Article Analysis Essay on Economics of Malaysia

Abstract

This article review is intended to analyze, summarize, and interpret the impacts of learning orientation within organizations as well as the overall performance of a business, as illustrated in the findings from the article. The study in the article was constructed based on the attributes of the organization's superiority condition, knowledge sharing and general performance, including their influence on an organization's ability to respond to both customers and competitors. According to the article, business performance is influenced by the level of learning in both organizations regardless of their sizes. The statistical evidence from the study conducted by the authors reveals the relationship between the variables. In terms of the findings and implications, the article provides useful insights regarding the significance of knowledge sharing as well as the competitive advantage among Small and Medium Enterprises (SMEs) and how these determine overall business performance. This paper seeks to review the outcomes concerning the connection between organizational learning and its performance as presented in the article and relate them to SMEs in Malaysia.

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Summary

The article presents a study conducted to investigate the impacts of knowledge sharing on the general performance of the business within the organization. According to the article, organizations have the ability to utilise a learning orientation to improve the overall performance of the business. To draw the conceptual framework for the study, the researchers have employed theories from organisational behaviour, marketing, and finance to support their observations (Martinette & Obenchain-Leeson, 2009). The article highlights several key aspects, including relationships attributed to organisational learning, business performance, and sources of competitive advantages. Research questions were formulated on the basis of examining the connection of organization's performance and knowledge sharing, as well as citing the statistically significant differences in their relationships using both small and large organisations. The researchers conducted a survey on managers from small and large organisations based in the United States (Martinette & Obenchain-Leeson, 2009). The results of the study reveal that a statistical significance in sales and profits accumulated in the organizations.

In addition, the findings indicate that the existence of a statistical significance between the performance and learning in the organizations regardless of their sizes. The variation in overall business performance for both organisations was statistically significant; however, the scores in larger organisations were higher than in the small organisations. (Martinette & Obenchain-Leeson, 2009).

Evaluation of Study Results

The conducted survey outlines a constructive connection between business performance and organisational learning. According to the article, organisational performance, learning orientation, and competitive advantages all require extensive research (Martinette & Obenchain-Leeson, 2009). Recent studies have demonstrated that market orientation originates from the competitive advantage of an organisation, and the learning orientation serves as the firm's internal moderator. Strategies adopted by SMEs enable them to maintain modest advantages. According to the researchers, SMEs need to have a stable framework for the learning orientation to achieve financial success and maintain market dominance (Martinette & Obenchain-Leeson, 2009). Learning strategies within SMEs also provide a better understanding of the organisational structure, including its weaknesses and strengths. Managers of SMEs in Malaysia should use the learning orientation approach to develop an organisational competitive advantage through the launching of differentiated products.

The researchers of this study emphasise purpose, learning, open-mindedness, and shared vision as the key determinants of organisational commitment to a learning orientation. The SMEs in Malaysia experience constant changes in the global business environment and management trends, which requires existing organisations to learn and adapt to survive and thrive. Organisational learning involves developing new concepts, knowledge, and the ability to utilise the newly acquired knowledge to improve overall performance. The essence of learning is to enable a business to grow by becoming more innovative and competitive in a global business environment. Upon closer examination, the reader of the article can easily discern that learning orientation enables the managers of SMEs to alter their management trends according to the features of the global business environment. As a result, organisations are forced to adopt new techniques to evolve and remain in business. The theory of organisational learning is based on developing, retaining, and transferring knowledge within an organisation. The SMEs are influenced by the global environment as well as management trends, which exert significant impacts on their operations (Beck & Demirguc-Kunt, 2006).

Another point that has captured the author's attention is the roles played by the organization's superiority condition in fostering the sharing of knowledge and ideas. Small and large organisations develop systematic strategies to attain a competitive advantage and achieve sustainable growth. A competitive advantage significantly contributes to the success of the business, particularly in SMEs. The economy of every country relies on business enterprises to grow and develop. The existence of SMEs is essential in the economic development of the country by uplifting societal living standards and ensuring stability in the country's economic progress. The SMEs are believed to be diverse in nature, and they can be established based on different forms of business ideas, both in rural and urban regions. They serve as the main backbone of the country's economic progress. As a result of the several benefits associated with SMEs in nurturing economic development of countries, several government-based agencies have established effective measures to foster the creation of SMEs (Chelliah, Sulaiman, & Yusoff, 2010).

Organisational learning and competitive advantages are intended to strengthen the performance of SMEs and enhance their effectiveness in the economy. For instance, in recent years, the Malaysian government has intensified the funds allocated to the development of SMEs. According to recent studies, this amount has increased from RM 1,561.6 million to RM 2,160.2, as indicated in the 9th Malaysian plan. In addition to the major financial support from the Malaysian government provided for the development of SMEs, it has also initiated other programs to support enterprises such as SMECORP and SME Bank, among others (Man, Lau, & Chan, 2002).

SMEs in Malaysia are categorised as business firms with an annual turnover of less than RM 50 million which have a maximum workforce of 200 employees, especially in the manufacturing sector.

The economy of Malaysia has been transformed because of the growth of small and medium-sized enterprises, which contributes to the growth of the country's revenue (Chelliah et al., 2010). As a result of these SMEs, the country has been transformed from an agriculture-based economy into an industry-based economy. The resulting industrial knowledge obtained from SMEs helps the country achieve its 'Vision 2020' to be referred to as a developed economy.

The economy of Malaysia is characterised by the dominance of small and medium-sized enterprises, which are considered the country's backbone. The SMEs that belong to the manufacturing sector is crucial in ensuring that the country maintains an active economy. For instance, 99.2% of the businesses in Malaysia are comprised of SMEs, and they contribute to 47.3% of the country's GDP. As a result, the role of SMEs includes job creation for the people of Malaysia, specifically the youth. A survey conducted in 2006 demonstrated that SMEs employed 66.1% of the total workforce of Malaysia (Saleh & Ndubisi, 2006). The workforce has been increasing because of the continuous development of SMEs due to the existence of an efficient global environment. Malaysia also adheres to the current management trends that enable the growth of small and medium-sized enterprises. Malaysian SMEs operate in the agriculture and manufacturing sectors, as well as the raw material and general business sectors (Martinette & Obenchain-Leeson, 2009).

As globalisation continues to shape the economy, firms must compete effectively. The rapid use of online platforms to reach a large market base, the physical limitations and geographical separation become less significant (Bakar, Mahmood, & Ismail, 2015). This advancement has constrained firms in increasing the intensity of competition against their rivals in similar industries. Only the organisations with the ability to succeed in all aspects of competitive needs will survive in such a volatile commercial environment.

Experiencing more rapid changes in the market than any other time in recent memory, firms must choose between limited options to adjust to conditions to endure and flourish. Small and medium-sized enterprises do not escape from these effects of globalisation. Generally, some SMEs restrict their exercises to their area of commerce; however, the greater portion of them remain within their national limits. A large share of the enterprises in less developed nations may provide insights regarding centre-focused methodologies to succeed in such a globalised world. In the past, some SMEs could concentrate only on the residential market; however, in the present business structure, SMEs must be internationally focused for their own long-term survival and development (Man et al., 2002).

However, in the unlikely case that SMEs are unequipped for travelling to another country, outside firms and items will go to their property. This advancement is particularly valid because organisations rather than countries compete in the market. It is, in all respects, impossible for SMEs working in the high innovation and assembling divisions to act freely without considering the dangers and opportunities introduced by remote contenders (Martinette & Obenchain-Leeson, 2009). Therefore, competitive procedures should be a top priority to remain focused on potentially threatening conditions. Conventional competitive techniques in terms of cost authority, separation, and market centre as conceived by Porter are essential in this regard; however, they may not be satisfactory for SMEs in a globalised economy (Porter, 1980). Therefore, the advancement and worldwide direction received by firms become significant for firms to contend with their opponents in the open economy.

Concentrating on the company's vital capacities is essential; however, this is typically only implemented in large firms. This pattern does not exclude Malaysia; an examination by Jusoh and Parnell (2008) focused on the methodologies of assembling firms, for instance, size and industry blinds. In Malaysia, advancement has entered a middle stage in its economic development. Meanwhile, the worldwide trend is toward another pattern which is based on large ventures, in addition to SMEs. In spite of this, how Malaysian small and medium-sized enterprises react to this approach and worldwide changes in business calls for examinat...