Authors : Noorhassidah Mohd Radzi, Alina Shamsuddin and Eta Wahab
Abstract: Global business environment that is constantly changing has given new challenges and opportunities for SMEs. The demand of competitive environment caused the firm to respond, formulate strategies and develop capabilities. Technological capability is the ability of organizational and individual resources which include firm knowledge, skills and experience to design and produce new innovative products, improve competitive advantage, thus achieve desired result. Understanding technological capability can help firms assess their weaknesses and strengths in order to plan for innovative technology strategies. The definitions, importance, parameters of technological capability and also background of Malaysian SMEs are determined based on review of journal study as well as reports from Department of Statistics Malaysia (DOS) and from Small and Medium Corporation Malaysia (SMECorp). This study aims to identify the relevancy of technological capability approach in order to enhance competitive advantage for Malaysian SMEs. All the definitions, categories and determinants of technological capability for SMEs must be developed because this will lead to the development of an instrument to measure technological capability for SMEs in Malaysia. The reviews indicate that certain level of technological capability in SMEs brings additional positive effects such as act as a strategic tool to compete with others, produce innovative product, growth in the innovation process, respond to the market changes, increase firm performance and improve the awareness of technological capability’s role and its importance.
Noorhassidah Mohd Radzi, Alina Shamsuddin and Eta Wahab, 2017. Enhancing the Competitiveness of Malaysian SMES Through Technological Capability: A Perspective. The Social Sciences, 12: 719-724.