Impact of information technology on SMEs survival rate in Malaysian manufacturing industry

This study focuses on the impact of information technology on the survival rate of small and medium enterprises (SMEs) in the manufacturing sector in Malaysia. It analyses the effects of information technology on survival of SMEs in 2000 and 2005, based on two separate groups of closed firms. The st...

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Main Author:	Jamali, Mohammad Ali
Format:	Thesis
Language:	English English
Published:	2010
Subjects:	Business enterprises - Computer networks - Malaysia Manufacturing industries - Malaysia Small business - Management - Malaysia
Online Access:	http://psasir.upm.edu.my/id/eprint/19478/1/FEP_2010_2_F.pdf
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id	my-upm-ir.19478
record_format	uketd_dc
spelling	my-upm-ir.194782013-03-29T09:12:40Z Impact of information technology on SMEs survival rate in Malaysian manufacturing industry 2010-09 Jamali, Mohammad Ali This study focuses on the impact of information technology on the survival rate of small and medium enterprises (SMEs) in the manufacturing sector in Malaysia. It analyses the effects of information technology on survival of SMEs in 2000 and 2005, based on two separate groups of closed firms. The study attempts to present a rational relationship between theories of firm survival and information technology. It sets out to show that while factors such as minimum efficient size, market and firms attributes, transaction cost, uncertainty, opportunism, information asymmetry and atmosphere, profitability and learning have an impact on the survival of SMEs, the effect of information technology is also significant. The Cox Proportional Hazard Regression Model is used for estimation of coefficients and survival functions. Evidence suggests that factors such as minimum economies of scale, productivity, technology usage, profits, R&D, location and capital-labor ratio affect the survival of SMEs. Of equal importance is the expenditure on information technology, which is said to have an impact on the viability of firms. By employing the model this study presents that information technology expenditure has positive effect on survival of SMEs in Malaysian manufacturing sector in this period. The model further shows that information technology plays a bigger role among the larger SMEs than the smaller ones. Thus, policy maker with regard to main finding of this study should consider some policy for promoting the IT among SMEs, especially larger ones in Malaysian manufacturing sector. Moreover, for increasing survival of SMEs, policy maker should encourage R&D among SMEs and concentrate on some sector, which have high entry rate. Business enterprises - Computer networks - Malaysia Manufacturing industries - Malaysia Small business - Management - Malaysia 2010-09 Thesis http://psasir.upm.edu.my/id/eprint/19478/ http://psasir.upm.edu.my/id/eprint/19478/1/FEP_2010_2_F.pdf application/pdf en public phd doctoral Universiti Putra Malaysia Business enterprises - Computer networks - Malaysia Manufacturing industries - Malaysia Small business - Management - Malaysia Faculty of Economics and management English
institution	Universiti Putra Malaysia
collection	PSAS Institutional Repository
language	English English
topic	Business enterprises - Computer networks - Malaysia Manufacturing industries - Malaysia Small business - Management - Malaysia
spellingShingle	Business enterprises - Computer networks - Malaysia Manufacturing industries - Malaysia Small business - Management - Malaysia Jamali, Mohammad Ali Impact of information technology on SMEs survival rate in Malaysian manufacturing industry
description	This study focuses on the impact of information technology on the survival rate of small and medium enterprises (SMEs) in the manufacturing sector in Malaysia. It analyses the effects of information technology on survival of SMEs in 2000 and 2005, based on two separate groups of closed firms. The study attempts to present a rational relationship between theories of firm survival and information technology. It sets out to show that while factors such as minimum efficient size, market and firms attributes, transaction cost, uncertainty, opportunism, information asymmetry and atmosphere, profitability and learning have an impact on the survival of SMEs, the effect of information technology is also significant. The Cox Proportional Hazard Regression Model is used for estimation of coefficients and survival functions. Evidence suggests that factors such as minimum economies of scale, productivity, technology usage, profits, R&D, location and capital-labor ratio affect the survival of SMEs. Of equal importance is the expenditure on information technology, which is said to have an impact on the viability of firms. By employing the model this study presents that information technology expenditure has positive effect on survival of SMEs in Malaysian manufacturing sector in this period. The model further shows that information technology plays a bigger role among the larger SMEs than the smaller ones. Thus, policy maker with regard to main finding of this study should consider some policy for promoting the IT among SMEs, especially larger ones in Malaysian manufacturing sector. Moreover, for increasing survival of SMEs, policy maker should encourage R&D among SMEs and concentrate on some sector, which have high entry rate.
format	Thesis
qualification_name	Doctor of Philosophy (PhD.)
qualification_level	Doctorate
author	Jamali, Mohammad Ali
author_facet	Jamali, Mohammad Ali
author_sort	Jamali, Mohammad Ali
title	Impact of information technology on SMEs survival rate in Malaysian manufacturing industry
title_short	Impact of information technology on SMEs survival rate in Malaysian manufacturing industry
title_full	Impact of information technology on SMEs survival rate in Malaysian manufacturing industry
title_fullStr	Impact of information technology on SMEs survival rate in Malaysian manufacturing industry
title_full_unstemmed	Impact of information technology on SMEs survival rate in Malaysian manufacturing industry
title_sort	impact of information technology on smes survival rate in malaysian manufacturing industry
granting_institution	Universiti Putra Malaysia
granting_department	Faculty of Economics and management
publishDate	2010
url	http://psasir.upm.edu.my/id/eprint/19478/1/FEP_2010_2_F.pdf
_version_	1747811391565201408

Impact of information technology on SMEs survival rate in Malaysian manufacturing industry

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