Technology diffusion through production process and the innovative capacity of local suppliers

Abd Rahim Jaguli, Marlin Marissa Malek, Mohd Rizal Palil

Research output: Contribution to journalArticle

Abstract

This study goes beyond the existing research in the area of Foreign Direct Investment (FDI) spillovers by opening the black box of Multinational Corporations' (MNC) technology and knowledge spillovers in Malaysia. The main objective of this study was to add to limited evidence related to how and in what ways technology and knowledge are diffused. Specifically, it attempts to contribute to the FDI spillover literature by exploring the channels through which technology and knowledge could be transferred to the host country. In doing so, the authors had employed an in-depth case study method in order to generate a deeper understanding of the significance of the assistance provided by MNCs and that this method would prove an effective strategy in generating a large volume of very meaningful data. The study has identified that technology is diffused from MNCs to local suppliers through the production process, technical consultation and production facilities. Local suppliers enhance their innovative capacity through these linkages. The findings not only provide benefit to the academic circle but also to local businesses, especially small and medium industries, as well as policy makers. The managerial and policy implications derived from the findings are relevant, not only to Malaysia, but also to other developing countries, particularly Malaysia's neighbouring countries.

Original languageEnglish
Pages (from-to)89-102
Number of pages14
JournalJurnal Pengurusan
Volume42
Publication statusPublished - 1 Dec 2014

Fingerprint

Local suppliers
Innovative capacity
Malaysia
Production process
Technology diffusion
Foreign direct investment
Spillover
Small business
Knowledge spillovers
Politicians
Host country
Case study method
Linkage
Policy implications
Media industry
Black box
Developing countries
Technology spillovers
Multinational corporations

Keywords

  • Backward linkages
  • FDI spillovers
  • Malaysia
  • MNC
  • Technology and knowledge transfer

ASJC Scopus subject areas

  • Business, Management and Accounting (miscellaneous)
  • Accounting
  • Business and International Management

Cite this

Technology diffusion through production process and the innovative capacity of local suppliers. / Jaguli, Abd Rahim; Malek, Marlin Marissa; Palil, Mohd Rizal.

In: Jurnal Pengurusan, Vol. 42, 01.12.2014, p. 89-102.

Research output: Contribution to journalArticle

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