Still an ethnic enterprise after a generational change? Indian-owned SMEs in Malaysia

Abstract

This study grapples with two key puzzles: first, what happens when companies established as ethnic-based enterprises, including by migrants, are passed on to the next generation? Second, do these migrant businesses remain as ethnic enterprises after generational transitions? The empirical focus of this study is Malaysia, a country with one of the largest ethnic Indian populations outside India. To provide insights into these questions, this article pays particular attention to how an ethnic enterprise functions, in terms of types of goods and services produced and its targeted market, after the emergence of a new generation of owners with more class resources. The evidence from this study will provide insights into the validity of the concept of ethnic enterprise following a generational transition.