Sample Research Proposal

IMPACT OF INTEGRATED MARKETING COMMUNICATION ON MALAYSIAN
SMES
A Research Proposal
By:
Mohd Faiz Hilmi
S-ED0007/05 (P-ED0007/05)
AGW705 Advanced Marketing Seminar

Facilitator:
Dr. Nabsiah Abd. Wahid
Marketing Section Chair
Consumer Mkt. Based Research Cluster Head
SCHOOL OF MANAGMENT
UNIVERSITI SAINS MALAYSIA
2008
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Table of Content
INTRODUCTION....................................................................................................................3
1.1 Introduction........................................................................................................................3
1.2 Background of the Study...................................................................................................3
1.3 Research Problem ..............................................................................................................7
1.4 Research Objectives...........................................................................................................8
1.5 Research Questions............................................................................................................8
1.7 Significance of the Study Theoretical and Practical....................................................8
1.8 Organization of Remaining Chapters ..............................................................................9
LITERATURE REVIEW .....................................................................................................10
2.1 Introduction......................................................................................................................10
2.2 Small and Medium Scale Entrepreneurs (SMEs).........................................................10
2.3 Resource Based View.......................................................................................................17
2.3.1 Origin of RBV .......................................................................................................18
2.3.2 Criticisms ...............................................................................................................18
2.4 Integrated Marketing Communication..........................................................................20
2.4.1 Components of Integrated Marketing Communication ..........................................20
2.4.2 Benefits of Integrated Marketing Communication .................................................22
2.5 Framework Elements and Hypotheses...........................................................................23
RESEARCH METHODOLOGY .........................................................................................26
3.1 Introduction......................................................................................................................26
3.2 Type of Research..............................................................................................................28
3.3 Research Design and Procedure .....................................................................................28
3.4 Variables and Measurement ...........................................................................................29
3.5 Data Collection .................................................................................................................29
3.6 Survey................................................................................................................................30
3.6.1 Administration of the Survey Questions.............................................................30
3.6.2 Population and Sample.........................................................................................30
3.7 Statistical Analysis ...........................................................................................................31
3.7.1 Non Response Bias ................................................................................................31
3.7.2 Factor Analysis......................................................................................................32
3.7.3 Reliability...............................................................................................................33
3.7.4 Descriptive Statistics.............................................................................................34
3.8 Test of Relationship .........................................................................................................34
3.8.1 Correlation Analysis .............................................................................................34
3.8.2 Regression Analysis ..............................................................................................35
RESULT..................................................................................................................................38
4.1 Expected Findings ............................................................................................................38
References...............................................................................................................................39
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CHAPTER 1
INTRODUCTION
1.1 Introduction
This chapter introduces the research proposal to be undertaken by way of providing
background to the research and describing the research problem. It introduces the underlying
assumptions upon which the research will be based and justifies the importance of the
research and the expected contributions it will make. The methodology to be used and the
scope and limitations of the proposed research is discussed. Finally an outline of the whole
research proposal is provided.
1.2 Background of the Study

Businesses were established with one major objective in mind, which is to make
money. Even though it sound simple but the actual process is complicated and the complexity
of running a business entity is increases dynamically. In todays dynamic environment,
businesses must be able to generate profit not only by utilizing its internal capabilities but
also correctly analyze and understand the surrounding external factors that have an impact on
its operation. Only by successful utilization of its internal resources and correctly responding
to external factors businesses can achieve a competitive edge against its competitors.
However, once achieved, it is imperative for a business entity to continuously work towards
maintaining those competitive advantages because it is natural for competitor to imitate
successful strategy. Many scholars have talked about competitive advantages (Porter, 1980;
Wernerfelt, 1984; Hamel and Prahalad, 1994) and each of their thoughts has its own focus,
strengths and weaknesses. Furthermore not one of them is suitable for all situation and
context. Porter (1980) introduced five competitive forces which analyze external factors
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affecting a particular business entity. The five forces are the entry of new competitors, threat
of substitutes, bargaining power of buyers, bargaining power of suppliers and rivalry among
existing competitors. Understanding of the environment where the firm operates is very
crucial for the success of the firm. However firms must not forget to analyze and focus on
internal factors. Only by having strategic fit between the internal factors and external or
environmental condition a firm can developed a much more efficient and robust strategy that
will lead towards superior performance.
In evaluating internal resources and capabilities of a firm, Resource-Based View
(RBV) fundamental principle is that the basis of competitive advantage of a firm lies in the
application of the bundle of available resources available to the firm (Wernerfelt, 1984).
Undeniably, analysis based on RBV that focuses on firm resources combined with thorough
understanding of the Porters five forces surrounding the business environment will helped
firms in planning and implement its business strategies.
Penrose (1959) was among the earliest scholar who talked about using the firms
resources as a means of achieving business objective. Subsequently, Wernerfelt (1984) who
also attempted to look at firms in terms of their resources pointed out that By a resource is
meant anything which could be thought of as a strength or weakness of a given firm. More
formally, a firm's resources at a given time could be defined as those (tangible and intangible)
assets which are tied semi permanently to the firm. Barney (1986a, 1986b, 1991) added the
concept of gaining competitive advantages by acquiring resources which can provided
normal economic rents to the firms. Upon achieving competitive advantages, firms will then
need to focus on maintaining the competitive advantages as long as possible. From RBV
perspectives, a firm can achieve sustained competitive advantages if its resources fulfill the
following requirements; valuable, rare, inimitable and non-substitutable (Barney, 1990).
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In todays dynamics business environment having good strategies alone is not enough.
Businesses must be able to evolve in synchronize with the environment. One important way
to continuously evolve is through applying innovativeness ability. One of the most
comprehensive concepts of innovation is to be found in the definition formulated by
Schumpeter (1942). Joseph Schumpeter defined economic innovation in 1942 as:
1. The introduction of a new good that is one with which consumers are not yet
familiaror of a new quality of a good.
2. The introduction of a new method of production, which need by no means be founded
upon a discovery scientifically new, and can also exist in a new way of handling a
commodity commercially.
3. The opening of a new market that is a market into which the particular branch of
manufacture of the country in question has not previously entered, whether or not this
market has existed before.
4. The conquest of a new source of supply of raw materials or half-manufactured goods,
again irrespective of whether this source already exists or whether it has first to be
created.
5. The carrying out of the new organization of any industry, like the creation of a
monopoly position (for example through trustification) or the breaking up of a
monopoly position
This particular research is very much interested to study the phenomena that has been
explain earlier, how firm achieved superior performance. Since looking at both external and
internal factors in a single study seems to be very interesting, it is beyond the capacity of the
author. Due to that this study will narrow down its scope by focusing on the internal
resources that if properly utilize can lead to firms performance. Specifically, this study will
focus on how resources can increase innovativeness of the firms and with high
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innovativeness, firms will gain superior performance. Since studying all the firms is just not
feasible, this study will only focus on Small and Medium Enterprises (SMEs) located in
Malaysia. The main reason for the focus on Malaysian SMEs is based on the importance of
SMEs to Malaysia economy. SMEs have been acknowledged as the strategic thrust in
Malaysia economy based on various reports of government agencies (SME Annual Report
2005, 2006: 9th Malaysia Plan, 2006; Third Industrial Master Plan (IMP3) 2006 2020,
2006).
Innovations and Small and Medium Enterprises (SMEs) have been very much at the
center of attraction lately. Everybody talks about it, the newspapers, magazines, and even
politicians. These situations arise from the fact that SMEs are considered as the engine of
growth for Malaysia especially in our effort of achieving the developed nation status. SMEs
has been looked at as a technology provider and technology enabler to the industries and
constitutes of 96.1% of total establishment in Malaysia as stressed by Hafsah Hashim (2006),
CEO of Small and Medium Industries Development Corporation in an article published by
The Star dated 11 February 2006.
The importance of Innovations and SMEs has also gotten the attention of top leader of
this nation. Malaysian Prime Minister Datuk Seri Abdullah Ahmad Badawi pointed out that
innovation is one of the vital traits for Malaysia to face an increasingly competitive world
(Habib, Leong and Pooi Ling, 2005). The Prime Minister further stressed out the important of
innovation and SMEs in his Keynote Address at the National Innovation Summit 2004 at the
Palace of the Golden Horses on 29 April 2004;
...innovation should not be confined to scientists and the industrial giants. Innovation
is something that we all can, and should, think about to improve our daily lives. For
example: Innovations in agro-based areas should be conducted to improve the
livelihood of many rural folk. Innovation in schools should be pursued to nurture the
creativity and inquisitiveness of our young. Small and medium-scale enterprises
(SMEs) should gain access to more technological and engineering expertise to
enhance their operations. Corporations should utilize science to sharpen their
competitive edge and provide better goods and services to consumers. In short, all
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levels of society can derive much benefit from innovation, whether directly or
indirectly.
The need for innovation is obvious and crucial for business organizations operation
in a continuous, uncertain and competitive environment (Hashim, Mahajar and Ahmad,
2003).
1.3 Research Problem

Successful performance or growth of SMEs is largely determined by the distinctive
competencies and competitive advantage that has been earned or developed by the SMEs.
According to Barney (1991), for a resource to be a potential source of competitive advantage
it must allow the firm to adept and implement strategies that will improve its efficiency and
effectiveness. Therefore, SMEs need to explore how their resources can be transformed into
competencies and competitive advantages that will put them in an advantageous position
against their competitor. In pursuing the process of exploration and transformation of
resources into competencies and competitive advantages, SMEs face diverse challenges and
problems. The major stimulus for this study is to investigate the factors that can lead to
improving the performance of SMEs in Malaysia by focusing on firms resources and
innovativeness characteristics that will enable them to face those challenges and problems.
According to SME Annual Report 2005 published by Bank Negara Malaysia, SMEs
represented 99.2% of the total business establishments in Malaysia. Due to that large number,
the performance of SMEs will have a huge impact on the economy of this country. Strong
and successful SMEs will definitely benefit the Malaysian economy. However, as mentioned
earlier, SMEs are facing huge challenges. Currently, SMEs are very vulnerable towards the
changes taking place in the world economy and there is an urgent need for SMEs to enhance
their competitive advantages (Shen-Li, 2005). Furthermore it is vital to build a strong SME's
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base if Malaysia is serious in creating home bred Multinational Corporation (MNC). A strong
local business environment will also help to attract more joint ventures between Malaysian
and foreign companies. It has become mandatory for SMEs to exploit their distinctive
competencies, to gain sustainable competitive advantages and to seek different ways to
improve performance. One way to develop and enhance competitive advantages is through
proper utilization of resources and enhancing the marketing capabilities of the SMEs. Even
though every business entity understands the need to properly utilize their resource in
achieving their business objective and superior performance, not many of them are successful
at actually doing it. In addition to that, not much information is known about how marketing
capabilities influence performance.
1.4 Research Objectives

The aim of this research is to provide the primary information and analysis on the
current marketing related issues in Malaysian SMEs with the focus on the application of
IMC.
1.5 Research Questions
This research will be focusing on answering the following questions:
1. Does IMC enhance the performance of Malaysian SMEs?
1.7 Significance of the Study Theoretical and Practical

Not many studies conducted in Malaysia using RBV as the theoretical basis. One of
the rare researches was the one conducted by Wafa, Hashim and Mohamad (2001) focusing
on export orientation of Malaysian SMEs. Therefore this study will be based on RBV
framework and trying to contribute to a better understanding of resources of Malaysian SMEs
as a means of sustained competitive advantages. Hopefully this effort will spark further
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interest among researcher in Malaysian to start looking into using RBV as the model for their
research.
Another contribution of this study is the focus on integrated marketing
communication capabilities, exploring the marketing practices of Malaysian SMEs. From a
practical perspective, this study is trying to figure out how SMEs can improve their business
performance by utilizing integrated marketing communication which is within their control.
This research is also expected to explain the marketing characteristics of high performance
firms. This valuable information can help out other SMEs in enhancing their competitive
advantages.
1.8 Organization of Remaining Chapters

This proposal consists of five chapters. Chapter two follow on from the Introduction
by describing and analyzing the extent of SMEs, IMC and resources literature. Chapter three
introduces the proposed research framework and hypotheses.
Chapter four outline the
methodology proposed for this research. Chapter five provided a brief discussion of the
expected findings and implication that is expected to be derived from this research.
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CHAPTER 2
LITERATURE REVIEW
2.1 Introduction
2.2 Small and Medium Scale Entrepreneurs (SMEs)

Contribution of SMEs towards the Malaysian economy is huge both in term of
employment opportunity as well as output or value-added. According to SME Annual Report
2005 published by Bank Negara Malaysia, SMEs consisted of 518,996 or 99.2% of the total
number of business establishments. Those SMEs contributed RM154 billion or 47.3% of the
total value-added. At the same time they employed three million people or 65.1% of total
employees out of the whole business establishment. Furthermore SMEs in Malaysia
contributed around six percent to Malaysias Gross Domestic Product (GDP) (Yakcop, 2005).
These figures undeniably show that SMEs is a major contributor in Malaysian economy. In
addition to that, Tan Sri Nor Mohamed Yakcop (2005) mentioned in his keynote address
during the CEO Forum of Development Finance Institutions 2005 'Revving Up SMES As
The Engine Of Growth' that many of the successful international businesses all over the
world started out as SMEs, bearing testament to the fact that today's SMEs are tomorrow's
business leaders and innovators.
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Figure 2.1 Business establishments in Malaysia based on The Census of Establishment and
Enterprises 2005 (adapted from SME Annual Report 2005, Bank Negara Malaysia)
To further describe the importance of SMEs and innovation, Malaysian Government

gives a detail focus for both SMEs and innovation in the 9th Malaysian Plan. One of the
policy thrusts of the Ninth Malaysia Plan is to accelerate industrial upgrading and sustain
competitiveness will include developing innovation-driven SMEs to compete in global
markets (9th Malaysia Plan, 2006). Some of the key points extracted from the 9th Malaysia
Plan are;
In the Ninth Plan period, efforts will be intensified to develop the countrys human
capital in order to drive the transformation to a knowledge-based economy.
Programmes and projects will be undertaken to deliver the National Missions
priorities of improving the education system, increasing innovation and ensuring
holistic human capital development. (page 30)
The strategy will be to focus on creating high performance and resilient
SMEs, equipped with strong technical and innovation capability as well as managerial
and business skills to realise new job opportunities and improved market access. This
will be with the view to strengthening the capacity and capability of domestic SMEs
to produce innovative as well as quality products and services at competitive costs
and integrate into the international supply chain.
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Another strategy will be building a platform for enterprise start-ups and incubation
that will create the pool of new and innovation-driven entrepreneurs needed to sprout
new businesses and services. Towards this end, the Government will promote the
setting up of technology incubators for the purpose of nurturing new firms and
entrepreneurs as well as expanding capacity for innovations and related services.
The Government will continue with the provision of industrial sites at more
competitive rates for SMEs. During the Ninth Plan, a total of RM927.5 million will be
provided as soft loans to state economic development corporations and regional
development authorities to develop industrial sites and special
SME parks, including agriculture and halal centres. In addition, an allocation of
RM833 million will be provided to build business premises and provide office space
at strategic locations. (page 127 129)
Increased attraction towards SMEs also has attracted researchers interest to focus
their study on SMEs. One of the leading scholars on SMEs in Malaysia, Mohd Khairuddin
Hashim (2000) stated four reasons for that increased interest in SMEs;
1. The change in governments SMEs development policy.
2. The growth in number of SMEs.
3. Continuing government assistance to SMEs.
4.
Increasing interest in small business at institutions of higher learning.
Moreover SMEs has attracted huge attention especially after Ninth Malaysia Plan gives so
much attention to the developments and needs of SMEs. No doubts that SMEs has been
trusted as the engine of growth for Malaysia.
Before exploring further into the SMEs in Malaysia, it is necessary to realize that
there is more than one definition on SMEs available in Malaysia. Furthermore, there are
different definitions being used in different countries beyond Malaysia. In Malaysia various
agencies provides their own definitions of SMEs. Definitions differ in terms of several factors
such as number of full time employees or sales turnover figures and generally defined into
two broad categories which are manufacturing, manufacturing related services and agrobased industries as on categories and services, primary agriculture and information and
communication technology in another category.
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Table 2.1 Definition of SMEs by Sales Turnover as published in SME Performance Report
2005
Size
Micro
Small
Medium
Manufacturing (including Agro-Based) and

Manufacturing-Related Services
Less than RM 250,000
Between RM 250,000 and less than RM 10
million
Between RM 10 million and RM 25 million
Services Sector including ICT and

Primary Agriculture
Less than RM 200,000
Between RM 200,000 and less than RM 1
million
Between RM 1 million and RM 5 million
Table 2.2 Definition of SMEs by Full-Time Employment as published in SME Performance

Report 2005
Size
Micro
Small
Medium
Manufacturing (including Agro-Based) and

Manufacturing-Related Services
Less than 5 employees
Between 5 and 50 employees
Services Sector including ICT and

Primary Agriculture
Less than 5 employees
Table 2.3 Distributions of SMEs based on The Census of Establishments and Enterprises
2005 by The Department of Statistics
Sector
Total
Manufacturing
Services
Retail,
Wholesale and
Restaurants
Finance
Total Services
Total Agriculture
Overall Total
Establishments
SMEs
Percentage of SMEs
Percentage of
Structure
39,219
37,866
96.6
7.3
119,980
118,662
98.9
23.0
312,245
311,234
99.7
60.2
19,291
451,516
32,397
523,132
19,108
449,004
29,985
516,855
99.1
99.4
92.6
98.8
3.7
86.9
5.8
100
Table 2.4 Major SME Statistics (adapted from SME Annual Report 2005)
Country
Malaysia
Japan
Taiwan
Korea
Thailand
Singapore
Germany
Indonesia
China
Philippines
Measures used in the definitions of

SMEs
Employment and sales
Employment and assets
Employment, sales and capital
Employment and fixed assets
Employment and fixed assets
Employment and sales
Assets and sales
Employment, sales and assets
% of total
establishments
% of total
workforce
99.2
99.7
97.8
99.8
99.6
91.5
99.7
99.9
99
99.6
65.1
70.2
77.2
86.7
69
51.8
79
99.6
69.7
69.1
% of SMEs
contribution to
GDP/total
value-added
(*)
47.3*
55.3
n.a
50*
38.9
34.7*
57.0 a
57
60*
32*
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Research conducted on Malaysian SMEs has been focused on various perspectives

(Sulaiman, Wafa and Hashim, 2003; Hashim, Zakaria and Ahmad Fawzi, 2004; Zakaria and
Hashim, 2004) and the numbers are still growing showing a steady interest on SMEs. Maybe
this is due to the fact that the number of SMEs is also growing rapidly. In 1998, SMEs
constitutes of 84% of total manufacturing establishments in Malaysia. Out of that, 88% are
small-scale while 12% are medium-scale. To further develop this sector of the economy,
Malaysian Government established Small and Medium Industries Development Corporation
(SMIDEC) in 1996 with the task to promote the development of SMEs which amounted to
11,855 registered businesses. Ponnusamy and Satkunasingam (2006) listed out challenges
and issues facing SMEs as follows:
1. Intensified Global Competition
2. New Emerging Technologies
3. Changing Export Competitiveness
4. Preparedness for Market Liberalization and Globalization
5. Shortage of Skills for the New Business Environment
6. Access to Finance
7. Biased Incentive Systems
8. Corporate Governance and Social Responsibility
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Table 2.5 Overview of research on SMEs in Malaysia
Author
Relevant variables and dimensions
Data sources and sample
Findings
Sulaiman, Wafa and

Hashim (2003)
Strategic Management: process, availability of plan, use of

consultant and dimension
Business Strategy: low cost, product differentiation, niche, growth,
harvest and vertical integration
Business Strategy: product differentiation, low cost, growth, niche,
harvest, vertical integration
Performance: ROI, ROS, ROA, Business Performance Composite
Index (BPCI = (ROS + ROI +ROA)/3)
Organizational Structure: complexity, formalization, centralization,
span of control, empowerment, open internal communication, interdisciplinary team and accessibility to resources.
Human Resource Practice: training and development, sharing skills,
extensive recruitment and selection, employment security, incentive
reward system and innovative work practice.
Organizational Culture: supportive leadership, readiness to change,
encouragement of new ideas and providing feedback, involvement in
planning change, free flow of ideas, criteria for judging success,
project review, having specific targets and tolerance of risks
Innovation Activity: improved product, improved services, new
products, new services, opening new markets, new sources of
supply, new methods of production and new ways of organizing.
Reason for Choosing Sourcing Strategies:
Purchasing Strategies: multiple sourcing, single sourcing, combined
100 SMEs in various industries,

face to face interviews using
structured questionnaires
SMEs have the ability to adopt

some for of rational strategic
management.
Interview conducted using

structured questionnaires on 100
managers out of 548 contacted,
response rate of 18.2%
Personal interviews conducted
using structured questionnaires
on 48 SMEs out of 300
contacted, response rate of 16%
Different SMEs in different

industries (environment) adopt
different business strategies.
28 responded to the survey

questionnaires out of 144,
response rate of 12%
Landscaping Adoption:
Environmental Factors: economic outlook, government influence,
competitive development, public scrutiny
Organizational Factors: environment sensitivity, structure, people,
cost implication
Management Factors: attitude, intention
Organizational Characteristics: turnover, number of employees,
business age, formal accounting training
94 usable responses out of 200,

response rate of 47% to the
survey questionnaires
More than 90% of respondents

adopted multiple sourcing over
single sourcing incongruous with
literature that favors single
sourcing.
The organizational buying behavior
theory is capable of explaining why
SMEs and large organizations in
Malaysia implement (or do not)
sustainable development project
such as landscaping.
The highest usage of accounting
information of SMEs was statutory
Hashim (2000)
Hashim, Zakaria and

Ahmad Fawzi (2004)
Zailani, Zalazilah,
Pong and Bin (2006)
Ndubisi, Nnaemeka
and Capel (2006)
Haron, Yahya, Ismail

and Hassan (2006)
75 returned (5 not usable due to

not fully answered)
Organizational structure, human

resource practices and
organizational culture are positively
related to innovation activity. To
improve innovativeness SMEs
should emphasize factors that are
positively associated with
innovation activity such as work
specialization, open internal
communication, empowerment and
use of inter-disciplinary team.
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Author
Relevant variables and dimensions
Findings
Extent of Usage of Accounting Information: statutory, budget,

additional
questionnaires out of 200 send

out, response rate of 37%.
Hashim and Nawi

(2006)
Purchasing Strategies: single sourcing, multiple sourcing, buyersupplier relationship

Performance: sales, assets, equity, net profits, number of employees
92 usable data (68 firms

interviewed, 24 completed
mailed survey questionnaires)
Hashim (2006)
Competitive Strategy: low cost, differentiation, niche, growth,

harvest, vertical integration
Organizational Structure: complexity, formalization, centralization
Performance: ROI, ROS, ROA, Business Performance Composite
Index (BPCI = (ROS + ROI +ROA)/3)
Personal interview using

structured questionnaires
conducted on 100 participants
out of 548 contacted, response
rate of 18.2%
Hashim and Zakaria

(2007)
Strategic Thinking: insight, foresight, focus, creativity, pragmatic,

holistic, competitive advantage, objectivity
Zakaria and Hashim

(2004)
Emphasize on E-Business
Perceived needs for E-Business
Perceived uses of E-Business
Perceived problems of adopting E-Business
48 completed questionnaires
returned from 400 mailed,
Structured questionnaires sent
out to 372 SMEs in Kedah &
Perlis, 47 returned/usable,
accounting information. Turnover

and number of employee were
positively related to the extent of
usage of the three types of
accounting information.
There is a positive relationship of
single sourcing and multiple
sourcing strategies with the
performance of SMEs.
Performance of SMEs vary with the
competitive strategies that they
adopted. Organizational structure
has a moderating effect on the
competitive strategy-performance
relationship in SMEs.
Malaysian SMEs do adopt strategic
thinking practices as suggested in
the literature.
Positive attitude of the SME owners
and managers towards E-Business.
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2.3 Resource Based View
Resource Based View (RBV) holds that firms can earn sustainable supra-normal
returns if and only if they have superior resources and those resources are protected by some
form of isolating mechanism preventing their diffusion throughout industry. RBV suggests
that there can be heterogeneity or firm level differences among firms that allow some of them
to sustain competitive advantage. RBV emphasizes strategic choice, charging the firms
management with the important tasks of identifying, developing and deploying key resources
to maximize returns (Fahy and Smithee, 1999). The essential elements of the RBV of the
firms are:
1. The firms key resources
2. Role of management in converting these resources into sustainable
competitive advantage (SCA) and lead to superior performance in market
place.
Resources can be classified in many ways but the common classification is based on
three categories which are tangible, intangible and capabilities (Coplin, 2002). In addition to
the classification, resources must possess certain requisite for them to be the sources of
competitive advantages. Coplin (2002) summarized those requisites from three different
scholars namely Peteraf (1993), Barney (1991) and Grant (1991).
Table 2.6 Resources Requisites (adapted from Coplin (2002))

Peteraf (1993)
Heterogeneity
Limits ex post to competition
Limit ex ante to competition
Imperfect mobility
-Imperfectly mobile resources
-Shared rents
Author
Barney (1991)
Valuable
Rare
Not imitable
Non substitutable
Grant (1991)
Durable
Transparent
Replicable
Transferability
Appropriability
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2.3.1 Origin of RBV

The work of Penrose (1959) has inspired many scholars such as Wernerfelt and Teece
who contributed a lot to the field. Wernerfelt (1984) first coined the term RBV. However the
modern RBV is said to be much contributed by the work of Jay B. Barney. Barney (1991)
stated that abnormal rents can be earned from resources that are:
1. Valuable (enable the firm to conceive or implement strategies that improve its
efficiency / effectiveness)
2. Rare (exclusively possessed by the firm)
3. Imperfectly Imitable (due to historical conditions, ambiguous, and social complex)
4. Non-Substitutable (no other equivalent resources available).
2.3.2 Criticisms
The Resource Based View is not free from weaknesses or criticisms. Four key
criticisms have been brought forward against RBV (Priem and Butler, 2001). In simple
words, the criticisms are:
1. The RBV is tautological or self verifying
2. Different resource configurations can generate the same value for firms and thus
would not be competitive advantage
3. In the argument, the role of product markets is underdeveloped in the argument
4. There is limited prescriptive implications in the theory
In addition to the above, it is also difficult to find a resource which satisfies the Barneys
entire VRIN criterion. Furthermore the concept rare is obsolete and it is difficult to
empirically test the concept of sustainable due to lack of exact definition of sustainable.
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Table 2.7 Overview of research on Resource Based View
Author
Relevant dimensions and variables
Findings
Wafa, Hashim and

Mohamad (2001)
Firm orientation: export oriented, domestic

Distinctive Capabilities: general administration, operations, product
development, marketing, finance, personnel
Wu, Yeniyurt, Kim and

Cavusgil, (2006)
Performance: marketing. financial

Supply Chain Capabilities: information exchange, coordination,
activity integration, responsiveness
IT Alignment: technology adoption
IT Advancement: IT compatibility
100 firms interviewed from a list

of 748 firms located in four
northern states in Malaysia
obtained from Labor Department
184 responses received from
web-survey emailed to 1949
target managers obtained from
Council of Supply Chain
Management Professional,
response rate of 10.7%
Ray, Barney and

Muhanna (2004)
Performance: customer service quality, self assessment, weighted

retention ratio, complaints ratios
Firm Resources: service climate, managerial IT knowledge,
technological resources in customer service, Investment in customer
service
30 insurance companies
responded to the survey
questionnaires
Barney (1991)
Firm Resources: valuable, rare, imperfectly imitable, substitutability
Analyze the potential of a broad

range of firm resources to be
sources of sustained competitive
advantage.
Export oriented SMEs have

relatively higher level of
distinctive capabilities compared
to the domestic firms.
Supply chain capabilities are
able to transform IT-related
resource into higher value for a
firm. The improvement in supply
chain capabilities through IT
allows the firm to learn and
respond to market changes better
and quicker than competitors.
Firm may possess competitive
advantages at a level of business
processes that are not reflected
in a firms overall performance.
Intangible and socially complex
capabilities such as service
climate and managerial IT
knowledge are positively related
to customer service
performance.
RBV provides a framework to
study whether or not a particular
firm resource is a source of
competitive advantage. Is the
resource valuable, rare,
imperfectly imitable, and are
there substitutes for that
resource?
19
Research Proposal
2.4 Integrated Marketing Communication
Integrated Marketing Communication has been known since the 1990s. Schultz
(1991) who is an early writer on this topic and subsequent 'product champion,' tried to
standardize the IMC debate in the United States. He argues that nothing has received as much
publicity and discussion at learned meetings in the United States. As Schultz (1993) claims,
IMC is a concept of marketing communications planning that recognizes
the added value of a comprehensive plan that evaluates the strategic roles of a
variety of communications disciplines (for example, general advertising, direct
response, sales promotion, and public relations) and combines these disciplines
to provide clarity, consistency, and maximum communications impact.
In his argument, this process view suggests that IMC is the integration of
specialized communication functions; the functions are occasionally conceived and created
independent of each other. Therefore, this concept of thought should lead to synergism, and
each communication mode should strengthen the other messages in spite of the channel or the
audience. In addition, this whole is greater than the sum of its individual components,
therefore making IMC a more efficient and effective way to communicate with consumers
than advertising disseminated through the mass media (Schultz, 1993).
2.4.1 Components of Integrated Marketing Communication

Most scholars who study IMC suggest that a successful IMC program incorporates
numerous dimensions. These dimensions change according to which researcher is examining
IMC, however, most IMC programs involve multiple components as follows.
2.4.1.1 Synergistic Strategy.

Moore and Thorson (1996) suggest the use of a strategic system to create an
integrated marketing communication program. The strategic system should consider multiple
audiences and opportunities to reach consumers at several levels during the decision making
20
Research Proposal
process. Furthermore, messages and communication tools for each stage of the process and
each target are developed. Therefore, there is one basic communication strategy for each
major target audience (Duncan & Everett, 1993), which creates a synergistic effect of the
communication (Moriarty, 1994). Messages should be integrated thematically and address
each audience as they move through various stages of the purchase decision making process.
(Deighton, 1996)
2.4.1.2 Tactical Consistency
Keller (1996) recognized that advertising retrieval cues are important tools that
influence the effects of advertising. Retrieval cues include key visuals or distinctive slogans.
As Keller (1996) mentions, having consistency in these cues across media capitalizes on the
strengths and weaknesses of advertising and other communication options to facilitate brand
learning and the creation of brand knowledge structures to contribute to brand equity.
Therefore, developing consistency with retrieval cues through all media could help in
building a strong image for the brand. This means that having a single voice aspect to tactical
implementation is important.
2.4.1.3 Interactivity
Interactivity is an integral part of IMC when organizations practicing IMC tend to
gather extensive information about customers through various channels. Moriarty (1994) also
suggests that facilitating dialogues and building relationships are specialties of integrated
campaigns. In order to start the dialogues, organizations need to identify people, who are
involved, or might be involved in the communication programs, and create a system for
handling communications between each other (Moriarty, 1994).
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Research Proposal
2.4.2 Benefits of Integrated Marketing Communication
Although IMC may require a lot of effort, it delivers many benefits. According to past
research, IMC could create three main benefits such as, competitive advantage, a boost in
sales and profits, while saving time, money and stress.
2.4.2.1 Create Competitive Advantage

Smith (1999) suggests IMC could wrap communication around customers, and helps
them move through the different stages of the buying process. The organization builds
dialogues and relationships with customers. Yeshin (1998) also claims, for the agency, it
provides the opportunity to play a significantly more important role in the development of the
communications program and become a more effective partner in the relationship. This
marketing relationship could be seen as a powerful competitive advantage.
2.4.2.2 Boost Sales and Profits

Smith (1999) points out that IMC increases profits through increased effectiveness. It
could increase sales by stretching messages across several communications tools, and make
messages more consistent and more credible. Yeshin (1998) suggests, for the company, IMC
could be used as a strategic tool in communicating its corporate image and the benefits of its
product or services. In addition, integration of communication messages leads to creative
completeness and consistent messages. Also media choices are optimized, which can lead to
operational efficiency (Linton & Morley, 1995). As a result, more ways are created for
customers to become aware, become motivated and make a purchase.
22
Research Proposal
2.4.2.3 Save Time, Money and Stress
Smith (1999) emphasizes IMC could save money, such as graphics and photography;
they can be shared and used in advertising, exhibitions and sales literature. Yeshin (1998)
suggests, within the IMC program, the same message is delivered repeatedly to the target
audience. This requires the adoption of an overall strategy for the brand, rather than
developing individual strategies for the separate marketing communication tools. Nakra
(1991) also claims, the use of IMC saves time and money and improves the firms or
organizations ability to protect the integrity of the product or service.
Moreover, organizations can maximize their return on investments and minimize
selling stress through IMC.
2.4.2.4 Build Clear Brand Image

According to Smiths (1999) argument, IMC could help a brand to consolidate its
image by developing a dialogue and nurturing a relationship. In addition, IMC helps
businesses and organizations to create brand value in the form of sales, profits and brand
equity.
Since its focus is on building and sustaining long-term relationships, it is more
effective than the traditional advertising and marketing.
Moreover, Yeshin (1998) claims IMC highlights integration by harmonizing
various marketing messages to create synergy for a brand and is based on a clear brand
image to build relationships with target audiences to advance brand value.
2.5 Framework Elements and Hypotheses
23
Research Proposal
IMC
- Interactivity
- Mission marketing
- Organizational infrastructure
- Strategic consistency
- Planning and evaluation
Performance
- Sales-related performance
- Brand advantage
- Customer satisfaction
Figure 2.2 Schematic Diagram of Research Framework
The following hypotheses are proposed:

H1a: Interactivity is positively related to the Sales-related performance.
H1b: Interactivity is positively related to the Brand advantage.
H1c: Interactivity is positively related to the Customer satisfaction.
H2a: Mission marketing is positively related to the Sales-related performance.

H2b: Mission marketing is positively related to the Brand advantage.
H2c: Mission marketing is positively related to the Customer satisfaction.
H3a: Organizational infrastructure is positively related to the Sales-related performance.

H3b: Organizational infrastructure is positively related to the Brand advantage.
H3c: Organizational infrastructure is positively related to the Customer satisfaction.
H4a: Strategic consistency is positively related to the Sales-related performance.

H4b: Strategic consistency is positively related to the Brand advantage.
H4c: Strategic consistency is positively related to the Customer satisfaction.
H5a: Planning and evaluation is positively related to the Sales-related performance.

H5b: Planning and evaluation is positively related to the Brand advantage.
24
Research Proposal
H5c: Planning and evaluation is positively related to the Customer satisfaction.
25
Research Proposal
CHAPTER 3
RESEARCH METHODOLOGY
3.1 Introduction
As for research methodology, the explanation will be based on the research onion as
presented Saunders, Lewis and Thornhill (2007) which focused on deciding on available
approaches on each layers of the onion. The outer layer which look at the philosophies,
choices and strategies are as important as the inner layers such as time horizon and which
techniques to use. Often time researchers only deal with the inner layers and forgetting the
importance outer layers. As for this study, each layer of the research onion will be dealt with.
Techniques
And
Procedures
Time
Horizon
Approaches
Strategies
Choices
Philosophies
Figure 3.1 Research Onion, adapted from Saunders, Lewis and Thornhill (2007)
For the philosophies, there is more than one approach in doing research in social
sciences. Two prominent scholars who had expressed their thoughts are Burrel and Morgan
(1979). Burrel and Morgan (1979) provided an understanding on the existing sociological
26
Research Proposal
theories based on four major paradigms. Brief ideas of the four paradigms are summarized in
table 3.1.
Table 3.1 Summarized of Burrel and Morgan (1979)

Objectivist
Ontological
Epistemological
Human nature
Methodological
Realism: reality is out there,

reality investigated is external to
the individual.
Positivism: knowledge as being
hard, real and capable of being
transmitted in tangible form,
knowledge can be acquired on the
one hand.
Determinism: human being and

their experiences are regarded as
product of the environment,
conditioned by external
circumstances, being controlled,
marionette.
Nomothetic: base on systematic
protocol and technique, scientific
rigor, test, quantitative.
Subjectivist
Nominalism: reality is the product
of individual
consciousness/cognition; reality is
in ones mind.
Anti-positivism: knowledge is
softer, more subjective, spiritual or
transcendental kind based on
experience and insight, unique and
of personal nature, knowledge has
to be personally experienced on the
other.
Voluntarism: human being taking
more creative role, free will, man
as creator of the environment,
controller.
Ideographic: getting inside the

situation, involved, encounters with
ones subject.
Based on Burrel and Morgan (1979), this research is following the path of an
objectivist. From an ontological perspective, the issues that are the focus of this research are
external to an individual. It is something that is happening out there in reality. As for
epistemological point of view, this research is looking at tangible data that is available and
can be acquired. Therefore taking the positivist stands is very much appropriate. As for
human nature, the deterministic stand is a much better approach for this research since the
object of the study which is the individual SMEs act based on the internal and external
environment in trying to achieve its objectives. For the methodological perspective, this
research will take the approach of a nomothetic which follows a systematic research
technique.
27
Research Proposal
3.2 Type of Research
Referring to the second layer of the research onion, this study will adopt a deductive
approach. With the resource based view as the guiding theory, the author will deduce several
hypotheses to be tested. Once generated, the hypotheses will be operationalized by indicating
how the variables are to be measured. The next steps in deductive approach will be an
empirical testing of the hypotheses and examine the outcomes. Any further action against the
resource based view will depend on the outcomes of the empirical testing.
3.3 Research Design and Procedure

Next layer of the research onion focus on strategies and for this study, the survey
method is deemed to be sufficient in obtaining the relevant data that will answer the research
questions and objectives. Furthermore, survey method is a popular and most common
strategy in business and management research. This study will then focus on mono method as
its approach. Since the purpose of this study is to investigate the relationship between SMEs
resources, innovativeness and performance, a cross sectional research will be employed as the
time horizon. For the innermost layer on techniques and procedures, systematic random
sampling will be used in selecting the sample from a list of companies listed in the official
directory of SMI Association of Malaysia. Survey questionnaires will be constructed and sent
to the selected SMEs using mail. However, if those selected SMEs from the list do have
email addresses then, email notification will be send to them to replace mailed survey
questionnaires. From the email, a link that will direct the respondent to a web survey site
where they will be ask the same questions as in the printed survey questionnaires.
The overall research process will be conducted under the premises on the Resource
Based View. Overall, this research should provide the understanding of the performance of
SMEs based on resources possessed and innovativeness capabilities.
28
Research Proposal
Table 3.2 Summary of Research Approach
Focus
Philosophies
Choices
Strategies
Approaches
Time Horizon
Techniques and Procedures
Unit of analysis
Population
Sampling frame
Sampling method
Data collection method
Selected Approach
Objectivist
Deductive
Survey
Mono method
Cross-Sectional Study
Organization
All SMEs in Malaysia
SMEs listed in The Official Business
Directory of SMI Association of Malaysia
2007
Convenience Sampling
Web based questionnaires
3.4 Variables and Measurement

This study used existing scales to capture the data on the IMC process, brand
outcomes, market environment, and market orientation. A modified version of the DuncanMoriarty IMC miniaudit (Duncan and Moriarty 1997) will be used to capture information on
IMC process. IMC items were measured on a seven-point Likert scale {I = not at all, 7 = to a
great extent). Similarly, the performance measures were drawn from the research by Gray et
al. (1998) and modified for use in a brand outcomes context. The nine items included four
perceptual items related to relative sales and profitability, four items related to relative
customer brand equity, and one item related to relative channel support for the brand. All
perceptual-based items will be measured using a seven-point Likert scale (1 = much less, 7 =
much more). Other items in the questionnaire sought information on respondent
characteristics, company characteristics, and brand position and objectives, as well as on the
size of the marketing communication budget.
3.5 Data Collection

Data for this study will be collected through survey questionnaires. Only one
respondent will answer the questionnaire as a representative of the organization. The survey
29
Research Proposal
questionnaire will be addressed to the name listed in The Official Business Directory of SMI
Association of Malaysia 2007. They are either the owner or manager in their organization.
SMEs tend to have a relatively limited number of core product and technologies. Therefore
the manager or owner are likely to have a good understanding of their organization, thus
enhances the accuracy of the responses (Isobe, Makino and Montgomery, 2004). Two types
of survey questionnaires will be conducted.
For sample that provided email address in their directory profile, email will be sent to
those email addresses with link to the web site where they will be answering the questions.
Non-response bias method based on Armstrong and Overton (1997) will be conducted to look
for any significant differences between early and late responses. For this purpose respondents
who replied within two weeks after the survey being sent out will be considered as early
respondent and those replied after two weeks to be considered as late respondent.
3.6 Survey
3.6.1 Administration of the Survey Questions

The questionnaires (Appendix A) consist of four (4) sections as follows:
1. Section 1: Respondent and organizations general information.
2. Section 2: Independent variable questions (IMC)
3. Section 3: Dependent variable questions (IMC based performance)
3.6.2 Population and Sample

The focus of this study will be at the firm or enterprise level. Consequently the unit of
analysis will be the firm. The population of this study will be all SMEs in Malaysia.
Obviously it is difficult to obtain the list of all the SMEs in Malaysia. Thus this study will
30
Research Proposal
depend on The Official Business Directory of SMI Association of Malaysia 2007 as the
population frame. There are 1621 companies listed in that directory. Based on research
framework, the eight numbers of constructs multiply by a factor of ten; this study will
required at least 80 respondents. Assuming the response rates of around 15% for survey
conducted in Malaysia, the author will have to send out at least 534 survey questionnaires by
email. However, to maximize the response rate, all listed email address in The Official
Business Directory of SMI Association of Malaysia 2007 will be included in the sampling
frame.
3.7 Statistical Analysis

All the information obtained from the questionnaires were verified for completeness,
coded and keyed into a computer data file. Collected data was analyzed by using the
Statistical Package for Social Science (SPSS) version 12.
3.7.1 Non Response Bias

Similar to any study that relies on voluntary participation, this study might have the
possibility that respondents and non-respondents may differ in some significant manner. Due
to the difficulty associated with the identification of non-respondents characteristics in
anonymous research, a test of non-response bias based on Armstrong and Overton (1977) was
conducted. Armstrong and Overton (1977) describes three methods of estimation:
comparisons with known values for the population, subjective estimates, and extrapolation.
Extrapolation methods are based on the assumption that subjects who respond less readily are
more like non respondents. "Less readily" has been defined as answering later, or as requiring
more prodding to answer. The most common type of extrapolation is carried over successive
waves of a questionnaire. "Wave" refers to the response generated by a stimulus, e.g., a
31
Research Proposal
follow up postcard. Persons who respond in later waves are assumed to have responded
because of the increased stimulus and are expected to be similar to non respondents. Time
trends provide another basis for extrapolation. Persons responding later are assumed to be
more similar to non respondents. The method of time trends has an advantage over the use of
waves in that the possibility of a bias being introduced by the stimulus itself can be
eliminated. On the negative side, it is difficult to measure the time from the respondent's
awareness of the questionnaire until completion.
3.7.2 Factor Analysis

A principle component factor analysis with varimax rotation will be conducted to
assess the validity of the construct. The Kaiser-Meyer-Olkin (KMO) measure of sampling
adequacy (MSA) and Bartletts test of sphericity were carried out for the innovativeness
variables and the antecedents of innovativeness variables; structural capital, relational capital
and human capital. In interpreting the factor analysis result the following rules or guidelines
were adhered to regarding the KMO measure of sampling adequacy, Bartletts test of
sphericity, anti-image correlation, and item to factor categorization.
1. KMO measure of sampling adequacy varies between 0 and 1. A value of 0 indicates that
the sum of partial correlations is large relative to the sum of correlations indicating
diffusion in the pattern of correlations. That makes factor analysis to be inappropriate. A
value close to 1 indicates that patterns of correlations are relatively compact and so factor
analysis should yield distinct and reliable factors. Kaiser (1974) recommend accepting
values greater than .50 as barely acceptable. Field (2005) defined values between .50 and
.70 as mediocre, values between .7 and .8 are good, values between .8 and .9 as great and
values above .90 as superb.
2. Bartletts test of sphericity must be significant.
32
Research Proposal
3. All items must meet the anti image of at least .50.
4. For item to factor categorization, a two stage rule was used;
a. To make certain that a given item represented the construct underlying each
factor, a weight of .50 was used as the cutoff point (Hair, et. al. 2006).
b. To avoid problems with cross loading, each item needs to clearly define only one
factor. Operationally, if the difference between weights for any given item was
less than .10 across factors, the item will be deleted from the final scale (Snell and
Dean, 1992).
3.7.3 Reliability
Reliability of a measure indicates the extent to which it is without bias (error free) and
ensures consistent measurement across time and across various items in the instrument. The
reliability of the dimension are assessed using Cronbachs coefficient Cronbachs
coefficient to show reasonable internal consistency. There are various threshold levels for the
Cronbachs coefficient suggested by several researchers. Nunnally (1978) suggested
Cronbachs coefficient of .60 and above as acceptable. (Hair, Babin, Money and Samouel,
2003) suggested a rule of thumb about Cronbachs coefficient size as presented in table x.
Table 3.3
Rule of Thumb about Cronbachs Coefficient Size
(Adopted from Hair et. al. (2003))
Coefficient Range
Strength of Association
< .6
Poor
.6 to < .7
Moderate
.7 to < .8
Good
.8 to < .9
Very Good
.9
Excellent
In another publication, Hair et. al. (2006) agreed upon lower limit for Cronbachs
coefficient to be .70 and it may decrease to .60 in exploratory research. Sekaran (2000)
recommended minimum level of .60 for Cronbachs coefficient.
33
Research Proposal
3.7.4 Descriptive Statistics

Descriptive analysis is used to identify the respondents profile. The result of this
analysis would help to identify any bias in the response. Analyses used are mean, standard
deviation, maximum and minimum values.
3.8 Test of Relationship

For testing the relationship among the fourteen variables under study, this study used
Pearson correlation analysis and for hypotheses testing this study used multiple linear
regressions. Correlation analysis was conducted to provide an initial picture of the
interrelationships among the fourteen variables of interest and multiple linear regressions
were employed to assess simultaneous relationships and also for assessing the individual
effects of the antecedent variables on innovativeness as well as on the innovativeness
variables on the outcome variable.
3.8.1 Correlation Analysis

Correlation analysis indicates the strengths of bivariate relationships and therefore
indicates early indications of possible interrelationships in multiple relationships. The
correlation between the antecedent variables or between the innovativeness variables also can
be used to identify reasons for insignificance of one independent over another when
explaining the variation in the dependent, in multiple regressions. The Pearson productmoment correlation coefficients (r) were computed to examine the correlations and directions
among the study variables. This analysis was also conducted to determine the
interdependency of the study variables. Prior to conducting a correlation analysis, preliminary
analyses were undertaken to ensure no violation of the assumptions of linearity, normality,
34
Research Proposal
and homoscedasticity. The distribution of the study variables were inspected through
histograms and scatterplots. No violations of the assumptions were found. For the behavioral
sciences, correlation coefficients of .10, .30, .50 irrespective of sign are typically interpreted
as small, medium and large coefficients (Green, Salkind and Akey, 1997). Very high
correlations exceeding .90 indicates the existence of multicollinearity (Hair et. al., 2006).
3.8.2 Regression Analysis

Regression analysis will be carried out to test the hypotheses and its relationship with
dependent variable. Significant of the hypothesis was measured by referring to P-value, the
lower the P-value the higher the significant level. R-square is to determine the percentage
variance of dependent variable that can be explained by independent variable. Multicollinearity and auto-correlation is tested based on VIF and Durbin Watson. The beta value is
to indicate the relationship between independent and dependent variable.
35
Research Proposal
Table 3.4 Questionnaires Items
Constructs and Items
IMC performance constructs and items
Interactivity
Your brand's media plan is a strategic balance between mass media and oneto-one media.
Special programs are in place to facilitate customer inquiries and complaints
about your brand.
In your databases, you capture customer inquiries, complaints, compliments,
and sales behavior related to your brand.
Your customer databases are easily accessible (internally) and user-friendly.
Cronbachs
Mission marketing
Your company's mission statement is a key consideration in the
communications planning for your brand.
Your mission statement is promoted among customers and other key
stakeholders of your brand (e.g., employees, shareholders).
Your brand's social sponsorship contributions are concentrated in one specific
area or program (e.g., sport, music, art, etc.).
.8736
Organizational infrastructure
In your company, the process of managing the brand's reputation is the
responsibility of all departments and employees.
The people managing the communications program for your
brand have a good understanding of the strengths and weaknesses of all major
marketing communications tools, such as direct response, PR, salts
promotion, advertising, and packaging.
Your company does a good job of internal marketing, informing all areas of
the organization about your brand's objectives and marketing programs.
Your major communication agencies (e.g., advertising agency) have (at least)
monthly contact with each other regarding your brand.
.5743
Strategic consistency
You regularly review your marketing plan to ensure relevance and
consistency of your brand messages and strategic brand positioning.
Your major promotional theme for the brand is conceptually broad enough to
allow for different subcampaigns aimed at all key stakeholder groups.
You carefully coordinate the messages being sent by all of your operations,
such as pricing, distribution, product performance, and service operations, to
ensure consistency of brand positioning.
.7509
Planning and evaluation

A SWOT analysis is used to determine the strengths and opportunities you
can leverage, and the weaknesses and threats you need to address, in your
brand's marketing communication planning.
You use a fresh start or zero-based approach in planning your brand's
marketing communication rather than using the last year's budget allocations.
When doing annual marketing communication planning, first priority is given
to managing the consumer contact(s) with your brand.
You use some type of systematic brand-tracking study to evaluate the
strength of your relationships with customers and other key stakeholder
groups.
Your brand-marketing strategies maximize the unique strengths of the various
marketing communications tools.
The stated objective of your brand's marketing communication program is to
create and maintain profitable relationships with customers and other
stakeholders by ensuring consistency in all messages sent to these groups.
.7161
.6620
36
Research Proposal
Performance Constructs and Items

Sales-related performance
What is your market share compared to your closest competitor?
What is your sales growth compared to your closest competitor?
What is your profitability compared to your closest competitor?
What is your total sales income compared to your closest competitor?
.8086
Brand advantage
What is your customers' level of brand awareness compared with your closest
competitor?
What is your ability to command premium prices over similar competing
brands in your principal market?
What level of channel cooperation do you receive relative to similar
competing brands in your principal market?
.5865
Customer satisfaction
How satisfied do you think your customers are with your brand compared to
your closest competitor's customers?
How loyal do you think your customers are to your brand compared to your
closest competitor's customers?
.7014
37
Hilmi Page 38
CHAPTER 4
RESULT
4.1 Expected Findings
Based on extensive literature reviewed, it is expected that IMC will positively
correlate to brand outcomes (as a proxy for firm performance). There should be a strong and
significant main effect indicating a positive relationship between the IMC process and brand
outcomes. Therefore with the empirical result, this study will be suggesting that Malaysian
SMEs should pay more attention to implementing IMC.
Research Proposal
Hilmi Page 39
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IMPACT OF INTEGRATED MARKETING COMMUNICATION ON MALAYSIAN

AGW705 Advanced Marketing Seminar

1.2 Background of the Study

1.3 Research Problem

1.4 Research Objectives

1.7 Significance of the Study Theoretical and Practical

1.8 Organization of Remaining Chapters

Chapter four outline the

2.2 Small and Medium Scale Entrepreneurs (SMEs)

To further describe the importance of SMEs and innovation, Malaysian Government

Increasing interest in small business at institutions of higher learning.

Manufacturing (including Agro-Based) and

Services Sector including ICT and

Table 2.2 Definition of SMEs by Full-Time Employment as published in SME Performance

Manufacturing (including Agro-Based) and

Services Sector including ICT and

Measures used in the definitions of

Research conducted on Malaysian SMEs has been focused on various perspectives

Relevant variables and dimensions

Data sources and sample

Sulaiman, Wafa and

Strategic Management: process, availability of plan, use of

100 SMEs in various industries,

SMEs have the ability to adopt

Interview conducted using

Different SMEs in different

28 responded to the survey

94 usable responses out of 200,

More than 90% of respondents

Hashim, Zakaria and

Haron, Yahya, Ismail

75 returned (5 not usable due to

Organizational structure, human

Relevant variables and dimensions

Data sources and sample

Extent of Usage of Accounting Information: statutory, budget,

questionnaires out of 200 send

Hashim and Nawi

Purchasing Strategies: single sourcing, multiple sourcing, buyersupplier relationship

92 usable data (68 firms

Competitive Strategy: low cost, differentiation, niche, growth,

Personal interview using

Hashim and Zakaria

Strategic Thinking: insight, foresight, focus, creativity, pragmatic,

Zakaria and Hashim

accounting information. Turnover

Table 2.6 Resources Requisites (adapted from Coplin (2002))

2.3.1 Origin of RBV

Relevant dimensions and variables

Data sources and sample

Wafa, Hashim and

Firm orientation: export oriented, domestic

Wu, Yeniyurt, Kim and

Performance: marketing. financial

100 firms interviewed from a list

Ray, Barney and

Performance: customer service quality, self assessment, weighted

Firm Resources: valuable, rare, imperfectly imitable, substitutability

Analyze the potential of a broad

Export oriented SMEs have

2.4.1 Components of Integrated Marketing Communication

2.4.1.1 Synergistic Strategy.

2.4.2.1 Create Competitive Advantage