Abstract
Electrical and electronics industry’s presence in Malaysia is the result of massive foreign direct investment. The main investors are USA, Japan, European and Newly Industrialized South East Asian country (NICs) firms.
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- 1.
The operations and role of MNCs in Developing countries generated so much controversy in the past, as to whether they are an impediment or catalyst to their economic development through the transfer of the resources that are seriously in deficit in these countries. As we are approaching the 21st Century, there seems to be an overwhelming consensus regarding the positive role MNCs can play in Developing Countries. There is however no linear relationship between the presence of MNCs in Developing Countries and the transfer of the resources in deficit. That is to say that the transfer of these resources is not guaranteed by the mere presence of an MNC. The transfer of the resources in deficit therefore hinges on the actions of both the MNC and the host country. This view stems from the recognition of the fact that technology is not for free, even though it may exhibit some public good characteristics. MNCs are poised to play an increasing role in concert with host countries, given the on-going changes in the global economic structures and the ensuing relationships. This restructuring is marked by a shift from a hierarchical to an alliance type of Capitalism. The benefits from this change would however be determined by the human resource capabilities in the host Developing Countries. Dunning (1997) expresses the view on a shift from hierarchical to an alliance type of capitalism.
- 2.
The controversy over technology transfer is exhibited in dissatisfactions, reflected in ‘they are not willing’ sort of comments on the side of the recipient and ‘they are not capable’ reactions from technology suppliers. This position stems from inherent bias on both sides. The recipients have a tendency to overestimate their own capability while the suppliers tend to underestimate the recipient’s capability.
- 3.
The seven Matsushita principles originated from the founder of the company, the late Konosuke Matsushita. The Principles are: contribution to society, fairness and honesty, cooperation and team spirit, untiring effort for improvement, courtesy and humility, adaptability and gratitude.
- 4.
The pioneer status meant that all the parts and components used in production could be imported without any duties levied on them. Therefore most of the operations were mainly simple assembly of imported parts signifying a labor-intensive process. At this phase, the technological human resource requirement was relatively low.
- 5.
Because Melcom's equity is majority-held by Malaysians, it may be expected that they would play a leading role in determining both the direction and pace of change. However, ownership of the crucial asset, which in this case is technology, proves to be the most important factor in determining the changes and progress at Melcom.
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Agola, N.O. (2016). Technological Capacity Building in Consumer Electronics Industry in Malaysia. In: Technology Transfer and Economic Growth in Sub-Sahara African Countries. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-49557-5_8
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