Productivity and Organisation Capital: The Malaysian Experience


Suresh Ramachandra, AUT University

Abstract: In the knowledge era, competitive strength of companies and countries depend on their ability to harness attributes that are inimitable by competitors. Malaysia, as a nation, embarked on a quest to be recognised as an industrialised nation by 2020 two decades ago. With only another ten years left for the achievement of the objective, this research attempts to track its progress using the concept of organisation capital. Using the firm-level data from the year 2000 to 2009, this research finds that there is sufficient accumulation of organisation capital to steer productivity comparable to those of the USA and Japan. However, such accumulation is yet to penetrate the business sector at large.