Economic performance and technological intensities of electronics firms in Johor: Does size matter?

Rajah Rasiah and Asokkumar Malakolunthu

International Journal of Technological Learning, Innovation and Development, 2010, vol. 3, issue 1, 47-66

Abstract: This paper examines size differences in productivity, and export and technological intensities, and the statistical relationships involving them in a sample of electronics firms in Johor, Malaysia. Although, large firms enjoyed higher labour productivity and overall technological intensity means than small and medium enterprises (SMEs) these differences disappear once controlled for other variables. Foreign firms dominating the large sample enjoying access to superior asset-specific advantages accounted for this difference against SMEs supplying large firms in Johor and Singapore. Process technology intensities are high in large firms who have overcome high labour turnovers to Singapore by deploying capital-intensive but deskilling machinery and equipment. Hence, SMEs show higher human resource and skills intensities than large firms in Johor.

Keywords: firm size; productivity; exports; technology; electronics industry; Johor; Malaysia; technological intensity; small and medium-sized enterprises; SMEs; large firms; foreign firms; Singapore. (search for similar items in EconPapers)
Date: 2010
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