Experiences of high-growth technology firms in Malaysia and New Zealand

• Published in: Technology analysis & strategic management 2016-09, Vol.28 (8), p.901-915
• Main Authors: Ng, Poh Yen, Hamilton, Robert T.
• Format: Article
• Language: English
• Subjects: Business growth; Competition; Corporate taxes; Culture; Expenditures; Flexibility; Funding; government support; Governments; High growth; Human capital; Information technology; innovation; International comparisons; obstacles; Research & development expenditures; Strategic management; Technological change
• ISSN: 0953-7325; 1465-3990
• DOI: 10.1080/09537325.2016.1180355

How do technology firms experience high growth and the support available from governments? This qualitative study explores the experiences of high-growth technology-based firms in Malaysia and New Zealand. Case studies were developed for eight high-growth companies in the information and communication technology sectors of each country. The countries differ in national cultures and the forms of government support. There were no marked country differences in growth drivers. Growth was driven by innovation and flexibility within business-to-business sales relationships. These firms faced four obstacles: intense competition; liabilities of smallness; limited human capital; and funding ability. Malaysia offers broader mainstream support with favourable tax treatment of R&D related expenditure. In contrast, New Zealand's has been criticised for a highly targeted approach, although this is now broadening. Both countries appear to be converging on a hybrid approach combining mainstream and targeted support for growth businesses.