Abdullah, Moha Asri Bin; (1993) Government policy support, inter-firm linkages and the success of urban small firms in developing countries: A case study of small textile and clothing firms in Kuala Lumpur, Malaysia. Doctoral thesis (Ph.D), UCL (University College London).

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Abstract

Since the early 1970s, the Malaysian government has adopted an export-led industrial strategy within which the promotion of small-scale enterprises is specifically emphasised. The latter reflects the perceived awareness that the economy would become increasingly dependent on external forces with an undesirable impact on the structure of the industrial-base and having unsuitable socio-economic consequences, on the one hand, and the perceived potentiality of small firms to develop in a way that would compensate to some degree, the unbalanced growth of the manufacturing sector, on the other. The government has since incorporated a set of support policies for small firms into successive five-year national development plans and the Industrial Master Plan, with various agencies involved. The main objectives of this study are, firstly, to attempt to assess how and to what extent the policy supports have reached small firms and have affected the success and development of individual recipient firms. Secondly, an attempt is made to explore the degree and magnitude of inter-firm linkages between small and large firms and their effects on the development of small firms. Thirdly, the study endeavour to identify the organisational attributes (unrelated to support policies and inter-firm linkages) which account for the development of small firms. Fourthly, using a sample of small firms in Kuala Lumpur as a case study, the research considers the wider implications for the different theoretical explanations and policy approaches to small firms (urban) in developing countries. Lastly, it seeks to comprehend the major weaknesses of policy support programmes and propose some possible considerations for reinforcing the existing efforts in promoting the development of small firms in Malaysia. In order to inquire into the listed objectives, the thesis is divided into ten chapters. The first chapter introduces the study, followed by the second chapter which provides a brief critical review of the main theoretical approaches, namely, 'Dualist', 'Petty Commodity Production' and 'Flexible Specialisation'. Chapter Three outlines the methodological approach of the research, with definition of the variables and indicators as well as the statistical techniques used in the analysis. This is succeeded by a review of the government policy supports in the Fourth Chapter. The results obtained in the analysis of the impacts of various variables on the success and development of small firms are presented in Chapter Five to Chapter Nine. Lastly, the conclusions of the study are presented in Chapter Ten, drawing upon all the previous chapters and also recommending avenues for further research.

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