Abstract:

In line with the Malaysian government vision to transform Malaysia into a knowledge-based economy, the government has entered into an agreement with TM, a government-linked telecommunication company to develop and launch the high-speed broadband (HSBB). The HSBB represents an important innovation that can possibly transform the competitive industry structure for the businesses in Malaysia, especially the information and communication technology (ICT) small and medium enterprises (SMEs). The HSBB impact on competitive industry structure of ICT SMEs can be described as double-edged sword. Thus, it is crucial for ICT SMEs to integrate the HSBB with the human factor in the firm to build that competitive advantage that is causal ambiguity and deploy the appropriate strategy to reinforce the strength of the firm. This can enable the ICT SMEs to capitalise on the HSBB capability, thus improving the competitive industry structure. Consequently, these firms could enjoy sustainable superior performance over the long run.