International Journal of Business Continuity and Risk Management (29 papers in press)
Preventing major accidents Changing business as usual
by Ingrid Årstad, Terje Aven
Abstract: In this article, we examine the recommendation to change business as usual in the aftermath of the Deepwater Horizon disaster. We address the risks associated with risk management practices and their improvement and propose a framework for questioning the foundations of risk management practices, to clarify in which direction business as usual needs to change. This framework helps identify eventual blind zones in risk management practices and vicious cycles that may prevent their improvement. It is intended to provide a structured approach for ensuring that the risk management repertoire reflects current knowledge about major accidents.
Keywords: Major accidents; Management; Complex systems; Framing issues; Risk management; Accident prevention; Socio-technical systems; Complexity vs complicatedness.
Interpersonal trust, Opportunism & Business Performance: An Empirical Evidence of Gem Dealers in Sri Lanka
by Pamudika Gamage
Abstract: This study primarily aims at investigating the effect of interpersonal-trust on the business performance of gem dealers in Sri Lanka. Empirical results were obtained using survey data gathered from 100 registered gem dealers in Ratnapura district in Sri Lanka. Partial Least Square-Structural Equation Model was used to analyse the collected data. The results demonstrate that interpersonal trust, i.e. credibility, benevolence, and the ability among gem dealers have a significant impact on mitigating opportunism, thus on business improvements under all hypothetical relationships. Many previous studies have clearly pointed out the negative relationship between interpersonal trust and opportunism and a positive association between interpersonal trust and business performance. This study concludes that interpersonal trust has major impacts on the well-being of this industry highlighting it as the main characteristic among gem dealers. Thus, interpersonal trust lowers their transaction costs in exchanges and increases the profit levels of gem dealers in Sri Lanka.
Keywords: Business Performance; Gem Dealers; Interpersonal trust; Opportunism; Transaction Costs; Sri Lanka.
Risk Management Practices of Transportation Companies: Practitioners Perspective
by Mazlina Mustapha, Nurul Janna Mustapah
Abstract: Organizations need to set clear strategic goals and objectives to manage the organizations, improve their products and services to the stakeholders and increase the shareholders wealth. However, it is claimed that organizations may face challenges and risks in their operations which may hinder the ability of the organizations to achieve their objectives. Prior studies suggested the implementation of risk management practices to assist the organizations in ensuring their sustainability in the long run. Risk management is posited to be an integral component of good management and is described as a sequence of analytical and management activities that focus on creating a response to the inherent uncertainties of managing a complex situations faced by the organizations, especially in service sector. This is because in the service sector, delivering quality services required by customers is very important so as to maintain the market share and be relevant in the industry. Thus, this study aims to examine the implementation of risk management in the transportation industry, one of the important service sectors in Malaysia. Specifically it investigates how risk management practices in transportation companies assist in ensuring the sustainability of the organizations. Fifteen Head of Operations and Managers in-charged of transportation companies at one of the popular tourism spots in Malaysia were interviewed. Findings suggest that implementation of risk management assist the companies to monitor the drivers and the costs of maintaining buses as well as planning for routes during slack periods. They also adopt different responses to the risks based on the conditions on hand. The results of the study provide information to the transportation companies about the importance of risk management practices in their operations.
Keywords: Risk Management; Transportation Industry; Qualitative; Practitioners’ Perspective.
Sourcing Arrangement of Internal Audit Services: Does It Matter To the External Auditors?
by Mazlina Mustapha, Lee Yip Kwan
Abstract: Internal audit is a crucial monitoring mechanism which assists management of organisations in evaluating the operation effectiveness of organization activities. Their services can be obtained internally or externally by outsourcing the services to public accounting firms. Due to the importance of the function, this study aims to examine whether the sourcing arrangement of this function would influence the external auditors reliance on the work of internal audit in the audit processes. Questionnaires were randomly distributed to 100 external auditors in Klang Valley. However, only 32 questionnaires were returned and usable for the purpose of the study. The results of the study indicate that external auditors would significantly rely more on the work of out-sourced internal auditors compared to in-house internal auditors, especially when the inherent risk is high. In addition, it is also found that the most important factor which influences the level of reliance of external auditors on the work of internal auditors is the level of compliance with relevant professional standards by the internal auditors. This study provides information to the regulators and policy makers in Malaysia about the factors that are important to the external auditors in auditing processes. Furthermore, it also contributes to the internal audit literature in a developing country.
Keywords: Internal auditors; external auditors; outsourcing; in-house; Malaysia.
How would business school students respond if they suspect the boss at work of white-collar crime?
by Petter Gottschalk
Abstract: In this article we study business school students action orientation and follower syndrome when they suspect the boss at work of white-collar crime. Business school students are relevant for this research, as they will occupy positions in the future where they can commit financial crime, prevent crime, or become victims of such crime. Our student responses are particularly interesting, since the students actively had elected a class on financial crime rather than more traditional business school classes. Students responded that they would inform a colleague of their suspicion, and they would not raise their suspicion with the boss. Students do not suffer from the follower syndrome in their self-reported scores in the questionnaire. We found no statistical relationship between the extent of the follower syndrome and the extent of action orientation among students.
Keywords: White-collar crime; survey research; whistleblowing; business school students; retaliation.
A combination of the fuzzy best-worst and Vikor methods for Prioritization the lean six sigma improvement projects
by Mohammad Hashemi Tabatabaei, Mohammadali Khatami Firouzabadi, Maghsoud Amiri, Mohammad Ghahremanloo
Abstract: In today's competitive world, the number of organizations using lean six sigma techniques is increasing widely. The six sigma concept was originally developed to improve the efficiency and quality of manufactured products, but is now widely used by financial institutions, hospitals, retailers and other service industries. One of the most important issues in this regard is the selection of six sigma improvement projects. The purpose of this paper is to rank and prioritize the lean six sigma improvement projects by introducing a method which is a combination of fuzzy best-worst and Vikor methods. A total of 10 improvement projects were selected, and four criteria which have been used more frequently in previous studies were selected as evaluation crtiteria. The weights of the criteria was obtained by using the fuzzy best-worst method. Then, according to the weights obtained at this stage, the lean six-sigma improvement projects were prioritized by using the Vikor method. The results of this study showed that improvement project #5 had highest significance and it was placed at the first priority. Also, the results showed that selecting and prioritizing six sigma improvement projects using a combination of fuzzy best-worst method and Vikor method can lead to select the best project among the lean six sigma improvement projects, because this combined method requires less information and provides more consistent pairwise comparisons
Keywords: Fuzzy best-worst method; Vikor method; Improvement project; Lean six sigma.
Maximizing the Contribution of Renewables in a Utility Energy Mix
by Roy Nersesian, Joseph McManus
Abstract: Solar and wind energy sources present meaningful challenges for utility operators. These energy sources are subject to random exposure to cloud cover and variable wind conditions. Predicting cloud and wind conditions is fraught with uncertainty. Thus solar and wind power sources present important considerations of reliability. This paper develops and discusses a generalized methodology to incorporate renewables like solar and wind into the traditional energy mix for electric utilities in light of the reliability challenges they present. Solar and wind cannot reliably displace fossil fuel or nuclear power fully in the energy mix at present. However, pumped storage facilities retain the capacity to provide sufficient storage to stabilize renewable generation and assure reliability of service utilizing currently available technology. As a result pumped storage capacity is the demand stabilization method applied within the simulation set forth. The method presented also enables a utility to examine and model variance within the general shape of the demand for electricity through the simulation.
Keywords: Renewables; electricity storage; pumped storage plants; simulation modeling; @RISK; Evolver; and RISKOptimizer decision tools; reservoir dimensions.
Analysis and model development of supply chain risk variables in the Indian manufacturing context
by Harish Babu, Prabhas Bhardwaj
Abstract: Modern supply chains operate with a complex structure having multiple echelons, multiple partners at an echelon, which may be located at different places. In such an environment, risks and uncertainties are the realties, which create several problems for the supply chain managers. These risks can make the supply chain more vulnerable and may sometimes slowdown the supply chain or completely shut down the supply chain. This has led organizations to keep the study of Supply Chain Risk Management (SCRM) as their key concern. In order to handle supply chain risk properly, relevant risks to a supply chain and their interrelationships should be identified. This paper identifies seven dominant risk variables based on the case study of an electrical wire manufacturing industry. Interpretive Structural Modelling (ISM) approach has been applied to develop the interrelationship among these risk variables, and a relatively new approach of ranking the variables, based on driving power as well as dependence power, has been used. Based on MICMAC analysis, the risks have been classified into different categories. This research finding can be useful for managers to understand the characteristics and interrelationships among the risk variables for building a robust supply chain.
Keywords: Supply chain risk management; risk types; risk variables; risk triggers; Interpretive Structural Modelling (ISM); MICMAC analysis.
An Evaluation of the Status of Lean Manufacturing Practices in SMEs in Northern India
by Sachin Saini, Doordarshi Singh
Abstract: The purpose of this investigation is to evaluate the penetration of Lean Manufacturing Practices and their effect on firm performance on the SMEs located in Northern India. Evaluation of the status of LMPs on the performance of SMEs has been done by the percent point score method which is a quantitative approach. 8 lean practices have been selected after an extensive literature review and validated through experts from the field. This study depicts the actual status of the implementation of Lean Practices in the 183 SMEs of Northern India related to manufacturing sector. Out of the selected, implementation of 5s, PM, Supplier management has been discovered to have found favour with the manufacturers to a high extent. But other operational practices like JIT, Kanban, SPC have are less in favour. The analysis reveals that some attempts have been made to enhance firm performance through the application of Lean Practices. And, this study has been successful in presenting the initiatives of the SMEs regarding Lean manufacturing practices for enhancement purposes. It will help the stakeholders in enhancing their firm performance, reaping higher profits and contributing to the growth of the national economy.
Keywords: Lean Manufacturing Practices (LMPs); Smaller and medium enterprises (SMEs); Firm performance; Percent Point Score Method.
Driving Excellence in Credit Risk Management Practices in Commercial Lending- An Empirical Analysis of Indian Public Sector Banks
by Renu Arora
Abstract: Credit decisions are basically investment decisions with uncertainty over future cash inflows. The credit/risk managers in banks have to make informed choices based on their risk perceptions about commercial borrowers and manage credit risk at operational, strategic and regulatory levels. This study has investigated the effectiveness of a wide array of credit risk management (CRM) practices of Indian public sector banks through statistical analysis of perceptions of their credit analysts. Based on a systematic and comprehensive review of CRM systems in these banks, the study concluded that the most functional CRM practices are awareness about other banks risk management systems, a strong loan appraisal and review mechanism, implementation of KYC (Know Your Customer) norms, multi-tier credit approval process, risk-based appraisals, and controlling willful defaults by all means. The study also observed that there are many statistically significant different managerial perceptions about several CRM practices and this might be affecting the decision-making and judgment process on loan appraisals, risk scoring, loan reviews and other critical CRM processes and procedures.
Keywords: Mid corporates; Credit scoring; Risk analytics; Non-performing loans; Insider loans; Willful defaulters; Limits management; Skill gap analysis; Tacit knowledge; Core competency; India.
JEL Classification: G02; G12; G21; G32.
Assessing the risk reducing effect of measures against intelligent attacks: Review and discussion of some common approaches
by Tore Askeland, Roger Flage, Seth D. Guikema
Abstract: It is well-established that there is a fundamental phenomenological distinction between intentional events and non-intentional events. Different approaches have been proposed for assessing risk from intentional events, including a conditional screening approach ignoring the probability of attack, probabilistic risk analysis, game theoretic modelling, and a semi-quantitative approach highlighting the knowledge dimension and surprises. In the present paper, we review and compare these four approaches in terms of how they assess the effect of risk reducing measures. The potential theft of paintings from an art museum is used as an illustrating example. The comparison illustrates how the different fundamental assumptions underlying these approaches influence the baseline conclusions made regarding risk reducing measures. A scheme for assessing assumptions and their justification is suggested, linked to the semi-quantitative approach and showing how this approach can contribute to the structuring and evaluation of the decision basis provided by the other approaches.
Keywords: intelligent adversarial risk assessment; game theory; probabilistic risk assessment (PRA); strength of knowledge.
Management of nuclear power plant emergency: A case of Korea
by Kyoo-Man Ha
Abstract: This study aimed to show how the management of nuclear power plant emergencies in Korea may be improved. Self-interest and all-interests management approaches of various stakeholders: nuclear power plant operating company, local governments, nongovernmental organizations (NGOs), and residents, were compared. From an international perspective, the effective management of a nuclear power plant emergency in a local community is outlined through qualitative content analysis. It was observed that the above-mentioned four stakeholders have not approached radiological emergencies as a societal issue, but rather as their own business- or work-related matter. Thus, a major finding of this study is that the local community must reform the current self-interest management by incorporating all-interests management in the near future.
Keywords: nuclear emergency; radiological emergency; local governments; self-interest management; all-interests management.
Case study: Development of an integrative approach to assess municipalities resilience potential
by Delphine Micouleau, Benoît Robert
Abstract: The main objective of this research project is to develop a method of analysis and diagnosis of the resilience potential of municipal organizations. The approach developed and the resulting recommendations allow medium and long-term decision-making for further action to improve the resilience potential. The analyzes are based on criteria validated in collaboration with municipal managers and continuity program managers from a test municipality. The operational validation of this project has resulted in criteria that correspond to the disruption management of municipal managers. It focuses on the margin of maneuver, as well as knowledge, acceptance, planning, adaptation and anticipation as components of the resilience potential.
Keywords: Resilience; margin of maneuver; planning; adaptation; anticipation; acceptance; disruption; analysis and diagnostic; analysis criteria.
Using Stress Testing Model in Measuring the Impact of the Financial Crisis on the Jordanian Commercial Banks
by Fouzan ALQaisi, Asem Tahtamouni
Abstract: this paper aims to answer multiple questions regarding Jordanian bank stability under credit, market, and liquidity shock scenarios in order to evaluate bank solvency and liquidity. The paper will use Stress Testing Model to measure the effect of the financial crisis in 2008 on the Jordanian commercial banks. It will conduct various stress testing scenarios on 13 Jordanian banks with the aim of better understanding the risk profile of the Jordanian banking system. Two spreadsheet models are utilized to conduct credit, market and liquidity shocks to assess the performance of the banks under each shock. The findings of this paper demonstrate that the Jordanian banking system is generally able to withstand reasonable shocks of each type, with some addressable weaknesses such as collateral under-provisioning and liquid asset shortcomings.
Keywords: Stress Testing Model; Financial Crisis; Bank Stability; Commercial Banking Sector; Jordan.
SCALING BAD DEBTS IN INDIAN PUBLIC SECTOR BANKS: A MULTIVARIATE ANALYSIS
by Renu Arora
Abstract: This paper empirically evaluates eight bank-specific credit risk determinants to explore the extent to which the Indian public sector commercial banks have been able to restrain their stressed commercial loans and check the NPA growth in lending to business and industry. The study analyzes the inherent relationships and causality between these credit risk variables for 12 banks, for 11 years (2006-17), immediately before large scale merger of some of these banks, using ratios, growth rates, linear simple and multiple regression analysis, and Standard Granger causality tests. The study indicates that higher restructuring of loans and advances by the public sector banks has increased their non-performing loans, though causality between the two could not be established. A statistical causality relation at 10 % level of significance between net non-performing assets and capital adequacy ratios has been found. The study also indicates capital adequacy ratios causing changes in Net Interest Margin in the both, the best and worst performing public sector banks the State Bank of India and the United Bank of India. These cause and effect relationships have contributed towards a new understanding about key credit risk parameters in commercial lending by banks.
Keywords: Risk-weighted assets; Debt restructuring; Sensitive sectors; Net interest Margin; Capital Adequacy ratios; Data analytics; Stressed assets; Operational efficiency.
Towards Adequate Cybersecurity Risk Management in SMEs
by CHRISTOPHER MOTURI, Nabihah Abdulrahim, Daniel Orwa
Abstract: Small and Medium-sized Enterprises (SMEs) are core to the growth of the African economy. Their continued dependency on technology is driving them deeper into risks. SMEs that are developing technology-based solutions need an effective way to manage cyber risks. This study sought to determine the key cybersecurity risks faced by SMEs in Kenya that develop technology-based solutions. Using a case study approach and based on the National Institute of Standards and Technology (NIST) cybersecurity framework, an in-depth evaluation of the cybersecurity risk management practices within a selected SME was undertaken. The paper reports on the components identified as critical in the management of cyber risks within SMEs. An implementation strategy has been developed to provide a roadmap to assist in the management of cyber risks as part of their business risks. Insights provided will assist the Government and regulatory bodies assess the adequacy of current cybersecurity legislations and guidelines. This study has practical implications for SME managers in fostering a cybersecurity culture in this growing sector.
Keywords: Cybercrime; Cyber Risk; Cybersecurity; NIST; Risk Management; SME.
Special Issue on: SAC-MESS 2019 Extending Theory for Global Strategic Risk Management Perspectives
THE ROLES OF TRANSFORMATIONAL LEADERSHIP, INNOVATION CLIMATE, CREATIVE SELF-EFFICACY, AND KNOWLEDGE SHARING IN FOSTERING EMPLOYEE CREATIVITY IN THE PUBLIC SECTOR IN VIETNAM
by Khoa T. Tran, Phuong V. Nguyen, Nguyen Huynh Trung Pham, Xuan Anh Le
Abstract: Employee creativity significantly influences the growth of organizations. This study aims to investigate the influence of transformational leadership on fostering employee creativity through mediating factors, including innovation climate, knowledge sharing, and creative self-efficacy, in the public organization context. This study used the snowball sampling approach to conduct a data survey of 461 respondents working in the public sector in Ho Chi Minh City, Vietnam. Tests of the research hypotheses using the structural equation modeling approach show that transformational leadership does not influence employee creativity directly but indirectly by promoting employees creative self-efficacy, knowledge sharing, and innovation climate. The results provide managerial implications for encouraging employee creativity in the public sector. Limitations and opportunities for future research are also highlighted.
Keywords: Transformational leadership; Employee creativity; Knowledge sharing; Innovation climate; Creative self-efficacy; Public Sector.
Price sensitivity as a moderating factor between the effects of airline service quality and passenger satisfaction on passenger loyalty in airline industry
by Harith Yas, Ahmad Jusoh, Khalil Md Nor, Abbas Mardani
Abstract: The following scoping review examines the study conducted on the impacts that variables service quality and customer satisfaction have on customer loyalty focusing on Airline. Contributing factors assessed included the price sensitivity of consumers in airlines services that have an effect on the relationship between the service quality offered and the yielding customer satisfaction. Attainment of the study objectives was based on a wide range of literature existent in the databases available online. Secondary content obtained from a wide range of scholarly works was employed in assessing the research subject supporting the scoping review and its intention to provide a detailed assessment of the results. The literature reviews provided were used in identifying the existing research gaps in this field. However, the yielding literature review provides convincing results on the relationship between service quality and customer satisfaction on attainment of customer loyalty. Studying the airline services, attention is directed towards the airline services quality offered by Airlines starting with Pre-flight, in-flight and post-flight services. Linking the quality of the services to the prices imposed by the company provides an explanation for the decisions made by consumers. A thematic analysis of the information presented in the reviews is conducted to reveal the above.
Keywords: Service Quality; Customer satisfaction; Customer loyalty; Price sensitive; Airline.
EXPLORATION OF INSTITUTION THEORY IN GREEN SUPPLY CHAIN INITIATIVES FOR HEALTHCARE INDUSTRIES IN MALAYSIA
by Norzianis Rezali, Mohd Helmi Ali, Fazli Idris, Yusasniza Mohd Yunus, Yusrizal Sufardi Mohd Yunan
Abstract: The need for sustainable performance in the healthcare supply chain is becoming acute. The healthcare industry currently has to contend with multiple competing pressures alongside the new challenges of sustainable performance. The aim of this research to explore the challenging factors of green supply chain initiatives from the view of the institutional theory. This research tries to assess the actual sustainable performance resulting from the adoption of green supply chain initiatives in healthcare industries. As part of the research, the explanatory frameworks based on the institution theory are explored and discussed. Interview with healthcare industries expert in Malaysia through the four case studies. The results provide in-depth insight and strong empirical evidence on how the institution pressure for green supply chain initiatives that contribute to the sustainable performance in healthcare industries. The findings of this research are intended to be used: (a). To identify the green supply chain initiatives in healthcare industries; (b). To build on a comprehensive picture of what challenges factors for green supply chain initiatives in healthcare industries, as perceived by institution pressure. Additionally, the research offers propositions on how green supply chain initiatives could be better achieved through a range of institution perspective.
Keywords: Institution Theory; Green supply chain initiatives; Healthcare Industries; Case studies; Sustainable Performance.
Identifying the Key Beliefs of Private University Students towards joining the Malaysian Armed Forces
by Wooi Keong Yong, Maizaitulaidawati Md Husin, Khang Jie Liew, Sujitra Sockanathan, Noraini Ismail, Muhamad Radzi Rosly, Othman Md Said, Farhana Syed Ahmad
Abstract: The study investigates Malaysian private university students beliefs towards the Malaysian Armed Forces and their enlistment intentions, as a career in the armed forces appears to be an unpopular career choice among non-Malay youths. Using the Decomposed Theory of Planned Behaviour (DTPB), several variables including attitude, subjective norm and perceived behavioural control were identified. Descriptive norms, gender, economic and ethnic concerns were also included. As the research paradigm is Positivism, primary data via questionnaire will be collected from non-Malay private university students in Malaysia. Therefore, the data collected using non-probability sampling via snow-balling would be very suitable for analysis using a variance-based approach (otherwise known as PLS-SEM). It is expected that the sample size of 133 respondents will provide insights to the students behavioural, normative and control beliefs and this will be able to predict their attitude, subjective norms and perceived behavioural control. The findings are in agreement with previous studies done around the world about youth enlistment in the armed forces. The contribution of this study lies towards identifying the variables that influence non-Malay university students intentions to join the Malaysian Armed Forces. The limitations of this study is that it a snap-shot of the recent situation, it is recommended to have a longer term study.
Keywords: Decomposed Theory of Planned Behaviour; Intention; Malaysian Armed Forces; Military enlistment; Military of Malaysia.
A META-ANALYSIS OF CONTINUOUS TECHNOLOGY USAGE BEHAVIOR
by Mohamed Salem, Khalil Bin Md Nor
Abstract: Continuous technology usage has become a critical factor to maintain business continuity. Many researchers have confirmed the importance of continuous usage behavior and the continuous utilization of technology as the key motive to achieve the values from the initial launching of a service. A review of literature related to continuous technology usage indicates that while there are many studies have tried to explore and examine factors that affect individuals intention of continuous technology usage, there are few studies that have attempted to explore beyond this intention stage, to address the continuous technology usage behavior. Therefore, the present paper reviewed the existing literature on continuous technology usage behavior, mapped the major theories utilized in this field and factors that researchers have used to predict continuous technology usage behavior. The findings highlight that the continuous technology usage behavior studies commonly relied on the expectation confirmation model as the underlying theory. Researchers in the field extended the model by adding new potential constructs. This study found that flow, intention, satisfaction, habit, perceived enjoyment, trust and perceived usefulness are the most significant drivers of continuous technology usage behavior in general. However, the review reveals that the factors affecting continuous usage behavior in east and west culture are different. Several recommendations for research in the area of continuous usage behavior are proposed.
Keywords: Continuous usage behavior; expectation confirmation theory; Information technology usage.
FRAMEWORK FOR ADOPTION OF INFORMATION COMMUNICATION TECHNOLOGY BY SMALL AND MEDIUM-SIZED ENTERPRISES IN DEVELOPING ECONOMIES
by Aondoseer Abeh, Noraini Abu Talib, Dennis Kwatia Amoako
Abstract: Technological evolution in the knowledge driven economy has greatly impacted the manner in which businesses are operated. Prominent among the trending forms of technologies is the information and communication technologies (ICT), that has shaped competitiveness of both large corporations and small and medium sized enterprises (SMEs). The application of ICT for business operations by all forms of business organisations including SMEs has received global attention and it presents exceptional prospects for SMEs as well as scholars to carry out research work that will have implications on performance of SMEs. However, some SMEs in developing nations do not appreciate the paybacks of ICT because of lack of knowledge and certain constraints that follow investments in new innovations. This usually slow down the level of adoption of ICT by SMEs in developing countries. The focus of this paper is to offer a conceptual framework that would facilitate the evaluation of key factors for the adoption of ICT in SMEs. A literature review on ICT adoption is undertaken to advance a conceptual framework for ICT adoption by SMEs. The paper considered a number of theories and technology adoption models and integrated the Technology Acceptance Model (TAM), Technology, Organisation and Environment (TOE), and Agent Network Theory (ANT), frameworks by developing a conceptual framework with SMEs contextual view. This presentation provides a wider perspective of key factors that do not only relate to technology, organisation and environment but also incorporate the interactive perspective of organisations and objects (human and events) in a socio-technical environment.
Keywords: ICT adoption; SMEs; Innovation; Technology.
Special Issue on: AIC 2018 Risk Mitigation and Management Strategies of Multinational Enterprises
CONSUMER ADOPTION OF MOBILE PAYMENTS: A DISTINCTIVE ANALYSIS BETWEEN CHINA AND MALAYSIA
by Kit Teng Phuah, Jit Heng Bernard Lim, Siti Intan Nurdiana Wong Abdullah, Tsu Ping Wong, Jing Yao Xie
Abstract: The adoption of mobile payment and assessment on the prediction of consumers intention has been rising this few years due to the emergence and importance of mobile payment provider such as Alipay and WeChat Pay. In China, these mobile payment providers have long gained users acceptance. However, this phenomenon is still rather new for an emerging economy like Malaysia whereby cashless payment has yet to be fully accepted by the vast majority. This is largely due to the negative perception of Malaysians towards mobile payments security and lack of understanding towards its usage Furthermore, there is still a lack of studies found on the cross-country differences between China and Malaysia, thus this study attempted to compare the adoption of mobile payment between these two countries to identify the differences in mobile payment adoption using existing theory. Factors like perceived usefulness, perceived security, perceived ease of use and attitude from models like TAM and TRA were used to analyse the intention to adopt mobile payment. Consumers from Nanjing, China and Klang Valley, Malaysia were selected for this study. A total of 384 respondents from each country were surveyed using personal administered questionnaire. Among the four factors, perceived security seems to differ for the two countries and the reason will be discussed in the analysis. This comparison study will definitely provide a new insight to researchers and market practitioners in terms of analyzing the adoption of mobile payment in future.
Keywords: Adoption; Cross-country Analysis; China; Malaysia; Mobile Payment.
Agroforestry As A Model of Sustainable Land Use of Small-Scale Private Forest: a case study in Sumedang, West Java, Indonesia
by Endang Hernawan, Mia Rosmiati, Tien Lastini, Sofiatin Sofiatin, Angga Dwiartama, Heri Rahman
Abstract: A small-scale private forest using a model of agroforestry has been growing as part of a rural culture and has become an important source of income for many rural people. In the case of subsistent farmers whereby two main production inputs: land and capital, are limited, farmers goal is not to maximize production on one commodity. In many cases, particularly in densely populated area, farmers usually integrate seasonal crops and livestock with perennial crops to fulfill their daily dietary needs. However, the aspects of sustainability that are comprehensively reviewed have not been widely revealed in small-scale private forest. This comprehensive study is important for future development and strategy development in small-scale private forest in Sumedang, West Java Province, Indonesia. The aim of this paper is therefore to identify the characteristics of small-scale private forests under the agroforestry model. The sampling technique used was simple random sampling and determining sample size using the Slovins formula. The survey included 27 open- and closed-ended questions investigating participants forest, owner's perception of ecological stability; local culture and knowledge; their income, and socio demographics' forest owner's. Agroforestry-based small-scale private forest demonstrates a sustainable farming system: the system possesses a high ecological stability; socially, it is based on the local culture and knowledge; and economically, the agroforestry model contributes significantly to farmers income.
Keywords: Small-Scale Private Forest; Agroforestry; Sustainability.
Attitude of construction workers toward labor safety
by Phong NguyenThanh
Abstract: The construction industry has one of the most dangerous working environments among various professions. Workers in construction investment projects account for a large component of the costs, and there are many risks to labor safety. Therefore, ensuring that workers are not injured and aiming for zero labor accidents is a significant imperative and challenge for project managers and construction workers. Ensuring safety during construction work contributes to the success of a project. This paper presents a study of worker attitudes toward labor safety. The research was conducted by using an expert interview approach and questionnaire survey in order to find out which factors influence construction worker attitudes about labor safety conditions. Factor analysis found five factors that affect the attitudes of workers toward labor safety: (1) organizational policy; (2) communication; (3) risk acceptance; (4) psychology; and (5) equipment monitoring and management.
Keywords: construction workers; labor management; project management; safety management.
Assessment of Market Competition and Financial Stability of Takaful Market in Saudi Arabia and Malaysia
by Sue Sim Cheong, Ahmad Fahmi Sheikh Hassan
Abstract: The mounting pressure for consolidation may eventually bring about significant implications upon market competition, economic, and financial performances. As such, this paper reports a preliminary study that looked into the dynamics of Takaful market competition in Saudi Arabia and Malaysia between year 2008 and 2016 by using HerfindahlHirschman Index (HHI), and 4-firm concentration ratio (CR4). The outcomes revealed the Takaful markets in both countries have begun shifting to moderately concentrated position from highly-concentrated markets. Next, this study scrutinised the function played by competing markets so as to influence stability amongst Takaful operators, so as to test if competition can minimise either financial fragility (competition-stability) or financial stability (competition-fragility) in the Takaful market. An Ordinary Least Square (OLS) estimator was employed to assess 44 Takaful operators in Saudi Arabia and Malaysia between year 2008 and 2016. The results appeared consistent with the competition-stability view and transmission mechanism hypothesis.
Keywords: competition-fragility; competition-stability; efficiency; financial stability; Islamic insurance; market competition; Takaful.
Why Medical Tourists must go to Malaysia!
by Ai Chin Thoo
Abstract: Medical tourism industry in Malaysia is booming and has been highlighted as a major catalyst for economic development. This study attempts to examine the determinants that affect the foreign patients repurchase intention to obtain medical treatment in Malaysia. The determinants include hospital and staff, country factor, combination tourism and health services, and cost saving. Self-administered questionnaire was the main instrument for data collection of the study. Data were collected from 117 foreign patients in several private hospitals located at Selangor, Kuala Lumpur and Johor Bharu using purposive sampling technique. Multiple regression was used to test the four hypotheses. Two out of the four hypotheses were found to be significantly and related to repurchase intention for medical treatment in Malaysia. Cost saving was found to be the most important factor that affects the foreign patients intention to revisit Malaysia as their medical destination, followed by the factor of hospital and staff. The findings of the study could enable policy makers to further strengthen Malaysia as the worlds top health tourism destination due to the affordable and high quality medical treatment.
Keywords: Medical Tourism; Health Services; Malaysia.
Limitation Factors of Whistleblowing Practices among Public Sector Internal Auditors in Malaysia: In-Depth Interview Study
by Noridayu Abdullah Sani, Abdullah Sallehuddin Abdullah Salim, Nahariah Jaffar
Abstract: Like Malaysia, the commitment to eradicate the corruption was established through the enactment of Whistleblowing Protection Act 2010 (WPA). The recent Malaysia worst Corruption Perception Index 2017 and increases of Global Corruption Barometer 2017 should encourage the need to explore the answers in relation to whistleblowing practice, particularly among public sector internal auditors in Malaysia. Hence, this study is warranted to explore the limitation factors of whistleblowing practice among public sector internal auditors in Malaysia. Due to the complexity of whistleblowing practice, this study decided to conduct a semi-structured interview among the internal auditors from ministries, statutory bodies and state government offices. The result of this study reveals that there are four limitation factors of whistleblowing practice, that include power distance, failure of WPA implementation, lack of manpower and ineffective internal control. This study also ignites few recommendations to improve the effectiveness of whistleblowing legislation in Malaysia.
Keywords: Whistleblowing Protection Act 2010; whistleblowing practice; public sector organisation; internal auditor.
Special Issue on: Extending Theory for Global Strategic Risk Management Perspectives
The moderating effect of crisis experience on the relationship between transformational leadership, decision making styles and crisis management in Yemen organizations
by Mohammed Alkhawlani, Abdul Manaf Bin Bohari, Jauriyah Binti Shamsuddin
Abstract: rnThe aim of this study is to investigate the moderating effect of crisis experience on the relationship between transformational leadership style, decision-making styles and crisis management in Yemen organisations. A total of 281 questionnaires were distributed among Yemen private organizations. Only 239 questionnaires were used in the analysis. Partial Least Squares Structural Equation Modelling (PLS- SEM) was employed in the data analysis. The findings indicated that transformational leadership has a significant influence in crisis management during crisis confrontation as well as decision making styles, which have a positive impact on crisis management. In addition, the moderating effect of crisis experience has been confirmed to enhance the relationship between transformational leadership style, decision making styles and crisis management during the crisis. In particular, the research successfully revealed that the transformational leaders have ability to transfer their enthusiasm, high power and transmit the inspirational motivation to their subordinates, which lead to better interaction during crisis situation. Future research is recommended to focus on mediating and moderating role of the factors influences crisis management during the crisis situation.
Keywords: Crisis management; Transformational leadership; Decision making styles and Crisis experience.