Flexibility and small firms’ survival: further evidence from Malaysian manufacturing

Nor, Norashidah Mohamed; Nor, Nor Ghani Md; Abdullah, Ahmad Zainuddin; Jalil, Suhaila Abd

doi:10.1080/13504850600706065

Cited by 9 publications

(12 citation statements)

References 6 publications

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“…Finally, this research investigates the effects on venture performance of manufacturing capabilities that are of recognized importance to established manufacturers, yet remain relatively unexplored within the context of high technology new ventures. Specifically, the present study's focus on manufacturing capabilities that contribute to low operating costs and product quality can confirm the importance of these capabilities among high technology ventures, thereby challenging the common assumption that manufacturing ventures' performance is largely determined by speed-based and/or flexibility-based manufacturing capabilities (e.g., Dodgson, 1987;Nor et al, 2007).…”

Section: Introductionmentioning

confidence: 97%

Alliance diversity, environmental context and the value of manufacturing capabilities among new high technology ventures

Terjesen

Patel

Covin

2010

J of Ops Management

135

141

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a b s t r a c tManufacturing capabilities have often been shown to predict various indicators of firm performance. However, the association between manufacturing capabilities and firm performance has seldom been studied in the context of high technology new ventures. Using a sample of 167 UK-based, high technology manufacturing ventures, the current study examines the relationship between manufacturing capabilities (in particular, those contributing to low operating costs and product quality) and venture performance. Additionally, the moderating effects of the ventures' alliance portfolios and environmental contexts on the capability-performance relationships are explored. Results indicate that venture performance (as reflected in sales growth, return on sales (ROS), and return on assets (ROA)) is significantly predicted by manufacturing capabilities that promote low operating costs and product quality. Further, the data generally support the hypothesized moderating effects of two alliance diversity variables (alliance partner diversity and alliance geographic diversity) and two environmental context variables (environmental dynamism and environmental munificence) on the capability-performance relationships. Overall, the study supports the premise that the value of manufacturing capabilities (i.e., the strength of the capability-performance relationship) among high technology ventures is contingent upon the alliance and environmental contexts within which those ventures operate. Specifically, alliance partner diversity, alliance geographic diversity, and environmental munificence enhance the value of manufacturing capabilities that promote low operating costs. Alliance partner diversity, environmental munificence, and environmental stability enhance the value of manufacturing capabilities that promote product quality. The study's theoretical and practical implications are discussed.

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Section: Introductionmentioning

confidence: 97%

Alliance diversity, environmental context and the value of manufacturing capabilities among new high technology ventures

Terjesen

Patel

Covin

2010

J of Ops Management

135

141

View full text Add to dashboard Cite

show abstract

“…As a result of this, the findings of the present study afford a more realistic picture of the relationship between PCM and the degree of FMT adoption in the manufacturing industry of Malaysia. According to Mohamed, Mohamed, Abdullah and Jalil [31], findings of the empirical estimation appear to lend some support to the idea that in the Malaysian manufacturing industry, production flexibility is one of the forces that explains the lasting presence of small firms alongside their larger counterparts in the market.…”

Section: Discussionmentioning

confidence: 85%

The Impact of Adoption of Flexible Manufacturing Technology on Price Cost Margin of Malaysian Manufacturing Industry

Dolage¹,

Sade²

2012

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This paper explores the impact of the adoption of Flexible Manufacturing Technology (FMT) on the Malaysian Manu-facturing Industry. The Principal Component Analysis has been adopted to extract the most appropriate underlying dimensions of FMT to use in place of the eight FMT variables owing to the potential multicollinearity. The study has been conducted within FMT intensively adopted 16 three-digit industries that encompass 50 five-digit industries cover-ing the years 2000-2005. The results obtained from the two scenarios, one, including the industry fixed effects dummy variables and the other without these, are contrasted. It is established that the model that included the industry fixed effect dummy variables has a greater explanatory power. The two principal components that account for the greater variation in FMT show positive and moderately significant relationship with PCM. The study provides sufficient evi-dence to conclude that FMT has a direct and moderately significant relationship with PCM

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“…Soenen, [38], Kelley [39], Hagelin [40], Noreiko & Solga, [41], Hill, [42], Hekman [43] and He & Ng [44] all recognize that hedging occurs when managing the exposure of short-term transactions (transaction exposures), managing records affected by foreign exchange fluctuations (translation or accounting exposures) and managing long-term implications of fluctuations in the foreign exchange market (economic exposures), although there have been attempts to decompose hedging differently [45,46]. Firms may hedge consciously in consonance with the ALT, or unconsciously, as assumed by the PLT, but we argue that absolute disregard of hedging may not augur well for these manufacturing firms, irrespective of their size [47,48]. The presumption that a firm is too small to hedge is preposterous, because the commodities which that firm produces are sold in the same market where other imported commodities are sold, and for bigger firms that may be export-oriented, the commodities which they export are also being sold in foreign markets with much more hedging-conscious firms to the detriment of the non-hedgers, impeding their life-cycle [49][50][51].…”

Section: Managing Foreign Exchange Rate Risks and Firm Survivalmentioning

confidence: 87%

Firm Size and Age mediating the Firm Survival-Hedging Effect: Hayes’ 3-Way Parallel Approach

et al. 2019

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A James Gaskin Excel Macro Analysis is performed to determine the reliability of our scales, and a 3-way parallel mediation using the Andrew Hayes’ PROCESS model is applied to test the formulated hypotheses. Results show that hedging has a direct effect on firms’ survival; firms’ size and age individually do not strongly influence these effects, but a combination of the two does. We, therefore, concluded that while the hedging-survival effect exists on all forms of hedging, the practice of hedging is consequential for firms on the premise of their ages and numbers of employees.

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Flexibility and small firms’ survival: further evidence from Malaysian manufacturing

Cited by 9 publications

References 6 publications

Alliance diversity, environmental context and the value of manufacturing capabilities among new high technology ventures

Alliance diversity, environmental context and the value of manufacturing capabilities among new high technology ventures

The Impact of Adoption of Flexible Manufacturing Technology on Price Cost Margin of Malaysian Manufacturing Industry

Firm Size and Age mediating the Firm Survival-Hedging Effect: Hayes’ 3-Way Parallel Approach

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