Economic Performance and Technological Intensities of Manufacturing Firms in Malaysia: Does Size Matter?

This paper examines size-based differences in export and technological intensity and the statistical relationships involving them in a 2004 sample of manufacturing firms in Malaysia. The results demonstrate that large enterprises have higher export-intensity means compared to small and medium enterprises (SMEs). Moreover, these differences remained significant once controlled for other variables. Large firms enjoyed a higher overall technological intensity mean-consisting of human resources (HR) and research and development (R&D) intensities-than SMEs, but the differences disappear once controlled for other variables. Foreign ownership is highly and positively correlated with export-intensities but not with any of the technological intensity variables. Export-intensity is likewise highly and positively correlated with HR. The other expected positive signs that remained in the three samples were statistically highly significant only in the SMEs and overall samples. Government support is highly correlated with the technology variables of overall technological intensity, process and product, and R&D intensities.