TY  - JOUR
T1  - An Externalization Process among Penang Electronics Industry:
Issues and Way Forward
AU - Leh, Fauziah Che 
JO  - The Social Sciences
VL  - 11
IS  - 30
SP  - 7148
EP  - 7152
PY  - 2016
DA  - 2001/08/19
SN  - 1818-5800
DO  - sscience.2016.7148.7152
UR  - https://makhillpublications.co/view-article.php?doi=sscience.2016.7148.7152
KW  - penang industrial areas
KW  -electronic firms
KW  -Externalization
KW  -IT services
KW  -R&D
AB  - In the context of electronics industry, the roles of R&D and IT component in the manufacturing
process are important concerns that may influence Just-In-Time delivery (JIT) services. However, the crucial
issue to be addressed in discussing the rapid development in electronics industry sector is pertinent to the main
factor which triggered the subsidiary firms to gain R&D and IT component services from outside and
not self-developed by the firms in location. By means of unstructured questionnaire and interview, a total of
30 electronics firms in Penang industrial areas were selected as respondents, were interviewed and studied. The
findings indicate that there are factors which was neither with a cost nor with quasi-dominant cost as the trigger
for externalization process among Penang electronics industry compared to the cost factors. As a way forward
with a view to boost the role of local R&D and IT services provider firms, this study suggests an approach that
can be adopted to enhance a positive image and experience of R&D and IT to cater to the electronic
manufacturing sector demand in Penang.
ER  -