International Journal of Business & Management Science

PRINT: ISSN 1837-6614; ONLINE: ISSN 1985-692X

A 21 Century Journal of Business and Management Science



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Volume 8 Number 2, 2018 (Special Issue)

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Guest Editorial

Affective Organizational Commitment as a Mediating Factor for the Leaderís Support and Organizational Citizenship Behavior

(Asyakireen Samsudin, Umi Hamidaton Soffian Lee, Yusniati Ishak, Azman Ismail, Suzana Muhamad Said, Azmawaty Mohamad Nor, Page 213-239)

This study examines the relationships between leaderís support and organizational citizenship behavior with affective organizational commitment as a mediating variable. Self-report questionnaires were used to collect data from employees of the public election headquarters in the Klang Valley, Malaysia. The results of the SmartPLS path model analysis displayed three findings: first, relationship between leaderís support and organizational citizenship behavior was significant. Second, relationship between affective organizational commitment and organizational citizenship behavior was significant. Finally, the relationship between leaderís support and affective organizational commitment was significantly related to organizational citizenship behavior. This confirms that the effect of leaderís support on organizational citizenship behavior is mediated by affective organizational commitment in the organizational sample. Further, the study offers discussions and implications, conclusion as well as limitations and future research.

Career Motivation among Lecturersí Working at Private Universities in Malaysia

 (Suguna Sinniah, Zafir Khan Mohamed Makhbul, Gopal Perumal, Ramesh Kumar Moona Haji Mohamed, page 241-254)

We use measures of working environment, rewards, strategic leadership and supportive culture to explain private university lecturersí career motivation in Malaysia. We employed SEM-PLS 3.0 to analyse the self-administrated questionnaires of 200 respondents from various private higher education intuitions in Selangor, Malaysia. The results indicated that work-based office infrastructure and standard operating procedures influence private university lecturers and motivate faculty members. Thus, private universities should motivate academicians to focus on their career advancement while combining the employersí long-term sustainable competitive advantage with a favourable working environment.

Cost Efficiency and Liquidity Risk in Banking: New Evidence from OIC Countries

 (Syajarul Imna Mohd Amin, Mohd Helmi Ali, Shifa Mohd Nor, page 255-276)

This paper aims to analyze the relationship between cost efficiency and liquidity risk of Islamic banks and conventional banks in 16 selected OIC countries from 1999 to 2013. The study undertakes two-stage analysis: Data Envelopment Analysis (DEA) to compute cost efficiency; and fixed effect model to examine liquidity risk determinants. The findings indicate that cost efficiency is positively related to liquidity risk. Other significant factors include capital, bank specialization, credit risk, profitability, size, inflation, market concentration and crisis while the impact of GDP is not significant. The notion that Islamic banks have higher liquidity risk than conventional banks is weakly evidenced. The findings also highlight the importance of money market as a platform to manage liquidity risk exposure in banking.

Corporate Social Responsibility Practiced by the Malaysian Islamic Banks: A Study on the Islamic Moral Economy

(Shifa Mohd Nor, Mehmet Asutay, Syajarul Imna Mohd Amin, page 277-299)

The purpose of this paper is to empirically investigate expectations of corporate social responsibility (CSR) among Islamic banks. This paper unravels the fundamental objectives of CSR and their relevance to Islamic moral economy. In addition, this paper aims to contest the accusations of social failures of Islamic banks by previous researches.  In order to provide a comprehensive analysis of the CSR landscape among Malaysian Islamic banks, a triangulation of 11 in-depth interviews with Islamic banks officers and a self-administered questionnaire survey was conducted among 477 Islamic bankers and bank customers. The results show that awareness of CSR among Islamic banks is growing because it articulates the Islamic moral economy through the fulfilment of Shariíah requirements. Hence, the Islamic CSR (iCSR) is established, integrating Western and Islamic perspectives.

Executive Director Remuneration and Related Party Transactions (RPTs): Evidence from Malaysia

 (Mohd Mohid Rahmat, Syaiful Baharee Jaafar, Page 301-323)  

This study examines the impact of corporate governance on the profitability of six Lebanese listed banks between 2008-2012. Performance is measured by ROE and ROA whereas corporate governance is based on 14 variables, in addition to size as a control variable. ROA was found to be the best measure of performance with six significant variables.  More specifically, bankís performance is positively related to board independence and number of board meeting and negatively related to separate leadership and audit committee members. A non-linear relationship exists between performance and board size, suggesting the presence of an optimal size for board members.

How Buyer Relationship Influences Value: Co-Creation: The Moderating Role of Personality Traits

(Nor Asiah Omar, Ahmad Sabri Kassim, Suhaily Mohd-Ramly, Muhamad Azrin Nazri, Syed Shah Alam, Zizah Che Senik, page 325-345)

The relationship between customers and retailers is more complicated nowadays due to the sophisticated trends of current service retail landscape. To address the issue, this research aims to investigate the effect of relationship quality (RQ), customer value co-creation (CVCB), personality traits on relationship equity in the tailoring servicesí market. Additionally, this study examines the effect of personality trait as the moderator in the relationships of RQ-CVCB and RQ-relationship equity. Based on a sample of 245 customers from SME tailoring businesses, results reveal that RQ has a statistically significant influence on CVCB. In addition, RQ, CVCB and personality traits are also positively related to relationship equity. The results also demonstrate that personality traits moderate the relationship between RQ and CVCB.

High Performance Organization and Enterprise Risk Management Implementation

(Mohd Hafizuddin Syah Bangaan Abdullah, Hawati Janor, Mohamad Abdul Hamid, page 347-368)

Enterprise risk management (ERM) manages risk in a holistic manner thus improves the traditional risk approach. Due to potential increase in overhead costs, only firms with strong financial performance could afford to implement ERM; which is still a debatable issue. This study examines the effect of high-performance organization (HPO) on ERM implementation using 435 public listed firms from 2001 to 2013. Logistic regression shows that HPO firm is most likely to implement ERM by more than 65 percent compared to the non-HPO firm, consistent with the positive association provided by subsample analysis. Thus, firms with high financial performance have the incentive to provide resources in absorbing the high cost of ERM. The results suggest the importance of HPO in the policy formulation for ERM implementation.

International Entrepreneurship Orientation and Internationalization of Engineer-Entrepreneurs

(Zizah Che Senik, Ridzuan Md Sham, Shifa Mohd Nor, Nor Asiah Omar, page 369-384)

This study investigates the pertinent components of International entrepreneurship orientation (IEO) on the internationalization of engineer-entrepreneurs in Malaysian construction industry. The data was gathered using a set of questionnaire from 50 Malaysian engineer-entrepreneurs. The mean values indicate that the IEO components pertinent to successful internationalization of construction firms include monitoring the trend of export markets, seeking contact with international clients, exploring business opportunities abroad and improving products and business performance. These IEO components reflect the obligatory learning behavior indicating that the engineer-entrepreneurs need to seek knowledge on the international market, as well as to create contacts and networking with relevant acquaintances for fruitful internationalization. This study contributes guidelines for firms to engage with global expansion that may benefit the economic development of a nation.

Integrating TPB, TAM and DOI Theories: An Empirical Evidence for the Adoption of Mobile Banking among Customers in Klang Valley, Malaysia

(Syed Shah Alam, Nor Asiah Omar, Ahmad Azmi Mohd Ariffin, Nik Mohd Hazrul Nik Hashim, page 385-403)

The aim of this research is to examine the factors that affect mobile banking adoption intention among customers in Malaysia by integrating Diffusion of Innovation (DOI), Theory of Planned Behavior (TPB) and Technology Acceptance Model (TAM). An online questionnaire with a 5-point Likert scale was used to collect 300 valid responses.  We tested eight potential factors to understand customersí intention to adopt mobile banking: perceived ease of use, relative advantage, compatibility, trialability, attitude, perceived behavioral control, social norms, and perceived risks.  Our findings reveal that all the factors significantly influence mobile banking usage intention. Perceived behavioral control appeared to be the strongest predictor, while perceived risk is the only factor that produced a negative relationship with mobile banking adoption. This research provides a general guideline for banks to strategically plan, implement, and design efficient mobile banking services in Malaysia.

Managing Conflict in the Self-Managed Project Team

(Zaleha Yazid, Lokhman Hakim Osman, Roshayati Abdul Hamid, page 405-422)

This study focuses on exploring the occurrence of conflict in Self-Managed Project Teams (SMPTs) in small and medium sized Knowledge-Intensive Firms (KIFs). It contributes to the understanding of how the SMPT is influenced by different types of conflict and their management strategies. The study was conducted using a longitudinal approach via weekly telephone interviews and face-to-face interviews with the respondents at a variety of Malaysian businesses. An in-depth exploration reveals the interrelatedness between different types of conflict and the different approaches to conflict management. The study suggests that conflicts can be harmful or beneficial depending on when it occurs during the project. Conflict and its management strategies are fostered or hindered by factors such as the approaching deadlines and blaming teammates for project complications. The implications of this study concern the roles of the management, who should facilitate the conflict resolution in order to increase the team members understanding of their project goals and objectives.

Network Positioning and Its Impact on Organizationsí Relational Capital: An Exponential Random Graph Model (ERGM) Approach

(Lokhman Hakim Osman, Zaleha Yazid, Mohd Rizal Palil, page 423-437)

With an increasing degree of connections among firms forming networks of economic activities, it is timely to assess the potential of these upon embedded firms.  This article presents empirical evidence to that end.  It distinguishes between decentralized and centralized network structures that illustrate the difficulties encountered in managing an inter-firm network structure.  Although considerable studies have been performed in network issues affecting firmsí performance, very few researches analyses the complicating attributes of a centralized network structure in relation to its effects on firm performance.  Thus, this article described the different attributes of the centralized network and their effects on firmsí relational capital outcomes.  Using social network analysis methodology, this study found that certain structural positions occupied by firms in network impact relational capital outcome.  This study is significant as it contributes to prudent management of resources in managing complex network structure.  Future research is also discussed.

Relationship between Intellectual Capital and Innovative Capabilities: Evidence from Malaysian SMEs

(Norhafizah Abu Hasan, Nor Liza Abdullah, page 439-460)

This study examines the relationship between intellectual capital and innovative capabilities in Malaysian small-and-medium-sizes enterprises (SMEs). The theoretical arguments of resource-based view (RBV) are utilized in explaining the conceptual framework and hypotheses development of this study. Accordingly, this study details intellectual capital into human capital, relational capital, structural capital and information capital and examines their relationships with innovation capabilities. In this study, innovation capabilities are divided into; (1) product and service innovation; (2) process and technical innovation. The significance of these variables is tested empirically among CEOsí representatives from Malaysian SMEs. This study utilizes multiple regression analysis and the findings support positive relationships between human, relational and information capital on innovative capabilities (i.e. product and service innovation) and negative relationship between structural capital and innovation capability. This study provides empirical evidence utilizing strategic human capital resources on unit performance.

Single Tier Tax System, Dividend Payouts and Family Firms: Evidence from Malaysia

(Ida Suriya Ismail, Mohd Rizal Palil, Rosiati Ramli, Mara Ridhuan Che Abdul Rahman, Lokhman Hakim Osman, page 461-474)

This study has two objectives. First, it compares the dividend payouts of family firms and non-family firms for two specific periods, before and after the implementation of a single tier tax system (STT) in Malaysia. Second, it examines the relationship between family firms and dividend payouts. Using 483 firm-year observations, this study suggests that family firms pay lower dividends than non-family firms during both periods. In addition, the mean value of dividends paid by family firms decreased after the implementation of STT. It is also evident that a negative relationship exists between family firms and dividend payouts; family firms are less likely to pay dividends that non-family firms. A few unique characteristics of family firms, such as long-term investment orientations, smaller company size and greater dependence on leverage, may result in family firms retaining their cash rather than declaring dividends

The Impact of Asymmetric Information on Foreign Portfolio Investment Flow

(Nurul 'Ain Mohd, Aisyah Abdul-Rahman, Mohd Hasimi Yaacob, page 475-494)

This paper examines the relationship between asymmetric information and Foreign Portfolio Investment (FPI). Using daily stock price based on firm-level data from ASEAN+3 countries, we analyse the information asymmetry through market microstructure. Asymmetric information is measured by two ratios: namely, Amivest and Proportional Spread. Our static panel regression results indicate that asymmetric information through Proportional Spread negatively affects FPI; however, Amivest does not give any significant impact. The inverse effect of Proportional Spread suggests that high asymmetric information of the stock price tarnishes the capital inflows of foreign portfolio investment.  Hence, policy makers should promote higher level of market transparency.

  The Formation of Community Heroes in Malaysia: An Extended Theory of Planned Behavior

(Siti Daleela Mohd Wahid, Abu Hanifah Ayob, Wan Mohd Hirwani Wan Hussain, page 495-509)

Social entrepreneurs are viewed as having the abilities to eradicate social and economic problems. However, it is reported that less than 2% of Malaysians are involved and participated in social entrepreneurship (SE) activities. Consequently, Entrepreneurial Action Us (Enactus) Foundation was introduced which aims to produce students with social entrepreneurial skills holistically. Having said that SE is desirable, one pressing question arises; after Enactus participants graduated- to what extent are they willing to be the communityís potential future heroes? A quantitative approach was used with 390 active Enactus participants in Malaysia. The entire sample reported that the tested variables had positive relationships with SE intention. Practical implication of this study would benefit the Ministry of Education and Enactus Foundation especially in formulating SE education programs for higher education institutions and increasing the number of community heroes who will help solving socio-economic problems.



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