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Literature Review Of Internationalisation In Malaysia

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CHAPTER 2 LITERATURE REVIEW 2.0 Introduction In previous chapter, an overview of research background of the factor that contributes to the manufacturing SMEs in Malaysia has been introduced. The aim of this chapter is to review the literature, which is significant step for a study. Firstly, the factors contribute to internationalization of manufacturing SMEs were discussed so that reader can have a brief idea about the factors that contribute to internationalization of manufacturing SMEs. Besides, the internationalization of SMEs Malaysia was specified to manufacturing SMEs, in terms of its size and revenue .The dependent variable for this study is internationalization of manufacturing SMEs in Malaysia, and the five independent variables are …show more content…

As we know, exports also part of internationalization. Therefore it is important to understand why the Manufacturing SMEs go internationalization. Therefore, we need to study the factor contribute to the internationalization of Manufacturing SMEs. The Regulation in manufacturing industry include free movement of funds for foreign investments in Malaysia, Protection of intellectual property rights, Company tax rate 25%, Individual tax rate from 0% - 26%, minimum conditions of employment under the Employment Act 1955, responsible trade unions and harmonious industrial relations. (Malaysian Investment Development Authority, 2015) 2.3 PEST Analysis Theory PEST is stand for political, economic, social and technological factors. Company usually use PEST analysis to analyse the market environment that they want to enter (James, 2015). Figure 2.1 PEST Analysis Source: (James, …show more content…

This is because internationalization is a way to allow the firm to growth in the future (Kim, 2013). For the past forty year there is a lot of research related to the internationalization of firm had been carried out (Werner, 2000) and the Internationalization of SMEs had been studied in various perspectives in the past (Zizah, 2010). The definition of internationalization can define as the process the firm move to the international market from domestic market (Javalgi et al 2003).The Manufacturing SMEs is the firm which has an annual turnover not exceeding RM50 million or the number of employees in the firm are not exceeding 200 workers (NSDC, 2013).Malaysia is a industrialized country, therefore the economy of Malaysia are mainly rest on the Manufacturing industry (Zizah, 2010). There are five factors that contribute to the internationalization of manufacturing SMEs in Malaysia, which includes political factor, economic factors, social factor, technological factor, and internal

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