From China to fostering rooting innovation in Nanyang: three generations of Malaysian Chinese family businesses in food manufacturing

Abstract

The purpose of this study is to explore how Chinese family businesses (CFBs) in Malaysia can last three generations through the development of a tacit knowledge innovation by adapting to local markets from traditional food production (Southern China) to fostering rooting innovations in Nanyang (Southeast Asia-Malaysia). The author created this study by using stage model theory of development to compare the evolutionary development of the founding generation to the next generation in three public listed CFBs of food production in Malaysia. The research on business history assessments were obtained from Malaysia’s companies commission house (CCM), annual reports and in-depth interviews. This process is further aided by effectively utilizing tacit knowledge and by introducing new evolutionary CFBs model in food production, a research method has not employed in Malaysia. The findings of this study show that the role of tacit knowledge and innovation is a dynamic process including knowledge creation, evolution, transfer and application, and is also a learning process to sustain the CFBs of food production in Malaysia. These can have an imperceptible influence on and lead to improvements in CFB’s thinking structure, creating added value, self-realization and a competitive advantage in the food industry.