Innovation barriers and risks for food processing SMEs in Malaysia: a logistic regression analysis

The food industry is facing a period of rapid change driven by globalization, trade liberalization, development of genetic, processing and information technology, intellectual property rights, changes in family structure and health and food safety concerns. Given that the food processing SMEs acco...

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Main Authors:	Nor Ghani Mohd Nor, Abu Bashar Bhuiyan, Jamaliah Said, Syed Shah Alam
Format:	Article
Language:	English
Published:	School of Social, Development and Environmental Studies, Faculty of Social Sciences and Humanities, Universiti Kebangsaan Malaysia 2016
Online Access:	http://journalarticle.ukm.my/9822/ http://journalarticle.ukm.my/9822/ http://journalarticle.ukm.my/9822/1/15x.geografia-si-feb16-norghani-edam_%281%29.pdf

id	ukm-9822
recordtype	eprints
spelling	ukm-98222016-12-14T06:50:56Z http://journalarticle.ukm.my/9822/ Innovation barriers and risks for food processing SMEs in Malaysia: a logistic regression analysis Nor Ghani Mohd Nor, Abu Bashar Bhuiyan, Jamaliah Said, Syed Shah Alam, The food industry is facing a period of rapid change driven by globalization, trade liberalization, development of genetic, processing and information technology, intellectual property rights, changes in family structure and health and food safety concerns. Given that the food processing SMEs account for a large part of mainstream businesses in Malaysia, this study sought to examine the impact of barriers and risks on the innovation of new product, process and services of food processing SMEs in Malaysia. To achieve this objectives, the study analysed primary data gathered from 247 executives of food processing SMEs in Malaysia with statistical and econometric techniques. The multiple logistic regression models were employed to estimate how innovations were being affected by the existing barriers. The study revealed that the Malaysian SMEs were suffering from financial sourcing problems and beset with the barriers of human capital, business competitiveness, infrastructure, and government policy. Further multiple logistic regression model’s outputs showed significant impacts on innovations from financial barriers, especially in regard to financial assistance from the government or financial institutions, namely, high interest rates or profit charged, complicated loan application process and unable to enjoy promotional financial packages by financial institutions for food processing SMEs in Malaysia. The study recommended that the Malaysian SMEs’ challenges be considered seriously and that the industry be provided with sufficient financial assistance in developing new products, new market and new sources of supply so that they can be truly sustainable and globally competitive. School of Social, Development and Environmental Studies, Faculty of Social Sciences and Humanities, Universiti Kebangsaan Malaysia 2016-02 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/9822/1/15x.geografia-si-feb16-norghani-edam_%281%29.pdf Nor Ghani Mohd Nor, and Abu Bashar Bhuiyan, and Jamaliah Said, and Syed Shah Alam, (2016) Innovation barriers and risks for food processing SMEs in Malaysia: a logistic regression analysis. Geografia : Malaysian Journal of Society and Space, 12 (2). pp. 167-178. ISSN 2180-2491 http://www.ukm.my/geografia/v2/index.php?cont=a&item=2&thn=2016&vol=12&issue=2&ver=loc
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
language	English
description	The food industry is facing a period of rapid change driven by globalization, trade liberalization, development of genetic, processing and information technology, intellectual property rights, changes in family structure and health and food safety concerns. Given that the food processing SMEs account for a large part of mainstream businesses in Malaysia, this study sought to examine the impact of barriers and risks on the innovation of new product, process and services of food processing SMEs in Malaysia. To achieve this objectives, the study analysed primary data gathered from 247 executives of food processing SMEs in Malaysia with statistical and econometric techniques. The multiple logistic regression models were employed to estimate how innovations were being affected by the existing barriers. The study revealed that the Malaysian SMEs were suffering from financial sourcing problems and beset with the barriers of human capital, business competitiveness, infrastructure, and government policy. Further multiple logistic regression model’s outputs showed significant impacts on innovations from financial barriers, especially in regard to financial assistance from the government or financial institutions, namely, high interest rates or profit charged, complicated loan application process and unable to enjoy promotional financial packages by financial institutions for food processing SMEs in Malaysia. The study recommended that the Malaysian SMEs’ challenges be considered seriously and that the industry be provided with sufficient financial assistance in developing new products, new market and new sources of supply so that they can be truly sustainable and globally competitive.
format	Article
author	Nor Ghani Mohd Nor, Abu Bashar Bhuiyan, Jamaliah Said, Syed Shah Alam,
spellingShingle	Nor Ghani Mohd Nor, Abu Bashar Bhuiyan, Jamaliah Said, Syed Shah Alam, Innovation barriers and risks for food processing SMEs in Malaysia: a logistic regression analysis
author_facet	Nor Ghani Mohd Nor, Abu Bashar Bhuiyan, Jamaliah Said, Syed Shah Alam,
author_sort	Nor Ghani Mohd Nor,
title	Innovation barriers and risks for food processing SMEs in Malaysia: a logistic regression analysis
title_short	Innovation barriers and risks for food processing SMEs in Malaysia: a logistic regression analysis
title_full	Innovation barriers and risks for food processing SMEs in Malaysia: a logistic regression analysis
title_fullStr	Innovation barriers and risks for food processing SMEs in Malaysia: a logistic regression analysis
title_full_unstemmed	Innovation barriers and risks for food processing SMEs in Malaysia: a logistic regression analysis
title_sort	innovation barriers and risks for food processing smes in malaysia: a logistic regression analysis
publisher	School of Social, Development and Environmental Studies, Faculty of Social Sciences and Humanities, Universiti Kebangsaan Malaysia
publishDate	2016
url	http://journalarticle.ukm.my/9822/ http://journalarticle.ukm.my/9822/ http://journalarticle.ukm.my/9822/1/15x.geografia-si-feb16-norghani-edam_%281%29.pdf
first_indexed	2023-09-18T19:55:48Z
last_indexed	2023-09-18T19:55:48Z
_version_	1777406520803196928

Innovation barriers and risks for food processing SMEs in Malaysia: a logistic regression analysis

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