J. for Global Business Advancement (55 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.
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.
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
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.
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.
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.
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.
National culture and CSR reporting: a cross-country analysis
by Khalil Nimer, Ahmed Yamen, Ahmed Bani-Mustafa, Sameer Al Barghouthi
Abstract: This study examines the effect of national culture on Corporate Social Responsibility (CSR) reporting at the country level. In this paper, we aim at enhancing our understanding of what influences the level of CSR disclosure in different countries by focusing on the impact of national culture variables in general and by using the degree of countrys financial freedom and the level of IFRS adoption as control variables. Based on published data for 30 countries and by employing the GLOBE study model that considers nine cultural dimensions, the results indicate that human orientation, assertiveness and performance orientation have significant impact on the level of CSR disclosure. In addition, a countrys financial freedom reveals significant effect as a control variable, whereas the level of IFRS adoption did not affect the level of CSR disclosure. This study provides insight into the CSR literature by documenting that cultural variables would influence the degree of disclosure in general and CSR disclosure in particular and by adding two new variables to the model, namely the financial freedom and the level of IFRS adoption.
Keywords: corporate social responsibility; national culture; reporting; country-based analysis.
Antecedents and Consequences of Customer Loyalty in Qatar
by Shahid Bhuian, Maha 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 are discussed.
Keywords: customer loyalty; innovation; service quality; trust; word-of-mouth communication; Qatar; Gulf Cooperation Council region.
Understanding undervalued vs. non-undervalued stocks from the firm characteristics perspective
by Irene Wei Kiong Ting, Noor Azlinna Azizan, Premjit Singh, Qian Long Kweh
Abstract: The purpose of this study is to examine the determinants of undervalued stocks performances from the perspective of firm characteristics compared with non-undervalued stocks for the period of 20062015 (10 years). Results indicate that firm size has a significant effect only on the performance of undervalued stocks. Tangibility is insignificant for both undervalued and non-undervalued stocks. In addition, leverage and firm age have significant negative effects on the performance of both undervalued and non-undervalued stocks, whereas risk has a negative significant impact only on the performance of undervalued stocks. This analysis shows that operating cash flow has a positive significant impact on the performance of both undervalued and non-undervalued stocks. With its findings, this paper aims to further enlighten investors about undervalued stocks and identify firm characteristics that can boost the performance of such stocks. Future studies should use other firm characteristics to measure performance or compare undervalued stocks with other types of stock.
Keywords: stock performance; firm characteristics; undervalued stocks; non-undervalued stocks; Malaysia.
The traits of success according to those who made it: a survey of successful entrepreneurs in Northeastern Thailand.
by Amornwan Rangkoon, Winai Wongsurawat, Barbara Igel
Abstract: One of the most common questions business students have is what characteristics successful business people should possess. This study interviewed 200 successful entrepreneurs in Northeastern Thailand, between 2010-11 to find their common vital characteristics. Atlas.ti software, a frequency-weighted average scores (FWA), Pareto method, and a Venn diagram were used to determine important characteristics based on five categories. Results reveal three characteristics with high FWA scores at the intersection, namely joy of developing, integrity, and striving. These three characteristics are a common vital personality of all business characteristics (male or female, age, education, length of time in business and type of business). A triangulation approach was employed with a further two groups (75 each) between 2012-13 and 2014-15, respectively, to validate the findings. The findings demonstrated the same three characteristics as outstanding personality traits of successful entrepreneurs in the region.
Keywords: characteristics of entrepreneurs; successful entrepreneurs; in-depth interview; integrity; joy of developing; striving; Thailand.
Workplace spirituality and well-being: examining the relationship on employee engagement in South Korea
by William D. Hunsaker
Abstract: Todays organisations are actively seeking ways to better engage the 'whole' self of their employees, in response to employee disengagement, as employees actively seek ways to better express their 'whole' selves spiritually at work in achieving a greater sense of well-being. Despite the overlap of workplace spirituality, well-being, and employee engagement constructs, the interrelationship of these constructs has seen little research to date. This paper determined that workplace spirituality, as measured through spiritual leadership, positively influenced employees sense of meaning in work and membership or community at work. In turn, this sense of spiritual well-being mediated the engagement of employees in their work. These findings expand the scope of workplace spirituality and employee engagement research in highlighting the influence of not only meaningfulness in work but also meaningfulness at work in a non-Western context.
Keywords: calling; meaning; meaningfulness at work; meaningfulness in work; membership; spiritual well-being; spiritual leadership; spillover effects; South Korea; work engagement; workplace spirituality.
Understanding consumerism within Western and Muslim-based societies: Twitter Usage of Saudi and American consumers
by Othman Althawadi, John Fraedrich, Allam Abu Farha
Abstract: Consumerism was defined and studied as protection and active participation in negative business issues that directly affect the consumer. The consumerism model is based on the theory of planned behaviour (TPB) using social media (Twitter) to determine any significant differences between two divergent cultures and economies: Saudi Arabia and the USA. Our results suggest a partial fit to the model. The equivalent significant findings for both samples are as follows: (1) Consumers with negative perceptions of government regulatory practices have a more positive attitude towards consumerism; (2) There is a positive relationship between attitude, intention, and behaviour and consumerism; (3) Both countries have a positive subjective norm, intention, and behavior for consumerism; (4) There is a positive relationship between perceived behavioral control and consumerist behaviour.
Our findings found that Saudi consumers have a higher level of intent to engage in consumerism behaviour via Twitter than American consumers. Finally, Saudi consumers have a negative perception of government regulatory practices that can be attributed to its restricted civil society relative to the USA.
Keywords: consumerism; consumer movement; Saudi Arabia; consumerism behaviors; Twitter; consumer protection.
The relationship between distinctive capabilities, business strategy, environment and performance: a proposed model of manufacturing SMEs in Palestine
by Saari Bin Ahmad, Hashem Ismail Mohammad Ramadan
Abstract: This article discusses a study to explore the relationship among distinctive capabilities, business strategy, environment and performance of manufacturing SMEs in Palestine. More specifically, the study attempts to determine whether the performances of manufacturing SMEs in Palestine were associated with their choice of business strategy and their distinctive capability dimensions, such as administrative capabilities, production/operation capabilities, marketing capabilities, human resources capabilities, environment uncertainty and performance. The model of the study illustrates the relationship between the independent variables, which are distinctive capabilities and business strategy, the moderating variable, which is business environment, and the dependent variable, which is the performance. The result of this study would provide a great benefit for owner managers, government policy makers, scholars, and educators on the concepts of distinctive capabilities, business strategy, environment and their relationship with performance in the context of manufacturing SMEs in Palestine.
Keywords: strategy; distinctive capabilities; Palestine; small-and-medium enterprises; environment; performance.
The experiential image of North Cyprus destination as perceived by German tourists
by Mohammad Abuhjeeleh, Hamzah Elrehail, Ibrahim Harazneh
Abstract: This study aims at examining the experiential image (EI) of North Cyprus and how it is perceived by international tourists from Germany. A total number of 450 questionnaires were distributed to tourists coming from Germany; 385 questionnaires were considered valid for analysis. In order to increase the reliability as well as validity of research inputs and outputs, the primary data was collected at the last day of the tourists' stay to ensure that they have actually experienced North Cyprus destination. Results revealed that tourists from Germany have a positive EI of North Cyprus destination as well as they strongly recommend this destination. Results and recommendation are discussed.
Keywords: North Cyprus; destination image; organic image; induced image; experiential image.
Factors influencing the effectiveness of the accounting information system: a case from Vietnamese firms
by Hanh Thi My Le, Phuong Thi Hoang Tran, Linh Do Thuy Tran
Abstract: This study examines factors that determine the effectiveness of the accounting information system (AIS) among companies in Vietnam. Specifically, it investigates the impacts of five characteristics on the effectiveness of AIS, namely, task, social, project, organisational, and user characteristics. Our survey results, comprising 234 users from 106 companies that apply enterprise resource planning, show that project, organisational, and user characteristics significantly contribute to AIS effectiveness, with project characteristic being the most important factor. These findings are informative in improving the attitude and behavior of AIS users. Companies in Vietnam or other emerging markets can also rely on these findings to determine the extent to which they use AIS and the level of deployment and development of technical tools within their AIS. Overall, this study recommends solutions to improve AIS effectiveness among Vietnamese companies.
Keywords: accounting information system; effectiveness; task characteristic; social characteristic; project characteristic; organisational characteristic; user characteristic; Vietnam.
Linking training and development to employee turnover intention: are performance management and compensation sequential mediators?
by Vui-Yee Koon
Abstract: Providing training and development opportunities at the workplace is believed to be a way to reduce employees intention of leaving an organisation. However, the association behind this relationship is still unclear. This study analyses performance management and compensation as mediating the association between training and development and employee turnover intention from a relational perspective. Data was obtained from 633 public and private employees in Malaysia using a convenience sampling. The results support the predicted model of training and development having no direct effect on turnover intention. Both performance management and compensation are included in this study as mediator variables. It is worth noting that the inclusion of performance management alone leads to an increase in employee turnover intention. The combination of performance management and compensation as mediators also leads to an increase in employee turnover intention, but at a significantly lower effect. These findings provide insights into human resource management and the use of relational human resources practices to influence employee turnover intention in the workplace.
Keywords: training and development; performance management; compensation; turnover intention; sequential mediators.
Beverage consumption and seasonal change effect
by Johnny C. Chaanine, Luciana Chaanine
Abstract: Beverage consumption has been widely studied as a factor targeting all generations. However, few studies have 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 from 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 consumers' preference and consumption, and whether or not it may be considered as a mediator in the relationship between the marketing of beverages and their consumption. Many studies have been 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.
The impact of organisational culture on performance
by Maya Shayya
Abstract: Organisational culture is 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 to examine unit differences in performance. The results of this study show that organisational culture does play a role in shaping performance levels at 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 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.
Bangladeshi consumers intentions towards purchasing meat
by Sheikh Prince
Abstract: The aim of the study is to explore how consumers cognitive and affirmative interpretation about meat attributes influence their intentions for purchasing meat in Bangladesh. In all, 286 data points were analysed using Cronbachs alpha, test of normality, EFA, CFA, and SEM to test the validity of the model. The findings show that consumers cognitive and affirmative interpretation about meat prices are statistically significant, which positively motivates customers to purchase meat. However, when health benefits, purchase convenience and availability of meat are interpreted by consumers cognition and affirmation, they do not statistically and positively influence consumers intention to purchase meat. In addition, consumers family size and their regular habits significantly affect their intention to purchase meat. Therefore, this empirical study provides guidance for meat stakeholders to develop strategies for preventing food adulteration, increasing convenience of consumers purchasing interest, expanding meat markets, and mitigating the demand for animal protein in Bangladesh.
Keywords: meat adulteration; affirmation and cognition; theory of cognitive dissonance; consumer psychology; Bangladesh.
Influence of institutional investors on firms corporate social performance in an emerging market
by Aditi Mitra, Ahmed Razman Abdul Latiff, Bany Amin Noordin Ariffin
Abstract: The purpose of this paper is to investigate the link between institutional investor ownership (IIO) and corporate social performance (CSP) in Malaysia. CSP Asset4 Sustainability indices have been investigated in order to determine whether institutional owners reward or penalise companies for CSR activities. For this study, assumes that CSP Asset4 sustainability indices are suitable indicators for the performance of corporate sustainability. Based on this assumption, a number of empirical studies have investigated the effectiveness of CSP through globally acknowledged indices, such as the Dow Jones Sustainability World Index (DJSI World) (e.g. Cheung, 2011; Consolandi et al., 2009). The results provide empirical support to the argument that institutional owners act as a promoter of CSP. Moreover, the findings provide evidence that companies are rewarded by institutional investors for resource allocation towards social activities. This study contributes to the concerns of corporate management, public investors, and policy-makers regarding stakeholder involvement towards responsible CSP related investment and ways for improving investments directed towards a firms growth. This is important because the institutional investors who tend to invest their capital in emerging markets based on their perception of the firms ability to exhibit market neutral strategies, i.e. communication and transparency, long-term sustainable focus, and size of the firm. Thus, by understanding the relationship between IIO and CSP, firms can also help companies to gain access to strategic resources and to establish competitive advantage.
Keywords: institutional investor ownership; corporate social performance; ASSET4 Index.
Corporate governance, a solution to the problem of family business sustainability
by Ahmad Jannoun
Abstract: This study analyses the effect of family businesses practices of corporate governance on their respective survival and sustainability. The study groups the major components and constructs impacting the family business lifecycle, and the role of the key elements of corporate governance in this respect, namely accountability, leadership, system, and transparency, on the family business 'sustainability DNA'.
Keywords: leadership; accountability; transparency; system sustainability; DBA; family business.
Impact of a high performance work system on employees' performance within the Bangladeshi telecom sector
by Ishraat Saira Wahid, Denis Hyams-Ssekasi
Abstract: This paper aims to study the rapport that exists between a high performance work system (HPWS) and employees' performance by exploring the intermediating role of employees' attitudes and the moderating role of institutional context in Bangladesh. The study developed a conceptual model based on the knowledge gap in the existing literature. The model was tested using SEM with the help of AMOS. Consistent with the AMO theory, the findings support that application of HPWS is related to enhanced levels of job satisfaction, affective commitment and trust in management. Furthermore, these attitudinal variables were positively allied to the enhancement of employees' performance. The study also provides insights by demonstrating that the institutional context of a country institutes the connection that lay between HPWS and employees' performance. The result of the study suggests that telecom organisations operating in Bangladesh need to devote substantial resources to adopt HPWS to enhance employees' positive attitudes, which in turn will positively impact employees' performance. Equal importance should be given to the institutional context of a country while executing HPWS because such processes encourage fair procedures and result in positive employees' performance.
Keywords: high performance work system; ability-motivation-opportunity theory; strategic human resource management; employees' attitude; employees' performance; institutional context; multinational corporations; Bangladesh.
Sequels of HRM practices on service quality of employees in boutique hotels: a Thailand perspective
by Vazeerjan Begum, Sorasak Tangthong
Abstract: This research investigates the outcomes of personnel management practices on employee service quality in Thailands chain-brand hotels located in Bangkok, Thailand. The hypotheses developed for this study are to discover the affirmative and dissenting associations between the personnel systems, facilitating factors and quality of service impact on the performance of the employees in the organisations. Overall 450 respondents who were at the top managerial positions in human resource, line hotel operation, including restaurant manager, engineering and service maintenance manager, and executive chef, were interviewed, and the data collected was statistically analysed using Social Package for the Social Sciences (AMOS). The outcome of the analysis reflects that the personnel have no direct association with the service quality of the employee as a part of the employee performance. But they have an indirect relationship, meaning employee service quality cannot be determined solely by the use of HRM practices. Motivation of the employee has the strongest effect on the employee performance compared with the other four facilitating factors in this study.
Keywords: HRM practices; employee service quality; Thailand’s chain-brand hotels.
Strategic management: the case of Saudi non-profits
by Mohammed Aboramadan
Abstract: The aim of this research is to examine strategic management in Saudi non-profits. This research investigates the level of application of strategic management in Saudi non-profits, the challenges they face while they implement strategy, and whether a link between strategic management and non-profits' performance exists. Online questionnaires were used to collect data from 296 managers of Saudi non-profits. The study found that the application of strategy implementation and evaluation tools in Saudi non-profits is limited. Satisfying donors requirements is the main driver for non-profits to engage in a strategic management process. Lack of time and financial resources are the main strategy implementation challenges in Saudi non-profits. The study also found positive correlations between strategic management and nonprofits performance. None of the strategic management practices was significant in predicting financial transparency and partnership. Saudi non-profits need to invest in strategic management and pay attention to their strategy implementation and evaluation tools.
Keywords: fundraising; Saudi non-profits; strategic management; performance; projects.
Sustaining corporate performance through the happy worker influence
by Stefane Kabene, Said Baadel
Abstract: Happy workers tend to be more productive, so it would be beneficial for managers to understand what factors tend to predict happiness to assess where the most potentially productive worker pools are located around the world. The current study aims to examine the relationship between multiple factors and happiness. Twelve countries have been selected and data relating to nine different factors of each country have been used to determine the sum impact. All variable factors have been statistically correlated to happiness to predict the factor(s) that could be linked strongly with happiness. An intensive statistical analysis has been used to evaluate the significance of these relations. This study suggests that most of the variables that have been used in the study are significantly correlated with happiness. While some factors may be distant from being a standard for evaluating happiness, other factors showed a strong relationship with happiness. Our paper shows that the Hofstede, cultural, and diversity variables are not effective in determining a countrys happiness index, while the happiness without carbon footprint factor is a more accurate measure of personal happiness.
Keywords: corporate performance; cultural differences; life expectancy; happiness index; happiness index without carbon footprint; peace index.
Comprehending ambidexterity in the emerging-market context: the moderating role of learning capability and environmental dynamism on e-commerce firms performance
by Sanjay Dhir, Viput Ongsakul, Ishita Batra
Abstract: The popularity of the ambidexterity construct has grown in recent years but remains ill-defined owing to the lack of supporting theoretical research. This study aims to comprehend the ambidexterity construct in the context of an emerging market. The two dimensions of ambidexterity combined ambidexterity and balanced ambidexterity are studied. The balanced dimension corresponds to an organisations efforts in maintaining a balance between exploitative and exploratory activities, while the combined dimension corresponds to the combined strength of both these activities. We empirically analyse both dimensions in an Indian e-commerce scenario regarding their relationship with firm performance and also examine the moderating effect of learning capability and environmental dynamism. We reason that a firm's learning capability impacts both dimensions and firms should focus on both external and internal knowledge to benefit from ambidexterity efforts. We also provide implications for scholars and practitioners and suggest some likely research avenues.
Keywords: ambidexterity; India; e-commerce; learning capability; environmental dynamism.
Dynamics of capital structure: evidence from Indian manufacturing firms
by Yukti Bajaj, Smita Kashiramka, Shveta Singh
Abstract: An optimal capital structure is the fundamental premise of dynamic trade-off theory. However, firms deviate from the optimal level and display adjustment behaviour. This mechanism is referred to as the speed of adjustment towards the point of optimality and implies an examination of the convergence process towards the optimal level. One of the key issues in manufacturing companies is their leverage ratios (Mukherjee and Mahakud, 2012); hence, we aim to investigate the capital structure dynamics of manufacturing firms in India. Included in this investigation is a sample of 55 Indian manufacturing firms listed on the NSE200 from 2009 to 2016. Based on the dynamic panel data model with system generalised method of moments (GMM) estimation (Blundell and Bond, 1998), our findings indicate an adjustment speed for the sample firms of around 25%, with a half-life of nearly 2.4 years. In addition, our study reveals that profitability, size, research and development expenditure, growth opportunities, tangibility and the non-debt tax shield are significant variables that impact leverage. This paper aims to enrich the existing literature on capital structure domain by providing an insight into the role of dynamic trade-off theory.
Keywords: dynamic trade-off theory; leverage; optimal capital structure; dynamic panel data; adjustment speed; system GMM estimation; half-life.
Purpose of international joint venture and interaction post termination
by Nakul Parameswar, Sanjay Dhir
Abstract: International Joint Ventures (IJV) are a prominent mode to enter and exploit a new market and have attracted a lot researchers to explain various phases and actions undertaken in IJV. Few studies in the literature discuss the effect of IJV experience on parent firm interaction post termination of their IJV. Interaction post IJV termination as supplier-buyer or complement could allow terminated IJV parent firms to create whole or part of the value created during their IJV showcased in many practical business examples. This study attempts to explore the effect of purpose of IJV for domestic and foreign firm resource seeking, capital seeking, market seeking and strategic asset seeking on the choice of interaction post IJV termination as supplier-buyer, complement or competitor. Empirical analysis is conducted on data of terminated two partner IJVs headquartered in India during 20002016 time period using multinomial logistics regression. Results suggest that both the domestic firm's and the foreign firms purpose of IJV influences the choice of interaction post IJV termination as supplier-buyer, complement or competitor.
Keywords: international joint venture; international joint venture termination; purpose of IJV; resource seeking; market seeking; capital seeking; strategic asset seeking; Multinomial logistics regression.
Perceived ethicality of political behaviour in organisations: a constructivist grounded theory study
by Sauvik Kumar Batabyal, Kanika Tandon Bhal
Abstract: Office politics is a part of everyday professional life. In this work, we have attempted to uncover the cognitive moral logic that employees use with regard to political behaviour in organisations. To accomplish this, we applied the constructivist grounded theory methodology by conducting, recording, analysing and coding 27 in-depth semi-structured interviews of working individuals in various organisations. Our results revealed 13 rationalising tactics or neutralisation techniques for judging whether a given political behaviour was ethical or not, and six different rationales of mostly normative nature for perceiving political conduct as unethical. Moreover, it also revealed that while applying logic in the context of office politics, employees tend to use more than one logic-combination. The justifications for employee behaviour seemed to depend on the position and the nature of the individual. The practical implications, limitations of this study and future research directions are also discussed.
Keywords: perceived ethicality; moral logic; neutralization; office politics; constructivist grounded theory; ethics.
Is the excessive reliance on board monitoring justified in the context of corporate governance framework?
by Monika Singla, Shveta Singh, Sushil
Abstract: This paper attempts to extend the concept of 'bundle of governance mechanisms' and analyses the dynamics of various governance mechanisms in relation to each other. Further, this paper seeks to answer if it is justified to exercise a huge reliance on board monitoring alone while designing or analysing the governance structure of a firm. This paper uses the Total Interpretive Structural Modeling (TISM) approach, which is a novel qualitative data analysis technique, to analyse the various hierarchical relationships based on the relative driving power and dependence of various monitoring mechanisms. The conceptual framework presents the mediation and moderation effects of various governance mechanisms. Board monitoring has the driving power to strengthen other governance mechanisms, such as auditors quality and foreign institutional investment. However, the relationship between board monitoring and firm performance is moderated by other governance mechanisms, such as product market competition and ownership concentration. The findings suggest that a huge reliance on board monitoring is justified to an extent as it has the driving power to strengthen other governance mechanisms. However, board monitoring alone should not be considered as a benchmark to assess the quality of the governance structure of a firm as the influence of board monitoring as governance mechanisms is moderated by other governance mechanisms, such as ownership concentration and product market competition.
Keywords: corporate governance; monitoring mechanisms; board of directors; bundle of governance mechanisms.
Deglobalisation as a challenge: a case study of the United States
by Shamita Garg, Sushil
Abstract: It has been observed that the world is moving towards the deglobalisation era and developed nations have marked its beginning. The USA has adopted the policy leading to the dismantling of the globalisation period. In the current study, SAP-LAP framework has been developed to understand the variables that have brought the change in paradigm towards deglobalisation in the United States. SAP-LAP is used to analyse the determinants of situation,' actors' and processes' in the case study of the USA. This modelling will help in listing key learning issues and suggest actions to be taken by select performance areas. The integrated framework is discussed using cross-interaction matrices. With the literature review, it has been found that the factors that have brought about globalisation are now behind its backlash. It has been seen from the literature that migration, fear of job losses, income reduction, increased welfare costs, larger unemployment spells, exploitative wages, trade deficit, cheap imports, etc., are some of the reasons that have brought displeasure among the people of the USA.
Keywords: United States; globalisation; deglobalisation; SAP-LAP; wage reduction; migration; job loss; trade deficit.
The implication of consumer knowledge of technology and consumer behaviour with technology-based products: empirical evidence from US and Indian consumers
by Angelica Bahl, Gregory Black, Bhausaheb R. Londhe
Abstract: This study introduces constructs, such as a technological novelty and technological benefits of a product, with technology-based products and then analyses variables (choice confusion, impulse buying, price consciousness, risk attraction, status consumption, and time pressure) to examine how consumer knowledge of technology affects their behaviour. The findings were derived from American and Indian samples. While a product's novelty and the importance of underlying technology of a product are the most important factors for technologically knowledgeable consumers, the importance of technological benefits and willingness to wait for a new version of the technology do not directly impact consumers in either sample. This study shows that risk attraction and status consumption are significant characteristics for Indian consumers. We explore the technological sector within the American and the Indian contexts keeping in mind that insights could be useful in the future as they could be used by both technology-based consumers and firms.
Keywords: consumer knowledge of technology; technology-based product; consumer behaviour.
Strong, yet we are vulnerable: the role of psychological factors and financial affluence in womens entrepreneurial success
by Tanusree Chakraborty, Dishari Gupta, Bipasha Chatterjee
Abstract: Globalisation and the diversification of the workforce has seen an economic transition where women are engaging themselves in economic activities apart from their household responsibilities and other traditional expectations. Womens entrepreneurship has thrived greatly and their increasing participation in business has made an immediate contribution to the economy. However, women face a variety of obstacles in business. It is, therefore, necessary to understand what, in spite of these hurdles, impels women entrepreneurs to be successful in their businesses. Important psychological dispositions that have strengthened and sustained women entrepreneurs are the ability to take the first step towards risk (proactivity), belief in their own capacities (personal efficacy), and the locus of control in their personality. The present study will explore these factors in womens entrepreneurship and study the relation of these to the success and failure of their businesses. For this purpose, a group of 200 women entrepreneurs from West Bengal was studied by using a questionnaire. The results suggest that, when locus of control is found to be internal in the women, proactivity and personal efficacy are high and non-affluent entrepreneurs have higher levels of proactivity and personal efficacy compared with their counterparts. The variables of proactivity, personal efficacy, locus of control and the financial conditions of the women entrepreneurs significantly impact success and failure in their ventures.
Keywords: personal efficacy; proactivity; locus of control; women entrepreneurs; success and failure; affluence.
Political connections, opaque financial reports and stock price synchronicity
by Lukas Purwoto, Eduardus Tandelilin, Mamduh Hanafi
Abstract: From the perspective of corporate governance, stock price synchronicity can be understood as a lack of disclosure. This study investigates the effect of political connections, government majority ownership, and the opacity of financial statements on the stock price synchronicity of public companies in Indonesia. Our analysis shows that political connections and government ownership increase stock price synchronicity. Synchronicity is also positively affected by the opacity of financial statements. Furthermore, when the opacity of financial statements increases, the influence of political connections and government ownership on stock price synchronicity tends to increase. These results imply that political ties impede disclosure of firm-specific information, and poor quality of financial statement exacerbates this impediment.
Keywords: stock price synchronicity; firm-specific information; political connections; government ownership; the opacity of financial statements.
A model for the competitiveness development of manufacturing firms in entrepreneurial exports
by Jaleh Farzaneh, Vahid Nasehifar
Abstract: The present study is one of the few carried out to test a model for developing the competitiveness of small and medium-sized enterprises (SMEs) from the dynamic capabilities perspective and considering international entrepreneurship, especially in the food industry. The existing research using the dynamic capabilities perspective has focused more on multinational corporations and has been undertaken in developed countries. Therefore, the context of our study, SMEs in Iran, is new. In addition, in this study we quantitatively assess the competitiveness development model of manufacturing firms in entrepreneurial exports achieved via qualitative research based on grounded theory. The statistical population was composed of SMEs in food industries. The sampling was conducted using a judgmental purposive approach. Responses to the questionnaires sent out provided a statistical sample of 210 subjects, of which 193 questionnaires were diagnosed as qualified for analysis. Following initial analysis, a structural equations model was implemented using the software Smart PLS. The results indicate that five out of seven aspects of identifying and seizing opportunity capability are effective on configuration capability, while the macro environment adversely affects it. Nevertheless, the micro environment plays a moderating role between the two variables. Moreover, configuration capability is effective on entrepreneurial exports, while governments can build the required infrastructure for entrepreneurial export development based on four aspects. Finally, entrepreneurial exports were proven to impact firms competitiveness. The paper suggests how SMEs can develop their competitiveness with dynamic capabilities and which capabilities can help them in this regard
Keywords: competitiveness; international entrepreneurship; entrepreneurial exports; non-oil exports; food industries.
Special Issue on: Understanding the Advancing of Developing Economies
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
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
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