A MADANI-Driven Regulatory and Innovation Framework for Malaysian Family Firms

Family businesses are vital to Malaysia's economy, constituting 70% of all enterprises, but face challenges, with only 30% successfully transitioning to the second generation and a mere 12% to the third. Additionally, only one-third currently integrate sustainability into their operations, deviating from global trends. To address these pressing issues, our study proposes a triple-helix framework aimed at helping Malaysian family businesses achieve sustainable competitive advantage in line with MADANI principles. This framework highlights how government, universities, and industry interactions can enhance ESG-focused competitiveness. The lack of a structured regulatory framework hinders alignment with MADANI's vision for sustainable growth. Few studies present opportunities for future research on improving family business alignment. Our study advocates for integrating ethics, accountability, diversity, and innovation in business strategies to promote sustainable competitiveness. We will investigate the complex interactions among regulatory transparency, incentive structures, taxation, and sustainable competitiveness while also considering the role of exploitative-explorative innovation and the impact of technological modernization. As Malaysia’s MADANI vision advocates for sustainable growth, family businesses struggle with alignment due to an inadequate regulatory framework. Our research emphasizes integrating ESG (environmental, social, governance) factors into business strategies, which is crucial for fostering competitiveness. We adopt a mixed-method approach that intertwines the Triple Helix and Triple Bottom Line theories to develop an ESG-focused framework. By promoting values such as morality, accountability, diversity, and innovation, our study aims to enhance these essential enterprises' long-term sustainability and competitiveness.