Birmingham Insights on Asia – (6) Implications and Recommendations for Malaysian E-Commerce

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This comment is based on Anson Lim’s Dissertation, Export Intermediaries within The Modernized Structure of E-Commerce and The Prevalence of Internet Based Distribution Channels,written under the supervision of Prof. Michael Czinkota at the University of Birmingham, UK.

Continued:

Given the broad spectrum of online capabilities, assuming the combined roles of distributor and intermediary within the scope of a developing marketplace will enhance the exposure of intermediaries as well as ensure that profitability is aligned with long term exporter objectives. Motivational structures have offered incentives to intermediaries for their successes in foreign market though an increased capitalization and opportunity for contract preservation. The reality is that within the broadening online marketplace, these once outside participants may now integrate their services with distribution channels at a much lower cost incidence than setting up a brick and mortar establishment. As export intermediaries are active participants in the social and economic structure of Malaysia, their understanding of market operations gives them an inside advantage, one which enables rapid transitioning from middle-man to purveyor. The manufacturing relationship is contractually established; however, through integration of broader spectrum distribution channels, the intermediary firm will be protecting their investment and ensuring that products reach the consumers in a profitable manner.

In terms of technical service diversification as well as the incorporation of resource management techniques, the knowledge capital boasted by intermediary firms remains a leveragable asset, one which should be intimately integrated into operations offerings in the future. Such capabilities include consolidation services which reduce the overall cost of transport and distribution across Malaysia’s borders.

Secondly, research demonstrates that in spite of the emphasis which manufacturing firms place on technical expertise and knowledge capacities of intermediaries, practical application of such skill sets falls short of expectation. the expectation o f authority, and thereby, the transitioning skills which enhance the perception of intermediary value continue to challenge and evolution of skill and capacity in order to  accurately integrate the broad spectrum of changes which continues to alter Malaysia’s market. knowledge of tariff changes, pricing decisions a=, and technical support all fell within the lowest ratings among respondent intermediaries, and given the ease of transition from brick and mortar distribution to electronic online channels. these knowledge schemes offer opportunities to remain extremely competitive.

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Birmingham Insights on Asia – (5) Implications and Recommendations for Malaysian E-Commerce

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This comment is based on Anson Lim’s Dissertation, Export Intermediaries within The Modernized Structure of E-Commerce and The Prevalence of Internet Based Distribution Channels,written under the supervision of Prof. Michael Czinkota at the University of Birmingham, UK.

Literary analysis has demonstrated that researchers have adapted to include both internet and conventional operations within the scope of intermediary responsibilities. From this perspective, the nature of intermediary functions within the scope of international relationships continues to evolve to match the evolution of manufacturer initiatives.

Given the prevalence of internet users throughout the globe, the remarkable nature of internet use increases in Malaysia over the past decades, internet resources are essential to ensuring competitive marketplace expansion through foreign exports.

Summarily, Malaysian intermediaries highlight the improved performance that internet services have enacted within their organizations; therefore, the support structure continuous to be implemented, the future of commerce hinging on its effective manipulation.

One method of competition with the coming Malaysian internet boon is to establish marketing footholds within popular social networking sites and online forums in order to further the distribution of manufacturer products. Online distribution channels are one mode of enhancing usability, and in addition, the communicative nature of such resources will enhance the manufacturer offering among consumers.

Allowing niche marketing to function within a participative capacity, consumers should be encouraged to review products, retrieve cost savings via promotions, and explore options for customization. As the online community continues to dictate what is a successful product in the scope of Malaysian commerce, the evolution of manufacturer offerings will come as a direct result of intermediary communication.

Similarly, the role of the intermediary must adjust to met the demands of these participants, ensuring that long term brand recognition and loyalty schemes are effectively integrated along the most popular channels. The method behind this strategy is one which dramatically alters the responsibilities of intermediary operation; however, the leveraged knowledge capital and foundation of foreign business networks remains stable and necessitated.

 

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Birmingham Insights on Asia – (4) International Strategic Alliance Performance (High Technology Industry in Taiwan)

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This comment is based on Jo-Chun Chieh’s Dissertation written under the supervision of Prof. Michael Czinkota at the University of Birmingham, UK.

3, Organizational culture differences have more influence than national culture differences on International Strategic Alliance (ISA) performance, from the Taiwanese managers’ perspective. Two of the organizational cultural dimensions, professional and pragmatic orientation, ranked as the first two elements of importance when cooperating with a foreign partner, while two of the national cultural dimensions, uncertainty avoidance, long-term orientation, was ranked subsequently. Pothukuchi et al. (2002) addressed a similar concept with differences in organizational culture, compared to differences in national culture, considerably facilitating conflict and impeding cooperation between alliance partners.

4, The study justifies  that ISA practice indeed significantly interferes with the relationship between culture differences and iSA performance. John (1984) indicates that long and sticky partnership between cooperative enterprises reduces that potential for opportunistic behavior while the dissolution of a partnership often leads to poor decision-marketing, interaction and management of inter-organizational relationships. Complementary resources, absorptive capacity, commitment, and trust are important willingness to work together (Day & Klein, 1987). This partnership can evolve positive or negative consequences, depending on how Taiwanese managers implement their managerial practices with foreign partners.

 

Related Article: Birmingham Insights on Asia – (3) International Strategic Alliance Performance (High Technology Industry in Taiwan)

Birmingham Insights on Asia – (3) International Strategic Alliance Performance (High Technology Industry in Taiwan)

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This comment is based on Jo-Chun Chieh’s Dissertation written under the supervision of Prof. Michael Czinkota at the University of Birmingham, UK.

The study investigated the perspective of Taiwanese managers, thereby examining the impact of national and organizational culture differences and International Strategic Alliance (ISA) practices on ISA performance. Four findings can be concluded as follows.

1, National culture differences partly influence ISA performance, especially in the uncertainty avoidance and long-term orientation dimensions. This finding corresponds to one of the cultural functions proposed by Schneider (1989). He states that culture serves two functions, to solve external adaptation and internal integration problems. Uncertainty avoidance and long-term orientation especially impact on external adaptation. In other words, Taiwanese managers in the high-technology industry emphasize and are good t coping with opportunities and threats from the external environment, as well as being good at developing ISA strategies with foreign alliance partners. on the other hand, power distance, individualism and masculinity influence employee relationships within an organization.

2, Organizational culture differences also partly influence ISA performance, especially in professional and pragmatic (market -oriented) dimensions. Kasper (2001) associates corporate culture and market orientation, claiming that “market oriented organizations are open, employee-oriented, results-oriented, pragmatic, professional…”. This finding reflects that Taiwanese managers in the high-technology industry emphasize the importance of building objectives and obtaining new knowledge when cooperating with ISA foreign partners. Kasper (2001) also associates innovation, stating that customer contacts and customer participation in the R&D procedure are the basis of innovation. This notion implies that Taiwanese managers have high consciousness about global competition and pay attention on balancing innovation and market orientation.

Stay tuned for two more conclusions on our next Birmingham Insights on Asia.

Birmingham Insights on Asia — (2) The Impact of the Government Policy on the Small and Medium-Sized Enterprises’ (SMEs) Export Activities in China

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This comment is based on Zheng Guan’s Dissertation written under the supervision of Prof. Michael Czinkota at the University of Birmingham, UK.
Recommendations for the Government Sector
1) Enhance SMEs’ export assistance and promotion activities. The government should develop more preferential export policies