Exporting vs. Domestic SMEs in Malaysia

Abstract

The extent of SMEs’ technology adoption in Malaysia has not been clearly reported. This chapter provides an initial snapshot onto the various types of technological tools adopted by exporting and domestic SMEs in Malaysia. It also highlights the differing perceptions held by both exporting and domestic SMEs on certain issues related to the technological, organizational, and environmental contexts that the firms operate in as well as the differences in the owners’ characteristics for the two types of SMEs. Through a survey of 540 manufacturing and manufacturing-related services SMEs, the findings revealed that exporting firms generally have higher technology adoption rates than domestic firms. Significant differences between exporting and domestic firms were also found in their perceptions on issues like perceived relative advantage, competitive advantage, information intensity, as well as in the owners’ characteristics, such as innovativeness. Implications drawn from the findings are duly discussed in the chapter.