunting task in meeting head on with their global competitors. This paper assesses the two main types of linkages, namely developmental linkages and dependent linkages which are used by economist to proxy the level of competitiveness and capability of firms. Specifically, this study would like to explore the developmental linkages which is essential in developing the basic platform of a long term relationship between foreign multinationals with local suppliers. Using variables such as source of technology as a proxy to the level of linkages and independent variables such as exports value, research and development (R & D) expenditure, number of workers, years in operation and government incentives received, the study utilizes the simple regression analysis using ordinary least square (OLS) method to estimate the coefficients. This study found evidence that presence of foreign firms have a positive impact on local SMEs' performance. Increasing number of technical staff and increasing involvement of local partners and firms were among the significant variables employed to explain the reasons why firms source local components with higher technical requirements (as compared to local raw materials).
format	Research Reports
author	Mohd Noor, Prof. Madya Dr. Abdul Halim Mat Saad, Rosfadzimi Abd Rasool, Mohd Saladin
spellingShingle	Mohd Noor, Prof. Madya Dr. Abdul Halim Mat Saad, Rosfadzimi Abd Rasool, Mohd Saladin An analysis of FDI: linkages and local firms capability (a case of manufacturing sector in Melaka) / Prof. Madya Dr. Abdul Halim Mohd Noor, Rosfadzimi Mat Saad and Mohd Saladin Abd Rasool
author_facet	Mohd Noor, Prof. Madya Dr. Abdul Halim Mat Saad, Rosfadzimi Abd Rasool, Mohd Saladin
author_sort	Mohd Noor, Prof. Madya Dr. Abdul Halim
title	An analysis of FDI: linkages and local firms capability (a case of manufacturing sector in Melaka) / Prof. Madya Dr. Abdul Halim Mohd Noor, Rosfadzimi Mat Saad and Mohd Saladin Abd Rasool
title_short	An analysis of FDI: linkages and local firms capability (a case of manufacturing sector in Melaka) / Prof. Madya Dr. Abdul Halim Mohd Noor, Rosfadzimi Mat Saad and Mohd Saladin Abd Rasool
title_full	An analysis of FDI: linkages and local firms capability (a case of manufacturing sector in Melaka) / Prof. Madya Dr. Abdul Halim Mohd Noor, Rosfadzimi Mat Saad and Mohd Saladin Abd Rasool
title_fullStr	An analysis of FDI: linkages and local firms capability (a case of manufacturing sector in Melaka) / Prof. Madya Dr. Abdul Halim Mohd Noor, Rosfadzimi Mat Saad and Mohd Saladin Abd Rasool
title_full_unstemmed	An analysis of FDI: linkages and local firms capability (a case of manufacturing sector in Melaka) / Prof. Madya Dr. Abdul Halim Mohd Noor, Rosfadzimi Mat Saad and Mohd Saladin Abd Rasool
title_sort	analysis of fdi: linkages and local firms capability (a case of manufacturing sector in melaka) / prof. madya dr. abdul halim mohd noor, rosfadzimi mat saad and mohd saladin abd rasool
publisher	Institute of Research, Development and Commercialization (IRDC)
publishDate	2004
url	http://ir.uitm.edu.my/id/eprint/18147/ http://ir.uitm.edu.my/id/eprint/18147/2/LP_ABDUL%20HALIM%20MOHD%20NOOR%20IRDC%2004_5.pdf
first_indexed	2023-09-18T22:59:52Z
last_indexed	2023-09-18T22:59:52Z
_version_	1777418101099331584

An analysis of FDI: linkages and local firms capability (a case of manufacturing sector in Melaka) / Prof. Madya Dr. Abdul Halim Mohd Noor, Rosfadzimi Mat Saad and Mohd Saladin Abd Rasool

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