What is Opportunity Recognition

The purpose of this chapter is to provide initial understanding of how tacit knowledge and potential business opportunities can be generated in international buyer-supplier collaboration. Working jointly with a foreign buyer allows Malaysian manufacturing suppliers to upgrade their capabilities and competitive advantage as the buyer will often provide assistance in various forms ranging from setting up quality standard for product and delivery, to providing technical support and training, to assisting with innovation and finally to helping the supplier detect future business opportunities through the buyer's networks. This can only be achieved when the suppliers are open to such opportunities to acquire tacit knowledge since absorbing newly transferred knowledge and skills evidently requires several learning processes and relationship development. The impact of accumulating the knowledge, expertise and experience gained from the relationship with a foreign buyer will subsequently lead to the acquisition of tacit knowledge and recognition of new opportunities by the Malaysian manufacturing suppliers.