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Systemic Coordination and Human Capital Development: Knowledge Flows in Malaysia's MNC-Driven Electronics Clusters

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Author Info
Rasiah, Rajah () (United Nations University, Institute for New Technologies)

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Abstract

Using two MNC dominated electronics clusters in Malaysia, this paper examines the development of human capital from two knowledge and skills acquisition modes - formal education and learning by performing - which were dominant in the successful evolution of industrial districts. Ineffective systemic coordination throughout the country from federal institutions has restricted the supply of high tech human capital from formal institutions of education and training. Hence, firms in Penang and Kelang Valley have faced growing demand-supply deficits. Restrictive immigration policies have hampered firms' options of seeking high tech human capital from abroad. Differential systemic coordination at the regional level has produced different levels of network synergies in Penang and Kelang Valley. Stronger systemic coordination and network cohesion has stimulated greater differentiation and division of labor, engendering the movement of tacit and experiential knowledge embodied in human capital to support industrial dynamism in Penang. Weak systemic coordination and network cohesion has confined MNCs to largely truncated operations without significant levels of differentiation and division of labor in the Kelang Valley

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Paper provided by United Nations University, Institute for New Technologies in its series Discussion Papers with number 07.

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Date of creation: 2002
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Handle: RePEc:dgr:unuint:200207

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Web page: http://www.intech.unu.edu

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Related research
Keywords: Human Resources Development; Skills Development; Tacit knowledge; Experiential Knowledge; Systemic Coordination; Electronics MNCs; Malaysia;

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References listed on IDEAS
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  1. Brusco, Sebastiano, 1982. "The Emilian Model: Productive Decentralisation and Social Integration," Cambridge Journal of Economics, Oxford University Press, vol. 6(2), pages 167-84, June.
  2. Rasiah, Rajah, 1994. "Flexible Production Systems and Local Machine-Tool Subcontracting: Electronics Components Transnationals in Malaysia," Cambridge Journal of Economics, Oxford University Press, vol. 18(3), pages 279-98, June.
  3. Richardson, G B, 1972. "The Organisation of Industry," Economic Journal, Royal Economic Society, vol. 82(327), pages 883-96, September. [Downloadable!] (restricted)
  4. Rasiah, Rajah, 2002. " Government-Business Coordination and Small Enterprise Performance in the Machine Tools Sector in Malaysia," Small Business Economics, Springer, vol. 18(1-3), pages 177-95, Feb.- May. [Downloadable!] (restricted)
  5. Young, Allyn A., 1928. "Increasing Returns and Economic Progress," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 38, pages 527-542. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Mats Furby, 2005. "Evaluating the Malaysian Export Processing Zones With special focus on the electronic industry," International Trade 0510004, EconWPA. [Downloadable!]
  2. Chandran V.G.R & Veera Pandiyan & Karunagaran Madhavan, 2004. "Malaysia’s Export Market: Trends, Prospects and Challenges," International Trade 0404002, EconWPA. [Downloadable!]
  3. Leo van Grunsven, 2006. "New Industries in Southeast Asia’s Late Industrialization: Evolution versus Creation - The Automation Industry in Penang (Malaysia) considered," Papers in Evolutionary Economic Geography (PEEG) 0611, Utrecht University, Section of Economic Geography, revised Dec 2006. [Downloadable!]
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This page was last updated on 2009-11-27.

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