International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

Malaysian Food Processing Industry: Strategies for Growth
Dr. Kartinah Ayupp, Dr. RabaahTudin

Choosing the correct strategy is crucial for the success of any business ventures, and this is even more so for small firms that have limited resources. Thus, this study involved empirical analysis of the growth strategy adopted by firms within the food processing industry which mainly consist of small & medium sized enterprises. The food industry was selected because of its importance to the Malaysia’s economy and also because of its dynamic internal and external environment. For instance, in 2011, processed foods from Malaysia are exported to more than 200 countries, producing an annual export value of more than RM13billion (Malaysian Investment Development Authority, 2012).A representative sample consisting of fifteen firms located in Kuching, Sarawak was used for this study. Results indicated that majority of the firms adopted market penetration strategy due to its perceived low-risks and ease of implementation that do not overstrain organizational resources. Notwithstanding the type of strategies adopted, the most crucial success factors was found to be firm’s ability to respond to market signals, personal networking and systematic operational management of the firm.

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