Malaysian Management Journal (MMJ) is a refereed journal published annually in July by the UUM Press, Universiti Utara Malaysia. The main objective of the journal is to provide a channel for the publication of articles based on empirical research (es), original thoughts, comparative studies and commentaries in business management covering the areas of process, policy, strategy, theory, and behaviour with a focus on Malaysia, the Asian region and other emerging economies. The emerging economies contribute significantly to economic growth; this, coupled with their diverse and unique culture, offers a wealth of experience and knowledge that can be learned and shared. Thus, the MMJ provides a platform for the exchange of ideas, and sharing of thoughts, experience and knowledge, where business management, particularly in the emerging economies, is concerned. This is an open access journal which means that all content is freely available without charge to the user or his/her institution. Users are allowed to read, download, copy, distribute, print, search, or link to the full texts of the articles in this journal without asking prior permission from the publisher or the author.
DRIVING EMPLOYEE PERFORMANCE: E-LEADERSHIP AND FLEXIBLE WORK ARRANGEMENTS IN POST-FUEL SUBSIDY NIGERIA
The removal of fuel subsidies in Nigeria has significantly changed the country’s economic environment, resulting in higher living and transportation costs. These economic pressures have had a negative effect on employee performance and livelihood, creating an urgent need for strategies to mitigate their consequences. This study investigated the combined influence of flexible work arrangements (FWAs) and e-leadership on the performance of non-teaching staff at Bayero University, Kano. The research was underpinned by the Job Demand-Resources (JD-R) Theory, which provided a framework for understanding how job demands and resources interacted to shape employee outcomes. The data was collected from 190 non-teaching staff members using non-probability sampling technique, and regression analysis was performed using SPSS version 25. The results demonstrated a significant positive relationship between e-leadership and employee performance, emphasizing the importance of digital leadership in driving productivity. In addition, one dimension of FWAs was also shown to have a significant effect on employee performance, indicating that flexible work options could assist employees in managing economic challenges more effectively. The findings highlighted practical implications for both policymakers and organisational leaders. Specifically, they suggested that adopting FWAs and strengthening e-leadership practices could serve as effective strategies for sustaining employee performance in times of economic uncertainty. Beyond its practical contributions, the study has also enriched the literature on workplace adaptability by highlighting the strategic value of FWAs and e-leadership in turbulent environments. Finally, recommendations for policy and practice are provided, alongside directions for future research to further examine the long-term impact of these interventions.
Hak Cipta (c) 2026 Malaysian Management Journal https://creativecommons.org/licenses/by/4.0
BALANCING ACT: HOW INTERNAL AND EXTERNAL RISKS SHAPE WORKING CAPITAL DECISIONS IN MALAYSIA
This paper examines how working capital investment decisions relate to various internal and external risks faced by Malaysian firms. The study employed fixed effects instrumental variable estimation to analyse cross-sectional panel data from 406 firms listed on the Malaysian Securities Exchange (Bursa Malaysia). The results confirmed the hypothesised relationships between the various risks firms face and their working capital investment decisions. These relationships were statistically significant at the 5% or 1% levels for all risks, except for credit risk. Additionally, the connection between economic growth and a firm’s market strength in relation to its working capital investment was not confirmed. The industry analysis indicates that firms in the basic materials sector were more sensitive to all measured risks than firms in other sectors. This research fills a gap in the emerging economies literature by examining how working capital investment decisions relate to internal and external risks for Malaysian firms. The findings may assist firms in making more informed decisions regarding their working capital investments. To date, this is the first study to examine the impact of a broad range of risks on working capital investment decisions for firms in an emerging economy.
Hak Cipta (c) 2025 Malaysian Management Journal https://creativecommons.org/licenses/by/4.0
OPPORTUNITY IDENTIFICATION OF NASCENT ENTREPRENEURS IN AGRICULTURAL BUSINESSES: AN EVALUATION IN SOUTHWESTERN NIGERIA
Many emerging markets in developing countries have seen a decline in entrepreneurial activity. This is especially concerning because entrepreneurs constitute a significant share of the workforce, enterprises, and national revenue. In this turbulent time of the COVID-19 crisis and its aftermath, the struggle for economic survival has added considerable pressure on the Nigerian government. Despite the economic challenges, entrepreneurs can still play a significant role in reviving the economy However, for entrepreneurship activities to take place, opportunity identification must first occur. To better understand the factors that influence the identification of entrepreneurial opportunities, this study has examined the potential effects of entrepreneurial social networks, prior knowledge, self-efficacy, proactive personality, alertness, and creativity on opportunity identification. The study employed an exploratory research design and several quantitative methods in the analysis of the collected data. The population of the study was the total number of registered nascent entrepreneurs in Southwestern Nigeria, comprising six (6) states including Lagos, Ogun, Oyo, Osun, Ondo, and Ekiti. A muti-stage sampling technique was used, while primary data was collected directly from all the participants by administering the study questionnaires. The number of questionnaires administered was 300, with a sample size of 103, which is this study’s minimum according to the Gpower result. The study found that entrepreneurial alertness and self-efficacy exhibited the strongest correlation, suggesting that entrepreneurial ability was closely linked to entrepreneurial skills. Entrepreneurial creativity and entrepreneurial self-efficacy also demonstrated a strong relationship, indicating that higher entrepreneurial skills were associated with greater entrepreneurial commitment. These variables had jointly enhanced the performance of emerging entrepreneurs in Southwestern Nigeria, highlighting the need for entrepreneurial training programs and policies that could help cultivate these abilities and characteristics. Therefore, this study has shown that opportunity identification shaped by social networks, prior knowledge, self-efficacy, proactive personality, alertness, and creativity could play a critical role in driving business sustainability by enabling entrepreneurs to recognize and exploit viable, innovative, and enduring market opportunities.
THE EFFECT OF WORK ETHICS ON JOB PERFORMANCE: AN ASSESSMENT OF SELECTED FEDERAL MINISTRIES IN THE FEDERAL CAPITAL TERRITORY OF NIGERIA
Employee behaviour at work can be ethical or immoral, and is typically linked to work ethics. The purpose of this study is to investigate the relationship between government officials' performance and work ethics. In this study, work ethics and their effect on performance are assessed using a structural model. The methodology utilized was the exploratory type. A total of 384 self-administered questionnaires were distributed to respondents who were selected using a convenience sample technique. Using a six-point Likert scale, only 157 returned self-administered questionnaires were given to 157 respondents who were chosen at random from administrative positions in several Nigeria Federal Ministries situated in the Federal Capital Territory. The Multidimensional Job Ethics Profile (MWEP) was the tool used to evaluate ethical behaviour in the workplace. The findings obtained support the validity and accuracy of the structural model as a means of assessing the connection between performance and work ethics. The study concluded that work ethics have a significant influence on workplace performance, emphasising their critical role in enhancing job performance.
IMPLEMENTATION OF AVIATION SAFETY CULTURE TO PREVENT FLIGHT ACCIDENTS AT HALIM PERDANAKUSUMA AIR FORCE BASE JAKARTA
This study aims to identify and analyze of safety culture in organizations of aviation sector through risk management analysis, the role of leadership in building a safety culture, self-assessment and implementation of aviation safety culture. This research was conducted at Halim Perdanakusuma Air Force Base Jakarta. Data collection was conducted using interviews, observation, questionnaires, and documentation study methods. The analysis technique used the Hazard Identification, Risk Assessment and Risk Control method scheme to identify Software, Hardware, Environment, Liveware and Liveware element based on AS/NZS 4360:2004, safety leadership dimensions, and safety culture dimensions by ECAST. The results of risk management analysis indicate that flight activities at Halim Perdanakusuma Air Force Base Jakarta show moderate and low risk values. The risk values of the environment and lifeware elements are yellow zone (moderate), the hardware and software element are green zone (low). The leadership role in safety culture has been implemented based on an analysis of 17 dimensions of safety leadership which is 13 dimensions (76.5%) have been running "Well", namely belief, awareness, commitment, attitude and behavior, priority, decision, agenda, resources, spirit of the movement, active involvement, tradition, appreciation, and performance. While 4 dimensions (35% to 70%) have been running "Quite Well" are monitoring and follow-up, values, and policy socialization. Self-assessment of safety culture implementation using 6 dimensions, that is commitment, behavior, awareness, adaptability, information, and justness, have a Level-4 Cooperating, shows that all staffs are engaged to develop cooperation and commitment to improving safety. Overall shows that Halim Perdanakusuma Air Force Base Jakarta has implemented a safety culture to reduce flight accidents and supports national priority programs in flight safety.
EXTERNAL FINANCIAL FLOWS, FISCAL POLICY AND ECONOMIC SUSTAINABILITY IN NIGERIA: INSIGHTS FROM SOLOW GROWTH HYPOTHESIS
The attainment of the Sustainable Development Goals (SDGs), introduced by the United Nations leaders in 2015, is anchored on three pillars: economic, social, and environmental sustainability. Economic sustainability refers to the capacity to enhance the overall income and output of all economic agents within the circular flow—both in the present and into the future. This study examines the effect of external financial flows and fiscal policy (internal flows) on economic sustainability in Nigeria, within the framework of the Solow Growth Hypothesis. The study utilises secondary data sourced from the World Development Indicators and the Central Bank of Nigeria's Statistical Bulletin, spanning the period from 1991 to 2022. External financial flows are represented by foreign direct investment, foreign aid, remittances, net exports, and external debt, while fiscal policy is captured through government expenditure on education, government expenditure on health and tax revenue. Economic sustainability is proxied by GDP per capita income. The findings reveal that foreign direct investment and remittances have a positive and significant effect on GDP per capita income, whereas net exports exhibit a negative and significant effect. With respect to fiscal policy, government expenditure on health and tax revenue are found to have a positive and significant impact on GDP per capita income. The study concludes that foreign direct investment, net export and remittances when effectively managed and strategically channeled, have the potential to enhance Nigeria’s economic sustainability. Furthermore, fiscal policy measures particularly capital expenditure in health and improved tax revenue generation can play a crucial role in sustaining long-term economic growth. It is therefore recommended that the government create a viable market and a conducive business environment to attract foreign direct investment and strengthen fiscal management frameworks.
MODERATING ROLE OF ORGANIZATIONAL STRUCTURE ON THE RELATIONSHIP BETWEEN LEADERSHIP STYLES AND DIGITAL CULTURE ADOPTION
This study explores the complex interplay dynamics between leadership styles, organizational structure, and digital culture adoption within Katsina State Ministries, Departments and Agencies (MDAs), with particular emphasis on how these elements influence digital transformation efforts. Data were collected from 630 employees across four randomly selected MDAs—Katsina State Library Board, State House of Assembly, Ministry of Agriculture and Livestock Development, and Katsina State Television Authority. Partial Least Squares Structural Equation Modeling (PLS-SEM) was employed for data analysis. The findings reveal a significant positive relationship between transformational leadership style and digital culture adoption, as well as a significant but negative relationship between transactional leadership style and digital culture adoption. However, the analysis did not reveal any significant moderating effects of organizational structure on these relationships. While the study provides valuable insights, limitations such as the use of cross-sectional data and the limited generalizability of the findings should be noted. The results underscore the critical role of leadership—particularly transformational leadership—in driving digital culture adoption. Based on these findings, the study recommends that organizations invest in leadership development programs that promote transformational leadership behaviors and foster a culture of digital innovation. Additionally, future research should consider longitudinal or experimental designs, employ multi-source data collection methods, and explore other organizational contexts to enhance the robustness and applicability of the findings. Further investigations into the mechanisms and long-term impacts of leadership and structural reforms are also encouraged to provide actionable guidance for organizations navigating digital transformation in today’s evolving landscape.
APPRAISAL OF REGULATORY FRAMEWORKS ON ENVIRONMENTAL PROTECTION POLICIES AND WASTE MANAGEMENT IN KWARA STATE, NIGERIA
Waste management has become a pressing global issue, requiring the enactment and enforcement of comprehensive regulatory frameworks to promote sustainability and protect the environment. Despite the available legislations, inadequate resources and inefficient monitoring impede their proper execution, allowing noncompliance and illicit trash disposal to continue. Illegal waste sites are popping up all over the city of Kwara in Nigeria. Improper garbage disposal appears to suggest a breakdown in the state's regulatory system for environmental protection and waste management. This paper has examined the regulatory framework of environmental protection policies and waste management in Kwara state. Both primary and secondary data were used. The population of the study was 280 and the sample size was 172, which was determined through a specific formula. A total number of 172 questionnaires were distributed to the selected respondents and from these 154 responses were retrieved. Findings from the study showed that the majority of the respondents disagreed that the regulatory frameworks did not prioritise the reduction, reuse, and recycling of waste materials. These respondents were of the view that there were clear guidelines and procedures for the proper handling and disposal of hazardous waste. The study also showed that the available regulatory frameworks have encouraged public participation and awareness of waste management practices in the state. Consequently, this paper has recommended that policymakers collaborate closely with communities to design strategies that incorporate local infrastructure, resources, and behaviours to reduce waste and promote recycling. There should also be frequent monitoring to ensure compliance. The rules and policies must be amended to ensure stakeholder engagement in waste management services.
POLITICAL CONNECTIONS, CORPORATE GOVERNANCE AND INVESTMENT EFFICIENCY: EVIDENCE FROM MALAYSIAN FIRMS
This study investigates the moderating role of corporate governance in the relationship between political connections and investment efficiency. Using a sample of Malaysian publicly listed firms from 2001- 2017, we find that political connections are negatively correlated with firm investment efficiency. Moreover, the relationship is robust with the inclusion of corporate governance mechanisms, which moderated the potential consequences of agency problems in politically connected firms. The evidence suggests that corporate governance appears to be an effective mechanism to improve investment efficiency in politically connected firms. Consistent with the agency costs of free cash flow theory, we also discover that political connections have a more significant detrimental impact on overinvestment compared to their positive influence on underinvestment. Nevertheless, the interaction results in corporate governance hold regardless of overinvestment or underinvestment. Further analysis reveals that domestic institutional ownership, Big Four auditors, and audit committees are effective governance mechanisms, whereas similar observations do not hold for foreign institutional ownership, board size, board independence, and director ownership. Resultantly, high direct policy relevance is provided for governance practitioners and policymakers in monitoring the investment activities of PCFs.
Hak Cipta (c) 2024 Malaysian Management Journal https://creativecommons.org/licenses/by/4.0
PERFORMANCE-BASED REWARD SYSTEM AND ORGANIZATIONAL AGILITY IN THE BANKING INDUSTRY IN NIGERIA
As organizations strive to maintain a competitive edge, the need for a more agile workforce has become increasingly apparent. Performance-based reward systems have emerged as a powerful tool to facilitate this transformation, by aligning employee motivation with the organization’s strategic goals. However, the overemphasis on individual performance metrics may inadvertently promote unhealthy competition and undermine collaboration. Hence this study examines the effect of performance-based reward system on organizational agility in the banking industry. Specifically, the study seeks to determine how competence-based reward system will affect organizational agility; to examine the impact of reward and incentives on organizational agility. The study has adopted a survey research design to obtain data from a population of 221 staff members of the Guarantee Trust Bank (GTB), which represent the broader banking industry in Nigeria. A sample of 142 was drawn through Taro Yamane and sampled randomly. The study used primary data and questionnaires. Multiple regression was used to test the hypotheses. The study found that organizational agility was affected by the competence-based reward system; and incentive and reward proxy by continuous improvement incentives, teamwork reward, and balancing reward objectives determines the organizational agility of the GTB and the broader banking industry in the country. In conclusion, the performance-based reward system has a significant effect on organizational agility in the banking industry in Nigeria. Thus, the study recommends that banks and other financial organizations should adopt the following aspects of a competence- based reward system such as continuous learning, cross-functional collaboration, and skill development as a strategy for achieving a high level of organizational agility in the GTB through its employees.
FACTORS EFFECTING PADDY PRODUCTIVITY IN THE MADA REGIONS, MALAYSIA
Rice commodity is becoming increasingly important for most countries worldwide, particularly those where rice is the main staple meal. This study examines the socioeconomic attributes of farmers, their perspectives on management practises, and the implementation of paddy machinery technology in the four MADA (Muda Agricultural Development Authority) regions in Malaysia. The study aims to determine the main factors effecting paddy productivity in the MADA regions. Primary data was collected from paddy farmers in the four MADA zones using a standardised questionnaire. The data was collected from 673 respondents from four regions of MADA. The analysis employed both descriptive statistics and regression analysis. The results indicate that variables such as land area, selection of paddy planting as the primary occupation, increased time spent on paddy farms, gender, and the educational background of farmers have a significant impact on paddy productivity in the MADA regions. The findings also show that, only a small percentage of respondents (6.2%) followed the crop schedule, and 93.8 percent of them were late. The utilisation of machinery in paddy cultivation achieved the following results: nine farmers achieved a success rate of 85.71 percent, while a majority of farmers (662 farmers) achieved a 71.43 percent utilisation rate, with one farmer earning the lowest usage rate of 57.14 percent. In conclusions the study has found that it is imperative to promote the use of management practises and advanced machinery technologies among paddy farmers to effectively increase productivity.
PUBLIC ADMINISTRATION REFORM: AN IMPETUS FOR GOOD GOVERNANCE AND POLITICAL SECURITY IN NIGERIA
Over the last decade, the Nigerian government has undertaken a wide ranging policy, institutional, and legal initiatives to enhance the country’s public service delivery. Despite these efforts, the nation has grappled with a myriad of issues that still undermine good governance and political security. These challenges include weak institutional capacity, corruption, poor leadership, inadequate public service delivery, political instability, limited resources, poor infrastructure, and a shortage of skilled human resources. This paper examines the strategies and mechanisms employed by public administrators in Nigeria to enhance good governance and political security, analyses the impact of effective public administration on political stability and security and identifies the challenges affecting the implementation of good governance principles through public administration in Nigeria. The study has adopted the New Public Management Theory proposed by Hood in 1991 and relied on secondary data. Findings from the study show that Nigerian public administration has undergone a series of reforms to enhance good governance and political security through various strategies and mechanisms such as capacity building, international cooperation, and ethical conduct. The study also reveals that corruption and lack of accountability, bureaucratic bottlenecks and insufficient capacity among others have been identified as challenges of the implementation of good governance principles in Nigeria. The paper recommends that the encouragement and promotion of transparency and accountability be given top priority; citizen participation should also be encouraged in the planning and decision-making process; empowering local governments through the allocation of adequate resources to foster political security. The paper also recommends the establishment of a proper recruitment base to promote professionalism and meritocracy in the public service.
PREDICTIVE POWER OF SELF-EFFICACY, FAMILIARITY WITH TRAINING CONTENT ON JOB PERFORMANCE: MODERATING EFFECT OF TRAINING EFFECTIVENESS IN OMAN’S HIGHER EDUCATION INSTITUTIONS
The higher education institutions (HEIs) in Oman have witnessed rapid development over the last decade; and yet, the quality of their training programs programmes has not yielded the anticipated results. The desired outcome, which failed to meet expectations, pertains to the effectiveness of these programs in enhancing employee job performance. This study aims to investigate the influence of self- efficacy, trainee familiarity with training content and employees’ performance in Oman’s higher education sector. Additionally, the study explores the moderating effect of training effectiveness on employee’s performance. The researcher examined 184 academics as well as administrative employees that participated in a training program sponsored by Takatuf, a consulting firm responsible for assessing, training, and developing employees in Oman. Results indicated that self-efficacy and familiarity with training content contribute to high employee job performance in the country’s HEIs, confirming the significant moderating role of training effectiveness in this relationship. Furthermore, the study suggests two implications for human resource practices. First, it is crucial for managers to provide comprehensive training-related information aimed at increasing self- efficacy before the actual training program. Second, HR managers and individuals can jointly improve the performance effectiveness by creating suitable methods for fostering self-efficacy. The findings suggest that organizations can enhance job performance and reduce turnover intention intentions by improving the effectiveness of training programs for employees. There is limited research linking self-efficacy, training effectiveness, and job performance in HEIs, particularly within member countries of the Gulf Cooperation Council (GCC). This research contributes to the expansion of theoretical and managerial doctrines regarding the relationships among the identified variables. Therefore, this research represents a unique attempt to determine the effectiveness of training programs in HEIs grappling with transitional challenges.
ENRICHMENT OF SYSTEMS THINKING FOR PROBLEM SOLVING IN ENGINEERING SYSTEMS USING THE HERMENEUTIC LOOP: CASE STUDIES FOR DESIGNERS IN THE FIELD OF REMOTE COMMUNICATION
The systems thinking approach to problem solving is a dynamic and productive approach. However, emphasizing only the objective aspects of a phenomena and neglecting their subjective aspects can decrease its problem solving power. In order to enhance the problem solving power of systems thinking, it is proposed in this article to enrich systems thinking by using the hermeneutic loop. This applied research adopts practical aspects of systems thinking and hermeneutics in understanding and solving problems more effectively. The proposed approach is comprised of an additive loop, named the hermeneutic loop, concerning simultaneously “the whole system and its parts” and “subjectively and objectively”. Requirements of systems thinking are highlighted involving the holism and life cycle of the system. A summary of the considerations for systems thinking regarding holism and lifetime are as follows: (1) feedback in lifetime, (2) feed forward, (3) combining human and tools, (4) resources, (5) stock and flow and (6) carrying capacity (saturation). The utilization of this enriched systems thinking is investigated in three real engineering design processes, including case studies for designers in the field of remote communication. As the result, the proposed enriched systems thinking provides an improved understanding of the whole, which improves the solving power of the designers of components, and adds subjective product design to the objective design.
INFLUENCE OF INFORMATION TECHNOLOGY ON INTERNAL CONTROL SYSTEMS IN TERTIARY INSTITUTIONS IN OSUN STATE, NIGERIA
The study examined how information technology affects internal control systems in tertiary institutions in Osun State. Specific goals were to ascertain whether or not information technology has a significant impact on the internal control systems and internal audit processes of tertiary institutions. A survey research design was chosen. A sample size of 100 respondents participated in the study. This study used the stratified sampling method and a regression technique was used for data analysis. The findings showed that internal control systems and internal audit procedures in tertiary institutions in Osun State were highly influenced by information technology with t= 20.02 P< 0.0 and t= 19.049p<0.05, respectively. It was concluded that internal control systems and internal audit procedures at tertiary institutions were strengthened and improved by information technology. The study has recommended that tertiary institutions adopt information technology in order to improve their internal control frameworks. To keep their staff’s necessary skills and knowledge current, the management of tertiary institutions should encourage both on-the-job and off- the-job training in information technology. To stop fraud, internal control mechanisms should be put in place. To establish who will be held accountable for violations, tasks must be digitally separated effectively.
CORPORATE GOVERNANCE REFORM AND SUSTENANCE OF STATE-OWNED ENTERPRISES (SOES) IN ZIMBABWE
The study sought to ascertain corporate governance reforms that foster sustenance of the SOEs in Zimbabwe and how such reforms can be implemented. This study has used a mixed-methods technique and a pragmatist philosophy. A cross-sectional survey design was employed, whereby structured questionnaires and interviews were used to collect data. Top and middle management, board members, board chairpersons, and CEOs of Zimbabwe’s SOEs made up the target population. For quantitative data, a sample size of 351 people was obtained using the sample process created by Krejcie and Morgan (1970). Interviews were done with sixteen (16) people until saturation was achieved. Stratified random sampling was used in the study to choose respondents for the quantitative data collection. To choose interview subjects for the qualitative data, purposeful sampling was applied. The quantitative and qualitative data were analyzed using SPSS version 23 and NVivo version 12, respectively. According to the study, the primary corporate governance reforms for the survival of the SOEs in Zimbabwe included the following: open nomination processes for the SOEs; removal and resignation of directors who did not comply with best corporate governance practices; limitations on board member compensation; and changes to the executive directors’ terms of service. This research has shown that best corporate governance practices in the SOEs are brought about by reforming the Board Appointments Board (RAB). In order to ensure that corporate governance reforms are implemented effectively, the present study has suggested that term limits, with a maximum of ten (10) years, in Chief Executive Officer Employment contracts be strictly enforced.
SPECIAL BORDER ECONOMIC ZONES BETWEEN MALAYSIA AND THAILAND
The evolving landscape of global trade and economic cooperation has spurred the establishment of Special Border Economic Zones (SBEZs) as a comprehensive strategy to catalyse economic growth and enhance collaboration between neighbouring countries. These zones have developed as a distinctive economic strategy to harness the potential of cross-border collaboration, while addressing the particular socio- economic difficulties of border regions as globalisation continues to change the dynamics of global commerce and investment. However, the main challenge to such an effort is understanding how to fully tap the potential of the SBEZs to facilitate cross-border trade, drive economic development, and advance regional integration while simultaneously minimising potential hazards and unfavourable effects. This article provides an in-depth analysis of the relationship between Malaysia and Thailand and the relevance of a SBEZ between the two neighbors. It aims to pursue these objectives: (1) To delve into the historical trajectory of economic progress in the relationship between Malaysia and Thailand, (2) To critically examine the importance of the SBEZs in the Malaysia-Thailand context from various aspects, and (3) To critically evaluate the SBEZs by comparing the economic development of Malaysia and Thailand and by analysing the factors that led to the Thailand-Malaysian SBEZ. Content analysis was used to analyse the secondary data obtained from journals, publications, and official reports. The findings are as follows: 1) There have historically been several economic periods in the relationship between Malaysia and Thailand; 2) In the Malaysia-Thailand region, Special Border Economic Zones are significant in terms of their role in trade facilitation, economic growth, investment, industrialisation, and regional economic balance; and 3)Three factors had an effect on the development of the SBEZs.
THE ROLE OF EXTENDED VALUE CHAIN ACTIVITIES IN ENHANCING ECONOMIC VALUE ADDED PLANTATION COMPANIES IN MALAYSIA
The palm oil industry in Malaysia has faced issues of lower palm oil price and limited land area, and these issues have created a challenging environment for plantation companies to operate in. Plantation companies are constrained in maximizing their profits. Thus, this paper aims to examine the Economic Value Added (EVA) and the factors that influence the EVA of different value chain activities. The dynamic generalized method of moments (DGMM) estimators were adopted for the analysis and the focus was on the -40 Malaysian plantation companies that were listed in the Bursa Malaysia from 2010 to 2018. The results revealed that both downstream integrated activities, namely oleo-chemicals/biodiesel and refineries activities had a significant influence on the plantation companies’ EVA, with the coefficient value 1.12 and 0.09 respectively. Other factors such as the gross margin, crude palm oil price, and exchange rate also significantly influenced the plantation companies’ EVA. The empirical results which were based on the plantation companies’ EVA were influenced by different value chain activities as expected. The findings show that the downstream integrated activities like refineries, and oleo-chemicals/biodiesel activities have played a significant role in increasing the EVA of plantation companies.
BUSINESS MODEL CANVAS AND SWOT ANALYSIS IN THE RECONSTRUCTION OF COMPETITIVE STRATEGY: A CASE STUDY VCI INDONESIA COMPANY
This study aims to develop an advanced business model canvas (BMC) by incorporating the results of a SWOT analysis in the context of VCI Indonesia Company. The research focuses on understanding the competitive strategy of VCI Indonesia Company, particularly those that emphasize natural ingredients and target specific consumer segments. To achieve this, interviews were conducted to gather insights related to the nine pillars of BMC and SWOT analysis from VCI Indonesia Company. The collected data was then analyzed, resulting in the compilation of BMC and SWOT analysis tables. The findings of the study highlight the competitive advantages of VCI Indonesia Company in utilizing natural ingredients and their potential for expanding and implementing new marketing strategies. By incorporating the SWOT analysis results into an enhanced BMC model, this research introduces a novel competitive strategy that can ensure the company’s sustainability and adaptability to changes in the market. Notably, this study is unique in its focus on the business strategy of natural body care product companies, offering valuable insights from the consumer’s perspective that have not been extensively explored in previous research. The practical implication of this research lies in providing business recommendations based on consumer preferences and market competition for companies that sell natural products.
Hak Cipta (c) 2023 Malaysian Management Journal https://creativecommons.org/licenses/by/4.0
AFFORDABILITY OF AFFORDABLE HOUSING IN NORTHERN REGION OF MALAYSIA
The problem of housing affordability has emerged as a significant concern in urban centers, particularly in emerging countries. While each country defines affordability differently, housing affordability refers to the capacity to possess a residential property or dwelling that satisfies fundamental living requirements in relation to its price, standard, and whereabouts. However, the majority of generally comprised of individuals and families with lower to moderate incomes, residing in various urban areas across Malaysia find it difficult to purchase a home. The aim of this research is to evaluate the housing affordability index in Malaysia’s Northern Region (Kedah, Pulau Pinang, Perak, and Perlis) by proposing a maximum affordable housing cost determined by income level. The findings revealed that the housing affordability index has deteriorated as a result of growing income-price inequalities. It is suggested that government or housing policy makers to be responsible to establish a fair housing price that is determined through convincing and widely accepted judgments. Establishing prices could be based on genuine supply and demand dynamics, rather than being influenced by unfair trading practices, manipulation, or exploitation.
THE AGILITY AND COMPASSIONATE LEADERSHIP OF THE NEXT NORMAL
This research investigates insight into how leaders could lead the rising waters of the Covid-19 pandemic with agility and compassion. Based on pertinent literature, leaders must redefine their leadership mindset to harness team behavioural change toward team dynamics in organizational resilience. Through phenomenological research of eight companies’ leaders, a proposed model was presented to define the behavioural shift that facilitates leaders in orientating team mindset while embracing compassion. The next normal needs of the organization on the change of leaders’ behaviour, implying that building unique and pleasing agile and compassionate practices would lead to an improved organizational team workplace. This focuses on leaders’ efforts to empower teams through a cohesive concept to enable long-term team success. The research contributes to the body of knowledge through its constructivist approach and identification of underlying team dynamics pivotal for organizational resilience.
EFFECTS OF EXTENDED VALUE CHAIN ACTIVITIES ON PROFIT EFFICIENCY IN MALAYSIAN PLANTATION COMPANIES
The palm oil industry in Malaysia is the main driver of Malaysia’s agricultural sector due to its significant contribution. High demand and attractive earnings of palm oil have attracted high participation from plantation companies in this industry. Therefore, this study aimed to assess the level of profit efficiency of plantation companies involved in different value chain activities, as well as the factors that influence the profit efficiency of these plantation companies. A total of 40 Malaysian plantation companies listed in Bursa Malaysia from 2000 to 2018 with different value chain activities were examined using panel data. The evaluation of profit efficiency was based on data analysis, which included working capital costs, labour costs, and property, plant, and equipment (PP&E) costs that affect the plantation companies’ profit function. The parametric approach, also known as Stochastic Frontier Analysis (SFA), was used to assess the profit efficiency of these plantation companies empirically. The results revealed that the average profit efficiency of 40 plantation companies was 60.3 percent, implying that an estimated 39.7 percent of profit was lost due to a combination of technical inefficiencies and allocative inefficiencies in plantation companies. Other findings were based on value chain activity categories (pure upstream plantation companies and downstream integrated plantation companies), whereby downstream integrated plantation companies had the highest profit efficiency (76.6%) when compared to the pure upstream plantation companies (54.2%). As a result, the study showed that plantation companies engaged in extended value chain activities were more profit efficient than plantation companies that did not extend their value chain activities (referring to pure upstream plantation companies).
THE EFFECT OF CORPORATE GOVERNANCE ON EARNINGS MANAGEMENT IN NIGERIA’S FINANCIAL INSTITUTIONS: MODERATING ROLE OF CEO COMPETENCY
The purpose of this paper is to examine the moderating effect of CEO competency on the relationship between corporate governance (CG) and earnings management (EM) of Nigerian financial firms. The sample covered 37 financial firms listed in the Nigeria Stock Exchange (NSE) from 2010 to 2019. This study adopted a panel regression estimator to analyse the testable hypotheses. It was found that CEO competency only moderated the relationship between audit committee and EM but not on the other CG variables. This finding implied that CEO competency was important when accounting oversight was in balance with EM. While the agency hypothesis on CG was supported, the study upheld the idea that CEO competency undermined EM. As a result, the study advocates for broader CEO oversight and resource measures, including CEO remuneration and CEO social capital, to lessen the impact of CG in the EM of financial institutions. The effect of the Covid-19 crisis on the link between CG and EM should be the subject of future studies. Future research should examine how the Covid-19 issue affects the CG mechanism’s ability to reduce EM and determine whether the effect is positive or negative.
CRISES AS HARBINGERS OF OPPORTUNITIES: AN EMPIRICAL INSIGHT OF KNOWLEDGE MANAGEMENT AS MODERATOR BETWEEN ABSORPTIVE CAPACITY AND STRATEGIC AGILITY
The upstream oil and gas businesses in Nigeria suffer from insufficient absorptive capacity, poor knowledge management in their operations, and a lack of capability to address difficulties in the country effectively. These factors impeded their capacity to be strategically agile in reacting to the sector’s issues, eventually stifling their performance. This study investigated the moderating influence of knowledge management on the relationship between absorptive capacity and strategic agility in the upstream oil and gas industry of Nigeria. A survey research design was used. Instruments were sent to the upper and intermediate management of upstream oil and gas businesses in Lagos State. The validity and reliability of the instrument were examined, and the findings indicated that the questionnaire was valid and reliable. Smart Partial Least Square (PLS) 3.0 was used for data analysis, coupled with Structural Equation Modelling. The research indicated that absorptive capacity had a substantial impact on strategic agility and that knowledge management strengthened the association between absorptive capacity and strategic agility among the chosen upstream oil and gas enterprises in Lagos State, Nigeria. The study recommended that upstream oil and gas businesses employ good knowledge management methods and construct excellent absorptive capabilities to financially engage strategic agility measures that will guarantee greater success than their sector competitors. The study’s theoretical and managerial ramifications, as well as its limits and future research opportunities, were discussed.
EFFECT OF SERENE BUSINESS ENVIRONMENT ON THE PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN MALAYSIA
The effect of business environment on the performance of small and medium enterprises (SMEs) has been widely studied. Nevertheless, research on the effect of a serene business environment on the performance of SMEs is insufficient, notably in the context of Malaysia. Therefore, this study examined the effect of a serene business environment on SMEs’ performance in Malaysia. Related literature was critically reviewed, and five hypotheses on the effect of serene business environmental factors on performance were formulated. By adopting the cross-sectional survey design, the data of 148 respondents were collected and analyzed using descriptive and inferential statistical tools – Statistical Package for Social Sciences (SPSS) and Partial Least Square – Structural Equation Modeling (PLS-SEM). From the empirical findings, Malaysia’s serene business environment is critical in stimulating the performance of SMEs. Financial market environment, technological environment, and regulatory environment exerted a positive significant effect on SMEs’ performance. Nonetheless, economic environment and competitive environment indicated a strong, but negative significant effect on SMEs’ performance. These findings proposed new insights in this field of research by providing relevant research implications and suitable recommendations to business managers and policymakers in Malaysia.
THE ROLE OF THE NATIONAL ECONOMIC EMPOWERMENT AND DEVELOPMENT STRATEGY (NEEDS) EDUCATIONAL POLICY IN POVERTY REDUCTION IN SOKOTO STATE, NIGERIA
This study examines the impact of the National Economic Empowerment and Development Strategy (NEEDS) programme on poverty reduction in Sokoto State of North-western Nigeria, through the channels of the education policy. A total of 826 responses from 11 Local Government Areas (LGAs) were received through a structured questionnaire. The data was analysed using descriptive statistics and the binary logit regression model. It is found that the NEEDS has had a significant impact on the education of the participating households, which could lead to poverty reduction in the study area. The results also reveal that the NEEDS educational policy is likely to empower the youth to be self-reliant and productive in order to combat poverty in Sokoto State. It is suggested that the government should plan educational policies in the context of poverty reduction, by creating a conducive atmosphere for learning. Further, those who have benefited from similar programmes can be involved in raising awareness of future programmes. In addition, the government should enact a law on children’s education so that domestic work in the household and family businesses do not interfere with children’s education.
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SOCIODEMOGRAPHIC FACTORS ASSOCIATED WITH CONSUMPTION AND EXPENDITURE ON VITAMIN SUPPLEMENTS AMONG YOUTH IN MALAYSIA
Consumption of vitamins can lower the risks of various noncommunicable diseases (NCDs). Nevertheless, only a small proportion of adults in Malaysia consume vitamin supplements, and this may contribute to the increase in the prevalence of NCDs across the country. Despite the high prevalence of NCDs and low consumption of vitamin supplements, there is insufficient research that assess individuals’ use and expenditure on vitamin supplements. The objective of the present study is to examine the effects of sociodemographic factors on vitamin supplement spending among youth in Malaysia. The primary survey data were collected using convenient sampling (n = 482). In addition to one-way analysis of variance (ANOVA), a lognormal hurdle model was used to explore factors affecting consumption and amount decisions of vitamin supplements. Results of the present study showed that higher-income and less-educated individuals spent more on vitamin supplements compared to lower-income and welleducated individuals. Expenditure on vitamin supplements was higher among Chinese than Malays. Being male and married increased the likelihood of consuming vitamin supplements. In conclusion, sociodemographic factors play an important role in determining consumption and expenditure on vitamin supplements. With the present study’s findings, policymakers could better understand which cohorts of the Malaysian population to be focused on. Therefore, a more effective policy directed towards promoting the use of vitamin supplements can be formulated.
FACTORS AFFECTING EMPLOYEE TURNOVER IN MULTINATIONAL COMPANIES IN MALAYSIA
The purpose of this research paper is to investigate the factors affecting employee turnover in multi-national companies in Malaysia. The descriptive research design is used with the view of getting an expansive explanation about problems and factors affecting employee turnover in multi-national companies in the country. A quantitative research method has been used to quantify the problem by way of generating numerical data that can be transformed into usable statistics. To collect data, the study distributed a survey questionnaire to a total of 250 respondents. The findings showed that job dissatisfaction and work-life imbalance have a significant positive relationship to employee turnover. The study also found that training & development programs has a negative relationship with employee turnover. Lastly, the study has also found that, rewards system had either no, or less positive significant relationship with employee turnover in MNCs in Malaysia. The study has provided some recommendations on how to prevent the problem of high employee turnover in multi-national companies in Malaysia. Employees were found to have certain views about work-related matters, especially when it concerned their getting a balanced work-life and being consulted for the training & development programs to be more efficient and productive. The findings have also provided some implications that can contribute to guiding government or policy makers that will ensure a positive working environment for all employees.
THE EFFECT OF FOREIGN DIRECT INVESTMENT ON LABOUR PRODUCTIVITY
This study has utilised the Seemingly Unrelated Regression (SUR) estimator method to explore the spillover effects of “technology” and “knowledge” from foreign direct investment (FDI) on Malaysian labour productivity. The study focus was on Malaysian medium-low technology and low-technology industries from 2000 to 2018. The findings showed that the presence of FDI spillovers as diffusion channels that increased labour productivity were greater through “technology effects” compared to “learning effects” for both types of industries. A cross-comparison of the results on technological spillovers between investor countries revealed that Singaporean and Japanese multinational corporations (MNCs) contributed the most significant technological effects in increasing Malaysian labour productivity, with the effects being most noticeable was in low-technology industries. These findings seem to suggest that the spillover effects of FDI are still concentrated in sectors with low-capacity technologies that commensurate with the required level of workforce capability. The negative relationship between “knowledge” spillovers and productivity found in this study seems to illustrate that the absorptive capacity of local workers to absorb high-skill-based technology from MNCs is still at a low level in both types of industries. This study has recommended that strategies and mechanisms should be devised accordingly to assist MNCs in their effort to improve knowledge and technology transfers, while simultaneously acknowledging the constraints of human factors, absorptive capacity, competition for resources or ethical dilemmas and cultural barriers.
TALENT MANAGEMENT DISCLOSURE AS A MEDIATOR BETWEEN CORPORATE GOVERNANCE AND FINANCIAL PERFORMANCE
Active participation from the corporate sector in designing and implementing corporate social responsibility (CSR) activities is critical for company resilience and reliance. It has been suggested that companies need to integrate CSR activities with talent management strategies. However, the extant literature on CSR reporting has limited research focusing on talent management in CSR activities. Therefore, this study examines the extent of talent management disclosure (TMD) made by the top 100 Malaysian public-listed companies (PLCs). Particularly, this study examines the mediating effect of TMD on the corporate governance characteristics (CGC) and corporate financial performance (CFP) relationship. Generalised Linear Modelling (GLM) was used to analyse the cross-sectional data. The results indicate that female directors positively influence CFP, whereas independent directors negatively correlate with CFP. This study also finds that TMD has an insignificant moderating role in the CGC and CFP relationship. Nevertheless, the newly developed TMD provides a new perspective on talent management research. TMD is a new research avenue under-researched and needs more academic and business executive attention. Thus, this research invites academia and company management to revisit CSR activities by embedding talent management strategies.