J. for Global Business Advancement (45 papers in press)
Integration of competency model into human resource systems: its impact on organisation performance and human resource function
by Asim Talukdar
In search of success factor for a sustainable macro entrepreneurship and enterprise education policy: evidence from the European Union
by Syeda-Masooda Mukhtar, Jim Redman
International joint venture marketing performance in China: a resource-based approach
by Craig C. Julian, Junqian Xu
Total quality management and its effect on SMEs performance
by Muslim Amin
Analysing the relationship between advertising and sales promotion with brand equity
by Haim Hilman Abdullah, Jalal Hanaysha
Financial Cost Benefit Analysis of high school education in Hewl
by Tara Ahmed H. Chawsheen
A review of Saudisation and the Niataqat programme to indiginise the labour market in Saudi Arabia
by Muhammad Asad Sadi
Rightly link specific market orientation and innovation strategy to boost the performance of hotels
by Haim Hilman, Narentheren Kaliappen
Abstract: This paper examines the right linkage of specific market orientation, innovation strategy and organisational performance of 114 hotels in Malaysia. The research framework was created and further multiple regressions were performed to verify the hypotheses. These research findings confirmed that all hypotheses give valuable indications on the strategic linkage of specific market orientation and innovation strategy to pursue for improved organisational performance. The results highlighted hotels that are pursuing competitor orientation focused on process innovation or on service innovation. The results show that competitor orientation, customer orientation, process innovation and service innovation have a significant effect on organisational performance. Remarkably, this research found process innovation partially mediates the association between competitor orientation and performance, while service innovation partially mediates the association of customer orientation and performance. Consequently, this paper provides noteworthy information to the hoteliers. The crucial unique contribution is the development of an integrated model that links specific market orientation, innovation strategy and organisational performance of hotels in Malaysia.
Keywords: market orientation; innovation strategy; performance; hotel industry; Malaysia.
The influence of relationship quality on brand equity: empirical insights from Malaysia
by Haim Hilman, Jalal Hanaysha
Abstract: Brand equity and customer relationships are two important areas of research that received remarkable interest in the literature. This study examines the impact of relationship quality on brand equity in the Malaysian automotive market. The primary data were collected using questionnaire at large shopping malls from a sample of 287 car users in the northern region of Malaysia. Structural Equation Modeling (SEM) was employed to generate the results. The findings suggest that relationship quality has a significant positive impact on brand equity and its dimensions in the Malaysian automotive industry. The results provide useful insights and suggestions to auto manufacturers serving the Malaysian market in branding-strategy development. This study makes a valuable contribution given the fact that there are limited empirical research works of this nature focusing on Malaysia. It also opens avenues for future research directions to enhance the understanding of relationship quality role in developing brand equity.
Keywords: automotive sector, brand equity, relationship quality, Malaysia
Globalisation of retailing and implications for India
by Dwarika Prasad Uniyal
Abstract: The Indian retail sector has seen a gradual though steady metamorphosis over the last decade. Despite the myriad advances over the years, the sector continues to remain highly fragmented; it is still primarily dominated by the unorganised segment, reflected in the quintessential traditional family-run stores. The entry of Foreign Direct Investment (FDI) into the retail sector has always been a contentious issue, as a result of the well-documented proclivity of our policy-makers to dither and delay decision-making on key aspects stemming from political risks at large. Retail internationalisation has become central to the future plans of many retailers, especially during the last decades. It has to be noted, however, that despite the rapid growth of retail operations across countries, almost every big retailer has experienced failure abroad. Global retailers in developing markets are confronted with many challenges, such as the prevalence of complex political structures leading to stringent government regulations and policies, which do not always favour FDI in this sector, with India being a case in point. Retailers also have to deal with the lack of skilled manpower, inconsistent agricultural produce, various cultural and geographical challenges, and last but not the least, coordination problems with the parent organisation.
Keywords: globalization; FDI; retailing; India.
Shariah Advisory Council in teh Malaysian Islamic financial institutions: features and legal issues
by Nuarrual Hilal Md Dahlan, Ahmad Zafarullah Abdul Jalil, Zairani Zainol, Selamah Maamor
Abstract: The Shariah Advisory Council (SAC) was established under the Central Bank of Malaysia Act 2009(Act 701) (CBMA). The SAC acts as an authority for the ascertainment of Islamic law for the purposes of Islamic banking/financial business. The Central Bank of Malaysia (Bank Negara Malaysia, BNM) and the Islamic Financial institutions (IFIs)shall consult SAC in respect of Islamic banking/financial business and affairs. The decision of SAC is binding on IFIs, BNM, the Shariah Committee, the court of law and the arbitrators on matters pertaining to Islamic banking/financial matters. The superiority and hegemony of the SAC over the court, the IFIs, the arbitrator and the Shariah Committee in relation to the Islamic banking/financial business and affairs has been given judicial support and recognition by the case law. This paper highlights the features and privileges that the SAC has in the context of Malaysian IFIs through the existing legal framework. Further, this paper also highlights some issues concerning the SAC in Malaysia. This paper is a fruit of a pure legal research on the features and issues of the SAC in the Malaysian IFIs. At the end part of this paper, the authors provide certain recommendations in regard to the issues discussed.
Keywords: Shariah Advisory Council; Malaysia; Islamic banking and financial institutions.
Contemporary approaches to performance evaluation of international hotel groups in Portugal
by João J. Ferreira, Cristina Estevão, Rosa Cruz, Vanessa Ratten
Abstract: Competition between hotel groups has become fierce over recent years because of the rise in the mobility of tourists and the rise in the number of hotel groups. One of the most important tools for measuring the competitiveness of hotel groups is their efficiency. This paper seeks to evaluate the efficiency of international hotel groups in Portugal by applying appropriate DEA panel data approaches (contemporaneous and intertemporal). Panel data might be a more suitable tool for long-term efficiency analysis as it can advance knowledge about the efficiency measurement of hotel groups. The results of the panel data suggest that the efficiency of hotel groups differs significantly from group to group and within each group over time. These results have implications for hotel managers wanting to increase their global competitiveness and efficiency and are discussed in terms of factors affecting managerial decision making abilities. Future research directions are also stated in the paper as this is important for hotel marketers particularly those in international hotel groups.
Keywords: competitiveness; efficiency; panel data; DEA; hotel groups, Portugal, Europe, tourism.
The impacts of productivity differentials and oil price on the real exchange rate misalignment: evidence from a developing country
by Mouyad Al Samara
Abstract: This paper investigates the short and long run impacts of productivity differential and oil price on the Real Exchange Rate (RER) misalignment in the Syrian economy over the period 1980-2010. To this end, this has paper constructed a productivity differential index for the Syrian economy and applied two different econometric methods: Engle-Granger (1987) and Autoregressive Distributed Lag (ARDL) bounds test for cointegration (Pesaran et al. 2001). The results reveal that an increase in productivity differentials, gross capital formation and oil price are associated with RER appreciation, while government expenditure has a negative effect. Given the significant impact of the oil price on RER behaviour, the reduction of oil production would require a substantial RER depreciation. Furthermore, CUSUM and CUSUMQ tests indicate that the RER has followed a stable behaviour around its equilibrium with a relatively moderate speed of adjustment. Finally, the empirical results provide evidence that a more flexible exchange rate will increase the speed of adjustment toward the equilibrium. Therefore, Syrian monetary policy should provide the economy with a more stable and flexible exchange rate to facilitate RER convergence to its equilibrium path after a shock.
Keywords: real exchange rate misalignment; productivity differentials; ARDL model; Syrian economy.
Dependency or contagion between the Islamic and conventional banking system: evidence from the FIEGARCH-EVT-Copula model
by Mohamed Fakhfekh
Abstract: The objective of this paper is, firstly, to test the existence of contagion between the conventional and Islamic banking systems and secondly, to determine the best hedging strategy for conventional-Islamic stock portfolio against the risk of negative variation in conventional banking market prices. We use a FIEGARCH-EVT-Copula model to analyse the dependence structure between the two banking systems during the period from 16/06/2006 to 05/15/2013 with a daily frequency. Our results show the existence of a significant dependence between conventional and Islamic banks, especially during the crisis period. The increase of the Kendall tau between the period before the crisis and the crisis period shows that bank contagion can be one of the most important factors of financial distress of Islamic banks. Concerning the implications of the interdependence between conventional and Islamic banking indexes in the portfolio management, our results underscore the usefulness of the Islamic banking index in terms of reducing portfolio risk. Our results also corroborate the effectiveness of the hedging futures of Islamic banking indices.
Keywords: dependency; contagion; FIEGARCH-EVT-Copula; Islamic and conventional banks; financial crisis.
An empirical analysis of consumers intention to use mobile banking services in Malaysia
by Darmesh Krishanan, Aye Aye Khin, Kevin Low Lock Teng
Abstract: Despite various studies that have been carried out on mobile banking adoption, only a limited number focused on perceived interactivity. The literature on the key motivations of the intention to use mobile banking is incommensurable. Therefore, there is a need to evaluate the factors influencing the consumers' intention to use mobile banking services in Malaysia. This research fills the gap by integrating Technology Acceptance Model (TAM) with Diffusion of Innovation Model (DOI). Additionally, perceived risk, perceived cost and perceived interactivity aspects are incorporated. The chief aspiration of this study is to analyse the empirical analysis of consumers intention to use mobile banking services in Malaysia. The findings indicate that usefulness, perceived cost, perceived interactivity, perceived risk, relative advantage, and easefulness are significant factors in the relationship of the indirectly mediating effect of attitude towards using mobile banking and the dependent variable of consumers intention to use mobile banking. A discourse of the future of mobile banking concludes this paper.
Keywords: consumers’ perceived interactivity, mobile banking usage, empirical approach
Audit committee independence, abnormal directors' compensation, corporate governance disclosure and price to earnings multiple of Nigerian firms
by Isah Shittu, Ayoib Che Ahmad, Zuaini Ishak
Abstract: The failure of corporate organisations has continued to attract various stakeholders of corporate entities globally. Countries across the world issued different regulations for best practices to avoid corporate failure. One of the objectives of the guides is to improve company value. In Nigeria, similar guides are issued for companies known as the codes of corporate governance (CG). However, investment analysts, researchers and other stakeholders continue to argue on whether those governance mechanisms improve the value of stockholders. Some suggested the consideration of company governance practices before investment while others argued that CG is not important in Nigeria. This study empirically investigated the effect of audit committee independence, abnormal directors compensation and disclosure of CG information on price to earnings multiple of Nigerian firms. The study used data of 100 firms listed on the Nigerian Stock Exchange (NSE). The study used the Generalised Method of Moment (GMM) to estimate the regression because of endogeneity problems between the variables. The results reveal a significant positive relationship between audit committee independence, abnormal directors' compensation, CG disclosure and price to earnings multiple of Nigerian firms. Therefore, the study recommends consideration of the above CG variables before investment decisions.
Keywords: audit committee independence; abnormal director’s compensation; CG disclosure; Nigerian Stock Exchange; Nigeria.
Jordanian banks perception of customer relationship management: a TAM-based investigation
by Ghazi Alkhatib, Muneer Abbad, Faten Jaber
Abstract: The main objective of this research is to investigate Jordanian banks' perception and acceptance of Customer Relationship Management (CRM) based on a technology acceptance model (TAM). The investigation was conducted in two steps. First, five external variables were added to the TAM framework, namely subjective norms, computer experience, training, self-efficacy, and top management support. In the second step, the developed model was validated using the following statistical techniques: Kaiser-Meyer-Olkin Measure of Sampling Adequacy, Bartlett's Test of Sphericity, Rotated Component Matrix, and regression and correlation analysis. Furthermore, respondents demographics were correlated to the variables using chi-square testing to explore any possible relationships among them. The analysis demonstrated that all factors are related except subjective norm, which was found to be not aligned with the other external factors. Evidence from the questionnaires revealed that Jordanian banks do not use a CRM system. This led to the development of several recommendations to encourage banks to adopt a CRM system. Further research will involve modifying the model according the findings for this study and explore extension of the current research on TAM and advanced statistical techniques such as SEM.
Keywords: customer relationship management; technology acceptance model; Jordanian banks.
Drivers of consumers' foreign products purchase: a test of an integrative model
by Saleem Ur Rahman
Abstract: The purpose of this study is to examine the influence of consumer ethnocentrism, country of origin, and consumers attitude towards grey market goods/parallel imports on foreign products quality and purchase intention. This study also investigates the indirect effects of independent variables on purchase intention mediated by foreign products quality. This study uses Structural Equation Modelling (SEM) to test the hypothesised relationships. The empirical results show that consumer ethnocentrism negatively influences purchase intention, but positively influences foreign products quality. Consequently, country of origin and consumers attitude towards grey marketing goods positively influence foreign products quality and purchase intention. Mediation results show that foreign products quality plays a role of full mediator variable in the path from consumer ethnocentrism, country of origin, and consumers attitude towards grey market goods to purchase intention. This study has several managerial implications for local and foreign companies.
Keywords: consumer ethnocentrism; country of origin; grey market goods; foreign products’ quality; purchase intention.
Audit procedures, auditors experience and responsibility for fraud detection: a Javanese culture perspective
by Anis Chariri, Ratna Siti Nuraisya
Abstract: This study examines the relationship of audit procedures and auditors experience and auditors responsibility for fraud detection, and specifically to examine whether Javanese culture plays moderating roles in the relationship. We conduct empirical tests using data from auditors─working at eight public accounting firms located in Semarang, Indonesia─who responded to our survey. Results indicate that audit procedures positively influence auditors responsibility for fraud detection. Auditors experience also positively affects auditors responsibility for fraud detection. More importantly, this study showed that Javanese culture negatively moderates the influence of audit procedures and auditors experience on their responsibilities for fraud detection. This study contributes to accounting/auditing literature on the importance of considering culture, especially local culture when we study any issues related to auditing and frauds.
Keywords: audit procedure; auditor experience; auditor responsibility; fraud detection; Javanese culture.
Unpacking the black box in the relationship between pay-for-performance, employee benefits, and performance
by Abdussalaam Iyanda Ismail, Abdul Halim Abdul Majid, Mohd Hasanur Raihan Joarder
Abstract: This research accentuated the effect of pay-for-performance and employee benefits on employee performance with mediating effect of distributive fairness in the nexus. Through a cross-sectional approach, data were collected from a sample of 140 Nigerian employees. Partial Least Squares Method (PLS) algorithm and bootstrap techniques were used to test the studys hypotheses. The results provided support for all the hypothesised nexuses, indicating that pay-for-performance and employee benefits influence the performance of workers positively. Also, the result showed that distributive fairness mediates the relationship between pay-for-performance and employee performance, and between employee benefits and employee performance. The implication is that pay-for-performance and employee benefits can boost and enhance employee performance, provided that distributive fairness is perceived in the reward system that is operating in the firms. Hence, distributive fairness is an inextricable element in any reward system. Since the context of the firm determines the firms strategies and policies, future research should further this study by adopting an appropriate moderator that will moderate the research hypothesised relationships.
Keywords: pay-for-performance; employee benefits; distributive fairness; employee performance; reward system; Nigeria.
A configuration of managerial assumptions and strategy: towards a synthesis
by Allam Abu Farha, Marios Katsioloudes, Anas Al-Bakri
Abstract: One of the fundamental issues of strategic marketing is to explain the differences in marketing behaviour of competing businesses in the marketplace. This paper addresses this issue by investigating how management assumptions and business strategy fit with the choice of marketing practice. The study employs a configuration approach to check how these variables relate to each other in a systematic, detailed and holistic image of reality. The data were collected using three case studies in Palestine, and analysed using an informed coding method. The results showed that the three imperatives are interrelated, and internally coherent, resulting in viable configurational profiles. The research is unique and exploratory, and would help managers to carefully examine the internal logic of their marketing-related profiling, it can be used as a tool to assess their marketing practices in relation to their frame of reference and business strategy; performance should be enhanced if the three variables are coherent.
Keywords: management assumptions; business strategy; marketing practice.
Cultural values differences among ethnic groups in Indonesia: are Hofstedes Indonesian findings still relevant?
by Suharnomo Suharnomo, Fajar Suharnomo Syahruramdhan
Abstract: The purpose of this study was to assess whether a national cultural framework can describe cultural differences among ethnic groups in Indonesia. We argue that to understand Indonesia's culture, the cultures of its ethnic groups must first be characterised. In this study, Hofstede's cultural framework was applied to explore cultural values of Javanese, Sundanese, Minangkabau, Batak, and Chinese-Indonesian employees, and investigated whether Hofstedes Indonesian findings are still relevant. A sample of 699 respondents was obtained and drawn from paid employees representing the five ethnic groups in Indonesia. The evidence suggests that Hofstedes Indonesian findings are only able to explain Javaneses culture characteristics. Moreover, the overall findings show that there are significant differences among the ethnic groups studied.
Keywords: cultural values; ethnic group; Indonesia; national culture; value survey module.
Marketing capability for SMEs: a measurement scale
by Popy Rufaidah
Abstract: Marketing capability is the most under-researched topic notably in the context of small and medium enterprises (SMEs). This study developed a measurement scale for marketing capability of SMEs. The literature posits that marketing capability is the determining factor of the firms performance. Nevertheless, indicators that form SMEs marketing capability are not potentially discovered. The study used marketing capability theory as the theoretical foundation for the bases of creating the scale items. A total of 315 survey responses were collected from the business owners of the SMEs. The study performs statistical techniques, firstly to uncover the underlying structure using exploratory factor analysis, and secondly to verify the factor structure using confirmatory factor analysis. Three factors emerged to measure marketing capability of the SMEs, namely, marketing intelligence, marketing execution and marketing strategy. The results indicate enormous opportunity to improve the marketing capability concept for enhancing the comprehension of how business owners of SMEs perceive their marketing capability. The study is considered as one of the foremost studies synchronously examining the measurement of SMEs' marketing capability.
Keywords: marketing capabililty; SMEs; measurement; scale.
Keeping up with the cyberloafer: how cyberloafing and creative self-efficacy bear with the creativity
by Hunik Sawitri, Desy Mayasari
Abstract: This study aims to investigate the role of cyberloafing in predicting creative performance. Cyberloafing is elaborated into four dimensions emailing, surfing, leisure activities, and serious browsing activities in order to gain more insights on each dimension. The results of the study show that emailing activities and leisure activities have a positive effect on creativity, while surfing activities have no effect on creativity. However, serious activity has a negative effect on creativity. This study also explores the role of creative self-efficacy as a moderation in inhibiting the creativity through interactions with emailing, surfing, and leisure browsing activities. The study suggests that the greater the creative self-efficacy of the employee, the weaker the effects are. Furthermore, leisure browsing activities and surfing activities are negatively associated with creativity, while the role of creative self-efficacy increases the relationship between emailing activities and creativity. These findings highlight the importance of managing the different dimensions of cyberloafing in creativity area. Implications for research and management practice are discussed in this paper.
Keywords: cyberloafing; surfing activities; leisure activities; emailing activities; serious activities; creative self-efficacy; creative performance.
How do public hospitals respond to environmental change? Evidence from Thailand
by Dararat Rutanarugsa, Sundar Venkatesh
Abstract: Population ecology and resource dependence theories predict that successful organisations will respond to changes in their environment with changed strategies that fit the environmental changes. In contrast, managerial choice theory predicts that organisational responses to environmental changes are a function of how managers in organisations perceive the environmental change and what managers perceive to be constraints on decision making. Our study of a large public hospital in Thailand finds support for managerial choice theory. The nature of the environmental change, the organisational publicness and the influence of professional values, as predicted by our model, inhibit managerial choices in professional public organisations. As a result, even though this public hospital was faced with environmental changes in the form of radical healthcare reforms, managers in the public hospital were not proactive with their strategies. Instead they followed a gradual and incremental approach to change by responding to specific demands of regulators.
Keywords: public hospitals; strategic management; environmental change; Thailand.
The joint effect o leadership style and organisational justice on employee's work engagement
by Hamid Gelaidan, Abdullah Al-Swidi, Jaithen Abdullah Al Harb
Abstract: Despite the existing body of literature devoted to the topic of work engagement, this study examined the effect of some important variables, such as transformational and transactional leadership styles, on work engagement. In addition, it examined the mediating impact of organisational justice on the said relationships. Data was collected from the employees of telecommunication companies in Malaysia using a survey questionnaire. Structural equation modelling by AMOS was then employed to examine the model. The results provided strong evidence for the positive significant effect of transformational and transactional leadership and organisational justice on work engagement. More importantly, while organisational justice was found to mediate the relationship between transformational leadership and work engagement, its mediating effect on the transactional leadership-work engagement relationship was not confirmed. This study enriches the current literature on work engagement by relating it to crucial factors such as leadership styles and organisational justice and provides empirical evidence.
Keywords: work engagement; transformational leadership; transactional leadership; organisational justice.
The persistence of tax avoidance and its effect on the persistence of earnings
by Achmad Hizazi, Sylvia Veronica Siregar, Dwi Martani, Vera Diyanti
Abstract: This paper suggests a new measure for gauging one aspect of tax avoidance, using a time series perspective. The paper investigates the effect of the new measure of tax avoidance on earning persistence, the latter functioning as a measure of earning quality, using the same time perspective. The paper argues that tax avoidance has a persistent attribute, and that this attribute has a negative slope. We also predict that tax avoidance is negatively related to earning persistence. We derive an empirical measure for the persistence of tax avoidance by using the present value revision of coefficients from firm-specific auto-regressions of effective tax rates. We subsequently illustrate that tax avoidance is persistent, and that this persistence has a negative trend. Finally, we show that our measure of persistence of tax avoidance is negatively related to earning persistence.
Keywords: tax avoidance; persistence of tax avoidance; earning persistence; Southeast Asia.
Intention towards halal logistics: a case study from consumers in Indonesia
by Yuliani Dwi Lestari, Jose Manuel Susanto, Togar M. Simatupang, Gatot Yudoko
Abstract: The concept of Halal has been widely distributed in many business sectors including food and non-food (i.e., cosmetic, pharmaceutical products and fashion). As the largest country with the Muslim population in the world, the development of halal principles in Indonesia extends not only to halal products but also to the logistics process. In regard to this, the role of halal logistics is highly critical to assure the implementation of halal logistics. This study applies Structural Equation Modelling (SEM) to analyse the structural relationship between perceived value, perceived usefulness, knowledge, intention, and behaviour towards acceptance of halal logistics. Through a questionnaire survey, 779 responses were obtained. From the analysis, this study finds that: (i) there is a positive relationship between perceived value and knowledge on halal logistics to perceived usefulness; (ii) a significant positive relationship exists between perceived usefulness' and 'intention to use halal logistics'; (iii) a significant positive relationship exists between intention to use halal logistics and behaviour toward to halal logistics. These findings suggest that, in the context of promoting halal logistics, firms that produce halal products need to educate consumers about the perceived usefulness of halal logistics by emphasising their knowledge and perceived value. With a well-perceived usefulness, consumers will be able to develop intention on halal logistics, which will impact their behaviour toward preferences on halal logistics.
Keywords: behaviour; halal logistics; intention; knowledge on halal logistics; perceived value; perceived usefulness.
Green business opportunity of coffee ground waste through reverse logistic.
by Indrianawati Usman
Abstract: The aim of this research is to explore the possibility to utilise coffee grounds produced by coffee shops, using green concept and reverse logistic. An exploratory case study approach was considered as a method for this purpose. Data was collected by interviewing people who manage coffee shops and the community of urban farmers in Surabaya. This research conclude that a coffee shop cannot recycle their own coffee grounds, because the amount of coffee grounds of a coffee shop is not much and there is no time or human resources to manage recycling. Third parties are need to recycle coffee grounds into valuable and environmentally-friendly products (such as coffee ground fertiliser). The result of this study is a green business opportunity model of recycling coffee grounds produced by coffee shops into fertiliser, consumed by the urban farming community in Surabaya.
Keywords: coffee ground waste; waste management; green business; business opportunity; reverse logistics; waste recycling.
Institution modelling within the service ecosystem: evidence-based research of the hijab fashion industry in Indonesia
by Santi Novani, Ratu Marliana Ocke, Atik Aprianingsih, Chunhui Xu
Abstract: One of the foundations of service science is service-dominant logic, which has a premise that the service ecosystem is a system of the service system and strongly emphasises the role of the institution. An institution in service-dominant logic is viewed as a structure to arrange the dynamic network actors that are interrelated with others. The institution is an operant resource for guiding the social interaction to enable value co-creation. Because structures of rules and resources are interrelated with systems of reproduced relationships, changes in structures correspond to changes in systems as well. This study proposes to model the institutional process to facilitate and improve the value co-creation by using agent-based modelling. The questions of the study are how to model the institutional process to facilitate and to improve value co-creation, and to examine under what circumstances the institution will be established in the value co-creation process. This study also provides evidence by using the case study of the hijab fashion industry in Indonesia to give more understanding about the application of the institution. The hijab fashion industry is chosen by considering its contribution to the GDP of Indonesia and its good projection in the context of business. Then the analysis is conducted in the context of service-dominant logic perspective.
Keywords: service-dominant logic; service ecosystem; value co-creation; agent-based; hijab fashion industry.
The Toda-Yamamoto causality test for government expenditure and economic growth: a case study in Indonesia
by Sigit Harjanto, Setyo Tri Wahyudi
Abstract: This research aims to find out the causality between economic growth and government expenditure. Using Toda-Yamamoto causality test, we found unidirectional causality between economic growth and government expenditure, in which government expenditure affects economic growth, which is in accordance with Wagners law. In terms of expenditure by function, we found a relationship that supports the Keynesian approach between economic growth and government expenditure by economic function. However, there is no causality between the other functions of government expenditure and economic growth.
Keywords: economic growth; government expenditure; Toda-Yamamoto causality test.
Female executive officers and corporate social responsibility disclosure: evidence from the banking industry in an emerging market
by Muhammad Agung Prabowo, Mohammad Jamin, Deo Julion Saputro, Arief Mufraini, Dian Agustia
Abstract: This paper examines the link between women serving in a TMT (top management team) and CSR (corporate social responsibility) disclosure in the banking industry. We assume that female executives have specific characteristics that lead to better CSR disclosure. Using a dataset consisting of 88 banks incorporated in Indonesia, we find that the presence of female executives positively affects CSR disclosure. However, a sensitivity test revealed an interrelationship among governance mechanisms. Specifically, the beneficial effect of the presence of female executives on CSR disclosure is more pronounced in banks listed on the stock market. Further, the effect of women serving in a TMT is observed only in medium and larger banks and in banks without government ownership.
Keywords: female executive; corporate governance; corporate social responsibility disclosure; banking; Indonesia.
Consumers restaurant experience, electronic word of mouth and purchase intention in the Indonesian restaurant industry
by Satria Bangsawam, Christopher Marquette, M.S. Mahrinasari
Abstract: The objective of this study is to analyse the effect that consumers' restaurant experience dimensions have on electronic word of mouth (eWOM) motivations of consumers in the Indonesian restaurant industry. The study investigates which factors of the restaurant experience have the greatest effect on eWOM and whether or not eWOM is related to purchase intentions of the diners who engage in it. Survey responses from 323 diners who had engaged in eWOM were analysed to determine the relations of these variables. Results indicate that food quality and atmosphere have a significant positive effect on eWOM but service does not. Further investigation indicates that none of the individual components of food quality or atmosphere in particular drives the results. Results also show that eWOM is not significantly related to purchase intentions among the respondents.
Keywords: restaurant experience; eWOM; purchase intention; CREp; restaurants; Indonesia.
Special Issue on: Understanding the Advancing of Developing Economies
The influence of organisational and technological factors on business intelligence adoption in the telecoms industry across the Middle East and Africa
by Dani AbuGhaida
Abstract: Research and literature reviews on the adoption of innovations are rich and diverse, coming from scholars across various industries and contexts. With focus on the motivations for technology adoption as well as on the various economic, technological, social and organisational factors that influence the adoption decision, this paper reviews the relevant literature in the context of business intelligence (BI) adoption across an emerging region like the Middle East and Africa (MEA) and in a dynamic and rapidly evolving sector like the telecoms sector. Four dimensions impacting innovation adoption are identified and examined in the context of BI adoption. Amongst these four dimensions, this paper focuses on the two that are more of internal dimensions, the organisational and technological dimensions, versus the other two which are more of external dimensions, the economic and social dimensions. An empirical model is suggested and tested using quantitative research techniques, and 305 responses were received from telecommunication professionals across the MEA region. Findings across organisational factors are reported, including top management support, innovation culture, availability of a champion and size of the company. Factors shaping the characteristics of the organisation, such as multinational affiliation, revenue, size of the organisation and the use of best practices, proved to be major drivers for BI adoption. Findings from the technological dimensions are reported across technology prerequisites and awareness, as well as technical capabilities.
Keywords: business intelligence; technology adoption; innovation diffusion; telecoms industry; Middle East and Africa; developing countries; knowledge management; Big Data; decision support systems; ICT; capabilities.
Moderating effect of trust of BSR on the relationship between perceived ethics on the performance of SMEs
by Abdullahi Hassan Gorondutse, Haim Hilman
Abstract: The aim of this research is to advance both the theoretical conceptualisation and the empirical validation of BSR components on performance of SMEs research. Empirically, it confirms that partial least squares path modelling can be used to estimate the parameters of a hierarchical, reflective model with moderating effects. The model shows that perceived ethics is significantly related to performance; similarly, trust of BSR is positively associated with SMEs' performance. In addition, trust of BSR does not have any moderating influences in the relationship between perceived ethics and SMEs' performance. The results, besides indicating the suitability of the PLS in statistical analysis, have also contributed to a better understanding of BSR components in SMEs, which hitherto has not been tested. Overall, the study concludes by discussing conceptual contributions, methodological implications, limitations, and future research directions of the study
Keywords: perceived ethics; trust of BSR; performance and SMEs
Corporate governance as a suggested solution for family business sustainability problem
by Ahmad Jannoun
Abstract: This study examines the impact of corporate governance practices on family businesses survival and sustainability. Our research identified the common factors affecting the lifespan of family businesses, and the impact of main corporate governance elements, Leadership, Accountability, Transparency and System, on their sustainability DNA".
Keywords: family business, sustainability, business continuity, corporate governance
The impact of organisational culture on performance
by Maya Shayya
Abstract: Organisational culture in shaping the performance of the Lebanese bureaucracy. Performance is shaped by the culture of the organisations work unit. A questionnaire was applied to the undergraduate educational public sector in order to examine unit differences in performance. The results show that organisational culture does play a role in shaping performance levels in the diverse units of the public sectors education, but that its role is muted. These findings suggest that other factors, including broader societal culture, are also at work. In addition to its practical dimension, the study also tests a major US theory of organisational motivation in the Lebanese context. Cross-cultural differences do influence performance, and results suggest that modifications should be made to the Western theories before they are transferred to the Middle East.
Keywords: waste; performance; organisational culture; public sector; professionalism; innovation; job satisfaction; public concern
Beverage consumption and seasonal change effect
by Johnny C. Chaanine, Luciana C. Chaanine
Abstract: The beverage consumption has been widely studied as a factor targeting all generations. However, few studies analysed the impact of seasonal changes and the climate effect on the relationship between the marketing of beverages and their consumption. The Lebanese market being a four-season environment is taken as the destination of choice in the MENA region, where the researchers decided to test their model to see the impact, if it exists, of the seasonal change and the marketing on beverage consumption. The results of the study clearly reveal similarities as well as some differences with previous studies. It highlights a number of indications that are of interest to marketers, practitioners and academicians in Lebanon and in other emerging communities such as China. This paper analyses the effect of seasonal changes on the consumers preference and consumption and whether or not it can be considered as a mediator in the relationship between marketing beverages and their consumption. Many studies were conducted throughout the years to prove the effect of weather and seasonal changes on peoples mood. Other studies emphasised the important role that mood plays when it comes to customers preferences and spending; the mood has the power to make a consumer consume more or consume less and in its turn, the mood is affected by the weather changes. SAD or Seasonal Affective Disorder is a very real kind of depressive disorder (technically referred to as a depressive disorder with seasonal pattern), and this study attempts to test the relationship between the effect of weather changes on mood and the marketing and consumption of beverages.
Keywords: beverage; consumption; marketing; environment; seasonal change.
Special Issue on: BUSINESS CHALLENGES IN EMERGING MARKETS
Issues in the rehabilitation of failed residential projects in Malaysia: clash between the interests of purchasers and secured creditor chargee
by Nuarrual Hilal Md. Dahlan
The implementation of knowledge management techniques to enhance operations in the Jordanian healthcare sector
by Suzan Al-Najjar, Ibrahim Tabsh, Ahmad Shariah
Special Issue on: Business Strategy, Education Service, and Economic Growth of Muslim Countries in North Africa, Middle-East, South Asia and South-East Asia
Antecedents and consequences of customer loyalty in Qatar
by Shahid Bhuian, Maha Khamis Al-Balushi, Irfan Butt
Abstract: Drawing insights from the customer value-based theory, this study hypothesises and examines the relationships in the antecedents-customer loyalty-consequences process in a unique context, Qatar. Five divergent and salient antecedents and two important outcomes are incorporated in a single comprehensive study. The antecedents are innovation (a novel one), service quality, trust, satisfaction and switching cost, while the consequences are word-of-mouth communication and repeat purchase. An analysis of a sample of mobile internet subscribers reveals that the five antecedents impact customer loyalty, which, in turn, influences the two outcomes. The study extends customer loyalty theory to a region marked by unique Islamic values and beliefs. Also, the study suggests that in addition to paying attention to a number of traditional drivers of customer loyalty simultaneously, marketers seeking to build and sustain customer loyalty in the Gulf region should also focus on innovation. Implications have been discussed.
Keywords: customer loyalty; innovation; service quality; trust; word-of-mouth communication; Qatar; Gulf Cooperation Council region.
From tin to high-tech: Malaysias science and technology
by Ibrahim Akoum
Abstract: Science and technology policy has played a pivotal role in the advances Malaysia has been able to boast. This paper outlines the main steps taken by Malaysia in advancing science and technology activities (S&T) in the country, and takes stock of the Malaysian S&T infrastructure, in comparison with some other upper-middle income countries. The study examines the extent to which S&T efforts in Malaysia have been associated with economic growth by applying standard statistical techniques to shed light on the relationship between S&T indicators and the economic development record. In particular, the S&T variables include gross expenditures on research and development, researchers and technicians in R&D, and patent applications. Contending that S&T indicators have been associated with economic development indicators, the study proposes that further research be conducted to assess the causal relationship between development indicators and S&T indicators in Malaysia, preferably at the sectoral level and taking into consideration the sources of S&T investment, namely the difference between public R&D spending and that of the private sector and university research centers.
Keywords: Malaysia, innovation, science and technology, R&D, economic growth
Special Issue on: Special issue
The similarities in job satisfaction across cultures
by Bassem Maamari
The law governing Islamic Partnership in the Malaysian Islamic banking and financial institutions: a legal analysis
by Nuarrual Hilal Md Dahlan, Zairani Zainol
Abstract: In Malaysia, Islamic banking and financial products must comply with shariah (Islamic law) and the Malaysian law. The Partnership Act 1961 (Act 135)(PA) governs all partnership undertakings. However, there is no statute controlling Islamic Partnership products. Are Islamic Partnership products likewise subject to the PA? There is nothing in the PA to indicate that Islamic Partnership does not fall under it. Nevertheless, the Islamic Financial Institutions Act 2013 (Act 759)(IFSA) provides that all Islamic banking and financial products, including Islamic Partnership, must comply with shariah. But how, if shariah is in conflict with the PA? Will this not affect the validity of Islamic Partnership products? This paper highlights the governing law issues with regard to Islamic Partnership in Malaysia. The authors used legal research methodology to discuss the issues. The authors also provide some suggestions to warrant the validity of Islamic Partnership, both in the law and shariah perspectives.
Keywords: Islamic Partnership products; legal issues; governing law; Malaysia; Islamic banking and finance.
Special Issue on: Xxx
A causal relationship between exports, foreign direct investment and income for Malaysia
by P.R. Bhatt