Commenced in January 2007
Paper Count: 30663
The Mediating Effect of MSMEs Export Performance between Technological Advancement Capabilities and Business Performance
Abstract:The aim of this study is to empirically investigate the mediating impact of export performance (EP) between technological advancement capabilities and business performance (BP) of Malaysian manufacturing micro, small and medium sized enterprises (MSME’s). Firm’s technological advancement resources are hypothesized as a platform to enhance both exports and BP of manufacturing MSMEs in Malaysia. This study is twofold, primary it has investigated that technological advancement capabilities helps to appreciates main performance measures noted in terms of EP and Secondly, it investigates that how efficiently and effectively technological advancement capabilities can contribute in overall Malaysian MSME’s BP. Smart PLS-3 statistical software is used to know the association between technological advancement capabilities, MSME’s EP and BP. In this study, the data was composed from Malaysian manufacturing MSME’s in east coast industrial zones known as the manufacturing hub of MSMEs. Seven hundred and fifty (750) questionnaires were distributed, but only 148 usable questionnaires are returned. The finding of this study indicated that technological advancement capabilities helps to strengthen the export in term of time and cost efficient and it plays a significant role in appreciating their BP. This study is helpful for small and medium enterprise owners who intend to expand their business overseas and though smart technological advancement resources they can achieve their business competitiveness and excellence both at local and international markets.
Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1109880Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 1408
 Baldegger, R. J., & Schueffel, P. E. (2009). Measuring the Performance of International SMEs – A Scoping Study. Retrieved from http://www1.kmu.unisg.ch /rencontres/Renc2010/Topics_2010/C/Rencontres_2010_Topic_C_Bald egger_Schueffel_f.pdf.
 Shuman, J. C. and Seeger, J. A. (1986). The Theory and Practice of Strategic Management in Smaller Rapid Growth Firms, American Journal of Small Business, 11(1), 7–18.
 Knight, G., Madsen, T. K., & Servais, P. (2004). An inquiry into bornglobal firms in Europe and the USA. International Marketing Review, 21(6), 645–665. Retrieved from http://www.emeraldinsight.com/10.1108/02651330410568060.
 Chelliah, S., Sulaiman, M., & Pandian, S. (2010). The Determinants of Internationalization of Small and Medium Enterprises ( SMEs ): A Case in Malaysia. World Applied Sciences Journal, 10(10), 1202–1215.
 Nik Ab Halim, N. A., & Zain, M. S. N. (2011). The Internationalization Theory and Malaysian Small Medium Enterprises ( SMEs ). International Journal of Trade, Economics and Finance, 2(4), 318–322.
 Dusoye, M., Mahadeo, M. J., & Rogbeer, M. A. A.(2013), Small Firm Internationalisation and Export Barriers : The case of Mauritius., ICITI 1–29.
 Kiran, V., Majumdar, M., & Kishore, K. (2013). Internationalization of SMEs : Finding A Way Ahead. American International Journal of Research in Humanities, Arts and Social Sciences., 2(1), 18–23.
 Ahmad, S. Z., Jabeen, F., & Khan, M. (2014). Entrepreneurs choice in business venture: Motivations for choosing home-stay accommodation businesses in Peninsular Malaysia. International Journal of Hospitality Management, 36, 31–40. Retrieved from http://linkinghub.elsevier.com/ retrieve/pii/S0278431913001114
 Shane, S. (2000). Prior knowledge and the discovery of entrepreneurial opportunities. Organization Science, 11(4), 448–469.
 McDougall, P. P. and Oviatt, B. M. (2000). International entrepreneurship: the intersection of two research paths. Academy of Management Journal, 43, 5, 902-906.
 Bhatti, M. A., & Kumar, D. (2012). Internationalization factors and entrepreneurial perception : Indication from Yemen SME’S. Far East Journal of Psychology and Business, 6(1), 1–21.
 Baldegger, R. J., and P. E. Schueffel. 2010. "An entrepreneurial perspective on SME internationalization." United States Association for Small Business and Entrepreneurship, Nashville, Tennessee, January 14- 17.
 Agarwal, S. P. (2007). Technology Capacity Building for Internationalization of SMEs. In National Workshop on “Sub-National Innovation System and Technology Capacity -Building Policies to Enhance Competitiveness of SMEs” (pp. 0–36). New Delhi: Indonesian Institute of Sciences (LIPI).
 Berisha Namani, M. (2009). The Role of Information Technology in Small and Medium Sized Enterprises in Kosova. In Fulbright Academy Conference (pp. 1–8). Pristina, Kosova, Kosova.
 Zhao, W., Watanabe, C., & Griffy-brown, C. (2010). Technology in Society Competitive Advantage in an Industry Cluster : The Case of Dalian Software Park in China. Technology in Society, 31(2), 139–149. Retrieved from http://dx.doi.org/10.1016/j.techsoc.2009.03.008
 Ismail, J. F. (2007). The Internationalization of Malaysian Firms into Foreign Markets.
 Li, L., Qian, G., & Qian, Z. (2012). The performance of small and medium-sized technology-based enterprises: Do product diversity and international diversity matter? International Business Review, 21(5), 941–956. Retrieved from http://linkinghub.elsevier.com/retrieve/pii/S09 69593111001843
 Radam, A., Abu, M. L., & Abdullah, A. M. (2008). Technical Efficiency of Small and Medium Enterprise in Malaysia : A Stochastic Frontier Production Model.
 Todd, P. R., & Javalgi, R. (Raj) G. (2007). Internationalization of SMEs in India: Fostering entrepreneurship by leveraging information technology. International Journal of Emerging Markets, 2(2), 166–180. Retrieved from http://www.emeraldinsight.com/10.1108/17468800710739234.
 Luo, Y., and R.L. Tung. (2007). International expansion of emerging market enterprises: A springboard perspective. Journal of International Business Studies, 38 (4), 481-498.
 Gungor, A., & Gupta, S. M. (1999). Issues in environmentally conscious manufacturing and product recovery : a survey, 36.
 Haron, D. H., Ismail, I., Yahya, S., Khalid, S. N. A., & Ganesan, Y. (2010). Cases of Successful Malaysian Small and Medium Enterprises (SMEs) : Does Business Advisory Service Help? Pulau Penang. Retrieved from http://www.mia.org.my/paib/survey/2010/SMEs_Case_Studies_Report_ 2010.pdf.
 Ciravegna, L., Lopez, L., & Kundu, S. (2013). Country of origin and network effects on internationalization: A comparative study of SMEs from an emerging and developed economy. Journal of Business Research, 67(5), 916–923. doi:10.1016/j.jbusres.2013.07.011
 Martin, L. M. and Matlay, H. (2001): Blanket approaches to promoting ICT in small firms: some lessons from the DTI ladder adoption model in the UK. Internet Research: Electronic Networking Applications and Policy, Vol. 11, No. 5, pp.399-410.
 Annavarjula M., Beldona S. (2000). Multinationality-Performance relationship: A review and conceptualization. International Journal of Organizational Analysis 8(1): 20.
 Ramaswamy K. (1992). Multinationality and performance: A synthesis and redirection Advances in International Comparative Management7: 241–267.
 Gleason, K. C., Madura, J., & Wiggenhorn, J. (2006). Operating characteristics, risk, and performance of born-global firms. International Journal of Managerial Finance, 2(2), 96–120. Retrieved from http://www.emeraldinsight. com/10.1108/17439130610657331
 Chelliah, S., Sulaiman, M., & Yusoff, M. Y. (2010). Internationalization and Performance : Small and Medium Enterprises (SMEs) in Malaysia. International Journal of Business and Management, 5(6), 27–37. Retrieved from www.ccsenet.org/ijbm.
 Shah, T. H., Javed, S., & Syed, S. (2013). Internationalization of SMES in Pakistan : A Brief Theoretical Overview of Controlling Factors. Journal of Managerial Sciences, 7(2), 213–230.
 Zhang, P., & London, K. (2013). Towards an Internationalized Sustainable Industrial Competitiveness Model. Competitiveness Review: An International Business Journal Incorporating Journal of Global Competitiveness, 23(2), 95–113. Retrieved from http://www.emeraldinsight. com/10.1108/10595421311305325
 Tallman, S., & Li, J. (1996). Effects of international diversity and product diversity on the performance of multinational firms. Academy of Management Journal, 39(1), 179–196.
 Nachum, L. (2004). Geographic and industrial diversification of developing country firms. Journal of Management Studies, 41, 273–294.
 Siddharthan, N., & Lall, S. (1982). Recent growth of the largest US multinationals. Oxford Bulletin of Economics and Statistics, 44(1), 1– 13.
 Ruigrok, W., & Wagner, H. (2003). Internationalization and performance: An organizational learning perspective. Management International Review, 43,63–73.
 Hitt, M. A., Hoskisson, R. E., & Kim, H. (1997). International diversification: Effects on innovation and firm performance in productdiversified firms. Academy of Management Journal, 40(4), 767-798.
 Lu, J. W., & Beamish, P. W. (2004). International diversification and firm performance: The S-curve hypothesis. Academy of Management Journal, 47, 598–608.
 Singla, C., & George, R. (2013). Internationalization and performance: A contextual analysis of Indian firms. Journal of Business Research, 66(12), 2500–2506. Retrieved from http://linkinghub.elsevier.com/retrieve/pii/S0148296313002324
 Contractor, F. (2007). Is international business good for companies? The evolutionary or multi-stage theory of internationalization vs. the transaction cost perspective. Management International Review, 47(3), 453–475.
 Lu, J. W., & Beamish, P. W. (2001). The internationalization and performance of SMEs. Strategic Management Journal, 22(6–7), 565– 586.
 Hsu, C. C., & Pereira, A. (2008). Internationalization and Performance: The Moderating Effects of Organizational Learning. Omega, 36(2), 188– 205. Retrieved from http://linkinghub.elsevier.com/retrieve/pii/S0305048306000958.
 O’Farrell, P.N., Wood, P.A., and Zheng, J. 1996. Internationalization of business services: an interregional analysis. Regional Studies 30(2):101– 118.
 Westhead, P., Wright, M., & Ucbasaran, D. (2001). The Internationalization of New and Small Firms: A Resource Base View. Journal of Business Venturing, 16, 333–358.
 Onkelinx, J., & Sleuwaegen, L. (2010). Internationalization Strategy and Performance of small and medium sized enterprises. Retrieved from http://www.ecb.europa.eu /home/pdf/research/compnet/Onkelinx_Sleuwaegen_2010.pdf??70770bd dd32c0cc251ce1ecad2df0c12.
 Teece, D. J., Pisano, G., Shuen, A. (1997). Dynamic Capabilities and Strategic Management. Strategic Management Journal, 18(7), 509–533.
 Zou, H., Liu, X., & Ghauri, P. (2010). Technology Capability and the Internationalization Strategies of New Ventures. Organization and Markets in Emerging Economies, 1(1), 100–119.
 Knight, G. A., & Cavusgil, S. T. (2004). Innovation, organizational capabilities, and the born-global firm. Journal of International Business Studies, 35(2), 124–141.
 Hill, C. (2009). Strategic Management Theory: An integrated approach.
 Kim Tuyen, T. (2013). Internationalisation of Finnish SMEs To Developing Markets, Case: Viope Ltd and Ho Chi Minh City, Vietnam. Lahti University of Applied Sciences.
 Gonzalez, R. K., & Cunha, S. K. da. (2012). Internationalization Process and Technological Capability Trajectory of Iguaçu. Journal of Technology Management & Innovation, 7(2), 117–130.
 Kraus, P.G. (2006) O Processo de Internacionalização das Empresas: o caso brasileiro. Revista de Negócios, Blumenau, 11 (2), 25-47.
 Sekaran, U., and R. Bougie. Research Methods for Business: A Skill Business Approach. 5th ed. New York: John Wiley & Sons Ltd, 2010. Print.
 Ahmed, A. Y. M. (2011). Internet Technology Factors, Quality Information Delivery and Supply Chain Information Performance in Malaysian Manufacturing Companies. University Utara Malaysia.
 Yusr, M. M. (2013). The Influence of TQM, Knowledge Management and Innovation Capability on Innovation Performance of Malaysian Manufacturing.
 Tabachnick, B. G., & Fidell, L. S. (1996). Using multivariate statistics (3rd ed.). New York: Harper Collins.
 Mucciarone, M. A., & Neilson, J. (2011). Performance Reporting in the Malaysian Government. Asian Academy of Management Journal of Accounting and Finance, 7(2), 35–77.
 Gefen, D., Straub, D. W., & Boudreau, M-C. (2000). Structural equation modeling and regression: Guidelines for research practice. Communications of the Association for Information Systems, 4– 7(August), 1–70.
 Deprey, B., Lloyd-Reason, L., & Ibeh, K. I. N. (2012). The Internationalisation of Small and Medium Sized Management Consultancies: An Exploratory Study of Key Facilitating Factors. The Service Industries Journal, 32(10), 1609–1621. doi:10.1080/02642069.2012.665899.
 S. Z. Ahmad, (2008). The Internationalization Process of Third World Multinational Firms: A Study of Malaysia’s Government-linked Corporations, International Journal of Business Research, vol. 8 (5), pp. 35-47.
 S. Z. Ahmad and P. J. Kitchen., (2008) Transnational corporations from Asian developing countries: The internationalization characteristics and business strategies of Sime Darby Berhad, International Journal of Business Science and Applied Management, vol. 3 (2), 2008, pp. 21-36.
 Asgari, M., Ahmad, S. Z., & Gurrib, M. I. (2010). Explaining the Internationalization Process of Malaysian Service Firms. International Journal of Trade, Economics and Finance, 1(1), 68–73.