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

Author

Listed:
  • Rajah Rasiah
  • Asokkumar Malakolunthu

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.

Suggested Citation

  • Rajah Rasiah & Asokkumar Malakolunthu, 2010. "Economic performance and technological intensities of electronics firms in Johor: Does size matter?," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 3(1), pages 47-66.
  • Handle: RePEc:ids:ijtlid:v:3:y:2010:i:1:p:47-66
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