The challenges of global competition : Malaysian SMEs and AFTA / Saadiah Mohamad, Rohani Mohd and Mazzini Muda

ASEAN Free Trade Area or AFTA manifests market liberalization; it may present significant opportunities or may pose significant threats to SMEs in Malaysia. The main purp ose of this study is to identify the challenges and impact of AFTA on SMEs :~ business operations. Specifically, the aim is to a...

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Main Authors: Mohamad, Saadiah, Mohd, Rohani, Muda, Mazzini
Format: Article
Language:English
Published: Research Management Institute (RMI) 2008
Subjects:
Online Access:https://ir.uitm.edu.my/id/eprint/13055/1/AJ_SAADIAH%20MOHAMAD%20SMRJ%2008%201.pdf
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author Mohamad, Saadiah
Mohd, Rohani
Muda, Mazzini
author_facet Mohamad, Saadiah
Mohd, Rohani
Muda, Mazzini
author_sort Mohamad, Saadiah
collection UITM
description ASEAN Free Trade Area or AFTA manifests market liberalization; it may present significant opportunities or may pose significant threats to SMEs in Malaysia. The main purp ose of this study is to identify the challenges and impact of AFTA on SMEs :~ business operations. Specifically, the aim is to assess the level ofawareness of AFTA among SMEs in Malaysia and to explore the relationship between managers' perceptions of AFTA and the strategies employed as well as their intending business operational changes. Data from 273 firms were used based on questionnaires distributed to SMEs of various sectors in the four regions in West Malaysia: Northern (Kedah, Penang and Perak ), Western (Klang Valley) , Eastern (Terengganu) and Southern (Johor). The findings indicate that only slightly more than half of the managers surveyed were aware of AFTA and its implications. The findings also exhibit that managers' perceptions of AFTA are related positively to differentiation and cost leadership strategy and besides employing the relevant strategy, those who have more favorable perceptions of AFTA are more likely to carry out changes in business operations that will enhance their export activities to ASEAN countries.
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spelling oai:ir.uitm.edu.my:130552016-06-20T05:19:18Z https://ir.uitm.edu.my/id/eprint/13055/ The challenges of global competition : Malaysian SMEs and AFTA / Saadiah Mohamad, Rohani Mohd and Mazzini Muda smrj Mohamad, Saadiah Mohd, Rohani Muda, Mazzini Malaysia Small business Tariff. Free trade. Protectionism ASEAN Free Trade Area or AFTA manifests market liberalization; it may present significant opportunities or may pose significant threats to SMEs in Malaysia. The main purp ose of this study is to identify the challenges and impact of AFTA on SMEs :~ business operations. Specifically, the aim is to assess the level ofawareness of AFTA among SMEs in Malaysia and to explore the relationship between managers' perceptions of AFTA and the strategies employed as well as their intending business operational changes. Data from 273 firms were used based on questionnaires distributed to SMEs of various sectors in the four regions in West Malaysia: Northern (Kedah, Penang and Perak ), Western (Klang Valley) , Eastern (Terengganu) and Southern (Johor). The findings indicate that only slightly more than half of the managers surveyed were aware of AFTA and its implications. The findings also exhibit that managers' perceptions of AFTA are related positively to differentiation and cost leadership strategy and besides employing the relevant strategy, those who have more favorable perceptions of AFTA are more likely to carry out changes in business operations that will enhance their export activities to ASEAN countries. Research Management Institute (RMI) 2008 Article PeerReviewed text en https://ir.uitm.edu.my/id/eprint/13055/1/AJ_SAADIAH%20MOHAMAD%20SMRJ%2008%201.pdf The challenges of global competition : Malaysian SMEs and AFTA / Saadiah Mohamad, Rohani Mohd and Mazzini Muda. (2008) Social and Management Research Journal (SMRJ) <https://ir.uitm.edu.my/view/publication/Social_and_Management_Research_Journal_=28SMRJ=29/>, 5 (1). pp. 35-47. ISSN 1675-7017 https://smrj.uitm.edu.my/
spellingShingle Malaysia
Small business
Tariff. Free trade. Protectionism
Mohamad, Saadiah
Mohd, Rohani
Muda, Mazzini
The challenges of global competition : Malaysian SMEs and AFTA / Saadiah Mohamad, Rohani Mohd and Mazzini Muda
title The challenges of global competition : Malaysian SMEs and AFTA / Saadiah Mohamad, Rohani Mohd and Mazzini Muda
title_full The challenges of global competition : Malaysian SMEs and AFTA / Saadiah Mohamad, Rohani Mohd and Mazzini Muda
title_fullStr The challenges of global competition : Malaysian SMEs and AFTA / Saadiah Mohamad, Rohani Mohd and Mazzini Muda
title_full_unstemmed The challenges of global competition : Malaysian SMEs and AFTA / Saadiah Mohamad, Rohani Mohd and Mazzini Muda
title_short The challenges of global competition : Malaysian SMEs and AFTA / Saadiah Mohamad, Rohani Mohd and Mazzini Muda
title_sort challenges of global competition malaysian smes and afta saadiah mohamad rohani mohd and mazzini muda
topic Malaysia
Small business
Tariff. Free trade. Protectionism
url https://ir.uitm.edu.my/id/eprint/13055/1/AJ_SAADIAH%20MOHAMAD%20SMRJ%2008%201.pdf
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