Establishing in Malaysia-the Impact of Cultural Factors

JÖNKÖPING INTERNATIONAL BUSINESS SCHOOL

JÖNKÖPING UNIVERSITY

Establishing in Malaysia

The Impact of Cultural Factors

Master thesis within Business Administration Author: Tutor: Jönköping Dohlnér, Lisa Grom, Karin Dal Zotto, Cinzia June 2006

Acknowledgement

The authors would like to express their deepest gratitude to Kamala A. Yeap, lecturer at the School of Business and Law, INTI College Malaysia, for her help and guidance that made this study possible.

The authors would also like to express their appreciation to the representatives of the companies interviewed for their contribution to this study, as well as Tomas Dahl, trade commissioner at the Swedish Trade Council, and Helena Sångeland, Swedish Ambassador at the Swedish Embassy.

The authors would also like to thank their tutor Cinzia Dal Zotto for her support and supervision.

Jönköping, June 19th 2006

_________________________ Lisa Dohlnér

_________________________ Karin Grom

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Master’s Thesis within Business Administration

Title: Author: Establishing in Malaysia – The Impact of Cultural Factors Dohlnér, Lisa Grom, Karin Tutor: Date: Subject terms: Dal Zotto, Cinzia June 2006 Foreign direct investment, culture, Malaysia, establishment, SME

Abstract

Malaysia is one of the developing countries in the world that is on the verge to become developed (Internationella Programkontoret, 2003). In 2004, Malaysia had a growth rate around 7% (United Nation Statistic Division, 2005) and it is implied that the Malaysian market is continuously growing. One factor that can increase the growth rate in Malaysia is foreign direct investments (FDI), which is, according to Chino (2004), one factor of sustainable growth. It has been noticed that the world is getting smaller and more companies are looking for opportunities outside the country boarders and in this situation Malaysia is an attractive alternative for establishment. The purpose of this study is to investigate and deepen the understanding of cultural factors...