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Assessing the effect of advisory services on growth of small scale food processors in Selangor
(Menilai kesan khidmat nasihat ke atas pertumbuhan firma pengilang makanan berskala kecil di Selangor)
Suwardi Afandi Ahmad*, Ismail Abd. Latif**, Nittiy Hirawaty Kamaruzaman** and Amin Mahir Abdullah**
Keywords: public advisory services, food processors, logistic regression

Abstract
During the Ninth Malaysia Plan 2006 – 2010, the development of the Small and Medium-sized Enterprises (SMEs) have been prioritized by the government. Various initiatives were implemented with the aim to enhance SMEs competitiveness. One of the initiatives was the advisory service programme. This programme focuses on enhancing SMEs capacity and capability. After being implemented for several years, it is necessary to assess the effect of this programme. Hence, this study was to assess the effect of advisory service on growth of small scale food processors. Primary data was collected from 103 firms using a structured questionnaire. The data was analysed using descriptive analysis and logistic regression. The results obtained showed that the utilization of advisory service among the respondents is still low except from Department of Agriculture (DOA), Malaysian Agriculture Research and Development Institute (MARDI) and Federal Agriculture Marketing Authority (FAMA) where the number of clients served was above 40%. Majority of the firms surveyed received technical advices from government institutions. This indicated that the technical know-how is very crucial in the food processing industry. The results of the logistic regression showed that technical advice has greater influence on sale growth while business and management advice has greater influence on both sales growth and owner/manager’s ability to manage the business. The study suggested that the advisory service programme should be continued with some transformations on the method and approach used.

Abstrak
Semasa Rancangan Malaysia Ke-9 (2006 – 2010), pembangunan Perusahaan Kecil dan Sederhana (PKS) telah menjadi keutamaan kerajaan. Pelbagai inisiatif telah dilaksanakan dengan tujuan untuk meningkatkan kecekapan PKS. Satu daripada inisiatif tersebut ialah program khidmat nasihat. Program ini memberi fokus kepada peningkatan kapasiti dan keupayaan PKS. Selepas dilaksanakan untuk beberapa tahun, kesan program ini perlu dinilai. Oleh itu, fokus kajian ini adalah untuk menilai kesan khidmat nasihat ke atas pertumbuhan firm pengilang makanan berskala kecil. Kajian ini memberi fokus kepada penilaian kesan khidmat nasihat ke atas perkembangan firma pengilang makanan berskala kecil. Data primer dikumpul daripada 103 firma dengan menggunakan borang soal selidik berstruktur. Data dianalisis menggunakan analisis deskiptif dan regresi logistik. Keputusan kajian menunjukkan bahawa penggunaan khidmat nasihat di kalangan responden masih rendah kecuali bagi Jabatan Pertanian (DOA), Institut Penyelidikan dan Kemajuan Pertanian Malaysia (MARDI) dan Lembaga Pemasaran Pertanian Persekutuan (FAMA) di mana jumlah pelanggan yang diberikan khidmat nasihat melebihi 40%. Majoriti firma yang terlibat dalam kajian ini menerima khidmat nasihat teknikal. Ini menandakan bahawa pengetahuan teknikal adalah sangat penting dalam industri pemprosesan makanan. Keputusan regresi logistik menunjukkan bahawa khidmat nasihat teknikal berpengaruh besar ke atas peningkatan jualan manakala khidmat nasihat perniagaan dan pengurusan berpengaruh besar ke atas peningkatan jualan dan keupayaan pemilik/pengurus dalam menguruskan perniagaan. Kajian ini mencadangkan bahawa program khidmat nasihat perlu diteruskan dengan beberapa transformasi terhadap kaedah dan pendekatan yang digunakan.

Copyright 2012 ©
Economic and Technology Management Research Centre,
MARDI Headquarters, Persiaran MARDI- UPM, 43300 SERI KEMBANGAN,
SELANGOR, MALAYSIA
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