Strategic Investment And Excess Capacity: The Case Of Malaysian Palm Biodiesel Industry

Authors

  • Choo Sze Yi Faculty of Economics and Management, Universiti Putra Malaysia, Malaysia
  • Alias Radam Faculty of Economics and Management Universiti Putra Malaysia, Malaysia
  • Mad Nasir Shamsudin Faculty of Agriculture Universiti Putra Malaysia, Malaysia

DOI:

https://doi.org/10.32890/mmj2014.18.6

Keywords:

Palm biodiesel industry, strategic investment, excess capacity, market entry

Abstract

With the growing demand of palm biodiesel worldwide, the government has recently announced the implementation of palm biodiesel programme effective July 2014. The implementation will boost the palm biodiesel industry and heighten the demand for palm biodiesel in the domestic market as well as in the international market. This paper thus examines the relationship between the use of strategic investment in excess capacity and the industry entry condition, using logit model. This study covered study period from year 2006 to 2013. The results from this study will further help policymakers to develop policy that is parallel with the condition of the industry.

 

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References

This study intends to analyse the use of strategic investment and capacity in Malaysian palm biodiesel industry. This study hopes to evaluate the relationships strategic investment and capacity has on market entry using the proposed logit model. It is hoped that this study will bring new insights into the effect of strategic investment and excess capacity on market entry in palm biodiesel industry. Since the palm biodiesel industry is becoming a highly potential and highly demanded industry in the future, it is essential for Malaysia to continue to place extra effort in developing this industry. Through this study, it is also hoped that the Malaysian government will be able to form and implement a thorough policy and plan to further expand and preserve Malaysia’s position in the global market.

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Published

01-12-2014

Issue

Vol. 18 (2014): Malaysian Management Journal (MMJ) Vol. 18, 2014

Section

Articles

How to Cite

Yi, C. S., Radam, A., & Shamsudin, M. N. (2014). Strategic Investment And Excess Capacity: The Case Of Malaysian Palm Biodiesel Industry. Malaysian Management Journal, 18, 69-74. https://doi.org/10.32890/mmj2014.18.6

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Harvested 2026-09-07
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Identifiers DOI 10.32890/mmj2014.18.6

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