Abstract
Explores the behaviour of transnational corporations (TNCs) in Malaysian
manufacturing firms in relation to employment absorption, human capital
formation and technological change, based on a survey of 60 firms
randomly selected within the major manufacturing establishments in
Malaysia. Argues that TNCs exert an influence in promoting employment,
training and innovation and adopt a much more proactive policy towards
HRD than the local firms in Malaysia. However, their reluctance to
participate and invest substantially in local R&D could result in a
gradual reduction of technology flow and stifle the development of
domestic innovative capacity. Policy measures are therefore required to
induce TNCs to undertake greater R&D activities in Malaysia, and such
measures should be conceived in the broader context of the indigenous
technological development policy of the country.
Subject
Organizational Behavior and Human Resource Management,Applied Psychology
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