TECHNOLOGICAL CAPABILITIES AS A KEY ENABLER FOR INTERNATIONALIZATION AMONG MALAYSIAN SMES IN FOOD AND BEVERAGE MANUFACTURING SECTORS

Year 2020, Proceedings of The Third Economics, Business And Organization Research (EBOR) Conference, 325 - 336, 31.12.2020

Hayda Abu Hasan Sathiswaran Uthamaputhran

https://izlik.org/JA36EY84NR

Abstract

The main objective of this paper is to study technological capabilities as a key enabler for internationalization among Malaysian SMEs in food and beverage (F&B) manufacturing sectors. The Malaysian food and beverage (F&B) industry is a fast-growing industry, dominated by small and medium scale companies (SMEs) and has a significant contribution to Malaysian economy with revenues amounting to US$34 million in 2018 and annual growth rate of 7.6%. In order to penetrate and sustain in both domestic and international market, SMEs need to create a long-term strategy for competitive advantage through product innovation and technological capabilities. Technological capabilities play an important role in determining the success of new ventures or SMEs because it enable companies to gain market acceptance and achieve long-term competitive advantage through continuous innovation in improving existing products and/or creating new products in the market. In the current world, companies will have difficulties in penetrating the market without the application of technological capabilities. Various studies have been done on how the practice of technological capabilities is related to the business performance but not many researches focus on technological capabilities as a key enabler during the internationalization process and how it will help SMEs in penetrating the international market. Drawing on the existing literature review, we are going to conduct a qualitative research model by interviewing 6 – 12 F&B manufacturing companies in which technological capabilities not only influence firm performance but to identify its role as the key enabler in the internationalization process for SMEs to penetrate the international market. The finding of this research is going to contribute to the development of F&B industries in developing countries especially in Malaysia. It will provide important information that will be useful for Malaysian F&B industries in penetrating the international market and it will contribute to the body of internationalization knowledge and international enterpreneurship.

Keywords

Food and Beverages , Malaysian SMEs , Technological Capabilities , Internationalization

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