Journal Screenshot

International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

Social Networks in The Development of Rural Malay Herbal Entrepreneurship in Malaysia

Kamal Chandra Paul, Ismi Arif Ismail

http://dx.doi.org/10.6007/IJARBSS/v10-i16/8426

Open access

Previous studies found that networking is the key point for the entrepreneurship development. It has been long believed that social networks always influence entrepreneurship growth. The aim of this study is to investigate how rural Malay family-based herbal entrepreneurs are using social networking to develop their herbal entrepreneurship. It is a phenomenological qualitative research with eight rural Malay herbal entrepreneurs in Peninsular Malaysia namely Kelantan, Kedah, Pahang, Perlis and Terengganu. A purposive sampling approach was used to select the entrepreneurs residing in the rural areas and the selection criteria in the study also included those who have run their business with family members for at least the past four years with a minimum of three products. The findings of this study showed that the five states’ rural Malay herbal entrepreneurs are using social network among own community peoples, not like other states entrepreneurs’. As a result, herbal entrepreneurship is not developing owning to lack of social network with other state entrepreneurs and customers, suppliers, as well as financial constraints, technical knowledge. Finally, based on the findings of this study, the entrepreneurs need consistent trainings from the government and other related government link companies on how to develop social network with others and the importance of social network for their entrepreneurship development.

Ahmad, N. H., Halim, H. A., and Zainal, S. R. M. (2010). Is Entrepreneurial Competency the Silver Bullet for SME Success in a Developing Nation, International Business Management, 4(2), 67-75.
Ann, W. S. (2006). The Business Secret of Chinese people (Rahsia bisnes orang China). Kuala Lumpur: PTS Professional Publishing Sdn. Bhd.
Audretsch, D. B. (2007). Entrepreneurship capital and economic growth. Oxford Rev. Econ Policy, 23: 63-78.
Barr, A. (2000). Social capital and technical information flows in the Ghanaian manufacturing sector, Oxford Economic Papers, 52(3): 539-559.
Batjargal, B. (2010). Network dynamics and new ventures in China: A Longitudinal study. Entrepreneurship & Regional Development, 22(2): 139-53.
Bosma, N., Hessels, J., Schutjens, V., Van Praag, M., and Verheul, I. (2012). Entrepreneurship and Role Models, Journal of Economic Psychology 33(2), 410-424.
Brewer, J., and Gibson, S. W. (2014). Necessity entrepreneurs: Microenterprise education and economic development (pp. 160-182). Cheltenham, UK: Edward Elgar Publishing Ltd.
Burt, R. S. (1992). Structural Holes: The Social Structure of Competition. Harvard University Press: Cambridge, Massachusetts, and London, England.
De Jong, J. P. J. (2013). The Decision to Exploit Opportunities for Innovation: A study of High-Tech Small-Business Owners, Entrepreneurship: Theory and Practice, 37(2): 281-301.
Ellitan, L. (2002). Factors influencing the success of technology adoption: A case study of Indonesian manufacturing firms. Master’s thesis, Universitas Kristen Petra, Surabaya, Indonesia.
Fafchamps, M. (2001). Networks, communities and markets in Sub-Saharan Africa: implication for firm growth and investment. Journal of African Economics 10: 109-142.
Fafchamps, M. (2004). Market institutions in Sub-Sharan Africa, Theory and evidence, London: MIT Press.
Fafchamps, M. (1997). Trade credit in Zimbabwean manufacturing. World Development, 25(5): 795-815.
Faridah, S. (2001). Bumiputra Commercial and Industrial Community in the Food-Processing Industry: An Analysis of Institutional Support. Humanomics, 17(1):86-98.
Gomez, E. T. (1999). Chinese Business in Malaysia: Accumulation, Accommodation and Ascendance. Richmond: Curzon Press.
Gomez, E. T., Loh, W. L., and Lee, K. H. (2004). Malaysia. In Gomez, E. T. & Michael Hsiao, H. H. (Ed), Chinese Business in Southeast Asia (62-84). London and New York: Routledge Curzon.
Granovetter, M. (1985). Economic action and social structure: A theory of Embeddedness. American Journal of Sociology, 91(3): 481-510.
Hamidon, S. (2009). Development of Malay Entrepreneurship in Malaysia. PhD thesis, Massey University, Auckland, New Zealand.
Hamilton, G. G. (1996). Asian Business Network. Berlin: Walter de Gruyter.
Hansen, E. L. (1995). Entrepreneurial network and new organization growth, Entrepreneurship: Theory & Practice, 19(4): 7-19.
Hashim, M. K. (2007). SMEs in Malaysia: A Brief Handbook. Petaling Jaya: August Publishing.
Hawa, Z. J. (2011). Growing Our Herbal Industry. Retrieved from http://pmr.penernagan.gov.my/index.php/sosial/11684
Hoang, H., and Antoncic, B. (2003). Network-based research in entrepreneurship- A critical review. Journal of Business Venturing, 18(2): 165-87.
Ibrahim, J. (2006). The scientific values of Malaysian herbal products, Malaysian Journal of Health Sciences, 4(1): 59-70.
Ismail, R., & Sulaiman, N. (2007). Technical efficiency in Malay manufacturing firms, International journal Business Society, 8(2): 24-37.
Jack, S. L. (2005). The role, use and activation of strong and weak network ties: a qualitative analysis, Journal of Management Studies, 42(6): 1233-1259.
Jack, S. L. (2010). Approaches to studying networks: Implications and outcomes, Journal of Business Venturing 25(1): 120-37.
Jamai, A. J. (2006). Malay traditional medicine: An overview of scientific and technological progress, Special Feature: Traditional Medicine: S &T Advancement, Tech Monitor. Nov-Dec 2006: 37-49.
Johannisson, B. (1988). Business formation: A network approach. Scandinavian Journal of Management, 4(3-4): 83-99.
Kasim, A. Z. A. (2007). Herbal biotechnology development: The way forward & market access opportunities. Paper presented at EUM-BIO Business Partnering Seminar, MATRADE Exhibition and Conference Centre, Malaysia 25 October.
Katungi, E., Machethe, C., and Smale, M. (2007). Determinants of social capital formation in rural Uganda: implication for group-based agricultural extension approaches, African Journal of Agricultural and Resource Economics 1(2): 167-190.
Kirzner, I. M. (1973). Competition and entrepreneurship, University of Chicago Press Chicago Press, Chicago.
Klyver, K., and Foley, D. (2012). Networking and culture in entrepreneurship. Taylors & Francis.
Kotkin, J. (1993). Tribes: How Race, Religion, and Identity Determine Success in the New Global Economy. New York: Random House.
Larson, A. (1991). Partner networks: Leveraging external ties to improve entrepreneurial performance. Journal of Business Venturing, 6(3): 173-188.
Ling, C. K., Selvadurai, S., and Hamid, B. A. (2009). Malay youth entrepreneurship in Malaysia: An empirical update. Malaysian Journal of Society and Space, 5: 2955-67.
Man, T. W., Lau, T., and Chan, K. F. (2002). The competitiveness of small and medium enterprises: A conceptualization with focus on entrepreneurial competencies, Journal of Business Venturing, 17(2): 123-142.
McMullen, J. S., Bagby, D. R., and Palich, L. E. (2008). Economic freedom and the motivation to engage in entrepreneurial action, Entrepreneurship Theory and Practice, 32: 875-895.
Ministry of Health. (2011), Malaysia National Pharmaceutical Control Bureau, Ministry of Health Malaysia.
Murray, H. (2011). Expanding the Malaysian herbal industry by developing the farmer-government University Nexus. Processing of the 7th Malaysia Agro-Bio International Conference with the 12th Malaysian International Food and Beverage Trade Fair, July 12-15,2011, Putra World Trade Centre, Kuala Lumpur, Malaysia.
Nowinski, W., and Rialp, A. (2015). The Impact of Social Networks on Perceptions of International Opportunities, Journal of Small Business Management.
Paul, K. C., Hamzah, A., Abu Samah, Ismail, A. I., and D’Silva, L. J. (2013). Development of Rural Herbal Entrepreneurship in Malaysia, International Journal of Business Management, 8(18): 95-100
Paul, K. C., Hamzah, Abu Samah, B., Ismail, A. I., and D’Silva, L. J. (2014). Rural Malay Involvement in Malaysian Herbal Entrepreneurship, Journal of Asian Social Science 10(2): 202-208
Paul, K. C., Abu Samah, Ismail, A. I., and D’Silva, L. J. (2013). Technology Implementation Barrier of Rural Malay Herbal Entrepreneurship in Malaysia, Journal of Applied Sciences, 14(1):72-76.
Cheong, S. (1996). Bumiputra entrepreneurs in the KLSE, Petaling Jaya: Corporate Research Service.
Sarwoko, E., Armanu, S., and Hadiwidjojo, D. (2013). Entrepreneurial Characteristics and Competency as Determinant of Business Performance in SMEs, IOSR Journal of Business and Management (IOSR-JBM), 7(3): 31-38.
Shu, X. (2001). Entrepreneurship and economic growth. Proceeding of the Sino-Australian Conference of innovation and Entrepreneurship, Policy and Practice, November 7-9, 2001, Hangzhou, China.
Smith, B. R., Matthews, C. H., and Schenkel, M. T. (2009). Differences in entrepreneurial opportunities: The role of tastiness and codification in opportunity identification. Journal of small business management, 47(1): 38-57.
Subrahmanyam, S. (2019). Social network for entrepreneurship, International Journal of Commerce and Management Research, Impact Factor: RJIF 5.22, 5(1): 117-122.
Surin, E. F., Wahab, I. Ab., Hussin, M. H. F., Saad, M. N., and Harun, M. H. M. (2015), Using the Social Network for Business Sustainability: Examining Start-up SME Firms in Malaysia. Information Management and Business Review, 7(5): 18-26.
Tata, J., and Prasad, S. (2008). Social capital, collaborative exchange and microenterprises performance: the role of gender. International Journal of Entrepreneurship and Small Business, 5(3/4): 375-385.
Tehseen, S., Qureshi, Z. H., and Ramayah, T. (2018). Impact of Network Competence on Firms Performances among Chinese and Indian Entrepreneurs: A Multigroup Analysis, Research Article: 2018. International Journal of Entrepreneurship, 22(2).
Ucbasaran, D., Westhead, P., and Wright, M. (2001). The focus of entrepreneurial research: Contextual and process issues. Entrepreneurship: Theory and Practice, 25(4): 57-80.
Van Praag, C., and Versloot, P. (2007). What is the value of entrepreneurship? A review of recent research, Small Business Econ., 29(4): 351-382.
Ibrahim, Y., Jamil, A. Z., and Hashim, R. (1988). Small and Medium Scale Enterprises in Malaysia: Bumiputera participation. In Mohayidin, M. G. and Abd Hamid, S. (Ed), Small and Medium Enterprise in Malaysia: Technological and managerial capability (pp. 43-48). Kuala Lumpur: Small Business Development Centre, Universiti Pertanian Malaysia (now known as Universiti Puta Malaysia).
Zhao, X., Frese, M., and Giardini, A. (2010). Business owners network size and business growth in China: The role of comprehensive social competency. Entrepreneurship & Regional Development 22(7/8): 675-705.
Zizah, C. S., Ridzuan, M. S., Scott-Ladd, B., and Entrekin, L. (2007). SMEs Internalization: Discussing on how networking helps SMEs to go International. Proceeding of 4th SMEs in a Global Economy International Conference. Shah Alam: UPENA.

In-Text Citation: (Paul & Ismail, 2020)
To Cite this Article: Paul, K. C., & Ismail, I. A. (2020). Social Networks in The Development of Rural Malay Herbal Entrepreneurship in Malaysia. International Journal of Academic Research in Business and Social Sciences, 10(16), 381–391.