Technological knowledge, learning and linkages in the wooden furniture industry in Malaysia: a spatial innovation perspective

Abstract

This paper examines technological knowledge, learning, and linkages in the wooden furniture industry in the Muar cluster of Malaysia in terms of a spatial innovation perspective. The furniture manufacturers form a close partnership with their immediate business environment (the suppliers, customers, retailers and support industries) to enhance the process of interactive learning. The mutual exchange and shared learning process in the cluster are best described as socially constructed and socially embedded processes that are highly associated with the element of trust within the cluster; in addition, tacit knowledge tends to become embedded in the local milieu. The relationship among the community and the furniture industry players is also close. There is a strong social capital and mutual understanding among competitors to see one another as partners, especially in advancing their knowledge in the international markets. The achievement of the Muar furniture cluster is built upon the collective efforts of the entire Muar furniture industry. Firms are always ready to share business opportunities and information. However, the cluster still lacks the design and technological capabilities to move to the original design manufacturing and original brand manufacturing stage.

Keywords:

• innovation systems
• social capital
• trust
• low-tech industry
• furniture cluster

Acknowledgements

The authors wish to thank all interviewees and organizations for sharing their views and experience. We are grateful to the editor and two reviewers for constructive comments. This research was funded by Fundamental Research Grant Scheme (FRGS), Ministry of Higher Education Malaysia (FP006-2012A).