Weak interlinkages between SMEs and Non-SMEs in Malaysia and Thailand: what do we know so far?

Small and medium enterprises (SMEs) are undeniably the backbone of many developing economies, considering their sizeable share of business establishments and contribution to employment creation. Nevertheless, they have fallen short of policymakers' expectations because of the weak interlinkage...

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Main Authors: Utit, Chakrin, Abdul, Mohd Alzaiery, Saari, Mohd Yusof
Format: Article
Language:English
Published: School of Business and Economics, Universiti Putra Malaysia 2022
Online Access:http://psasir.upm.edu.my/id/eprint/98101/1/9.%20Weak%20Interlinkages%20Between%20SMEs.pdf
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author Utit, Chakrin
Abdul, Mohd Alzaiery
Saari, Mohd Yusof
author_facet Utit, Chakrin
Abdul, Mohd Alzaiery
Saari, Mohd Yusof
author_sort Utit, Chakrin
collection UPM
description Small and medium enterprises (SMEs) are undeniably the backbone of many developing economies, considering their sizeable share of business establishments and contribution to employment creation. Nevertheless, they have fallen short of policymakers' expectations because of the weak interlinkage issue that limits their ability to create wealth. The issue stems from SMEs' excessive reliance on non-SMEs as their primary input sources, while non-SMEs are more dependent on their cluster and imports. This paper seeks to assess the magnitude of the issue in Malaysia and Thailand by comparing the productive structures of SMEs in both economies using the cascaded input-output modelling technique. The findings validated the weak interlinkage issue in Malaysia and Thailand, with the latter suffering from it to a greater extent. Overall, SMEs remain integral to the growth drivers of developing economies. Therefore, development policies should continue to support them by considering their value-added multiplier impacts. Considering all facts and figures, strengthening existing linkage programmes and establishing an SME content requirement policy are this study's two recommendations for improving the interlinkage situation
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spelling upm.eprints-981012022-08-11T03:37:25Z http://psasir.upm.edu.my/id/eprint/98101/ Weak interlinkages between SMEs and Non-SMEs in Malaysia and Thailand: what do we know so far? Utit, Chakrin Abdul, Mohd Alzaiery Saari, Mohd Yusof Small and medium enterprises (SMEs) are undeniably the backbone of many developing economies, considering their sizeable share of business establishments and contribution to employment creation. Nevertheless, they have fallen short of policymakers' expectations because of the weak interlinkage issue that limits their ability to create wealth. The issue stems from SMEs' excessive reliance on non-SMEs as their primary input sources, while non-SMEs are more dependent on their cluster and imports. This paper seeks to assess the magnitude of the issue in Malaysia and Thailand by comparing the productive structures of SMEs in both economies using the cascaded input-output modelling technique. The findings validated the weak interlinkage issue in Malaysia and Thailand, with the latter suffering from it to a greater extent. Overall, SMEs remain integral to the growth drivers of developing economies. Therefore, development policies should continue to support them by considering their value-added multiplier impacts. Considering all facts and figures, strengthening existing linkage programmes and establishing an SME content requirement policy are this study's two recommendations for improving the interlinkage situation School of Business and Economics, Universiti Putra Malaysia 2022 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/98101/1/9.%20Weak%20Interlinkages%20Between%20SMEs.pdf Utit, Chakrin and Abdul, Mohd Alzaiery and Saari, Mohd Yusof (2022) Weak interlinkages between SMEs and Non-SMEs in Malaysia and Thailand: what do we know so far? International Journal of Economics and Management, 16 (1). pp. 135-146. ISSN 1823-836X; ESSN: 2600-9390 http://www.ijem.upm.edu.my/vol16no1/9.%20Weak%20Interlinkages%20Between%20SMEs.pdf
spellingShingle Utit, Chakrin
Abdul, Mohd Alzaiery
Saari, Mohd Yusof
Weak interlinkages between SMEs and Non-SMEs in Malaysia and Thailand: what do we know so far?
title Weak interlinkages between SMEs and Non-SMEs in Malaysia and Thailand: what do we know so far?
title_full Weak interlinkages between SMEs and Non-SMEs in Malaysia and Thailand: what do we know so far?
title_fullStr Weak interlinkages between SMEs and Non-SMEs in Malaysia and Thailand: what do we know so far?
title_full_unstemmed Weak interlinkages between SMEs and Non-SMEs in Malaysia and Thailand: what do we know so far?
title_short Weak interlinkages between SMEs and Non-SMEs in Malaysia and Thailand: what do we know so far?
title_sort weak interlinkages between smes and non smes in malaysia and thailand what do we know so far
url http://psasir.upm.edu.my/id/eprint/98101/1/9.%20Weak%20Interlinkages%20Between%20SMEs.pdf
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AT abdulmohdalzaiery weakinterlinkagesbetweensmesandnonsmesinmalaysiaandthailandwhatdoweknowsofar
AT saarimohdyusof weakinterlinkagesbetweensmesandnonsmesinmalaysiaandthailandwhatdoweknowsofar