IDEAS home Printed from https://ideas.repec.org/a/ukm/jlekon/v52y2018i2p209-217.html
   My bibliography  Save this article

Determinants of Entry into Malaysian Palm Oil Refinery Industry

Author

Listed:
  • Yi, Choo Sze

    (Faculty of Economics and Management Universiti Putra Malaysia 43400 Serdang, Selangor MALAYSIA)

  • radam, alias

    (Faculty of Economics and Management Universiti Putra Malaysia 43400 Serdang, Selangor MALAYSIA)

  • Hassan, Azman

    (Faculty of Economics and Management Universiti Putra Malaysia 43400 Serdang, Selangor MALAYSIA)

  • shamsudin, mad nasir

    (Faculty of Agriculture Universiti Putra Malaysia 43400 Serdang, Selangor MALAYSIA)

Abstract

The palm oil refinery industry continued to rise as Malaysia’s key trade, following the nation’s transitional economy in the early 1970s. Known as the workhorse of its industry, palm oil refinery began to boom with the early establishment of refineries in several states throughout east and west Malaysia. However, in recent years, it was reported that the establishment of licensed refineries in the country recorded a rise in numbers, and yet the companies did not step up into the market as planned. The issue of industrial competitiveness was put into question by the decreasing rate of new entrants. In this study, the logit model was adopted to identify entry-related factors in the industry. The prescribed period of study was set between 2005 and 2013, involving 52 firms in operation in the Malaysian palm oil refining industry, where their annual reports were obtained from the Companies Commission of Malaysia (CCM). The empirical results implied that profit, distribution, marketing intensity, coupled with minimum efficient scale and growth were all significant and carried the correct coefficient signs.

Suggested Citation

  • Yi, Choo Sze & radam, alias & Hassan, Azman & shamsudin, mad nasir, 2018. "Determinants of Entry into Malaysian Palm Oil Refinery Industry," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 52(2), pages 209-217.
    • Handle: RePEc:ukm:jlekon:v:52:y:2018:i:2:p:209-217
    DOI: http://dx.doi.org/10.17576/JEM-2018-5202-17
    as

    Download full text from publisher

    File URL: http://www.ukm.my/jem/wp-content/uploads/2021/06/jeko_522-17.pdf
    Download Restriction: no
    File URL: https://libkey.io/http://dx.doi.org/10.17576/JEM-2018-5202-17?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Gilbert, Richard J., 1989. "Mobility barriers and the value of incumbency," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 1, chapter 8, pages 475-535, Elsevier.
    2. Martin, Stephen, 2010. "Industrial Organization in Context," OUP Catalogue, Oxford University Press, number 9780199291199.
    3. Bunch, David S & Smiley, Robert, 1992. "Who Deters Entry? Evidence on the Use of Strategic Entry Deterrents," The Review of Economics and Statistics, MIT Press, vol. 74(3), pages 509-521, August.
    4. Kristina Nyström, 2007. "Patterns and determinants of entry and exit in industrial sectors in Sweden," Journal of International Entrepreneurship, Springer, vol. 5(3), pages 85-110, December.
    5. Sven-olov Daunfeldt & Niklas Rudholm & Fredrik Bergström, 2006. "Entry into Swedish Retail and Wholesale Trade Markets," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 29(3), pages 213-225, November.
    6. Khalid Sekkat (ed.), 2010. "Market Dynamics and Productivity in Developing Countries," Springer Books, Springer, number 978-1-4419-1037-0, June.
    7. Burak Günalp & Seyit Cilasun, 2006. "Determinants of Entry in Turkish Manufacturing Industries," Small Business Economics, Springer, vol. 27(2), pages 275-287, October.
    8. Dale Orr, 1974. "The Economic Determinants of Entry into Canadian Banking: 1963-7," Canadian Journal of Economics, Canadian Economics Association, vol. 7(1), pages 82-99, February.
    9. Cotterill, Ronald W & Haller, Lawrence E, 1992. "Barrier and Queue Effects: A Study of Leading U.S. Supermarket Chain Entry Patterns," Journal of Industrial Economics, Wiley Blackwell, vol. 40(4), pages 427-440, December.
    10. Kathryn Rudie Harrigan, 1981. "Barriers to entry and competitive strategies," Strategic Management Journal, Wiley Blackwell, vol. 2(4), pages 395-412, October.
    11. Mata, Jose, 1993. "Entry and type of entrant : Evidence from Portugal," International Journal of Industrial Organization, Elsevier, vol. 11(1), pages 101-122, March.
    12. Cotterill, Ronald W. & Haller, Lawrence E., 1991. "Determinants of Entry: A Study of Leading U.S. Supermarket Chain Entry Patterns," Research Reports 25226, University of Connecticut, Food Marketing Policy Center.
    13. Cramer,J. S., 2011. "Logit Models from Economics and Other Fields," Cambridge Books, Cambridge University Press, number 9780521188036, January.
    14. Schwalbach, Joachim, 1987. "Entry by diversified firms into German industries," International Journal of Industrial Organization, Elsevier, vol. 5(1), pages 43-49, March.
    15. Basant, Rakesh & Saha, Subhendra Nath, 2005. "Determinants of Entry in the Indian Manufacturing Sector," IIMA Working Papers WP2005-01-01, Indian Institute of Management Ahmedabad, Research and Publication Department.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bilgehan Uzunca & Bruno Cassiman, 2023. "Entry diversion: Deterrence by diverting submarket entry," Strategic Management Journal, Wiley Blackwell, vol. 44(1), pages 11-47, January.
    2. Calá, Carla Daniela & Manjón-Antolín, Miguel & Arauzo-Carod, Josep-Maria, 2014. "The determinants of exit in Argentina: core and peripheral regions," Nülan. Deposited Documents 1976, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    3. Calá, Carla Daniela, 2014. "Regional issues on firm entry and exit in Argentina: core and peripheral regions," Nülan. Deposited Documents 2023, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    4. de Haas, Samuel & Herold, Daniel & Schäfer, Jan Thomas, 2022. "Entry deterrence due to brand proliferation: Empirical evidence from the German interurban bus industry," International Journal of Industrial Organization, Elsevier, vol. 83(C).
    5. Werner Hölzl, 2003. "Tangible and intangible sunk costs and the entry and exit of firms in Austrian Manufacturing," Working Papers geewp33, Vienna University of Economics and Business Research Group: Growth and Employment in Europe: Sustainability and Competitiveness.
    6. Lutz, Clemens & Kemp, Ron & Dijkstra, S. Gerhard, 2007. "SME's perceptions regarding strategic and structural entry barriers," Research Report 07009, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    7. repec:dgr:rugsom:07009 is not listed on IDEAS
    8. Lucio Fuentelsaz & Jaime Gomez, 2001. "Strategic and Queue effects on Entry in Spanish Banking," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 10(4), pages 529-563, December.
    9. Clemens Lutz & Ron Kemp & S. Gerhard Dijkstra, 2010. "Perceptions regarding strategic and structural entry barriers," Small Business Economics, Springer, vol. 35(1), pages 19-33, July.
    10. Werner Holzl, 2005. "Tangible and intangible sunk costs and the entry and exit of firms in a small open economy: the case of Austria," Applied Economics, Taylor & Francis Journals, vol. 37(21), pages 2429-2443.
    11. Carla Calá & Josep-Maria Arauzo-Carod & Miguel Manjón-Antolín, 2015. "The determinants of exit in a developing country: core and peripheral regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(3), pages 927-944, May.
    12. M Suresh Babu, 2007. "Economic Reforms And Entry Barriers In Indian Manufacturing," Working Papers id:978, eSocialSciences.
    13. Yuen Ping Ho & Poh Kam Wong, 2005. "Availability of Financing, Regulatory Business Costs and National Entrepreneurial Propensity," Industrial Organization 0504025, University Library of Munich, Germany, revised 03 Aug 2005.
    14. Kaplow, Louis & Shapiro, Carl, 2007. "Antitrust," Handbook of Law and Economics, in: A. Mitchell Polinsky & Steven Shavell (ed.), Handbook of Law and Economics, edition 1, volume 2, chapter 15, pages 1073-1225, Elsevier.
    15. Szabó, György & Borsos, István & Szombati, Edit, 2019. "Games, graphs and Kirchhoff laws," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 521(C), pages 416-423.
    16. Carla Daniela Calá & Miguel Manjón-Antolín & Josep-Maria Arauzo-Carod, 2016. "Regional determinants of firm entry in a developing country," Papers in Regional Science, Wiley Blackwell, vol. 95(2), pages 259-279, June.
    17. Elsa Morais Sarmento & Alcina Nunes, 2011. "Survival dynamics in Portugal, a regional perspective," ERSA conference papers ersa10p1313, European Regional Science Association.
    18. Luc Laeven & Christopher Woodruff, 2007. "The Quality of the Legal System, Firm Ownership, and Firm Size," The Review of Economics and Statistics, MIT Press, vol. 89(4), pages 601-614, November.
    19. Viktoria Kocsis & Victoria Shestalova & Henry van der Wiel & Nick Zubanov & Ruslan Lukach & Bert Minne, 2009. "Relation entry, exit and productivity: an overview of recent theoretical and empirical literature," CPB Document 180.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    20. Elsa Sarmento & Alcina Nunes, 2010. "Comparative Survival Analysis of Firms: the case of the Portuguese North region," Working Papers de Economia (Economics Working Papers) 53, Departamento de Economia, Gestão e Engenharia Industrial, Universidade de Aveiro.
    21. Josep-Maria Arauzo-Carod & Agustí Segarra-Blasco, 2005. "The Determinants of Entry are not Independent of Start-up Size: Some Evidence from Spanish Manufacturing," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 27(2), pages 147-165, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ukm:jlekon:v:52:y:2018:i:2:p:209-217. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Muhammad Asri Abd Ghani (email available below). General contact details of provider: https://edirc.repec.org/data/feukmmy.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.