3rd International Conference On Business Management ICBM 2018 PDF

rd
Proceeding of 3
International Conference on
Business Management 2018
Penang, Malaysia
7 – 8 October 2018
Organized by:
•• •
FOREWORD
Assalamualaikum w.b.t and warm greetings,

It is a great pleasure to receive you at Vouk Hotel and Suites for the 3 rd International Conference
on Business Management (ICBM-2018) organized by School of Business Management (SBM),
UUM.
In conjunction with the announcement of Malaysian Industrial Revolution 4.0 in June 2017, we
are strongly of the view that it is time to make a commanding effort to embrace new ideas, new
approaches and to be innovative in terms of how high skill human capital (graduating s tudent)
should be provided.
SBM proudly take initiative to gather expertise in diverse fields to discuss issues on policy
development and academic research through the presentation of joint projects and a broad
range of papers. It is our sincere hope that this event will provide interesting multi-dimensional
views, relevant knowledge and information that are valuable for your future work.
Finally, we would like to thank all presenters for their willingness to share their latest research
and ideas. We wish you all a warm welcome to ICBM 2018, a highly successful conference. Our
best wishes to productive conference.
PROFESSOR DR AHMAD BASHAWIR HJ. ABDUL GHANI

Vice-Chancellor
Universiti Utara Malaysia
•••
WARM
REMARKS
I am very proud and pleased to present
the 3rd International Conference on
Business Management 2018. This
conference is a continuation of a very
successful 2016 conference that was in
held in Jakarta, where academic
research on management was the main
theme. This 2018 conference has a
different focus and expanded agenda
to integrate the world of academia and
practitioners as a crucial effort to
accelerate stride toward the Industry Revolution 4.0. This conference is aimed at academic
researchers, practitioners as well as graduate students working in various areas of
management, entrepreneurship, marketing, human resource and others. Two leading experts in
their respective fields of management and human resource will deliver their keynote
presentations. Please look forward for more than 100 articles that will be presented through our
two-day conference.
The theme of the conference is selected with the intent to seek various inputs from our strategic
engagement and discussion particularly in topic of the Industrial Revolution 4.0. We sincerely
hope that this avenue will capture emerging trends and patterns in industrial landscape
transformation, and address problems strategically rather than reactively. In the last few years
we have been working to build a flexible and effective strategy that can consistently address the
right issues in the right way.
I would like to render my utmost appreciation to all staff of School of Business Man agement, UUM
for their contributions and untiring effort for this event. We would also like to express our utmost
appreciation to the Academy of Strategic Management Journal, Academy of Entrepreneurship
Journal, International Journal of supply Chain Management, International of Entrepreneurship,
International Journal of Banking and Finance, International Journal of Management Studies,
Journal of International Studies and Malaysian Management Journal in advance for the
opportunity to publish and disseminate this conference’s proceedings electronically worldwide
free of charge.
Last but not least, we also would like to thank the principal speakers and participants for their
PROFESSOR DR HAIM HILMAN ABDULLAH
valuable contributions to ensure the success of the conference and publication of the
Dean
proceedings.
School of Business Management
College of Business
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ORGANIZING COMMITTEE
PATRON
Professor Dr Ahmad Bashawir Hj. Abdul Ghani
Vice-Chancellor
ADVISOR
Professor Dr. Haim Hilman Abdullah
Dean
DIRECTOR
Dr. Norkhazzaina Salahuddin
ASSISTANT DIRECTOR
Dr. Shahrin Saad
EXECUTIVE SECRETARY
Dr. Normalisa Md. Isa
CONFERENCE PAPER, PROCEEDINGS & PUBLICATIONS

Dr. Shamsul Huda Abdul Rani
Dr. Waida Irani Mohd. Fauzi
PROMOTION & SPONSORSHIP

Dr. Siti Noratisah Mohd. Nafi
Assoc. Prof. Dr. Norashidah Hashim
Dr. Bidayatul Akmal Mustafa Kamil
Miss Norzalila Jamaludin
LOGISTIC & TECHNICAL

Dr. Azrain Nasyrah Mustapa
Dr. Arunnaa a/p Sivapathy
Dr. Kadzrina Abd. Kadir
ORGANIZING COMMITTEE
PROTOCOL
Dr Hj Mohamad Zainol Abidin Adam
Assoc. Prof Dr. Hasnizam Shaari
Dr. Awanis Ku Ishak
IT & TECHNICAL
Mr. Mathivannan Jaganathan
CONFERENCE KIT, CERTIFICATE & REGISTRATION DAY

Dr. Soo Hooi Sin
Dr. Indraah a/p Kolandaisamy
ADMINISTRATIVE OFFICER
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Mrs. Nur Qistina Mohd Nafis
EDITORIAL BOARD
Dr. Norkhazzaina Salahuddin

Dr. Shahrin Saad
Dr. Normalisa Md Isa
Dr. Shamsul Huda Abdul Rani
Dr. Waida Irani Mohd. Fauzi
Dr. Bidayatul Akmal Mustafa Kamil
Miss Norzalila Jamaludin
Mr. Mathivannan Jaganathan
Table of Contents Page
Academic Staff Leadership and Fairness Perceptions of Effective Performance Appraisal 1

Towards A Better Understanding of The Mechanism Linking Perceived Workload to 9
Counterproductive Work Behaviour: Does Job Dissatisfaction Matter?
Servant Leadership and Job Performance of Malaysian Public Universities’ Leaders Mediated 23
by Working Environment: A Conceptual Paper
Assessing Online Learners’ Well-Being Outcomes Using Partial Least Square Approach 38
Linking Organisational Justice and Turnover Intention Through the Moderating Effect of Job 59
Embeddedness: A Conceptual Framework
The Moderating Role of University Reputation on Relationship of Intrinsic, Extrinsic Motivation, 69
University Reputation and Job Satisfaction
Occupational Safety Management Practices: The Role of Safety Motivation 88
Safety Training and Safety Awareness Among TVET Teaching Staff in Peninsula Malaysia 99
Employers’ Perception Towards Hiring Persons with Disabilities 109
Employees Turnover Intention Among Academicians in Kolej Poly-Tech Mara (KPTM) Malaysia 118
Relationship Between Promotion Opportunity, Ethical Climate and Organizational 135
Performance in Nigerian Educational Sector: An Empirical Analysis
Public Private Partnership in Nigeria: An Alternative to Growth and Development 156
Lean Management and Organisation Performance: The Moderating Effect of Knowledge 166
Transfer
Mismanagement of Pesticides: A Case of Dichlorodiphenyltrichloroethanes (Ddts) 178
The Relationship of Extrinsic Factors Towards Social Loafing 195
The Impact of Leader Interpersonal, Networking and Social Astuteness Skill on Employees 206
Positive Affect and Intent to Discretionary Effort
Knowledge Management Processes and Innovativeness in Public Higher Education 222
Institutions: Moderating Effect of Technological Capability
Mediation Effect of Dynamic Capabilities on Information Capabilities and Higher Education 237
Institution Competitive Performance
Spatial Data Utilization for Customer Profile Analysis: A Model of Spatial Postal Address 247
Architecture of Spatial and Non-Spatial Data for Prospecting the Lifetime Value Model Of 256
Hypermarket
Stimulating SMEs Business Success with Entrepreneur’s Efficacy, Improvisational Behaviour 270
and Strategy Adoption
Perceived Business Opportunities and Working Women Entrepreneurial Intention in Nigeria: A 278
Proposed Model
A Study of Malaysian In Selection of Food Truck in Malaysia 284
The Impact of Islamic Banking on Developing Entrepreneurial Inclinations Among University 292
Students: A Mediating Role of Business Simulations
The Impact of Entrepreneurial Orientation (EO) On the Graduate Student’s Business 301
Performance
Role Of Social Network, Entrepreneurial Alertness And Creativity On Entrepreneurial 310
Opportunity Recognition
Fishing Finance Through Islamic Microfinance Institutions 322
Ekonocinta: BIARKAN CINTA BERBICARA 334
Study On The Intention To Invest In Unit Trusts Among Working Adults At Kuala Lumpur: An 364
Application Of The Tpb Model
Secant Condition Free Of A Spectral Hestenses-Stiefel (Shs) Conjugate Gradient Method And 387
Its Sufficient Descent Properties
Perceived Business Opportunities And Working Women Entrepreneurial Intention In Nigeria 395
A New Conjugate Gradient Coefficient Using Strong –Wolfe- 402
Powell Line Search For Unconstrained Optimization
3rd International Conference on Business Management (ICBM) 2018
Academic Staff Leadership and Fairness Perceptions of

Effective Performance Appraisal
Suleiman Abubakar Babaganaa, Associate Prof. Dr Norsiah Matb, Dr Hadziroh Binti
Ibrahimc
a
PhD scholar, School of Business Management, Universiti Utara Malaysia, Malaysia,
Email: sbabagana@fptb.edu.ng
b
Lecturer, School of Business Management, Universiti Utara Malaysia, Malaysia,
Email: norsiah@uum.edu.my
c
Lecturer, School of Business Management, Universiti Utara Malaysia, Malaysia,
Email: hadziroh@uum.edu.my
Abstract
Performance of academic staff in the higher education institutions (HEIs) is

acknowledged as a key contributing factor for students’ and institutions’ performances.
Hence effective appraisal of performances for academics becomes very critical towards
the objectives for the establishment of HEIs. Besides, boosting employee performance
is the central purpose of any appraisal policy in organizations. However, performance
appraisal (PA) is in most instances observed to be a routine activity that consume school
leaders and academic staff’s time in most institutions. For instance, there are indications
that performance appraisal procedures and criteria are not well observed aside being
universally used to improve employee performance which affects its effectiveness in
organizations especially educational institutions. For that reason, to add to the body of
literature, this paper strives to achieve two objectives. First, it aims to present discussion
on lecturer leadership and fairness perceptions of performance appraisal drawn from
literature. Second, to present a conceptual framework that shows the relationships of the
study variables. It is expected this will propel empirical study using the framework.
Keywords: Effective Performance Appraisal, Leadership, Procedural Fairness, Academic

Staff
INTRODUCTION
Performance appraisal (PA) is an important human resource management (HRM)

practice in the 21st Century that organizations utilize to assess employees’ performance
to attain success and effectiveness (Rusli & Sopian, 2013). Thus, various sectors and
organizations use it to manage and appraise employees’ performance (Khedkar, 2015).
Beside its prominence in the field HRM, its relevance has also been recognized by
scholars of industrial/organizational psychology, public administration and other related
fields (Babagana, 2014; Idowu, 2017; Ismail, Mohamed & Rayee, 2017; Park, 2017). It
was observed that making objective consistent and valid performance procedures can
be challenging which necessitated a shift of research focus from performance
measurement to performance appraisal procedures (Narcisse & Harcourt, 2008). In
addition, it was also reported that leaders have to contend with the demanding
responsibility of PA as it influences the performance of employees (Peretz & Fried, 2012).
In the higher education institutions (HEIs), performance for academic staff is
recognized as a major determinant of students’ and institutions’ performances (Kingdon
& Teal, 2007). For that reason, measuring performance for academic staff is crucial
towards achieving quality as well as attaining the needed bench mark (Christopher et al.,
2017; Addy & Dzisi, 2014).
It is contended that the success or failure of an organization can be better
predicted with the type of leadership practiced (Lok & Crawford, 2004). Extant literature
indicated that PA for academic staff for instance, is most cases seen as more of a routine
endeavor that take school leaders and academic staff’s time (Danielson & McGreal, 2000;
1
Heneman & Milanowski, 2003). Besides, literatures have shown the effect of the
relationship between the leader (supervisor) and the employee for performance
appraisals (Elicker et al. 2006), particularly the leaders’ role in academics’ staff
performance appraisal (Colby et al., 2002). Likewise, managing employees’ perceptions
of fairness is a determining factor for the success or otherwise of the PA system and
consequently, its acceptance or rejection reliant on on perceptions held of its fairness
(Kim & Rubianty, 2011).
Tuytens and Devos (2012) argue that leaders stir trust, boost the academics’
performance appraisal effectiveness. Hence, it is very imperative that leaders embrace
procedures in the performance appraisal process which Poppo and Zhou (2014)
recognize as “balanced and correct”. Research has demonstrated employees’
perception on the components of organizational fairness influenced their job
performance, particularly under the performance appraisal process (Richter et al, 2016).
As noted by Warokka, Gallato, Thamendren and Moorth (2012), this perception also
affected employees’ work outcome satisfaction, obviously leading to an organization’s
effectiveness (Suliman, 2007). However, Getnet, et al., (2014) reported that in most
institutions, performance appraisal procedures and criteria are not observed. Moreover,
notwithstanding the fact that PA is universally used to enhance employee performance;
there are doubts of its effectiveness in organizations especially educational institutions
(Tuytens & Devos, 2012).
Extant literature indicated that not much organizational fairness studies focused
on PA (Narcisse & Harcourt, 2008). Majority of the studies did not investigate the
relationship between organization fairness on performance appraisal but rather, on other
variables or factors. For that reason, to add to the body of literature, this paper strives to
achieve two objectives. First, it aims to present discussion on lecturer leadership and
fairness perceptions of performance appraisal drawn from literature. Second, to present
a conceptual framework that shows the relationships of the study variables. It is expected
this will propel empirical study using the framework.
LITERATURE REVIEW
Performance Appraisal
Performance appraisal (PA) is the practice by which an employee’s job performance in

an organization is evaluated (Agyen-Gyasi & Boateng, 2015). The practice of PA in
organizations is a typical and crucial duty of supervisors (Park, 2014). It is area that HRM
scholars and practitioners have focused attention because it is established that critical
positive job outcomes such as job satisfaction, productivity/work performance and
organizational commitment having impact towards performance appraisal (Idowu, 2017,
Kampkotter, 2016; Othman, 2014; Park, 2017). Many decisions on issues that motivate
and enhance employees’ performance are built on the performance appraisal outcomes
(Kampkotter, 2016; Selvarajan & Cloninger, 2012). Thus, its accurate administration by
supervisors is essential as the outcome of the process has effect on both individual and
organizational performances (Buller & McEvoy, 2012).
Since performance appraisal by supervisors is one of the major HRM practices
(Murphy & Cleveland, 1995) if observed to defective, appropriate remedial action should
be engaged (Longenecker, 2013). Besides, it is recognized that employees’ performance
improvement and effectiveness are significantly influenced by their performance
evaluations (Mir & Ahmed, 2014).
PA supports both the organization and employees to identify, assess and develop
a benchmark for performance (Ikramullah, et al., 2012). Also, it acknowledges the
contribution of individual employee and makes him/her more committed to the
organization (Armstrong-Stassen & Schlosser, 2010) by inspiring weak performer to
develop (Scott & Einstein, 2001).
2
Studies show that employees’ perceptions of performance appraisal

significantly influence on its effectiveness (Pichler, 2012), particularly as it relates to
fairness and satisfaction (Jawahar, 2007; Thurston & McNall, 2010). A study by Kim
and Rubianty (2011) of employees in 24 of the main federal agencies in the US
established that public employees’ “intrinsic motivation or intrinsic reward orientation” is
positively and significantly related with the perceived procedural fairness of PA. In yet
another study, Kampkotter (2016) reported the existence of a significant and positive PA
influence on employees’ job satisfaction. The results of these studies clearly indicated
the importance of employees’ perceptions on PA. Consequently, dependent on the
intensity of relationships with their superiors and organizations, fairness keeps being
relevant to employees (Collins, Mossholder, & Taylor, 2012). This is for the reason of its
impact specifically on making organizations, job performance and performance
appraisals effective (Cheng, 2014; Greenberg, 2011; Karkoulian, Assaker & Hallak, 2016;
Richter, et al., 2016). Thus, supervisors’ relationship with subordinates and
organizational fairness is important (Collins, et al., 2012), so as to tackle issues that may
come up that result to conflict between them being proxies of the organization and the
employees, particularly in the appraisal process (Emamzadeh, et al., 2007; Harbi, et al.,
2016).
Leadership
Leadership has been an issue of discussion and research resultant of the

intensified revolution and complexity in organizational operations worldwide and it is
argued that the concept has no universally accepted definition (Asrar-ul-Haq & Kuchinke,
2016). However, scholars have defined the concept in numerous ways based on their
understanding. Northouse (2012) described leadership as the process that signifies an
individual’s influence on a group of individuals to attain mutual objectives. The concept
is also described as embodying the duty aimed at achieving specific goals by utilizing
human and material resources to achieve an organized organizational activity (Ololube,
2013). Further, Jong and Hartog, (2007) described it to signify a process of inspiring
individuals to achieve the desired outcomes.
It is argued that leadership entails inducing individuals devoid of direct commands
but inspiration (Tredrea, 2018). Thus, leader’s effectiveness is assumed to be the task
of achieving what is expected from followers with respect to the leader behavior by way
of providing resources, organizational objective set to achieve (Mulki, Caemmerer &
Heggde, 2015). According to Giri and Gayathri (2018), effective leadership can be linked
with the manner that individuals and teams cooperatively assume responsibility for
boosting appraisal process along with skills development. Moreover, Peretz and Fried
(2012) contend that leaders ought to cope with the challenging responsibility of PA as it
touches on the future performance of employees.
Andersen (2016) indicated that leaders are persons that inspire, motivate, and
appreciate their employees in order to accomplish task and achieve the expected
outcomes. To achieve these, leaders adopt diverse leadership styles to influence and
motivate employees (Asrar-ul-Haq & Kuchinke, 2016). Therefore, based on the above
review, this study explores transactional style of leadership to understand its impact on
EPA.
Transactional leadership is characterized by two specific behaviors (Bass, 1985).
The first one is contingent reward behavior, which is like to positive feedback from the
supervisor, that Gozukara, et al. (2017) described to signify that followers that
accomplish their missions beyond expectations are inevitably compensated. The second
type of transactional leadership is "management by exception" which is further described
by Gozukara, et al. (2017) to mean that management by exception assuming active and
passive form. The active part signifies that followers are positioned through monitoring
and where any work inaccuracy is observed; such is remedied for better performance.
Conversely, the passive aspect entails conditional punishment is meted to followers that
execute their responsibilities inconsistent with the organizational goals.
3
Transactional leadership involves closely observing for deviances, inaccuracies,

and mistakes and then taking corrective action as soon they occur (Bass, et al., 2003).
This style of leadership is founded on a compromise process where the leader proposes
rewards in return for the work and subordinates performance (Pillai, Schriesheim &
Williams, 1999). Furthermore, it spreads mutual gains by advancing rewards based on
employees’ performance (Shah & Hamid, 2016) and this is consistent with what Bass, et
al. (2003) described as followers being pushed and inspired with this type of leadership
style. Studies reported that transactional contingent reward style leadership is positively
connected to followers’ commitment, satisfaction, and performance (Bycio, Hackett, &
Allen, 1995; Podsakoff, Todor, Grover, & Huber, 1984).
Procedural Fairness
Perceived fairness practices regarding decisions on matters such as employee

performance appraisals are exercised in organizations (Trivellas & Kakkos, 2015), and
fairness of the manner that lead to the outcome is associated with the procedure followed
(Phin, 2015). Employees’ trust on the performance appraisal system fairness is very
important; else, the exercise may turn out to be worthless (Roberts, 2003).
Procedural fairness is commonly described as the processes and procedures
organizations adopt in decisions making or implementation and the manner employees
react concerning the fairness of some procedures (Richter et al, 2016; Karkoulian, et al,
2016). In other words, it concerns to decisions about the procedure used to establish
outcomes (VouBem, et al, 2016), particularly the perceptions held by employees that
procedures engaged by supervisors to evaluate their performance is fair (Collins
& Mossholder, 2017; Colquitt et al., 2001; Salleh, Amin, Muda & Halim, 2013). Further,
Lau (2015) explains it as all about the judgments regarding the fairness of the “means”
or “rules and processes” supervisors engage decision to making in an organization.
Colquitt (2001) observed that procedural fairness is usually more significant than
distributive fairness. The implication is that employees will in most cases get poor
outcome on the condition they believe it was the outcome of a fair process (van den Bos,
Lind, & Wilke, 2001). Besides, procedural fairness concerns issues of fairness regarding
process, procedures and mechanisms employed to determine the outcomes of
employees’ performance appraisal (Ismail, et al., 2017).
Literatures indicated that employees’ views on all aspects of organizational
fairness have effect on their job performance throughout performance appraisal process
(Richter, et al., 2016). In addition, a significant impact on the attainment and further
development of an organization’s appraisal system has been established in relation to
how employees perceive fairness of performance appraisal (Cheng, 2014). Arguing
further on the importance of fairness, Sharma, et al. (2016) observed that performance
appraisal systems are ineffective unless employees recognize it as been fair. Besides,
employees perceptions held on performance appraisals as unfair might affect the gains
that could be achieved from it, such as, deteriorating opposed to increasing employee’s
positive attitudes and performance (Getnet, et al, 2014).
It is established that procedural fairness influences on individuals’ perceptions of
fairness with respect to performance appraisal (Suhasini & Koneru, 2016). Moreover, fair
performance appraisal procedures are related with employees’ motivation to boost their
performance (Elicker, et al., 2006). Nonetheless, employees’ perceptions of supervisors
failure to give feedback information that allows them develop their career prospects and
performance, perceive the performance appraisal process as unfair and pointless
(Brown & Benson, 2003). Hence, procedural fairness for employee appraisal should be
perceived as essential among employees, regardless of whether their performance
appraisals were positive or negative (Trivellas & Kakkos, 2015).
4
CONCEPTUAL FRAMEWORK
The framework proposes that transactional leadership and procedural fairness relates to
the effectiveness of performance appraisal. Hence, figure 2.1 is the proposed research
model that will form basis for the study drawing on prior studies and applicable theories.
Transactional Leadership
Effective Performance Appraisal
Procedural fairness
Figure 2.1: Conceptual Framework
CONCLUSION
How transactional leadership and procedural fairness perceived in relation to

effectiveness of performance appraisal for academic staff in higher education is an
interesting area that could contribute to the body of existing literature. The conceptual
framework in this paper could be used to see empirically how the variables discussed in
this paper make performance appraisal effective.
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8
TOWARDS A BETTER UNDERSTANDING OF THE MECHANISM

LINKING PERCEIVED WORKLOAD TO COUNTERPRODUCTIVE
WORK BEHAVIOUR: DOES JOB DISSATISFACTION MATTER?
Kabiru Maitama Kuraa, Ramatu Abdulkareem Abubakarb
a
UTB School of Business, Universiti Teknologi Brunei, Brunei Darussalam
Email: kabiru.kura@utb.edu.bn
b
Distance Learning Center, Ahmadu Bello University. Samaru, Zaria, Nigeria
Email: ramatuabdulkareem@gmail.com
Abstract
Although a considerable amount of research has contributed to our understanding of the
underlying causes counterproductive work behaviour targeted against organisation and its
members, relatively, limited research has explored the antecedents of such unreasonable
behaviour directed towards a specific target. To address this knowledge gap, we tested job
dissatisfaction as a fundamental mechanism linking perceived workload to student-directed
counterproductive work behaviour. Participants were 239 faculty members at Nigerian higher
education institutions. Consistent with the extant research, results from partial least squares path
modeling analyses showed that perceived workload was significantly and positively related to
student-directed counterproductive work behaviour, regardless of age, gender, education, and
tenure. Further, the hypothesized indirect effect of perceived workload on student-directed
counterproductive work behaviour through job dissatisfaction is confirmed.
Keywords: Counterproductive Work Behaviour, Perceived Workload, Job Satisfaction
INTRODUCTION
Research indicates that counterproductive work behaviour (CWB) is costly to

organizations. For example, CWB has indirect costs to organisations, in terms of reduced
labour productivity (Bowling and Gruys, 2010, Johnson, 2009), lowered organizational
commitment (Gardner and Johnson, 2001), increased turnover (Namie, 2007), and
damaged organizations’ growth and profitability, among others (Lee and Ok, 2014). CWB
is largely studied according to whether such behaviour is targeted against employing
organisation, its members, or both (e.g., Henle et al., 2005, Arthur, 2011, Berry et al.,
2007, Lim, 2002, Shamsudin, 2003, Hastings and O’Neill, 2009, Hollinger and Clark,
1982, Salgado, 2002, Mulki et al., 2006).
While a considerable amount of research has contributed to our understanding
of the underlying causes of CWB targeted against organisation and directed against
individual internal to the organisation (i.e., co-workers, supervisors, and subordinates),
there is a paucity of research examining the antecedents of CWB that are specifically
tailored to the occupation, industry, organization or its stakeholder (s) under investigation.
However, notable exceptions are the study by Van Eerde and Peper (2008) and a recent
study conducted by Hunter and Penney (2014) The former considered the link between
attitude towards management, demographic characteristics (e.g. gender; education;
tenure), and deviant service behaviour among cinema employees. Whereas the later
examined emotion regulation strains as mediator between customer stressors and
customer-directed CWB among restaurant and bar employees.
9
Furthermore, empirical and anecdotal evidence also indicates that

counterproductive work behaviors directed at student (CWB-S), such as intimidating
students, sexual harassment and acting rudely or indicting frustration on students are
prevalence in the Nigerian tertiary institutions. Given this, the purpose of this study is to
contribute to the body of knowledge by examining the mediating role of job dissatisfaction
on the relationship between perceived workload and CWBS.
LITERATURE REVIEW
Conceptualization of counterproductive work behaviour
Although the deviant behaviour construct has gained a lot of momentum for
several decades now, literatures indicate a lack of agreement regarding not only the
terminology used, but also the definition offered of what is a similar construct (Robinson
and Bennett, 1997, Shamsudin, 2006). For example, researchers have assigned
different names to the CWB construct including, employees’ deviant behaviours (Everton
et al., 2007), antisocial behaviour (Giacalone and Greenberg, 1997), delinquency
(Hogan and Hogan, 1989), employee theft (Greenberg, 1990, Hollinger and Clark, 1982),
workplace sabotage (Analoui, 1995, Harris and Ogbonna, 2006), organizational revenge
(Bies et al., 1997), workplace incivility (Andersson and Pearson, 1999), workplace
aggression (Baron and Kenny, 1996), worker resistance (Thompson and Ackroyd, 1995),
and cyberloafing (Lim, 2002). Although different terminologies are used, using different
theoretical perspectives, organizational behaviour researchers apparently agree that
such behaviour could bring harm to both individuals and organization (Shamsudin et al.).
To understand the underlying causes of CWB, several factors have been
proposed as antecedents of deviant workplace behaviour. To date, some of the
organizational factors that have been studied in relation to deviant behaviour at work
include perceived organizational justice (Aquino et al., 1999, Colquitt et al., 2001, Near
and Miceli, 2013, Shao et al., 2013), perceived organizational support (O'Reilly and
Chatman, 1986, Ferris et al., 2009, Eder and Eisenberger, 2008), psychological contract
breach (Zhao et al., 2007, Bandura, 1982, Restubog et al., 2007, Jensen et al., 2010,
Bandura, 1977), and perceived organisational control (Kura et al., 2013). Despite the
empirical studies, literatures indicate that lack of studies on the link between perceived
workload and CWB-S. Hence, in the next section of the article we attempted to integrate
theory and prior research relevant to the link between perceived workload and CWB-S
towards hypothesis development.
Perceived workload and CWB-S
Quantitative workload has been defined as the amount of effort and attention,
both physical and mental that an employee must provide in order to attain a given level
of performance at work (Gartner and Murphy, 1979). Prior research has established
positive associations between perceived workload and various forms of CWBs (Tucker
et al., 2009). Specifically, Tucker et al. (2009) showed that soldiers who perceived their
workplace to be stressful in terms of increased work overload were more likely to commit
indiscipline. Miles, Borman, Spector, and Fox (2002) reported that workload correlates
positively with counterproductive work behaviour (r = .21), in the context of South Florida,
United States. Similarly, in a recent study, Fida et al. (2014) found that workload has a
positive correlation with counterproductive work behaviour among Italian working adults.
The empirical contributions, lead to the following hypothesis:
H1: Perceived workload will be positively related to CWB-S
10
Mediating role of job dissatisfaction
Job satisfaction, which represents employees' attitudes towards their jobs has
been broadly defined as “a pleasurable or positive emotional state resulting from the
appraisal of one’s job or job experiences” (Locke, 1976). From a conceptual point of view,
Mount, Ilies, and Johnson (2006) noted that individuals who have negative feelings
towards their job or job experiences are more likely to engage in deviant behaviour at
work. This conceptual argument is also supported by social exchange theory (Blau,
1964). According to social exchange theory, individuals who are less satisfied with their
jobs in terms of performance-based rewards, operating procedures relationship with
coworkers, nature of work, as well as communication are more likely to engage in deviant
behaviours at work. In line with the principle of social exchange theory, Nasir and Bashir
(2012) reported a significant positive relationship lower job satisfaction and workplace
deviance. These authors concluded that lower job satisfaction is a crucial factor
responsible for deviant acts among employees of different government organizations in
Pakistan. In a recent study, Alias, Rasdi, Ismail, and Abu-Samah (2013) reported a
significant and positive relationship between dissatisfaction workplace deviance
behaviour among 429 support personnel in Malaysian public service organizations.
Furthermore, social-cognitive theories (Ajzen, 1991, Ajzen, 1985) suggest that
that attitudes toward the job (e.g., job dissatisfaction) play an important role in the job
stress process. Because attitudes represent the immediate response to stressful
experiences, including perception of heavy workload (Holroyd and Lazarus, 1982, Lea
et al., 2012, Gidman, 2011, Cole et al., 2004). Given the theoretical and empirical
evidence for the role of stressful experiences (e.g., heavy workload) in activating job
dissatisfaction, as well as the positive link between job dissatisfaction and CWBs, it is
logical to argue that perceived workload may activate higher level of job dissatisfaction
due to its attitudinal and behavioural consequences, which in turn predicts CWB-S.
Therefore, the following hypothesis is advanced:
H2: Job dissatisfaction mediates the relationship between perceived workload and CWB-
S.
RESEARCH METHODOLOGY
Sample and statistical power
A convenience sample of 239 teaching faculty from large universities,

polytechnics, and colleges of education located on the north-west geo-political zone of
Nigeria were invited to participate in the study. Of the participants, the majority 167
(69.87%) were male, and 72 (30.13%) were female. With respect to age, most of the
participants 104 (43.51%) were aged between 41 and 50 years, 83 (34.73%) were
between the ages of 31 and 40 years, followed by 28 (11.72%) who were between 21
and 30 years, and the rest 24 (10.04%) were aged between 51 years and above. In terms
of educational qualification, the majority of the participants 166 (69.46%) hold a Master’s
Degree, 40 (16.74%) hold a Bachelor’s Degree, and the remaining 33 (13.81%) were
Doctorate Degree holders. Finally, with respect to job tenure, most of the participants 86
(35.98%) had worked in their present institutions for 11 years and above, 66 (27.62%)
had worked in their present institutions for 6 -10 years, and the rest 24 (10.04%) had
worked in their present institutions for less than 1 year. .
To determine the statistical power of this sample, a post hoc power analysis was
conducted using G*Power 3 software (Erdfelder et al., 1996, Faul et al., 2009). Using the
following input parameters: (effect size = .26; α err prob = .05; sample size = 239), the
post-hoc power analysis revealed a power value of 1.00. Hence, this suggests sufficient
power to minimize the probability of committing Type II error (Cohen, 1988).
11
Procedure
Consistent with prior studies on CWB (e.g., Penney and Spector, 2005, Spector
and Zhou, 2013, Hunter and Penney, 2014), we used self-administered questionnaires
to collect data for this study. Survey packages in a fullscap size envelope containing a
cover letter and questionnaire were distributed to the teaching faculty during their
departmental meetings. Specifically, during ‘any other business’ session of their
meetings, each Head of Department distributed the survey packages to his/her teaching
faculty and solicit their co-operation to voluntarily participate in the survey. Because the
participants are familiar with the ethics of social research, in each department, they
appointed a contact person who is not holding any management position to collect the
completed questionnaire in a sealed envelope for onward submission to the researcher.
Measures
Perceived workload. Perceived workload was assessed using a five-item

Quantitative Workload Inventory developed by Spector and Jex (1998). Specifically, this
measure assessed the difficulty and quantity of work required of an employee. Sample
items: "How often does your job require you to work very hard?", and "How often does
your job require you to work very fast?" Ratings were completed on a seven-point scale
(1 = Less than once per month or never to 7 = Several times per day).
Job dissatisfaction. To measure the construct of job dissatisfaction, we used a

five-item brief measure of job satisfaction from the work of Judge et al. (1998). Reverse
coding was completed on a seven-point scale (1 = Strongly disagree to 7 = Strongly
agree), so that higher scores represent higher level of job dissatisfaction among
participants. Sample items include: "I don't feel fairly well satisfied with my present job.",
and "I consider my job rather unpleasant."
CWB-S. To measure counterproductive work behaviour directed at student, we

adapted eight items from the work of Spector et al. (2006). Sample items included:
"Threatened students with a failed grade.", and "Said something offensive to students to
make them feel bad." Responses to the scale were completed on a seven-point scale (1
= Never to 7 = Every day).
Control variables. In addition to the key variables, four demographic variables

(age, gender, education, and tenure) were statistically controlled in the present study.
Age and tenure were measured as ordinal variables, coded using four-point scales (1 =
less than 1 year to 4 = 11 years and above) and (1= 21-30 years to 4 = 51 years and
above) respectively. Gender was measured as a categorical variable (1 = male; 2 =
female) and education was also treated as an ordinal variable, coded using a three-point
scale (1 = Bachelor’s Degree to 3 = Doctorate Degree).
DATA ANALYSIS
To address the issue of common method bias, we performed Harman's single

factor test prior to the main analyses (Podsakoff and Organ, 1986, Podsakoff et al., 2003).
In particular, all key variables’ items are subjected to a principal component factor
analysis and the results of the analysis suggest that 33% is explained by a single factor,
which is less than 50% cut-off point (Podsakoff and Organ, 1986). Hence, this suggests
that common method bias is not a major concern and is unlikely to inflate relationships
between variables measured in the present study.
12
We use partial least squares path modeling (Wold, 1985) with the SmartPLS 3 software
(Ringle, Wende, and Will 2005) to test our theoretical model. PLS path modeling is
considered particularly appropriate technique because it does lead to improper or
nonconvergent results (Henseler et al., 2009). Additionally, PLS path modeling is
particularly appropriate because the goal of the present study is to predict the
endogenous latent construct (CWB-S), as well as to maximize the explained variance
of the study’s key target construct (Hair et al., 2011). In the next section, we adopt a
two-step process to evaluate and report the PLS path modeling results. Firstly, we
evaluate and report the results of our measurement model (Henseler et al., 2009).
Secondly, we present and evaluate the results of our structural model.
Measurement model
The measurement model, also called an epistemic relationship or outer model

specifies the relationship between latent variables and indicators (Roldán and Sánchez-
Franco, 2012, Chin, 1998). In the context of PLS path modeling, a latent variable is
typically modeled with either reflective or formative indicators (see for example Becker
et al., 2012). In line with Jarvis’ et al. (2003) conceptual criteria for determining whether
a construct is formative or reflective, as well as the recent empirical studies (e.g., Fida et
al., 2014), all the three key latent variables in this study were modeled as reflective
construct. The adequacy of the reflective measurement model in terms of its reliability
and validity is determined by examining individual item reliabilities, internal consistency
reliabilities, convergent validity, and discriminant validity (Hulland, 1999, Henseler et al.,
2009). Tables 1 presents the results for the reflective measurement model.
Table 1: Measurement Model Results
Construct/Indicator Loading AVEa CRb
Counterproductive work behaviour .532 .814

SDD01 .864
SDD02 .837
SDD03 .621
SDD05 .544
Perceived workload .568 .831
PWL01 .406
PWL02 .857
PWL03 .829
PWL04 .827
Job dissatisfaction .761 .927
JDS01 .869
JDS02 .903
JDS03 .891
JDS04 .824
aAVE = Average variance extracted
bCR = Composite Reliability
13
As shown in Table 1, all the indicator loadings measuring the underlying latent
constructs are well higher than the minimum threshold value of .40 (Hair et al., 2014a).
Hence, this suggests acceptable indicator reliability in the reflective measurement model.
With respect to internal consistency reliabilities, the measurement model results indicate
that all the composite reliabilities in the reflective measurement model have exceeded
the minimum threshold value of .70 (Fornell and Larcker, 1981). Hence, the results
presented in Table 1 confirmed that internal consistency reliability for each for reflective
construct has been established. Furthermore, the average variance extracted for all
constructs in the reflective measurement model are well above the minimum threshold
of .50 (Fornell and Larcker, 1981), suggesting satisfactory convergent validity (Fornell
and Larcker, 1981). To established discriminant validity, we adopted Fornell-Larcker’s
(1981) criterion in this study. A satisfactory discriminant validity of the measurement is
established if the square root of AVE exceeded the correlation coefficient between latent
constructs (Fornell and Larcker, 1981). As shown in Table 2, the square root of the AVE
for each latent construct is well greater than the correlation coefficient between latent
constructs. Hence, an acceptable discriminant of the measurement has been established.
Table 2: Fornell-Larcker Criterion Results

Construct 1 2 3
1 Job dissatisfaction .872
2 Perceived workload .614 .754
3 Counterproductive work behaviour .478 .606 .729
Note. Elements shown in bold face represent the square root of average variance extracted. Off-
diagonal elements represent correlation coefficient among latent constructs.
Structural model
Following Klarner et al. (2013) and the recent work of Picón et al. (2014), we
evaluated two structural models to test our hypotheses: model with direct effect design
and indirect effect model. Furthermore, each structural model was evaluated using four
criteria: R2 of endogenous latent variables, effect size f2, prediction relevance Q2, and
estimates of the path coefficients (Henseler et al., 2009, Chin, 1998, Hair et al., 2014b).
Table 3 presents the R2 of endogenous latent variables, effect size f2, prediction
relevance Q2, and estimates of the path coefficients of the two models (direct and
indirect effect models). Figure 1 also describes the path coefficients, R2 values, and
prediction relevance of the two models under study. A standard bootstrapping with 5000
resamples produces point estimate and confidence intervals (Hair et al., 2014a).
14
Table 3: Direct effects of perceived workload on CWB-S (controlling for age, gender, education,
and tenure ).
Bootstrapping
Point
Relations BC 95% CI
Estimate
Lower Upper
Perceived Workload -> CWB-S .673 .618 .710
Age -> CWB-S -.060 -.165 .038
Gender -> CWB-S -.033 -.116 .053
Education -> CWB-S -.008 -.135 .112
Tenure -> CWB-S .120 .001 .242
Note—BC, bias corrected; R2 = .461; f2 = .836; Q2 = .225
As shown in Table 3 and Figure 1, the direct effect model explains 46.1% of the
total variance in CWB-S. Hence, the R2 value of .461 can be considered as moderate
(see Chin, 1998 for review). Table 3 also indicates that the effect size of perceived
workload on CWB-S was .836, and based on Cohen’s (1988) guideline, this effect size
can be considered as large. Regarding the prediction relevance of the direct effect model,
Table 3 and Figure 1 demonstrates Q2 value of .225, which suggests adequate prediction
relevance of the direct effect model (Henseler et al., 2009). With regard to the estimates
of the path coefficients, Chin (1998) suggests that for a path coefficient to be considered
meaningful, it should be at least .20 and preferably above .30. It could be recalled that
Hypothesis 1 stated that perceived workload will positively predict CWB-S. As can be
seen in Table 3, the positive effect of perceived workload on CWB-S was not significantly
different from zero, after controlling for age, gender, education, and tenure (Point
estimate = .673, 95% CI= .618, .710). Thus, it can be concluded that perceived workload
was significantly and positively related to CWB-S, thereby lending support for Hypothesis
1.
Having tested the direct effect model, we then assessed the indirect effect model,
which incorporates job dissatisfaction structural as a mediator variable. Figure 2 and
Table 4 showed the detailed results of the indirect effect PLS path model. As shown in
Figure 2 and Table 4, the coefficient of determination (R2) of the indirect effect model
were .377 and .379 for job dissatisfaction and SD-CWB, respectively. This demonstrates
that the indirect effect model explains 37.7% and 37.9% of the total variances in
dissatisfaction and CWB-S, respectively, as such these R2 values of .374 and .381 can
be considered as moderate following Chin’s (1998) benchmark for assessing coefficient
of determination. Additionally, Table 4 showed that the direct effect size of perceived
workload on CWB-S was .604 and can be considered as large (Cohen, 1988). Table 4
and Figure 2 further showed that the Q2 value for the indirect effect model was .186,
which indicates sufficient prediction relevance (Henseler et al., 2009). In terms of
significant of the path coefficients, the indirect effect model showed a path coefficients
of .502, which has exceeded Chin’s (1998) minimum benchmark of .20.
15
Table 4: Indirect effects of perceived workload on CWB-S through job dissatisfaction

(controlling for age, gender, education, and tenure ).
Bootstrapping
Point BC 95% CI
Relations
Estimate
Lower Upper
Perceived Workload -> CWB-S .502 .385 .592
Age -> CWB-S -.062 -.173 .046
Gender -> CWB-S -.027 -.111 .066
Education -> CWB-S -.050 -.192 .085
Tenure -> CWB-S .098 -.038 .227
Furthermore, to generate the point estimate and confidence intervals, we also

applied a standard bootstrapping with 5000 resamples for the indirect effect model (Hair
et al., 2014a). Hypothesis 2 predicted that Job dissatisfaction mediates the relationship
between perceived workload and CWB-S. As shown in Table 4, the indirect effect of
perceived workload on CWB-S via job dissatisfaction was significant even after
controlling for age, gender, education, and tenure (Point estimate = .502, 95% CI= .385,
.592). Additionally, after controlling for age, gender, education, and tenure, the effects of
perceived workload on CWB-S remains significant, but, with a difference of.171, which
is significantly lower than when organizational trust was not incorporated, even after
controlling for age, tenure, gender and ethnicity (Table 4; point estimate = .673, 95% CI=
.618, .710).). Hence, job dissatisfaction mediates the relationship between perceived
workload and CWB-S, after controlling for age, gender, education, and tenure, lending
support for Hypothesis 2.
Control variables:
• Age
• Gender
• Education
• Tenure
Perceived
workload CWB-S
.673** R2 = .461
Q2 = .225
Figure 1: Model with direct effect
16
Control variables:
• Age
• Gender
Job • Education
dissatisfaction • Tenure
.614**
.170**
Perceived
workload CWB-S
.502**
R2 = .381
Q2 = .186
Figure 2: Indirect effect model
DISCUSSION
The purpose of this study was to replicate and extend previous research linking
perceived workload to counterproductive work behaviour. The results of this study
replicated previous research by demonstrating that perceived workload is positively
related to counterproductive work behaviour in Nigerian context. Most importantly, this
study has extended previous research by establishing that job dissatisfaction mediated
the relationship between perceived workload and counterproductive work behaviour.
These findings are particularly interesting for the following reasons. Firstly, as noted at
the outset, previous research has established a robust positive association between
perceptions of workload and various forms of CWBs (Miles et al., 2002). Hence, the
present study provides preliminary support for the generalizability of prior studies linking
the perceptions of workload to CWB, which were mostly conducted in western contexts,
such as United States, Italy, and Germany (Fida et al., 2014, Tucker et al., 2009, Miles
et al., 2002). Secondly, the present study proposed that a key psychological process
through which perceived workload affect counterproductive work behaviour is the job
dissatisfaction. The structural model tested suggests that an employee’s perception of
workload affects CWB by influencing job dissatisfaction, which in turn prompts
employees to reciprocate by exhibiting counterproductive work behaviour.
While our findings are consistent with theories and empirical research, however,
we cannot rule out plausible alternative explanations for our results. For instance,
perceived workload, which is one component of work stressor could have reciprocal
effects on job dissatisfaction (Budd et al., 1996). In the same vein, Meier and Spector
(2013) recently tested the possibility of a reciprocal effects of work stressors on CWB
and found that "work stressors are significantly and prospectively related to CWB and
that conversely CWB is prospectively and positively related to work stressors" (p. 529).
A consideration for future research is to propose and validate a model describing the
mediating effect of job related attitudes on the reciprocal relationship between work
stressors and counterproductive work behaviour.
17
Practical implications
The present study has implications for management of higher education

institutions. Firstly, understanding the underlying causes of counterproductive work
behaviour is an important starting point for the development of effective interventions for
reducing the prevalence of CWB-S. For example, “consideration of justice, autonomy,
and employees’ feelings needs to be included in the design of jobs and human resource
systems—not because it is the nice thing to do, but because of its ramifications in the
kinds of behaviors that, even in covert or subtle ways, may do serious harm to the
organization and its members” (Fox et al., 2001, p. 306). Secondly, given that job
dissatisfaction has been associated with an increased counterproductive work behaviour
(Blau, 1964, Nasir and Bashir, 2012, Rashid et al., 2012, Mount et al., 2006),
management of higher education institutions should map out intervention strategies
toward increasing faculty members’ job satisfaction in order decrease the perception of
workload and CWB-S. Specifically, this can be achieved by providing training and
development on stress management, clear job descriptions, and better organizational
and job design (Hang-yue et al., 2005).
Limitations
The present study is not without its limitations that need to be acknowledged.
Firstly, the participants in this study were mainly faculty members at a large university
located in the north-west geopolitical zone of Nigeria. Accordingly, the extent to which
they represent the entire university or higher education institutions in general, can only
be determined by reference to other staff members. Future studies should replicate this
study by including non-faculty members and other staff of the higher education
institutions, including polytechnics, monotechnics and colleges of education. Secondly,
self-report measures were used to assess counterproductive work behaviour. Many
researchers (e.g., Podsakoff et al., 2003, Podsakoff et al., 2012, Podsakoff and Organ,
1986) agreed that The use of self-report is associated with common method variance in
behavioral research. We do believe, however, that ensuring anonymity of the participants
and the use of a well-established scale to measure counterproductive work behaviour
might have minimized the tendency of the participants to under-reported their
counterproductive acts against students. In addition to the current efforts described
above, another fruitful area for future research is to replicate our study by relying on a
non-self-report measure of counterproductive work behaviour (Stewart et al., 2009).
Conclusion
In conclusion, the results of the present study replicate and extend the results of
prior empirical studies by enhancing our understanding of how perceived workload affect
counterproductive work behaviour. In this study, it was confirmed that job dissatisfaction
mediated the relationship between perceived workload and counterproductive work
behaviour.
18
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22
SERVANT LEADERSHIP AND JOB PERFORMANCE OF

MALAYSIAN PUBLIC UNIVERSITIES’ LEADERS MEDIATED BY
WORKING ENVIRONMENT: A CONCEPTUAL PAPER
Sharfika Raime 1a, Raemah Abdullah Hashim 2b, Norsafriman Abd Rahman 3c
a
Faculty of Business, Technology and Accounting, UNITAR International University,
Malaysia
Email: sharfika@unitar.my
b
Faculty of Business and Management, OPEN University, Malaysia
Email: raemah_abdullahhashim@oum.edu.my
c
Faculty of Business, Technology and Accounting, UNITAR International University,
Malaysia
Email: safriman@unitar.my
Abstract
This is a conceptual paper to study the relationship between servant leadership and public
universities’ leaders’ job performance in Malaysia. This conceptual paper was derived based on
the critical review of related and important journal articles, conference proceedings and other
literature which are pertinent to the discussion. The aim of this study is to provide a
conceptualised understanding on the significance of leaders’ action and behaviour to the
attainment of organisational goals, specifically the Malaysian public universities. This paper is
limited to conceptualisation discussion of leadership style and leaders’ job performance mediated
by working environment. Nonetheless, this paper is expected to provide a useful discussion in
identifying leaders’ quality via the proposed of new developed research model. In addition, this
proposed research model is anticipated to offer merits towards the leadership literature review
especially in the higher education. This paper can also be a resource to help researchers in
preparing their future research.
Keywords: Servant Leadership, Job Performance, Working Environment, Universities’ Leaders
INTRODUCTION
The demand for tertiary education is recently reported to be encouraging which

leads many universities to furiously compete to achieve academic excellent and to be
ranked as top universities in the world university ranking (Qi, Ying, & Nian, 2013;
Rodionov, Rudskaia, & Kushneva, 2014; Yeoh, 2016). According to Rodionov et al.
(2014) a university that is well positioned in world ranking is recognised as a world class
university and this shows its excellent quality and deemed to be more competitive in the
education realm.
This is no exception to Malaysian universities as they are urged by the
government to be well placed in the world ranking and be competitive since Malaysia is
aiming to become world’s education hub with an increase in the total number of foreign
students to 200,000 by year 2020 (Yeoh, 2016; Zainal Abidin, 2017).
Sharpe (2014) argued that one of the elements to become a world class
university is to have good leadership. This argument is well supported by others that they
have also asserted that becoming a world class university is highly reliant on the
performance of its university’s leaders (Lim, 2017; Hunter, 2016; Rodionov et al., 2014).
However, news headlines associated to problem with Malaysian public universities’
leaders have been receiving a prevalent coverage for these past few years.
23
LITERATURE REVIEW
Problem Statement
Recently, there have been numerous news on Malaysian public universities leaders. The
overwhelming numbers of coverage in the news on these leaders mainly highlighting
how these public universities’ leaders have directly or indirectly contributing to problems
pertaining to public universities in Malaysia such as poor overall performance of these
universities (Chan, 2017; Lim, 2017; Hunter, 2016; Sani, 2017; Wan Jan, 2016). The
inability of the Malaysian public universities to be listed as the top 100 universities world
ranking i.e., QS World University Ranking (Hunter, 2016), Times Higher Education (THE)
University Ranking, (“Rankings of universities in Malaysia,” n.d.), Academic Ranking of
World Universities (“Academic ranking of World Universities,” 2017) and in first Asia-
Pacific ranking (Jalil, 2017) proved the situation. It is deemed by many researchers that
universities’ poor performance have always been associated with the poor leadership
problem (Lim, 2017; Hunter, 2016; Rodionov et al., 2014).
According to Yeoh (2016), in order to be listed in the universities world ranking and be
the choice destination for education, Malaysian universities need leaders with effective
leading behaviour since universities’ overall performance is highly reliant on the leaders’
performance (Lim, 2017; Hunter, 2016; Rodionov et al., 2014). The poor results in the
world university ranking proved the discouraging performance of Malaysian public
universities that caused by the leadership problem (Chan, 2017; Hunter, 2016; Jalil, 2017;
Lim, 2017; Sani, 2017; Sirat et al., 2012 & Wan Jan, 2016). Even though the leadership
problem in Malaysian’s public universities persist for years (Chan, 2017; Lim, 2017; Sani,
2017; Hunter, 2016; Wan Jan, 2016; Sirat, Ahmad, & Azman, 2012; Stefani, 2015), this
topic is reported to be an under-researched topic (Bryman, 2007; Gmelch, 2004; Hashim,
Abdul Rahman, Mohd Tahir, Daud & Abd. Latif, 2012; Nasir, Nordin, Abu Seman, &
Rahmat, 2014; Stefani, 2015).
Hence, the purpose of this paper is to review literature which focuses on Malaysian public
universities’ leadership issues and problems related to it. It is also to discuss the
importance of leaders’ performance, especially in higher education towards the
universities’ performance. It gives an overview of the past, present and future shifts in
this context.
Malaysian Public Universities’ Performance
Most Malaysian universities including the local public universities reportedly have
shown unpromising performance (Chan, 2017; Firdaws, 2017; Hunter, 2016; Jalil, 2017;
Melissa, 2017; Sparks, 2017). The fact is based on the universities incapability to be
listed among the top 100 universities in the Times Higher Education (THE) University
World Ranking QS World University Rankings and Academic Ranking of World
Universities hence showing the poor state of Malaysia’s education system is more
alarming and disturbing than the country’s public debt (Hunter, 2016; Lee, 2017; Sparks,
2017; “Academic ranking of World Universities,” 2017; “Rankings of universities in
Malaysia,” n.d.)
The progress of the displayed result in QS ranking for years between 2015 and 2018 is
criticised to be insufficient in proving its academic reputation (Sparks, 2017). Even
though there are five (5) of Malaysian universities are listed in the top 200 of the Time
Higher Education (THE) best Asia Pacific schools’ list via their good performance in term
of international outlook (staff, students and research), but when it comes to research
quality, most Malaysian universities showed a very poor performance. This is proven by
the low score for research citation (Sparks, 2017). As proclaimed by the QS ranking
profiles, Malaysian universities have lost its significant ground in academic reputation
24
and tend to show inept performance in research wise (Hunter, 2016; Sparks, 2017).
Therefore, the poor performance especially in terms of research citations has created
the urge for Malaysian universities to do better in research quality in order to improve
their standings not only in the Asia Pacific region but worldwide (Lee, 2017; Sparks,
2017).
In the Times Higher Education (THE) World University Ranking for 2018, none of the
Malaysian universities made it to top 300 which supported the fact that Malaysian
universities have not performing well (Lee, 2017; “World University Rankings 2018,”
2018). University Malaya for instance has shown no improvement from last year’s record
due to its permanent position between the range of 351 – 400. (“More Malaysian
universities make it to the Times Higher Education (THE) World University Rankings
2016-17,” 2016; “World University Rankings 2018,” 2018). Similarly to the Academic
Ranking of World Universities (ARWU), University Malaya has showed no improvement
from the previous year (“Rankings of universities in Malaysia,” n.d.). Besides THE and
ARWU, in the other well-known global university ranking like the US News and World
Report’s Best Global University Rankings, Malaysian universities are reported to be
ranked outside the top 300 (Lee, 2017).
Lee (2017) asserted, even though there are five (5) Malaysian public universities that
have shown improvement in their performance in the QS World University Rankings
2018, the decision to solely depends on it as a performance benchmark for Malaysian
universities is considered as imprecise and short-sighted. It is further elaborated in Lee
& Ong (2017), decision to use QS ranking to prove improvement on Malaysian public
universities’ performance, especially in term of research is considered as unwise or
foolish. This is because, the QS rankings only allocate very small percentage for
research output and citation from its overall score as compared to other global university
rankings like THE and ARWU. The QS ranking limits its measurement for research and
citation up to 20% only. The THE on the other hand has allocated 60% for its research
and citation. The Shanghai AWRU meanwhile put 70% and the US News ranking is
allocating 75% just for its research and citation measurement (Lee, 2017).
Besides, the level of performance in term of research quality and producing skilled
graduates with higher rates of employability have slowed down and deteriorated. As a
result, the local public universities have become less competent and less attractive
which ultimately lead to financial unsustainability and losing the plot in the university
world ranking (Abu Bakar, 2017; Qi et al., 2013; Sharpe, 2014; Sparks, 2017; Yeoh, 2016;
Zainal Abidin, 2017).
Job Performance of the Universities’ Leaders
In order for universities to achieve world class title, universities should not just
focus on achieving the desired number of students (Sharpe, 2014). It is argued that the
effectiveness of universities in becoming a high performing universities is highly
contingent on its governing system as well (Lim, 2017; Hunter, 2016; Rodionov et al.,
2014). Hunter (2016) claimed that Malaysian public universities’ poor performance is
mainly due to its leadership problem. The fact is supported by other scholars
commenting that most universities’ leaders have been practicing autocratic behaviour
and tend to be more concerned on self-glorification instead of being a facilitator for their
people to excel (Chan, 2017; Lim, 2017; Sirat et al., 2012).
Despite of the reported high budget usage, Malaysian public universities have shown a
mediocre performance level and not up to the standard (Chan, 2017; Hunter, 2016; Lim,
2017; Sparks, 2017). Supported by Chew (2017), Firdaws (2017) and Melissa (2017),
Malaysian public universities is still very far in reaching the standards and quality of
international higher institutions of learning than other countries that are ranked among
25
the best in the world. The main cause of this problem is due the poor performance of
the universities’ leaders who refuse to adopt change management and persist with the
old fashioned governing style (Chan, 2017; Lim, 2017; Hunter, 2016).
Fund mismanagement cases do not seem isolated now as universities’ leaders are
reported to have been indulging themselves with unnecessary expenses, attending
unnecessary events or ceremonies as well as making lavish trips. The expensive trips,
domestically and internationally, have not been thoroughly evaluated, except for MOUs
that have never acted upon (Hunter, 2016). The utilisation of most research grant that
was initially conceded to conduct a research is also questionable since most Malaysian
universities have been criticised as very weak in research output and quality (Hunter,
2016). This precede to the inability of the universities to be in the top 100 of the university
world ranking i.e. the QS World ranking profiles (Hunter, 2016; Sparks, 2017) and begun
to lose its plot and identity hence tarnishing its overall performance. Besides, the
unethical conduct committed by the universities’ leaders is also reported to have
contributed mockery of the academia (Hunter, 2016).
Other than the issue of misusing universities’ fund, the performance of Malaysian public
universities is also affected by the universities’ leaders’ corrupt practices. It is reported
that some consultancy companies that provide services for a university are owned by
the university’s dean or the deputy deans itself. On top of that, there are cases heard
about under table money asked by examiners. Many students have complained that
there are few examiners at master and PhD level, appointed by their supervisors
requested for payment in order to pass (Chan, 2017; Lim, 2017; Hunter, 2016). In
addition, some of universities’ academicians are reported to have a tendency to pay for
their articles to be published in academic journals without undergoing the peer review
process. Citation stacking and stolen research work are also another issues that is no
longer strange happening in universities nowadays. These unethical conduct is reported
to be encouraged by the universities’ leaders itself and has been criticised to lead to
deterioration of the universities’ quality and performance (Melissa, 2017). This practise
has caused Malaysian public universities to lose its plot and begun losing its identity
(Hunter, 2016).
All the reported situations worsened due to the absence of the academic freedom and
universities’ leaders nowadays are reported to be very domineering (Hunter, 2016; Lim,
2017; Wan Abdul Manan, 2008). The domineering behaviour has caused their own
faculty and other university’s members are afraid of their leaders and become reluctant
in saying or whistle-blowing on their peers and especially their leaders (Hunter, 2016;
Wan Abdul Manan, 2008). The domineering behaviour complemented with power
distance culture has also contributed to the leadership problem since staffs possess
limited chance to share ideas and tend to be reserved as their opinions for disagreement
received very low opportunities for any action to be taken (Lim, 2017; Hunter, 2016; Wan
Abdul Manan, 2008). This situation is believed to have negative impacts towards the
performance of the university as a whole (Lim, 2017; Hunter, 2016; Rodionov et al., 2014;
Sirat et al., 2012)
Universities’ leaders these days are also criticised to have failed in proving their presence
are significant in their respective universities (Lim, 2017; Sani, 2017). This is especially
true in term of achieving the universities’ financial sustainability. They added that most
public universities’ leaders are just acting like glorified clerks counting the number of
students and other administrative stuffs in excel sheets. Sani (2017) claimed that
Malaysian public universities are lacking leaders with high competencies level who is
able to work on a limited budget while meeting the higher education plan target.
Servant Leadership in Higher Education Institution Context
26
Servant leadership was first introduced by Robert K. Greenleaf in year 1977 (Kim,
Kim, & Choi, 2014). Greenleaf (as cited in Pearson, 2013, p.13) defines servant
leadership as “the natural feeling that one has of desiring to serve others. It seeks to
develop individuals who ensure that others’ needs are met and advocates a group-
oriented approach to decision-making as a means of strengthening institutions and
society”. Senge (1995) on the other hand, defined servant leadership as a leadership
that is grounded on the democratic principle. Servant leadership placed all humans'
belief in dignity and the power of leader stems from subordinates. This allow members
of organisation to voluntarily participate in performing tasks within the department and
promote their learning (Kim et al., 2014). Times are changing and so does people’s
views on leadership behaviour (Dierendonck, 2011). In view of the current demand for
more ethical, bottom-up governance and people-oriented management, leadership
inspired by the ideas from servant leadership theory may very well suits most of the 21st
century organisations’ needs (Dierendonck, 2011).
Although there is still lack of studies done to see the relationship between servant
leadership and university leaders’ performance, servant leadership is reported to be the
promising leadership approach for the higher education sector (Ricky, 2016). According
to Ricky (2016), servant leadership is considered as a service-oriented leadership which
can drive the followers especially from the sector of higher education in dealing with the
sector’s challenges, in a most creative and effective way. Additionally, servant
leadership is posited as a leadership style that is able to create a sustainable culture.
This is because servant leadership values integrity as well as professionalism (Allen et
al., 2016). Integrity and professionalism are cited as two important elements that are
critically needed by universities is order for them to sustain and stay prosper in this
competitive era (Allen et al., 2016; Ricky, 2016).
A university that is navigated by a good leader plays an important role in ensuring great
performance of a university. When a university is in a great performance and start to
produce high quality research, it will eventually assist the university to be at the top rank
of the university world ranking list (Hunter, 2016; Rodionov et al., 2014). A university
that has the potential to produce high quality research output depends on the university’s
leader itself in the effort of making the university internationally competitive (Lim, 2017;
Hunter, 2016; Rodionov et al., 2014).
According to Allen et al. (2016), the theory of servant leadership resembles other
leadership theories. Servant leaders share power, put the needs of others first, help
individuals develop which eventually optimise performance. Servant leaders are also
willing to learn from others and let go of their own personal advancement and rewards.
Moreover, servant leaders will concentrate more on performance planning, day-to-day
coaching as well as helping others to achieve their goals. Leaders who practice servant
leadership normally will deliver a clear and concrete vision which enables it to be easily
understood by their team in achieving the desired outcomes. The ultimate responsibility
of the servant leader is the enduring investment of the leader’s life in the lives of those
who follow (Allen et al., 2016).
Common features of academic institutions are academic freedom, scholarship, lifelong

learning, shared governance and teaching, which is reported to align perfectly with
servant leadership (Allen et al., 2016; Ricky, 2016). Leaders who seek power do not
truly develop others, and power must be shared in order to succeed. Servant leadership
makes shared governance feasible and less formidable (Allen et al., 2016).
Servant Leadership and Job Performance
As addressed by Kaul (2014), today’s world is filled with egoistic leaders who
are perceived as very individualistic and very much driven by selfish ambitions which can
27
cause harmful to the societies. The societies in the 21st century meanwhile is reported
to be more complex hence needs to be controlled with effective systems and processes
which are deemed to only be effective when there is an effective leadership. Kaul (2014)
added that, the effective leadership that is needed the most by organisations and
employees are servant leaders. This is because, servant leaders are considered one of
a kind that possess heart with great sense of humility and love. Servant leaders hence
deemed to be able to provide society with better place and restore people’s hope in the
future (Kaul, 2014).
Additionally, servant leadership is needed as people and process are said to be crucial
than the tasks in helping organisation to accomplish its goals, achieve higher profit and
productivity (Clarke et al., 2015; Kaul, 2014). This is proven by thousands of employees
that have been demonstrating good improvement in their performance by 15 – 20% with
the existence of servant leadership. Kaul (2014) hence concluded that servant
leadership is the best and effective leadership style to run an organisation. Besides,
thorough literatures review by Sougui et al., (2016) on servant leadership has also
brought to a finding that servant leadership is an effective leadership style than other
leadership styles to run the organisations. Sougui et al., (2016) reported that most
findings from their literature review shown there is a significant relationship between
servant leadership and organisation performance. Besides, they also found that leaders
that practice servant leadership have been able to increase and improve their
organisational performance.
Servant leadership, besides considering it as an effective leadership style to run an

organisation, it is also a leadership style that can enhance ones’ performance within an
organisation (Harwiki, 2016; Harwiki, 2013; Koesmono, 2014; Sun, 2016). This is proven
when servant leadership is reported to have significant relationship with employees’
innovation performance (Sun, 2016), lecturers’ job performance (Koesmono, 2014),
presidential social performance (Tourigny, 2001) and telecommunication employees’
performance (Abdulahi Ali, Elmi & Mohamed, 2013).
Sun (2016) research in investigating the relationship between servant leadership and
employees’ innovation performance has proven that there is a significant positive
relationship between servant leadership and employees’ innovation performance.
According to Sun (2016), employees lead by a servant leaders are open to self-
development opportunities since servant leaders are believed to care on employees’
growth and development. Ones’ ability in obtaining high innovation performance is
crucial to organisational performance, since human resources is considered as one of
important elements in achieving organisation’s success and sustainability. The fact is
highly supported by the human resource-based theory formulated by Paauwe, 1988
(Koch & Kok, 1999).
Stefánsdóttir (2013) research aimed in identifying whether the presence of servant

leadership will improve or hinder organisational performance. Data was collected from
Icelandic healthcare organisations within two different periods to oversee the differences
in results. Results obtained show that organisational performance is better and improved
in the period when servant leadership was in practised.
Hale (2016) findings on the other hand shows that an organisation’s leaders that exercise
servant leadership has direct and positive relationship with employees’ performance.
The positive relationship between servant leadership and employees’ performance
subsequently improved the overall performance of the organisations not just in term of
profits but also employees’ satisfaction and trust. Hale (2016) findings supported and
strengthen by other researchers like Otero-Neira et al. (2016). Otero-Neira et al. (2016)
study on the relationship between sales managers’ behaviour and performance showed
that sales managers with servant leadership behaviour have relationship with
28
performance. Nevertheless, the existing relationship is reported to be indirect since the

relationship is mediated by another variable known as perceived organisational support
(POS).
Working Environment
Working environment as posited by Clarke, Kenny and Loxley (2015) plays an

important role in organisations. As one of an important elements within organisations,
working environment hence can influence the organisations’ level of productivity (Awan
& Tahir, 2015). On top of that, most problems faced by employees at work are reported
to be associated to their working environment (Awan & Tahir, 2015).
According to Chandra and Priyono (2016), working environment is the setting where the
employees perform their daily work. They added that it is anything or any condition that
revolves around the employees and provide impact towards their performance.
Employees are deemed to show positive attitude towards work (Chandra & Priyono,
2016), have greater level of engagement, innovation, creativity, competitive, loyalty
(Samson, Waiganjo, & Koima, 2015) and are also able to work towards achieving
companies’ goals when they are exposed to good working environment (Chandra &
Priyono, 2016; Samson et al., 2015). Moreover, working environment is also perceived
as the immediate surrounding to fulfil employees’ intrinsic, extrinsic, social need and one
of the key determinants for them to stay in the organisations. This eventually helps the
organisations to improve its overall performance which precede to sustainability from the
higher profits earned (Samson et al., 2015).
Working Environment as Mediator
Yumte, Rante, Ronsumbre and Ratang (2017) have managed to show the
importance of servant leadership in the effort of obtaining higher employees’
performance through their literature review. Nevertheless, from their own research
findings they have identified that there is another important determinant to explain the
existence relationship between these two variables, namely organisational culture. Their
research was conducted among the employees’ from Mimika District Hospital in Papua
Province to see the relationship between servant leadership and employees’
performance. Results shown that there is an existence relationship between servant
leadership and Mimika District Hospital’s employees’ performance, but it is somehow
indirect. The indirect relationship is explained by the association between servant
leadership and organisational culture; then organisational culture and employees’
performance. Hence, it was concluded that organisational culture mediates the
relationship between servant leadership and employees’ performance (Yumte et al.,
2017).
The inconsistency conclusion on the relationship between servant leadership and job
performance are much in line with the same idea previously reported by Zehir et al.
(2013). The research was conducted to confirm the relationship between servant
leadership and performance involving 300 employees from private education institution
in Tukey. Results from regression revealed that a positive relationship does not exist
between servant leadership and job performance, and it is also non-significant.
Nonetheless, when the two variables were regressed together with the intermediate
factor namely organisational justice, the relationship become positive (Zehir et al., 2013).
As posited by Ward and Duray (2000), the effect of working environment as a key
contingency factor is no longer isolated and has been documented ages ago in both
empirical and conceptual research. Working environment is also reported to have been
adopted as moderator by many researchers (Bitmis and Ergenelİ, 2012; Ensley et al.,
2005; Furtado et al., 2015; Hamzah et al., 2013; Hao et al., 2011) in identifying its effect
29
on the relationship between ones’ attributes and performance, but not as mediator
(Mesterova et al., 2015; Trivellas & Reklitis, 2014). Due to the less studies done adopting
working environment as mediator, there is recommendation for future research to
examine the relationship between leadership attribute and performance via working
environment (Mesterova et al., 2015; Trivellas & Reklitis, 2014). Furthermore, adopting
working environment as a mediator is hopefully can provide understanding on how does
working environment links the causal interaction effect between the independent
variables and dependent variable (Wu & Zumbo, 2008). In this case, the main purpose
is to understand the interaction between independent variables (servant leadership) and
the dependent variable (job performance).
Most industries have been criticised to display unsafe and unhealthy working
environment which are not limited to poor design of workstations, unsuitable furniture,
unhygienic ambiance (Rorong, 2016) and stressful environment (Adewale & Abdulsalam,
2017). Employees who are exposed to the unhealthy working environment are reported
to have higher chances to fall ill which eventually affect their behaviour and performance
at work (Rorong, 2016). Studies on lecturers at the Nigeria’s higher institutions for
example have shown that unconducive working environment that is due to stressful
situation has resorted to lower job satisfaction among the lecturers hence lead to poor
working performance (Adewale & Abdulsalam, 2017). Besides, research done on
psychological safety in term of mutual respect as the mediator between the relationship
of servant leadership and employees’ voice behaviour (performance) has revealed that
mutual respect does mediate the relationship between servant leadership and
employees’ voice behaviour (Yan & Xiao, 2016).
In Linuesa-langreo et al. (2017), a research was done to explain the relationship between
servant leadership and job performance via supportive service climate (rewards).
Results from the data analysis have shown that when servant leadership was directly
regressed to employees’ performance, it revealed significant relationship between these
two variables. Nevertheless, when supportive service climate came in between these
two variables, the relationship between servant leadership and employees’ performance
becomes weaker. Results obtained revealed that supportive service climate does
mediate the relationship between servant leadership and employees’ job performance
by showing direct-positive relationship with servant leadership as well as with employees’
customer service performance (Linuesa-langreo et al., 2017). The supportive service
climate hence explained the relationship between servant leadership and job
performance of the employees.
Another study done that involves working environment as mediator between servant
leadership and performance was by Awan et al. (2012). Their research was conducted
among the Pakistani employees that serve for the governmental sector. Research was
conducted to explain the relationship between servant leadership and employees’
performance through employees’ intrinsic motivation. The operational definition of
employees’ intrinsic motivation in this research is referring to the intangible motivation
via encouraging working environment created by employees’ leaders (Awan et al., 2012).
Analysis of the data shown that employees’ intrinsic motivation fully mediates the
relationship between servant leadership and employees’ work performance. Results
from this research were aligned to the facts claimed by Chandra and Priyono (2016);
Samson et al. (2015) where employees will show positive working attitude (job
performance) if surrounded by conducive working environment.
Vigoda-gadot (2007) on the other hand was aiming to explain the relationship between
leadership styles and employees’ job performance in the public sector via workplace
politics. The definition of workplace politics adopted by Vigoda-gadot (2007) brought the
meaning of trust and fairness within an organisation that will affect ones’ job performance.
First regression result revealed a direct relationship between leadership style and
30
employees’ performance. However, the second regression involving model with

mediation factor also meets the theoretical requirements, that is, the relationship
between servant leadership and performance has not only a main direct effect but also
an additional mediating side effect. Vigoda-gadot (2007) mediating model is found
consistent with Organ’s (1988) who recommended that individuals who believe that the
organisation is managed fairly, they will be willingly to improve their formal performance
(as cited in Vigoda-gadot, 2007). Moreover, Vigoda-gadot (2007) findings are also
reported to be aligned to earlier proclamation by Ferris and Rowland (1981) that
perceptions of the workplace mediate the relationship between leadership style and
performance (as cited in Vigoda-gadot, 2007).
The research methodology that has been adopted for this conceptual paper is collecting
the secondary data. The secondary data is obtained mostly from online sources like
journal articles, published books, academic and professional journals and not limited to
other online resources (Chan et al., 2014; Chew et al., 2015). The advantage of using
online databases is, it is time and cost efficient since the data can conveniently be
assessed at anytime and anywhere. Additionally, secondary data can be very useful in
having a better and clearer understanding of the study, especially the research problem
(Chan et al., 2014; Chew et al., 2015). Despite the benefits, thorough information
reviewing, checking and filtering is still needed before the information can be used and
adopted for the research.
For this conceptual paper, all data and information were collected from the past
published articles or the literature review from various database such as Google Scholar,
ProQuest, Google, Emerald insight and reference list from key studies to find information
relevant to this topic. Approximately more than 100 documents were reviewed with only
73 being used in the final literature review. Articles that are published between 2002 up
to 2018 like journals, conference proceedings, students’ thesis were included to provide
background and support information about the research topic. Newspaper articles were
also reviewed and included to identify the current condition and issues that are related
to Malaysian public universities and its leaders. The reference lists of key articles were
also searched and googled to provide additional support on several discussions
throughout the paper.
To assist researcher in finding information that are relevant to the topic, the following key
words were searched: servant leadership; working environment; job performance;
leaders’ job performance; leaders’ job performance and universities’ performance; job
performance of universities’ leaders; servant leadership and leaders’ job performance;
servant leadership and job performance; working environment and job performance.
CONCLUSION AND DISCUSSION
The Underpinning Theory
The proposed research framework illustrated in Figure 1.0 for this research is a result of
meticulous study on literature review. It shows the relationship between the independent
variables (servant leadership) and the dependent variable (job performance), mediated
by working environment. The research framework was constructed with the support of
related underpinning theories namely Human Resource Based Theory and Contingency
Theory. The view of universities’ leaders’ performance and its impact on universities’
overall performance is supported by the Human Resource Based Theory. This theory
31
supports the view that universities’ leaders (resources) are believed as the most
resourceful asset within the organisation. Additionally, Human Resource Based Theory
represents the idea that universities’ leaders (resources) with servant leadership style,
will bring significant impact on their job performance as universities’ leaders.
Contingency Theory, on the other hand supports the unique leadership behaviour
(servant leadership) to respond to obstacles, challenges and turmoil universities’ leaders
are facing now due to the challenging and ever changing working environment.
Proposed Research Framework
Independent Dependent
Mediator
Variables Variable
Working Environment
Job Performance of
Universities’
Servant Leadership Leaders
Figure 1.0: Research Framework
Discussion, Limitation and Recommendation for Future Studies
The modern definition of leader that is widely operationalised today is someone

that perceive people as a unit of production or the significant resources in their
organisation’s profit and loss statement (Zehir et al., 2013). Servant leadership
meanwhile is look up as an effective leadership style that focuses on meeting followers’
needs which inclusive of assisting them in reaching their maximum potential that
consequently help employees in achieving their highest performance (Zehir et al., 2013).
Although servant leadership is reported to receive optimum coverage and deemed as an
effective leadership style, it is somehow remain as a topic that has not been
comprehensively researched and is highly recommended for in-depth studies (Kaul,
2014; Stefánsdóttir, 2013).
Additionally, this paper has adopted researches on the relationship between servant
leadership and job performance that are mostly from countries other than Malaysia like
Ireland (Clarke et al., 2015), Indonesia (Harwiki, 2016; Harwiki, 2013; Koesmono, 2014),
India (Kaul, 2014), China (Sun, 2016) and Kenya (Stefánsdóttir, 2013). The
effectiveness of servant leadership on organisations’ performance are mostly proven in
the profit oriented organisations (as cited in Bosco & Melchar, 2010; Boyum, 2012; Kaul,
2014) Hence, for future research is suggested to be conducted in Malaysia especially
in the higher education context (Abu Hassan Asaari et al., 2016; Bryman, 2007; Hashim
et al., 2012; Nasir et al., 2014; Stefani, 2015) or a non-profit oriented organisations
(Bosco & Melchar, 2010; Boyum, 2012; Kaul, 2014) which is reported to be limited.
Besides, it is recommended that future research to include empirical studies on the

proposed research framework to strengthen and provide support to previous finding on
the mediation effect of working environment between servant leadership and job
performance. This is also supported by other researchers on the need of future studies
to explore more about working environment (Bushiri, 2014; Chandra & Priyono, 2016;
32
Gitonga, 2015) especially its role as mediator (Mesterova et al., 2015) and its impact
towards job performance (Bushiri, 2014).
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ASSESSING ONLINE LEARNERS’ WELL-BEING OUTCOMES

USING PARTIAL LEAST SQUARE APPROACH
Norizan Baba Rahima, Zoraini Wati Abasb
a
School of Distance Education, Universiti Sains Malaysia, Malaysia
Email: norizanbaba@usm.my
b
Chancellery, Wawasan Open Uuniersity, Malaysia,
Email: zorainiabas@wou.edu.my
ABSTRACT
One way to reduce work-family conflict on the well-being is to have the ability to coping with
demands effectively. Building upon the Conservation of Resources Theory and Cognitive-
Motivational Relational Theory, the present study tested the model combining of work-family
conflict, coping strategies, and well-being outcomes. The hypotheses are investigated through
correlation and path analysis of 173 online learners using Partial Least Square (PLS). The results
provided useful information on the positive influence of work-family conflict on coping strategies.
The results further showed that there is a positive influence of coping strategies on well-being
outcomes. Based on the findings, theoretical and practical implications of the study are discussed.
The suggestion for the future research is also offered.
Keywords: Work-family conflict, Coping strategies, Well-Being
1. INTRODUCTION
The recent economy careers have emerged in response to economic and labour market
changes brought about by rapid technological advances, globalisation, competitive pressures, and
trade deregulation as mentioned in Watanabe (2018). These economic developments have forced
changes in working careers and spawned a new career model. Subsequently, the current careers
tend to be dynamic, less predictable, and boundaryless in contrast to the traditional linear, static,
and rigid view of careers. To meet the challenges of the competitive global market, many
organisations have undergone a series of massive transformation and experienced critical changes
in their structure. For example, as listed by Rahim (2015) organisations have adopted strategies
such as massive restructuring, rapid downsizing, as well as management programmes like
reengineering, as an effort to trim costs, increase efficiency, and boost productivity.
The changes in the nature of work have influenced the notion of the individual’s careers
in the contemporary business world. Work has become more flexible as organisations become
flatter (Rahim, 2015). In addition, the boundaries of career landscapes are also becoming wider.
For this reason, changing the attitude of employees towards their career development and their
own role is needed. Employees adapting to these labour markets and organisational structure
changes modify their work values and behaviours in order to meet the work challenges (Frey &
Osborne, 2017). For instance, with the advent and advancement of the digital age, performing
tasks in the workplace has become more flexible in terms of time and setting. Mobile technology
such as laptops, cell phones and BlackBerry devices enable the employees to execute their work
38
related task virtually anywhere and at anytime. Frey and Osborne added, information technology
enables managers to work longer hours, and create expectations that managers will keep doing
their work even at odd hours, weekends, and other nonstandard times.
Referring to Johnson, Robertson, and Cooper (2018) the ability of individuals to deal
constructively with the demands of work depends on many factors, such as the kind of job they
have; the organisations that employ them and the economic, social, and cultural context in which
they live. Supported by Nichols and Swanberg (2018), millions of people all over the world juggle
these two domains such as to balance their lives; to minimise the potential conflicts that arise
from the balancing act; and to improve the quality of living. However, when trying to balance
between the work and family, the employees often ended with conflict arising from career roles
and responsibilities interfering with family roles and responsibilities.
According to Netemeyer, Boles, & McMurrian (1996), work-family conflict refers to conflict
arises when participation in a work (or family) role makes it difficult to participate in the other
role. Consistent with stress theory, work-family conflict, as an inter-role conflict, is a type of
stressor or demand which every individual experiences. This is sometimes expressed as work
interfering with family and family interfering with work. In line with Lee et al. (2018), work-
family conflict has been found to decrease job satisfaction, life satisfaction, work performance,
and organizational commitment, while increasing job stressors and depression, burnout,
absenteeism, and intent to turnover.
As stated by McCain et al. (2018), the ways in which people deal with type of stressor or
demand in their day-to-day has awaken the researcher’s of interest. Since potential stressors can
be encountered everywhere in life, they share a common view that to deal with stressors coping
is crucially important. Lazarus & Folkman (1984) defined coping as thoughts and behaviors
which are used for dealing with the internal and external demands of situations that are perceived
as stressful by individuals. Refering to the other source, Furman, Miller-Perrin and Joseph (2017),
described coping as a process that emerges in the context of a situation perceived as personally
important and exceeding one’s resources for coping. This behavior is crucial for the people
working in the paid labor force while simultaneously juggling the roles of paid worker, partner,
parent, homemaker, and including face-to-face students pertaining to their experiences of work-
family conflict and well-being. Then again, this behavior is also crucial for online learners who
are also working adults.
1.1 Problem Statement

As an online learners, they are enrolled the programme based on part-time basis. Their
programme is taught entirely online, and they are not required to attend the class. The programme
was designed to provide both individual and group interaction with the instructor and places a
strong emphasis on self-directed learning. Therefore, in order to complete the programme
successfully, the online learners need to equip themselves with several skills. First, they need to
have strong reading and writing skills as online learners communicate through such text-based
tools, as emails, discussion forums, chats and instant messaging. Second, they need to be self-
motivated and independent learner. While online courses can offer more flexibility in scheduling,
they require more self-discipline and independence than on-campus courses. Third, they need set
aside sufficient time for study such as to to devote to a 3-credit course will be approximately 12
39
hours a week. Fourth, the online learners must be active learners, self-starters who are not shy or
afraid to ask questions when they do not understand.
However, the statistics provided by Section of Data and Student Record under Registry
Department of one of the public university in Malaysia has shown a drop of 20% to 25% (as
compared to 2016) in terms of enrollment, and increase of 23% to 27% in terms of
attrition/dropout (see Figure 1).
30%
25% 27%
25%
20% 23%
20%
15%
10%
5%
0%
2016 2017
Enrollment Attrition/Dropout
Figure 1.1. Occupational accidents in 10 sectors by December 2013.
The reasons behind this scenario was due to the challenges that online learners experience
during their online programme have make them unable to cope with the online programme mode.
When they are unable to cope, it will end up with jeopordised their well-being. Those challenges
are pertaining to work demand, family conflict, study commitments, insufficient time have
reduced their level of job and family satisfaction. Also, supported by the feedback on study habits
of online learners who dropout reported that their study times are only few hours each night plus
any time that coud be squeezed in at work, falling behind on their assignment and information
overload (too much reading, and a lot of information per module) were the factors that influence
online learners’ decision to dropout of the online programme. Other factors that influence a online
learners to leave the course are dissatisfaction with the learning environment, discrepancies
between professional or personal interests and the course structure, low confidence levels in
distance learning, doubts about successful online communication, incompetence in using the
distance education software as an effective learning tool.
Previous research on work-family conflict has examined the people working in the paid
labor force while simultaneously juggling the roles of paid worker, partner, parent, homemaker,
and including female graduate students and their experiences of work-family conflict. But, limited
study has been conducted with regards to work-family conflict and well-being among online
learners. In terms of well-being, a few studies that have been conducted in Malaysia tackling the
well-being among professional groups. For example, Mahajar (2011) found that PTD officers in
the government sector can live a healthy life and are able to balance in almost every aspect,
provided that their psychological well-being is well taken care of. Another study by Panatik et al.
40
(2012) suggested that it is important for the university to manage and protect the well-being of its
academic staff to reduce their level of stress. Findings from Rahim (2015) suggested the
organization should provide a flexible working hours for the engineers, or to establish an accident
prevention policies at the work place for the engineers. a result, it would increase the level of
career satisfaction and psychological well-being among professional engineers. Still, limited
studies on well-being have been conducted among the online learners. This situation would
become worst if less attention is given to address the well-being of online learners. Thus, to fill
the gaps in the literature, it is worth to conduct a study to investigate whether work-family conflict
influences the well-being among online learners, as well as examine whether coping strategies
influences the relationship between work-family conflict and well-being outcomes among online
learners. Therefore, this study attempts to answer the following research questions:
1. Does work-family conflict influence coping strategies?

2. Do coping strategies influence job satisfaction?
3. Do coping strategies influence family satisfaction?
4. Do coping strategies influence emotional well-being?
2. LITERATURE REVIEW
2.1 Work-Family Conflict
For the past 40 years work-family conflict has been the predominant research construct
in the work-family field. Many historians credit initial interest to Kahn, et al. (1964) who
identified work-family conflict as a type of inter-role conflict. Yet, nearly all their research
focused upon conflict within the work role and ignored the dynamics fundamental to inter-role
conflict. Greenhaus and Beutell (1985) contributed one of the earliest theoretical views of the
construct by suggesting that work-family conflict (WFC) consists of time-based, strain-based, and
behavior-based demands. Frone (1992) demonstrated the importance of differentiating between
the direction of the conflict (work-family conflict or family-work conflict) and that when an
individual’s role in one domain interferes with a role in another domain the individual has
difficulty meeting the demands in the receiving role. Netemeyer et al. (1996) described WFC as
‘a form of interrole conflict in which the general demands of, time devoted to, and strain created
by the job interfere with performing family-related responsibilities’. Whereas FWC is defined as
‘a form of inter-role conflict in which general demands of, time devoted to, and strain created by
the family interfere with performing work related responsibilities’ (Netemeyer et al., 1996). More
recently, researchers have proposed a source attribution perspective, arguing that when one
encounters work-family conflict, an individual may experience decreased performance in the
receiving domain, but they may psychologically blame the domain that is the source of the
conflict.
2.2 Coping Strategies
Coping is the behavioral and cognitive efforts used to manage stressful and demanding
situations. Considered an individualized three-fold process, coping is identified by thoughts and
41
actions specific to the stressful encounter. Contextual in nature, coping strategies are a composite
of the situation and the individual’s assessment of the situation and his or her ability to manage
the situation is secondary. Coping is not assessed to be good or bad, right or wrong, successful or
not successful, but merely the actions taken to manage the situation. Building on this prior work,
Folkman and Lazaraus (1980) and Lazarus and Folkman (1984) collapsed the original typology
into two dominant forms of coping strategies: problem-focused coping and emotion-focused
coping. Problem-focused coping involves purposefully confronting sources of stress including
attempts to actively solve the problem or alter the situation. Emotion-focused coping involves
avoiding sources of stress including withdrawal and escapism (e.g., fantasy, substance abuse).
Whereas problem-focused is used to proactively change the situation to alleviate or eliminate the
stress if possible (e.g., fight, compromise), emotion-focused coping is used to manage the stressful
emotions and decrease their impact by changing feelings and thoughts about the situation (e.g.,
meditation, exercise, distraction). Although problem-focused coping is a more adaptive coping
strategy (Ben-Zur & Zeidner, 2012; Shin et al., 2014), individuals have been observed using both
emotion-focused and problem-focused coping styles in different aspects of the same situation.
Coping strategies and how people use them to deal with life stressors are well documented.
2.3 Well-Being
There are several definitions of individual well-being; Diener et al. (2017) defined
individual well-being as a concept associated with quality of life. Rather being perceived as a
single particular construct, this quality is generally observe as a broad area of scientific interest.
This is because it adopts four large concepts; the pleasant affect such as joy, contentment, and
happiness), the unpleasant affects-guilt, anxiety, and depression, satisfaction in life such as the
desire to change one’s life, feeling content with one’s current, past and future lives, and domain
satisfactions which include feeling satisfied with one’s work or family. Within the contexts of
career, Cummins (2018) has defined individual well-being as the physical and mental health of
the employees and this can be encouraged through providing a safe and stress free working
environment and it involves as the physical and mental health of employees. Other studies such
as Michalos (2017) and Ambrey and Daniels (2017) asserted that the employees’ well-being and
their improved financial performance can be supported through work environments that promote
stimulation, enjoyment, excitement and providing related reward. In line with the purpose of the
study and the problem statements, we examine three indicators of well-being in the job and family
domain, and life overall; job satisfaction, family satisfaction, and emotional well-being. These
three dimension have been used to measure the well being of the employees working in the
organisaations.
Job satisfaction refers to affective reactions to one’s job. It reflects the extent to which
indidual has positive feeling about the job (Khamisa et al., 2017). It is a very important aspect of
an employee’s well-being and has emotional, cognitive, and behavioral components. According
to Yang (2010), emotional aspect refers one’s feelings regarding the job, cognitive aspect refers
one’s thoughts and beliefs regarding the job, and, behavioral component refers to people's actions
with respect to the job. It determines the coordination of the workers in the organisation. The job
satisfaction cannot be separated from the life of the work itself because it is related to the human
conditions and as mentioned above, it reflects all considerable judgments which are; what the
individual wants, and the importance of what is wanted, and what he or she perceives as getting.
42
Family satisfaction is an overall assessment of feelings and attitudes regarding the nature
of the relationships between him/her and his/her family members (Pattusamy & Jacob, 2017).
According to Olson et al. (1989), family satisfaction is “interwoven and interrelated” (p.186) with
overall quality of life. Campbell, Converse and Rodgers (1976) work appears to be the earliest
research regarding satisfaction with family life. In their research it was noted that family
satisfaction displayed one of the most solid relationships with overall life satisfaction within all
life stages. Mills et al. (1992) shared some of the earliest work discussing the correlation between
family satisfaction and psychological well-being. Family Satisfaction is a contributing factor to
overall life satisfaction (Olson, et al., 1989). As such, changes in family satisfaction may have an
influence in how one perceives his or her current level of well-being and satisfaction with life.
Emotional well-being refer to the psychological health of the individuals. It is a state of

well being which refers to the positive aspects that are experienced, incorporated and lived by the
individual and reflected into one’s environment. According to Diener (1993) emotions fluctuate
but are suggested to move around a mean level of mood, which differs between individuals. This
mean level of pleasant or unpleasant mood, that is stable over time and situations, constitutes the
core of an individual’s emotional well-being Furthermore, Diener added the frequency of the
experience of pleasant affect has more importance than the intensity of the emotions for emotional
well-being. This is because intense emotions are rare and people who experience pleasant
emotions intensely are also more likely to experience unpleasant emotions intensely.
2.6 Underplaying Theories
This study utilises a combination of the Conservation of Resources Theory and

Cognitive-Motivational-Relational Theory that become the base for the research framework. The
following is the description of the underlying theories in the study.
2.6.1 Conservation of Resources (COR) Theory
According to conservation of resources theory, individuals seek to acquire and maintain

resources to reduce stress. Stress is a reaction to an environment in which there is the threat of a
loss of resources, an actual loss in resources, or lack of an expected gain in resources. Resources
include objects, conditions, personal characteristics, and energies. Loss of this resource, or the
threat of such a loss, may cause the experience of stress such as work-family conflict. COR theory
has been used by Grandey and Cropanzano (1999) in their research on the consequence of
stressors on work–family conflict.
2.6.2 Cognitive-Motivational-Relational Theory
Lazarus proposed the Cognitive-Motivational-Relational Theory (CMRT) of coping,

which highlights the role of distinct positive and negative emotions in the stress appraisal process.
Essentially, the CMRT links emotion with motivation by arguing that emotions are reactions to
the fate of active goal pursuit. Lazarus (1991) viewed that when one is committed to the pursuit
of important goals, one will experience positive emotions from appraisals of smooth goal progress
43
or goal attainment, and negative emotions from appraisals of goal thwarting or delays. As the
opening quote exemplifies, Lazarus repeatedly emphasised in his writings that the concept of
motivation is essential for a proper understanding of cognitive appraisals and coping responses in
troubled person-environment relationships.
2.7 Research Model
Figure 1 shows the proposed research model based on Conservation of Resources

Theory and Cognitive-Motivational-Relational Theory consisting of an independent variable
(work-family conlict), the three dependent variables (job satisfaction, family satisfaction and
emotional well-being), and the mediating variable (coping strategies).
Figure 1: Research Model
Based on the research model the following hypotheses have been developed to be tested in this
research:
H1: Work-family conflict is positively related to coping strategies.
H2: Coping strategies is positively related to job satisfaction.
H3: Coping strategies is positively related to family satisfaction.
H4: Coping strategies is positively related to emotional well-being.
44
3. METHODOLOGY
3.1 Procedure and Participants
We utilised undergraduates online students from one of the public university in Malaysia
which offers an online programme. Specifically, 215 student to send a link to the survey at at least
two weeks. The online students were full-time working adults, and fill up the survey themselves.
In the web page, we impressed upon the online students that their participants was voluntary and
their responses would be kept confidential. Students received an extra credits in their courses for
empleted and returned surveys.
The data were then reduced further by selecting for the analysis only those respondents
who were married or who had at least one child (i.e. eliminating respondents who both were single
and had no children). This was done to increase the likelihood that work-family conflict was a
relevant issue to the individual and to increase accuracy in response to the work-family conflict
questions. This selection process yielded a sample of 173 individuals whose responses were used
in the analyses.
The total sample of 173 individuals consisted of 61 percent females and 39 percent males.
Further, 82 percent were married, while 80 percent had children living at home with them. The
average age was 37 years, while the average tenure with their organization was six years. The
respondents were all employed in full-time jobs. Varying professions and organisational levels
were represented (operational, supervisory, managerial) from many different organisational types
(manufacturing, service, government/non-profit).
3.2 Measures
The following measures were used in assessing the constructs of interest in this study. All items
were measured using 5-point Likert-type scale (1 = strongly disagree; 5 = strongly agree).
Work-Family Conflict
Respondents’ work-family conflict were used using ten items delevoped by Netemeyer et al.
(1996). Sample items included, “The demands of my work interfere with my home and family life”
and “Family-related strain interferes with my ability to perform job-related duties”. Cronbach’s
alpha in the present study was 0.80.
Coping Strategies
Respondents’ coping strategies were used using 17 items delevoped by Lazarus and Folkman
(1984). Sample items included, “I come up with several alternative solutions to the problem” and
“I say to myself this is not real”. Cronbach’s alpha in the present study was 0.83.
Job Satisfaction
45
Respondents’ job satisfaction were used using seven items delevoped by Kofodimos (1993).
Sample items included, “I feel challenged by my work” and “I say to myself this is not real”.
Cronbach’s alpha in the present study was 0.82.
Family Satisfaction
Respondents’ family satisfaction were used using seven items delevoped by Kofodimos (1993).
Sample items included, “My family and I participate in activities, hobbies, and interests together”
and “I have a satisfying relationship with my family /spouse”. Cronbach’s alpha in the present
study was 0.78.
Emotional Well-Being
Respondents’ emotional well-being were used using six items delevoped by Kofodimos (1993).
Sample items included, “I take every day to rest, relax and take care of myself” and “I actively
seek to understand and improve my emotional well-being”. Cronbach’s alpha in the present study
was 0.86.
3.4 Analyses
The Cronbach's alpha scale reliability values for the nine focal constructs consisted of a
range of 0.78 to 0.93, which was beyond the minimum acceptable level of .70 (Nunnally &
Bernstein, 1994). We used Harman's one-factor test to check for the presence of common method
bias. Harman's one-factor test resulted in ten factors accounting for 66.9% of the variance, of
which the first factor accounted for about 18.9%. Because a single factor did not occur and no
factor accounted for most of the variance, the single method of data collection was not viewed as
a substantial risk (Podsakoff, MacKenzie, Lee, & Podsakoff, 2003).
We considered the structural equation model (SEM) with PLS approach to achieve our
research objectives and analyze the measurement and structural model. Following the
recommended twostage analytical procedures by Anderson and Gerbing (1988), we tested the
measurement model (validity and reliability of the measures) followed by an examination of the
structural model (testing the hypothesized relationship). To test the significance of the path
coefficients and the loadings a bootstrapping method (5000 resamples) was used (Hair et al.,
2014).
4. RESULTS
4.1 Descriptive statistics of the latent constructs
The mean value of all the five latent variables range from 3.681 to 4.281 with the standard
deviation ranging from 0.763 to 0.896 on a 5-point Likert-type scale (see Table 1). However,
mean values of all the variables were found to be above the midpoint 2.50. Job Satisfaction scored
the highest with a mean value of 4.281, while Coping Strategies showed the lowest mean value
at 3.681. The dispersion values reported through standard deviation indicates that the highest
46
value showed by Family Satisfaction at 0.896, and lowest value showed by Work-Family Conflict
at 0.763.
Table 1
Results of Descriptive Analysis
Variables No of items Mean Std. Deviation
Work-Family Conflict 10 3.900 0.763
Coping Strategies 17 3.681 0.816
Job Satisfaction 7 4.281 0.780
Family Satisfaction 7 3.827 0.896
Emotional Well-Being 6 3.714 0.836
4.2 Assessment of Measurement Model
To assess the measurement model, two types of validity were examined, first the
convergent validity, followed by the discriminant validity. The convergent validity of the
measurement is usually ascertained by examining the indicator loadings, Average Variance
Extracted (AVE), and Composite Reliability (CR). In this study, the loadings were all higher than
0.7, the composite reliabilities were all higher than 0.7 and the AVE were also higher than 0.5 as
suggested in the literature (see Table 2).
Table 2
Result of the Measurement Model
Construct Items Loadings Average Variance Composite

Extracted (AVE)a
Reliability (CR)b
Work-Family WFC_1 0.882 0.737 0.894

Conflict
WFC_2 0.866
WFC_3 0.848
WFC_4 0.835
WFC_5 0.705
WFC_6 0.980
WFC_7 0.845
47
WFC_8 0.901
WFC_9 0.819
WFC_10 0.835
Coping Strategies CS_1 0.802 0.732 0.891
CS_2 0.887
CS_3 0.880
CS_4 0.788
CS_5 0.870
CS_6 0.822
CS_7 0.898
CS_8 0.850
CS_9 0.826
CS_10 0.893
CS_11 0.902
CS_12 0.758
CS_13 0.773
CS_14 0.872
CS_15 0.922
CS_16 0.794
CS_17 0.843
Job Satisfaction JSAT_1 0.903 0.665 0.896
JSAT_2 0.873
JSAT_3 0.856
JSAT_4 0.886
JSAT_5 0.822
JSAT_6 0.784
JSAT_7 0.789
Family FSAT_1 0.847 0.665 0.856

Satisfaction
FSAT_2 0.891
FSAT_3 0.897
48
FSAT_4 0.770
FSAT_5 0.823
FSAT_6 0.770
FSAT_7 0.823
Emotional Well- PsyWB_1 0.747 0.717 0.844

Being
PsyWB_2 0.856
PsyWB_3 0.889
PsyWB_4 0.895
PsyWB_5 0.815
PsyWB_6 0.798
After convergent validity, the discriminant validity was tested (see Table 3). However,
there has been a criticism of the Fornell-Larcker (1981) criterion do not reliably detect the lack
of discriminant validity in common research situations (Henseler et al., 2015). They have
suggested an alternative approach, based on the multitrait-multimethod matrix, to assess
discriminant validity using the heterotrait-monotrait ratio of correlations. In fact, Henseler et al.
(2015) went on to demonstrate the superior performance of this method by means of a Monte
Carlo simulation study.
As such we have also tested the discriminant validity using this new suggested method
and the results (see Table 4). There are two ways of using the HTMT to assess discriminant
validity, first as a criterion or, second as statistical test. For the first one, if the HTMT value is
greater than HTMT.85 value of 0.85 (Kline 2011), or HTMT.90 value of 0.90 (Gold et al. 2001)
then there is a problem of discriminant validity. The second criteria is according to Henseler et al.
(2015), is to test the null hypothesis (H0: HTMT ≥ 1) against the alternative hypothesis (H1:
HTMT < 1) and if the confidence interval contains the value one (i.e., H0 holds) this indicates a
lack of discriminant validity. As shown in Table 4 all the values passed the HTMT.90 (Gold et
al., 2001) and also the HTMT.85 (Kline, 2011) and also the HTMTInference also showed that the
confidence interval did not show a value of 1 ion any of the constructs thus indicating that
discriminant validity has been ascertained.
Table 3
Results of Discriminant Validity Analysis
Constructs (1) (2) (3) (4) (5)
(1) Work-Family Conflict 0.736
(2) Coping Strategies 0.423 0.811
(3) Job Satisfaction 0.319 0.129 0.721
49
(4) Family Satisfaction 0.533 0.433 0.439 0.776
(5) Emotional Well-Being 0.423 0.389 0.370 0.354 0.719
Table 4
Results of Heterotrait-Monotrait (HTMT)
Constructs (1) (2) (3) (4) (5)
(1) Work-Family
Conflict
0.402
(2) Coping
Strategies CI.90 (0.302, 0.548)
0.563 0.318
(3) Job Satisfaction
CI.90 (0.431, 0.638) CI.90 (0., 0.558)
0.558 0.486 0.556

(4) Family
Satisfaction CI.90 (0.552, 0.811) CI.90 (0.332, 0.618) CI.90 (0.422, 0.732)
0.378 0.451 0.389 0.733

(5) Emotional Well-
Being CI.90 (0.293, 0.538) CI.90 (0.319, 0.622) CI.90 (0.305, 0.558) CI.90 (0.519, 0.834)
4.3 Assessment of Structural Model
Following the assessment of the measurement model, Hair et al. (2014) suggested looking
at the R , beta and the corresponding t-values via a bootstrapping procedure with a resample of
2
5,000. They also suggested that in addition to these basic measures researchers should also report
the predictive relevance (Q2) to assess the structural model.
Four hypotheses were postulated for the relationship between work-family conflict,
coping strategies, job satisfaction, family satisfaction, and emotional well-being. All the four
tested hypotheses were supported. Work-family conflict was found to have a positive influence
on coping strategies (β = 0.463, p< 0.01), explaining 34.5% of the variance in coping strategies.
Thus, H1 was supported. The R2 values of 0.345 was above the 0.26 value as suggested by Cohen
(1988) indicating a substantial. Next, coping strategies was found yo have positive influence on
job satisfaction (β = 0.218, p< 0.01), family satisfaction ((β = 0.282, p< 0.01), and emotional well-
being (β = 0.337, p< 0.01), explaining 21.7% of the variance in these well-being outcomes. These
results give support for H2, H3, and H4. The R2 values of 0.217 was above the 0.13 value as
suggested by Cohen (1988) indicating a moderate model.
50
Table 5
Results of Hypothesis Testing
Std Std.
Hypothesis Relationship t-value Decision R2 f2
Beta Error
Work-Family Conflict
H1 0.463 0.086 5.372** Supported 0.345 0.296
→ Coping Strategies
Coping Strategies
H2 0.248 0.106 2.340** Supported 0.217 0.085
→ Job Satisfaction
Coping Strategies
H3 0.282 0.096 2.948** Supported 0.094
→ Family Satisfaction
Coping Strategies
H4 0.337 0.091 3.216** Supported 0.102
→ Emotional Well-Being
Note. **p < 0.01, *p < 0.05
5. DISCUSSION
This paper began with an explanation of the main objectives of the study. The first
objective is to investigate whether work-family conflict influence coping strategies. The second
objective is to investigate whether coping strategies influences well-being outcomes which
comprise of job satisfaction, work satisfaction and emotional well-being.
First, the result of the study showed that work-family conflict is positively related to
coping strategies (β = 0.463, p< 0.01). The positive relationship between work-family conflict
and coping strategies in this study supports the earlier idea by Lo, Stone and Ng (2003), who
claimed that the styles of coping are most effective in dealing with the particular stressor of work-
family conflict. Also, in Rotondo, Carlson, and Kincaid (2003), they claimed that although coping
is believed to reduce the effects of stressors on strain, the beneficial effect of coping on
psychological stress occurs via its influence on the appraisal process. That is, the way the
individual perceives his/her environment and its stressors becomes positively changed. In addition,
Schwartz and Stone (1993) suggested that coping strategies to be used more frequently with daily
work problems. Therefore, using the wrong strategy in a given situation will, at the very least,
slow the time it takes to reduce distress and possibly impede the process altogether. From this
finding, it is possible to claim that despite juggling with conflicts, the online learners still manage
to direct efforts to cope with work demands and direct efforts to cope with family demands. For
example, they come out with several alternatie solutions to the problem, make a plan, and follow
it. In fact, the online learner take an innitiave to create a whatssap group that enable them to
communicate more frequent and faster on the latest update. However, they are still need to refer
to the Learning Management System (LMS). Thus, the ability of online learners to effectively
cope would reduce their work-family conflict.
51
Second, it was discovered that coping strategies is positively related to well-being

outcomes which comprise of job satisfaction, family satisfaction, and emotional well-being.
The positive relationship between coping strategies with job satisfaction (β = 0.218, p<
0.01) is consistent with that of the previous studies in which coping strategies contributed to job
satisfaction (Harzer & Ruch, 2015; Chang & Edwards, 2015). This finding implies that with the
proper coping strategis such as have established a detail career development plans, the online
learners are very clear about how their present positions that related to their career objectives, and
finally, the online learners are very clear about the efforts needed to realize their career goals.
Therefore, by engaging in coping strategies, they would have more chances to get promoted and
at the same time they would be satisfied with their job.
Next, the positive relationship between coping strategies with family satisfaction (0.282,
p< 0.01) is consistent with the previous studies in which coping strategies to have a positive effect
on family satisfaction (Rotondo et al., 2003). This finding implies that managing the feelings and
emotions associated with stress occurs via cognitive manipulations and positive thinking efforts,
which is also line with Lazarus and Folkman (1984). It is possible to claim that, the online learners
are also engage to a form or humor or prayer that has found to be an effective in having good
relationship with their family. When the online learner approach and talk with their families about
what is going on in their lives, participate in activities, hobbies, and interests together, they get
the appreciation and supports.
Finally, the positive relationship between coping strategies with emotional well-being (β
= 0.337, p< 0.01) is consistent with that of the previous studies in which coping strategies
contributed to emotional well-being (Hall & Chandler, 2005). This finding implies that a person’s
profiles of values priorities are based on his/her emotional well-being. Meanwhile, individuals
who put the importance on specific values maybe more likely to have a more positive impressions
of well-being as his/her is influenced by a distinct set of values. Refering to online learners, it is
possible to assume that they always think positive when they managed to take care of themselves,
and actively seek to understand and improve their emotional well-being.
6. CONCLUSION
Despite the issues of work and family conflicts, but the reality for online learners relying
on their resources to balance competing and conflicting demands from work and family domains.
Regardless students with a “traditional” mindset find it difficult to adapt; however, they need to
accept the new learning circumstances with an open mind and heart. Understanding the benefits
of e-learning and even discussing them with their peers may change this mindset and better
prepare students for online classes
Even though many employers offer real understanding and ad hoc support for worker
conflicts, a small number fail to offer even that. Individuals are stretched tighter and tighter to
balance work and family demands, and grasp for advice and ideas that help them cope with these
struggles. Only a positive attitude will help them overcome the challenges in e-learning; though
52
this is hard to practice, students need to understand that it is necessary in order to reap the e-
learning’s benefits in the future.
Our findings indicate that coping strategies used at home and work may help reduce both
conflict effectively. These conclusions are underscored by the fact that the respondents in this
study represented a heterogeneous crosssection of job types, job levels, and organizations. This
helps eliminate the possibility that the relative efficacy of coping styles could have been
dependent on the unique work situation of the respondents, as may be the case in a similar sample
7. LIMITATIONS AND SUGGESTION FOR FUTURE RESEARCH
This research is not without limitations. First, we note that this is a crosssectional survey
research design, which imposes limitations from such concerns as common methods variance and
causality. Whereas this is a concern that cannot be completely alleviated, the design used is
consistent with previous research in the area. Second, males and females were not sampled in
percentages equal to their representation in the general population; and, in fact, women reported
significantly greater conflict levels in this study.
Future research efforts should seek to expand this study and identify effective coping
strategies for managing work-family conflict in to achive well-bring among online learners. The
reality of competing work and family demands is becoming increasingly more complicated. The
relative efficacy of coping styles on work and family conflicts is of great academic, managerial
and public interest.
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58
Linking Organisational Justice and Turnover Intention through the

Moderating Effect of Job Embeddedness: A Conceptual Framework
Oussama Saoula*1, Muhammad Fareed 2, Munadil Khaleel Faaeq 3
1, 2, 3
School of Business Management, College of Business, Universiti Utara Malaysia,
06010 Sintok, Kedah, Malaysia
*Corresponding Author: osaoula@uum.edu.my
Abstract
The employees in the form of human capital, are accountable for the firms’ results since
they are the ones who advance and implement firm’s strategies and processes and
eventually determine its success level. The turnover of those employees will affect the
achievement of the organisations’ goals as well as the maintaining of the competitive
advantage. Considering that, the majority of researches have been conducted in the
western contexts, it is worthy to encourage more studies in non-western settings to
discover new understandings related to the problem. Malaysia considered as one of the
developing countries that is having high turnover of employees in many sectors.
Therefore this study aims to examine the relationship between organisational justice
(OJ)’s three dimensions (Distributive justice,procedural justice and interactional justice)
and turnover intention (TI). Furthermore this study proposed the moderating role of Job
embeddedness (JE) in this relationship. Hence, this study is proposing a research
framework that will contribute to the body of knowledge through providing new insights.
Keywords: turnover intention, organisational justice, job embeddedness, social exchange

theory, planned behaviour theory.
1. Introduction
To achieve competitive advantage in the current international active business
environment, preserving capable employees is one of the key indicators (Chib, 2016;
Hamid, Reihaneh, & Siroos, 2016; Kim & Hyun, 2017; Lin, Tsai, & Mahatma, 2017;
Parasız, Koç, Ilgar, & Şahin, 2017). Furthermore, due to its great effect on the long term
plans and the efficiency of many organisations around the globe, employees’ turnover
became a main obstacle to these companies (Fareed, Noor, Isa, & Salleh, 2016; Keni,
2013). Moreover, researchers deliberated employees’ turnover as costly phenomena to
the organisations, and this cost will appear in numerous aspects such as advertisements,
recruitment, selection, training and termination (Abid & Butt, 2017; Labrague, Gloe,
McEnroe-Petitte, Tsaras, & Colet, 2018; Long, 2016; Parasız et al., 2017; Sumaira Khalid,
Ch. Abdul Rehman, & Muqadas, 2018). The organizations that facing high rates of
turnover should examine the fundamental reasons that cause employees’ turnover in order
to reach to real solutions to this problem. For that, the oragnisations should ask a dynamic
question, why some employees leave and some remain? The reasons may look tough and
consistent to the preferences of the employees. Therefore, it is very important to identify
the needs of these employees by the organisations where possible and applicable (Ponnu
& Chuah, 2010).
59
Instead of turnover (the actual behaviour), this study emphases on turnover intention
(intentional behaviour), because the intention is a strong interpreter of turnover. (Lin et
al., 2017). There are many factors behind having high rates of employees’ intention to
leave. Thus, investigating these factors such as OJ and job embeddedness is important.
Saoula, Johari, and Bhatti (2016) in their research suggested the mediating role of OCB
in the effect of personality traits on turnover intention, and proposed that future
researchers should involve factors such as organizational justice and job embeddedness
in similar models and context of research.
From the findings of the prior studies, the majority of researches on the relationship
between organisational justice and turnover intention have focused more the two
dimensions of the organisational justice (i.e., distributive justice and procedural justice)
while little studies explored the effect of interactional justice. Hence, the current research
will focus on the three dimensions of organisational justice (distributive, procedural and
interactional) and their impact on employee` turnover intention.
The larger part of the previous studies on the OJ, JE and turnover intention were
conducted in the western contexts, where the national cultures differ from non-western
settings. In this case, the results will not be appropriate to the different contexts of
research. Thus, further examinations on the relationship between OJ, JE and turnover
intention will enrich the literature and add value to the body of knowledge, particularly
in Malaysia and generally in Asia and the world.
In Malaysia, over many decades, the government throughout its economic plans focused
in developing the human capital via talent management strategies and always encourage
employers to support that. One of the major obstacles facing this development on the
national and the organizations levels is the increasing rates of employees’ turnover which
is considered as costly and worrisome matter. In 2011, in the Asia Pacific region,
Malaysian is placed sixth with employee turnover attrition rate of 15.9% (Langove, Isha,
& Javaid, 2016). Moreover, according to Malaysian Employers Federation (MEF), among
all sector that affect with high employee’s turnover rates, information and communication
technology sector (ICT) was the highest with rate if more than 75%. (Nasyira, Othman,
& Ghazali, 2014). This fact created motivation to call for and encourage more studies to
examine and understand this phenomenon in the Malaysian context.
2. Review of the Literature
2.1 Turnover Intention (TI)

Academicians, practitioners and professionals have taken more interst on the
phenomenon of employee’s turnover due to its negative impact on the organizations
(Abid & Butt, 2017; Muqadas, Rehman, & Aslam, 2017; Sumaira Khalid et al., 2018;
Ton & Huckman, 2008). Tett and Meyer (1993) defined turnover intention as “a
conscious willingness to leave the organisation, which includes a thought or idea of
leaving, the behaviour of searching for a new job, and the behaviour of deciding to leave
the job” (p.262). Ongori (2007) argued that turnover intention deliberated as the direct
precursor to the actual behaviour of leaving, and any plan by the individuals to leave the
company will be considered as intention to turnover.
2.2 Organisational Justice

In today’s terms, organisational justice is associated with numerous distinct forms of what
is commonly referred as perceived justice, with each form of perceived justice offering
several responses to the question, “What is fair?” (Greenberg, 2009). The term
60
"organisational justice" was used to define a set of social psychological and sociological
theories that defined perceptions of fairness by illustrating how organisational justice
could be applied to organisations effectively (Greenberg, 1987).
The three dimensions of organisational justice and their definitions are as the following:
2.2.1 Distributive Justice (DJ)

The focus on distributive justice by theorists was on the early conceptualisations of
organisational justice. It was defined by Greenberg (1990) as "an individual`s judgment
or perceived fairness of resource allocation, based upon the produced outcomes of the
individual compared to expected inputs".
2.2.2 Procedural Justice (PJ)
Thibaut and Walker (1975) established the theory of procedural justice in responses to
the argument of determination process in the legal system. They discovered how
disputants` perceived control over the process and how the decisions would impact their
perception of final verdicts.
2.2.3 Interactional Justice (IJ)
The concept of interactional justice was labelled by Bies and Moag (1986). In addition to
distributive and procedural justice, researchers have revealed that the perception of justice
in the organisation is affected by the quality of interpersonal treatment that the individual
received.
2.3Organisational Justice and Turnover Intention

Social exchange theory of Blau (1964) assert that the continuous contribution is a way used
by the individuals to pay back the favourable treatments from their organisation. So, the
association between organisational justice and employee’ turnover intention is developed
based on the construct provided by this theory (Karatepe & Shahriari, 2014). Many recent
studies have proven the negative effect of organisational justice on employees’ turnover
intention in may contexts (Fatt, Khin, & Heng, 2010; Karatepe & Shahriari, 2014; Ponnu &
Chuah, 2010; Sayed, Mohammad, Hossein, Yashar, & Hamid, 2012). Contrariwise, there is
a study in Malaysia proved that organisational justice does not have any association with
the turnover intention (Saraih, Aris, Sakdan, & Ahmad, 2017). This finding inconsistent
with the results of many previous studies, which means that there are mix results in the
relationship between organisational justice and turnover inaction. Furthermore, Saoula
and Johari (2016) in their research suggested the mediating role of OCB in the effect of
perceived organisational support on turnover intention, and proposed that future
researchers should involve elements such as organizational justice in similar models and
context of research. Hence, to fill the literature and practical gaps, further empirical
studies on the direct and indirect effect of organisational justice on turnover intention are
needed particularly in the Malaysia context. Based on the earlier discussion, the following
proposition was formulated:
P1. Distributive justice has a significant negative effect on employees’ turnover
intention.
P2. Procedural justice has a significant negative effect on employees’ turnover
intention.
P3. Interactional justice has a significant negative effect on employees’ turnover
intention.
61
2.4 Job Embeddedness as Moderator

Job embeddedness has developed from the unfolding model of voluntary turnover (Lee
& Mitchell, 1994) and clarifies why individuals remain on their jobs. Yang, Ma, and Hu
(2011) deliberated that staying and leaving are dissimilar behaviours, but they considered
to have the same decision-making process. The unfolding model concentration is on
turnover causes the forces which resisted employee’s turnover and make them to stay in
position. Alike balance scale, one side is turnover causes and the other side is attachment
forces that are derived from social web.
Yao, Lee, Mitchell, Burton, and Sablynski (2004), defined job embeddedness as “the
combined forces that keep a person from leaving his or her job”. The job embeddedness
concept represents a wide set of influences on an employee’s decision to stay on the job
(Holtom, Mitchell, & Lee, 2006). It concentrations on the mass of links an employee
experiences through his or her duties, experiences, responsibilities and relationships. As
these interconnections become more complex, an employee becomes more embedded
within the organisation and is less likely to leave. Employees become embedded as a
function of the totality of forces that enmesh them in organisations.
As JE is based on turnover’s models , the basic purpose of it is to study voluntary turnover

by analyzing the different motives for employees to stay (Yang et al., 2011). The construct
of JE was developed from employees’ turnover field of research that investigated the
movement of employees between job alternatives. This investigation in this
organisational connection hypothesized that the perception of employees towards the
attractiveness and easiness of leaving the job specified their final decision to stay in the
organisation or leave it (March & Simon, 1958).
When the employees are not satisfied with their current job, they will look for alternative
positions elsewhere, and compare these alternatives with their present jobs. If this last is
more beneficial and attractive they will leave the organisation (Mobley, 1977). Generally
speaking, the employees will be bounded to their job and organisation and show a low
level of turnover intentions, if they found that their future plans, career goals and personal
plans match well with the job as well as the organisation (Mitchell et al., 2001). If these
individuals built a strong official and unofficial links with others in the organisation they
will likely remain in the organisation. When these employees have awareness that there
is a possibility of losing opportunities and benefits that are related to the organisation they
will likely quit from the organisation (Mitchell et al., 2001). More properly, job
embeddedness is an “anti-withdrawal” or “retention” concept. It reveals the decisions
made by the employees to straightly and widely contribute and transfer the academically
concern beyond dissatisfaction and cause withdrawal.
Job embeddedness has been studied, mostly as an independent variable that affects work
outcomes such as turnover intention; and as dependent variable and which is influenced
by personnel characteristics and organisational factors. Allen (2006) argued that little
researches investigated job embeddedness in the organisations, thus further investigations
in this topic are required. A greater understanding of employee embeddedness is timely
and important (Ng & Feldman, 2007). Halbesleben and Wheeler (2008) demonstrated
that employees performance is predicted by JE. Sekiguchi, Burton, and Sablynski (2008)
stated that the employees with great degree of job embeddedness, showed a strong
influence of organisational self-esteem on task performance. In human resource
management, job embeddedness is a significant strategy for retaining preserving
62
employees, thus researchers should further investigate it (Wheeler, Harris, & Harvey,
2010). Similarly, Ng and Feldman (2011) deliberate that there is a need for more
exploration on the reasons that make employees embedded in their occupations. Holtom,
Burton, and Crossley (2012) argue that, the experimental researches on job embeddedness
should go beyond the previous investigations that only concentrated on the consequences
by exploring the antecedents.
Due to limited recent studies related to job embeddedness area, Karatepe (2013)
confirmed that factors effecting job embeddedness have been ignored widely. Thus, there
is a need for more studies on the job embeddedness to clarify its moderation effect
between different variables. Moreover, William Lee, Burch, and Mitchell (2014)
encourage future researchers to continue to study and seek for better understanding of
employee embeddedness.
Saoula and Johari (2016) in their studieson the effect of perceived organisational support
on turnover intetion suggestd that, future studies should engage job embeddedness as
strong factor in the research models related to turnover intetion. Furthermore, Saraih et
al. (2017) investigated the relationship between OJ and turnover intention. They
recommended further researchers to investigate any possible role of moderation between
OCB and turnover intention. In addition, Due the inconsistent results of the direct effect
between OJ and turnover intention (Saraih et al., 2017), the indirect effect through job
embeddedness is proposed to be examined. Hence, the following propositions were
formulated:
P4. Job embeddedness moderates the effect of distributive justice on employees’
turnover intention.
P5. Job embeddedness moderates the effect of procedural justice on employees’
turnover intention.
P 6. Job embeddedness moderates the effect of interactional justice on employees’
turnover intention.
3. Proposed Conceptual Framework

Based on the comprehensive and extensive literature review and support of the theories
(Social exchange theory and job embeddedness theory), initial research framework
(Figure 1) have been developed in this study. Social exchange theory, job embeddedness
theory and planed behaviour theory have been used to support and consolidate the effect
between OJ, and turnover intention through the mediation of JE. Social exchange theory
proposes that over the mutual exchange, an arrangement of reciprocal responsibility is
recognized between the parties (Blau, 1964). The benefited party turns to be obliged to
pay back throughout positive outcomes (e.g., high OJ, JE and low intention to leave).
When the contacts are observed as fair over time, the awareness of organisational justice
will succeed among organisational fellows and the consistency of the organisation will
be improved. Furthermore, this theory delivers outcomes which shows that employees
exchange necessary outcomes in return for fair treatment, support or care (Paillé, 2013).
Furthermore, social exchange theory provided a construct that employees who built
excellent connections and trusting with their managers and colleagues are likely to be
embedded within the organisation. This strong links with the managers and fellow
workers show that the employees’ relations to organisation and individual are very strong.
63
In addition, one of the most prevalent approached to understand employees tunover and
job embeddedness is job embeddedness theory (Mitchell et al., 2001). This theory
postulates that greatly embedded employees have a number of networks (formal and
informal) with others at the workplace. (Holtom et al., 2006; Mitchell et al., 2001). The
underlying premise of the theory of planned behaviour (TPB) is that employees make
decisions reasonably and methodically through availabilty of information to them (Ajzen,
1991). Therefore, if the employee feel that they are treated in fair way they will show low
intention to leave the organisation and vice versa.
By emerging a proposed framework (Figure 1) that posited the direct effect of OJ’s three
dimensions (distributive, procedural and interactional justice) on turnover intention, this
research will contributes to the body of knowledge. Furthermore, this research proposed
the investigation of the moderation effect of JE on the relationship between OJ
(distributive, procedural and interactional justice) and turnover intention to bring more
insights into these effects.
Figure 1: Proposed Conceptual Framework
4. Methodology
This research proposed a framework on the effect of OJ on turnover intention through the
moderation role of JE. To test the phenomenon, quantitative research approach has been
suggested. The survey questionnaire will be among targeted participants proposed in this
study, which are the full time employees working in the information and communication
technology sector in Malaysia. The measurement of variables for this study will be
adapted from obtainable literature. Structural Equation Modeling -Partial Least Square
(SEM-PLS) will be used to test the proposed research model.
5. Conclusion
As abovementioned, this study is aimed examine the effect of OJ’s three dimensions
(distributive, procedural and interactional justice) on turnover intention, and the
64
moderating role of JE in the relation. By proposing this research model, this study is
expected to encourage and invite more academicians, managers, practitioners and
decision makers to identify more insights on the root causes of turnover intention. The
previous studies have tried to link OCB with turnover intention, but the role of JE as a
vital factor in this relation have been ignored. Preventing turnover is the aim of many
organizations, and one of the vital ways of doing that is increasing the level of JE.
Therefore, involving JE in this model will contribute in the predicting turnover intention
at early stages and will provide more insights in understanding the phenomenon to fill the
research gaps.
6. Recommendations for Future Research

Future studies are strongly recommended to examine this research model empirically.
Furthermore, future researchers are encouraged to consider adding other factors affecting
turnover intention (e.g., Career anchors, career development opportunities , work-life
balance and employee engagement). Also, future studies should consider JE to be
dependent variable as important concept in the retention strategies of the companies.
Moreover, future researchers should also consider any possible role of other moderating
and mediating variables (e.g., perceived organisational support, personality traits,
organisational justice, organisational learning culture) to provide new insights to
contribute to the body of knowledge in the turnover intention literature. In addition, future
studies should propose this conceptual framework to be investigated in different sectors.
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68
The Moderating Role of University Reputation on Relationship of

Intrinsic, Extrinsic Motivation, University Reputation and Job
Satisfaction.
Abdulrasheed Abdullah Aminullah; Mohd Faizal Bin Mohd Isa; Wan Shakizah Wan Mohd
Noor; Fadzli Shah Abd. Aziz
School of Business Management, Universiti Utara Malaysia, Malaysia
alfarsheed@yahoo.com; m.faizal@uum.my; shakizah@uum.edu.my; f.shah@uum.edu.my
Abstract
The aim of his paper is to empirically investigate the relationship between intrinsic motivation,
extrinsic motivation, university reputation and job satisfaction. Data was collected using a
questionnaire survey. The questionnaire was shared to a sample of 505 academic staff teaching
in universities located in the northern region of Malaysia. 328 usable questionnaires was returned.
A PLS SEM technique was applied in analysing the data. The findings showed that intrinsic
motivation was significant and positively related to job satisfaction. Similarly, extrinsic motivation
was positively related to job satisfaction. Meanwhile, the findings for moderating effects showed
that university reputation unexpectedly did not find support for a moderating effect on the
relationship between intrinsic/extrinsic motivation and job satisfaction. In general, these findings
supported the view that university reputation affects various aspects of human behaviour as well
as shows the relevance and importance of reputation towards developing a healthy competitive
advantage. Apart from that, the universities management also need to consider the role of
reputation when conducting future planning and recruitment as a way for enhancing academic job
satisfaction.
Keywords: Job Satisfaction, Intrinsic motivation, extrinsic motivation, university reputation.
INTRODUCTION
Public universities are regarded as one of the most potent educational organizations that
serves as the pillar of any country’s tertiary education system (de Oliveira Vasconcelos
Filho, de Souza, Elias, & D’Ávila Viana, 2016). Universities are stronghold of ideologies
and philosophies in educational institutions and its academic staff plays a critical role in
nurturing generations of sound, sophisticated as well as a well-educated graduate class
in other to bring about lasting socio-economic development. This has always been the
subject of interest to researchers nationally and globally. Furthermore, it is pertinent to
note that higher educational institutions exist primarily for the sake of providing
knowledge, educating students, fostering and deepening the realm of research as well
as promoting lasting economic development for the purpose of achieving national
development agendas (Asad Khan, Masrek, & Nadzar, 2016). As a matter of fact,
previous studies point to the fact that universities are regarded as the highest sources of
knowledge when it comes to giving focus and direction to trained workforce or experts
from different fields of academic endeavour (Alonderiene & Majauskaite, 2016).
That notwithstanding, higher tertiary education such as public universities play enormous
and vital roles especially among academic staff who serve as the stabilizing instrument
of knowledge dissemination which in turn helps in the achievement of both short and
long term educational objectives (Hanaysha & Tahir, 2016). The basic and the most
fundamental obligation of academic staff in universities is primarily to guarantee the
academic success of that institution by every means possible. This is giving the fact that
69
academic staff are oblivious of their sacred duty of conducting teachings, carrying out
researches as well as a digression of management and administrative chores (Ali et al.,
2014). The success and achievement of educational programmes in public university
campuses would mostly depend on the commitment, involvement, obligation as well as
direct effort and professionalization of the academic profession (Aouadni, Rebaï,
Christodoulakis, & Siskos, 2014). Previous researches had revealed that academic staff
represent the greatest asset that are employed by public universities because they
perform pertinent roles in shaping and nurturing the success of educational institutions
by the progressive realization of their roles which includes, teaching, conducting
researches, consultations and high impact publications (Khan, Masrek, & Nadzar, 2016).
The role of job satisfaction towards ensuring their commitment to work is and has always
been a subject of intense study among researchers (Cerdin & Le Pargneux, 2014). The
concept of job satisfaction is refers to as an evaluative state that expresses contentment
with positive feelings about one’s job. In the same vein, Weiss (2002) considered job
satisfaction as a positive evaluative judgement one makes about one’s job or job
situation. Most researchers are of the opinion that the topic of job satisfaction no doubt
has been extensively and thoroughly examined and investigated overtime, which is due
to its ever relevant significance to the physical and mental well-being of academic staff
in our educational institutions (Ordu, 2016). Job satisfaction is perceived to be
significantly contributive to influence and facilitate the operations of organizations and
also contributes in determining their overall success (Bakotić, 2016).
The logic of reasoning here is in understanding that both social and attitudinal sciences
research all agree that motivation, organizational climate and job satisfaction correlate
positively (Filiz, 2014). It is therefore convenient to submit that when organizations
provide satisfaction for their employees, it not only promotes the reputation of the
organization but it also goes a long way to enhance the overall productivity and
motivation of the employees in the organization, which can have significant impact on
customer satisfaction with attendant consequences for organizational stability (Mustapha,
2013).The continuing satisfaction, retention and abiding commitment of academic staff
in higher educational institution has been a matter of considerable importance and
relevance given the crucial and pivotal role they play in guaranteeing the running of an
academic institution in an excellent manner. Therefore, there is the need to ensure that
academic staff are satisfied as a condition for achieving the best services that is required
for the success of any university system (Tai & Chuang, 2014). Evidence from previous
research has shown that motivation and job satisfaction have played significant roles
among academic staff and have also contributed positively in ensuring positive outcomes
in the areas of improved employee turnover, increase in student learning, improvement
in quality and productivity overtime as well as job performance (Terera & Ngirande, 2014;
Mihalcea, 2014).
The success of universities either nationally or globally given their contribution to

economic development would depend on a rapidly advanced and more technically
enabling research environment that requires the inputs of highly qualified and skilled
work force in comparison to what is presently obtainable. Job satisfaction is one of the
main organizational dynamics that plays a big role on employee attitudes, feelings,
sentiments, reaction and behaviour in the work place. In circumstances as such as this,
academic staff teaching in universities have growing expectations given the latitude of
job stress to cope with, work load pressure from heads of departments which may lead
70
to loss of morale and reduced satisfaction (Sasa et al., 2013). For educational institutions
to flourish and succeed, their loyalty, commitment, retention, and enthusiasm is a vital
condition for the success of an academic entity and therefore, it is important that the
needs of academic staff is absorbed, accommodated and satisfied in other to achieve
the finest level of output required for academic excellence (Da Wan et al., 2015).
There is need to emphasize that job satisfaction among academic staff is a topic that has
been well researched and exploited (Lambert, Minor, Wells, & Hogan, 2016). A Plethora
of studies on job satisfaction among academic staff only took into consideration issues
that bothered on general job satisfaction and dissatisfaction criteria only. Equally, it a
generally agreed consensus among academician that the validated measure of the level
of job satisfaction among employees is the most appreciated information concerning
employees in an organization which must not be ignored (Morris & Laipple, 2015).
In the Malaysian context, previous research have corroborated that Malaysian academic
staff’s perception about their level of job satisfaction is quite low, and job satisfaction is
typified by improper work conditions, limited occupational security, managerial problems,
low salaries, few or no promotional chances as well as insufficient facilities which have
all negatively impacted on academic staff (Ali et al., 2014). Most academics possess a
perception of low satisfaction when measured with other job related factors like career
advancement, job security, job life balance, achievement, recognition, interpersonal
relations, personal and social status, and work itself (Susanty & Miradipta, 2013).
Academic staff are regarded as the mainstay of educational institutions because they
are at all times saddled with the exclusive assignment of nurturing and producing a
competent, outstanding and well trained graduate class (Aouadni et al., 2014). This
development has always made the issue of job satisfaction very pertinent among
academic staff (Fung, Ahmad, & Omar, 2014).. The insights and thoughtfulness of
(Hochwarter, Ferris, Zinko, Arnell, & James, 2007) and (Pettit, Goris, & Vaught, 1997)
inspired the theoretical foundations of this current research.
Nevertheless, doing more research in order to empirically explain better on intrinsic

motivation, extrinsic motivation and university reputation is needed as predictors of job
satisfaction in higher educational institutions because very few organizations regard the
criteria of academic job satisfaction importantly (Bodla, Hussain, & Chen, 2014).
Perhaps, this realization has led the researcher to confirm the need for research to be
carried out using these constructs as predictors of academic job satisfaction earnestly
(Da Wan et al., 2015). Therefore, this study is aimed at identifying the determinants of
job satisfaction in Malaysian public universities with the cardinal design to ascertain the
level of job satisfaction or dissatisfaction normally associated with academic staff. This
paper intends to fill the gap in the current literature by empirically testing the influence
and importance of intrinsic motivation and extrinsic motivation moderated by university
reputation, on job satisfaction.
LITERATURE REVIEW
Factors Affecting Job satisfaction of Academic Staff
The crucial role that universities as well as its academic staff plays in educational
development as well as in the area of grooming a well cultivated class of sound and
71
highly qualified and exportable graduates have stimulated the interest of many
researchers to divert more interest on the study of job satisfaction (Long, Xuan, Wan
Ismail, Abd Rasid, & Kowang, 2014). Even though very few organizations care so much
about their employees’ job satisfaction but those that care about employee output surely
would always address the need and feelings of their staff and conversely, provide them
with the requisite enabling environment to not only succeed in their job but to also see
that they are satisfied (Hauff, Richter, & Tressin, 2015). It is when employees maintain
such a positive disposition and attitude that will lead to a spark of motivation among
employees to perform their job with vigour and tenacity (Teixeira & Barbieri-Figueiredo,
2015). Research has demonstrated in the past that it is the boosting of these behavioural
concerns that results in lower staff turnover and enhanced productivity at work (Bowling,
Khazon, Meyer, & Burrus, 2015). lately, further research by (Kampkötter, 2014) have
also shown that rewards such as opportunities for career progression at work, regular
promotions, appreciations and earnings significantly affects job satisfaction (Peng & Mao,
2015).
The principal factors that has featured in the study of job satisfaction among employees
over time includes commitment, efficiency, job stress, productivity, absenteeism and
relationship among employees (Coughlan, 2014). Notably, the job satisfaction of
academic staff have been found to be related to university education functions related to
their daily work chores (Bodla et al., 2014). Previous empirical studies has corroborated
that significant relationship exist between job stress, organizational culture, co-worker
relationship, environmental climate and job satisfaction of university academic staff (Itiola,
Odebiyi, & Ezekiel, 2014).
Ample evidence exist to suggest that constructs like atmosphere, supervisors role,
research, students’ performance, workload, experience, facilities and policies,
remuneration have all contributed to job satisfaction among university lecturers (Duffy,
Bott, Allan, Torrey, & Dik, 2012). Some previous studies in this realm have revealed the
association of factors like decision making, leadership styles, deviant behaviour, and
work engagement with job satisfaction of academic staff (Farooqui & Nagendra, 2014).
Also, role stress, intention to stay, family work life balance, organizational trust, work
performance, and effectiveness have all been found to influence academic staff in public
universities in Malaysia (Wilczyńska, Batorski, & Sellens, 2016). The possible response
to this research question may help provide vital information to academic lecturers in
unravelling as well as understanding the underlying answers concerning which
determinants works better in the linkage between motivation, organizational climate and
job satisfaction.
In the subsequent segment, the conceptual framework is accessible, and the hypothesis
are suggested. The hypothesis of both the main and moderating effect are confirmed
using sample from five public universities in the northern region of Malaysia. Following a
discussion of results, we outline the implications and limitations of our work, and suggest
directions for future research.
Job Satisfaction
Job satisfaction is described as the perception and evaluation that an individual may
possess about the job he or she is doing (Sempane et al., 2002). Following this thought,
Schneider and Snyder (1975) came up with a view that job satisfaction is an individual
72
appraisal of the existing circumstances and situations of the consequences that comes
up given the job that one is embarking upon. Similarly, job satisfaction has been defined
and measured in a multiplicity of ways. Bhuian and Menguc (2002) contended that job
satisfaction is the extent to which an employee makes sense confidently or depressingly
about the intrinsic and/or extrinsic aspects of one’s job. Though a specific and unitary
meaning of job satisfaction may not have established, the current research submits that
intrinsic motivation, extrinsic motivation and university reputation are the essential
variables that ought to be given consideration and attention in order to better
comprehend the concept of job satisfaction. These variables will be conversed in this
article.
Employee Motivation
Ensuring the sustenance of business dealings in an organization could lead to greater

heights of employee motivation, which can reduce the level of turnover significantly
(Ncube & Samuel, 2014). In the academics, in particular, motivation is still seen as the
driver for successful employee retention, given the fact that contacts among employees
and clients or visitors occurs frequently. (Marshall et al., 2016). Therefore, it is safe to
submit that the higher the level of motivation of employees, the happier they are, and as
such the more productive they may be in their interactions with clients, this may also lead
to a situation where the clients receive better service with greater enhancements in
organizational efficiency. (Dobre, 2013). Employees who are motivated are one of the
conditions for organizational success. Motivated employees tend to focus their effort and
direction towards the achievement of the goals laid down by the organization (Manzoor,
2012). The importance of motivation lies in its ability to drive an individual to work hard.
In this regard, Musmiliana and Mustaffa (2012) related that employee motivation towards
work is described as the way the employee works and this is expressed through their
service towards the organization. Highly motivated employees also have a tendency to
be more loyal and dedicated to their jobs and their performance is often directed to the
organization’s best interests. Employee motivation has been evidenced to positively
relate to organizational performance in prior studies. In particular, Muogbo (2013)
indicated the relationship between employee motivation and organizational performance
in that employees, who are motivated, influence their performance. This is consistent
with the equity theory that stresses on the fairness in the remuneration package offers
that generates higher workers’ performance. In related studies, employee motivation was
identified to have a significant relationship with performance, with the motivational factors
within employees enhancing their productivity (Jesarati et al., 2013). Aside from the
above studies, Chowdhury (2007) revealed a positive relationship between employee
motivation and the performance of the organization. They found firm performance to
heighten with the increase in the motivation among employees. In the same line of
argument, financial rewards influence the employee performance and bring about their
motivation. In other words, workers who are financially satisfied contribute to the
performance of the firm (Manzoor, 2012). Contrastingly, Dobre (2013) found no
significant influence of payment on employee motivation but rather non-financial factors
such as nonfinancial rewards, social recognition and performance feedback are the
factors that positively influence the same. Past studies urge future ones to examine the
relationship between motivation and job performance (e.g., Iwani, 2015; Nuansate, 2016;
Romle, 2014).
Intrinsic Motivation and Job Satisfaction
73
Intrinsic motivation is described as the feelings which is derived that does not contain
any obvious external rewards (Cerasoli, Nicklin, & Ford, 2014). In this context, intrinsic
motivation denotes to the inherent, rational ability of a person to engage ones interest
and use ones capacity, and in so doing to achieve ideal changes (Mekler, Brühlmann,
Opwis, & Tuch, 2013). According to Mekler, Brühlmann, Tuch, and Opwis (2015),
people are said to be intrinsically motivated when they desire attention, satisfaction of
interest, self-expression, or personal fulfilment at work.
Empirically intrinsic motivation has been shown to have positive relationship with job
satisfaction (Masvaure, Ruggunan, & Maharaj, 2014; Cerasoli 2014; Araslı, Daşkın, &
Saydam, 2014; DePasque & Tricomi, 2015; Zhao 2016). On the other hand quite a few
studies also demonstrated negative relationship (Lambrou, Kontodimopoulos, & Niakas
2010) and (Du Preez, 2013). Therefore it is proposed that,
Proposition 1. Intrinsic motivation is positively associated with job satisfaction.
Job Satisfaction and Extrinsic Motivation
Existing literatures have demonstrated that extrinsic motivation is effective in influencing

and shaping the job satisfaction of employees (Mafini & Dlodlo, 2014; Mafini, & Dlodlo,
2014;Belle & Cantarelli, 2015; Kappel, 2012; Gagné 2015).
Many studies in the past have attempted to identify the various predictors of job
satisfaction. And according to Wu and Lu (2013) extrinsic motivation have been have
demonstrated to be one of the most important determinants. More so, extrinsic
motivation does have a positive relationship with job satisfaction.(Benedetti, Diefendorff,
Gabriel, & Chandler, 2015; Hee, Hayati, & Kamaludin, 2016;Li & Wang, 2016). However
extrinsic motivation also recorded negative relationship with job satisfaction at alternate
times (Khalatbari, Ghorbanshiroudi, & Firouzbakhsh, 2013; Li, Hu, Zhou, H., He, Fan,
Liu, & Sun, 2014; Cho, & Perry, 2012).
Proposition 2: Extrinsic motivation is positively associated with job satisfaction.
Research Framework
Intrinsic
Motivation
Job Satisfaction
Extrinsic
Motivation
University
Fig1: Research Framework Reputation
74
University Reputation as Moderating Role
University reputation, has different meanings for different groups and also to scientific
circles. Usher and Medow, (2009) sees university reputation as a form of social capital
within the organisation of higher education that can be transformed into economic capital
defined university reputation as the collective representation of a university’s multiple
elements (internal and external), including the media-hold of the university over a period
of time (Jiewanto, Laurens, & Nelloh, 2012). But for the purpose of this study, university
reputation is defined as a perceptual representation of a university’s past actions and
future prospects that describes the university’s overall appeal to all its key constituencies
when compared with other leading rivals.
Proposition 3: University Reputation moderates the relationship between Intrinsic

Motivation and Job Satisfaction.
Proposition 4: University Reputation moderates the relationship between Extrinsic

Motivation and Job Satisfaction.
Respondents of the Study
The total number of academic staff in 5 public universities ( Universiti Utara Malaysia,
Universiti Sains Malaysia, Universiti Teknologi MARA Arau, Perlis, University Teknologi
MARA, Kedah and Universiti Malaysia Perlis) located in the northern region of Malaysia
is 5152 (obtained from websites of UUM, USM, Unimap, UITM Arau, and UITM Merbok
2018). The northern region of Malaysia was chosen because of the consideration of
financial constraints and paucity of time in conducting the research. Using a quota
sampling method, a total of 505 questionnaires was distributed using hand delivery and
online survey methods. Out of the 505 questionnaires, only 328 questionnaires was
found to be useful for further analysis, which indicates a response rate of 64.9%. Most
of the respondents were female with 224 (68.3%) while the remaining 104 (31.7%) were
male. Previous studies are in alignment with the same distribution regarding the gender
of respondents in Malaysia. For example, this study is consistent with the findings of
(Hanaysha & Tahir, 2016) where the majority of the academic staff in public universities
in northern Malaysia were female 73.1% compared to their male counterparts 26.9%.
Concerning their age group, 47% of the respondents were within the age group of 31-40
years with 154 respondents.
Measurements
Five-point Likert scale was used in all measures, whereby 1 represents strongly disagree,
2 represents disagree, 3 represents neutral, 4 represents agree and 5 represents
strongly agree. Firstly, job satisfaction measured by 20 items developed by (Weiss,
Dawis, & England, 1967).Intrinsic motivation and extrinsic was measured using 15 items
each developed by (Amabile, Hill, Hennessey, & Tighe, 1994). Lastly, university
reputation was measured by 22 items developed by (Eser Telci & Kantur, 2014).
Data Analysis
The current analysis was done by engaging SPSS 23.0 for all descriptive analysis and
partial least squares (PLS) path modelling using Smart PLS 3.2.6 software to perform
75
data analysis (Wold, 1985; Hair, Hult, Ringle, &Sarstedt, 2014; Wong, 2013; Henseler,
Ringle & Sinkovics, 2009). A PLS model is preferably analysed and interpreted in two
stages (Hair et al, 2014; Valerie, 2012); the measurement model and structural model to
test the hypothesis.
Measurement Model
The three steps procedures for assessing the measurement model in PLS-SEM
approach for data analysis are explicitly, individual item reliabilities, convergent validity
and discriminant validity Hair, Ringle and Sarstedt (2011), and Gotz, Liehr-Gobbers,
and Krafft (2010). Accordingly, the indicator loadings (factor loadings) should be higher
than 0.70. (Hair et al. 2014; Hair et al. 2011).Relying on the above recommendations,
this current study adopts the threshold for factor loadings at 0.70 as being significant.
As made known in Table 1 and Figure 2, all item loads a range from 0.665 to 0.793 into
their respective construct. Regarding convergent validity, it is described as the extent to
which item truly represents the intended latent construct and indeed correlate with
other measures of the same latent construct (Hair et al., 2011; Valerie, 2012) the
convergent validity for each construct was assessed. Convergent validity was
evaluated by scrutinising the average variance extracted (AVE) and composite
reliability (CR) of 0.70 (Hair et al., 2011; Valerie, 2012). Chin (1998) recommends that
AVE of more than 0.5 and the CR of 0.7 or above are deemed acceptable. As can be
seen from Table 1, all loadings and AVE are above 0.5 and the composite reliability
values are more than 0.7. Therefore, it can be concluded that in this study, the issue of
convergent validity has been addressed and established.
76
Fig. 2: Construct Validity for Measurement Model
Table 1 Results of the Measurement Model- Convergent Validity

Construct Items Loadings Cronbach’s Composite Average
Alpha Reliability Variance
Extracted
Intrinsic IM11 0.690

Motivation
(IM)
IM13 0.701 0.880 0.903 0.509
IM2 0.774
IM3 0.776
IM4 0.677
IM5 0.688
IM6 0.714
IM7 0.683
IM8 0.712
Extrinsic
Motivation
(EM)
EM13 0.724 0.840 0.878 0.508
EM14 0.699
EM2 0.728
EM3 0.686
EM4 0.748
EM6 0.734
EM8 0.665
University
Reputation
(UR)
77
UR1 0.755 0.961 0.964 0.548
UR10 0.751
UR11 0.748
UR13 0.699
UR14 0.633
UR15 0.766
UR 16 0.786
UR17 0.693
UR18 0.668
UR19 0.769
UR2 0.760
UR20 0.752
UR22 0.736
UR3 0.757
UR 4 0.678
UR5 0.751
UR 6 0.759
UR 8 0.790
UR 9 0.793
Job Satisfaction
JS12 0.655 0.878 0.902 0.508
JS 14 0.740
JS 15 0.748
JS 16 0.757
JS 17 0.777
JS 18 0.741
JS 19 0.658
JS 20 0.696
JS 9 0.626
In deciding the criteria for discriminant validity which is the next step, it was stated by
Hair et al. (2011) that the discriminant validity criterion stipulates that each latent
constructs‘AVE should be higher than the construct‘s highest squared correlation with
other latent construct (Fornell–Larcker‘s, 1981) and the indicators loadings should be
greater than all its cross loadings. In the present study, discriminant validity of the
78
measures was assessed through the Fornell and Larcker‘s (1981) criterion as well as
the HTMT Ratio. Similar with correlation matrix depicted in Table 2 and Table 3.
Table 2: Discriminant Validity (Fornell-Larcker)

EM IM JS UR
EM 0.713
IM 0.545 0.714
JS 0.498 0.544 0.713
UR -0.512 -0.510 -0.600 0.740
Table 3: Discriminant Validity (HTMT Ratio)

EM IM JS UR
EM
IM 0.610
JS 0.567 0.605
UR 0.561 0.544 0.642
However, recent criticism by Fornell-Larcker (1981) showed the method of reporting

discriminant validity criterion because it no longer regarded as a reliable basis for the
detection of the lack of discriminant validity (Dijkstra & Henseler, 2015). The heterotrait-
monotrait ration of correlations is now the preferred criteria for measuring DV. All the
same, this study has tested the discriminant validity using this new suggested method
given the result shown in Table 4.10. If the HTMT value is greater than HTMT0.85 value
of 0.85 (Klein, 2001), or HTMT0.90 value of 0.90 (Gold, Malhotra, & Segars, 2001), then
there is a problem of discriminant validity. As all the values passed the HTMT0.90 (Gold et
al., 2001) and also the HTMT0.85 as shown (Klein, 2011) in Table 4.10, indicating that
discriminant validity has been ascertained.
Structural Model
Hypothesis has disclosed a positive relationship between intrinsic motivation and job
satisfaction (β= 0.242, t=3.707, p=<0.000) supporting Hypothesis 1. Hypothesis 2
predicted that extrinsic motivation is significant and positively related to job satisfaction.
Results results shown in (Table 4.12, as well as figure 4.4) indicated that the relationship
with job satisfaction was significant (β= 0.134, t=2.535, p=<0.006) therefore not
supporting Hypothesis 2. Hypothesis 3predicted that university reputation is moderating
the relationship between intrinsic motivation and job satisfaction. As shown in Table 4.12,
an insignificant relationship between intrinsic motivation and job satisfaction was
revealed (β= -0.397, t=1.154, p=<0.124). Lastly, Hypothesis 4 posits that there is
significant relationship on the moderating influence in the relationship between extrinsic
79
motivation and job satisfaction. But given the result revealed in table 4.12 (β= ‒ 0.133,
t=0.443, p=<0.329), it suggests that hypothesis 4 wasn’t supported.
Figure 3: The structural Model
Table 4
Structural Model Assessment with Moderator (Full Model)
Hypothesis Relation Beta SE T-Value Findings
H1 Intrinsic 0.242 0.05 3.707*** Supported

Motivation->Job
satisfaction
H2 Extrinsic-> Job 0.134 0.65 2.535*** Supported

satisfaction
Motivation
H3 Intrinsic -0.397 0.34 1.154 Not

Motivation*University Supported
Reputation-> Job
Satisfaction
H4 Extrinsic -0.133 0.30 0.443 Not

Motivation*University supported
Reputation-> Job
satisfaction
Note: *** Significant at 0.01 (1 tailed)
Result and Discussion
80
In general, intrinsic motivation is significantly related to job satisfaction; the outcomes of

this study is congruent with previous conclusions, except the finding vis-à-vis to extrinsic
motivation. The finding involving to extrinsic motivation was also supported as
hypothesized; it shows that there is a relationship between extrinsic motivation and job
satisfaction. Therefore, let‘s examine this finding first. The present findings indicated that
there is positive relationship between intrinsic motivation and job satisfaction and is
consistent with the findings of Munyengabe, Haiyan, Yiyi, and Jiefei, (2017) who
demonstrated that intrinsic motivation of academic lecturers leads to higher job
satisfaction because they are motivated to want to carry out their work due to curiosity,
competition, recognition and challenges they found in their job more than the reward for
monetary compensation.
The findings of this study also revealed that the motivation of lecturers in Malaysian
universities especially from the northern region is associated with social factors that are
related to the communities. The satisfactory level of intrinsic motivation of lecturers might
be concluded from cultural perspective of Malaysian society of the lecturers who are
given respect and valued as important personalities in the society. In view of this, one
will deduct that the society where the lecturers live has role to play in their everyday
activities which increase the level of their motivation and fulfillment. From the above, we
may deduce that the society recognition of the activities of the lecturers is the key factor
to maintain high level of motivation of workers. Similarly the findings of previous studies
of Munyengabe et al (2017), Farid (2011), and a host of others revealed that social factor
has be influential factor in increasing the level of intrinsic motivation of academic staff.
The findings of this study which agreed with the findings of Munyengabe et al (2016) also
indicated that there is pure interest in career by lecturers in universities which played
significant role in increasing their commitment to remain at their lecturing job. The
findings also are in line with that of other researchers such as Broussard and Garrison
(2004) who argued that teachers who are deprived of internal motivation are less
productive in their classroom activities.
Another possible reason for the result could be fear of the working law or “code of
conduct” which referred to avoidance punishment. It is common that some workers tried
to prevent any consequence when results are different from the overall target of
organization (McGregor, 1960). This could mean that lecturers are intrinsically motivated
in the lecturing work. The code of conduct plays important role in redressing low
motivation for better achievement in everyday lecturing job. The classroom environment
is another reason that makes lecturers and students feel comfortable during teaching
and learning process. Conducive classroom environment is helpful at primary and
secondary school levels as well as at the university level. Good environment motivates
lecturers in their daily teaching activities (Munyengabe et al (2016). This study also
agreed with the previous studies where positive environment help teachers and students
feel sense of belonging, trust, take risks, ask and respond to questions, and feel
encouraged to tackle challenges, (Sheffler, 2009).
This finding seems to suggest that extrinsic motivation is not a factor that could influence
job satisfaction. It goes to show that lecturers don’t feel motivated and as a result, might
not feel committed to their teaching duties. Consequently, this may hinder them from
performing their job better simply because they don’t feel satisfied. (Ogbogu, 2017: Pepe,
2010; Federici & Skaalvik, 2012). All affirmed that the important influences that stimulate
lecturers to accomplish their job better extrinsically are; conducive working environment,
recognizing and rewarding outstanding performance, regular payment of salary,
provision of welfare packages, and strengthening retirement plans etc. Self
Determination Theory according to ( e.g. Deci and Ryan, 1985) suggest that monetary
81
incentives in form of salaries and compensation packages plays a significant role in

determining employee’s extrinsic motivation.
Additionally, the support for hypothesis 2 as reported in the present study is not
surprising because previous researches also reported similar result (Wesly Hutabarat,
2015; Anghelache, 2015; Amin, 2015; Salehi & Taghavi, 2016). In particular, positive
relationship was found between extrinsic motivation and job satisfaction (Zhao, Ghiselli,
Law, & Ma, 2016; Dias, Leite, Ramires, & Bicho, 2017; Gelard & Rezaei, 2016). Similarly,
Judge, Weiss, Kammeyer-Mueller, Hulin, (2017) reported that employees who achieve
a high intrinsic and extrinsic motivation, are more likely to demonstrate high satisfaction
in their job. Furthermore, Nathan, Bowling, Khazon, Meyer, and Burrus (2015) also
found that motivational dimensions have both intrinsically and extrinsically influence on
job satisfaction of academic staff. Based on the result, salary or remuneration could be
a factor that affects job satisfaction of academic staff in the northern region of Malaysia.
Regarding the moderating effects of university reputation in the present study,

hypothesis (H3 and H4) were rejected. One possible reason for the rejection of these
hypothesized relationships might be because the public university environment in
Malaysia is typified with factors that tend to drive employees motivated by the dimensions
of both intrinsic and extrinsic motivations, however the setting does not support factors
that lead to job satisfaction for instance, affiliation, flexibility, recognition, material and
other external forms of reward(Anghelache, 2014;Salehi, Taghavi, & Yunus, 2015;
Homberg & McCarthy, 2015). Another possible explanation for the lack of support for
these hypothesized relationships is that motivation only takes place when there is a
connection or common elements are found between those of the employees and the
organization they serve (Kristof 1996; Verquer, Beehr, & Wagner, 2003). When there are
no common elements or similarities, no motivation takes place and consequently no
anticipated result will come to fruition among employer and employees. This result
submits that staffs whose ideals and objectives are well-suited with those of their
employers or universities are likely to attain greater job satisfaction than their fellow
friends or associates who don’t attain the same satisfaction with the organizations. Thus,
when staff align with their organization’s objectives and purposes, the higher the chances
that would be able to agree and accept with task given to them to perform by their
organizations especially if the organizations are willing and able to give the chance to
employees to prove that their efforts will impact on the recipients of their work outcomes
(i.e. students) (Hackman and Oldham 1976; Grant 2007).
Conclusion
In conclusion the current research has shown that motivational factors are good for
enhancing job satisfaction and also goes to display how university reputation
theoretically moderates the relationship between the independent variables (Intrinsic
motivation, extrinsic motivation) and dependent variables (Job Satisfaction). The
theoretical framework of this study was added to the domain of social exchange and
attribution theories by examining the influence of motivational theories on job satisfaction
of academic staff teaching in universities located in the northern region of Malaysia.
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87
OCCUPATIONAL SAFETY MANAGEMENT PRACTICES: THE

ROLE OF SAFETY MOTIVATION
Fadzli Shah Abd Aziz 1a, Mohd Faizal Mohd Isa 2a, Wan Shakizah Wan Mohd Noor 3a,
Zuraida Hassan 4a, Syazwan Syah Zulkifly 5a
a
Email: f.shah@uum.edu.my, m.faizal@uum.edu.my,
shakizah@uum.edu.my,
h.zuraida@uum.edu.my , syazwan.syah@uum.edu.my
Abstract
Safety motivation plays the crucial role in the occupational safety development at the workplace.
It reflect employee’s attitude and action towards accident prevention and safety goals. This study
purposely to examine the relationship between safety management practises with safety
motivation .Based to the occupational safety literature review, Theory plan behaviour was applied
to develop conceptual framework for this research. In this study, safety management practise was
independent variable and safety motivation was dependent variable. The instrumentation in this
study was adapted from the published work of previous studies. Quantitative approach was
applied in methodology of this study which involved 615 respondents among insured employees
who registered with Social Security Organization (SOSCO). The data gathered from the survey
were analysed using Statistical Package for Social Science (SPSS) for descriptive and inferential
statistics analysis. Regression analysis revealed that safety management practise had positive
relationship significantly with safety motivation. This study also found that the organisation should
give priority to improve their safety accident prevention programme at the workplace by enhance
employees’ knowledge, skills, attitude and abilities. In addition, change agent should be taken
into account during safety training implementation for influencing employees’ motivation. It can
be concluded that motivated employees perform better in safety practises and they are the
change agent to influence others at the workplace.
Keywords: safety management practise and safety motivation
INTRODUCTION
Occupational safety issues become more complicated and dynamic at the workplace
due to various systems and operations. According to Goetsch (2008) new technologies
and complicated operating systems create the new hazard situation. The safety activities
and accident prevention program need employees’ and employers’ commitment and
involvement (Goetsch, 2010). The safety culture and safety management practice play
the crucial role to enhance safety performance (Griffin & Neal 2000, Zohar 2003, Goetsh
2010).
Safety motivation also plays the crucial role for accident prevention at the
workplace. Campbell (1990), explained that motivation comprises with combined effect
of three choices namely; the choice to expend effort, the choice of which level of effort
to expand and choice to continue in the expenditure of that effort. In addition, based on
Neal & Griffin definition (2006), safety motivation is individuals’ willingness to strive in
order to perform safety behaviour in their daily working basis. This is vital to every
organization for it gives impact and induces the employees’ behaviour in attaining the
intended goals.
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LITERATURE REVIEW
Safety Management Practices
They are no specific element for the safety management practice definition. According
to Kirwan (1998), safety management practice relates to the practices, roles and
functions regarding to the workplace safe environment. At the same time, there is no
specific term either has been used to describe what safety management practise is. As
for example, Vredenburgh (2002) applied the management practise term in his study on
organizational safety. WhileChing&Shu (2014) used the safety management system
practise in their study. Hayes, Perander, Smecko and Trask (1998), in their study
revealed that safety management practise was one of the elements of work safety scale
and found that safety management practise were the best indicator of job satisfaction.
While Mearns, Whitaker and Flin (2003) stated that, the safety management practice
should consist with management commitment, communication and employees’
involvement. Furthermore, Vinodkumar & Bhasi (2010) mentioned that safety
management practice is the implementation of policies, strategies, procedures and
activities of the management of an organization. Labodova (2004) stated that the safety
management practice is a tool which is organized in an organization and made to control
the hazards from harming the employees. It is the vital item for it will determine how
effective the safety management is being applied and how far it complies with the
legislation applicable to the organization.
In effort to recognize the so-called safety management practices that would predict the
safety performance in an organization, numerous of studies have been conducted. All of
the researches were made in order to reveal how safe is the work atmosphere and its
compliance in an organization. Several scholar in occupational safety study field like
Cohen et al. (1975), Cohen (1977), Griffiths (1985), Harper et al. (1997) and Smitth et al.
(1975) had explained that organization with a few rate of accidents were categorized by
some of these aspects namely; safety officers possessed high rank, personnel
involvement by management in safety activities, superior training for new workers,
frequent training for existing workers, displaying safety posters o identify hazards, a
procedure in promoting and job placement, frequent communication amongst workers
and supervisors regarding safety and health, frequent safety inspections, higher priority
for safety in meetings and decisions concerning work practice, thorough inspection of
accidents and frequent attendance form senior managers during health and safety
meetings. To justify these items, the recent studies done by Vredenburgh (2002) stated
that employees involvement, safety induction or training, compensation system,
management commitment, employees’ feedback and communication as safety
management practise in the study of healthcare environment and risk management.
Therefore, there are no established instrument and dimension for measuring safety
management practise.
In this study, there were six safety management practises focused and there were
management commitment, safety training, workers involvement in safety, safety
communication and feedback, safety rules and procedures, and safety promotion
policies.
First and foremost element in safety management practices is the management

commitment whereas it plays the crucial role in any safety program. Donald & Canter
(1994) mentioned that it is an obligation in any management of an organization to be
aware regarding to the safety issues because they have the power over available
resources and not to mention the policies developer, theestablisher and implementer of
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working method. Based on Zohar (1980), he discovered that the management’s

commitment is a determent for any organizations to its safety program’s success.
Nevertheless, the safety commitment from top management must result in an observable
activity and should reflect in both behaviour and words (Hofmann et al., 1995). It is safe
to say that by having a good commitment in the management would provide a better
success in the program, which is held by the organization. Apart from that, there is also
safety and health training programme which is as important as the previous element in
the safety management practise. Through this element, we would be able to study and
evaluate on how effective the training programme in improving the safety in the
workplace. With adequate training, the organization will be having a more effective and
improving the quality of safety and health among the worker. In conjunction with this
element, Vinodkumar& Bhasi (2010) mentioned that effective safety training is the
essential part in every effective accident prevention and safety health programme. By
having it and implementing it in the organization, it allows the employers to foresee the
accidents hence improve the safety in workplace.
A study made by Vredenburgh (2002) identified that by practising a systematic,

comprehensive safety and health-training program for newcomer (workers) would
improve and be very beneficial in improving every employee’s safety and health level. In
addition, with several helpful methods such as a Mentor for employees and Buddy
System, it would assist those new employees in behaviour and behavioural skills
regarding to the safety, health and quality systems. Many previous studies revealed that
any organization having lower rate of mishaps was due to the effective safety training
that had been rendered to all employees.(Lee, 1998, Ostrom et al. 1993, Timmannsyik,
and Hovden2003, Cohen et al. 1975, and Smith et al. 1975).These items determine the
safety training effectiveness; training for new employees, safety issues discussion in
training sessions, emergency training, self-motivated to join the training programme and
hazard identification.
Next element is employee involvement, which is a technique that involves individuals or

group in upward communication flow in deciding on a decision. There are two ways in
making decision either it has no participation where the calls are only decided by the
supervisors or with the full participation where everyone is involved and connected to the
decision. By having such practise in an organization, it would permit the employees with
some authority, responsibility and accountability in any decisions thus involved both
management and employees in agreeing the goals and objectives (Cohen & Cleveland,
1983). It will somehow boost the employees’ moral in getting involved either individually
or collectively in safety management practise in their workplace. In conjunction to that,
Vredenburgh (2002) said thatthe workers themselves are the most appropriate individual
in order to advice or suggest for the sake of the organization improvement and its safety
and health issues. Thus, workers’ involvement in safety could be said as a management
practise and is measured by related to safety committee consisted with workers’
representatives, involvement of workers in safety related to decision making,
involvement in identify safety problems and consultation with workers about safety
matters.
Based on Pidgeon (1998), communication and feedback play a vital feature in

organization and its surrounding because through this feature, it will bring a credence
amongthe workers towards superior management. Through two-way communication
along with feedback with regard on safety and health issues, it will somehow nurture the
bond and hence bridge the gap between the employees and superior. This element is
as much of an important as that of other element stated previously. To add into account,
another study made by Cohen (1977) showed that by using communication and
feedback in his survey via questionnaire has proven to be the influential and benefiting
the safety performance level in the organization. According to Vinodkumar&Bhasi (2010),
by having a consistent communication regarding safety issues from both workers and
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superiors, it is a proven and useful management practise in enhancing safety in

workplace. Therefore, in determining safety communication, several items regard to it
are measured namely; communication of safety goals, hazard reporting system, open
door policy for safety issues and opportunity to discuss safety issues in meeting.
Safety rules and procedures are also could be described as a feature in preventing
accidents from happened at the workplace. According to Vinodkumar & Bhasi (2010),
the safety rules and procedures is a feature which would assist in improving the safety
behaviours among the workers should it to be implemented in the organization. In
another research by Cox and Cheyne (2000), they has clarified that this is an important
tool and somehow has a connection with accident rates. Futhermore, Glendon and
Litherland (2001) found that safety rules and procedures part of safety management
practise in construction industry.
Finally yet importantlyis the safety promotion policy whereas it is one of the safety
management practises and it is measured through items which related to safety
promotion policies like rewards and incentives, creating awareness among the workers,
safety week celebration, encourage employee to report safety matters, and safety
inspection and safety audit as a positive factor for promotions measurement. According
to Hagan (2001), safety promotion policies such as recreational activities, rewards and
incentives are being used in order to motivate the employee so they could perform their
routine and duty safely at workplace. Again in Cohen et al., (1979) the organization could
increase self-protection action among the employee and add interest in hazard control
programme on the workforce. Together with this, a reward system should be credited to
the workers by monitoring them in the organization and give them recognition which
would help modify in their behaviour (Vredenburgh, 2002).
Safety Motivation
The motivational aspects in many studies have been referred to as a source of energy,
desire to achieve, desire to perform better than others, responsive to rewards, perceived
behavioral control and intentions (Klehe & Anderson, 2007). These are the key drivers
influencing the behaviors to achieve the intended goals. In many respects, high level of
motivation leads to positive outcomes. Campbell (1990) describes motivation as a
combined effect of three choices: (a) the choice to expend effort, (b) the choice of which
level of effort to expend, and (c) the choice to persist in the expenditure of that effort.
Furthermore, Neal and Griffin (2006) define safety motivation as an individual’s
willingness to exert effort to enact safety performances and the valence associated with
those behaviors.
In a study among 53 participants, Vohs et al. (2007) find there are stable individual
differences in the motivation. In workplace safety, previous studies have largely focused
on ergonomic factors, personal selection, and training as primary antecedents, thus
ignoring the potential role such as motivation (Probst & Brubaker, 2001). Hinsz, Nickell
and Park (2007) find motivation for safety performance among 162 of the employees
working in turkey processing plant is substantially influenced by attitudes and subjective
norms. Built on the theory of intentional behavior, their study suggested “There is
significant research on intentions and behavior that serves as fertile conceptual ground
for considering factors that contribute to employees’ behavior in work settings.”
Accordingly, the results indicate that there is a strong positive relationship between the
intentions and self-reports of behaviors to keep the food safe and uncontaminated.
In a data collected from 700 employees working in an Australian hospital, Neal and Griffin
(2006) find that individual safety motivation was associated with increased in self-
reported safety performance and reduction in accidents. Probst and Brubaker (2001)
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find that safety motivation had a lagged effect on safety compliance 6 months later. As
long as positive perception sustains, safety motivation can have a long lasting effects on
safety performance. The employees are more willing to carry out activities that do not
necessarily contribute to their own safety but that do help to make the working
environment safer. In addition, the study had shown a reciprocal relationship between
safety motivation and safety participation over time. It appears that the act of
participating in safety activities can lead to further increase in safety motivation. This is
because individuals who carry out discretionary activities such as participating is safety
walk receive positive reward and encouragement, which motivates them to carry out
further activities. Merely complying with safety requirements is unlikely to generate
reward or encouragement, which may explain why compliance did not have the same
effect on motivation.
A study by Zacharatos (2001) in manufacturing industries suggests that motivation plays

a crucial role to change employees’ behaviour towards working safely. Neal (2006) also
find safety motivation has a strong link with employees’ safety performance during
performing the job. Neal (2000) stated that safety motivation also influenced safety
climate and safety performance at the workplace. According to Wallace and Vodanovich
(2003) more conscientiousness people perform better in safety because they have
higher level of motivation.
Based the discussion above the research framework was developed as depicted in
Figure 1 below
Safety Management Practices Safety Motivation
Figure 1: The Research framework
This study was involved the respondents among insured employees who registered with
Social Security Organization (SOSCO) and had experienced in commuting accident.
The Social Security Organization (SOCSO) headquarters’ officer who is responsible on
the commuting accident programme was contacted and further detailed was then
explained. Then, the questionnaires were distributed to targeted organization and
selected employees are required to fill in the questionnaire completely prior sent it back
to the researcher A total of 615 completed questionnaires were returned with the
response rate of 72.3 percent. The survey questionnaire’s was prepared in two
languages’ which are in Bahasa Melayu and English .The scale in each item of
questionnaire allowed the respondents to indicate the extent of their agreement to the
given statement. In this study, the Likert Scale was used and values from 1 for “strongly
disagree” to 5 for “strongly agree”. In this study both geographical disproportionate
stratified and convience sampling had applied for data collection. The reason of using
geographical disproportionate stratified was due to it was more reliable to decide the
sample will represent all subgroup population (Cavana et al., 2001). There are five areas
have been chosen in this study which are Northern (Kedah, Perlis, Pulau Pinang, Perak),
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Middle (Kuala Lumpur, Selangor, Negeri Sembilan), Southern (Melaka, Johor), Eastern
(Terengganu, Kelantan, Pahang) and East Malaysia (Sarawak and Sabah)
Based on the completed survey, 314 (51.1 %) of respondent are male while the female
respondents’ was 301 (48.9%). The respondents in this survey consist four type of races
which known as Malays 406; followed by Indian 102; Chinese 98; and 9 respondents
from others ethnic groups. For the age section, there is no big gap between each age
category. There was a mix of various ages among the workers and in this study the
minimum age for this survey was 18 years old and the eldest employees was 55 years.
Majority of the respondents’ age are in between 25 and 34 years old and for those age
in category 18 to 24 years old (76), 25 to 34 years old (214), 35 to 44 years old (184), 45
to 54 years old (119) and 55 years old and above were 22 respectively.
The survey forms were divided into section of demographic information of the
respondents, safety management practices, and safety behaviour and safety motivation.
The Background Information had 11 items and requests information on respondents’
gender, ethnicity, marital status, age, academic achievement, job category, employment
status and working experiences,
Safety management practices was measured in term of management commitment (9),

safety training (6), working involvement (5), communication(5), safety rules and
procedures (5) and promotion policies(5). The total items were 35 items. Each measure
was adopted from previous studies.Safety Motivation was measured using 6 items
adopted from Vredenburgh (2002),which had been applied by Vinodkumar and Bhasi
(2010) in survey involved manufacturing employees.
The pilot study was conducted for the preliminary testing of internal consistency of the
measurement tools. The results showed that the reliability coefficient was above .7.
Sekaran (2000) recommended coefficient value of .6 and above for good internal
consistency. Therefore, the measurement tools were consistent, reliable and usable to
be used for data collection process.
DATA ANALYSIS
Reliability test was applied for all items in the questionnaire for assessing the internal
consistency of measurement tools. Then, it was followed correlation and hierarchy
regression analysis were performed to test the relationship between safety management
practices and safety motivation.
Table 1: The Reliability Test of Questionnaire Items
No. Measurement No. of items Cronbach’s alpha

1. Safety management practice 35 0.89
2. Safety motivation 6 0.85
3. All items 41 0.85
The Table 1 showed the reliability test, which was used for the variable items in the
questionnaire. In this summary the result showed that the Cronbach’s alpha was ranged
from 0.85 to 0.89 for the variables in the questionnaire and as for the all items the
Cronbach’s alpha was 0.85.All of the Cronbach’s alpha values in this study were
acceptable because it shows good internal consistency reliability for scale and the value
was higher than 0.80 (Pallant, 2007).
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Linear regression analysis was performed to investigate relationships between variables.

The study seeks to ascertain the causal effect of upon another; the effect of changes in
commuting accident upon employee’s safety management practices and safety
motivation. The statistical regression analysis result (Table 2) shows that there is a
significant relationship between predictors in commuting accident. The linear regression
model for the variable produced r2 = 0.081with p=0.001.
Table 2: Linear Regression Analysis on Safety Management Practices

Variables p r2
Safety Behaviour 0.001 0.081
The results of the linear regression analysis supported all hypotheses and therefore
fulfilled the objectives of this study. Safety management practices had positive
relationship with safety motivation. This is a clear indication that elements of safety
management practice a significant role in determining the safety behaviour among
insured person who involved in commuting accident. The elements were management
commitment, safety training, working involvement, communication, safety rules and
procedures and promotion policies. However, this aspect is almost neglected by many
organizations in providing solution to occupational accidents. It would definitely have a
great impact on safety behaviour if these elements were taken seriously by the manager
and top management
The findings also found that safety motivation plays the crucial role for safety
management practices at the workplace. Its means that safety motivation program plays
the crucial role to improve employees’ safety behaviour by enhanced theirs’ attitude and
behaviour towards safety goals. Highly motivated insured person influenced by good
safety management practices and employees attitude towards safety at the workplace.
Both of these antecedents are interlinked and together forced or motivated employees
to achieve safety behaviour performance. Furthermore, motivation to work safely is the
key driver for the employees to perform work in safe work environment. It was explained
that this driver is originated from the regulatory requirements and organizational safety
goals mandating compliance from the employees.
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SAFETY TRAINING AND SAFETY AWARENESS AMONG TVET

TEACHING STAFF IN PENINSULA MALAYSIA
*Syazwan Syah Zulkiflya, Affendy Zabkha Mohd Zain b ,Fadzli Shah Abd Aziza,
Wan Shakizah Wan Mohd Noora, Mohd Faizal Mohd Isaa
a
b
Department of Landscape Construction Technology,
IKTBN Negeri Sembilan, Malaysia
* Corresponding author: syazwan.syah.@uum.edu.my
Abstract
The Malaysian government recently has given dire attention on Technical Vocational
Education and Training (TVET) as the target source in providing high-skilled human
resources for the nation. Majority of TVET institutions are offering diploma and certificate
courses involving technical and vocational areas which deemed the teaching and learning
sessions to be conducted in workshops and laboratories. Safety awareness is important
especially in preventing industrial accident as there are existing hazards within the TVET
institutions which could cause the students as well as workers to involve in workplace
accidents. This study is a quantitative cross-sectional study conducted to examine the
determinants of safety awareness among the staff of IKTBN in Peninsula Malaysia. Safety
training had been selected as the independent variable whilst safety awareness was the
dependent variable. Self-administered questionnaire had been distributed and answered
by 346 staff of IKTBN Chembong, IKTBN Bachok , IKTBN Dusun Tua and IKTBN Kuala
Perlis. The results revealed that safety training and had significantly influenced safety
awareness among the teaching staff in IKTBN.
Keywords: Safety training, Safety awareness, occupational safety and health
INTRODUCTION
Recently, the government of Malaysia has given dire attention on Technical Vocational Education
and Training (TVET) as the target source in providing high-skilled human resources and also as
the key players in driving Malaysia’s economy. Institut Kemahiran Tinggi Belia Negara is one of
the TVET public institutions which offers a wide range of technical and vocational courses such
as the Automotive Technology related course (Heavy Machinery Mechanics, Motor Vehicle
Mechanics, Commercial Vehicle Mechanics, Automotive Paint Sprayer and Automotive Panel
Taper), Civil Technology courses such as Civil and Structure Supervisor, Landscape
Construction, Scaffolding and Tower Crane Operators courses. As IKTBN main roles is to supply
medium to high-skilled labours into the market, the offered courses are deemed to have their
practical sessions in the workshops as well as worksites. Such scenario makes IKTBN a high risk
learning institution where its area consists various hazardous machinery, equipment as well as
materials.
Occupational Safety and Health Act 1994 was enacted to ensure workplace safety and health in
Malaysia. The Act covers all industrial sectors including the public sectors and statutory bodies.
This includes the government TVET institutions such as IKTBN, where the Act stated that it is the
general duties of the management to ensure the safety and health of staff as well as the students’
while working or studying within the institutions’ compound. Thus, the management of IKTBN
shall comply with the provisions of the Act. The salient provisions of OSHA 1994 pertaining the
general duties of and employer are including to formulate the safety and health policy, establishing
the safety and health committee, to provide OSH related training to the employees.
Some previous researches revealed that most of the accident’s victims were not the
experienced workers but the fresh young workers (Koo, Nurulazam, Rohaida, Teo & Salleh,
2014; Schulte, Stephenson, Okun, Palassis, & Biddle, 2005). There is also a recommendation
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that occupational safety has to be exposed at their education stage in order to instill better
safety practices among young workers (Schulte et.al., 2005). Thus, the role of IKTBN
management especially the instructors could be consider as vital to promote and instill safety
behavior among the students (Zulkifly et.al., 2017).
As previously mentioned, workplace accident has a potential to occur in a TVET institution’s

workshop as well as laboratories. Samsul (2001) reported that two out of 12 Civil Engineering
workshops in a public technical university would involve in workplace accidents. Based on the
findings, the accident cases were namely shortness of breath caused by poisonous gas, cut by
sharp objects, burning, eye injuries, electric shock, hearing loss and broken limbs. Mohd Fairuz
(2014), on the other hands, stated that there are several cases of accidents recorded during
practical workshops in an advance TVET institutions in 2012 and 2013. There is study
suggested that safety practice adopted by lecturer is an essential element in safety of laboratory
(Saiful, Hassan, Mazlan, Patakor, & Salleh, 2011). In addition, Mohd Fairuz also proposed that
safety awareness and concern among are among the issues that must be discussed in detailed
in order to prevent workplace accidents within TVET higher learning institutions (Mohd Fairuz,
2014). The purposes of this study is to determine the safety awareness level of staff of the
selected IKTBN within peninsula Malaysia. Furthermore, this study aimed to determine the
influence of safety training on the safety awareness among the IKTBN teaching staff.
LITERATURE REVIEW
Safety Awareness
Fadzli et.al. (2002) found that the safety awareness level among rubber tapper in Malaysia is at
satisfactory level. In TVET higher learning institutions, there were also several previous
researches conducted mainly focusing on the students’ safety awareness. Wan Sabri (2012)
performed such study in a MARA High Skilled Learning Institution in Klang Valley and found that
chemical substances handling is the dominant factor that influences safety awareness. Besides,
Nur Fazreen (2013), in her study aimed to identify the level of awareness of safety practices in
engineering laboratories for diploma and degree students from Universiti Tun Hussein Onn
Malaysia (UTHM) and the results indicated that the levels of awareness were satisfactory.
Furthermore, there were also empirical studies conducted to determine the safety awareness
level among the teaching staff in TVET institutions. Mohd Fa'iz (2009) conducted a cross-
sectional study which the purpose is to identify the level of awareness among Universiti Teknologi
Malaysia (UTM) staff towards work safety at the workplace. Using a self-administered
questionnaire, the analysis of results showed that UTM staff had a high level of awareness
towards workplace safety based on their overall mean score of 3.95 (Davis, 1970). Previously,
Durrishah et al. (2004) has also conducted similar study towards engineering lecturer in UTM and
the result indicated the high level of safety awareness with the mean score of 3.97. On the other
hands, Mohd Fairuz (2014) conducted a study among 60 lecturers from ADTEC Batu Pahat, Johor.
As the result, his study showed that the level of lecturer awareness over safety practice is at high
level. A work from Zitty Sarah Ismail, Kadir Ariffin and Kadaruddin Aiyub (2015) determine the
safety awareness level among student in terms of performing research in laboratories. The result
showed that the safety level awareness among the students is at low level.
There are several factors contribute to safety awareness. Faizal et. al. (2014) in their study found
that an enhanced role of the safety and health committee at all levels could enhance the level of
safety awareness among the students of the Department of Civil Engineering in POLISAS,
Pahang. On the other hands, Wan Rosmini (2000) found that a strengthened safety and health
committee could provide greater safety and health awareness at a workplace.On the other hands,
Siti Nakiah Mohd Shaain, Noor Raudhiah Abu Bakar and Azharuddin Hashim (2015) found that
only safety policy influenced the awareness of safety practice among workers on a logistic
company. Whilst, safety training and safety committee did not influence safety awareness among
the workers in the respective company. Nurul Asmad (2015) conducted a study to examine the
factors that influence the level of awareness of safety and health among a factory’s employees in
Kedah. The findings revealed that employee commitment, safety training and participation in
Safety and Health Committee has a positive significant influence to the level of safety awareness.
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Safety Trainings and Safety Awareness
Mohd Fa'iz, (2009) found that safety policy and safety training committed by the employers are
the key factors towards the level of safety awareness among the workers. Besides safety policy,
safety training is also a factor influencing safety awareness. James (1997) found that there was
a difference in the level of awareness among forklift drivers who had received safety training as
compared to the driver who had not undergo such training. In Malaysia, similar study was
conducted by Nor Azimah Chew Abdullah and Hamirul Adli Hashim (2017). The study revealed
that safety training has positive relationship with safety awareness among forklift driver in
Malaysia’s manufacturing companies. In addition, Weidner et al (1998), Ahmad Tulka et al (2012),
Mustazar and Peng (2000), Zolkufli and Faiz (2012), Saidin and Hakim (2007) stated that training
on work procedures affects the level of awareness on workplace safety among employees.
Furthermore, training on safe work procedures in significant in increasing the level of safety
awareness (Hu et. al.,1998; Faizal et.al.,2014).
Based on above mentioned literatures, it could be summarized that safety training has significant
influence on safety awareness. Thus this study advocates that safety training conducted by the
management of IKTBN would influence safety awareness among teaching staff in IKTBN.
RESEARCH FRAMEWORK
Safety Training Safety Awareness
Figure 1: Research Framework
The framework for present research is depicted in Figure 1. This framework is adopted and be
based on previous conducted researches (Durrishah et al., 2004; Mohd Fa’iz,2009) as well as
with the reference to the provisions of Occupational Safety and Health Act 1994.
Sampling Design & Sample Size
Sample represents a population and can be calculated using a formula with 5 % of margin error
and 95% confidence level and it is mostly used in all research of social sciences (Hair et. al, 2003).
Simple Random Sampling was used for this study. The sample size was determined based on
table introduced by Krejie and Morgan (1970). The selection of the subject was performed using
random table (MacNealy,1999).
The survey was then being conducted on 346 teaching staff from IKTBN Chembong, IKTBN
Dusun Tua, IKBN Kuala Perlis and IKTBN Bachok. The reason for choosing these IKTBN is due
to the similar courses being offered.
Research Procedure
This study is a cross-sectional design of quantitative approach. For the purpose of data collection,
a set of self-administered questionnaire consists of items to measure the dependent variable and
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the independent variable was prepared and used. All the questionnaire items were designed
based on Likert scale from 1 to 5. Then, a pilot study has been conducted at IKTBN, Chembong
on 12th of July 2017 involving 55 staff. The results of the pilot study are as follow.
Table 1: Reliability (Pilot) Study

Variables Number of Cronbach’s alpha
items
Safety Awareness 5 0.756
Safety Training 4 0.829
Based on alpha value determined, the instrument could be accepted as the value was greater
than 0.6 (Hair et. al, 2003)
For research purpose, the questionnaires were subsequently distributed to 471 teaching staff
from IKTBN Chembong, IKTBN Dusun Tua, IKBN Kuala Perlis and IKTBN Bachok. All set of
questionnaires were answered with the response rate of 73.46%. Data analysis is divided into
two parts, namely descriptive and inferential analyses. The descriptive analysis method used is
frequency, percentage and mean to explain the level of safety awareness while correlation and
regression analyses were applied to determine the relationship between the independent and
dependent variable.
DATA ANALYSIS
Respondents’ Profiles
Table 2 shows that 72.8% of the respondents are male and females are 27.2% whom are aged
between 18 to 23. Majority of the respondents are 20 years of age which is 47.5%, followed by
37.1% from the age of 19. Only 4.3% is from 23 years of age. The data also revealed that all of
the respondents are single obviously as they are still studying in diploma level. Majority of the
respondents are Malay which is 86.7%, 12.8% are Indian and only 0.6% are Chinese. As most of
them are currently pursuing diploma, the highest education level is SPM. About 47% has been in
polytechnic for 2 years and about 40.9% is more than 2 years.
Table 2: Demographics background of respondents
Variables Frequency Percentage
Gender Male 235 67.9
Female 111 32.1
Age 18 – 30 years old 58 16.8
31 – 40 years old 153 44.2
41 – 50 years old 101 29.2
51 and above 51 9.8
Department Civil Technology 100 28.9
Automotive 117 33.8

Technology
26 7.5
Advanced Diploma
103 29.8
102
Others
Race Malay 299 86.7
Chinese 2 0.6
Indian 44 12.8
Education Level SPM/STPM 76 22.
Certificates 91 26.3
Diploma 137 39.6
Bachelor Degree 27 7.4
Masters & above 3 0.9
Service Tenure 5 year & below 58 16.8
6-10 years 153 44.2
11-15 years 101 29.2
16 years & above 51 9.8
Position Level Assistant Officer 121 35
Senior Assistant 154 44.5

Officer
31 9
Officer
40 11.5
Others
Total 346 100
Table 2 expresses the background of the respondents. For gender, 235 (67.9%) were male and
111 (32.1%) respondents were female. The table also shows the distribution of respondents
according to their age. The analysis shows that 58 respondents (16.8%) respondents were aged
18 - 30 years old, 153 (44.2%) respondents aged between 31 - 40 years old, 101 (29.2%)
respondents aged between 41 - 50 years old, and 34 (9.8%) respondents aged 51 years old and
above. Besides age, the results also reveals that 31 (9%) respondents were officers, 154
respondents (44.5%) were Senior Assistant Officer, 121 (35%) of them were Assistant Officer,
and 40 (11.5%) of the respondents are in other positions.
Table 2 also depicts the frequency distribution and percentage of respondents according to their
course department. The results shows that a total of 100 respondents (28.9%) were from the
Department of Civil Technology, 117 (33.8%) and 26 (7.5%) respondents are staff of Department
of Automotive Technology and Department of Advanced Diploma. Finally, 103 (29.8%) of
respondents are from other course departments. Furthermore, 137 (39.6%) of the respondents
own Diploma qualification, 91 (26.3%) respondents have Certificate as their highest education
qualification. Only 3 (0.9%) own a Master Degree and 27 (7.8%) of respondents hold Bachelor
Degree as their highest qualification. Meanwhile, 76 (22%) respondents were only at the SPM /
STPM level and 12 (3.4%) of respondents hold other educational backgrounds.
Based on the respondents’ background, it also could be concluded that majority of the
respondents had served to their institution 5 years and below which is 101 (29.2%). A total of 93
respondents (26.9%) had served between 6 - 10 years, 98 respondents (28.3%) have served for
11 - 15 years, and 54 (15.6%) of the respondents have served for 16 years and above.
103
Descriptive Analysis
Furthermore, descriptive analysis results for the variables are as depicted in Table 3. Based on
the result, the level of safety awareness among the IKTBN staff are the high-level variables (Davis,
1971).
Table 3: Descriptive Statistics

N Minimum Maximum Mean Std. Deviation
Safety
Awareness 345 3.80 5.00 4.57 .34
Correlation Analysis
The analysis correlation results revealed that all independent variables (safety training) is
positively correlated at 0.01 with dependent variable (safety awareness). The Pearson
Correlation coefficient value, r, is 0.521 which describes a moderate correlation (Sekaran &
Bougie, 2016) .The correlation result is summarized in Table 4.
Table 4: Correlation analysis

Safety Awareness Safety Training
Safety Awareness 1 . .521**
Safety Training .521** 1
**Correlation is significant at the 0.01 level (2-tailed).
Regression Analysis
Subsequently, multiple regression was conducted to identify the significance of the predictor as
well as to determine how strong the independent variable would predict the dependent variable
(Bougie & Sekaran, 2016). According to Pallant (2011), multiple regression allows more
sophisticated correlation among variable as compared to Pearson Correlation. Table 5.1 shows
the result which indicates the influence by independent variables towards safety compliance.
Table 5.1: Model Summary A

Model R R Square Adjusted R Square Std. Error of the Estimate
1 .681a .464 .461 .2490
a. Predictors:Training
b. Dependent Variable: Safety Awareness
The value of R square is shown as 0.464, which indicated the variable accounted for 46.4% of
the variance in safety compliance while the remainder is explained by other variables.
Table 5.2 below shows the result which indicates a significant influence by safety towards safety
awareness with be beta value of 0.324.
Table 5.2: Beta Coefficient A
Model variable Unstandardized Standardized t Sig

coefficients coefficients
Beta Std.Error Beta
104
Safety 0.231 0.031 0.324 7.469 0.000

Training
Dependent variable: Safety Awareness
Goldsmith (1987) as well as Hinze (1997) stated that when all employees participate in safety
training, there are some advantages in the creation of awareness in safety. In addition, Davies
and Tomasin (1996) stated that the effective safety training would improve the safety awareness
of a person. The results of present research revealed that the level of awareness of IKBN staff
towards occupational safety and health is high, with the mean score of 4.57 (Min = 3.8; Max =
5.0). This is mainly because of the regular inspections and workplace safety audits performed by
the Department of Occupational Safety and Health (DOSH) towards the public higher learning
institutes. Moreover, DOSH officers are always being invited by the management of IKTBN
throughout Malaysia to conduct speeches and safety workshops in regular basis. Taking IKTBN
Chembong as an example, DOSH officer will be invited to conduct training on occupational safety
and health in every beginning of a new semester.
Besides the level of safety awareness, Pearson correlation analysis also determined the positive
relationship between safety training and safety awareness among the IKTBN teaching staff.
Moreover, the multiple regression analysis concluded the 46.4% influence of safety training
towards safety awareness with the strength determined by standardized Beta value of 0.324. This
results matched with previous researchers (Durrishah et al. 2004;Mohd Fa’iz ,2009;Abd.
Hamid,2012; etc) which also determined the significant influences of safety training towards
safety awareness, besides other factors namely safety policy, safety attitude and safety
committee.
Based on these results, it could be concluded that the safety awareness among the IKTBN
teaching staff is at high level. This is the outcome from regular safety training conducted by the
management of IKTBN towards its staff as well as students.
LIMITATIONS OF STUDY AND FOR SUGGESTION FOR FUTURE RESEARCH
Present research is only conducted involving teaching staff in selected IKTBN. As a case study,
the results could not be generalized to all IKTBN as well as TVET providers throughout the country.
For future research, it is recommended that this study is replicated by other IKTBN as well as
TVET institutions throughout Malaysia.
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EMPLOYERS’ PERCEPTION TOWARDS HIRING PERSONS

WITH DISABILITIES
Siti Zubaidah Binti Othmana, Nor Syazwani Binti Mohamed Kamilb
a
School of Business Management, Universiti Utara Malaysia
Email: zubaidah@uum.edu.my
b
Customer Relationship Management, Takaful Ikhlas Berhad, Kuala Lumpur
Email: syazwanikamil@gmail.com
_____________________________________________________________________
_______
Abstract
Employers’ negative attitudes have long been regarded as a main barrier for employment for
persons with disabilities. This is because employer attitudes is presumed to relate with the hiring
behavior. Thus, this qualitative study was conducted with the intention to explore employers’
perception towards hiring persons with disabilities. The study involved semi-structure interview
with 10 employers from Klang Valley area who haven’t had experience in hiring persons with
disabilities. Responses from the respondents indicated that employer are still having negative
perception towards person with disabilities. Persons with disabilities are still seen to be helpless
who need assistance in doing work, and have limitation in terms of movement, hearing and
eyesight. The findings also found that having a policy in hiring persons with disabilities in the
workplace does not guarantee that disabled people will be hired. Even if the employers are
interested in hiring persons with disabilities, they prefer those who are highly productive; highly
independent and possess related qualifications, skills and abilities to perform the given task.
Based on the responses gathered from the interview, several suggestions have been put forward
to increase the participation of persons with disabilities in the employment. These include revising
the current rewards and incentives given to employers who have hired persons with disabilities;
promoting awareness among the employers on the positive side of persons with disabilities and
giving equal access to persons with disabilities on education and training so that they have the
relevant set of skills that are needed by the industries.
Keywords: employment; persons with disabilities; employers’ perception; Malaysia

_____________________________________________________________________
_______
INTRODUCTION
In Malaysia, many initiatives have been taken to improve the participation of
persons with disabilities in the workforce. These include a policy of 1% job opportunities
in the public sector for persons with disabilities; vocational and skills trainings at Pusat
Latihan Perindustrian dan Pemulihan (PLPP) Bangi; employment opportunities for
persons with disabilities who are not able to compete in the current labor market at
Bengkel Terlindung (Bengkel Daya, Klang, Selangor and Bengkel Daya, Sg. Petani,
Kedah); recuperative programs at Pusat Pemulihan Dalam Komuniti (PDK); providing
allowances – Elaun Pekerja Cacat (EPC) to employed persons with disabilities with a
monthly salary of RM1200 and below; and the development and wellbeing of persons
with disabilities such as the Job Coach, Disability Equality Training and Independent
Living Programs.
Apart from that, Ministry of Human Resources also helps person with disabilities
in ensuring equal opportunities in employment through their programs such as Return to
Work and job carnival. The SOCSO Rehabilitation Center Malacca is established as a
way to restore lost skills due to accidents and to improve persons with disabilities ability
to work and be independent.
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Realizing the importance of good education for persons with disabilities, Ministry
of Higher Education has played a proactive role in fulfilling this vision. Through
community college and polytechnic, various courses that suit persons with disabilities’
capabilities are offered to enhance employability skills.
Despite all the efforts and initiatives taken by the Malaysian government in
helping persons with disabilities to participate in the workforce, the number of working
disabled are still very low. For example, in 2014, only 13% of the registered persons with
disabilities are working. Despite the policy of 1% job opportunities, only 2985 persons
with disabilities are found working till May 2015 (Statistik pekerjaan dan perburuhan
Kementerian Sumber Manusia, 2015). Statistic in 2017 also showed that the participation
of persons with disabilities in the public sector is still low where only 0.24% of the 1.6
million government servants is persons with disabilities (BHonline, 2017).
Reasons for the low participation of persons with disabilities in the workplace
have been put forward in the literature and these include barriers to access education,
information, transport, built environment, as well as cultural and media representations
and late diagnosis of disabilities, deprived their opportunities to attend formal schooling
or vocational training (Bruyere, 2000; Garske & Stewart, 1999; Hamad, 2007; Marrone
& Golowka, 1999; Norani et al., 2001; Pratt et al., 1999; Ramakrishnan, 2007; Roessler,
2002; Stacher & Hendren, 1992; Wright & Multon, 1995).
The marginalization of the disabled people in the labor market is also contributed
by the role of their family (Bualar, 2014; Lee et al., 2011). Generally, families are
overprotective of their disabled children. Even when they have reached mature age that
requires them to be independent, their families view the disabled children as fragile and
impose false hope that their children would neither be able to do the job nor join the labor
force.
In other writings, there are authors who have relate the issues of employment
among persons with disabilities with the attitude of employers. Employers are said not
familiar and sensitive with the needs of their disabled employees (Khoo, et al., 2013;
Tiun and Khoo, 2013); are concerned about productivity, demand for supervision, and
promotability of workers with disabilities, as well as the cost of accommodating their
needs (Johnson, Greenwood & Schriner, 1988); unwillingness of the organization to
provide accommodations that suite their needs, negative perception by the organization,
inappropriate jobs, and limited mobility access are among causes for PWDs to be
marginalized in the labor market (Berthoud, 2008; Coffey, Coufopoulos, & Kinghorn,
2014; Hoque et al., 2014; Ta & Leng, 2013).
Though there are studies been conducted in the past to uncover the issues of
employment among persons with disabilities, not many studies are focusing on capturing
the views of employers who are not hiring persons with disabilities. Majority of past
studies are seeking opinions and views from employers who have experience hiring
persons with disabilities when discussing the issues of employment. Therefore, this
paper reports findings on employers perception towards hiring persons with disabilties
and reasons for not hiring them.
EMPLOYMENT AND PERSONS WITH DISABILITIES

Employment is something that many persons with disabilities are waiting for.
Employment opportunities and income sources are important element in ensuring
persons with disabilities are able to live independently without relying on others for help.
As argued by Serajul Haq (2003), employment symbolizes liberty and equal opportunity
for persons with disabilities. Besides, their participation and access to employment is a
fundamental right for them too. Serajul Haq added that employment for persons with
disabilities is significant for three major motives: (a) it signifies economic independence
and solid source of income; (b) it represents a sense of self-esteem and self-respect;
and (c) it indicates acceptance and integration into the mainstream of non-disabled
community and acknowledgement of their contribution to the society. Despite the fact
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that employment is important for persons with disabilities, little success has been
achieved. In fact, employers’ negative perception and attitude towards persons with
disabilities are still persists (Kilbury, Benshoff, & Rubun, 1992).
Apart from that, discrimination among persons with disabilities are still remain.
Persons with disabilities are being discriminated in many areas such as education,
transportation, built environment, as well as in communication and media. In addition,
they are also being discriminated in the workplace (Ravaud, Madiot, & Ville, 1992; Smith
Randolph, 2005). Smith Randolph (2005) found that similar types of discrimination
towards persons with disabilities in the workforce that include little opportunities for
career advancement, low performance expectation and monitoring from the supervisor,
and unfriendly workplace limited the movement of persons with disabilities in the
organization. Lower wages and benefits received by the persons with disabilities was
also another form of discrimination.
Schur, Kruse, Blasi and Blanck (2009) also found that that persons with
disabilities face a number of important disparities at work, including lower pay and
benefits, less job security, higher levels of supervision, lower participation in job and
department decisions, and lower levels of company-sponsored formal training and
informal training from coworkers. In other writing, Ravaud, Madiot and Ville (1992) found
that discrimination against job applicant on the basis of disability was higher among the
larger organizations. Similar findings were aslo found in Barnes (2003) studies where
disabled people are suffering on rejection from the workplace due to their impairment,
long term sickness and lack of ability when compared to persons without disabilities.
These discriminations led to frustration and low self-esteem among persons with
disabilities.
The literature also have shown how exclusion of persons with disabilities from
employment opportunities is linked to the social organization of the labor market and not
because of individual impairment. In one article, Ramakrishnan (2007) has argued that
organizational commitment to employment of the disabled, attitude towards disabled
people, and organizational policies on persons with disabilities are critical in determining
the employment opportunities for the disabled. Barriers such as access to education,
information, transport, built environment, as well as cultural and media representations
have been claimed to be the cause for low participation of persons with disabilities in the
workforce.
In a study conducted by Tiun and Khoo (2013) and Khoo, et al., (2013), they
found that most employers in general were unfamiliar with and insensitive to the needs
of their employees with disability. In fact, employers are found not providing a disability-
friendly physical infrastructures in the workplace which limit the movements of
employees with disability. The findings further showed that compared to government
agencies, private sector was more concerned about meeting the needs of persons with
disabilities. Khoo et al., (2013) in their study have highlighted two critical factors, namely
unconducive environment and workplace barriers, as the obstacles which impeded
persons with disabilities from entering and progressing in the workplace.
Barnes (2005) on the other hand, argued that having specific policy in the field of
employment alone will not be enough to solve this issue unless those barriers are lifted.
Apart from providing disability friendly facilities at the workplace and policy related to
employment, Hamad (2007) argued that full access to educational opportunities to learn
needed skills is the first step in achieving social integration and ensuring equal
employment opportunities. Since many employers today are looking for applicant with
the right skills and knowledge, persons with disabilities need to be given equal
opportunities for education. As argued by Norani, Khalid and Nor Aishah (2001), persons
with disabilities have many hidden potentials and resources, and thus, they should be
given job opportunities and training in order to fully integrate themselves in the society
at large.
Past studies also have shown how employer perceptions toward the disabled
workforce being a significant barrier to the employment of persons with disabilities.
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Research showed that though applicants with disabilities are evaluated more positively
during hiring process, they are still less likely to be hired than candidates without
disabilities (Tagalakis, Amsel & Fichten, 1988). Particularly, employers were worried
about productivity, demand for supervision, and promotability of workers with disabilities,
as well as the cost of accommodating their needs (Johnson, Greenwood & Schriner,
1988). Similarly, Shier, John and Marion (2009) also found that the most frequent
reported barrier to social inclusion was public attitudes and prejudices concerning
disabled people.
In addition, other than the disabled’s impairment, unwillingness of the
organization to provide accommodations that suite their needs, negative perception by
the organization, inappropriate jobs, and limited mobility access are among causes for
persons with disabilities to be marginalized in the labor market (Berthoud, 2008; Coffey,
Coufopoulos, & Kinghorn, 2014; Hoque et al., 2014; Ta & Leng, 2013).
The marginalization of the disabled people in the labor market is also contributed
by the role of their family (Bualar, 2014; Lee et al., 2011). The participation of parents
are regarded as crucial in preparing persons with disabilities for employment. Sadly,
families in general are found to be overprotective of their disabled children. Even when
their disabled children have reached mature age that requires them to be independent,
the families still view the disabled children as fragile and impose false hope that their
children would neither be able to do the job nor join the labor force.
Apart from the issue of getting access to education, training is another concern
that related to persons with disabilities. Training is very important to help individuals to
increase knowledge, skills, and ability in performing jobs. Yet, persons with disabilities
are often being denied to receive the same training opportunity compared to other
employees. As argued by Anizam, Manisah and Amla, (2014), training appears to play
significant roles in helping disabled persons to be employed. However, Pagan (2015)
found that their participation in training activity is limited compared to non-disabled
person. Poor facilities, outdated syllabus, and lack of skills demonstrated by the trainer
contribute to this problem (Malle, Pirttimaa, Saloviita, 2015). Even though it is the role
of organization to provide training for their disabled employees, many organizations are
unsure whether their disabled employees should receive the same training opportunity
as non-disabled employees or is the training is a part of social responsibility. If these
issues failed to be addressed by the respective authorities, organization or training center,
disabled persons will not be able to develop or enhance their skills that will decrease
their chances to fully participate at the workplace.
METHOD
Participants
Ten organizations participated in this study. It is noted that majority of
organizations (80%) interviewed are from the services industry. In terms of total
employees employed, none of the organization has hired part-time employees. Majority
of the organizations (70%) hired between 401 and 600 full-time employees. All the
organizations participated in this study are located in the area of Klang Valley.
Research Design
In this study, an on-site semi-structured interviews and survey were utilized as
the data collection method to uncover participants’ perspectives on the persons with
disabilities employment issues. Respondents were asked to elaborate on their
experiences and perceptions in relations to hiring. Thus, interviews allowed for flexibility
and openness. Questions were exploratory and discovery-oriented (Strauss & Corbin,
1998); thus, allowing the participants to express their views on hiring persons with
disabilities at the workplace within their own frame of references. The one-to-one
interview and survey lasted for an average of one hour. All responses were transcribed
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and scrutinized very closely and the themes were quantify into frequency and percentage
to facilitate interpretation.
RESULTS AND DISCUSSIONS
Employers Understanding of Persons with Disabilities
The interview session begins with employers’ understanding of persons with

disabilities. Based on the responses given, respondents’ general understanding of
persons with disabilities are still negative where they view them as those who need
assistance in doing work. Respondents also view persons with disabilities as those with
limitation in movement, hearing, and eyesight; a person who are struggling even to cross
a road (e.g., blind people) and those who are on the wheelchair. As highlighted by several
respondents during the interview,
“…someone with a physical disability whereby the movement is limited and

unstable while standing and working…” [ R1]
“…for me, person with disability is someone who is blind or deaf…” [R2]
“… what cross my mind is someone in a wheelchair…” [R7]
Based on the current findings, persons with disabilities are still been label as
person who are helpless and needed help from others. In order to able the disabled,
support from the communities are needed. Parents with disabled child also need to train
their disabled child to be independent and not being too protective of them. The image
of persons with disabilities also need to be promoted in a positive way by highlighting
their strength and ability.
Policy on Hiring Persons with Disabilities
During the interview, respondents were asked whether they have a policy on
hiring persons with disabilities or not. Interestingly, half of the respondents shared that
they do have policy on hiring persons with disabilities even though they do not hire any.
As shared by the respondents,
“… yes, my company has a policy related to persons with disabilities…” [R5]
“…yes, we have…we just put it in our policy the last 2 or 3 years…” [R1]
The current findings indicate that having policy per se did not guarantee that
persons with disabilities will be hired. Reasons for not hiring persons with disabilities
need to explore further, despite of having a policy in place. It is assuming that by having
a policy in hiring persons with disabilities will help increase the number of disabled
employees in the work place. But the current findings prove the opposite.
Employers Future Intention in Hiring Persons with Disabilities

The interview session ends with a question on whether the employers have any
intention of hiring persons with disabilities in the future. Interestingly 4 of the respondents
interviewed firmly shared that they will not hire persons with disabilities. Among the
highest reasons these respondents gave include it will cost them more if they are to hire
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persons with disabilities, and they did not have any suitable job for persons with
disabilities. As shared by one respondent,
“…employing disabled people is difficult and it cost more…” [R9]
These findings confirm previous studies on the reasons why organizations are
reluctant to hire persons with disabilities. As argued by Peck and Kirkbride (2001), many
employers believed that they need to spend lots of money if they were to hire PWDs
such as providing them with accommodation, facilities and renovation to accommodate
the disabled. Kaye, Jans and Jones (2011) also found that one of the three highest
reasons why employers might not hire PWDs is related to cost of accommodations.
During the interview, three respondents indicate that they might give it a thought
about hiring persons with disabilities in the future. Even if the respondents do not have
any problem in hiring persons with disabilities, they only hire those who can fit with their
working environment and the organization does not need to do any changes in
accommodating them. As stated by one of the respondents,
“It would not be a problem for us to take them if they could fit with our working
environment and work requirements and as long as the company does not have
to change anything in the office.” [R6]
This finding supported previous study conducted by Unger (2002) where one of
the factors that might affect employer attitudes to hire persons with disabilities was the
type and / or severity of the disability of the employee or applicant. Since persons with
hearing impairment were physically normal, they were seen to be fit to work compared
to other categories of persons with disabilities. In fact, less renovation to accommodate
their needs was required. Thus, persons with disabilities, in this category were more
favorable to be hired by the employers.
Another three respondents indicate that they are looking forward on hiring
persons with disabilities in the future but it will depend on vacancies, types of job
available and facilities that they have in accommodating disabled employees. Although
the respondents are looking forward in hiring persons with disabilities, they preferred
those with the right skills and qualities needed by the organization. In other words, the
disabled candidate must be ready for work. They are also prefer those with moderate
intellectual ability.
CONCLUSIONS
In summary, the present findings indicate that both employers and PWDs need
to take initiatives in improving the participation of PWDs in the workforce. As such, the
government need to provide an on-going support for both PWDs and employers like
improving the function of Jobs Malaysia, and other development programs. It is consider
to be unfair to blame the employer solely for not employing PWDs when they are not
been trained and giving the knowledge on how to manage PWDs. Thus, it is suggested
that the role of job coach need to be revised and improvised, train and develop more in-
house job-coach in organization, provide more attractive incentives and benefits for
organization participating in job-coach programs and provide resource guide for
employers in recruiting, hiring, retaining and promoting persons with disabilities.
At the same time, PWDs themselves need to be given the opportunity to equip
themselves with the right skills and knowledge that make them ready to work. They need
to be given equal opportunity and access to education and training. Furthermore, the
government need to establish more training centers to accommodate PWDs according
to their disabilities, revise existing training curriculum to meet industry needs and appoint
a certification body to certify and monitor training programs offered.
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EMPLOYEES TURNOVER INTENTION AMONG ACADEMICIANS

IN KOLEJ POLY-TECH MARA (KPTM) MALAYSIA
Wan Shakizah Wan Mohd Noora, Siti Aminah Roslanb, Mohd Faizal Mohd Isaa, Fadzli Shah Abd
Aziza, Syazwan Syah Zulkiflya
a
Email: shakizah@uum.edu.my, m.faizal@uum.edu.my, f.shah@uum.edu.my,
syazwan.shah@uum.edu.my
b
Faculty of Business Studies, Kolej Poly-Tech MARA, Malaysia,
Email: sitiaminah_r@gapps.kptm.edu.my
Abstract
The paper examined the mediating effect of psychological climate on the relationship between
person job fit (PJF), person organization fit (POF) on employee turnover intention among
academicians in private higher education institutions. Data was collected using email to KPTM’s
academicians in Malaysia. 202 usable questionnaires were returned and analyzed. The
hypotheses were tested using Statistical Package for Social Science (SPSS) and AMOS
approach of Structural Equation Modeling (SEM) technique to measure and test the proposed
structural relationships. The research findings revealed that person job fit and person organization
fit have negative relationship on employee turnover intention. Besides, no mediating effect on the
relationship between person job fit and person organization fit on employee turnover intention.
The implications of the results and future research direction were further discussed.
Keywords: person job fit, person organization fit, employee turnover intention, psychological
climate
INTRODUCTION
The employee turnover intention is known as intention to leave or intention to quit

is a phenomenon where an employee or individual has the probability of thinking to leave
or quit the organization in the near or future (Mowday, Porter, & Steers, 1982;
Vandenberg & Nelson, 1999). The phenomenon of employee turnover intention occur
usually when the employees feel that the organizations they been working at, no longer
provide benefits that suit them (Ismail, 2014), beside unchallenging work, limited
development (Ismail, 2014), and no motivation for involvement (Krishnan & Singh, 2010)
and etc. The withdrawal cognition process occurs in three conditions which are the
employees will think about quitting the current job, the employees plan to look for other
job elsewhere and the employees have intention to quit the job but not the element of
turnover (Carmeli and Weisberg, 2006). Undeniable that employees also often make the
decision to turnover based on the evaluation of current organization and work related
feature and also perceived alternative available. If the evaluation outcome is favorable
for an employee to leave the organization, turnover will be the result of an individual’s
decision making process (Meeusen et al., 2011, cited in Min 2015). However, Min (2015)
averred that not every employee who developed the turnover intention will choose to
leave the organization.
Realistically, employee turnover is a serious issue for many organizations;
organizational experts view this phenomenon as a persistent problem for the
organization (Chan, Yeoh, Lim, & Osman, 2010; Joarder, Sharif, & Ahmmed, 2011).
Nowadays, employees are seen as an important asset that improve profitability of the
organization. It is essential for the organization to know what features play the main role
to decrease turnover intention among the employees. According to Qasim, Javed and
Shafi (2014), the major problem faced by the employer is high employees turnover
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intention in the workplace which is brings major problem or impact to the growth of the
company in the future. Turnover intention problem also happens in the education sector
where academicians are willing to leaves their university for another university
(Rathakrishnan, Imm, & Kok, 2016). In Singapore, the higher learning sector has a high
resignation rate in the past three years, where between 6 to 6.5 percent and about 13
percent of junior academicians quitting their job annually (Ng, 2008). In Indonesia,
currently there is an insufficient number of academicians who is qualified, according to
the Research and Technology and Higher Education Ministry (The Jakarta Post, 2017).
Declining of employee engagement might cause the employees to develop the
intention to leave (Makhbul, Rahid & Hasun, 2011; Andrew & Sofian, 2012; Karatepe,
2013 cited in Min, 2015). This scenario occurs because academicians faces a lot of
expectation from universities, such as to increase the reputation of the university to be
well known locally and internationally by publishing books, journals and research. Also,
the expectation sometimes is too high that it can lead academicians to turnover intentions.
Unquestionable that academicians plays an important role in achieving the goal
of institution since they serve as storehouses of knowledge for nurturing the manpower
needs of the nation and for satisfying the aspirations of the people for a good and
humane society (Jain, 2013 cited in Heng, Yee, Leng, & Yan, 2014). As a result, it is
important to take into consideration staff’s job satisfaction and commitment since they
directly influence the success of the academic institutions specifically KPTM Malaysia.
Moreover, when the academicians satisfied with their job, definitey they will perform their
responsibilities with more concentration, devotion and competence which eventually lead
to increase in the productivity of the private higher learning institutions (Saba and Iqbal,
2013 cited in Heng, et al., 2014; p3) such as KPTM.
LITERATURE REVIEW
Employee Turnover Intention (ETI)

According to Tett & Meyer (1993) employee turnover intention (ETI) is considered
to be conscious and thoughtful to leave the organization. Also, the intention to quit the
current job and the possibility to request work in another organization as a worker (Jung,
2012). Riggio (2013) stated turnover intention as workers self-reported intentions to
leave their job, often used as a substitute for actual turnover measures. According to
Jabber (2014) ETI is a psychological state where employee intent to leave the
organization voluntarily due to some behavioral, situational and achievement
maladjustment. However, through there are many definition of employee turnover
intention have been put forward in the literature, this study adopted the definition given
by Jung (2012) where employee turnover intention is regarded as the intention to quit
the current job and the possibility to request work in another organization as a worker
whether soon or later.
There are two different category of ETI which are voluntary intention turnover and
involuntary intention turnover (Orhan, Fatih and Imran, 2014). Voluntary intention
turnover occurs when the employee has decided to leave on his own. Normally, voluntary
turnover intention occurs when an employee feels another better chance than their
current position. This includes higher pay, more recognition, better benefits or easier
location. It can also happen when employee forced to leave because of health problems
or personal family problems. If an employee has an intention to voluntarily retire from a
position, it is also known as voluntary turnover intention. Instead, involuntary turnover
intention is a measurement of whether the organization has planned to eliminate an
employee from a position that lead to turnover. This can happen if the organization is not
satisfied with the worker’s performance and choose to eliminate him. It also happens
when organizations need to eliminate the positions because of the pressures the
recession in the economy or business.
Ibrahim, Usman and Bagudu (2013) explicated the factor lead to employee’s
turnover intention is firm stability, if the organization is unable in attaining its goals and
mission employees’ turnover will occur. Tariq, Ramzan, & Raiz (2013) explained that
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mismatching between employee and organization also lead to employee turnover

intention. Albaugh (2003) provide the reasons why employee turnover intention less
involvement in decision making, weak relationship with top leaders, less pay and less
interest, lack of job security, lack of recognition and loss of flexibility in scheduling.
Comber and Barriball (2007) discovered the predictors of employee turnover intention
are lower income and fringe benefits, inflexible working schedule, poor career
development, poor management and work pressure. Further, Boon & Biron (2016)
elucidated that the decision to employee turnover is influenced by fit perceptions, with
lack of fit extremely discouragement the employees to remain their membership with the
organization.
Person Job Fit (PJF) and Employee Turnover Intention (ETI)

Person–Job Fit (PJF) involves the right people and the right requirement in
certain jobs. PJF has been determined as a person’s relationship to the character and
work performed in the workplace (Kristof-Brown, Zimmerman and Johnson, 2005). As
Lauver & Kristof-Brown (2001) expounded PJF is the match between the knowledge,
skills, and capabilities of the workers as well as the needs of the work. In addition, it was
also observed that there was a positive correlation between proactive personality and
career satisfaction among people who have high PJF and high POF (Hussain & Mohtar,
2017).
Wilk & Sackett (1996) conducted an empirical study found employees who are
misfit between their own ability and complexity will eventually have the intention to
receive other jobs they deem fit. It was found that, PJF has significant positive
relationship with employee turnover intention in the western context (Cable & Derue,
2002) and a study which was conducted for various organizations in Beijing, China
discovered that PJF has a significant negative relationship with turnover intention among
employees working in the Asian context (Guan, Deng, Bond, Chen & Chan, 2010).
Predominantly, the study revealed that the relationship between the PJF and outcome
was relatively stronger than the results found in the Western settings (refer to Cable &
DeRue, 2002). Thus, this confirms that the PJF is significantly related to several work-
related attitudes and behaviors, particularly employee turnover. As PJF occurs,
consequently it generates work-related positive attitudinal and behavioral outcomes
(Memon, Salleh & Baharom, 2015).
Hence, it is hypothesized that

H1: There is a negative relationship between PJF and ETI
Person Organization Fit (POF) and Employee Turnover Intention (ETI)

Kristof, Zimmerman and Johnson (2005) defined person–organization fit (POF)
as the suitability between people and organizations although at least one party provides
other requirements or when both parties share the same basic features or both. Van
Vianen, De Pater and Van Dijk (2007) exposed POF is the person who associates the
personality, objective and values of a person with the organization. POF is defined as
the similarity between workers and the organizations, which workers may be fit or misfit,
related to the worker personality, goals and values with the organization (Sutarjo, 2011).
Chatman (1989) as cited in Yen and Ok (2011) mentioned that POF is the equivalent of
the norms and values of the organization and the values of people. Likewise, Verquer,
Beehr and Wagner (2003) clarified that POF has a considerable effect on attitudinal
outcomes, for example, intent to quit, job satisfaction and organizational commitment
(cited in Zhang, Yan, Wang & Li; 2017).
The highest employees believe themselves have similar values with the organization,
the employees turnover intention is not easily developed (Wei, 2015). Study done by
Findik, Ogut and Cagliyan (2013) on the employee of a health institute in Konya found
the levels of POF and levels of job satisfaction were low, the job satisfactions of
employees will increase, as their levels of POF. According to Mitchell, Holtom, Lee,
Sablynski and Erez (2001), an employee who finds a good match between he or she
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values and he or she organizations will less turnover intention. In another study, Rizwan,
Arshad, Munir, Iqbal & Hussain (2014) found a significant positive relationship with the
intention to leave between person organization fit on local organizations in both
government and private sectors in Pakistan. This indicates that, when an employee
knows that the organization does not provide desired resource or skills that they looking
for, make them responsive to looking another place that understands rather than looking
for other jobs. Nicholas, Mensah, Abigail, Owusu & Nicodemus (2016) conducted studies
on 309 staff in the hotel sector in Sekondi Takoradi Metropolis, Ghana found POF were
having a significant positive relationship on turnover intention. Research by Bee, Mak,
Jak & Ching (2014) on employees of private universities in Selangor, Malaysia found
their fifth hypothesis were significant positive relationship POF and ETI. However, Latif
and Bashir (2013) found POF and employee turnover Intention is not significant in the
Pakistan organization. Whereas, a study by Sakka (2016) on the academicians in
Canadian International College found the strong negative correlation between POF and
turnover intention. It is notable, both the PJF and POF have been discovered to be
significantly negatively related with turnover intention (Arthur, Bell, Villado, & Doverspike,
2006; Boon, Den Hartog, Boselie, & Paauwe, 2011)
It is also noted that when individual and organizational values showed poor fit as
job satisfaction were reduced and intentions to turnover increased (Cennamo & Gardner,
2008 in Zhang, et al.; 2017). Therefore, Zhang et al (2017) discovered that the findings
of their study indicate that POF can support human resource managers identify the
inconsistencies between the staff and the organization to reduce dissatisfaction and
turnover.
Thus, the preceding discussion leads to the next hypotheses as follow;

H2: There is a negative relationship between POF and ETI
Person Job Fit (PJF), Person Organization Fit (POF) and Employee Turnover
Intention (ETI) Mediate by Psychological Climate (PC)
Michela, Lukaszwski, & Allegrante (1995) defined psychological climate (PC) as
the perceptual components of a reciprocal interaction between the employee and the
firm environment. Also, PC refers to how the employees understand and perceive their
firm environment (Selmer, 2005). Employees choose show enthusiastic commitment
with invest more time and effort in the work, and attach themselves to the firm if the firm
can satisfy their psychological needs in the workplace (Kahn, 1990a). Based on
Rousseau (1995), a psychological climate is an individual faith formed by a company
about the terms of an exchange agreement between individuals and their company. PC
perceptions can influence work attitudes of employees such as turnover intention (Parker,
Baltes, Young, Huff, Altmann and Lacost, 2003; Sahin, 2011). PC constructs are
categorized into six sub dimensions which are supportive management, contribution, role
clarity, recognition and self-expression (Brown and Leigh 1996 as cited in Hassan and
Akram, 2012).
It is believed that most of the employees are evaluated and value their work
surrounding by creating perceptions in regard how beneficial the work surrounding is to
their wellbeing (Parker, et al., 2003) in term of supportive management, a clearer job role,
the management tends to recognize his or her work and the challenging job (Brown &
Leigh, 1996)). Psychological climate is an interpretation of perceptions or beliefs form by
the employees about their general working environment of the (Parker, et al., 2003). That
means, the thoughts, belief, and feelings created by an employee using their perception
regarding their work environment constitutes the foundations of psychological climate,
which in turn will affect the outcomes and attitudes of the works.
Workers who are PC fitted in their organization tend to be devoted and would
choose to remain with the organization, however, will certainly prefer changing the
positions at organization if they don’t feel complete in current position (Saks & Ashforth,
1997). Previous study done by Hollenbeck (1989) found poor PFJ can lead to career
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turnover. Mathis & Jackson (2003) concluded that low performance and turnover will
result if fit is found to be low.
As the result, the following hypotheses are suggested

H3: PC mediate the relationship between PJF and ETI
The feeling of empowering individual psychology and the views of the impact on
organizational outcomes is based on individual’s psychology of their work setting
(Kraimer, Seibert & Liden, 1999). The concept of PJF and POF, it is a way that individuals
find a positive match with their respective organization; the congruence between the
employees perceived fit and the environment creates a sense of obligation to reciprocate
(Saks, 2006). Many organizations struggle to obtain a high person organization fit as a
positive work outcome, especially in win over the right talent in a highly competitive
market and give impact in decreasing intention to quit (Ng & Burke, 2005). The need for
consideration about the fit between employees and organization through which they may
be doing work (Efenbein & O'Reilly, 2007). The employee will certainly stay in the
organization if their priorities are aligned with the company (Wheeler, Buckley,
Halbesleben, Brouer, & Ferris, 2005). There will be a high turnover rate if a person is
dissatisfied and has a disagreement over his personal and organizational objectives (Lee,
Mitchell, Wise, & Fireman, 1996). Likewise, (Bretz & Judge, 1994) also found that it had
positive correlation with job satisfaction and had negative relationship with turnover
intention.
Hence, the following hypotheses are recommended

H4: PC mediate the relationship between POF and ETI
HI
Person Job Fit H3
Psychological Employee
Climate Turnover Intention
Person Organizational Fit H4
H2
Figure 1: Research Framework
The framework for this research shows in Figure1 has been developed based on
the discussion in literature review. The independent variable in this study is person job
fit (PJF) and person organization fit (POF) whereby dependent variable is employee
turnover intention (ETI) and psychological climate (PC) as mediating variable consist of
supportive management, contribution, role clarity, recognition and self – expression.
Research Design
A quantitative study was conducted to assess the relationships between PJF,
POF, ETI and PC. The theoretical propositions informed the development of the
hypothesized model and research hypotheses.
Measurements
PC’s items were adapted from Hassan, Akram and Naz (2012), PJF and POFs’
items were adapted from Sekiguchi (2004) and ETI’s items were adapted from Michigan
Organizational Assessment Package (1975). Overall; there are fifty one (51) items that
need to answer by respondents. Each adapted item was assessed on a five-point scale
ranging from one (strongly disagree) to seven (strongly agree).
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Sampling Design
The sample determination table is provided by Krejcie & Morgan (1970) by
determining the appropriate sample size for the present study, a population of 675 was
242 (n). Hair, Anderson, Tatham & Black (1998) enlightened that Structural Equation
Modeling (SEM) requires a large sample size in the proposal to achieve reliable and
meaningful parameter estimates. Kline (1998) proposes that sample sizes under 100 be
considered small, between 100 and 200 cases as medium size and samples over 200
cases can be considered large. In fact, the sample size used in this study meet this
recommendation. The sample size is 242, which is clearly greater than 200 cases. A self-
administered survey questionnaire was distributed to 484 academicians in order to
achieve the target sample, 202 usable questionnaires were received which represents a
response rate of 41.7%. Due to self-administration method and repetitive follow-ups by
the researchers, there were no missing values in the data collected
According to Sekaran (2007) purposive sampling is obtaining information from
those who are most readily or convenience available it might sometimes become
necessary to obtain information from specific target groups. Purposive sampling were
chosen because it confined to specific types of people who can provide the information
needed by the researcher because they are the only group who have it or match to some
criteria that has been set by the researcher. Moreover, in this study, purposive sampling
is used to select sample elements which are academicians in eight (8) branches of KPTM
that are most readily available to participate in this study.
Research Procedure
In this survey eight (8) KPTM colleges were selected due to the highest
headcounts, which are Bangi (Selangor), KESEDAR (Kelantan), Kota Bharu (Kelantan),
Kuantan (Pahang), Batu Pahat (Johor), Ipoh (Perak), Alor Setar (Kedah) and Semporna
(Sabah). Considering all diverse respondent places, the questionnaires were distributed
to the academicians using colleges official email.
DATA ANALYSIS
SPSS was used to analyze the data, descriptive statistics for instance
frequencies, percentages, mean values, and standard deviations. The AMOS SEM was
utilized for measurement model analysis and structural model to analysis the
hypothesized.
Table 1 illustrates the actual summary of 202 respondents by gender, female

were slightly higher represented by 75.7%, while male was 24.3%. As for age groups,
the highest frequency respondent was from the aged 31 – 35 years, which accounted
33.2%. Out of 202 respondents selected, 75.2% represents married respondents, 22.8%
represents single status and 2.0% represent for those divorced/separated/widowed.
Most of the respondents were highly educated with 69.8% were master degree and 30.2%
were bachelor degree. The largest portion of respondents are lecturers with 83.2%,
meanwhile, senior lecturer only 16.8%. Permanent academicians is 66.8%, followed by
contract academicians is 21.3% and temporary academicians is 11.9%. The highest
number of length of service in the KPTM derived from 4 – 7 years is 35.6% of the
respondents, followed by the 8 – 11 years are 28.2%, less than 3 years are 15.3%. The
highest respondents came from Bangi are 36.6%, followed by Kota Bharu is 18.3% and
Kuantan is 13.4%.
123
Table 1: Respondent Demographic (n-202)
Demographic Variable Category Frequency Percent

Gender
Male 49 24.5%
Female 153 75.7%
Age
25 years and below 2 1.0%
26 – 30 years 57 28.2%
31 – 35 years 67 33.2%
36 – 40 years 38 18.8%
41 – 45 years 23 11.4%
46 – 50 years 11 5.4%
51 years and above 4 2.0%%
Marital Status
Single 46 22.8%
Married 152 75.2%
Divorced/Separated/Widowed 4 2.0%
Academic qualification
Bachelor degree 61 30.2%
Master degree 141 69.8%
Position
Lecturer 168 83.2%
Senior Lecturer 34 16.8%
Types of employment
Permanent 135 66.8%
Contract 43 21.3%
Temporary 24 11.9%
Service Length
Less than 3 years 31 15.3%
4 - 7 years 72 35.6%
8 - 11 years 57 28.2%
12 - 15 years 15 7.4%
16 - 19 years 18 8.9%
20 -23 years 6 3.0%
More than 24 years 3 1.5%
Branches
Batu Pahat 10 5.0%
Kota Bharu 37 18.3%
Bangi 74 36.6%
Ipoh 10 5.0%
Semporna 8 4.0%
Kuantan 27 13.4%
Alor Setar 16 7.9%
KESEDAR 20 9.9%
124
Figure 2
Measurement Model for all variables
Thus, after the changes, the measurement model of person job fit is taken which has
reasonably fit indices (Chi-square (X²) = 1.768; GFI = 0.766; AGFI = 0.729; TLI = 0.901;
NFI = 0.816; IFI = 0.911; CFI = 0.910; RMSEA = 0.065) as described in the summary of
indices as representative of the fit model in Figure 3 and Table 2.
Figure 3
Re-Specified Measurement Model for all variables
125
Table 2: Summary Statistics of Model Fit for the Overall Measurement Model
Chi-square
Fit Index GFI AGFI TLI NFI IFI CFI RMSEA
(X²)
Recommended
≤ 5.00 ≥ .90 ≥ .90 ≥ .90 ≥ .90 ≥ .90 ≥ .90 ≤ .08
Value
Observed Value for

Measurement 1.997 0.719 0.682 0.868 0.783 0.878 0.877 0.074
Model
Observed Value for

Re-specified
1.768 0.766 0.729 0.901 0.816 0.911 0.910 0.065
Measurement
Model
Figure 4
Direct Effect between Independent and Dependent Variables
The first hypothesis (H1) of the research is to examine the relationship among
PJF and ETI. The result of fit values describes the adequate of model of fit at the CMIN/df
or ratio = 2.453 with chi square = 439.176 and df = 179. Other acceptable fit values are
identified by IFI = 0.915, CFI = 0.914, NFI = 0.90 and RAMSEA = 0.07. However, the
criteria to determine whether the assumed relationship is significance or not is based on
the value of t-value. Commonly used critical values as 1.65 (significance level = 10%),
1.96 (significance level = 5%) and 2.57 (significance level = 1%). The results indicated
that p value is 0.071, t value is -1.807 and β Weight is -0.146 as shows in Table 5 were
positive relationship between PJF and ETI (t = -1.807 > 1.65 as a one-tailed test).
The second hypothesis (H2) is to investigate the relationship between POF and
ETI. The result of fit values describes the adequate of model of fit at the CMIN/df or ratio
= 2.453 with chi square = 439.176 and df = 179. Other acceptable fit values are identified
by IFI = 0.915, CFI = 0.914, NFI = 0.90 and RAMSEA = 0.07. The results indicated that
p value is 0.794, t value is -0.262 and β Weight is -0.021 as shows in Table 5. This
explains negative relationship between POF and ETI (t = -0.262 < 1.65 as a one-tailed
test).
126
Figure 5
Mediating Effect of PC between direct path of PJF and ETI
The third hypothesis (H3) is to analyze the mediating effects of PC between PJF
and ETI. The result of fit values describes the adequate of model of fit at the CMIN/df or
ratio=1.970 with chi square=1199.8 and df=609. Other acceptable fit values are identified
by RAMSEA=0.073. Mediation test showed that there was a no mediation effect for in
H3 since the direct effect was and indirect effect not significant. According to Hayes &
Matthes (2009), if all constructs are not significant including direct effect, the construct
can consider as no mediation effect. Indirect effect p value was at 0.136 above than 0.05
and for direct relation (X-Y) p- value was at 0.710 above than 0.05 while X-Y for full
mediation model also not significant with p value was at 0.168 above than 0.05 (see
Table 3).
Table 3: Result of mediating effect of PC between PJF and ETI
H3 Beta p LB UB
Direct Model
PJF->ETI -.145 .710
Full Mediation Model
PJF->ETI .113 .168
Std. Indirect Effect (SIE). -.031 .136 .000 .000
Result No Mediation Effect
The fourth hypothesis (H4) is to examine the mediating effects of PC between

POF and ETI. The result of fit values describes the adequate of model of fit at the
CMIN/df or ratio=1.970 with chi square=1199.8 and df=609. Other acceptable fit values
are identified by RAMSEA=0.073. Mediation test showed that there was a no mediation
effect for in H4 since the direct effect was and indirect effect not significant. According to
Hayes & Matthes (2009), if all constructs are not significant including direct effect, the
construct can consider as no mediation effect. Indirect effect p value was at 0.087 above
127
than 0.05 and for direct relation (X-Y) p- value was at 0.794 above than 0.05 while X-Y
for full mediation model also not significant with p value was at 0.535 above than 0.05
(see Table 4).
Table 4: Result of mediating effect of PC between POF and ETI
H4 Beta p LB UB
Direct Model
POF->ETI -.021 .794
Full Mediation Model
POF->ETI .059 .535
Std. Indirect Effect (SIE). -.083 .087 .000 .000
Result No Mediation Effect
Table 5: Summary of Hypotheses Status
P β Hypo
Hypotheses t-value
value Weight s St
H1 There is a negative relationship between PJF > 1.645 & -
0.071 -0.146 Acce
: and ETI ve
H2 There is a negative relationship between POF
0.794 < 1.645 -0.021 Reje
: and ETI
H3 PC mediate the relationship between PJF and Reje
0.168 < 1.645 -0.031
: ETI
H4 PC mediate the relationship between POF and Reje
0.535 < 1.645 -0.083
: ETI
It was observed that PJF has a negative relationship with ETI. Numerous studies have
shown considerable relationship among the individual, organizational and job related
antecedents of ETI (Zahid, 2014). As for the KPTM, academicians demonstrate that they
have knowledge, skills and abilities (KSAs) in performing their job. Thus, typically as a
new KPTM academician, the HR Department will arrange and offer training to assist
them in enhancing his or her instructive skills and improve practical classroom
techniques. Essentially, the training takes one week and it involves quite a few small
groups of junior and senior academicians across the KPTM branches on a part time
basis to fit the demands of teaching. Moreover, unlike school teachers, KPTM
academicians often have a real autonomy over their teaching activities. Besides, the
competitiveness and productivity of the industry depends primarily on the availability,
skill levels and professionalism of its employees (Nicholas, et al., 2016). It will be
benefited that this research might provide better understanding to the decision makers
on the PJF significant role in relation to the job performance (Hussain & Mohtar, 2017)
and promote employee retention.
POF has no significant relationship with ETI. The reasons that contribute to
negative POF between ETI. It was discovered that the personal values, company culture,
personality and career goals which are perceived as less meaningful on KPTM’s
128
academicians who do not share similar values and goals with KPTM. Thus, the effect of
PO fit on turnover intention must be delivered through some work attitude variable, such
as job satisfaction (Zhang, et al.; 2017). Every so often, it is believed that KPTM has
more focus on upholding professional standards, providing a rigorous but challenging
education which somehow contribute to the lower turnover intention among academician.
As Zhang, et al. (2017) asserted that POF was inversely correlated with ETI.
PC does not mediate the relationship between PJF and ETI. PC such as
supportive management, contribution, recognition, self – expression and role clarity are
no mediation effect on person job fit in KPTM. KPTM academicians feel satisfy and good
when they have clear activities and program for them in order to enhance their skills,
knowledge and fairly treated. Likewise, PC also does not mediate the relationship
between POF and ETI. The crucial importance of a good fit between the academicians’
fundamental characteristics (such as values, goals, personality and attitude) and KPTM
fundamental characteristics (such as culture, climate, values, goals and norms) would
results in positive outcome such as negative academicians turnover intention. This is
due to KPTM has ability to provide the psychological climate such as good supportive
management, recognize employees contribution, give recognition, feel free for self –
expression, employee like challenge and know their role clarity which are demanded by
KPTM academicians. In short, the academicians do not have intention to quit as KPTM
share similar values and goals and when what being provided by the KPTM are what
demanded by the employees.
Ever since the relationship of PJF and POF, and turnover intention has been less
discussed with regard to psychological climate, the present paper fills the indicated
research gap. This paper assimilates PJF and POF, psychological climate and employee
turnover intention in a single framework, which is a relatively unique attempt.
LIMITATION AND FUTURE RESEARCH DIRECTION
The findings and the contribution of the current study should be assessed taking
into consideration the potential limitations of the research design. The sample comprised
of academicians working in one private college group in Malaysia. This setting and
findings may not be generalized to all academicians and private colleges. Hence,
implications and conclusions of this study are bounded by the context of the research,
but future research could encompass the replication of this study as to cover a bigger
sampling frame in a number of different contexts. It is believed that future research
assessing similar data from different contexts will provide informative validation for the
results of this study.
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Relationship Between Promotion opportunity, Ethical climate and Organizational

performance in Nigerian Educational sector: An empirical Analysis
Sabiu Salihu Malam

Dept of Public Administration, Umaru Ali Shinkafi Polytechnic, Sokoto;
sabiumsalihu@yahoo.com
Tang Swee Mei
School of Business Management, Universiti Utara Malaysia;
smtang@uum.edu.my
Mohd Hasanur Raihan Joarder
School of Business & Economics, United International University
Bangladesh
raihan.joarder@bus.uiu.ac.bd
Benazir Ahmed Siddiqui

Kabiru Maitama Kura

UTB School of Business, Universiti
Teknologi Brunei, Gadong, Brunei Darussalam
Abstract
The study investigates the mediating effect of ethical climate (EC) on the relationship
between promotion opportunity and organizational performance (OP). Based on
Resource Based View (RBV), internal resources play a substantial role in improving OP,
considering promotion opportunity as the dimension of human resource management
practices can be viewed as best internal factor that can improve OP. Some prior studies
used bundles of practices while other studies considered separate practices. Despite these
studies, however, few studies have attempted investigating the influence of promotion
opportunity on OP. However, the fundamental reasons through which promotion
opportunity influence OP is not clearly explained in the literature, despite the fact that
RBV highlighted that HRM practices can indirectly leads to competitive advantage in
organization through resources that are within the organizational history like ethics, This
study employed EC as mediating variable on the relationship between promotion
opportunity and OP. A quantitative survey method was carried out, data were collected
from some selected ministries of education, parastatals, boards, and agencies in Northern
Nigeria. A total of 181questionnaires were analysed using Smart PLS SEM 3.2.6v. Results
revealed that EC mediates the relationship between promotion opportunity and OP. The
study made recommendation and drew suggestion for future research.
Keywords: Promotion opportunity, Ethical climate, Organisational performance, PLS

SEM, Nigeria.
This paper presents an empirical investigation of the mediating effect of ethical climates
on the relationship between promotion opportunity and organisational performance in
Nigerian educational sector administration. OP can be critically described as a function
135
of the organization capability to possess, improve, and use physical goals and objectives
with an acceptable disbursement of a resource while ensuring sustainability over a long
period, and good performance in an organization always means the work done efficiently
and effectively and remains much relevant to the authorities (Ali, 2011; Moullin, 2007).
Similarly, OP can be described as the process in which organizational success is measured
with respects to the significance it creates and deliver to internal and external forces
(Antony & Bhattacharyya, 2010).
Although, to achieve OP, activities in administration are thought to be a standout among

the most important factors and it is also sees as the most studied construct in the
organizational field (Agami, Saleh, & Rasmy, 2012). For over two decades, performance
improvement is the major concern of public sectors organisation and beyond globally
(Al-Dhaafri, Al-Swidi, & Yusoff, 2016) In General, every governments consider to look
for how to enhance its OP as well as sectors performance in ensuring integrity,
transparency, citizen satisfaction, program outcomes, citizen participation, enhancing
accountability, utilization of public resources, as well as fighting against bribery and
corruptions (Ashour, 2004). Considering the fact that, public sector of different countries
are shaped by many factors, but they share common challenges. For instance, lack of
attaining performance makes public sector organizations more rigorous than it is in the
private organizations. In this regards, in ability of public sector organization to perform
and compete with global world, give opportunity for researchers to intensify investigation
on why public organizations are not performing more particularly educational sector
administration. (Osborne, Radnor, and Nasi 2013). Even though, educational sector
administration serve as the mechanism used for formulating and implementing
educational system policies and programme, still it’s faces some challenges both
externally and internally.
However in Nigeria, performance of PESA is not satisfactory, in which the sector

performance became very unfortunate compared its counterpart (countries from the same
continent) for instance, countries like Algeria, Egypt, S/Africa, Tunisia moved a head of
Nigeria based on the statistics and ranking by United Nation Development report (e.g.,
Algeria ranked 93, Egypt 112, S/Africa 121, Tunisia 94, with 64%, 66%, 67%, 49% out
of 186 respectively while Nigeria remained in the bottom line holding 153 position with
47% in the global ranking. This shows these African countries are all a head of Nigeria
interms of performance and satisfaction with the quality of education in their respective
nation (WorldBank, 2010). Despite the fact that Nigeria serve as the most populous
country in the continent and the third country interms economic growth after S/Africa and
Egypt respectively (WorldBank., 2010), While this sector remained the back born of any
country economy as well as development (Aluede, Idogho, & Imonikhe, 2012;
WorldBank., 2013; WorldBank, 2010), but in Nigeria, performance in PESA is very
unfortunate, hence, there is need for more investigation.
Previous studies were conducted to identified some factors that influence OP, for example,
organizational learning (Barba-Aragón, Jiménez-Jiménez, & Sanz-Valle, 2014; Garcia-
Morales et al., 2012; Jiménez-Jiménez & Sanz-Valle, 2011; López, Peón, & Ordás, 2005;
Tippins & Sohi, 2003), commitment (Ali, Rehman, & Ali, 2010; Pinho et al., 2014;
Rodrigues & Pinho, 2010), quality management practices (Appiah-Fening, Pesakovic, &
Amaria, 2008; Fening, 2012; Phan, Abdallah, & Matsui, 2011), organizational support
136
(Hau-siu, Lo, Sha, & Hong, 2006; Joiner, 2007), environment (Chandrasekar, 2011; Cosh,
Fu, & Hughes, 2012). Others investigated the influence of interpersonal trust (Bakiev,
2013; Paul & Mcdaniel, 2004), personality (Barrick, Mount, & Judge, 2001; Soane,
Butler, & Stanton, 2015), attitudes (Gregory et al., 2009; Jaekwon Ko & Smith-Walter,
2013; Ko et al., 2013) among others.
Generally, all the above highlighted earlier studies guide us to understand factors that
influence OP, however, literature confirmed that studies on the connection between
promotion opportunity and OP are few more particularly in public sector organisation
(Paauwe, 2009; Paauwe & Boselie, 2005; Prowse & Prowse, 2010, 2016). The little ones
on public sector are not focusing on educational sector. Even if there are many, the
fundamental reasons why and how promotion opportunity influence performance which
has a long argument in the literature and still not clearly discussed. Importantly, Theory
of Resource Based View (RBV) stress that, internal resources considered to be one of the
best factors that can improve competitive advantage among the competing organisation.
In related development, promotion opportunity can be regarded as internal factor that can
create competitive advantage and improve performance. In this regards, this study
empirically investigate the effects of ethical climate (EC) as mediating factor among the
two variables (promotion opportunity and OP) as suggested by previous studies
(Arulrajah, 2015; Manroop, Singh, & Ezzedeen, 2014) and also confirmed the argument
of RBV, which stated that human resource system can leads to competitive advantage
through resources that are indirectly within the organizational circle like ethics (Barney,
2001; Reed & DeFillippi, 1990; Wright & McMahan, 1992).
The variable EC had been discussed earlier in the literature by Victor and Cullen (1987;
1988). EC can be defined as “prevailing perceptions of typical procedures as well
organizational practices that have ethical content” It is also regarded as set of norms,
procedures, policies and practices walled in organizational lifecycle that usually guided
an employees to conducts their behavior with high level of ethics for organizational
development (Martin & Cullen, 2006; Schluter, Winch, Holzhauser, & Henderson, 2008).
In related argument, Parboteeah, Seriki and Hoegl (2013), stress that, human resource
management system can influence EC so as to voice an imperative space to realize the
ethical orientation in organization. However, previous studies reported EC as strong
predictor of OP (Arulrajah, 2015; Hijal-Moghrabi, Sabharwal, & Berman, 2015).
Considering the importance of human resource management system (promotion
opportunity) in influencing EC in order to predict OP, still studies on these relationship
(PRO, EC and OP) are scanty in the literature, there is need for further investigation to
re-confirm the significant effect of EC on the link between human resource management
system (promotion opportunity) and OP as well as success (Parboteeah et al., 2013; Thite,
2013). Hence, considering EC as mediating variable would have significant policy
implications on performance improvement more particular in Nigerian PESA.
2.1 Literature Review and Hypotheses Development
2.2 Promotion opportunity and OP
Promotion opportunity system affects nearly all aspects of organizational circle, mostly
evident from studies of HRM (Katou & Budhwar, 2010; Phelan & Lin, 2001; Poole &
Warner, 1998). Promotion opportunity simply been defined as the degree of professional
upward flexibility within the organization. In the other hand, it is the kind of official
137
appreciation or acknowledging of one’s performance from the top (Tan, 2008). According
to social exchange theory Blau (1964) personnel that are promoted feel and considered
valued by the organization is likely to pay back the organization through their
commitment and involvement. Given the significance of promotion opportunity in an
organizations, it is amazing that only few studies have make an effort to study the role of
different environmental, job factors and organizational on the effectiveness of promotion
opportunity systems (Allen, 1997; Ferris, 1992).
An imperative discussion on the promotion opportunity systems have been found in the
literature for both theoretical and empirical perspective. Several empirical studies link
promotion opportunity and OP, the study conducted by Katou and Budhwar (2010) HRM
practices and OP in Greece manufacturing sectors, the result revealed that promotion
opportunity is one of the strong determinant of performance. Again, the study of Bonavia
and Marin-Garcia (2011) in European context Spain, 76 establishment used as sample in
ceramic tiles, the regression result shows that promotion is positively related to OP.
Moreover, Phelan and Lin (2001) conducted study in American context, with promotion
opportunity and OP, the result revealed that promotion found positively significant to OP.
However, some studies used promotion opportunity to predict performance, but found
contrary result. The study of Akhtar et al. (2014) in Asian context Pakistan, the result
shows that promotion opportunity was not found significant to commitment and
performance outcome. Similarly, the study of Fey, Morgulis-Yakushev, Park, and
Björkman (2009) in Western context were the promotion used as one the determinant of
performance, but the result explained contrary it shows indirect relationship with the
performance. Again, another study carried out by Wright et al. (2003) in European
context specifically in UK business firms using 50 sample, result revealed that promotion
opportunity found insignificant to OP. The argument in the literature is how promotion
opportunity improve OP as tested and reported by some previous studies like, Katou and
Budhwar (2010) and Bonavia and Marin-Garcia (2011) this is clearly shows employee
career opportunity motivate them to improve their performance and in return increase
organization superior performance.
To summarize, prior studies conducted on the link between promotion opportunity and
OP are mostly concentrated in business firms, private and manufacuring sector with few
in public sector. Similarly, majority of these studies were found in Asian, European and
American context there by neglecting sub-saharan African countries particularly Nigeria.
Equally, majority of these studies failed to utilize the power of second generation analysis
techniques like, PLS-SEM in testing the relationship among the variables with moderator
or mediator concurrently. Again, literature discovered that the link between promotion
opportunity and OP is inconclusive as there are inconsistencies findings. Despite the
inconclusive result in the literature between the two variables, promotion opportunity and
OP, still the relationship is more significant. In general, this study considered the
deficiencies of the previous studies and address it, by using mediating variable to explore
the relationship between the promotion practice and OP on why and how the link exists.
Based on the evidences in the literature, this study considered promotion opportunity as
imperative variable in predicting performance of Nigerian PESA using PLS-SEM
analysis techniques
H1: There is significant relationship between Promotion opportunity and OP
138
2.3 Mediating effects of ethical climate on the relationship between Promotion

opportunity and OP
Ethical climate viewed as sharing opinions of what correct behavior is on ethical ground
and how ethical matters should efficiently and effectively manage (Victor & Cullen 1987,
1988) EC explained how an organization responds to ethical matters. Literature argued
that EC determines right or wrong of what people trust and shapes their ethical decision
making and conduct (Lopez, Rechner, & Olson-Buchanan, 2005).
Relatively, Schluter et al. (2008) stress that EC implies the organization’s policies,
practices and procedures on ethical matters, and it influences employees attitude and
behavior and serves as an orientation for employee behavior. In this regards, EC play an
imperative role in improving OP. It consider essential, organizations set ethical values for
its employees alongside providing an enable atmosphere that encourages ethical behavior,
capable leadership, trust, commitment and creates workforce value to improve OP (Hijal-
Moghrabi, Sabharwal, & Berman, 2015).
However, literature established that challenges facing educational sector are surrounded
with unethical values between the employees and the organization which is an impressive
issue that need to be encounter for the organizational performance improvement as well
as employee’s behavior.
Therefore, disregarding of ethical values that within the organizational system may lead
to unfortunate performance as well as inadequate productivity. For that reason, ethical
values are regarded as essential component for sustaining superior performance and
encourage competitive advantage (Trust, 2015). Equally, its revealed about the growing
concern and the existence of unethical behaviors within the educational sector
organization, in this respect, several issues that create some lots of unethical challenges
such as poor service delivery, abuses, scandals, mismanagement, lack of performance as
well as bribery and corruption. In the same manner, changing the unethical conduct of
employees within the organizations, through the effects of EC may result to huge
significant of performance improvement and entire system (Arulrajah, 2015). In line with
the above discussion, EC boosts and enforces the employees to acquire suitable ethical
behaviour in discharging their responsibilities within the organization. In this regards,
ethical behaviour of an employees viewed as essential in realizing organizational success
and performance (Brown, Stilwell, & McKinney-Gonzales, 2005; Winstanley & Hartog,
2002).
Although the link between promotion opportunity and OP has been tested empirically,
the procedures through which promotion opportunity influence OP needs to be make clear.
To clarify this, there is need to develop and test the mediating mechanism through which
promotion opportunity utilization can leads to improved OP. Previous studies revealed
that EC link to OP. For instance, the study carried out by Sabiu, Mei and Joarder (2016)
in African context Nigeria in particular, investigated the influence of EC on OP using 181
sample from some selected public educational sector from North-western region. It was
found that EC significant associated to OP. Similarly, Hijal-Moghrabi et al. (2015)
conducted study in Western Context United State of America (USA) in particular with
1,695 sample in quantitative analysis, the result shows that, there is positive relationship
between EC and OP. Similarly, one study also by Bowman and Knox (2008) investigate
the influence of ethics on public managers in American public sector, it was found that
ethics significantly predict OP. Furthermore, RBV highlighted that human resource
139
systems can directly influence OP through resources that are impressively woven in
organization’s history ethics and culture (Barney, 2001; Reed & DeFillippi, 1990; Sabiu,
Mei, & Joarder, 2016b; P. M Wright & McMahan, 1992).
Additionally, human resource management perspective stress that EC shows an

imperative window to understand the ethical positioning in organization. Understanding
the existence of EC in organization can also be very much suitable as an origin for
emerging human resource system (promotion opportunity) to foster an ethical climate
(Parboteeah et al., 2013). In related manner, human resource management system
promote ethical behaviors among employees within the organizations, in this regards,
human resource experts simply believe that they surely have an ethics management ability
to incorporates ethics management (Caldwell, Truong, Linh, & Tuan, 2011; Van Vuuren,
& Eiselen, 2006). Based on the stated argument, human resource management leadership
hierarchy are basically respected for integrity, as they are capable of solving complex
ethical predicaments (Arulrajah, 2015). Despite the literature argument, still there is needs
for more empirical investigation on link between promotion opportunity, EC and OP.
Hence, the following hypotheses were developed: -
H2: There is significant relationship between promotion opportunity and EC
H3: There is significant relationship between EC and OP
The prior hypotheses highlight the linkages among promotion opportunity, EC and OP.
Indirectly, the discussion proposes that promotion opportunity affect OP through the of
impact EC. That is, organizations can properly utilize human resource management
system (promotion opportunity) to promote ethical climate as well as improve employee’s
behavior, which in return will improve OP. Thus, this study argues that EC may plays a
mediating role on the link between promotion opportunity and OP. More formally, the
study tested the power of EC to mediate the link between promotion opportunity and OP,
specifically in Nigerian PESA. Hence, the following hypothesis were proposed: -
H4: EC mediates the relationship between promotion opportunity and OP
3.1 Methodology
This study is a survey research and cross sectional in nature and data used for this study
were collected between April to July 2016 using a questionnaire instrument that was self-
administered to 216 ministries of education, parastatals, boards and agencies in seven (7)
of Northern Nigeria. From the 216 questionnaires administered 181 questionnaires were
usable, duly filled and returned, a response rate close to 81% percent. To be able to
determine the consistency of the study instrument, a content validity was also conducted.
All the instruments (items) used in the questionnaire were adapted from various sources
with suitable internal consistency reliability and validity were confirmed in the literature.
The internal consistency reliability of the construct was evaluated using composite
reliability and computed Cronbach’s alphas values. Additional, discriminant validity was
also assessed to consolidate the authenticity of the study instrument scales.
140
4.1 Research Model
The model including promotion opportunity, ethical climate and organizational

performance was assessed using two-step approach such as measurement model and
structural model (Hair, Hult, Ringle, & Sarstedt, 2014).
Ethical Climate
Promotion Organizational
Opportunity Performance
Figure 1:
Research Framework
4 Analyses of Findings
This section discussed how the data collected in the course of the study analyzed using
SmartPLS 3.2.6 (Hair, Hult, Ringle, & Sarstedt, 2016). Measurement model assessment
was commenced where the composite reliability, Average variance extracted (AVE) and
item loadings of the study constructs were evaluated as well as discriminant validity were
also examined for all the reflective constructs (promotion opportunity, OP). For the
formative constructs (EC) the collinearity and significance assessment were also carried
out. The structural model assessment was undertaken by testing the path coefficient
(hypotheses) among the variables under study were decisions on the supported or rejected
of the hypotheses was also indicated, assessment of R2 square, effect size f2 and predictive
relevance of the whole model.
4.1 Measurement Model Evaluation
As discussed earlier in the methodology, the study used SmartPLS 3.2.6 (Hair et al., 2016)
as the instrument for analysis. This instrument analyses data for measurement models
which is filtering the model for all the reflective constructs (PRO and OP). The
measurement model basically determines the reliability of the measurement scales used
in the study and it also treats the goodness of fit of the model to be able to determine the
global applicability (Ramayah, Lee, & In, 2011).
141
Table 1
Factor loading, Composite reliability and Convergent validity analysis
Constructs Items Loadings Composite reliability AVE
Organizational OP10 0.76 0.84 0.51
Performance OP3 0.68
OP5 0.69
OP6 0.64
OP7 0.78
Promotion Opportunity PRO5 0.76 0.79 0.56
PRO6 0.70
PRO7 0.79
The Table 1 above demonstrated the results of the factor loadings, composite reliability
and AVE calculations of all the reflective constructs (PRO, OP) under study. As revealed
in the Table 1, the AVE values that range from 0.51 to 0.56, with consistent composite
reliability values also ranging from 0.79 to 0.84 interprets that the items employed in the
study measure the constructs and as well show an attainment of convergent validity.
Therefore, CR, Factor loadings and AVE in this study are suitable and achieved as
recommended by Hair et al. (2014). The following Table (2) presents the result of
discriminant validity evaluation.
Table 2
Discriminant Validity (Fornell-lacker criterion)
Constructs OP TD
OP 0.712
PRO 0.536 0.750
The above Table 2 displays the assessment of discriminant validity was conducted to
assess the degree to which measures of constructs are related. To achieved that, the square
root of the AVE of each construct was taken into consideration. As revealed in Table 2,
along the crosswise are the values of the square root of the AVE which are higher than
all those values that are off the crosswise and that confirm suitable discriminant validity.
In this respect, this means that loadings above are greater than the loadings and cross
loadings.
Assessment of the collinearity and significance of formative construct
The assessment of the collinearity test of the formative construct (EC) was also
undertaken to ascertain the relative and absolute contribution of the dimensions to the
main construct (EC). Table 3 displays the analysis.
142
Table 3
Assessment of the collinearity test and significance of formative construct
VI T
Formative Formative Toleranc Outer
F Outer Statistics
e
Construct Indicators Loadings
Weights
Benevolen 2.0
0.43 0.51 0.93 4.67***
ce 2
Ethical 2.1
Egoism 0.34 0.43 0.92 3.47***
Climate 7
2.1
Principled 0.37 0.17 0.79 1.47*
1
Figure 2
Measurement model (Algorithm)
4.2 Structural Model Evaluation
This section discussed the testing of hypotheses, R-square R2, effect size f2, and
predictive relevance. In this study, it was carried out using bootstrapping output and the
decision on the supported or not supported of the hypotheses was based on t-values at 5%
level of significance.
Table 3
Hypotheses for direct relationship and indirect relationship (EC->OP, PRO->EC and
PRO and OP)
Construc STD- T-
ts Beta Error values Decision
143
PRO ->
OP 0.19 0.07 2.94 Supported
PRO ->
EC 0.62 0.05 12.04 Supported
EC -> OP 0.55 0.06 9.08 Supported

***P<0.001, **P<0.01, *P<0.05
As shown in the Table 3 above, all the three direct relationships hypotheses look to be
significant thus, promotion opportunity (PRO) and organizational performance (OP)
proves significant relationship with a β value = 0.19 and a t-value of 2.94. Also, the link
between promotion opportunity and ethical climate (EC) revealed significant relationship
with a β value = 0.62 and a t-value of 12.04. Finally, the speculated relationship between
the ethical climate and organizational performance (OP) is also supported with β value =
0.55 and a t-value of 9.80 respectively.
Testing the Mediating effects of Ethical climate
In testing the mediating effects of ethical climate on the link between promotion
opportunity and OP, the result used in PLS 3.2.6 in estimating the indirect effects among
the variables (promotion opportunity, EC and OP) at 0.00 level of significance. Table 4
presents the mediation hypothesis of the study.
Table 4
Mediation hypothesis
Hypotheses Beta Std Error T-value Decision
PRO -> EC->OP 0.34 0.05 7.33 Supported
***P<0.001, **P<0.01, *P<0.05
Table 4 above presents the mediation of hypothesized relationship of ethical climate (EC)
on promotion opportunity (PRO) and organizational performance (OP) is also supported
with β value = 0.34 and a t-value of 7.33. The study model is presented in Figure 3 below.
However, Hair et al. (2016) suggested for confidence interval calculation and Smart PLS
3.2.6 automatically generated the confidence interval estimation at 5 percent lower level
(LL) and 95 percent upper level (UL). Table 4 indicates confidence interval calculation.
Table 5
Confidence interval calculation for Mediation test
Hypotheses a*b 95%
Relationship Path Path (Beta) 5% UL Decision
a b LL
0.0
H4 PRO->EC->OP 0.62 0.55 0.34 2 ]0.12 Supported
Note: Hypothesis is supported when there is no zero (i.e. when LL has negative sign and
UL has positive sign) between LL and UL
144
Figure 3
Structural Model for Mediation relationship
Coefficient of Determination for Mediating Relationships (R2)
Another criteria used for assessing structural model is coefficient of determination (R2)
of endogenous construct (Hair et al., 2014; Hair et al., 2011, 2012; Henseler et al., 2009).
According to Chin (1998); Hair et al. (2011); Hair et al. (2014) and Hair et al. (2016) R2
values of 0.75, 0.50 and 0.25 shows substantial, medium and small R2 values respectively.
Similarly, Falk and Miller (1992) suggests 10% as a minimum acceptable level of R2
value.
Table 6
Variance Explained in the Endogenous Latent Constructs
Constructs Variance Explained (R2)
Organizational Performance 48%
Ethical Climate 38%
From Table 6 above, R2 value of all the endogenous constructs (EC and OP) are small
with (0.38) and (0.48) values respectively.
Assessment of Effect Size (f2)
Having achieving the coefficient of determination R2 (EC and OP), the next assessment
is effect size (f2) as recommended by Hair, Ringle, and Sarstedt (2013). Cohen (1988)
describes f2 values of 0.02, 0.15 and 0.35 as having small, medium, substantial effects
respectively. However, Chin, Marcolin, and Newted (2003), stress that, smallest strength
of f2 of exogenous constructs on endogenous variables should be considered with an effect.
Henceforth, the effect size for exogenous constructs could be assess using the formula
below (Cohen, 1988; Selya, Rose, Dierker, Hedeker, & Mermelstein, 2012). Table 7
displays the effect size value of mediation model.
145
Effect size: f2= R2 included - R2 Excluded

1-R2 Included
Table 7
Assessment of the Effect Size for Mediating Relationships: F-Square
Constructs R2 Included R2 Excluded f-squared Effect Size
PRO-OP 0.48 0.29 0.19 Medium
PRO-EC 0.38 0.00 0.60 Large
EC-OP 0.48 0.45 0.07 Small
Table 7 above revealed the effect size values of 0.07, 0.19 and 0.60 considered as small,
medium and large having suitable effect size.
4.3 Assessment of Predictive Relevance
This study further assesses the predictive capacity of the whole model. It was carried out
through blindfolding procedure to determine how the values are assembled around the
model. The result of cross validated redundancy was used because it explains how capable
the model is to predict the endogenous constructs. It is believed that any model above “0”
has predictive relevance, it has the ability to predict relationship and if the value is “0”
and below means the model has no any predictive power (Geisser, 1974; Stone, 1974).
Table 8
Predictive relevance Q2
Total SSO SSE 1-SSE/SSO
OP 905 704.81 0.22
Note: SSO (sum of square root observations) SSE (sum of square root predictive errors)
Table 8 shown that in column 4, Q2 revealed an outstanding relevance of 0.22 for the
endogenous construct (organizational performance). Therefore, based on Chin (1998),
Geisser (1974), and Stone (1974) the model of this study has medium predictive
relevance. However, predictive relevance cannot be carried out on formative construct
(ethical climate) (Hair et al., 2014).
146
Figure 4
Predictive relevance for Mediation Model
5. Discussion of Findings
This study investigates the mediating effect of EC on the relationship between promotion
opportunity and OP. Statistically, result revealed that all the study hypotheses were found
significantly supported. The relationship between promotion opportunity and OP is found
significant in this study. The finding is consistent with some previous studies (Bonavia &
Marin-Garcia, 2011; Katou & Budhwar, 2010; Phelan & Lin, 2001) who in their studies
individually discovered that lack of promotion of employees hinders OP. Though,
promotion opportunity considered as internal resources where by prompt and timely
promotion of employees may leads to OP, maximum level of OP depends on the higher
level and timely promotion of employees in the organization. Relatively, organizations
need to strategies their plans appropriately in utilizing the available internal resources
(promotion opportunity) in particular. For that reason, it is indicating that if Nigerian
PESA comprehensively focus on timely and prompt promotion to employess when due,
in return, will massively contribute to effective OP. Similarly, the hypothesis on the link
between promotion opportunity and ethical climate is found significant and supported in
this study. The finding was backed up the argument of some previous literature (Arulrajah,
2015; Manroop et al., 2014), the ability of organization to properly and timely promote
its employees can emotionally effect ethical behaviour of personnel within the
organization, such ethical behaviour usually depends on the effective functions of the
system itself (Foote, 2001) In related development, the role of promotion opportunity in
nurturing EC as well as ethical behaviors in organizations considered imperatives
(Caldwell et al., 2011). Hence, Nigerian PESA needs to be more concern in given
opportunity to employees in terms promotion to purposely nurture organizational ethical
system, in return attain superior performance. Furthermore, the hypothesis on the
relationship between ethical climate and OP also supported. The findings concur with
some previous studies (Sabiu et al., 2016b; Sabiu, et al., 2018; Sabiu, Mei, Tang Swee,
et al., 2018) it’s clearly revealed that, EC as an important factor help in organizational
performance improvement. Therefore, Nigerian PESA needs to emphasize on tackling
issues related to unethical conducts to improve the sector performance.
147
Lastly, the mediation hypothesis (ethical climate) on the relationship between promotion
opportunity and organizational performance. In support of that, RBV theory highlighted
that human resource system (promotion opportunity) can create and sustain competitive
advantage in organization through resources that are within the organizational capacity
for instance; ethics and culture (Manroop et al., 2014). In related argument, theory stress
that success is determined by the organization’s resources controls and the uniqueness of
these resources (promotion opportunity and EC) (Amit & Schoemaker, 1993).
Considering the stated argument, Nigerian PESA can appropriately utilize the postulation
of the RBV theory in respect of internal resources that can leads to competitive advantage
in organization as well as the validation of this assumption in implementation and
confirming the resources (promotion opportunity) that can influence performance and
competitive advantage more particularly through ethics.
6. Conclusion
This study was carried out to understand the mediation effect of ethical climate on the
relationship between the one of essential human resource management practice
(promotion opportunity) on OP. The findings demonstrated that ethical climate is capable
of mediation the relationship between promotion opportunity and OP. The study
contributes to the existing knowledge by examining the relationship between promotion
opportunity and OP in Nigerian educational sector administration empirically. In related
manner, a lot of studies established that there is a link between promotion opportunity
and OP without proving why and how these relationships exist; this study contributes to
knowledge by establishing empirical evidence that promotion opportunity can influence
OP through a mediating factor (EC) which yet to be explored in the academic literature.
Additionally, this study is among the few studies that examine the mediating effect of EC
on the relationship between promotion opportunity and OP. Basically, the results of this
study will help the administrators, managers, policy makers/stakeholders and policy
implementation committee in Nigerian PESA ministries, boards, agencies as well as the
parastatals to be encourage and ensure timely and prompt promotion opportunity were
given to employees that can creates ethics among the personnel and the system in general
to enhance superior performance. In conclusion, the study recommends the use of large
sample, other country educational sector administration can also conduct a similar study
using other individual practices or bundles to replicate the result of this study. Future
research can use smart PLS SEM latest version or any other second-generation analysis
technique to re-confirm the model.
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PUBLIC PRIVATE PARTNERSHIP IN NIGERIA: AN

ALTERNATIVE TO GROWTH AND DEVELOPMENT
Nurudeen Bello Ahmeda Sabiu Salihu Malamb Benazir Ahmed Siddiquic
a
Department of Business Administration and Management
Umaru Ali Shinkafi Polytechnic, Sokoto
talktonura@yahoo.com
b
Department of Public Administration
Umaru Ali Shinkafi Polytechnic, Sokoto
sabiumsalihu@yahoo.com
c
benazir.ahmed@gmail.com
Abstract
Nigeria, being one of the African countries suffers a lot of infrastructural deficits. As a result,
present and previous governments had made efforts to bridge this gap which is still lagging behind.
Public Private Partnership (PPP) is considered to be one of the options that government is yet to
fully exhaust. This paper therefore, attempts to examine the problems associated with full
adoption of PPP model in Nigeria. Using secondary sources of information, content analysis was
employed as method of data analysis. The study found among others that Public Private
Partnership is an effective measure through which infrastructural deficit will easily be overcome
and to bring accelerated and meaningful developments in Nigeria while contract agreements and
arrangement bottlenecks and lack of cooperation by the stakeholders in fulfilling the required
obligations served as impediments to fully adoption of PPP in Nigeria. The study therefore
recommends that the government’s policy on ‘ease of doing business in Nigeria’ should be
enhanced and sustained to remove all the bottlenecks associated with PPP.
KEY WORDS: Infrastructural deficits, Public Private Partnership (PPP), Growth and
Development
1.1 INTRODUCTION
In the quest to bridge infrastructural deficit gap world over, is the manifestation of Public Private
Partnership (PPP). Oni and Akinbinu (2005) defined public private partnership as a contractual
arrangement between public sector and private sector to achieve a well- defined and shared
objectives in a well-managed cost effective, efficient and sustainable manner. The recent quest
for alternatives to develop infrastructure all over the country to boost economic activity has always
become a mirage because if the inability of government to provide the basic infrastructure to the
teeming populace. Consequently, Price Water Coopers (PwC) in 2015 described PPP as a
popular tool for funding new infrastructure projects around the world. It further detailed that using
PPP to develop infrastructure provides governments opportunity to move large up-front capital
funding off their near term financing commitments. The objective of this paper is to set a pace for
the adoption of PPP in infrastructural provision in Nigeria and to bridge the gap for the present
infrastructural deficit currently in the country. Similarly, the methodology employed is the content
analysis. It is defined as a technique for objective, systematic and quantitative description of the
manifest content of communication (Selltize, 1977). In this regards, the paper involves a review
of existing secondary source in books, journals, magazines and newspapers that also involves
non probability sampling using the judgment sampling techniques.
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Consequently, the aim of this paper is for government to see reason why PPP should be regarded
as a model to achieving fast infrastructural growth and development in the country. The paper
also covers 4 major sections i.e. the introductory part with major problem highlighted, objectives
of the study as well as the methodology. The second part of the paper covers the conceptual
review of public private partnership, types and their operational framework. Others are tables
indicating global, Africa level of infrastructure financial commitments showing their levels of
private sector participation in infrastructural building.
2.1 THE CONCEPTS OF PUBLIC PRIVATE PARTNERSHIP TYPES & THEIR OPERATIONAL
FRAMEWORK
Admittedly, to Marcus, Ayodele and Nnaoma (2009) the Public Private Partnership model relates
to a combination of two sectors probably with inconsistent goals. Also Marcus etal (2009) submits
that public sector goal focuses on efficient delivery of services to the populace with or without
profit. However, that of the private sector operator relates to profit maximization under any
circumstance. Furthermore, Marcus etal (2009) engaged that, in recognition of the conflicting
goals, two issues become necessary for clarification to make the PPP model desirably effective,
particularly in infrastructural development. The two issues relate to: i). the type of applicable PPP
suitable for specific project development and ii.) the appropriate operational framework for
effective co-operative working arrangement(s).
Solomon, Opawole & Akinsiku (2012) sees PPP as suitable for all types of infrastructural projects.
What needs to be done is to ensure that all the success factors responsible for successful
implementations of PPPs are well structured in a way that its optimum performance can be
achieved. Dahiru (2012) observed that PPP regulation exists within ever changing social and
economic conditions, it must be both adaptable and predictable at the same time. World Bank
2006 (as cited in Dahiru 2012) suggested that the best way to ensure optimum performance is
for the PPP regulatory systems be subjected to ongoing and periodic reviews to make sure they
are fully functional and reflective of social and economic realities, and help to achieve the stated
and agreed objectives.
2.2 PUBLIC- PRIVATE- PARTNERSHIP TYPES
In the work of Marcus, Ayodele & Nnaoma (2009), they also submit that there are a few varying
types of PPP form and specifically where planners can make a careful choice which also has not
been found different from other types or forms of PPP models. They further argued that a careful
selection of an appropriate type of the required PPP is a function of some factors which relate to:
i. Knowing the position of the country on the global development spectrum;

ii. Socio-economic conditions of the country;
iii. Analysis of the socio-economic problems which each PPP from would be helpful in
solving;
iv. The structures and peculiarities of the public and private sectors and
v. A critical but careful comparison of all types of PPP
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Table 2.1 showing types, feature and examples of PPP

Types of PPP Features Example
Operation and The Government contracts A broad range of municipal

Maintenance with a private partner to services including water
operate and maintain a and waste water treatment
publicly owned facility. plants: solid waste water
removal; road & parks
maintenance; public
infrastructure and building
projects including roads
and highway, electricity
projects etc.
Design – Build Government contacts with Most public infrastructure

a private partner to design and building projects e.g
and build a facility that roads, highways, water &
conforms to the standard & waste water treatment
performance requirements plants, sewer and water
of the government. Once system, arenas, swimming
built, government takes pools, other government
ownership and is facilities including energy
responsible for the facilities
operation of the facility
Turnkey Operation Government provides the Applicable where the

finances for the project but sector public sector
engages a private partner maintains a strong interest
to design, contract and in ownership but seeks to
operate the facility for a benefit from private
specified period of time. construction and operation
Performance objectives of a facility e.g.
are established by the infrastructural facilities
public partner who
maintains ownership of the
facility
Wrap Around Addition A private partner finances Infrastructural facilities

and constructs an addition e.g. roads, water systems,
to an existing public water and waste water
facility. The private partner treatment plants,
may then operate the recreation facilities (ice
additional facility for a arenas and swimming
specific period of time or pools) and electricity
until partner recovers the facilities
investment plus
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reasonable return on the

investment
Build-Own-Operate The private developer Most public infrastructure

Transfer (BOOT) obtains exclusive franchise services and facilities
to finance, built, operate, including electricity
maintain, manage and facilities, water and waste
collect user fees for a fixed water systems, recreation
period to amortize facilities, airports,
investment. At the end of government administration
the franchise, title reverts and operations buildings,
to a public authority packing facilities and solid
waste management
facilities
Build-Own-Operate (BOO) The government either Most public infrastructure

transfer ownership and and facilities such as the
responsibilities for an electricity facilities, water
existing facility or build, and wastewater systems,
own operate a new facility parking facilities,
perpetually. The operating recreation facilities,
partner generally provides airports, government
the finances administration and
operations buildings
Source: Adapted from PPP Guide for Local Government, Ministry affairs, B.C. Computed in
NISER (2005)
Operations and Maintenance, here under the PPP arrangement, contract is entered between the
parties (i.e. public and private) to maintain public property/facility for a specific period of time after
which it later handover the property /facility back to the government on expiration of the terms of
the contract. For example, Coral Hotels was contracted to maintain and operate Giginya and
Shukura Hotels in Sokoto until the contract expired late last year where government took over full
ownership.
In the case of Design and Build, the PPP arrangement is that here, government contracts a
partner mainly to design and build after which it takes over ownership unlike in turnkey operations
where government provides finances for the project to a partner to design, build and operate the
facility for a specific period of time and then later takeover on expiration of the agreement. Wrap-
around, a partner finances and constructs in addition to an already existing project/facility. The
partner also operates the facility until its partner recovers what was spent on the project plus
reasonable return on investment. This is also similar to Build-Operate-Transfer (BOT).
In the Build- Own- Operate and Transfer (BOOT), here government invites a partner to finance,
develop and operate a facility/project until it recovers its money. In essence, partner exclusively
reserves a franchise title, and at the end of the franchise, title reverts to the government. While
the Build-Own-Operate, government transfer or retain ownership after which a facility has been
built, owned and operated perpetually, here either way operating partner provides the finances.
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2.3 PPP Operational Framework
For an effective cooperative togetherness of the two sectors the reform would need to work out a
working framework between the two sectors. Marcus etal (2009) believed that the togetherness
would be couched under an effective and operational legal, social, economic and competitive
framework in the provision of effective and efficient production and management of infrastructure
or services. Some elements in the framework could include: i) rules relating to the security of
affected infrastructure shall in case there are hindrance(s); ii) establishment of standards for the
quality of provided infrastructure and the co-existing system between the two sectors; iii) provision
for price and quality regulations in the cases of social, economic, political or natural monopolies;
and iv) establishment of a reward system where efficiency is rewarded and in-efficiency penalized.
For example, before PHCN became privatized, firms (both public and private) as at then were
involved in the development of electricity under the reform programmes in the country that include
Bureau for Public Enterprises (BPE), Energy Commission of Nigeria (ECN), Rural Electric Agency
(REA), Power Holding Company of Nigeria (PHCN) and the Independent Power Projects (IPPs).
Against this background, these should be functional allocation among these electricity agencies
within the selected PPP framework that led to having 8 Distribution Companies of Nigeria
(DISCOs), 3 Generation Company of Nigeria (GENCOs) and Transmission Company of Nigeria
(TRANSISCO) which is still in government ownership at the moment.
2.4 GLOBAL INFRASTRUCTURE FINANCING SHOWING VARYING LEVELS OF

PRIVATE SECTOR PARTICIPATION
Globally Countries are achieving their Infrastructure Objectives through Larger Private Sector
Involvement
Table 2.2
Project Type Country Date Amount Sponsors Multi Lat
(USD M) Support
Yang.- Luzhai BOT China 1-Mar-07 493 MTD Capital

Expressway
Fujian Sanming BOT China 1-Oct-07 55 Hainang T., Hainang

Airport HK Zhilong T., HK
Zhilong
Kanci Pej. Toll BOT Indonesia 1-Mar-07 226 PT Bakrie PT

Road Investindo Bakrie
Investind
o
Kanci Seremban BOT Malaysia 1-Apr-07 272 Antah Antah

Highway M6 & Holdings Holdings
M60 IJM Corp IJM Corp
Bouygues
160
Bouygue
s
Motorway BOT Hungary 1-Dec-07 1588 Colas, John Colas,

Expansion Laing Infra John
Laing
Infra
Norte Sull BOT Brazil 1-Dec-07 798 Copanhiala, Copanhi

Railroad Vale do ala, Vale
Doce. do Doce.
Source: World Bank and PPIAF, PPi Project Database http://ppi.worldbank.org
Ihuoma (2008) opined that inadequate budgetary allocations are one of the reasons for the
country’s huge infrastructure deficit. Consequently, table 2.2 above indicates a wrap-around or
BOT type of the PPP; China engages on the construction of Expressway and Airport, Indonesia,
a toll road and Malaysia a Highway. In Hungary, the PPP project was a motorway expansion and
in Brazil a Railroad.
This demonstrated that PPP project largely engaged into is the Build- Operate and Transfer
model indicating that infrastructural provisions are apt for meaningful development using PPP
engagements. Similarly, all of these projects run into millions of dollars, a sign of relief from
government in the provision of infrastructure to its populace. This in effect allows government to
engage into provision of other basic needs to the people
2.5 INFRASTRUCTURE FINANCING IN AFRICA SHOWING VARYING LEVELS OF

PRIVATE SECTOR PARTICIPATION
Table 2.3 showing private sector participation in PPP for African countries
Project Type Country Date Amount Sponsor Multi Lat
(USD M) s Support
Omdurman Water Treat. Sudan 2007 120 Biwater

water
Treatment
Plant
Kenyan- Railroads Kenyan, 2006 400 Sheltam IDA,M

Ugandan Ugandan Century
Trans.
Railways
Kounoune 1 Electric Senegal 2005 87 Mitsubishi IDA,M

Power Gas Matelec
West African
Gas Coy Ltd Pipeline Benin,Togo 2005 590 Cheveron IDA,M

,Shell
161
Pipeline Coy Ghana,Nigeria

Ltd
Hamma Water Water Treat. Algeria 2005 240 GE

Capital
Desalination
Spa
Umeme Power Power Ugandan 2005 84 Eskom,Gl IDA,M

Distribution Distribution obeleq
Dakar-Bamako Railroads Senegal,Mali 2003 55 Canac,G

etma
Railways
Maputo Port Port Gas Mozambique 2003 70 DP,Gesto MIGA

res,
Grindro,
Mozambique Pipeline Mozambique 2003 1,200 Sasol MIGA

South South
Africa Gas Africa South

Pipeline
Bakwene Toll Road South Africa 2001 450 ACS,CEF

Platinum Toll D,SAIF
Highway
Mpumalanga Airport South Africa 2001 34 ABB

Airport
Terminal
Abijan Port Port Cote d’ivore 2000 140 Maersk,C ADB

Expansion &N,TCI
AES Sonel Cameroon 2000 532
Darling Wind Electric South Africa 2006 10 Darling ADB

Farm Power
Source: World Bank and PPIAF,PPI Project Database http://ppi.worldbank.org
In table 2.3, Sudan engages Bi-water in its water treatment for a PPP arrangement, Kenya and
Uganda went for Railroads, while Senegal entered into PPP for Electric, Power Gas with
Mitsubishi Matelec, and Benin, Togo, a PPP project on pipeline construction with Cheveron and
Shell. Incidentally on the above table, Ghana, Nigeria were set for a PPP project but could not be
achieved due to lack of commitment and political will to do so.
Algeria had a PPP in water treatment by GE Capital and in Uganda in Power distribution. Senegal
and Mali went for Railroads while Mozambique had a PPP project on Ports and Pipelines. South
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Africa also had Toll Roads, Electric Power and Airport under a PPP arrangement and a port in
Cote’d’evore.
For low income countries, infrastructure investment has alluring benefits but also daunting costs
where transportation, communication and power generation are inadequate, their provision can
do much productivity and growth. But where income and productivity are depressed by adequate
infrastructure, the financial resources needed to underwrite. These infrastructural inadequacy
hinders accelerate developmental strides of a country. Furthermore,
Elebute (2008) describes the major impediment to Nigeria’s economic growth-based on the
infrastructure. The Global Competitive Index ranks Nigeria as 19th out of 139 countries in 2008
with serious infrastructural deficits reported by the Federal Ministry of Finance. The state of
infrastructure suggests significant investment requirements to move the country forward.
According to the Central Bank of Nigeria, (CBN) (2008), investment of $510 billion is required
over the next 11 years in rail, power, energy and construction and investment of $104 billion over
next 6 years in power, rail, roads and oil and gas while infrastructure spending of about 20% of
GDP is required to meet 2020 target. The question is for how long should the country continue to
set a mirage visions for itself when the needful is not put on ground?
This same scenario is widely repeated in the energy or power sector, oil and Gas, transportation
inclusive of railways etc. In fact in 2015, the Infrastructure Concession and Regulatory
Commission of Nigeria as a stake holder and regulatory body to PPP and Concessioning projects
in Nigeria reported in their Annual report that there are inadequate funds to support MDA’s and
monitor the implementation of PPP contracts all over the country which hinders developmental
strides.
Although the commission also reported that there is a PPP market in Nigeria, because the market
had expanded due to flow of projects from the MDA’ s in recent times arising from increase in
knowledge and skills to carry out economic and financial appraisals of projects which presently
government on its own is yet to fully explore.
2.6 CHALLENGES OF PUBLIC-PRIVATE PARTNERSHIP IN INFRASTRUCTURAL

FINANCING IN NIGERIA
There are several challenges confronting PPP projects in Nigeria. This ranges from one
particular sub sector to another. They include;
i) Non-Availability of long term financing (10-15 years) with attractive interest rates for
the investment opportunities in the sector especially loans from the financial
institutions
ii) Acquisition of Project assets for possible concessions (to be undertaken in the
future) to refinance Government's investment.
163
iii) Global credit and financial crisis limiting foreign investment in above opportunities.
iv) Local community unrest/hostility in some parts of the country arising from some quota
beliefs of marginalization and the likes.
v) Lack of pool or operations and maintenance personnel to manage projected increase

capacity.
vi) Cooperation and bottlenecks associated with the contract agreements and
arrangement
4.1 CONCLUSION AND RECOMMENDATION
Globally, government is the oldest financier of infrastructure development. It historically used to

be the sole financier, funding infrastructural budgetary allocations. However, due to the need to
balance competing interests, public resources for financing infrastructural development have
dwindled over time. In recent times, about half or a two third of the Federal Government of’ Nigeria
budgetary allocations have been dedicated to infrastructure yet there is nothing to write home
about. It is also established that Nigeria non feature in the ara of active participation in the PPP
projects to finance infrastructural development is far left behind and needed to explore this avenue
as practiced in the advanced countries. This is evident in table 2.2 and 2.3 of the paper.
It is therefore recommended that government should avail it-self through propagated policies to
invite private participation in infrastructural financing using public private partnership.
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165
LEAN MANAGEMENT AND ORGANISATION

PERFORMANCE: THE MODERATING EFFECT OF
KNOWLEDGE TRANSFER
Mohd Norhasni Mohd Asaad1, Mohd Akhir Ahmad`2 and Fadhilah Mohd Zahari3
1
Mohd Norhasni Mohd Asaad
Pusat Pengajian Pengurusan Teknologi dan Logistik
Kolej Perniagaan UUM
06010 UUM Sintok
mnorhasni@uum.com.my
2
Mohd Akhir Ahmad
06010 UUM Sintok
makhir@uum.com.my
3
Fadhilah Mohd Zahari
06010 UUM Sintok
mfadhilah@uum.edu.my
Abstract
Many business companies have endeavored to become world-class manufacturers so they can
compete and stick in today's competitive markets. The situation has prompted the managers of
the companies to implement various effective strategies such as lean management in their ruling
bodies. The execution of lean managements means a systematic approach of various
management methods and practices, which may influence individuals' job content and the
quality of employment. However, adapted concepts from outside countries that have different
backgrounds, some are difficult to succeed. Most companies that fail to implement lean
management begin with lack of understanding and knowledge and awareness of workers with
lean knowledge. Although there have been many surveys conducted on the implementation of
the management system, few works have been performed on the use of knowledge transfer in
the organization to enhance organizational performance. Therefore, this study proposes the
transfer of knowledge as a simplification of lean management relationships and organizations
performance. In summation, this study will also prepare a lean knowledge transfer model to
assist organizations implement knowledge in their establishments. Data collected through
quantitative methods through questionnaires will be sent to companies that carry on legacy
management. This field identifies the advance that all parties should contain, particularly the
organizational management in formulating the management of more effective program
execution.
Keyword: Lean management, knowledge transfer, organizational performance.
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1. Introduction
Today’s global marketplace requires new manufacturing strategies in order to improve the
firm’s efficiency and output. According to Holweg (2007), Lean Management has been adopted
as the best management practice in various industries. In recent years, lean management has been
widely implemented in various industries and sectors (Ezzeddine, 2006; Hamid & Ismail, 2016;
Kaltenbrunner, Bengtsson, Mathiassen, & Engström, 2017). The implementation of this lean
management also attracts other sectors to benefit from its implementation such as the services
sector (Hamid & Ismail, 2016), the health sector (Gomes, Senna, Monteiro, & Pinha, 2016; Simon
& Canacari, 2012) and the construction sector (Kim, 2002; Sarhan, Xia, Fawzia, & Karim, 2017).
Based on Chaplin, Heap, and O’Rourke, (2016), lean management is a mechanism for
reducing costs and if implemented properly, it can be a guideline to become a world-class
organization. However, adapted concepts from outside countries that have different backgrounds,
it is difficult to succeed. Most companies that fail to implement lean management begin with
misunderstanding how to take over lean management (Abolhassani, Layfield, & Gopalakrishnan,
2016; Ballé, 2005). This statement is also supported by (Kumar, R., & Kumar, 2014; Nordin,
Deros, & Wahab, 2010; Rahman, A. M. N., Ghani, J. A., Ho, C. K., & Abusin, 2013) where lack
of understanding and knowledge and employee awareness are also one of the factors why
companies fail to implement lean in the organization them. Hence, it is important for every
employee in an organization to fully understand the 14 management concept from various aspects
so that management practices can be effectively implemented within the organization. Knowledge
is one of the most important aspects of handling a problem, especially in the operating system.
All employees in the organization should have good knowledge and understanding of the
implementation of lean management to ensure that the concept of lean implementation can be
applied effectively(Marodin, Tortorella, Frank, & Godinho Filho, 2017). Lean knowledge refers
to the comprehensive knowledge of lean management, including lean concepts, lean principles,
lean methods and selection of techniques and appropriate management tools that can be used
during their organization (Tortorella & Fogliatto, 2014).
2. Literature Review
2.1 Lean Management

Lean management formerly known as Lean Manufacturing or Toyota Production System
(TPS). The lean history started with Kiichiro Toyoda, which started the carmaker at Toyota
(Lander & Liker, 2007) Womack and Jones (1991), outline five key principles in the organization
to effectively implement the lean.
Among the principles is, determine the value, identify the value stream, create flow, establish
pull, and pursue perfection. The first principle is to determine the value. This first principle means
to determine the correct perspective of the end customer in terms of a particular product with a
certain time and at the appropriate price capability offered. It can help companies to provide their
products or services at the right time at the right prices and meet customer satisfaction. This
condition indicates that, the value is determined by the customer although the product is basically
produced by the company. Therefore, the failure to determine the value correctly when
performing the lean impact is inefficient or produce the wrong product during the production
process (Womack, Jones, & Roos, 2007). The second principle of lean management is to identify
the overall flow of value for each product and eliminate waste. It is a process that gives value.
This second principle is needed to identify and create important and unnecessary actions that are
considered to be detrimental to assist in the flow of workflow during product or service creation
to be more efficient or efficient. This principle is very important to optimize the workflow when
producing the product. The third principle of lean management discussed by Womack and Jones
(1996) is to form the value. This principle aims to continuously organize the flow of value
processes. Once the value has been accurately identified and the value stream for the product or
service is complete, the next stage is to minimize the waiting time and no rework or stoppages in
the workflow continuously. In other words, the flow refers to the improvement or progress
achieved in a process. Where, potential action to cause disruption, delay of weakness or disability
167
can be eliminated. Based on Womack and Jones (1996) argues that the flow is something that can
be achieved through continuous improvement or Kaizen in an organization. The fourth principle
of lean management is to strengthen the pull. This principle emphasizes the response to customer
demand. After a process that does not add value, the production process is only focused on what
the customer needs and when it is needed. This situation will provide the company with the ability
to respond to customer needs. Pull means a process or system that involves the creation of a
product in which a manufacturing process will not be initiated as long as it does not accept the
requirements of the customer. The last principle discussed by Womack and Jones (1996) is
seeking perfection. It is a continuation or a non-stop repair process. Perfection exists after all
wastage activities are eliminated as a whole from the flow of the product manufacturing process
or service flow in line with customers' requests and wants. Perfection can be achieved when a
company is able to carry their processes through the four principles that have been identified i.e.
identifying value, identifying value flows, creating flow and creating pull perfectly
According to Nordin et al., (2010) , the implementation of lean management systems is not
an easy task. To make any changes, an organization needs to identify and understand the barriers
that exist when implementing a lean system. Failure to achieve a willingness to change in lean
management has led the organization not to achieve an effective level of success to continue to
be competitive with other companies.
Based on the table below, the main obstacle in the implementation of lean management is due
to lack of knowledge and understanding of lean causes the implementation of lean management
in the company often fails. Obstacles to lack of knowledge include lack of training, lack of
knowledge in implementing lean management and lack of understanding of the lean.
Understanding the concepts and principles of the lean (Roslin, E. N., Shamsuddin, A., & Dawal,
2013) and lack of understanding of proper techniques and tools are a barrier for them to succeed
in their implementation (Nordin, N., Deros, B. M., Wahab, D. A., & Rahman, 2012).
Table 1: Lean Implementation Barriers

Lean implementation barriers Authors
Lack of knowledge / understanding Zhou, (2016); Misiurek dan Koch, (2014);
Sahwan et al. (2012); Nordin et al (2012);
Bhasin (2012); Rose et al (2013a); Kumar
(2014); (Roslin et al, 2013).
Lack of employee engagement Zhang, Narkhede, dan Chaple, (2017); Al-
Najem et al (2012); Rose et al (2013b); Rose
et al (2013b), Alagaraja (2014).
Lack of resources (Time, Skills, Finance) Belhadi, Touriki, & El fezazi, (2017); Sahwan
at al. (2012); Nordin et al (2012);
Mosadeghrad (2013); Manzouri et al (2013),
Al-Najem et al (2013); Čiarnienė dan
Vienažindienė (2014).
Less management support (Top, Middle) Belhadi, Touriki, dan El fezazi, (2017);
Losonci et al (2011); Langstrand dan Elg
(2012); Bhasin (2012), Manzouri et al (2013);
Kumar dan Kumar (2014)
Lack of strategy Abolhassani, Layfield, dan Gopalakrishnan,
(2016); Bhasin dan Burcher (2006); Muslimen
et al (2011); Karim dan Arif-Uz-Zaman
(2013)
Change Resistance Bhasin (2012); Nordin et al (2012); Roslin et
al (2014); Pourrajab et al (2015)
Company culture Bhasin (2012); Sahwan et al (2012); AlNajem
et al (2012); Pourrajab et al (2015); Mohd
Norhasni Mohd Asaad & Rushami Zien
Yusoff, (2013).
168
Lack of clear communication Angelis et al (2011); Antony et al (2012);

Nordin et al (2012); Sim dan Chiang (2013);
Pourrajab et al (2015)
According to Roslin et al (2013), they need new knowledge and solutions to cultural changes
during the lean-run and transition process within the organization (Nordin et al., 2010). Roslin et
al (2013) also suggested that in order to implement lean management, relevant knowledge must
be addressed by all employees to create a knowledge base, and create an easy path for
implementing lean management within the organization.
2.2 Organization Performance
Organizational performance is an important factor in the daily life of every organization

because the success of an organization is the key to the success of a country's development
(Gavrea, Ilies, & Stegerean, 2011). According to Protopappa-Sieke and Seifert (2010), the success
of an organization will be assessed through organizational financial guidance and organizational
non-financial guidance. Operational performance is located under non-financial guidance which
is interpreted through the measurement of organizational production aspects that occur from
organizational processes (Voss, Ahlstrom, & Blackmon, 1997). For Venkatraman and
Ramanujam (1986), only refers to three aspects of performance, namely financial performance,
business performance and organizational effectiveness which is also meant as organizational
performance.
According to Georgios and Prodromos (2008), organizational performance can be divided
into two parts, namely financial performance and non-financial performance. Financial
performance is the increase in sales, the increase in sales ratio of the company's assets, the increase
in operating income and the increase in operating income ratio of the company's total assets (Dunu
& Ayokanmbi, 2008). Meanwhile, non-financial performance includes customer satisfaction,
productivity, and employee morale, quality of output and delivery performance (Samson &
Terziovski, 1999).
Operational performance is part of the non-financial performance and is defined as the
measurement of organizational outputs resulting from organizational processes (Voss et al., 1997)
while referring to Naveh (2004), operational performance is defined as aspect measurement
release products include disability rate, quality cost, productivity, timely delivery time and
customer satisfaction with the product. Furthermore, according to Voss et al (1997) the
organizational processes also refer to practices which have explained the meaning of practice as
processes undertaken by an organization that aims to increase the way in which the organization
conducts business. Table 2 shows some examples of previous studies on financial performance
and non-financial performance.
Table 2: Previous studies on Organizational Performance

Authors / Year Organization Performance
Financial performance Nonfinancial performance

Powell (1995) Financial performance, TQM program performance
Sales growth, Income
growth (revenue growth)
Samson and Terziovski Customer satisfaction,
(1999) Productivity, Employee
morale, Quality of output and
delivery performance.
169
Shrivastava, Mohanty Quality performance,

dan Lakhe (2006) Business results, Customer
satisfaction, Time dimension,
and Human resource
Hutchinson (2007) Operating Income (Net Demand Fulfillment Rate
Operating Income-NOI) (DFR) Cycle-Time (CT)
Michael, James and Operating costs, ROA / ROE Innovation, Quality, Customer
Satyendra (2009) and Profitability Satisfaction, Customer
Retention, Customer
Retention,
Protopappa-Sieke dan Service level, return on
Seifert (2010) investment ROI, profit
margin and inventory
level.
Ortega Jiménez, Productivity, Quality of output
Domínguez Machuca, & and delivery performance
Vega, (2014)
Fawcett, Jin, Hofer, ROA / ROE and Profitability
Waller, & Brazhkin,
(2016)
2.3 Knowledge Transfer

Knowledge is a process for getting understanding, learning and experience to solve problems
between individuals or groups within the organization. According to Alvesson and Kärreman
(2001), knowledge is an unclear, non-specific phenomenon and dynamic, intrinsic picture related
to meaning, understanding and process and it is difficult to manage. Knowledge is seen as an
important aspect in creating competitive advantage (Gjurovikj, 2013).
Sohrabi and Naghavi (2014) identified two types of knowledge that existed, namely the
explicit knowledge and implicit knowledge. Explicit knowledge can be expressed in words and
numbers and shared in the form of data, scientific formulas, specifications, manuals and so on.
Implicit knowledge is also subjective, intuitive and intuitive. It is also very personal and difficult
to interpret, and makes it difficult to share with others. The implied knowledge and explicit
knowledge are shown in Table 3 which illustrates the characteristics of the implied knowledge
and the detailed written knowledge that has been identified based on the study of the work.
Table 3: Characteristics of Tacit Knowledge and Existing Knowledge

Tacit Knowledge Explicit knowledge
It's hard to say clearly Easier and systematic
Exist in human thinking Learn through teaching, reading, repetition
More to individual and personal Structured and documented
Learn through experience, skills, observation, Easily communicated, coded, stored, shared,
values, feelings and beliefs communicated with others
Unstructured, hard to see, not coded, Available in books, journals, databases and
acquired through communication so on.
170
Knowledge is based on self Achievable
Moved by conversation, discussion, Academic knowledge

storytelling and more.
Know-How Know-What
Source: (Dhanaraj et al, 2004; Dinur, 2011; Lee et al, 2006; Nonaka, 2007, 2009; Smith, 2001;
Suppiah & Singh Sandhu, 2011; Sohrabi & Naghavi,2014).
Knowledge is one of the most important elements of the organization in executing successful
management successfully. However, this problem became a major factor in the failure of
implementing lean management in their organization (Nordin et al in 2010; Rose et al in 2013a;
Roslin et al in 2013; Rose et al in 2013b). Therefore, this study attempts to identify the role of
knowledge transfer in organizations that practice lean management to improve organizational
performance.
3. Proposed Research Framework

The research framework is the most important thing in identifying the concept, the
relationship between the variables and the direction of communication. From the framework of
this study, the research hypothesis can be developed to evaluate whether the theory is formulated
is correct or wrong (Sekaran, 2003). The proposed study framework is to study the role of
knowledge transfer on lean management relationships with organizational performance where
lean management acts as independent variable and organizational performance as dependent
variable while knowledge transfer as moderator variable. Based on Xu et al (2006) the use of third
variables such as moderators or mediators often occurs when the effect of one variable into
another variable. A study conducted by Nawanir, Teong, and Othman (2013) in a manufacturing
company found that there was a positive relationship between lean practices and operational
performance. While the study conducted by Gjurovikj (2013) on the relationship of strategy and
competitive advantage found knowledge transfer as a moderator among them.
Based on the justification mentioned above, the researcher proposes a research framework.
Independent variables Dependent variables
Organisatio
Lean n
Manageme Performanc
nt e
Knowledge
Transfer
Moderator
Figure 1: Research framework
171
Based on the above conceptual framework, a research hypothesis was developed to show the
relationship between the variables studied;
H1: Lean management that has a positive relationship with organisational performance
H2: Lean management that has significant impact on organisational performance
H3: Knowledge transfer moderates the relationship between Lean Management and
Organisation Performance.
3.1 Basic Theory
Lean management approach in business is to minimize the use of material resources that are
closely related to Resource Based View (RBV) theory. It emphasizes on the internal capabilities
of an organization in developing strategies to achieve market competitiveness(Lozano, Carpenter,
& Huisingh, 2015). According to Parry and Turner, (2005) there are four main features in
Resource Based View; the target of achieving returns is higher than the competition; a firm that
has a set of resources combined to form a unique competence; efficiency and survival ability to
achieve better returns so that it is difficult to replicate or replace; new sources of integration which
largely contribute to better and sustainable returns. In Resource Based View (RBV) theory the
source of resources is composed of knowledge-based sources or material-based sources.
Knowledge-based resources are the cornerstone of creating competitive advantage as it is difficult
to imitate. As suggested in theory, firms with exceptional, valuable, independent and irreplaceable
resources will achieve superior performance (Eisenhardt & Martin, 2000). Whereas, Hoopes,
Hadsen and Walker (2003) state that to be a competitive resource, it should consist of three key
features that are valuable, extraordinary, and spared from impersonation. RBV considers firms
have certain assets and expands them well to achieve a fixed advantage (Dickinson, 2009).
4. Proposed Research Method
This study is a survey study involving quantitative methods for examining and obtaining
answers regarding the relationship of the assumptions of variables as contained in the study
concept framework. To all independent variables is believed to have a positive relationship and
significantly affect the dependent variable of this study.
This study involves the collection of empirical data from manufacturing organizations in
Malaysia which practices lean management in production through the use of questionnaires. The
questionnaire developed is structured. The questionnaire was developed to obtain the data needed
for the purpose of analysing the variables as proposed in the framework of the study. The
population of the study was the number of manufacturing organizations in Malaysia and the
sample of the study was based on Krejcie and Morgan (1970). The data obtained will be analysed
using PLS SEM software because of the ability to analyse the relationship between independent
variables, dependent variables and moderator variables.
5. Conclusion
This paper proposes the transfer of knowledge as a moderator variable among the lean
management relationships with organizational performance. The findings of this study will help
industry and academia understand the role of knowledge transfer in the implementation of lean
management. From a practical point of view, this study identifies the approaches that must be
taken by all parties, especially the organizational management in forming more effective training
programs for employees. This training program enhances knowledge and experience among
employees as well as injects learning about new methods for improving work effectiveness. The
success of human development through the transfer of knowledge based on lean management will
enhance the organization's performance and be more competitive in an era of a borderless world.
172
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177
MISMANAGEMENT OF PESTICIDES:
A CASE OF DICHLORODIPHENYLTRICHLOROETHANES
(DDTs)
Azlina Mat Saada, Fadli Fizari Abu Hassan Asarib

a
Pusat Pengajian Kejuruteraan Alam Sekitar, Universiti Malaysia Perlis,
Kompleks Pengajian Jejawi 3, 02600 Arau, Perlis, Malaysia.
Email: linasaad139@yahoo.com
b
Fakulti Pengurusan Perniagaan, Universiti Teknologi MARA, Cawangan Perlis,
Kampus Arau, 02600 Arau, Perlis, Malaysia.
Email: fizari754@yahoo.com
Abstract
Dichlorodiphenyltrichloroethanes or DDTs are part of organochlorine pesticides (OCPs). It is used
globally in pest controlling, including Malaysia. DDTs seem to be a greater potential hazard to the
environment compared to other persistent pesticides due to its’ greater persistence and affinity in
fatty tissues. In huge amount, DDTs cause symptoms and problems such as mood change,
nausea, dizziness, muscle tremors and death. In measuring mismanagement of DDTs,
contamination level is the best indicator can be used. Thus, this paper highlights on the pollution
level of DDTs in aquatic biota (fish, oyster and snail) in Malaysia and other selected ASEAN
countries. In addition, the characteristics, hazardous and environmental fate of DDTs are also
explained in this paper. These are to give a clearer picture on the mismanagement of pesticide
and how this may affect ourselves and our environment.
Keywords: Dichlorodiphenyltrichloroethanes (DDTs), Environment, Toxicology, Biota,

Management
INTRODUCTION
Dichlorodiphenyltrichloroethanes or DDTs was first synthesized by a German

graduate student in 1874, who did not realize the importance of his discovery and
discarded it (Richard, 1998). In 1946, a Swiss entomologist, Dr Paul Muller, rediscovered
DDTs while searching for a long-lasting insecticide against the clothes moth (Wandiga,
2001). It is a white waxy solid which has a characteristic of sickly sweet smell. It is almost
insoluble in water and other organic solvents, including natural oils and body lipids
(Buchel, 1983). There are two main pathways of DDTs metabolism exist in mammals,
which are dehydrochlorination to DDE and stepwise conversion to DDA (di (p-
chlorophenyl) acetic acid) via DDD. DDE and DDD, two derivative compounds of DDTs
are also able to accumulate in soils, animals and insects, but to a lesser extent in
vegetables (Di Muccio et al., 2002). In general, DDTs can be divided into three sub-
groups as shown in Table 1.
Table 1: Sub-groups of Dichlorodiphenyltrichloroethanes (DDTs)
Main group Sub group

Dichlorodiphenyl trichloroethane Dichlorodiphenyldichloroethane (DDD)
(DDT) Dichlorodiphenyldichloroethylene (DDE)
Dichlorodiphenyltrichloroethane (DDT)
178
According to Meyers (2000), DDTs seem to be a greater potential hazard to the

environment compared to other persistent pesticides due to its’ greater persistence and
affinity in fatty tissues. The half-life of DDTs depend on the medium and stable for long
periods of time. It has been recorded in soils for instance, half-life residents of DDD and
DDE compounds could live up to ten years, which are also more stable compared to their
original DDT. DDT is also eliminated slowly from the body and expected to stay within
organisms for extended periods of time. The fact is undeniable and may affect the human
population for generations. This effect however, has been ignored since it is cheap to be
produced. This is a major reason why DDT has been used massively by WHO for basis
programmes in controlling malaria and other insect-borne diseases in Africa until today
(Manaca et al., 2011).
DDTs are part of organochlorine pesticides (OCPs). At low concentrations, OCPs

demonstrate relatively low acute toxicity towards humans; however, they may imitate
human hormones like estrogens or possess other properties that may affect long-term
health. In higher concentrations, OCPs cause symptoms and problems such as mood
change, nausea, dizziness, muscle tremors and death (Sormo, 2005). In view of the
negative effects, especially in humans, usage of many OCPs has been banned in most
countries around the world including Malaysia. The international community signed the
Stockholm convention which entered into force on 17th May 2004. Of the 21 Stockholm
Convention POPs listed under Annex A-C, 13 are OCPs such as aldrin, chlordane,
chlordecone, dieldrin, endrin, heptachlor, lindane, mirex, toxaphene and
hexachlorobenzene (Mohammed et al., 2011). Even though the manufacture and use of
most OCPs were banned in many countries, their residues or metabolites are still
detectable in various ecological samples (Wang et al., 2011).
ENVIRONMENTAL FATE OF DICHLORODIPHENYLTRICHLOROETHANES (DDTs)
Once a pesticide is introduced into the environment; whether through an

application, a disposal or a spill, it is determined by many processes. These processes
influence pesticide’s persistence and movements (Merrington et al., 2002). An
understanding of the fate processes can help every pesticide applicator, to ensure that
applications are not only effective, but also environmentally safe (Evangelou, 1998). For
details, fate processes can be divided into three major types which are adsorption,
transfer and degradation.
Pesticides Adsorption
The adsorption process binds pesticides to soil particles, similar to paper clips sticking
to a magnet. Adsorption often takes place because of the attraction between a particular
chemical and soil particles. Positively charged pesticide molecules, for example, are
attracted to and can be bound to negatively charged clay particles (Harrison, 1990). In
Leatherbarrow et al. (2006), soils that are high in organic matter or clay are more
adsorptive, since it has more particle surface area, which pesticides can bind onto.
Moisture also affects adsorption. Wet soils tend to adsorb less pesticide because
pesticide molecules have to compete with the water for the binding process.
Pesticides Transfer
For effective purpose, certain herbicides must shift within the soil to reach the
germinating seeds. Too much movement, however, can push a pesticide away from the
target pest. This can contribute for reduced pest control, contamination of surface water
and groundwater and injury of non-target species including humans (Fishel, 1998). There
are five ways how pesticides can be transferred which are volatilization, run-off, leaching,
absorption and crop removal.
Volatilization
179
It is the change of a solid or liquid into a vapour. Once volatilized, a pesticide can
travel in the air away from the treated surface. Vapour pressures such as high
temperature, low relative humidity and air movement are the essential factors in
determining whether a pesticide will volatilize or not. The higher the vapour
pressure is, the more volatile the pesticide will be (Pestemer and Krasel, 1992).
Run-off
It is the movement of water over a sloping surface. Run-off occurs when water is
applied faster than it can enter the soil. Pesticides can be carried in the water itself
or bound to eroding soil particles. The severity of pesticide run-off depends on the
area slope, erodibility, texture, soil moisture content and amount and timing of
rainfalls and irrigations as explained in Fishel (1998).
Leaching
It is the movement of pesticides through the soil rather than over the surface and
depends on the pesticide and soil properties (texture and organic matter). For
example, a pesticide that grips strongly to soil particles by adsorption is less likely
to leach compared to others (White, 1997). Soil permeability (how readily water
seeps through the soil) is also important. The more permeable a soil, the higher
potential for pesticide leaching will be. Thus, a sandy soil is much more permeable
than clay (Marshall et al., 1999).
Absorption
It is the movement of pesticides into target and non-target organisms, and it is
determined by environmental conditions together with chemical and physical
properties of the pesticide and the soil. Once absorbed by plants, pesticides may
be broken down or they may remain in the plant until tissue decay or harvest
(Harrison, 1990). The same thing can happen to the non-target organisms (animals
and humans), where the pesticides will remain in their bodies once they absorb
them.
Crop Removal
Its removal moves pesticides and their breakdown products from the treatment site.
Most harvested food commodities are subjected to washing, cleaning and other
filtering procedures that remove or degrade much of the remaining pesticide
residues. On the other hand, the crop removal is also applied during simple
operations like tree and shrub pruning and turf grass mowing, where pesticides
can potentially be transferred away from their origin (Fishel, 1998).
Pesticides Degradation
Pesticide degradation or the dissemination of pesticides is usually valuable and believed
to be eco-friendly. Pesticide destroying reactions may modify most pesticide residues in
the environment to non-toxic or harmless compounds. However, degradation is
ineffective when a pesticide is destroyed before the target pest has been controlled,
since availability to control the pest is reduced (Young et al., 1992). The three
approaches are microbial, chemical and photo degradation.
Microbial Degradation
It is the breakdown of pesticides by fungi, bacteria and other microorganisms that
use pesticides as a food source and mostly happens in the soil. Soil circumstances
such as moisture, temperature, pH and amount of organic matter could affect the
degradation rate (Harrad, 1992). The frequency of pesticide application is also a
factor that can influence microbial degradation. Repeated applications can actually
stimulate the buildup of organisms that are effective in degrading the chemical
(Helweg, 1994).
180
Chemical Degradation
It is the breakdown of pesticides by processes that do not engage living organisms.
Temperature, moisture, pH and adsorption other than chemical and physical
properties of the pesticide, determine which chemical reactions take place (Lyman
et al., 1992). One of the most common pesticide degradation reactions is hydrolysis,
a breakdown process when the pesticide reacts with water. When mixed with
alkaline water, many organophosphate insecticides are actually broken down
within a matter of hours (Leatherbarrow et al., 2006).
Photo Degradation
It is the breakdown of pesticides by light, predominantly by sunlight. Photo
degradation can extinguish pesticides on foliage, on the surface of the soil and
even in the air. Factors to be considered for photo degradation are intensity of the
sunlight, properties of the application site, the application method and the
properties of the pesticide, as explained in Harrison (1990).
DICHLORODIPHENYLTRICHLOROETHANES (DDTs) IN AQUATIC BIOTA
Aquatic biota is important in food web of terrestrial organisms, with some aquatic
biota, such as fish, being consumed by people and wildlife (Nowell et al., 1999). Fish
consumption supplies a lot of goodness for human health due to the high content of
polyunsaturated fatty acids of omega-3 family (Gladyshev et al., 2009). It could therefore
be considered as one of the major sources of environmental contaminants on human
being based on the studies by Antonijevic et al. (2011). In addition, even though fish and
derived products consumption comprise only about 10% of the average human diet,
consumption of fish and fish products is the main route of exposure to these toxicants in
humans (Alcock et al., 1998). Consequently, data collected on the presence and
distribution of OCPs in consumable fish are essential for both public health perspective
and ecological standpoint (Erdogrul et al., 2005).
Fish are valuable bioindicators because their detoxification enzymes have lower
activity than in mammals. Therefore they allow a higher toxicant bioaccumulation.
Moreover, fish can permit pollutants through their gills directly from water, as well as
through their food ingestion (Davodi et al., 2011). As highlighted by Pastor et al. (1996),
data on chlorinated compounds in the edible fishes are important from human health
perspective. Fish occupy different habitats in the ecosystem and have dissimilar feeding
behaviours, thus offering patterns in the bioaccumulation of pollutants (Porte and
Albaiges, 1993). Elia et al. (2007) mention that fish are considered as sentinel organisms
in the aquatic ecosystem. This is relevant since they are exposed to different substances
and can bioaccumulate by direct exposure or through food chain.
A study by Mahttiessen et al. (1995) highlights that fish are excellent benchmark
of aquatic pollution due to their high sensitivity to environmental contaminants as well as
their bioaccumulation characteristics. As a result, they have been used widely in
measuring OCPs concentration in water environment. A study by Miranda et al. (2008)
for instance, concludes that DDTs are highly persistent and likely to build up in fat tissues
of animals including fishes. The same finding is shared by Addison (1989), where marine
life that occupies high tropic levels in the marine food webs may accumulate a large body
of OCPs such as DDTs. Thus, all contamination levels for DDTs in Biota for Malaysia
and selected ASEAN countries are presented in Table 2.
Table 2: DDTs in Biota (Malaysia and selected ASEAN Countries)
181
Location Sample DDTs Source
West coast of Fish and Shellfish 0.0004 - 0.0008 mg/kg Jothy et al. (1983)
Peninsular Malaysia
Northern region of Catfish BDL - 5.00 ng/g Sani (2007)

Peninsular Malaysia (Clarias batrachus)
Straits of Malacca Catfish 0.10 - 3.20 ng/g Hossain (2001)

(Arius Sp.)
Straits of Malacca Catfish 0.80 - 1.90 ng/g Muhammad (2006)

(Arius sp.)
Inland and coastal Fish 0.50 - 25.00 ng/g Monirith et al. (1999)
waters of Cambodia
Hanoi, Vietnam Snails 5.62 - 863.95 ng/g Nhan et al. (2001)

(Angulyagra sp.)
Singapore Green Mussel 110.00 ng/g Monirith et al. (2003)

(Perna Viridis)
Indonesia Fish 1,100.00 ng/g Sudaryanto et al. (2007)
The study on OCPs residues in fish and shellfish from the west coast of
Peninsular Malaysia by Jothy et al. (1983) is probably the earliest report on OCPs levels
in biota from Malaysia. OCPs residue levels were determined to be low in all samples
analyzed with levels of DDTs (0.0004 mg/kg - 0.0008 mg/kg). In a study by Sani (2007)
conducted in the Northern region of Peninsular Malaysia, concentrations of DDTs (BDL
- 5.00 ng/g) were detected in catfish (Clarias batrachus). In the Strait of Malacca,
Muhammad (2006) who used catfish (Arius sp.) as the samples, found the existence of
DDTs (0.80 ng/g - 1.90 ng/g). Earlier, Hossain (2001) conducted a study on the levels of
OCPs in catfish (Arius sp.). All samples were collected in offshore Straits of Malacca.
The concentrations of OCPs were 0.10 ng/g - 3.20 ng/g for DDTs. In details, BDL stands
for below detection limit.
In ASEAN countries, Monirith et al. (1999) reported that the concentration of

DDTs is (0.50 ng/g - 25.00 ng/g) in fish samples from inland and coastal waters of
Cambodia. In Hanoi, Vietnam, Nhan et al. (2001) reported high concentration of DDTs
in snail samples. In Singapore, contamination of DDTs (110.00 ng/g) in green mussel
samples was reported by Monirith et al. (2003). Sudaryanto et al. (2007) reported a very
high concentration of DDTs (1,100.00 ng/g) in fish samples from Indonesia. The
contamination of OCPs may be due to feeding pattern and habitat of the fish and other
biota by rapid diffusion throughout the water column of the OCPs inflowing the stations
during rain (Yang et al., 2006). Fish for example, can take up DDTs through the body
surface particularly gills or through diet and metabolized in liver (Guo et al., 2008).
The characteristic of OCPs, that is persistence and bioaccumulate to non-target

organism may probably be the factors of their existence in the fish and biota samples.
Zhou et al. (1999) suggested that OCPs bioaccumulate through the food web of the
aquatic system. High lipid solubility contributes to the persistency of OCPs in catfish.
This is due to the nature of its habitat which is in cloudy water and its diet, consisting of
other fish, worm and insects as explained in Salah et al, (2011) and Casarett and Doull
(2001).
182
CONCLUSION
This paper highlights on the pollution level of DDTs in aquatic biota (fish, oyster
and snail) in Malaysia and other selected ASEAN countries. In addition, the
characteristics, hazardous and environmental fate of DDTs are also explained in this
paper. At the same time, there is a demand to carry out a more comprehensive study on
the concentrations and distributions of OCPs especially in fish as it is Malaysian main
dish. Plus, there is a need to examine the correlation between fish and sediments, as
sediments are important in the food chain for several types of fish, especially the benthic
feeders.
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HOT WHEELS? BIAR KAMI (KANAK-KANAK) CERITAKAN!

Ar-Rayyan Fikri Fadli Fizaria, Irhamna Fikri Fadli Fizarib,
Fadli Fizari Abu Hassan Asaric, Azlina Mat Saadd
a
Darjah 3 Wawasan, Sekolah Tengku Budriah,
02600 Arau, Perlis, Malaysia.
b
Tadika Little Caliphs Arau (Tadika Khalifah Idaman),
02600 Arau, Perlis, Malaysia.
c
Fakulti Pengurusan Perniagaan, Universiti Teknologi MARA, Cawangan Perlis,
Kampus Arau, 02600 Arau, Perlis, Malaysia.
Email: fizari754@yahoo.com
d
Pusat Pengajian Kejuruteraan Alam Sekitar, Universiti Malaysia Perlis,
Kompleks Pengajian Jejawi 3, 02600 Arau, Perlis, Malaysia.
Email: linasaad139@yahoo.com
ABSTRAK
Hot Wheels menyambut ulang tahun yang ke-50 pada tahun ini. Di bawah jenama Mattel, Hot
Wheels dikenali sebagai permainan dan koleksi di seluruh dunia, termasuk di kalangan kanak-
kanak. Justeru, kertaskerja ini menerangkan tentang keupayaan Hot Wheels dalam melatih ciri-
ciri pengurusan di kalangan kanak-kanak. Terutamanya dari segi pengurusan pembelian dan
penyimpanan inventori. Selain itu, ciri-ciri dan jenis-jenis Hot Wheels dikongsikan bagi
memberikan idea lebih jelas tentang jenama ini. Ianya juga bagi menerangkan mengapa dan
bagaimana ianya mampu menarik minat kanak-kanak seluruh dunia.
Katakunci: Hot Wheels, Pengurusan, Permainan, Koleksi, Kanak-Kanak
PENGENALAN
Hot Wheels menyambut ulang tahun yang ke-50 pada tahun ini. Model pertama
iaitu Custom Camaro dikeluarkan pada tahun 1968. Diikuti dengan 15 buah model, juga
pada tahun yang sama (Hotwheels.mattel.com, 2018). Di bawah jenama Mattel, ianya
dibahagikan kepada empat kumpulan iaitu kereta, trek, aksesori dan advanced play.
Bagaimanapun, kereta lebih menarik minat kanak-kanak terhadap jenama ini, kerana
harganya yang murah dan mudah didapati di mana-mana berbanding tiga lagi jenis yang
disebutkan tadi. Untuk itu, kertas kerja ini akan membincangkan tentang kereta Hot
Wheels dari perspektif kanak-kanak. Selain dijadikan sebagai bahan permainan dan
koleksi mereka, ia juga mampu membentuk minat kanak-kanak terhadap pengurusan,
termasuk pengurusan pembelian dan penyimpanan inventori.
MENGENALI HOT WHEELS
Dalam mengenali Hot Wheels yang ingin dibeli, kad yang disertakan bersama
model kereta boleh memberikan maklumat (Negley, 2012). Bagi tahun 2018, nama bagi
model kereta diletakkan di bahagian bawah. Nama siri, logo siri dan nombor model di
sebelah kanan. Di bahagian belakang kad pula, tertera tahun dibuat dan dari kotak
keluaran yang mana. Jika model kereta diinspirasikan dari kereta sebenar, tanda niaga
(trademark) turut dipamerkan. Dikongsikan Rajah 1 bagi menerangkan lebih lanjut
tentang maklumat ini.
Nama model kereta asas yang dikongsikan adalah ’14 Corvette Stingray dari
animasi Barbie. Ianya dari siri Hot Wheels Screen Time dengan logo clapper board yang
sering digunakan dalam pembikinan filem. Dalam siri tersebut, ada 10 jenis model dan
model ini adalah yang ketujuh. Model-model yang lain seperti Aston Martin 1963 DB5
dari filem James Bond dan Ice Charger dari filem Fast and Furious. Model kereta ini (’14
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Corvette Stingray) dikeluarkan di Malaysia pada tahun 2017, bagi pasaran 2018,
berdasarkan maklumat di belakang kad. Tanda niaga yang dipamerkan adalah General
Motor, memandangkan kereta sebenar bagi model ini dikeluarkan oleh syarikat tersebut.
Model ini adalah dari kotak L. Bagi tahun 2018, Mattel mengeluarkan kotak bermula dari
A-H, J-N dan P-Q. Setiap kotak mempunyai model berbeza dengan variasi yang berbeza
seperti warna dan spesifikasi.
Rajah 1: Kad Hot Wheels (Depan dan Belakang)
JENIS-JENIS HOT WHEELS
Hot Wheels dibahagikan kepada dua kumpulan besar iaitu kereta asas (basic)
dan kereta bukan-asas (non-basic). Kereta asas ini mudah didapati dan dapat dibeli
pada harga standard RM8.40. Seterusnya ianya dibahagikan pula kepada dua jenis iaitu
fantasi dan sebenar. Kereta fantasi adalah kereta yang direka secara imaginasi dalam
pelbagai bentuk. Ada dalam bentuk haiwan, perkakas elektrik dan struktur bangunan
seperti ditunjukkan di Rajah 2. Kadangkala dikenali sebagai ‘kereta dinosaur’ di kalangan
pengumpul-pengumpul di Malaysia. Kereta sebenar pula diinspirasikan dari model-
model kereta seperti Mercedes, Toyota dan Ford (Rajah 3). Dalam masa yang sama,
terdapat pelbagai siri untuk kereta-kereta asas ini. Di antaranya Muscle Mania, HW
Flames, Speed Graphics dan Dino Riders. Terdapat hampir 70 siri berbeza kesemuanya
seperti yang dipamerkan dalam laman web Play.hotwheels.com (2018).
Rajah 2: Kereta Fantasi Rajah 3: Kereta Realiti
Bagi kereta bukan asas pula, ianya lebih kepada keluaran yang bertema dengan
kad yang dan pembungkusan yang lebih menarik. Sebagai contoh, Replica
Entertainment Series. Siri ini berdasarkan kepada filem dan siri televisyen kegemaran
sepanjang masa. Untuk tahun 2018, sebanyak 4 sub-siri dengan 15 model kereta
kesemuanya telah dikeluarkan. Di antaranya adalah Time Machine Mr. Fusion
berdasarkan trilogi filem Back to The Future lakonan Michael J. Fox (Rajah 4). Bagi
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menghormati peminat-peminat kereta sebenar, Car Culture Series dikeluarkan.

Kesemuanya diinspirasikan dari kereta-kereta sebenar berdasarkan tema-tema yang
ditetapkan secara tahunan. Sebagai contoh, Japan Historics adalah di antara tema bagi
2016 yang melibatkan jenama Mazda, Toyota dan Nissan. Bagi 2018 pula, Euro Speed
adalah sebahagian tema dan melibatkan jenama seperti Alfa Romeo, BMW, Mercedes,
Porsche dan Audi (Rajah 5). Kesemua maklumat ini dibekalkan oleh laman web
Hotwheels.wikia.com (2018). Ianya seumpama wikipedia kepada semua pengumpul dan
peniaga Hot Wheels. Kedua-dua jenis ini dijual sekitar RM19.90 sehingga RM23.90.
Rajah 4: Time Machine Mr. Fusion (Replica Entertainment Series)
Rajah 5: Euro Speed (Car Culture Series)

MEMBELI HOT WHEELS
Proses mencari Hot Wheels yang diminati dikenali sebagai hunting. Di Malaysia,
Hot Wheels boleh didapati melalui dua cara. Iaitu secara langsung (Hotwheels-
mania.blogspot, 2017) dan secara atas talian. Pembelian langsung meliputi pasaraya
besar dan bukan pasaraya besar (pasaraya, kedai serbaneka, kedai buku), mahupun
dari reseller di ekspo dan tapak jualan kecil. Ianya turut boleh dibeli dari portal-portal
perniagaan secara atas talian.
Pasaraya Besar
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Pasaraya besar yang terlibat adalah Tesco, Giant, Aeon Big dan Mydin. Premis
perniagaan ini menjadi pilihan kerana menawarkan Hot Wheels pada harga yang murah
pada kekerapan tinggi. Jika harga biasa sebuah Hot Wheels basic adalah pada RM8.40,
di sini ianya boleh dibeli dengan harga serendah RM5 seunit pada waktu promosi (Rajah
6). Selain itu, Hot Wheels yang dijual, dilonggokkan dalam jumlah yang banyak dan ini
memudahkan pemilihan oleh para pembeli, terutamanya kanak-kanak. Bagaimanapun,
kebarangkalian untuk mendapatkan kereta yang diminati adalah rendah, kerana
harganya yang murah, menjadikannya rebutan ramai.
Rajah 6: Promosi Hot Wheels di Tesco

Sumber: Facebook Tesco Malaysia
Bukan Pasaraya Besar
Parkson, Pacific dan Aeon merupakan contoh bagi pasaraya. Kedai serbaneka
seperti 7-Eleven, KK Mart dan Speed Mart. Popular, SMO Bookstores, Gallery
Bookstores dan MNY Mega Trading pula merupakan rangkaian kedai buku yang turut
sama menjual Hot Wheels. Apa yang membezakan kesemua ini dari pasaraya besar
ialah, Hot Wheels selalunya dijual pada harga tanpa promosi dengan kuantiti yang
sedikit. Ada juga yang menawarkan model-model kereta ini secara atas talian secara
serentak seperti SMO Bookstores (Rajah 7).
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Rajah 7: Promosi Hot Wheels di SMO Bookstores

Sumber: Laman Web SMO Bookstores Online
Portal Perniagaan Atas Talian
Di Malaysia, Lazada, Shopee, Mudah dan 11th Street adalah di antara portal-
portal perniagaan atas talian yang menjual Hot Wheels (Rajah 8). Kelebihan dalam
menggunakan portal-portal ini, ianya bersifat 24/7 dan menjimatkan masa dan tenaga.
Pengguna juga berpeluang mendapatkan model-model yang tidak berada di pasaran
tempatan, jika membeli dari portal luar negara seperti Amazon dan eBay. Dari perspektif
berbeza, caj penghantaran dan risiko kerosakan adalah perkara yang perlu diambilkira,
sekiranya membeli atas talian ini.
Rajah 8: Jualan Hot Wheels di Lazada

Sumber: Laman Web Lazada Malaysia
Reseller
Sebahagian mereka adalah pengumpul Hot Wheels dan ada yang menjual
semata-mata. Mereka boleh ditemui di tempat jualan rasmi seperti pasar malam, pekan
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hari dan ekspo jualan. Ada juga yang membuka meja jualan di tempat tumpuan ramai
seperti di hadapan bank, tempat riadah dan tempat makan. Selain itu, pertemuan
sesama mereka juga diselitkan dengan aktiviti jualan (Rajah 9). Reseller juga
menggunakan media sosial seperti Facebook dan Instagram persendirian mahu pun
kumpulan dalam melariskan hasil jualan. Harga jualan adalah lebih tinggi berbanding
pasaran kerana kebanyakan mereka mendapat stok dari sumber primer yang sama.
Rajah 9: Sesi Pertemuan Para Pengumpul Hot Wheels Puchong

(dikongsikan oleh FB Puchong Hot Wheels Gathering)
Sumber: Facebook Malaysian Hot Wheels Collectors (MHWC)
PENGURUSAN INVENTORI HOT WHEELS
Hot Wheels boleh diuruskan secara sistematik dengan dua cara; manual dan
digital. Dalam kuantiti yang kecil dan bentuk yang berbeza, Hot Wheels boleh diuruskan
secara ingatan (manual). Otak kanak-kanak berupaya untuk mengingati lebih banyak
berbanding dewasa. Berdasarkan kajian Ohio State University (2004), kanak-kanak
semuda lima tahun mempunyai ketepatan ingatan sehingga 31% berbanding dewasa
dengan hanya sebanyak 7%. Ditambah lagi dengan perkara yang diminati seperti
permainan, memungkinkan memori bertahan lebih lama dan memori mampu bertambah
seiring masa. Kadar imaginasi kanak-kanak yang tinggi pula (Muftau, 2014),
membuatkan mereka lebih meminati kereta Hot Wheels yang bersifat fantasi berbanding
realiti. Ini kerana mereka mampu menggabungkan satu model dengan satu model yang
lain sehingga mewujudkan satu cerita baru dan boleh berbeza bagi setiap masa. Proses
penceritaan ini menambahkan lagi ingatan kanak-kanak terhadap koleksi Hot Wheels
mereka.
Dalam menguruskan kereta yang bersifat realiti, bantuan sosial media (digital)
diperlukan. Facebook adalah di antara platform terbaik kerana menggabungkan memori
grafik, audio visual dan tulisan secara sekaligus (Rajah 10). Ditambah pula jika
pengumpulan dibuat bagi mencukupkan setiap siri yang diminati. Ada kalanya pula,
model kereta yang sama tetapi dicat dengan warna yang berbeza sebagai sejenis variasi.
Ini mampu menghasilkan kuantiti yang ratusan jumlahnya. Pengurusan inventori
dimudahkan dengan meletakkan siri berbeza dalam posting yang berbeza. Posting ini
seterusnya dikemaskini apabila berlakunya sebarang transaksi jual beli. Bagi menarik
minat kanak-kanak, posting diselang-selikan dengan video berkaitan produk dan kartun
Hot Wheels. Dalam masa yang sama, koleksi di Facebook ini boleh dikongsikan dengan
rakan-rakan internet yang lain. Selain jaringan persahabatan, Facebook dapat
digunakan untuk bertukar-tukar pendapat dan sebagai medium jual beli atas talian.
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Rajah 10: Pengurusan Inventori Hot Wheels Menggunakan Facebook

Sumber: Facebook Ar-Rayyan Fikri
KESIMPULAN
Di bawah jenama Mattel, Hot Wheels dikenali sebagai permainan dan koleksi di
seluruh dunia, termasuk di kalangan kanak-kanak. Biar pun dunia dilanda fenomena
permainan atas talian dan digital seperti Mobile Legend dan Candy Crush, Hot Wheels
tetap mempunyai peminatnya yang tersendiri untuk selama lima dekad ini. Kertas kerja
ini menerangkan tentang keupayaan Hot Wheels dalam melatih ciri-ciri pengurusan di
kalangan anak-anak kita. Terutamanya dari segi pengurusan pembelian dan
penyimpanan inventori. Dalam masa yang sama, ciri-ciri dan jenis-jenis Hot Wheels
dikongsikan bagi memberikan idea lebih jelas. Ianya juga bagi menerangkan mengapa
dan bagaimana ianya mampu menarik minat kanak-kanak.
RUJUKAN
Facebook, Ar-Rayyan Fikri (2018). Screen time. Diambil dari

https://www.facebook.com/photo.php?fbid=
146884806211136&set=a.103949213838029&type=3&theater
Facebook, Malaysian Hot Wheels Collectors (MHWC) (2018). Sesi Pertemuan Para Pengumpul
Hot Wheels Puchong (dikongsikan oleh FB Puchong Hot Wheels Gathering). Diambil dari
https://www.facebook.com/puchonghotwheels/photos/pcb.276200129642324/27619975
6309028/?type=3&theater&ifg=1
Facebook, Tesco Malaysia (2018). Kereta mainan Hot Wheels essentials. Diambil dari
https://www.facebook.com/TescoMY/photos/a.193199840717931/1814447391926493/?
type=3
Hotwheels-mania.blogspot (2017). Part 1: Hot Wheels hunting tips. Diambil dari http://hotwheels-
mania.blogspot.com/2017/03/tips-hunting-hot-wheels.html
Hotwheels.mattel.com (2018). The history of Hot Wheels. Diambil dari

https://hotwheels.mattel.com/ explore/HW_50th/en/history
Hotwheels.wikia.com (2018). Car culture. Diambil dari http://hotwheels.wikia.com/wiki/Special:

Search?query=car+culture+series
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Hotwheels.wikia.com (2018). Hot Wheels entertainment. Diambil dari http://hotwheels.wikia.com/

wiki/Hot_Wheels_Entertainment
Lazada (2018). Action figures & collectibles - collectibles Hot Wheels. Diambil dari
https://www.lazada.com.my/shop-collectibles-2/hot-
wheels/?spm=a2o4k.searchlistbrand.card.5.
390345eepbMplt&item_id=193579345&from=onesearch_brand_3315
Muftau, A. M. (2014). Do kids learn faster than adults? Diambil dari

https://edlab.tc.columbia.edu/blog/ 10822-Do-Kids-Learn-Faster-than-Adults
Negley, S. (2012). Hot Wheels: The ultimate handbook. New York: Scholastic.
Ohio State University (2004). Children can have a better memory than adults (at least sometimes).
ScienceDaily. Diambil dari www.sciencedaily.com/releases/2004/07/040722085301.htm
Play.hotwheels.com (2018). Collections. Diambil dari https://play.hotwheels.com/en-

us/collection/
SMO, Bookstores Online (2018). 50th anniversary collection: Red line & button set. Diambil dari
https://www.smobookstores.com/products/HOTWHEELS-2018-50TH-ANNIVERSARY-
REDLINE---BUTTON-SET/1529
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The relationship of extrinsic factors towards social loafing.

Norhayati Md Isaa ,Farhana Hanim binti Mohsinb, Noorfaiz binti Purhanudinc ,
Norhusnaida Binti Che Hussaind
norhayatim@utar.edu.my, farhanam@utar.edu.my ,noorfaiz@utar.edu.my,

norhusch@utar.edu.my
Universiti Tunku Abdul Rahman, Kampar, Malaysia
Abstract
Social loafing has become a significant issue in higher education institutions. It is symbolized to
attitudes and behavior concern such as free rider effects, less involvement and contribution in
accomplishment of the project task. The ability to work in team actively would be prerequisite
competence when the students join employment. This study aims to determine the relationship
between extrinsic factor and social loafing among undergraduate students in private higher
education institutions in Malaysia. 400 set of questionnaire were distributed and the results were
analyzing using SAS Software by utilizing the Pearson correlation and multiple linear regression
analysis. The study reveals that extrinsic factors have a significant relationship with social loafing.
Keywords: Social loafing, private higher institutions, extrinsic factors and teamwork.
INTRODUCTION
Education institutions have widely included team based projects among students in their
curricula. It is noted that group based works are able to bring about accomplishment
greater than what the individual student can achieve alone. Under certain circumstances,
however, research has found that the group based projects may promote free riding
effect or exertion of less effort among students - called social loafing. Social loafing refers
to the reduction in motivation and effort when individuals work collectively compared with
when they work individually (Karau & Williams, 1993). Labeling this as negative behavior
(Akgunduz & Eryilmaz, 2018; Luo, Qu, & Marnburg, 2013), it is particularly important for
the education institution to identify the circumstances that causing such behavior to occur
as its impact can be a downward spiral to the students’ performance. This is crucial as
the experts predicted, by 2025, the ability to work in teams will be among the highest
four priorities for employers when selecting graduates for employment (Deleau, 2017).
Until recently, students have continuously complaint the problem of social loafing among
the members while doing the work in team (Aggarwal & O'Brien, 2008; Dommeyer, 2012).
It is reasonable to assume that education institutions are still challenged with this issue
and that current instructional strategies to prevent this problem need to be further
equipped and most importantly, the antecedents should be further examined.
Previous research on social loafing has attributed a large number for variables that may
influence social loafing (Akgunduz & Eryilmaz, 2018; Klehe & Anderson, 2007; Liden,
Wayne, Jaworski, & Bennett, 2004; Ülke, 2006). While there may be a lot of possible
root of causes to this issue, this study placed the interest to investigate the extrinsic
factors that leading to social loafing. The focus is given following George (1992) study
that extrinsic factors were found to be predictors of social loafing; regardless on intrinsic
factors; suggesting that there is much to be learned in regards to extrinsic factors.
Plausible extrinsic factors that may lead to social loafing include task visibility (Black,
2002; Zhu, 2013), group size (P. C. Price, Smith, & Lench, 2006; Stewart, 2006), task
cohesion (Hoigaard, Tofteland, & Ommundsen, 2006; MacCoun, Kier, & Belkin, 2006)
195
and justice (Colquitt, 2001; George, 1992; Nadiri & Tanova, 2010; Simons & Roberson,
2003). The following chapter will discuss on literature review and hypothesis
development on such variables.
LITERATURE REVIEW
Social loafing
“Group members who shirk their obligations in the hopes of benefiting from the work of
others are often referred to as social loafers or free riders” (Dommeyer, 2007, p. 175). In
this study, social loafing can be view as a behavior where individual working in a group,
fail to share his/her effort to group members. Williams and Karau (1991) lists three
reasons why students complaint about social loafing. These are: (i) group members who
did not show up during group meeting, (ii) who had poor behaviour, (iii) did not do their
fair share of work. Social loafing seems to be one of the main challenges for group
projects. Only one social loafer in a group will affect the entire group. Most of the time,
social loafer put less effort in group project but reap the benefit of other members’ effort
because of a common grade for the entire group(Beatty, Haas, & Sciglimpaglia, 1996).
Social loafing has been debated in various scholars (Backes-Gellner, Werner, & Mohnen,
2015; Deleau, 2017) and even within the academic circle (Abernethy & Lett III, 2005;
Aggarwal & O'Brien, 2008). Researchers believe it bring numerous impact, especially for
the group members, moral obligation and education system. Most studies in the field of
social loafing have only focused on theoretical grounds of the phenomenon; however the
recent research is conducted to examine the phenomenon among student teams (Lam,
2015; P. C. Price et al., 2006). In this comprehensive study of social loafing,(Wolfe &
Powell, 2014), concludes that student teams are different from work teams; commonly
student teams are developed for specific purpose only and have very little supervision
from lecturer or tutor, compared with work teams. Furthermore, student teams do not
have history to rely on regarding on previous achievement. The research about social
loafing has been conducted in the education industry in other country university such as
Midwest and China (Aggarwal & O'Brien, 2008; Ying, Li, Jiang, Peng, & Lin, 2014),
however, what is not yet known is to what degree there exists among students in
Malaysia.
Task visibility and social loafing
Task visibility defined as the effort of individual being monitored by supervisor (Kidwell
Jr & Bennett, 1993); supervisor aware of the effort of individual on a task (Jones, 1984).
The role of task visibility has been studied extensively (Liden et al., 2004; Nilsen, Haugen,
Reinboth, Peters, & Hoigaard, 2014). Task visibility has been an important concept in
the study of social loafing. Black (2002) claims that supervisor play an important role to
monitor performance of members by assigned work with clearly defines the role of each
of the members. It will ensure the performance of members maintain at an excellence
level. Members/individual will perform well if they are monitored by supervisor and less
interdependence with team members when they perceive high task visibility. This view
is supported by (Davies, 2009) who writes that members are motivated to take a part
with the presence of supervisor’s attention, therefore it can be minimize the problem of
members reluctant to participate actively to the group project. In the same vein, (Black,
2002; Zhu, 2013) view that when there is less task visibility, only a few members will
involve or participate, because others are likely to exert less effort to complete the task.
There is growing body of literature that recognizes the importance of the relationship
between task visibility and social loafing. Members will increase the contribution to
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complete the task when the task is frequently observed, as it is easy to monitor individual
contribution (Pabico, Hermocilla, Galang, & De Sagun, 2015). Supervisor has been
identified as a major contributing factor to the decline of social loafing. The presence of
supervisor will encourage individuals’ contribution in doing a task. Individuals believe the
supervisor is monitoring the level of contribution among each of them. Low task visibility
is occurred when they believe their contribution to the task cannot be seen clearly by
supervisor. In addition, they put less effort but still receive the same benefits, as there is
no supervisor to observe them. Normally, social loafers may think their effort is not
important to the group success (Piezon & Ferree, 2007, 2008). Hence, they may
minimize their effort by reducing group productivity when they perceive task visibility is
low. Thus, social loafing is estimated to be abolished if the task visibility is high.
H1: There is significant relationship between task visibility and social loafing.
Distributive justice and social loafing
In recent years, there has been an increasing interest in the relationship between
organizational justice and social loafing (Harkins & Szymanski, 1988; Luo et al., 2013;
Murphy, Wayne, Liden, & Erdogan, 2003). Etemadi, Darab, Khorasani, Moradi, and
Vazirinasab (2015), have classified organizational justice intro three dimensions;
distributive, procedural and interactional justice Distributive justice (the perception of
individuals toward the fairness of an outcome). Procedural justice (the individuals’
perception toward the fairness of organizational procedures applied in decision-making).
Interactional justice (the perception of individuals whether they are being served with
honesty and dignity (Murphy et al., 2003). In this study, researcher only focusing on
distributive justice rather than others. It has been established that distributive justice is
the fair reward to the receiver (Williamson & Fadil, 2009): either in term of the economic
(the rewards that linked to enhanced financial aspects) and non-economic rewards (the
rewards that related to improved working environment and benefits). Pabico et al. (2015)
studied the effects of distributive justice on their effort to the team project; individual with
high contribution should receive more reward and distributed accordingly.
Distributive justice known as the fair of distributive rewards (Niehoff & Moorman, 1993);
the distributive justice is the fairness of a decision to the people in all situations
(Cropanzano & Greenberg, 1997); consistency between the outcomes and allocation
norms (Lord & Brown, 2004). Distributive justice is emphasize on individual’s belief
whether they perceive the fair treatment from an organization. Social loafing happened
when individuals are not perceived reward accordingly; not consistent between rewards
and effort (Alam, Ali, Ali, & Zaman, 2014). Similarly, K. H. Price, Harrison, and Gavin
(2006) claims social loafing is individuals’ action and behavior as respond when they
encountered unfairness in group work. Likewise, Maiese (2003) hold the view that
individual concerned about “fair share” and their contributions are recognized fairly in the
team project. Piezon and Donaldson (2005) draws our attention to recognized individual
contribution and these efforts are evaluated, thus social loafing is estimated to be
eliminated effectively. Employees perceived unfair treatment when team members
unable to identify their efforts and contribution; they tend to demonstrated negative
behavior such as social loafing. Employees improve the quality or quantity of work when
they are overpaid, while those underpaid will decrease they quality of work (Kaya &
Seçim, 2015). Therefore, social loafing is increased when individual perceived unfair
treatment among team members and no punishment for those individual who put less
effort in the team.
H2 :There is a significant relationship between distributive justice and social loafing.
Group size and social loafing
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Group size has a serious impact on the effort people put out in a group. However, there
is an argument on how large these teams should be. Literature has categorized small
team comprises three to five members and large team contains eight to 12 members
(Hare, 2003); the small teams as less than 12 and large teams as greater than 12
(Ogungbamila, Ogungbamila, & Agboola Adetula, 2010). Whereby, Yang, Huang, and
Wu (2011) has considered small team comprised of less than 16 members, medium
team ranged between 16 to 45 and large of more than 45 members. In recent study, Cha,
Kim, Lee, and Bachrach (2015) identify small teams as less than 20 members and large
teams as greater than 20 members. Therefore, the research studies have suggested that
there is no optimal size of teams (Hoegl, 2005) and determining the size of the team is
dependent on the size of the task.
As the number of individuals in a group increases, the risk of social loafing to be occurred
will increases as well (Aggarwal & O'Brien, 2008; Rich Jr, Owens, Johnson, Mines, &
Capote, 2014). Their finding conclude that the larger the group, the less individual effort
people will extend. Yet, in small groups, people are more likely to feel that their efforts
are more important and will therefore, contribute more. In the same trend, (Lam, 2015)
observe that it is difficult to assess the contribution of each members as the group size
increase. This lead to the phenomena of social loafing where some of the members will
try to hide their responsibility toward the task. Further, rising in group size will upturn the
tendency for members to get involve in social loafing (Walter & Zimmermann, 2016).
Conversely, (Kugler, Rapoport, & Pazy, 2010) figure out that in large teams, the element
of free riding decreases and contribution of members for team effort strengthens instead
of difficulties for collaboration. Furthermore, members of large teams put more effort as
compared to small teams in the conditions of competition. In the same trend, Mao, Mason,
Suri, and Watts (2016) declares that during complex tasks, large teams are more
collaborative than small teams and this collaboration take over the phenomena of less
effort or social loafing. Similarly, Nunamaker Jr, Reinig, and Briggs (2009) propose that
social loafing can be minimized by limiting the group size, which makes it harder for
social loafers to hide behind other group members. This is due to the easiness to monitor
individual input in smaller groups as opposed to large groups. Thus, in the end large
teams outperform (Mao et al., 2016).
On another note, analysis portrayed a different output between team size and team effort.
Demonstrated by (Backes-Gellner et al., 2015) which found that effort has inverted U-
shaped pattern with increase in team size. The study explains that peer pressure
encounters free riding phenomena in teams and increases the team effort. This happen
when the peer pressure cultivates in case of strong social ties among members.
Consequently, team size can be enlarged if there are strong social ties among team
members. In a nutshell, group size seems to have influence towards social loafing since
it is vital in shaping the behavioral and performance outcomes of teams (Hare, 2003).
However, have to keep in mind that the function of large teams are dissimilar to small
team in different task (Hoegl, 2005).
H3 :There is a significant relationship between group size and social loafing.
Task cohesion and social loafing
In view of Hoigaard et al. (2006), individual team members who values high cohesion
would like to perform high collective than individual. In contrast, individual team members
with low cohesion will be less motivate and perform worse manifestation in the group
and expect others to provide their quality and skill. Further, task duration is a function of
task cohesion where it only works for the first ten minutes in order to get the best result.
While for the rest duration, the task cohesion will drop. The longer the duration of a task
198
given, the lesser the task cohesion and lead to high social loafing (Høigaard & Ingvaldsen,
2006).
On the other hand, task cohesion is proven to have a negative relation to social loafing.
According to (Simms & Nichols, 2014), if the members are towards the same goal setting,
they are able to reduce social loafing. Besides, when the members in the group know
each other very well, it will lead to high cohesion. As a result, all of the member will
performed equitable and collectively as a team of cohesiveness which later shrink the
social loafing. Accordingly, Torbjørn, Tommy, Michael, Derek, and Rune (2014)
emphasize that if the individual team members in the group highly familiar with each
other, this will lead to greater contribution, effort and motivation that they feel deserve to
commit on the task given. Likewise, individual team members will develop task cohesion
once they feel that the task is interesting, motivating and their effort is unique. As a
consequence, they will work harder to foster the task and attained their group goals,
which then could lessen the occurrences of social loafing (Torbjørn et al., 2014).
The task cohesion requires all of the teammates’ unity to perform a task while social
loafing will endanger the utility of work teams (Lam, 2015). As a conclusion, social loafing
could occur easily when there is no task cohesion and communication between group
members.
H4:There is a significant relationship between task cohesion and social loafing.
Task visibility
Distributive justice
Social loafing
Task cohesion
Group size
Independent variables Dependent variables
Figure 1: Conceptual Framework
Research Procedure
This study was conducted in one private university in Malaysia with approximately 6,249
populations of students. 400 sets of questionnaire were distributed and 375
questionnaires were returned back. Before filling up the questionnaire, the respondents
were instructed and clearly informed that their response would be kept anonymous.
The questionnaire instrument consists of three sections; Section A, B and C. Section A

includes demographic profile of the respondents; Section B consists of variable for task
visibility, task cohesion, group size and distributive justice, while Section C include
questions on respondents’ perceptions on social loafing. The entire instrument questions
were developed and adapted based on previous studies. All of the instrument items use
likert-scale to represent the respondent opinions to the topic.
199
DATA ANALYSIS AND DISCUSSION
The SAS Enterprise Guide for has been used for analyzing data collected. Table 1
depicted the demographic profile of respondents. Meanwhile, the findings of the
significance relationship and each variables strengths were measured using Pearson
correlation analysis in Table 2 and multiple-linear regression analysis in Table 3.
Table 1. Respondents’ profile
Frequenc Percentage (%)

y
Age
Below 20 years old 88 23.47
20-25 years old 283 75.47
26 years and above 4 1.07
Gender
Male 133 35.47
Female 242 64.53
Education
Foundation/certificated/diploma/A- 90 24.00
level
Undergraduate 280 74.67
Postgraduate 5 1.33
Role
Group leader 103 27.47
Team member 272 72.53
Group Size
2-3 members 38 10.13
4-5 members 268 71.47
6-7 members 63 16.80
Others 6 1.60
n = 375
The respondents’ demographic frequency and percentage.
Table 1 reported 375 respondents’ were from different ranges of age, gender, education
level, role in the group project and group size. Table 2 presented the results of the
significance relationship between task visibility (TV), distributive justice (DJ), task
cohesion (TC) and group size (GS) on social loafing (SL).
200
Table 2. Pearson correlation analysis
TV DJ TC GS SL
TV Pearson 1
Correlation
Sig. (2-tailed)
DJ Pearson 0.2874 1
Correlation
< 0.0001
Sig. (2-tailed)
TC Pearson 0.29848 0.24189 1

Correlation
< 0.0001 < 0.0001
Sig. (2-tailed)
GS Pearson 0.33115 0.30424 0.31867 1

Correlation
< 0.0001 < 0.0001 < 0.0001
Sig. (2-tailed)
SL Pearson 0.32910 0.66598 0.30721 0.33302 1

Correlation
< 0.0001 < 0.0001 < 0.0001 < 0.0001
Sig. (2-tailed)
All variables showed a significant positive relationship with p-value<0.0001.
Based on Table 2, it was found that all variables tested displays a significant relationship
with social loafing with p-value <0.0001. Subsequently, the strength of association and
the direction of relationship can be determine from correlation analysis results. All IVs
(task visibility, distributive justice, task cohesion and group size) revealed a positive
relationship on DV (social loafing).
Contrary with Black (2002), Davies (2009) and Zhu (2013), task visibility is reported to
have a positive relationship towards social loafing, suggesting that when the task visibility
is high, the social loafing would increase. It is seen that although the lecturer’s
supervision is important, if the group members believe that their individual contribution
to the group performance cannot be acknowledged clearly, the members would tend to
exert less effort to the group project. Similar to (Bethke, 2003), high degree of supervision
would undermine group members’ capabilities which reflect the members’ inability to
work independently, thus leading to social loafing.
In this study, distributive justice is also seemed to have a positive relation towards social
loafing. Although (Maiese, 2003) highlighted that when individual concerned about
having a fair share for the group project, it is not always the case when the task is
assigned without evaluating the skills and abilities of the group members, hence
members with lesser skills tend to loaf. Further, high task cohesion tends to increase
social loafing. This would happen when the poor performed members rely on other
members who perform well (Williams & Karau, 1991). Finally, large group size would
increase the likelihood of social loafing to be occurred. The finding is similar to others
(Aggarwal & O'Brien, 2008; Rich Jr et al., 2014). This is due to when the group is large,
the members tend to hide their responsibilities from the tasks, thus placed high
interdependency among the group members.
201
Table 3. Multiple-linear Regression Analysis
R2 0.4845
Sig <.0001
F value 86.93
Variables Parameter Standard t Value Pr > |t|

Estimate Error
Intercept 0.41047 0.17843 2.30 0.0220
TV 0.10507 0.04342 2.42 0.0160
DJ 0.60219 0.04158 14.48 <.0001
TC 0.11052 0.04153 2.66 0.0081
GS 0.09526 0.04519 2.11 0.0357
5% level of significance relationship. All variables are significant with DV tested.
R2 are used to explain the power of regression model, the results revealed all four (4)
independent variables can clearly explained 48.45% of the variation of social loafing.
Meanwhile multi-linear regression analysis were performed to test the relationship
between each variables on DV. Table 3 exhibits that the p-value is lower than 0.05. It
revealed that task visibility, distributive justice, task cohesion and group size has a
significant results to explain the social loafing among respondents. Thus, this study
accept all hypothesis listed above.
CONCLUSION
The phenomenon of social loafing becomes too common among students that it might
affect their professionalism when they join the employment. Throughout this study, it is
found that the occurrence of social loafing caused by the four extrinsic factors (task
visibility, distributive justice, task cohesion and group size). It is suggested that future
researchers can extend this study by taking into consideration on how intrinsic factors
behave towards social loafing. With such findings, education institutions could
understand and cater the issues better and improve on existing practices on group based
projects.
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THE IMPACT OF LEADER INTERPERSONAL, NETWORKING

AND SOCIAL ASTUTENESS SKILL ON EMPLOYEES POSITIVE
AFFECT AND INTENT TO DISCRETIONARY EFFORT
Shahibudin Ishak1a, Sa’ari Ahmada, Mohd Rashdan Sallehuddina,

and Dzulhilmi Ahmad Fawzia
a
1
Corresponding Author Email: shahibudin@uum.edu.my
________________________________________________________________
___ Abstract
Leader political skill is regarded as one of the most important traits and characteristics of
leaders that contribute to leadership effectiveness and is needed to be successful in
organizations. Little research considers leader political skill has an impact on their follower
affect and intent to work.The present study investigate the model that leader political skill is
related to follower intent to discretionary effort and positive affect. It is hypothesized that leader
political skill in term of Leader Interpersonal, Networking, and Social astuteness Skill is
associated with follower intent to discretionary effort through positive affect. Structural equation
modeling was used to examine data from 122 UUM business students who has experience as
employees. Result suggests that Leader Interpersonal and Social Astuteness Skill have positive
impact on Positive Affect of employees but not significantly influence their Intent to Discretionary
Effort. However, leader Networking skill has no impact on Positive Affect, but has direct impact
on employees’ Intent to Discretionary Effort. Surprisingly, the findings further indicate that
Positive Affect not mediated employees’ perceptions of their managers’ leader political
attributes and employees use discretionary effort. Therefore, this study should assist leaders to
learn that their political skill is effective to influence follower’s emotion, mood and work effort.
Keywords: Leader political skill, positive affect, intentions to use discretionary effort
206
INTRODUCTION
A lot of research has been carried out in the area of leadership, follower affect
and work outcomes. Political skill is one of the most important competencies leaders
can possess, contributing to effectiveness in organizations. Five major themes were
identified in previous research in political skill (Kimura, 2015). These are: definition and
measurement of political skill; political skill and stress management; political skill and
career success; political skill and individual performance; and political skill and
leadership effectiveness. Although some researchers have paid attention to leader
political skill and influence on employees factors, little is known about how leader
political skill are actually influence employees affect and then impact employees intent
to work in term of to use discretionary effort.
Past research on political skill has concentrated broad issues: antecedent and
outcome. However, the literature is almost silent on the details of how leader political
skill has an impact on employees affect and work intentions. Against this background,
the purpose of this research is to answer the research question: “How can leader
political skill has an impact on employees positive affect and work intent?” In the
present study, it is aimed to investigate the relationship between employees’
perceptions of leader political skills and their positive affect and intent to use
discretionary effort. Based on this general aim, more specifically, this research has four
objectives:
1. Do employees’ perceptions of leader political skills dimensions significantly
impact their positive affect?
2. Do employees’ perceptions of leader political skills dimensions significantly
impact their intent to use discretionary effort?
3. Is there a significant relationship between employee’s positive affect and
intent to use discretionary effort?
4. Do employees’ positive affect mediate the relationship between leader
political skill dimensions and intent to use discretionary effort?
That is, this research attempts to examine the influence of leaders on

employees affect and work intention subscale. The findings of this research are
expected to assist practitioners in practice leader political skill and increasing
practitioners’ awareness of the need for this skill with employees.
The paper has four parts. First, it reviews the extant literature relevant to
political skill, positive affect and intent to discretionary effort. Then the research
methodology is presented and data analysis techniques are discussed. Next, the
findings are discussed and summarized. The paper concludes with a discussion of
theoretical and managerial implications and directions for further research.
207
LITERATURE REVIEW
Leader political skill
Leadership is vital for organizational success. The previous study found that leaders
high in political skill were able to develop high-quality relationships with their followers,
which enabled leader and follower effectiveness (Brouer, Douglas, Treadway, and
Ferris , 2012). Thus, based on political perspectives in organizations, to be effective in
political environments, leader needed to possess political skill (Pfeffer, 1992;
Mintzberg,1983). Leader political skill is defined as the ability of a leader to use the skill
of efficiently understanding and impressing the employees in a work place (Ahearn et
al., 2004) and able to exercise of influence through persuasion, manipulation, and
negotiation Mintzberg (1983)
Previous study indicates that there are four critical dimensions of political skill: social
astuteness, interpersonal influence, networking ability, and apparent sincerity (Ferris,
et. al., 2007). However, leader political skill dimensions that became focus of this study
only include: (1) social astuteness skill- a leader’s ability to astutely observe others to
understand their behaviors and motives; (2) interpersonal influence skill- is a leader’s
ability to influence and engage others using a compelling and charismatic interpersonal
style; (3) networking ability skill- as a leader’s ability to build diverse relationship
networks across and outside of the organization.
Over the years, existing research demonstrates various form of leadership at
individual level relates to outcomes. For example, leader power is connected to
organizational commitment, job satisfaction, empowerment, OCB, intent to remain
within organization, self-confidence, burnout, absenteeism and affect. Furthermore,
leader considerate behaviour was associated with an increase in positive follower
affect (Glasø, Skogstad, Notelaers, and Einarsen, 2017).
It is reported in previous research that political skills are related to personal
characteristics such as self-efficacy (Zellars, Perrewé, Rossi,Tepper, Ferris, 2008),
extraversion (Ferris , Rogers , Blass , Hochwarter, 2009) and job-related results (Ferris,
Treadway, Perrewé, Brouer, Douglas, Lux 2007) such as professional success [Bedi,
Akanksha; Skowronski, Mark, 2014), job satisfaction (Ewen,, Wihler, , Blickle , Oerder ,
Ellen, Douglas, Ferris, 2013), team performance (Ahearn , Ferris , Hochwarter ,
Douglas, Ammeter, 2004), employees’ responses (Treadway, Hochwarter, Ferris, ,
Kacmar, Douglas, Ammeter , Buckley, 2004), efficiency of the leader (Douglas ,
Ammeter, 2004).Based on aforementioned discussion, it is hypothesis:
H1: Employees’ perceptions of leader’s political skills dimensions will be
correlated with their positive affect?
H2: Employees’ perceptions of leader’s political skills dimensions will be
correlated with their intent to use discretionary effort?
Employee Positive Affect
Affect refers to broad range of feeling that people experience in the form of emotions
and moods. Emotions are short lived feeling but moods last longer. Moods activate in
an individual's cognitive background, have no specific target, less intense than
emotions and persist for a longer duration (Fisher, 2000). Emotions are shorter, target-
centered and more intense than moods (Fisher, 2000). The affect term of is defined as
208
a phenomenological situation of feeling, and usually described in terms of

emotions…..” (Thoresen, Kaplan, Barsky, Warren, & De Chermont, 2003, p. 914). The
emotional aspect of the psychological appraisal process involves employees’ affective
reactions to their perception of leaders attributes. Thus, affect is longer lasting positive
or negative emotional experience and is classified as positive affect and negative affect
(Barsade and Gibson, 2007).
Past research, measured mood or feelings using affect standard instruments (e.g., the
Positive and Negative Affect Schedule [PANAS], Watson, Clark & Tellegen, 1988).
Employee affect correlates with job attitudes, such as organizational
commitment, job satisfaction, employee citizenship, intent to turnover, and dimensions
of burnout (e.g., Ng & Sorenson, 2009; Thoresen et al., 2003). A study by Ng &
Sorensen, (2009) found strong evidence that positive affect were related to various
positive employees outcome measures such as job satisfaction, organizational
commitment, and personal accomplishment. Positive affect has been shown to
correspond with higher levels of task performance (Kaplan, Bradley, Luchman, &
Haynes, 2009; Tsai, Chen & Liu, 2007).Applying this logic to the current study, different
forms of leader political attributes may generate employees affect in terms of emotions
and moods. If employees view political attributes as negative, likely be inversely related
to positive affect. This leads to the following hypothesis:
H3: Employee’s positive affect is significant related to intent to use discretionary

effort?
Intent to use discretionary work effort
Work intentions are defined as “a set of goal representations or schema and means
representations or schema, formed as a result of the appraisal process, and which are
focused upon meeting the needs and wants stemming from sense of, or lack of, the
appraiser’s well-being” (Zigarmi & Nimon, 2011, p. 450). In this literature, the
measurement of work intentions includes various work-related intents found in the
organizational literature namely, intent to remain in the organization, intent to endorse
the organization and its leadership, intent to use discretionary effort, intent to perform at
a higher than average level, and intent to be an organizational citizen. However this study
only focuses on employees’ intent to use discretionary effort. The concept of
discretionary effort is defined as behavior that voluntary above and beyond minimally
required or normally expected requirement of the role or job description (Organ, 1997).
While employees in some work environments might be sensitive to the concept of extra-
role behavior or behavior not accounted for in job descriptions, the use of voluntary
discretionary effort tends to correlate with important antecedents such as sales manager
relationships, workload, organizational culture, and customer expectations. There is
some evidence that discretionary effort also correlates with perceived psychological
contract fulfillment, affective commitment to the job and organization (Zeidan, 2006), and
engagement (McPherson, 2007). Followers’ affective experiences are crucial in
understanding subordinate reactions to exposed leadership behaviors (Gooty et al.,
2010; Rajah et al., 2011), The study by Glasø, Skogstad, Notelaers, and Einarsen,
(2017) strongly substantiates that affect acts as a mediator in leader-follower
relationships. It is therefore hypothesized that:
H4: Employees’ positive affect mediate the relationship between leader political
skill dimensions and intent to use discretionary effort.
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Hypothesized Model
Drawing from literature, a theoretical framework has emerged which explains the
relationships between employee’s perceptions of leader political skill dimensions and
their positive affect and the connection between affect and Intent to use discretionary
effort. Additionally, the mediating role of positive affect on the relationship between
leader political skill and Intent to use discretionary effort was explored. Research model
is illustrated in Figure 1.
Figure 1. Research Model: Relationships between leader political skill, follower affect,
and follower outcomes (Intentions to discretionary effort)
Sampling
The population for this study consisted of business students in UUM during 2017/2018
session. The unit of analysis was the undergraduate and graduates students who have
job experiences in diverse organization. The final sample included 122 usable
questionnaires. This figure of 122 respondents is within the normal bounds of 100 to 200
for structural equation modeling (Hair et al., 1995). The resulting sample can be
described as a convenience sample.
210
Data Collection
The initial questionnaire was pre-tested with a convenience sample of 20

undergraduates using the collaborative participant pre-testing method. Data for the main
study was collected over three month period between June to August, 2018 during class.
Measures
Leader political skill. This study used the 12-item Political Skill Inventory (PSI)
developed by Ferris, Treadway, et al. (2005) for measuring leader political skill
dimensions: social astuteness, interpersonal influence, networking ability. Employees
were asked to evaluate the particular skill was typical of their immediate supervisor.
Responses were made on five point Likert scale from 1(Strongly Disagree) to 5
(Strongly Agree)
Positive Affect. This study has choose a commonly used measure of the Positive
Negative Affect Scale, PANAS (Watson et al., 1988), to identify the respondents’
feelings of subjective wellbeing (emotions and moods) when has engagement with their
immediate managers. The scale consists of a shortened form of the PANAS using 10
items anchored on a 5-point scale, with 1(not at all) to 5(extremely). Respondents were
given the opportunity to evaluate how well certain words (e.g., strong, enthusiastic,
interested, excited, proud, upset, hostile, guilty, scared, distressed) described how they
felt about their meetings with their leader.
Intent to use discretionary effort. Intentions to use discretionary effort was measured
by using 5 items anchored on a 5-point scale, with 1(strongly disagree) to 5 (strongly
agree) a shortened form of the Work Intention Inventory (WII) studies, by Zigarmi,
Nimon, Houson, Witt, and Diehl (2012). WII instrument is designed and established
validation evidence to assess different forms of work intentions.
DATA ANALYSIS
PLS-SEM Model Assessment
This study have opted for PLS-SEM for the following reasons: 1) It is suitable for theory
building studies and appropriate for examining complex cause-effect-relationship
models (Henseler, Ringle, & Sinkovics, 2009; It is also a non-parametric approach, and
it poses fewer restrictions especially on data distribution and sample size (Vinzi et al.,
2010). To test the study hypothesis, smartPLS 3 software used (Ringle et al., 2014).
PLS-SEM approach was used to assess the measurement model (also referred to as
the outer model) and structural model (also referred to as the inner model).
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Measurement Model Assessment
In PLS-SEM, assessment of the measurement model (also referred to as the outer

model) includes composite reliability (CR) to evaluate internal consistency, individual
indicator reliability and average variance extracted (AVE) to evaluate convergent
validity (Hair, Hult, Ringle, & Sarstedt, 2013, p.100).
Internal Consistency Reliability
This is a form of reliability that is used to access the consistency of results across items
of the same variables (Hair et al., 2013). It determines whether the items measuring a
variable are similar in their scores (Hair, Tatham, Anderson, & Black, 2006). Internal
consistency reliability is accessed by using CR. Table 1 shows the CR values of all the
latent variables used in this study. These values were found to be between 0.888 and
0.958, thus more than 0.70 (Hair et al., 2006) which establishes internal consistency.
Table 1: CR and AVE values of all the latent variables
Cronbach's rho_A Composite Average

Alpha Reliability Variance
Extracted
(AVE)
Discretionary effort 0.859 0.861 0.899 0.640
Interpersonal skill 0.878 0.888 0.916 0.732
Networking skill 0.831 0.832 0.888 0.665
Positive affect 0.950 0.953 0.958 0.718
Social astuteness skill 0.878 0.884 0.916 0.733
Convergent Validity
This refers to the extent to which a measure correlates positively with alternative
measures of the same variable (Hair et al., 2013, p. 115). AVE was calculated to
access convergent validity. Table 1 shows the AVE values of all the latent variables
used in this study. These values were found to be more than the prescribed value of
0.50 (Hair et al., 2006) and therefore establish convergent validity.
Discriminant Validity
This is the extent to which a variable is truly distinct from other variables, in terms of
how much it correlates with other variables, and how much indicators represent only a
single variable (Hair et al., 2013, p. 115). The criterion and cross-loading scores of
Fornell & Larcker (1981) were used to establish discriminant validity. Table 2
demonstrates that the square root of AVE for all latent variables was higher than the
inter-construct correlations (Fornell & Larcker, 1981) and therefore they confirm
discriminant validity. Further, all indicators’ individual loadings were found to be higher
than their respective cross-loadings (Hair et al., 2013).
212
Table 2: Construct Validity and Discriminant Validity – Fornell and Lacker Criterion
Discretionary Interpersonal Networking Positive Social

effort skill skill affect astuteness
skill
Discretionary effort 0.800
Interpersonal skill 0.544 0.856
Networking skill 0.575 0.687 0.815
Positive affect 0.433 0.540 0.428 0.847
Social astuteness 0.560 0.771 0.663 0.507 0.856
skill
Notes: The off-diagonal values are the correlations between latent variables and the diagonal
are the square root of AVE.
Indicator Reliability
This represents how much of the variation in an item is explained by a variable (Hair et
al., 2013). Indicator reliability was assessed using the outer loadings as shown in Table
3. A higher outer loading on a variable indicates that the associated measure has much
in common, that is measured by the variable (Hair et al., 2013). Hair, Hult, Ringle, &
Sarstedt (2013) suggested that items having a loading >0.70 should be retained, items
having an outer loading value >0.40 should be omitted and that its impact on the AVE
and CR of the variable should be analysed. If the AVE and CR of the variable reach
above the threshold value, then the given item should be omitted; otherwise, it should
be retained. We next provide the assessment of our structural model.
Table 3: Indicator the outer loadings
Discretionar Interpersona Networkin Positiv Social

y effort l skill g skill e affect astutenes
s skill
LIS9 0.429 0.641 0.604 0.368 0.808
LIS10 0.529 0.670 0.596 0.438 0.875
LIS11 0.452 0.650 0.551 0.433 0.888
LIS12 0.499 0.676 0.527 0.485 0.852
LIS1 0.405 0.421 0.786 0.391 0.464
LIS2 0.507 0.532 0.843 0.295 0.522
LIS3 0.448 0.602 0.839 0.383 0.615
LIS4 0.510 0.675 0.791 0.327 0.556
LIS5 0.429 0.794 0.643 0.355 0.582
LIS6 0.445 0.876 0.528 0.433 0.562
LIS7 0.457 0.904 0.582 0.497 0.686
LIS8 0.521 0.845 0.606 0.536 0.776
PANA1 0.397 0.473 0.388 0.876 0.497
PANA10 0.373 0.427 0.315 0.791 0.423
PANA2 0.325 0.404 0.303 0.812 0.421
PANA3 0.367 0.444 0.320 0.875 0.385
PANA4 0.353 0.468 0.330 0.918 0.411
213
PANA5 0.314 0.421 0.359 0.871 0.385

PANA6 0.327 0.433 0.329 0.841 0.383
PANA8 0.362 0.546 0.407 0.861 0.473
PANA9 0.454 0.467 0.469 0.768 0.451
WI1 0.775 0.503 0.369 0.369 0.419
WI2 0.823 0.478 0.490 0.389 0.473
WI3 0.817 0.377 0.451 0.344 0.503
WI4 0.775 0.390 0.458 0.253 0.408
WI5 0.808 0.426 0.526 0.366 0.433
Structural Model Assessment
After establishing the reliability and validity of the latent variables in the measurement
model, we assess the structural model (also referred to as the inner model) to test the
relationship between endogenous and exogenous variables. In PLS-SEM, structural
model assessment includes path coefficients to evaluate the significance and
relevance of structural model relationships, R2 value to evaluate the model’s predictive
accuracy, Q2 to evaluate the model’s predictive relevance and f2 to evaluate the
substantial impact of the exogenous variable on an endogenous variable (Hair et al.,
2013).
Path-Coefficients
The path coefficient for the relationship between leader political skill and other three
constructs are shown in figure 2 and table 4. Nonparametric bootstrapping routine
advocated by Vinzi et al., (2010), has been used on 122 data points and 5000 samples.
“Bootstrapping is a re-sampling approach that draws random samples (with
replacements) from the data and uses these samples to estimate the path model
multiple times under slightly changed data constellations” (Hair et al., 2013, p. 162).
The main purpose of bootstrapping is to calculate the standard error of coefficient
estimates in order to examine the coefficient’s statistical significance (Vinzi et al.,
2010).
214
Figure 2. PLS-SEM output for the direct relationship between political skill,
positive affect and intent to discretionary effort
In the model, only three out of seven direct paths between the constructs were
statistically significant. As shown in Figure 2 and Table 4, perceived leader political skill
dimension of interpersonal skill (β = .344, p < .01) and Social Astuteness Skill (β
= .204, p < .01), has an effect on Positive affect of employees. In addition, there is a
significant effect of leader Networking Skill on employee Discretionary Effort (β = .319,
p < .01) .
Table 4: The path coefficient for the direct relationship
Original Sample Standard T Statistics P

Sample Mean Deviation (|O/STDEV|) Values
(O) (M) (STDEV)
Interpersonal Skill -> Discretionary Effort 0.139 0.141 0.148 0.934 0.351
Interpersonal Skill -> Positive Affect 0.344** 0.331 0.130 2.649 0.008
Networking Skill -> Discretionary Effort 0.319** 0.323 0.110 2.895 0.004
Networking Skill -> Positive Affect 0.056 0.065 0.126 0.446 0.656
Positive Affect -> Discretionary Effort 0.145 0.156 0.105 1.383 0.167
Social Astuteness Skill -> Discretionary Effort 0.242 0.236 0.154 1.574 0.116
Social Astuteness Skill -> Positive Affect 0.204* 0.207 0.122 1.679 0.094
Note: t-values for two tailed tests: *p < 0.1, **p < 0.05, ***p < 0.001
Assessing R2 Values
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R2 (Coefficient of determination) value is used to evaluate the structural model. This

coefficient measures the predictive accuracy of the model and is calculated as the
squared correlation between actual and predictive values of a specified endogenous
construct. The R2 values represent the exogenous variables’ combined effects on the
endogenous latent variables and it also represents the amount of variance in the
endogenous constructs explained by all of the exogenous constructs linked to it (Hair et
al., 2013). In this study, the endogenous variables namely positive affect and intent to
discretionary effort have R2 value 0.313 and 0.409 respectively. This reflects the fact
the structural model developed in this study has predictive relevance. Further the
examination of the endogenous variables’ predictive power has moderate R2 values
(refer table 5).
Table 5: Results of R2 and Q2
R R Square Q2 Values Effect Sizea

Square Adjusted
Discretionary effort 0.409 0.389 0.229 Medium
Positive affect 0.313 0.296 0.198 Medium
Note: Small: 0.0 < Q2; effect size < 0.15; Medium: 0.15 < Q2 effect size < 0.35; Large: Q2 effect size > 0.35
Assessing Q2 Values
Blindfolding was used to cross-validate the model’s predictive relevance for each of the
individual endogenous variables, the Stone-Geisser Q2 value (Geisser, 1974; Stone,
1974). By performing the blindfolding technique (Hair et al., 2013) with an omission
distance of 7 yielded cross-validated redundancy Q2 values of all the endogenous
variables. In this study, SCA has a Q2 value of 0.206; SCI has 0.124 and SCP has
0.458 respectively. This shows medium, small and large effect sizes, respectively.
Because all the Q2 values are >0, it establishes the fact that the PLS structural model
has predictive relevance.
Assessing f2Values
f 2 size effect is the measure to evaluate the change in R2 value when a specified
exogenous variable is omitted from the model. f2 size effect shows the impact of a
specific predictor latent variable on an specific endogenous variable as shown in table
6. In this study ( see Table 6), f2 size effect varies from small to large for all the
exogenous variables in explaining the positive affect and work intent.
216
Table 6: Results of f2
Discretionar Interperson Networkin Positive Social

y effort al skill g skill affect astutenes
s skill
Interpersonal skill 0.004 0.060
Small Small
Networking skill 0.079 0.002
Small Small
Positive affect 0.024
Small
Social astuteness 0.028 0.023
skill Small Small
Note: Small: 0.0 < f2 effect size < 0.15; Medium: 0.15 < f effect size < 0.35; Large: f2 effect size > 0.35
2
Mediation Analysis
This is carried out to examine the casual relationship between an exogenous variable
and an endogenous variable by the inclusion of a third explanatory mediator variable
(Hair et al., 2013). In PLS-SEM, the bootstrapping approach is suitable for mediation
analysis because bootstrapping makes no assumption about the sampling distribution
of the statistics and can be applied to small sample sizes (Hair et al., 2013). To carry
out the mediation analysis in PLS-SEM, the first step is to assess the direct effect (i.e.
p. 13) of the exogenous variable on the endogenous variable, which should be
significant if the mediator is not included. (Zhao, Lynch & Chen, 2010). Hair et al.
(2013, p. 223) suggest of following Preacher and Hayes (2008) method and
bootstrapping the sampling distribution of the indirect effect. This approach suits PLS
well and is suggested instead of using the common Sobel test.
If the direct path is significant, next step is to include the mediator variable in the PLS
path model and assess the significance of the indirect path (i.e. p12 * p23). The
significance of each individual path p12 and p23 is a necessary requirement for this
condition. The indirect path can be assessed after running the bootstrapping procedure
and if the indirect effect is found significant then mediator absorbs some of the direct
path. To assess how much of the direct path is absorbed, variation accounted for (VAF)
is calculated as VAF = (p12 * p23) / (p13 + p12 * p23). Based on the value of VAF,
following conditions of mediation effect is given by Hair et al., (2013, p.224): i) If 0 <
VAF < 0.20, then No Mediation, ii) If 0.20 < VAF < 0.80, then Partial Mediation and iii)
If VAF > 0.80, then Full Mediation.
217
Table 6: Mediation Analysis: Positive Affect as Mediator
Exogenous Endogenous Direct Indirect Total VAF Mediation

Variables Effect Effect Effect Range
Interpersonal skill Positive 0.130 0.050 0.18 - No Mediation
Networking skill affect 0.326** 0.008 0.334 - No Mediation
Social astuteness 0.244 0.030 0.254 - No Mediation
skill
The results showed (Table 6) that when mediator included in test, the total indirect
effect was statistically not significant. This result suggests that employees’ positive
affect do not mediate the relationship between leader political skill and intent to use
discretionary effort, thus hypothesis 4 was not supported.
Studies simultaneously testing employees’ exposure to different dimensions of leader

political skill, their various positive affective reactions, and related intentions work
outcomes are limited. Thus, this study investigated the potential role of a leader political
skill in influencing employees’ positive affect and intent to work behavior in terms of
discretionary effort. To our knowledge, it is the few study that investigates the effect of
leader’s political skill on employee’s positive affect and work intent.
The results of the present study indicate that perceived leader political skill dimension of
leader interpersonal skill has an effect on positive affect of employees. This make a
leader’s ability to influence and engage others would increase positive emotions and
mood of the employees. This study also shows that leader social astuteness would
increase employees’ positive affect. Thus, leader’s ability to wisely observe employees,
to understand their behaviors and motives will increase positive emotions and mood of
employees. Thus this study confirm that leader’s networking skill and leader’s social
astuteness skill are important skill that clearly impact employee affect and emotion. This
is in line with previous studies that leader’s expert power, referent power, and reward
power tended to lead to positive affect of employees (Zigarmi, Roberts, and Randolph,
2015). However, leader networking ability as a leader’s ability to build diverse
relationship networks across and outside of the organization not significantly influence
employee’s affect.In addition, this study revealed that there is a significant effect of leader
networking skill on employee discretionary effort. Thus, the leader’s ability to build
diverse relationship networks across and outside of the organization would have higher
intent to behave that is more than obligation of the role or job description in organization.
This is in line with previous studies that positive affect was directly and significantly
correlated to work intentions, which replicates conclusions drawn from previous work
(Zigarmi, Roberts, and Randolph, 2015; Roberts and Zigarmi, 2014).
Surprisingly, this study indicates that employee’s positive affect does not have a direct
effect on intent to discretionary effort. This shows that employee’s emotion and moods
not influence the discretionary effort of in organization. This finding is opposite to the
218
study by Zigarmi and Roberts (2012), Zigarmi, Roberts and Randolph (2015) and the
study by Roberts and Zigarmi, (2014). In their study, they found that employee’s positive
affect significantly correlated to intention to work dimensions, i.e. intent to discretionary
effort.
This study result suggests that employees’ positive affect mediate the relationship
between leader political skill and intent to use discretionary effort was not supported.
Thus this study not backed the study by Glasø, Skogstad, Notelaers, and Einarsen,
(2017) which strongly substantiates that affect acts as a mediator in leader-follower
relationships.
In summary, this study has shown significant empirical relationships with leader political
skill characteristics, i.e., leader interpersonal skill, leader social astuteness and
employees’ positive affect. In general, leader political skill explained 31% of the variance
in positive affect. This study suggests that that leader political skill play an important role
in affecting employee’s positive affect. The result clearly shows that, leader political skill
additionally contribute to employees’ positive emotions and moods.
Regarding practical implications, leaders should indeed be aware of how their political
leadership skill influences their employees’ emotions and moods, and their intent to use
discretionary effort towards the organization. To obtain knowledge about this issue,
leaders may arrange dialogue meetings with their followers. The topic and results of
the present study suggested that in leadership development programs, leaders may
need to get a better understanding of their leadership political skill, and in their acting to
enhance positive affect of employees.
Some limitations might be related to collecting our data and interpreting the results. A
first limitation might be the omission of important variables in work intentions. For
example, other work intention such intent to stay, intent to behave OCB, could be added
as additional outcomes of positive affect. Furthermore, this study relied on intentions,
which do not directly represent behavior. However, according to the theory of planned
behavior (Ajzen, 1991), work intentions would determine behaviors. Therefore,
assessing intentions can help to provide a first prediction about future behavior. A second
potential limitation is related to the measurement of is this study relied on self-report
measures, which might have inflated correlations between predictor and outcome
variables
219
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Knowledge Management Processes and Innovativeness in Public Higher Education

Institutions: Moderating Effect of Technological Capability
Haim Hilman
hilman@uum.edu.my
Kashif Akram
Kashif.akram@iub.edu.pk
Abstract
In the knowledge-based economy, knowledge has become an element that plays a key
role in organizational innovativeness including public higher education institutions.
Knowledge management is an integral element for public higher education institutions to
acquire, share and create a unique knowledge to enhance its innovativeness with the help
of modern technology. Therefore, this study attempts to empirically examine the
moderating effect of technological capability on the relationship between knowledge
management processes and innovativeness in public higher education intuitions of
Pakistan. Results revealed that knowledge management processes (acquisition, sharing,
creation) have a significant and positive effect on innovativeness. Furthermore,
technological capability significantly and positively moderates the relationship of
knowledge acquisition and creation. Whereas, the technological capability has an
insignificant effect as a moderator on the relationship between knowledge sharing and
innovativeness in public higher education institutions of Pakistan.
Key words: knowledge management processes, innovativeness, technological capability,

public higher education institutions, Pakistan.
1.0 Introduction
Globalization, technological advancements and rapid digitisations have made

innovation indispensable to cope up with the competition, uncertainty and attaining
competitive advantage (Vargas, 2015; Li et al., 2018). It is therefore, crucial for both
business organizations and universities to create such environment where
innovativeness can be nurtured (Shanker, 2017). Developed countries focus on creating
innovative higher education institutions as Ewalt (2016) asserted that according to
Thomson Reuters report entitled “The world’s most innovative universities – 2016” the
222
USA with its 46 universities including Stanford, MIT and Harvard University in the
top slot.
However, largely public universities lacking innovativeness in their operations due to

various reasons such as lack of collaboration, lack top management support and suffice
training of employees that may enhance knowledge and skills to innovate (Lašákováa
et al., 2017). Moreover, most of the research has been done in the context of the private
sector. As Bugge and Bloch (2016, p. 1467) pointed out, “Innovation has traditionally
been studied in the private sector”. Though recent research work has been done
regarding innovativeness in public higher education institutions (Lašákováa et al., 2017;
Osborne, 2013; Osborne and Brown, 2013), however, prior literature presents
inconclusive and inconsistent arguments pertaining innovativeness of organizations
(Chen et al., 2010; Cho and Pucik, 2005). Effective knowledge management tends to
be one of the crucial sources of innovativeness. Knowledge is identified as an integral
strategic asset that provides innovative opportunities and enables organizations to
create and sustain its unique competencies (Chen, 2004; Grant, 1996). Moreover,
previous literature indicates knowledge management processes as the source of
innovativeness (Camelo-Ordaz et al., 2011; Chen et al., 2010; Grant, 1996; Hallin and
Marnburg, 2008; Lopez and Esteves, 2012; Lundvall, 2010; Shujahat et al., 2017;
Veugelers, 1997; Wickramasinghe, 2015; Zheng, 2010; Zhang and Jiang, 2015).
However, application of knowledge management processes in the context of higher
education is elusive (Fullwood et al., 2013; Ramjeawon and Rowley, 2017). In addition,
scant literature unfolds the empirical relationship of knowledge management processes
and innovativeness (Chen et al., 2010), especially in the context of PHEIs.
Furthermore, technologies are perceived as pivotal factors for university

innovativeness (Whitworth, 2012), however, lack of technical and technological
equipment contribute as a barrier of HEIs innovativeness (Lašákováa et al., 2017).
Technological capability strengthens the collaboration among employees to acquire,
share and create new knowledge in the form of distinctive products and services.
Various researchers argue that without technological capability (e.g information
technology), knowledge management processes may not implement effectively and
efficiently (Alavi and Leidner, 2001). Information technology is firmly linked to
knowledge management processes as it underpins the dissemination, sharing, using and
searching for structural knowledge (Ramjeawon and Rowley, 2017) that consequently
enhance innovativeness. Although, a limited notion of knowledge management
223
processes can be found in the context of Pakistan (Shafqat, 2011; Shah and Mahmood,
2013), however, these studies are lacking to determine the relationship of knowledge
management processes, innovativeness and technological capability in the context of
PHEIs of Pakistan. Therefore, this study attempts to examine the moderating effect of
technological capability on the relationship between knowledge management processes
and innovativeness among PHEIs of Pakistan.
2.0 Literature Review
2.1 Knowledge Acquisition and Innovativeness
The term innovativeness or innovation revealed widespread and contrasting meanings in

the literature (e.g. Calantoneetal., 2002). For instance, Calantone et al., (2002, p. 512)
described innovation as “the generation, acceptance, and implementation of new ideas,
processes, products, or services”. According to West (1990), innovation refers to the
deliberate introduction and execution of unique products, procedures, processes and ideas
that are designed to deliver benefits to the various segments of society including
individuals, groups and organizations. Similarly, Akram et al., (2011, p. 123) defined
innovation as “Activities and processes of creation and implementation of new
knowledge to produce distinctive products, services and processes to meet the customers
needs and preferences in different ways as well as to make process, structure and
technology more sophisticated that can bring prosperity among individuals, groups and
into the entire society”.
Innovation in organizations needs multidisciplinary and complex knowledge in the

markets that attributed knowledge-intensive and specialised. Innovation aims to create
“new things” therefore, its outcome is unknown. It is, therefore, important for
organization indulges in innovation to involve in knowledge dissemination and upheaval
the learning-based collaboration to acquire knowledge from each other (Lundvall, 2010).
These collaborations tend to develop social networks that impetus knowledge
management (e.g knowledge acquisition) that is important for innovation (Zheng, 2010).
Therefore, recently, Pouwels and Koster (2017) revealed the positive and significant
association between inter-organizational cooperation and innovation. New knowledge
acquisition (KA) contributes to enhancing organization’s existing knowledge base (Kim
and Lee, 2010; Pacharapha and Ractham, 2012). This enhanced knowledge base plays a
crucial role in innovativeness in the form of producing and offering distinctive products
and services. Despite knowledge acquisition’s important role in innovativeness, prior
224
literature revealed it as a neglected knowledge management process. Thus, current study

hypothesises that
H1: KA has a significant and positive effect on innovativeness
2.2 Knowledge Sharing and Innovativeness
Knowledge sharing (KS) is a social interaction-based learning process that contributes to

enhancing mutual learning within the organization. Wickramasinghe (2015) considered
KS as an integral tool that can bring innovation to the organization. Through KS, the
organization may get multifarious outcomes such as knowledge application, innovation
and competitive advantage (Zhang and Jiang, 2015). Previous literature identified the
important relationship of KS and innovativeness (Hallin and Marnburg, 2008). For
instance, various studies have found the positive association between KS and
innovativeness (Camelo-Ordaz et al., 2011; Chen et al., 2010; Storey and Kelly, 2002;
Wickramasinghe, 2015). For instance, Storey and Kelly (2002) found lack of KS as a
crucial barrier that impedes innovation in the organization. Moreover, Swan et al., (2007)
revealed the positive association between KS and innovations in high tech firms.
Similarly, Hong et al. (2004) found a significant positive relationship between KS and
new product development. Likewise, Wickramasinghe (2015) also found a significant
and positive relationship between KS and innovativeness in software development
organizations. Based on above discussion, a hypothesis may be presented
H2: KS has a significant and positive effect on innovativeness
2.3 Knowledge Creation and Innovativeness
Knowledge creation (KC) is a process that creates new opportunities for organizations to
recombine their existing knowledge stock to create more knowledge (Griese et al., 2012).
Knowledge generation or creation has a strong relationship with organization’s
innovativeness (Jime ńez-Jime ńez and Sanz-Valle, 2011). KC helps employees to
execute unique knowledge to enhance their efficiency and effectiveness by producing
new and unique products and services (Grant, 1996). Similarly, Chen et al., (2010) found
that organizations with KC ability are more inclined towards producing unique products
and processes. Furthermore, Griese et al., (2012) revealed the positive influence of
knowledge generation capability on firm’s innovativeness. Thus, we posit
H3: KC has a significant and positive effect on innovativeness
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2.4 Technological Capability as a Moderator
Technological capability (TC) refers to the ability of an organization to utilise its

technological knowledge in engineering, production an innovation (Molina-Domene and
Pietrobelli, 2012). Technological enables the organization to align with ever-changing
environment by producing unique products, services and processes. Howells (1996)
argued that TC consists of both tangible and intangible assets of the organization.
Tangible assets consist of equipment, machinery, land and product whereas, intangible
assets including patents, licenses, goodwill, reputational and tacit knowledge. Calantone
et al. (2002) argued that organization may enhance their innovativeness through
knowledge by using state of the art technology. Organizations with higher technological
capability strengthen the link between knowledge management processes and association.
For instance, technology helps the organization to identify them and acquire distinctive
knowledge in industry an keep on enhancing their knowledge baes. These knowledge
baes then capitalise within the organization by sharing the acquired knowledge within the
organization to produce new product and services. Once sharing of knowledge one in
organizations and utilise in producing new products and services, it becomes a source of
further new knowledge creation. Therefore, we hypothesise that
H4: TC significantly and positively moderates the relationship between knowledge
acquisition and innovativeness
sharing and innovativeness
creation and innovativeness
3.0 Research Methodology
3.1 Data collection and Sampling
The current research adopts questionnaire approach to collect the relevant data. The
questionnaire comprises of background information of the institution, innovativeness,
knowledge acquisition, sharing, creation and technological capability. The current study
used the list of Public higher education institutions (PHEIs) of Pakistan displayed on the
website of higher education commission of Pakistan (HEC) to draw a sample. Simple
random sampling was employed to draw a sample of 100 PHEIs out of 114. Therefore,
100 questionnaires through self-administered and email were distributed to the Vice
226
Chancellors of PHEIs along with a recommendation letter issued by the Federal Ministry
of Education of Pakistan to increase the response rate. Total 89 questionnaires were
returned with the response rate of 89%. Whereas, 86 questionnaires were completed
appropriately hence, considered for the final analysis.
3.2 Measures
Current study adapts the measurement of innovativeness from the work of Calantone et
al., (2002) that further validated by (Viccente et al., 2015). It measures innovativeness
through 3 items that entail the extent to which PHEIs try new ideas to seek new ways to
make operations more creative (Alpha= 0.81). Knowledge Acquisition scale adapted from
the work of Kianto (2011) consist of 3 items that operationalise knowledge acquisition as
how frequently PHEIs o knowledge-based interactions with the external environment
(Alpha= 0.73). Knowledge sharing scale was adapted from Andreeva and Kianto (2011)
and 6 items scale measures knowledge sharing as the extent to which PHEIs indulge in
internal and external knowledge sharing (Alpha= 0.87). Knowledge creation 4 items scale
indicates the extent to which PHEIs create novel ideas, products, services and methods
that adapted from Andreeva and Kianto (2011). The technological capability was
measured by adopting a construct of Kyläheiko et al., (2011) which is concerning the
overall view on the level of technology-based knowledge and investment in long-term
research quality and innovation activity. A construct adopted for the current study having
three items with the reliability of 0.80. All variables have been measured on a five-point
Likert scale ranging from 1 to 5 as 1 for strongly disagree and 5 denotes strongly agree
4.0 Data Analysis and Findings
To the test the validity, reliability and hypothesis, current research employed partial least
square approach employing PLS-SEM 3.0 (Hair et al., 2016). PLS-SEM provides better
results with even small sample size (Hair et al., 2016; Henseler et al., 2009). Moreover,
PLS-SEM also an appropriate approach to analyse the complex models (Cassel et al.,
1999). The current study examining the moderation effect of TC on several knowledge
management processes that made a model more complex. Thereby, PLS-SEM was an
appropriate approach to employ for the data analysis. This study used the bootstrapping
method to determine the significance levels of path coefficients (Gil-Garcia, 2008).
4.1 Discriminant Validity
227
Discriminant validity ensures the distinctiveness of each variable from the other construct
by empirical standards (Hair et al.,2016). To determine the discriminant validity Fornell-
Larcker criterion approach was employed. Table 4.1 depicts that the square root AVE
values greater than its correlation with the other variables therefore, it ensures the
discriminant validity.
Table 4.1 Discriminant Validity of constructs

Constructs INNOV KA KC KS TC
INNOV 0.834
KA 0.457 0.816
KC 0.629 0.304 0.825
KS 0.694 0.712 0.506 0.840
TC 0.658 0.511 0.400 0.508 0.774
4.2 Convergent Validity

Convergent validity is the extent to which a measure correlates positively with alternative
measures of the same construct (Hair et al., 2016). Table 4.2 shows the factor loading,
CR and AVE. Factor loadings with less than 0.7 were deleted. Remaining factor loadings,
CR and AVE are higher than threshold level 0.7, 0.7 and 0.5 respectively thus determining
the convergent validity as mentioned by Hair et al., (2016).
Table 4.2 Convergent Validity

Factor
Items CR AVE
Loadings
INNOV1 0.733
INNOV2 0.875 0.872 0.696
INNOV3 0.887
KA1 0.860
KA2 0.876 0.856 0.666
KA3 0.702
KC1 0.888
KC4 0.757 0.809 0.681
KS1 0.870
KS2 0.907 0.903 0.705
KS3 0.928
KS4 0.616
TC1 0.859
TC2 0.860 0.813 0.599
TC3 0.566
228
4.3 Coefficient of determination
After determining discriminant and discriminant and convergent validity, the coefficient
of determination was used to ensure the overall model’s predictive power. Table 4.3
reveals the R2 is greater than 0.7 which is close to .75 thus, the model has high predictive
power (Hair et al., 2.16).
4.3 Coefficient of determination

R Square
R Square
Adjusted
INNOV 0.712 0.687
4.4 Hypothesis Testing
Table 4.4 depicts the results of hypothesis testing. H1 shows that KA has a significant
and positive effect on innovativeness (P<0.10) hence, it is supported. Similarly, H2
reveals the significant and positive effect of KS on innovativeness (P<0.001), thus
supported. In addition, H3 also shows the significant and positive effect of KC on
innovativeness, thereby it is supported. All direct hypothesis of the current study (H1, H2,
H3) are supported therefore, accepted. Furthermore, H4 indicates the positive and
significant moderating effect of TC on the relationship between KA and innovativeness
(P< 0.05) thus, supported. The result of H5 shows the insignificant moderating effect of
TC on the relationship between KS and innovativeness (P>0.05), hence not supported.
Whereas, H6 shows significant positive moderating effect of TC on the relation between
KC and innovativeness (P>0.10). The moderating effect of TC on knowledge
management processes reveals mix results where H4 and H6 are supported thus, accepted
whereas, H5 did not support hence, rejected.
Table 4.4 Path coefficients and Hypothesis Testing Results

Standard T P
Paths β Decision
Deviation Statistics Values
KA -> INNOV 0.193*** 0.108 1.781 0.075 Supported
KS -> INNOV 0.414* 0.110 3.768 0.000 Supported
KC -> INNOV 0.366* 0.077 4.763 0.000 Supported
KA*TC ->
0.329** 0.125 2.636 0.008 Supported
INNOV
KS*TC -> Not
0.069 0.080 0.858 0.391
INNOV Supported
229
KC*TC ->
0.248*** 0.150 1.651 0.099 Supported
INNOV
Significant at 0.001*; 0.05**; 0.10***
5.0 Discussion
This study attempts to examine the moderating effect of TC on the relationship between
knowledge management processes (knowledge acquisition, sharing creation) and
innovativeness in PHEIs of Pakistan. The empirical findings reveal mix results pertinent
to the hypothesised relationships. As a hypothesis, the findings are clearly indicating the
full support of knowledge management processes as important antecedents of
innovativeness in PHEIs of Pakistan. All knowledge management processes (acquisition,
sharing, creation) found to have a significant and positive relationship with
innovativeness. Moreover, empirical results also connect and validate the significant
positive effect TC as a moderator on the relationship between knowledge acquisition,
creation and innovativeness in the PHEIs of Pakistan.
Empirical results pertinent to the knowledge management processes such KA, KS and
KC are consistent with the previous studies as Pacharapha and Ractham, (2012) argued
that knowledge acquisition leads to expansion of existing knowledge and skills, that
consequently helps the organization to offer new products and services (Kim and Lee,
2010). Moreover, knowledge acquisition also contributes to enhancing organizations
innovation capability (Lopez and Esteves, 2012). In addition, knowledge sharing is also
deemed to be the important factor that positively affects the innovativeness (Finnegan
and Willcocks, 2006), in terms of new products, services, routines and processes
(Hargadon and Sutton (1997). Similarly, knowledge creation also contributes to boosting
up the knowledge repository of the organizations. Sabherwal and Becerra-Fernandez,
(2003) argued that new knowledge creation may lead to further knowledge generation an
unfold the ways of problem-solving techniques that likely to be the base of unique
products, services and processes. This finding points out that PHEIs of Pakistan should
focus on the factors that can enhance external and internal knowledge acquisition to
enhance innovativeness within the organization. Based on current study’s finding, PHEIs
of Pakistan tend to provide opportunities and platform where employees can share their
230
knowledge an skills to execute that knowledge and skills to elevate innovativeness.

Moreover, PHEIs of Pakistan may develop a separate department of knowledge
management under a specialised person (e.g knowledge management manager) who
formulate and execute policies and strategies regarding knowledge management.
In terms of moderating effect of TC on the relationship between knowledge management

processes, current empirical findings show that when technological capability exits,
relationship between knowledge acquisition, creation and innovativeness is significant.
High TC underpins the knowledge acquisition and creative activities through modern
equipment, software and machines. Especially in the higher education context, TC helps
the organizational employees to acquire new knowledge through online courses, research
classes, workshops and conferences and consequently, this knowledge acquisition help
them to produce research articles, unique and better curriculum and learning techniques.
Contrastingly, current study’s result does not support the moderating effect of TC with
knowledge sharing. and innovativeness. This finding revealed that TC unlike knowledge
acquisition and creation does not underpin the relationship of knowledge sharing and
innovativeness. The possible reason behind this result might be that people consider
knowledge as the valuable and highly personalised asset that differentiate them from
others, therefore, people are less motivated to share their knowledge with other (Coakes
et al., 2008). The other reason may be postulated that the current study has been conducted
in the context of PHEIs that characterise as a less technology-driven industry. Thereby,
lack of technological availability contributes to the less knowledge about usage of modern
technological tools to share the knowledge. In a knowledge-driven economy, knowledge
and innovativeness are core to the organizations to be competitive, PHEIs of Pakistan
should be aware of the implications and importance of TC to enhance the knowledge
management processes and innovativeness. Therefore, PHEIs of Pakistan focus on
creating ways through which new knowledge can be created such as publish more
research work, new courses, programs and unique syllabus. Moreover, build strong ties
with the industry to acquire new knowledge, share and execute that knowledge to create
more new and unique knowledge.
6.0 Conclusion
Innovativeness plays a key role to produce unique products and services especially in the
context of PHEIs due to severe competition facing from the private sector. However,
PHEIs may not be able to compete effectively until they do not promote knowledge
231
management processes within the organization to elevate their knowledge base.

Additionally, this knowledge base may create a greater impact when TC underpins the
knowledge management processes to bring or enhance innovativeness. Therefore, PHEIs
of Pakistan should focus on enhancing TC to impetus the knowledge management
processes within the organization to enhance innovativeness. The current study revealed
some important findings in the public higher education settings. It revealed that
knowledge management processes have a significant and positive effect on
innovativeness in PHEIs. Similarly, technological capability significantly and positively
moderates the relationship between knowledge acquisition and innovativeness and,
knowledge creation and innovativeness. Whereas, the technological capability has an
insignificant moderating effect on knowledge sharing and innovativeness in PHEIs of
Pakistan.
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MEDIATION EFFECT OF DYNAMIC CAPABILITIES ON INFORMATION

CAPABILITIES AND HIGHER EDUCATION INSTITUTION COMPETITIVE
PERFORMANCE
Mohd Abidzar Zainol Abidin
Email: abidzar@uum.edu.my
Abstract
This research revisited the question of how information technology capabilities influence
institution competitive performance. Based on these theoretical perspectives of resource-based
view and dynamic capability view, the researcher proposes a conceptual framework for the
mediation effect of dynamic capabilities on information capabilities and institutions competitive
performance. For a researcher to evaluate the conceptual framework, the quantitative research
is proposing to conducted in the context of Malaysia Higher education institution.
Keywords: IT capability, Dynamic Capability, Institution Capability and Competitive Performance
Introduction
In the present era of rapid change and uncertainty, Higher Education Institutions (HEIs) are
competing against each other to perform competitively. This great competition derives from
interferences that creep in from market environments, the crowded of HEIs in marketplace and
issues of economic austerity (Lemoine, Jenkins and Richardson, 2017), in which invention
generated by a competitor are rather rampant and forceful (Pucciarelli and Kaplan, 2016). Hence,
for HEIs to competitively perform, it should be reinforced by its resources and capabilities
(Wetering, Mikalef, and Pateli, 2017). Dynamic capabilities are institution ability to adapt and
reconfigure with the dynamic changing market condition and thrive to create and modify its
resources base (Fainshmidt, Pezeshkan, Lance Frazier, Nair, and Markowski, 2016; Teece, 2014).
HEIs that thrive it competitive performance in such dynamic market environment is widely
considered to be the result of its ability to remain dynamic and competitive (Wilden and
Gudergan, 2014). The merging of information technology (IT) capability in HEIs operational
237
processes is emphasised to offer HEIs an opportunity to enhance dynamic capability and

competitive performance (Parida, Oghazi, and Cedergren, 2016).
In this concentration, IT capability emphasised as an institution able to organise and adopt IT-
based resources in combination with other institutional resources and capabilities in achieving
institution business strategies and values (Bharadwaj, 2000). Despite, the robust
conceptualisation of IT capability and institution competitiveness and performances by previous
researchers at least three opportunities remain for the research extension. First, there is lack of
researchers have conceptualized the relationship between information capabilities as an aspect
of IT capability and institution competitive performance, even though the recent information
technology business value (ITBV) literature has highlighted it essential (Brinkhues, Carlos, and
Maçada, 2015; Carmichael, Palacios-Marques, and Gil-Pechuan, 2011; Kettinger and Marchand,
2011; Mithas, Ramasubu, and Sambamurthy, 2011). Second, there is insufficient research to
examine the different dimension of information capabilities, and how these different type of
dimensions enhances institution dynamic capabilities and competitive performance are not
explicitly recognised. Third, most of the previous research does not adequately address an
indirect effect of dynamic capabilities as an ability of the institution to adapt and reconfigure in
response with dynamic environmental changes on information capabilities and institution
competitive performance and; thus the understanding on why there is a relation between
information capabilities and institution competitive performance are still lacking.
This research draws on the information technology business value (ITBV) literature to explicitly
understand and develop the conceptual framework to link information capabilities and HEIs
competitive performance and makes two contributions. First, the researcher focus on multiple
dimensions of information capabilities as the lower order of institution capabilities, which are
information technology competence, information management competence and information
behaviour and value competence. These, three competencies are representing the ability of the
institution to use and manage information effectively. Second, the researcher identifies two
significant higher order of institution capabilities, which are absorptive capability and
transformative capability that mediates the relationship between the different dimensions of
information capabilities and HEIs competitive performance.
Literature review
IT Business Value Literature
Information technology business value (ITBV) is emphasised on how and to what extent the use
of information technology (IT) within institution contribute to improving institution
performance and competitiveness (Melville, Kraemer, and Gurbaxani, 2004; Yi, Poon, and Chan,
2011). Based on this notion, previous researchers have conceptualised several dimension of IT
238
capabilities based on the IT infrastructure, and it related conceptualisation (Table 1), and lack of
researchers conceptualised information capabilities as an aspect of IT capability. In view of that,
some researchers argue that IT infrastructure and it related conceptualization of IT capability
alone is insufficient to influence an institution performance significantly, and competitiveness
(e.g. Kohli and Grover, 2008; Perez‐Arostegui, Benitez‐Amado, and Tamayo‐Torres, 2012) as well
as cannot create institution business value by itself and need to integrate with other institutional
capabilities (Chen et al., 2013). Accordingly, previous research has yet to explain on how and
what mechanism of IT capability influence institution performance and competitiveness (Liu, Ke,
Wei, and Hua, 2013; Ravichandran, 2018; Wang, Liang, Zhong, Xue, and Xiao, 2012). Therefore,
there is a need to find an alternative and conceptual support on IT capability.
To the specified extent, the ability of the institution to leverage their IT infrastructure and it
related conceptualisation to provide an effective use and manage information or researcher
name it as information capabilities are more significant. In ITBV literature was emphasised that
the preliminary effect of IT infrastructure and it related conceptualisation should take place at
institutional processes that use the IT asset and resources (Kohli and Grover, 2008; Melville et
al., 2004). In precise, IT infrastructure and it related conceptualisation will have enabled
information capabilities as lower order capability and information capabilities will have enabled
dynamic capabilities as higher order capability.
Based on the theoretical perspective of RBV and DCV, institution competitiveness and
performance are achieved from the strength of institutional capabilities that difficult for
competitors to replicated (Bharadwaj, 2000; Teece, 2014).
In an aspect of institutional capabilities, strategic management researchers have emphasised it

based on operational capability and dynamic capability. Specifically, the operational capability
is defined as an ability of the institution to implement and organise the variety of institutional
tasks required to perform institution operational routine and this capability capable of reflecting
the higher level of institution routines to respond with the environmental changes (Teece, 2014).
Dynamic capability is defined as an ability of institution to adapt and reconfigure the institutional
internal and external competency, (Wang, Senaratne, and Rafiq, 2015), which this capability is
exerted as high institutional level of routines and capabilities that capable for institution to
improve their strategic business values (Feiler and Teece, 2014). In a similar vein, based on the
theoretical perspective of hierarchy capabilities, institutional capabilities are conceptualised
based on lower order capability and higher order capability. Accordingly, in ITBV literature,
researchers increasingly argue that IT capabilities as a lower order capability or as the basis for
the institution to enabling the development of higher order capability (Liu et al., 2013). Whereas
higher order capability or dynamic capability is capabilities that affect the change of institution
resource base, this includes internal and external institution environmental condition (Schilke,
Hu, and Helfat, 2018). Therefore, these theoretical perspectives are essential to establish the
mediation effect of dynamic capabilities on the impact of information capabilities on institution
competitive performance.
239
Conceptual Framework and Hypotheses
In this research, the researcher proposes that the different dimension of information capabilities
as an aspect of IT capability as lower order capabilities capable of leveraging the development
of different dimension of dynamic capabilities as higher-order capabilities that in turn directly
affect institution competitive performance. In this research, institution competitive
performance is defined based on the level to which an institution performs better compared it
main competitors in which it is a more relevant measurement for the researcher to captures the
dynamic outcome from institutional capabilities to achieve resilient competitiveness (Rai and
Tang, 2010). The following hypotheses were developed, and the conceptual framework is
presented in figure 1. The research objective of this research is to advance researcher
understanding of the mediation effect of dynamic capabilities between information capabilities
and institution competitive performance by addressing the following research question:
▪ Do absorptive capability and transformative capability mediate the effect of information

technology competence, information management competence and; information
behaviour and value competence on institution competitive performance?
Table 1: Selected Research in Information Technology Business Value Literature and

Related Capabilities with Institution Performance and Competitiveness
IT and Related
IT resources, Operationalisation of
The dimension of IT and Related Capabilities enable
Research and it related IT and Related
Capabilities Mediating
capabilities Capabilities
Capabilities
Mao, Liu, Zhang, IT infrastructure resource, IT Knowledge

Likert Scale, Survey
and Deng, IT Resource Human Resource, IT relationship Management
Approach
(2016) resource Capabilities
IT Human Resource, IT Knowledge

Resource, IT Relationship
Ashrafi and IT Resource Likert Scale, Survey
Resource, IT Strategic Planning, n/a
Mueller, (2015) and Capability Approach
Tactical Deployment of IT project,
IT Competitive Advantage
Chae, Koh, and IT infrastructure, IT Human

IT capability Binary Measure of IT n/a
Prybutok, (2014) Resource, IT Enabled Intangible
Flexible IT infrastructure, IT Likert Scale, Survey Supply Chain Agility,

Liu et al., (2013) IT capability
Assimilation Approach Absorptive capacity
Yayla and Hu, Likert Scale, Survey

IT capability IT Strategic Alignment n/a
(2012) Approach
Performance
Management
Mithas, Based On a Verification
Capability, Customer
Ramasubbu, and Information Management of Self-Reports
IT Capability Management
Sambamurthy, Capability
Capability, Process
(2011)
Management
Capability
240
Information Technology
Absorptive Capability,
Competence, Information Propose Likert Scale,
This Research IT Capability Transformative
Management Competence, Survey Approach
Capability
Information Behaviour and Value
Competence
IT competence
Absorptive capability
Information
management Competitive
competence performance
Transformative
capability
IT behaviour and
value competence
Information capabilities Dynamic capabilities
Figure 1: Conceptual framework
Mediating Role of Dynamic Capabilities
As noted earlier, the theoretical perspective of resource-based view, dynamic capability view
and hierarchy capabilities are fundamentally explaining how the mediation effect of dynamic
capabilities on the impact of information capabilities on institution competitive performance. In
this research, the researcher proposes to examine dynamic capabilities by dividing it into
absorptive capability and transformative capability. Based on Wang et al. (2015) absorptive
capability is defined as institution ability to integrate with external new knowledge, internal
existing knowledge and; to engage with institutional internal changes and update its existing
knowledge. The transformative capability is defined as an institution capability to merge the
acquired knowledge with the existing knowledge and produce a unique knowledge. Although
indirectly mentioned in previous research, the different between absorptive capability and
transformative capability has not been sufficiently researched. In the present era of rapid
change and uncertainty, discovered that absorptive capability and transformative capability are
core dynamic capability capable of creating institution competitive performance (Wang et al.,
2015). Parida et al. (2016) identified the enabling role of IT capability on dynamic capability.
Despite the fact, the importance of both IT capability and dynamic capability has been
researched, researcher have found limited works examine the mediation effect of dynamic
capabilities with regards to influence information capabilities as an aspect of IT capability on
institution competitive performance.
241
Accordingly, based on the theoretical foundation, information capability as an aspect of

information technology (IT) capability are argued as an enable of institution higher order or
dynamic capability and in turn influence institution competitive performance. This notion also
exerted by Wade and Hulland (2004 p.109) “information systems exert by their influence on the
firm through a complementary relationship with other firm asset and capabilities”. In view of
that, it is widely recognized that the information capabilities does not enough contributions to
the business value by itself, where information capabilities must interact and integrate with
dynamic capabilities and enable institutions to adapt and reconfigure with dynamic
environmental changes and competition and in turn influence competitive performance (Grover
and Kohli, 2012; Melville, Kraemer, and Gurbaxani, 2004; Nevo and Wade, 2011; Wang, Shi,
Nevo, Li, and Chen, 2015). Therefore, in this research, the researcher proposes to examine the
mediation effect of a different dimension of dynamic capabilities on the relationship between
difference dimension of information capabilities on institution competitive performance. Based
on the discussion above, the researcher proposes the following hypotheses:
H1. Absorptive capability mediates the impact of IT competence, information management

competence
and; information behavior and value competence on institution competitive performance.
H2.Transformative capability mediates the impact of IT competence, information management

competence and; information behaviour and value competence on institution competitive
performance.
METHODOLOGY
Research Strategy, Choice, Time Horizon and Data Collection
In this research, the researcher proposes to adopts the positivist position which emphasises on
a deductive approach and explanatory in nature. The positivist position is consistent with this
research objective to prove the hypotheses on the mediation effect of dynamic capabilities on
the impact of information capabilities on institution competitive performance that derived from
the current theoretical perspective and the survey questionnaire will be adopted as the best
strategy for this research. Therefore, the quantitative approach applies to this research in order
to investigate the effect of mediation empirically. In choosing the method to be adopted, this
research proposes to choose mono-method which consistent with many of previous research in
the information technology business value domain that still adopts a mono-method. Also, based
on this research objective, cross-sectional research was considered more appropriate for this
research.
242
Moreover, the self-administered survey is proposing for data collection technique that capable
to reduce time and budget. The data collection will be carried out in Malaysia higher education
institutions that are facing in the issues of dynamic competition. The respondent of this research
will be the top management of institutions that explicitly understand the institution operational
processes.
CONCLUSION
Information technology business value (ITBV) literature show that absorptive capability and
transformative capability plays a significant role in ITBV domain. In addition, these two
capabilities are lack to be conceptualised by previous researchers as the mediator between the
relationship of IT capability and institution competitive performance. Therefore, researcher
addressed this limitation by developing the conceptual framework in which other researchers
in this field can examine how IT and dynamic capabilities can create institution business value.
In addition, the researcher hopes this conceptual framework capable of motivating future
research on all sides of ITBV and institutional capability.
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SPATIAL DATA UTILIZATION FOR CUSTOMER PROFAIL

ANALYSIS: A MODEL OF SPATIAL POSTAL ADDRESS
Abdul Manaf Bohari

Email: manafdr@uum.edu.my
Abstract
Postal address is one of important data that potentially used for trace, capture and used together
with customer demographic, such as location, residential, income level, education level,
transportation, and so on. The customer postal address is a touch point to analyzing demographic
where it is vital important to the business, especially to prospecting their profitable customer. From
literature review survey, the business has been used survey intensively as main sources for
gathering demographic information about customer, including non-contractual customer, also
called non-database customer. However, some problem will rise during joint used of home postal
address, specifically, refers to un-match problems between home postal address of non-
contractual customer (from the survey) with spatial data address (road and street data). These
un-match problems may create un-accurate value in analyzing customer demographic
background when current location of customer takes into account. The objective of the paper is
to discuss some issues regarding un-match between home postal address of non-contractual
customer and spatial address. Secondly, this study will introduce a procedure on how to solve
these problems where at the end results on 100 percents match between these two data. The
method of this study is by using iToughMap as an application for transforming customer postal
address into spatial address. To operating this work, data survey of non-contracting customer will
use as a source of home postal address, while road and street data were obtained from
government agency. This study will be applied specifically on the location of Seberang Perai,
Pulau Pinang in Malaysia. One of result indicates that perfect match between postal address with
spatial address has produced when hundred percent match has resulted. At the end, suggestion
will be recommended for future research on how improvising the accuracy, timeliness, and
precision of information regarding non-contracting customer by utilizes spatial and non-spatial
data.
Keywords: Spatial, postal address, geographical information systems
INTRODUCTION
Fundamentally, customer information as well as demographic background is a

source to measure the business performance, including lifetime value of business.
Demographic information such as income level, family background, education level,
types of job, religious, and many more always used by the firm to understand about
customer view on product or services that offers to the marketplace. For strategic
purposes, business must manage and maintain their customer information as well as
important in sustaining relation of business-customer for future value of business
profitability. In fact, business must monitor any change on current value, customer feeling,
behavior, loyalty, and anything related to retaining the customer to deal with business for
long term range. The used of demographic information is critical because business
profitability and long term customer engagement actually has close relationship. This is
support by Gilbert (2007) that argues customer value changes over time, and the value
is increasing over time. In fact, customer values were expected to initially increase as
the firm grows and later decline when the firm reaches a critical mass or maturity. In
perspective of customer value, Glady, Baesens and Croux (2009) mention the value of
customer information on future activity is a key metric for any business activity. Therefore,
customer information is important for business especially for predicting customer0based
value, as well as for understands their behaviour, perception and experiences.
247
Gilbert (2007) explain that there are two types of customer value, where is
identified as tangible and intangible value of customers. In other words, customers
provide tangible value to a firm through direct purchases but they also provide intangible
value through network effects or word of mouth. It is quite possible that some customers
have low tangible but high intangible value. In higher level, Fabel, Sonnenschein, Sester
and Golestan (2008) noted that consumers have great power to revolutionizing their
relationships to the business. The empowered consumer is no longer a vague concept,
but a reality is that changing the face of commerce. Thus, the smartest companies try to
figuring out on how to build relationship with customer to increase their revenues and in
future to spurs growth. It is not easy to manage the customer profitability because retailer
needs to struggle with the key issues regarding their customers. For that, these issues
identified by Berman and Evans (2007) are includes how the retailers can best serve the
customers while retaining a fair profits; how the retailers stand out in a highly competitive
environment where consumers have so many choices; and how the retailers grow up
their business while retaining a core of loyal customers. Based on these researchers,
profiling the customer background is one way to explore customer value for understand
their demographic background, behaviour, purchasing activities, change of need and
demand, and potential income sources for future.
In customer market view, consumer market and spending will projected to rise up
in many countries including Asia region. Fabel, et. al., (2008) notes that no longer just
passive partners in a world economy dominated by the United States, Europe and Japan.
Beside that, countries like China, India and Brazil represent increasingly robust
consumer markets. In addition, the emerging economies will account for more than half
of global consumption by 2025, adjusted for differences in purchasing power. As
exampled, compound annual growth rate (CAGR) for the Big Six (B6) countries as well
as Brazil, China, India, Mexico, Russia and South Korea, projecting to climbed up from
USD 7,579 billions in 2005 to USD 24,799 billions by 2025, which is overall equally to
6.1%. For G6 countries, as well as France, Germany, Italy, Japan, United Kingdom and
United States year, CAGR also predicting consistency grew about 2.3 %, where as shift
from USD 13,106 billions in 2005 to USD 20,565 billions in 2025. With regard to Fabel,
et. al., customer background is important step to get better understand on current need
of market orientation.
This, this study is aimed to highlight postal address as one of important data that
potentially used for trace, capture and used together with customer demographic, such
as location, residential, income level, education level, transportation, and so on. The
customer postal address is a touch point to analyzing demographic where it is vital
important to the business, especially to prospecting their profitable customer. From
literature review survey, as in Gilbert (2007) and Glady, et. al., (2009), coined the
business has been used survey intensively as main sources for gathering demographic
information about customer, including non-contractual customer, also called non-
database customer. However, some problem will rise during joint used of home postal
address, specifically, refers to un-match problems between home postal address of non-
contractual customer (from the survey) with spatial data address (road and street data).
These un-match problems may create un-accurate value in analyzing customer
demographic background when current location of customer takes into account.
The objective of the paper is to discuss some issues regarding customer information,
specifically on un-match between home postal address of non-contractual customer and
spatial address. Secondly, this study introduce a procedure on how to solve these
problems where at the end results on 100 percents match between these two data.
LITERATURE REVIEW
248
Managing customer information is important for retails store because of many

reasons, especially to the business performance. Researchers as well as Carrie Yu
(2009); Fader (2009); Epstein, Friedl and Yuthas (2008); Gilbert (2007); Berger,
Eechambadi, George, Lehmann, Rizley and Venkatesan (2006); Adams (2005); Bell,
Deighton, Reinartz, Rust and Swartz (2002); Berger and Nasr (1998), and many more
doing their research on customer value and business profitability. Customer is an asset
to the business (Gupta & Lehmann, 2003) and retailers must now how to valuing their
customers that contributes the business performance (Gupta, Lehmann, & Stuart, 2004).
Therefore, understanding customer information is a must basic step for ever retail store
before marketing department initiate on how to use customer’s information in targeting,
retaining, satisfying, and maintaining their customers.
Customer information is plays important role in business survivability. Most of

researchers such as Baum and Singh (2008); Berman and Evans (2008); and Long,
Trouve, and Blackmore (2005) believe that customer is crucial part that contributes to
retailer profitability for a short and long term business life cycles. Baum and Singh in
(2008) noted that understanding crucial customer touch of point and the most important
expectations of customer are first step in establishing high-quality and effective customer
services. Recently, Accenture (2007) points out that today’s consumers are more
demanding and also more diverse. These trends have created a consumer who is also
more empowered compared to before. In addition, Berman and Evans (2007) believe
that loyal customers are the backbone of a business and for that, four factors must to
keep when manage customers are customer base, customer services, customer
satisfaction and loyalty programs and defection rates. Overall, business must regularly
analyze their customer’s information with finally to identify the core customers or its best
customers that can contribute to the business success. However, using historical data
as such as from customer database is not to much help because information of customer
is always change in the marketplaces.
Valuing customers is a central issue of any commercial activity. The value of an

individual customer is important for the detection of the most valuable ones, which
deserve to be closely followed, and for the detection of the less valuable ones, to which
the company should pay less attention. At the aggregated level, a marketing campaign
targeting a group of customers can be budgeted more efficiently when the value of this
group is known. Customers are an important asset, and as such, have to be precisely
valuated (Glady, et al., 2009). However, there are some problems between information
from customer database with ‘fresh data’ from the survey including un-match between
them. This is because of information from database is not really updated and potentially
to out-of date.
Managing customers information are identifies as strategic factors for retailer

success, moreover, will reflect a strategic planning on customer relationship
management that is fully aligned with their business objectives and an operating model
that is standardized, streamlined and globally implemented by their global layout.
According to Fabel et. al., (2008), retailers should be setting high response to
differentiate different face of customer then lead them to tackle the challenges of
globalization successfully. However, specifically, in some case, business cannot
estimate a specific segment of customer, as called non-database customer. Reinartz
and Kumar (2000) had mention it is not clear whether some of the findings observed in
a contractual setting hold good in non-contractual scenarios, where relationships
between a seller and a buyer that are not governed by a contract or membership. As
support, Jahromi, Sepehri, Teimourpour and Choobdar (2010) coined that although
different studies have focused on developing a predictive model for estimate customer
lifetime value under contractual settings, performing in a non-contractual setting in which
customer churn is not easy to define and trace, has always been neglected in such
investigations. One of major problem is the information about non-database customer
249
has not available to business as long as customer not registered as their membership in
any marketing programme.
Specifically, under non-contractual setting, there are exit a specific group of

customer, called “Free Customer” where they are freely to do any purchasing or travelling
to the store without any agreement and agenda, even they are never tied by any
marketing scheme that establish by the business, as well as membership card scheme,
joint credit card of hypermarket with the Bank, debit card scheme, society programme,
and so on. “Free customer” also has no attention on establish any contact or relationship
with the business. The data about “Free Customer” is totally not available to hypermarket
business, as implication, hypermarket has no capability to evaluated them. Thus,
hypermarket has no attention to estimate “Free Customer” contribution to lifetime value
of business because of lacking on information regarding their personnel information, as
such location, purchasing activity, behavior, and many more. Here, the un-match
problem between postal address and spatial address will arisen when postal address is
change accordingly to the change in size of population, expansions of housing, re-define
name of road and street, and so on.
The method of this study is by using iToughMap as an application for

transforming customer postal address into spatial address. To operating this work, data
survey of non-contracting customer will use as a source of home postal address, while
road and street data were obtained from government agency. Meanwhile, ArcView
software (GIS) will used to integrate and match between customer postal address with
spatial-based address. This study will be applied specifically on the location of Seberang
Perai, Pulau Pinang in Malaysia.
Then, geocoding process will used to pointing the location of respondents where
current postal address will apply for it. Geocoding is the process by which adding point
locations defined by street addresses, or others address information, to the map. It’s the
computer equivalent of pushing pins into a street map (ESRI, 2002). All of the address
must be in term of point of longitude and latitude, as required by ArcView Software. To
do the convert process, online application iTouchMap (http://itouchmap.com/latlong.html)
will be used to get the accurate location of the address.
DATA ANALYSIS
By entering street name, town and state, manually, this application will helps to find the
longitude and latitude as represent in the real world. Figure 1 show how the longitude
and latitudes can trace by this online device, by using 3 steps and Table 1 is example of
the results.
Figure 2 show result of adding coordinate into map where the view containing all
the points defined in table. Arcview automatically maintains the relationship between a
theme created in this way and the tabular data it is based on, so that changes to the
tabular data are reflected in the map.
Figure 1: The Progress of Searching Longitude and Latitude by iTouchMap.
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Table 1: Postal Address with Longitude and Latitude.
After completing the process of adding the coordinate into spatial based, geocoding and
georeferencing process will be applied on the data. Through the process, non spatial
data (postal address) from survey will locate on the spatial data which is based on street
and road data. Basically, geocoding process has involved spatial data and tabular data
of free customer demographic background. By using some part of layer from
demographic background map, as such street, residential or village and town, individual
postal address from tabular data will geocode onto it.
Figure 2: Results of Adding Coordinate into Map.
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For the first examine on georeferencing of location, there are some problem in
mitch-match the data of postal address with the spatial data of road and street for
Seberang Perai. As result, only 20 percents of postal address is suited to the spatial data,
other rest 80 percents is having no match. To solve this problem, spatial data will check
one by one, and then followed by updating process on it. This part is important because
spatial data of road and street that used is uncovering the latest postal address on free
customer location. This process is similar to Bossler (2002) where opinioned that the
data cleaning, checking, and modifications can exceed ordinary data quality assurances
because both the attribute and spatial data need to be individually checked and often
modified, but also they need to be compatible with each other and with the GIS software.
After this process has been completed, the geocoding and georefereencing will
runs again and as a result it has 92 percents have match. Other 8 percents has problem
specifically in contradiction of grammatical error. For example, from survey data postal
address of Jalan Seri Arowana is spelling in the true word, however in spatial database
the name that used is Jln Sri Arawona. ArcView cannot match beetwen this address and
for that spatial database will modified for get the wright name, as similar to what have
from survey data. After make the data cleaning, checking and some modification, so this
result 100 percent of postal address is matching with street and road, which called
perfect match.
At the end, all of data have a match each other as shows in Figure 3. It means
that results of geocoding process are indicated 100% of the data are well-match. In
addition, by view the data in individual setting (unique value), all of location of free
customer will visualized, as shows in Figure 4. Thus, the spatial data of address now is
ready for used in further works, as for visualized demographic of respondents, customer
activity and customer behaviour, and others.
Figure 3: A Result of Geocoding Process.
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Figure 4: A Result of Individual Address in Pin-Points View.
In term of contribution to body of knowledge, especially in customer lifetime value,

this study will provide new method for handle non-spatial data of postal address of non-
database customer where it is critical to any business. By transforming postal address
into spatial-based address it will be benefits for prospecting the profitable of ‘free
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customer’ and guiding them on improvising the accuracy, timeliness, and precision of
information regarding customer in the real marketplace.
Customer information, especially on non-database customer is always create

major problem in estimate the accurate location of customer where also can affects on
precision of prospecting business profitability. To get more precise about customer,
traditional ways is not necessary now where it cannot solve and supply accurate method
in integrate spatial and non-spatial data of postal address. Thus, combination of GIS-
iTough Map is one of solution for any kind of customer postal address. In advance, GIS
view as high priority technology because GIS supply an indispensable analysis tool as
mention by Miller (2007). This support by ESRI (2007) that noted GIS is one of
platform for analyse customers in every stage, and ability to integrate, view, and
analyze data from geography view specifically different location of customers in countries
as well as stated in previous literature review.
In advance, ESRI (2002) noted that customer knowledge is critical to the success
of any business. The more retailers know about customers, distributions, demographics,
psychographics, and density, the more profitable to business. It is important to keeping
inventory on-hand based on customer purchase information, reduce unneeded inventory,
and provide a better merchandise mix specific to a store location. Thus, it’s important to
utilize the customer information because it has some impacts on retailer profitability. Due
to profitability estimation based on customer information, precise information is vital
important that is can supply by GIS. GIS provide accurate, currently, and update
information about market situation and customer locations that lead to development of
customer spatial informational database. GIS can realize the customer’s valuation
precisely, as well as the important of customers as business asset.
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ARCHITECTURE OF SPATIAL AND NON-SPATIAL DATA FOR

PROSPECTING THE LIFETIME VALUE MODEL OF
HYPERMARKET
Abdul Manaf Bohari

Email: manafdr@uum.edu.my
Abstract
In general, hypermarket business is one of the most promising fields of retailer sector in which to used
Geographical Information Systems (GIS) with the top one reason was to performance mapping the results
of marketing activities, such as location analysis, lifestyle change, geo-demographic, and many more.
Traditionally, retail business have been applied Retail Information Technology (RIT) as their information
system. Based of literature review, there are some major challenging of managing customer relationship
using RIT, especially on how to sustaining the relationship with huge number of customer in the current
location. On the one hand, retail has been used intensively on RIT-related systems such as Customer
Relationship Management (CRM), Sales Force Automation (SFA), Enterprise Resources Planning (ERP),
Retail Information System (RIS), Marketing Information System (MIS), and many more. However, on the
others hand, sadly, results that produced by these systems is not really precise yet according to
geographical point of view and the current change in the real marketplace. In fact, these RIT-related
systems has un-covered concurrent and real-time of business environment in marketplace. As
implications, it pressures RIT to the back as opposite of what hypermarket expects more from RIT. Thus,
the objective of the paper is for discusses current issues of implementations of retail-based information
system on hypermarket business. Secondly, this paper demonstrates GIS capability as RIT purposely for
modelling the location of hypermarket and customer in the real location of marketplaces. An interview
approach will be used as method for gathering some information on current issues, where it was involved
academician expert and hypermarket key-person as respondents. Meanwhile, Arcview software will used
to demonstrate how hypermarket can visualize their geographical location includes precise location of
their customer. The main result indicates that GIS is potentially used as alternative of RIT where it covers
a path of spatial-based analysis. At the end, suggestion was made to develop GIS application as a heart of
RIT where it can contributes to the current practice and body of knowledge of retailing research.
Keywords: Spatial, Non-Spatial, Lifetime Value Model, Hypermarket
INTRODUCTION
In general, hypermarket business is one of the most promising fields of retailer sector in
which to used Geographical Information Systems (GIS) sophistications. The top one
reason for apply GIS for hypermarket business purposes was to performance mapping
activities of the results of marketing analysis and programme, as well as location, lifestyle
change, demographic, consumer behaviour, customer value, market segmentation, and
many more. Obviously, GIS is used and applied in the real world business operation
including Baystate Health, Chico’s, Kaiser Permanente, Lamar Advertising Company,
Rand McNally, Southern Company, Sears Roebuck, and Sperry Van Ness as mention
Pick (2008). The usability of GIS in business firms are vital important because every
single of business asset is geographically dispersed and needs to be managed using
GIS tools. According to ESRI (2002), GIS technology is a tool for making maps, analyzing
data, and reporting results. Since 1969, GIS has been helping people solve real-world
geographic and business problems. Until today, more than 100,000 organizations
around the world use GIS technology through ESRI Company to manage location,
information and any types of knowledge related to spatial. For examples, by visualizing
specific information, businesses and government agencies can better organize and
visualize their data for improved communications and enhanced decision making.
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Recently, in today's highly competitive environment, marketing is a customer-

orientated operation that is essential for business success. To become success in
sustaining the business performance, ESRI (2007) stated that successful businesses
use GIS tools purposely to integrate, view, and analyze data from geography view. These
applications can be used across an entire organization, in the field, and on the Internet.
Thus, retail business processes, including market analysis, site selection,
merchandising, distribution, delivery, and facilities management, actually involve
geographic relationships. GIS enables retailers to understand and visualize these
geographic relationships toward the end for improve productivity, effectiveness, and
efficiency in these processes. At the same time, predictive investigators such as market
and customer analytics are also enhanced by GIS capabilities. In addition, many different
forms of real-world and modeled data can be used with it to understand the demographic,
competitive, and psychographic interaction of consumers, suppliers, and the geographic
space in which the data is distributed. However, the beauty and power of GIS is that it
allows companies to consider many possibilities, understand potential, review the impact
of different investments, store and produce configurations, and analyze changing trends
in the retail landscape. As opposite of GIS sophistications by ESRI (2007), the retailing
information technology (RIT) will be affected, especially on how effectives of RIT
compared to GIS.
Generally, most of leading retailers as well as Tesco, Carrefour, Giant, and many
more actually understand and sharply projecting their customers exceptionally well.
Better understanding customer values will lead the retailers to the higher performance,
specifically in generating their long term profits. But, for international retail operation,
retailers will face the different view of global customers and it environment. Here, RIT
has limited capability as well as disadvantages of marketing information systems.
Hoffman, Wildman, Rebollo, Clarke and Simoes (2008) believe that when retailers come
to global business retailer landscape, the sheer diversity of customers can confuse the
best of product brands. Thus, to success in a global marketplace requires a fine balance
of two essential capabilities which is refer to a global approach to the business and a
local view of the customer. As implication, retailer needs other alternative information
system to discover and strengthening some aspects of marketing programme. Therefore,
researchers Laudon and Laudon (2008); Berman and Evans (2007); Miller (2007); and
Toppen & Wapenaar (1994) coined to analyzing the market and customers either
international and local based perspectives, retailers need to utilize GIS to helps them
better understanding and analyses on real needs and expectation of customers. GIS
facilitates retailer with spatial based solution and make close relation between predictive
and real situation of customers. More important facts is GIS helps retailer to enhancing
decision making with more precise information on the customers niche and values.
The objective of the paper is for discusses current issues of implementations of

retail-based information system on hypermarket business. Secondly, this paper
demonstrates GIS capability as RIT purposely for modelling the location of hypermarket
and customer in the real location of marketplaces.
LITERATURE REVIEW
Traditionally, retail business have been applied Retail Information Technology

(RIT) as their information system. Based of literature review, there are some major
challenging of managing customer relationship using RIT, especially on how to
sustaining the relationship with huge number of customer in the current location. On the
one hand, retail has been used intensively on RIT-related systems such as Customer
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Relationship Management (CRM), Sales Force Automation (SFA), Enterprise

Resources Planning (ERP), Retail Information System (RIS), Marketing Information
System (MIS), and many more. However, on the others hand, sadly, results that
produced by these systems is not really precise yet according to geographical point of
view and the current change in the real marketplace. In fact, these RIT-related systems
has un-covered concurrent and real-time of business environment in marketplace. As
implications, it pressures RIT to the back as opposite of what hypermarket expects more
from RIT.
Retailing is one of the research areas in marketing that always significant for
every time and place. The reason is retailers and marketing always face new
environment and challenge and could be differs based on location, time and situation.
Beaumont (1991) stated that marketing is perhaps one of the most obvious research
areas in which to apply GIS. Certainly, marketing is a question of demand (customers)
and supply (retail outlets and shopping centers). Both demand and supply are easy to
mapping to a geographical location. Therefore, these factors are interesting to analyze
using tools from GIS. According to Toppen and Wapenaar (1994), retail marketing is one
of the most promising fields of business in which to apply GIS. For years, the one and
only reason to use GIS in retail marketing was to map the results of marketing research.
But nowadays, more and more analytical operations are performed within a GIS
environment. Actually, there are some model were developed to understanding related
activity regarding retailing and marketing, as well as determine catchments areas,
identify retail sites, conduct competitor analysis, and calculate current and future
shopping trips and operate within a GIS environment. In addition, there are various kinds
of GIS applications for marketing research that helps the marketers to answered
fundamental question, such as location of customer, buyer characteristics, market
segmentation, market penetration, competitors forces and location, potential turnover (by
location), product distribution (within rural and non-rural area), expected market share,
new branch (location plan), expand an existing branch, promotion of product, and
advertisement.
In certain firms, marketing department is familiar with others RIT such as
Marketing Information System (MKIS), Retailing Information System (RIS), Marketing
Decision Support System (MDSS), Sales Force Automation System (SFA), Office
Automation System (AOS), Enterprise Resources Planning System (ERP), Customer
Relationship Management System (CRM) and many more. However, there is a question
on effectiveness of all these kind of information system in handling marketing activities.
Some of marketing department are utilizing RIT for a long time, but still have less ability
to analyzing customer in geographical environment. In the enterprise business systems,
ERP for example, which up to now have had minor spatial aspects, spatial data are
become more critical issues. In the ERP for one large business, for examples, Pick (2008)
mention shows that over 98 percent of analysis is non-spatial and only 2 percent is spatial.
Hence, proportion of the non-spatial uses must be considered in recognizing the
perceived importance of spatial data and the priorities given by managers and other
stakeholders in utilizing it. Close similar, Zhao (2000) noted that more than 80 per cent
of all information in an organisation can be geographically referenced. Therefore, RIT
continuously questioned of it capability especially on how precise of it for customer-
based analysis specifically on any information that tied to spatial platform.
Nowadays, the use of MKIS in every marketing management supports the

comprehensiveness of data gathering and analysis. This is important because MKIS
offers many tools and services to help marketing staffs to perform their works. MKIS
support the activities such as pricing of products or services, sales analysis, predicting
trend of price of products, managing salesperson productivity, maintaining new products
and service, analyse the product innovation process, establishing the market planning,
and many more. In recent years, companies have invested in implementing marketing
software systems, such as customer relationship management which helps the firm to
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facilitate marketing resource allocation decisions. However, these investments will not
be optimally leveraged if the understanding of how such MKIS can influence customer
perception and market penetration is low (Abdul Manaf Bohari, 2008). Thus, MKIS is
unable to performance more complicated analyses especially when facing the spatial
based variables or data. Thus, to enhance the ability of MKIS, spatial platform should be
considers in redesign any kind of marketing based information systems.
As marketing decisions are becoming more complex because of the increasing

of products and brands and, under the pressure of competition, an ever shorter time
frame for the decision-making process, MKIS approach is one of the importance thing
for management. In reality, the marketing information revolution is producing enormous
amounts of data, and systems are needed to translate these data into actionable
information. This is one of disabilities of MKIS because MKIS not enough capabilities in
generating spatial information and transforming it into non-spatial based information that
valuable in measuring the customer value. To makes MKIS better performance than
before, some new spatial capabilities and function should be considers as new functions
of MKIS. To enhance the performance of MKIS or any RIT, such information technology
should have capability on tied spatial information with marketing database. Therefore,
this is one of reasons why GIS is significant for develop in marketing department as
retailing information technology where it can discover specific analysis on customer in
the geographical marketplace.
Although MKIS are unable to meet the functions in spatial based analyses, but,
fundamentally, there are sixth (6) reasons why MKIS is vital important to a manager or
marketing persons in business firms, accordingly to Laudon and Laudon (2008); Turban,
Rainer, and Potter (2006); and O’Brian and Marakas (2008). Summaries of some
important point of MKIS are includes:
(1) MKIS will help the managers in in-enhance capital management capabilities in
marketing decision area (Laudon & Laudon, 2008). MKIS need spatial capabilities to
depth understanding on capital management in relation with spatial variables.
(2) MKIS is one of the important tools that plays critical role for guiding the firms on
how to increasing the productivity of firms including high growth and future performance
(Turban, Rainer, & Potter, 2006). Therefore, MKIS must be able to link between spatial
information and non-spatial information to get more precise information regarding firms
growth and profitable.
(3) MKIS is one avenue for achieving a marketing strategic advantage by
establishing the products differentiation strategy (O’Brian & Marakas, 2008). In addition,
MKIS must develop geographical platform as their avenue for generate better
understanding on suitability of strategy in geographical places.
(4) MKIS will make the managers realize new sources of business opportunity, as
well as develop new products, design new services, establishing new marketing niche,
includes strengthening the relationship between the business and customers (Laudon &
Laudon, 2008). Here, MKIS need more advance function and tools, because of existing
capability is not really handle the latest challenges of managing new resources.
(5) Many marketing management activities are supported by computerized
information systems and by this, the marketing function will generate accurate demand
for the company’s product or services and then the company will generate enough
product for meet that demand (O’Brian & Marakas, 2008; Laudon & Laudon, 2008; &
Turban, et. al., 2006). In addition, projecting the demand and supply of product or
services must empower by spatial based information systems because demand-supply
is something related to real geographical environments.
(6) MKIS is concerned with identifying the customers for the firm’s new products or
services, determining what customers need or want, planning and developing new brand
of products and services to meet their needs, and then, advertising and promoting these
products and services (O’Brian & Marakas, 2008; Laudon & Laudon, 2008; & Turban, et
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al., (2006). But, to make the analysis of customers are more valuable, GIS should
explored to support existing marketing based system within marketing department.
Globalization is one of the strategic key elements for business in designing their
customer and market based activities that contributed to firm profitability. As the
globalization era transforming world to become more interconnected, more borderless,
and more sophisticated, the pressure to driven-up the performance of any kind of
business has accelerated and needed for more customers, location and space of
operation. In relation with the globalization era, Abdul Manaf Bohari (2008) noted the
huge demands for new customer entrance, customer segmentation, market value,
demographics or populations, business resources, technology and innovation, degrees
of efficiency and complexity in competition actually already intense. Thus, it’s could be
an urgent reality for any business or firms on every location of customers. Due to all of
these needs and requirements, transformation of any kind of organization with objectively
to capitalize and utilize new opportunities of unexpected market has become more
complicated and ever challenging than before. Thus, to maximize the potential of new
market and customers demand, GIS can play as platform for transforming the traditional
paradigm to modern approaches of conducting any kind activity and planning related to
business such as marketing and site analysis, customer management, retail profitability
analysis, competition and market force, and many more.
Thus, it’s important to utilize the customer information directly from the
marketplace because it has some impacts on retailer profitability. Due to precisely
valuated, precise information is vital important that is cannot supply by any kind of RIT
or MKIS. In some cases, RIT and MKIS can provide accurate, currently, and update
information about market situation and customer locations, however those kinds of data
is not well-spatial yet. At the end, the firm actually need to development GIS as
alternative of RIT or MKIS that more spatial-friendly.
Firstly, to investigate what are the current issues of implementation of RIT, MKIS
or customer-related information system in the business, an interview approach will be
used as method for gathering some information. The interview is conducting in un-
structured format where it was involved academician expert from Universiti Utara
Malaysia (2 persons), Universiti Teknologi MARA Malaysia (1 person), LimKokWing
University (1), and Universiti Sains Malaysia (1 person) that all the university was
situated in Malaysia. Secondly, hypermarket key-person has targeted as respondents
which are focused on International Hypermarkets in Seberang Perai of Penang in
Malaysia. There are 18 key-people of hypermarkets; as such marketing researchers (4
persons), CRM managers (5 persons), Sales managers (2 persons), Head of marketing
department (3 persons) and supervisor’s (4 persons) are volunteers to cooperate to this
study. Totally, there are 23 respondents’ that volunteer to be interviewed in this study.
The main question that asked to them is what is the current issue of implementation on
RIT, MKIS or customer-related information system in the firm? In addition, other related
questions are:
(a) What is the current issue of managing customer in the current marketplace?
(b) How the RIT, MKIS or customer-related information system functionally in

managing the customer information?
(c) How effective the RIT, MKIS or customer-related information system in handle
customer profitability.
Meanwhile, Arcview software (GIS software) will used to demonstrate how hypermarket
in the area of Seberang Perai of Penang in Malaysia can visualized based on their
260
geographical location. In addition, location of customer also can integrate with location
of hypermarket by using map platform. This is important to view that GIS can be used
as alternative of RIT, MKIS or any related information systems for the latest retailing
information technology.
DATA ANALYSIS
The main result indicates that GIS is potentially used as alternative of RIT where
it covers a path of spatial-based analysis. In detail, discussions and arguments of
findings are shows as below.
Current Issues of Implementations of Retail-Based Information Technology
Fine the real best customers that contribute high purchases on firm product are more
difficult than identifying the customer segments with the highest potential, as agreed by
21 of 23 respondents. Whether a retailer is taking an aggressive or conservative
approach to the new market of customer, managing customer information still a core
concentration that help retailers analyze business opportunities and act accordingly.
Thus, most of retailers tend to maximize the value of each customer interaction because
for some reasons, such as (1) to manage profitability of retailers; (2) to increase volume
of sales; (3) to compete with others; (4) to maximize customer re-visit and recency of
shopping; and (5) to beat competitors by making strong decisions based on value
information. This is similar to Long, Goodchild and Rhind (2005) that stated profitable
performance tomorrow, then, depends on providing the right product mix at the right time
to customers. Retailer must investigate what customers want before they even know
they want it. That kind of customer knowledge is more insight and it is a fact-based
foundation of successful customer-centric retailing.
Basically, the RIT, MKIS or customer-related information system in any marketing

department is concerned specifically on identifying the customers (current and new
customer) for the firm’s products or services, determining what the current customers
need or want, developing new products and services to meet the customer needs,
planning effective marketing programme of market penetration, handle such kind of
advertising and promoting and many more. In specific, the department such as CRM
department, sales department and marketing department are concerned with establish
relationship with customers, promoting new products to marketplace, selling the products
and services to another market segment, taking orders and prepared stocks, and
following up on sales. These statements as above is agreed by all 23
respondents.Therefore, in perspective of RIT, MKIS or customer-related information
system, researchers Li, McLeod and Rogers (2001) mention MKIS supports all these
activities related to sales analysis and trend, and usable for manage corporate
information resources. At the strategic level, MKIS monitor trends affecting new products
and sales opportunities, support planning for new products and services, and monitor
the performance of competitors. For example the Marketing TPS collects sales data that
can be segregated along several dimensions for early detection of problems and
opportunities, usually by searching for trends. In addition, an interesting computerized
technology that can support this type of sales analysis is a Geographical Information
System. By using pre stored maps at various levels of details, a marketing manager can
learn a lot about the company’s customers and competitors.
Practically, the capabilities of RIT, MKIS or customer-related information system

in managing customer issues are continuously questioned even by the respondents of
the study. As exampled, as such as Customer Relationship Management (CRM)
software on it function for analyzing customer profitability includes lifetime value of
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customer. However, the software has capability on geographical information platform

which is vital for manage customer value geographically. These statements are agreed
by all 23 respondents.This is because of the function of RIT, MKIS or customer-related
information system are lowering the failure rate and supporting the success of marketing
department are the ultimate goals of any researchers and practitioners as mention by
Markus and Tanis (2000). In addition, this is similar to other works as mention the failure
rate of Customer Relationship Management (CRM) implementations is estimated to be
greater than 65% (Davids, 1999) and it have implication on customer relationship
management events. Currently, Forrester Research has evaluated 18 leading customer
relationship management (CRM) suite solutions against 516 criteria reflecting the
requirements of large organizations. They found that Leaders Oracle Siebel and SAP
still offer the most complete solutions, with better usability and improved total cost of
ownership (TCO) and other vendors such as CDC Software, Microsoft, Oracle CRM on
Demand, RightNow Technologies, and salesforce.com are gaining ground with flexible,
quick-to-implement solutions. The Leaders are challenged by a pack of Strong
Performers, Oracle E-Business Suite (EBS) CRM and Oracle PeopleSoft Enterprise
CRM remain good options for enterprise resource planning (ERP) customers. Meanwhile,
Chordiant Software, Pegasystems, and Sword Ciboodle offer business process
management (BPM) strengths to orchestrate complex customerfacing processes.
Maximizer Software, NetSuite, SageCRM, Sage SalesLogix, and SugarCRM offer sound
solutions but are best suited for midsized organizations. FrontRange Solutions, a
Contender vendor, offers a solution to meet basic needs (Band, 2010).
The issues of customer management have grown rapidly in recent years, with
highly consideration on how the firms manage customers as key assets. Regarding
customer value management, there are some key challenges that firms and researchers
face in understanding, managing, and implementing successful customer management
strategies. Kumar, Lemon, and Parasuraman (2006) noted there eight key challenges
for managing customer, such as (1) Managing customers across multiple channels, (2)
Achieving customer centricity, (3) Managing brand equity versus managing customer
equity, (4) Developing and operationalizing appropriate customer lifetime value (CLV)
models, (5) Understanding the link between CLV and shareholder value, (6) Developing
forward-looking customer metrics, (7) Successfully implementing customer relationship
management (CRM) strategies and (8) Implementing CRM in global environments.
Overall, managing customer is one of factors for success in managing retail profitability,
as indicated in Janiak (2009); Fabel, Sonnenschein, Sester and Golestan (2008);
Hoffman, Wildman, Rebollo, Clarke and Simoes (2008); Moriarty, Ben-Shabat, Gurski,
Padmanabhan, Kuppuswamy, Prasad and Groeber (2007); Baum and Singh (2008);
Berman and Evans (2008); and Long et. al. (2005). However, such kind of RIT, MKIS
and customer-related information system has lower capability to analyze the current
issues of customer especially on customer information for predict better results in
business profitability.
In future, customer orientation is more vital than ever because today’s best
customers are not necessarily tomorrow’s. To sustain profitability in the flow of a
changing marketplace, retailers need to offer the customer a constantly relevant reason
to buy which is a differentiating reason that can vary from one customer, situation and
region to another. This statement is agreed by 22 of 23 respondents. In Long et. al.,
(2005), retailer advised to use customer centricity approaches for continually
successfully monitor their business performance with key segments, testing the
relevance of their strategy with that ever-evolving profitable consumer. Peppard (2000)
stated that successful company does well in both keeping and managing its customers
through providing a set of attractive, and then personalized services that satisfy its
customers’ needs. Further more, Gulati and Garino (2000) believe that it is important to
understand customer behavior through analyzing customer information to differentiate
between customers, to identify the most valuable customers over time, and to increase
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customer loyalty by providing customized products and services. As opposite of Long et.
al., (2005) and Gulati and Garino (2000), RIT has no ability to perform advanced analysis
of customer analysis where need to integrated spatial information into the based-line of
analysis.
As results from the interview session, here, GIS is suggested as alternative of

analyzed the customer’s information as well as prospecting the retails profitability. By
utilizing GIS application and tools, it will bring new ideas on how to utilize spatial-based
information as a part of information of understands the current situation in the
geographical marketplace.
GIS capability as RIT
It is important to understand and apply the best practice on servicing the

customer because customers are the backbone of business. Not surprisingly, customer
focus is always identified as the key to successful retailing in any marketplace. Obviously,
successful retailers apply customer based strategy globally for gearing many more
customers for contributes to firm profitability. To ensure retailers get more details on real
customer situation, GIS should considered as important strategic tools for any reason,
such as, GIS is an ideal tool for identifying and expanding markets, and increasing profits
(Zhao, 2000); GIS provides answer for question about demand (customers) and supply
(retail outlets and shopping centers) (Beaumont,1991); and GIS purposely used for
target store sales predictions, sales territory modeling, product placement, and customer
analytics (Thum, 2008). By using GIS technology, retailers enable and performing such
kind of customer based strategy, as well as market differentiation, customer value
identification, and streamlining and integrating their global customers to achieve high
profitable market.
In practices, GIS has ability to modeling the location of the hypermarket by using
spatial-based information as shows in Figure 1. From Figure 1, the boundary of
Seberang Perai Tengah of Penang has been used as base-line for projecting location of
hypermarket where it represents the actual location in the marketplace. Obviously, each
hypermarket is close to each other, which are in between 2-5 kilometers. Meaning that,
customer has ability to choose and switch their destination of shopping, even tough they
can shop for more than 2 hypermarkets for one day.
Figure 1: Location of Hypermarkets in Seberang Perai Tengah, Penang.
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Table 1 is shows database of customer in Seberang Perai of penang where is

contain such particulars, as such customer postal address. Traditionally, hypermarket
used these postal address for marketing activities via distribute information on mass
media. However, this will be more effective if each postal address of customer can map
into specific location. Then, hypermarket can trace and analyzed the customers for better
results in understanding of which customer is more profitable to them.
As present in Figure 1, each hypermarket is so close to each other. By integrate

location of customer as in table 1 into map of hypermarket as in Figure 1, thus,
competition among hypermarket can visualized according to distribution of customers.
Therefore, Figure 2 show the location of hypermarket and customer that visualize using
spatial data as such street and road systems. The best thing about GIS is it can show
hidden data that may potential to use for marketing activities. In addition, figure 2 shows
location of customer that is located outside the Seberang Perai Tengah also can figure-
out that potentially can helps hypermarket to do market penetration in more precise.
Table 1: Customer Database of Current Postal Address.
Figure 2: Location of Hypermarkets-Customers in Seberang Perai, Penang.
264
Conceptually, in relation with Figure 1 and Figure 2, Pick (2008) stated that GIS
as information technologies have become more pervasive, interactive, mobile, internet-
based, and diffused throughout the enterprise; likewise spatial technologies have done
so. In practice, Clancy (2008) stated enterprise GIS now become important application
in business sectors. This is because of enterprise GIS is integrated, multi-departmental
system of components used collect, organize, analyze, visualize, and disseminate
geographic information. Indeed, the goal of an enterprise GIS is to implement
interoperable technologies, standard and methods so that GIS data and services can
support core business needs more efficiently and more effectively.
The used of GIS is significant to the current issues of customer in the marketplace.
ESRI (2002) estimates that approximately 50 percent of today's retail stores do not
capture customer information as part of the business transaction. Without this find of
information, it is difficult to quantify the demographics of your customers or market areas.
So, GIS application is powerful and useful which provides one means of identifying
characteristics of a mathematically generated market area. Other analyses can be
performed to add to the value of these areas including drive time and ring analyses. In
addition, Berman and Evans (2007), the issues of customer ia relates to the retail trade
area zone where the revenue is actually generated from. By using GIS analysis on retail
trade, they can predict where the best prospects instead of increasing retail profitability.
GIS can help the retailer in term of understand the best allocate their resources, such as
retail locations, sales force, promotion tactics, marketing activity, advertising incentives,
include mail based campaigns with final aimed to grow their businesses.
In the level of decision making, mapping the location of hypermarket and

customers as in Figure 1 and Figure 2 can contributes to the overall performance of the
265
business. Bastedo (2008) stated that GIS are enhancing business value in a complex
organization, which are includes understanding values related to place, customer,
organization (revenue), shareholders, and brand. Andronikov (2008) mention that GIS
functionally in enhancing the business decision making process in many area of business,
such as site analysis, market analysis, analysis of demand, supply chain management,
risk management, and network routine modeling. In addition, Zwillinger (2008) stress
that one of the primary benefits of GIS is that it allow businesses to improve decision
making by using spatial analysis. That why, for customer management, GIS highlighting
the proximity between the location and key potential customers and provide some insight
into the potential daytime customer demand.
ESRI (2002) noted GIS is finally able to address the key issues of top
management such as marketing, competition, and profitability. As shows in Figure 1 and
Figure 2, senior management needs GIS for understand their potential markets,
customers, and current situation on marketplace where is always in un-predictable
situation. Specifically, the hypermarket key-persons as noted previously, want to follow,
through time and space, the competition in relation to their best markets and determine
if the competition is growing or shrinking. In addition, they also want to site new
businesses and track sales in existing locations as well as determine profitability of a
new or proposed location. With this information, marketing key-persons know which
stores are under producing relative to potential.
In term of contribution to body of knowledge, especially in customer relationship

management, this study will provide new method for developing GIS as RIT of any
retailers where it is critical important to handle any un-solved problems that un-able to
RIT-related systems such as Customer Relationship Management (CRM), Sales Force
Automation (SFA), Enterprise Resources Planning (ERP), Retail Information System
(RIS), Marketing Information System (MIS), and many more. This study also provide a
guideline on how to make a transformation for replacing the RIT with GIS that perceived
more customer-friendly and real-time base, where marketplace can be modelled and
analyzed as in the real situation.
Until now, retailing is an important field to study because of its impact on the
economy, its function on distribution, and its relationship with firms selling goods and
services to retailers for their resale or use. Overall, retailing is a major part of world
commerce and retails sales and employment are vital economic contributors, and retail
trends often mirror trends in a nation’s overall business (Berman & Evans, 2007).
Increasingly, retailers are using GIS software, with combine digitized mapping with key
location data to graphically depict trading-area characteristics such as population
demographics, data on customer purchases, and listings of current, proposed, and
competitors location. Commercial GIS software programs lets firms quickly research the
attractiveness of different locations and access computer-generated maps (Johnson &
Kunz, 2005; & Lowe, 2005). Thus, GIS used for helps the retailers to delineate and
analyze trading areas and supply valuable information for decision making activity
instead of predicting the most profitable location and customers. Event now GIS also
provide insight analyses tools for ensure the retailers get in-depth analysis on customer
value, market situation, retailers competition and business environment.
Customer is the greatest asset to retailer, specifically, the current customers who
will remain as customer in future also. In common understand that the customer is the
fundamental reason for the company's existence and operate in the market place.
Therefore, suggestion was made to hypermarket or any retail business to develop GIS
application as a heart of retail information technology where it can contributes to the
current practices of retailing sector. In reality, the trends for business uses of spatial
266
technologies are change and move towards high platform such as web based services,
mobile spatial devices, advanced visualization, multi-tasking, but simpler functionality of
user interfaces. In practical view, more sophisticated and complex technology applied
and used in marketing and retailing areas and really advance rather than before. On the
one hand, Longley, Goodchild and Rhind (2005) estimated the total revenues for spatial
technologies and associated products and services has been reach at over $15-20 billion.
On the other hand, Miller (2007) indicates the value of GIS technology for the business
and marketing industry has never been greater than it is today. Small and large
businesses alike are finding GIS to be an indispensable analysis tool in site selection,
market area analysis, sales territory management, customer profiling, sales and service-
call routing, and merchandising strategy development.
Specifically, GIS plays important roles in marketing, including in retailing and

customer management. According to Zhao (2000), the application of GIS in business
has grown rapidly and major retailers, automobile dealerships, video rental companies,
media organisations, and fast food corporations are just some of the many businesses
around the world that have discovered the value of GIS. Research has shown that since
more than 80 per cent of all information in an organisation can be geographically
referenced and that why the business strategists are finding GIS to be an ideal tool for
identifying and expanding markets, and increasing profits. For examples, by linking
statistical methods with GIS this are be able to enhance GIS capabilities with the power
of statistical analysis, and effectively use data from different sources for market analysis.
GIS allow users to visualise spatial data in different form, including visualise the spatial
distribution of data on maps prior to further statistical analysis. By doing this, the potential
of GIS application in market analysis have been seen as a tool for reaching a desired
solution especially for Executive Business, Marketer and Retailers.
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Bastedo, M. .2008. Business value of GIS in a complex organization. Proceding of 2008

ESRI Business GIS Summit. ESRI Business GIS Summit. April 27- 30, 2008,
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Stimulating SMEs Business Success with Entrepreneur’s Efficacy, Improvisational

Behaviour and Strategy Adoption
Darwina Arshad

Email: darwina@uum.edu.my
ABSTRACT
In any contemporary market conditions, it is crucial for corporations to ensure their prosperity of
business growth and survival. Numerous previous researches have evidently proved the
association between many factors with firm’s business success. However, there is limited
understanding of organizational capabilities and strategies toward business success specially in
the context of SMEs. Thus, this study aims to propose the investigation on improvisational
behavior and strategy adoption as the moderating factors towards the linkage between
entrepreneur’s efficacy and SME’s success. Three hypotheses are propositioned to attain the
abovementioned research goal. The research is expected to be valuable to both relevant
practitioners and theorists in the field of entrepreneurship and business management.
Keywords: Entrepreneur’s Efficacy, Improvisational Behavior, Strategic Adoption and SMEs

Success
INTRODUCTION
Many countries are focusing on entrepreneurial activities that drive the economy and provide job
opportunities. Malaysian SMEs are one the critical component of the country’s economic
development. SMEs have always retained prime position on the government ‘s financial radar by
virtue of their sizeable contribution to the nation‘s gross domestic product (GDP) (SME Annual
Report, 2011), while giving openings for job to a large portion of the population workforce, and
as providers of goods and services to substantial organizations (Singh, Garg, & Deshmukh, 2008).
SMEs have been identified as the engines of growth to help the nation to become a developed and
industrialized nation (Bozkurt and Kalkan, 2014).
In today’s business, SMEs are not only serving as wealth creation, but they also provide job
opportunity to reduce poverty level (Prajogo & McDermott, 2014). This scenario has also
reflected Malaysian SMEs where SMEs’ GDP growth exceeded country’s GDP growth. SMEs’
growth in 2011-2015 recorded an average annual growth of 6.7% which was depicted higher than
the country’s overall economic growth of 5.3%. As reported in the SME Annual report in
2009/2010, SMEs accounted for about 99% of total business establishments, 56% of total
employment and 19% of the total exports of the country. Despite their importance in the national
economy, studies have revealed that SMEs in Malaysia encountered various problems in their
operations that affect not only their growth but also their business sustainability.
SMEs in many countries face numerous challenges. At the theoretical level, studies have
identified some of the barriers to SMEs’ growth, (Hall, 2002; Moha, 1999; SMIDEC, 2002; Stuti,
2005, & Wan, 2003;). Wan (2003) in particular highlighted many challenges faced by SMEs
especially in a globalized environment, such as funding difficulties, low productivity, managerial
incapability, poor access to management and technology, and heavy regulatory burdens, etc. In
the Malaysian context, SMEs have certain challenges, and these have been highlighted by many
270
scholars. The challenges could hinder the firms’ competitiveness and sustainability. Therefore,
organizations should emphasize on the organizational capabilities and a good strategic execution
in stimulating a firm's success and competitive advantages (Wheelen et. al, 2018).
There are various theoretical perspectives which explain the growth of SMEs that associated with
strategies and entrepreneurial capabilities. Dobbs and Hamilton (2007) assert that there is no
single theory which can adequately give the explanation to this condition. According to Greiner
(1972), cited in Gupta, Guha and Krishnaswami (2013), the evolution theory represents that firms
learn on their efficiency overtime and move through different stages. As a new entrant in the
market, they are normally unaware of their true efficiencies but as they mature, they are able to
uncover their productive efficiencies and adopt strategies befitting the circumstances. Typically,
most companies have started their business as SME and after they stable and mature, they will
expand into large corporation. SMEs are categorized in the business growth stage (Wheelen,
Hunger, Hoffman & Bamford; 2018). Growth strategies are one of the popular strategies that most
SMEs adopted in their business (Wheelen, et.al; 2018).
In other view, according to dynamic stage theory by Papadaki and Chami (1982), cited in Levie
and Lichtenstein (2010), SMEs have certain characteristics that are associated with the propensity
for entrepreneurial behaviour. SMEs with more of these characteristics are more likely to grow
faster than those with fewer ones (Papadiki and Chami, 2002). In other words the attitude of the
individual entrepreneur in taking risks, creative, tendency to improvise, motive of going into self-
employment, his or her managerial abilities to raise capital and perceive new markets, will
determine the growth of the firm.
Organizational capabilities could be from entrepreneurial capabilities as well as the strategic

adoption of a company. Some scholars argued that firms’ strategies and performance depend
significantly on the organizational capabilities. Meanwhile, to gain competitiveness, the company
should have a combination of a good strategy and capabilities. Therefore, to face all challenges
and be competitive in the market, SMEs need to focus on the best strategic adoption and
capabilities of the firm.
Mixed findings were evidently revealed from previous study on the relationship between
entrepreneurial capabilities and strategy toward business success. For example, there were
positive and negative relationships found between entrepreneurial self-efficacy, improvisational
behaviour and firm performance (i.e. Cumberland et al., 2015; Hallak, Assaker, & O’Connor,
2014; Hmieleski et al., 2013; Miao et al., 2016; Rosli & Hatinah, 2016) especially in SMEs setting.
It also found vague results on the relationship between strategy and performance (Rodrik, 2005).
Therefore, it is significant for this study to explore the relationship between self-efficacy and
improvisational behaviour, growth strategy and SMEs business success.
ENTREPRENEUR’S EFFICACY AND BUSINESS SUCCESS
In predicting future performance, entrepreneurial capability shows an extensive theoretical and

empirical research support (Miao et al., 2016). According to Bandura (1977), entrepreneur’s self-
efficacy can conduct to task-specific effects. This means that a person who organized the business
that have the self-efficacy construct can strong hold on the believe that in their own capabilities
to accomplish task in entrepreneurial activities (Cumberland, Meek, & Germain, 2015).
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There are various studies have been explored on the relationship between entrepreneurs self-
efficacy (ESE) and business success. The study revealed that entrepreneur’s ESE is positively
connected with firm performance (Miao et. al., 2016). Other study that support that ESE and
business performance is positively related and that ESE influence business performance
(Cumberland et al., 2015; Hallak, Assaker, & O’Connor, 2014; Rosli & Hatinah, 2016).
However, a contradictory finding has also been revealed in the literature on the relationship
between ESE and firm performance. Hardy (2016) explored the influence of ESE towards
entrepreneurial success that is measured by entrepreneurial performance among entrepreneurs in
Tunisia. Results indicated that ESE is not significantly related to entrepreneur performance.
This study recommends the use of specific context of self-efficacy to explain entrepreneurial
success because it has been shown to have a greater predictive power when describing
entrepreneurial activity (Cassar & Friedman, 2009; Miato et al., Rosli & Hatinah, 2016). Bandura
notes that general self-efficacy has the least predictive power and that task specific self-efficacy
is most useful in predicting behavior related to a narrowly defined task (Schjoedt & Craig, 2017).
Thus, since there is inconclusive stand on this relationship due to inconsistent findings, there is a
need for further research on this linkage. In addition, a study on the influence of ESE especially
among SMEs in Malaysia is still limited. Therefore, study will try to fill the gap by investigating
the influence of ESE towards business performance of SMEs in the context of Malaysia. The
above arguments lead to the following hypothesis:
Hypothesis 1: Entrepreneur’s efficacy will have a positive significant effect on SMEs’ business
success.
IMPROVISATIONAL BEHAVIOUR AND THE LINKAGE BETWEEN

ENTREPRENEUR’S EFFICACY AND SMES SUCCESS
From entrepreneurial and management perspective, improvisation explains how entrepreneurial

firms convert strategic plan to respond to opportunities in the moment as they arise (Hughes,
Hodgkinson, Hughes & Arshad, 2018). Arguably, entrepreneurs can improvise at any given
moment when they are faced with potential scenarios and situations that force them to improvise
(Adomako, Opaku & Frimpong, 2018).
Prior studies revealed that improvisation help the firm to achieve its competitive advantage.
Numerous studies have identified that improvisation has significant associations towards firm
performance (Arshad, Razali, Julienti, Ahmad, & Mahmood, 2015; Hatinah et al., 2015; Rosli &
Hatinah, & Nik Nor Hasimah, 2015). Entrepreneurs with improvisational behavior can help
strengthening the linkage between managerial and entrepreneurial capabilities with firm
performance. For example, the capability of the entrepreneurs on their belief to complete specific
set of tasks given will become stronger and better when they activate improvisational behaviour.
This means that improvisational behaviour will promote the relationship between entrepreneur’s
efficacy and firm success. However, the investigation of improvisational behavior is still less in
business and management study. Therefore, this study will propose further examination as follows:
Hypothesis 2: Improvisational behaviour moderates the positive significant association between

entrepreneur’s efficacy and SMEs success.
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STRATEGY ADOPTION AND THE LINKAGE BETWEEN ENTREPRENEUR’S

EFFICACY AND SMES SUCCESS
In small business and entrepreneurship studies, scholars have often discussed firm growth at the
center of their inquiry, whilst scholars such as Sexton and Smilor (1997) have gone as far as to
place growth at the heart of entrepreneurship theory (Steffens et al., 2009). Similarly, the business
media and policy-makers have also remained fixated by the issue of small firm growth (Nicholls-
Nixon, 2005; Storey, 2011).
Growth is one of the primary goals of most firms (Mishina et al., 2004), and studies have
evidenced the importance of growth (McKelvie & Wiklund, 2010). Penrose (1959) cited in
McKelvie & Wiklund (2010) highlighted growth as containing a double-sided strategy of
diversifying into new markets and new products within the constraints of a firm’s pool of available
resources. She further indicated that to grow in a business, a firm can enter new markets with
current products or introduce new products into current markets.
However, without deploying a growth strategy to take advantage of these opportunities, a firm
can hardly capitalize on market orientation to achieve higher performance when it has high self-
efficacy to run the business. Researchers have explained that when business move from their start-
up phase to another, then the belief of the firms towards their survival is critical. As entrepreneurs,
they should have high self-assured on grabbing the external opportunities by keeping in mind
their internal strengths. If companies fail to do so, then their competitors will steal their market
share by availing opportunities. With a good strategic adoption, it is believed that the
entrepreneurs will increase their self-efficacy and thus will lead to higher performance outcome.
Since there is an inconclusive finding on the previous study on the relationship between
entrepreneur’s efficacy, growth strategy and business success, this study will further investigate
the relationship between growth strategy and business success among SMEs in Malaysia. It can
be hypothesized as below:
Hypothesis 3: Strategic Adoption moderates the positive significant association between

entrepreneur’s efficacy and SMEs success.
The proposed study over relationships between independent and dependent variables via the
aforementioned hypotheses is further illustrated in the following research framework diagram
(Figure 1).
Improvisational
Behaviour
H1 H2
Entrepreneur’s Organizational
Efficacy Improvisation
H3
Strategy
Adoption
Figure 1: The Proposed Research Framework
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EXPECTED CONTRIBUTIONS
Contrasting studies in prior research, a lack of empirical studies on these factors and
dubious/mixed empirical results on some relationships have given rise to the opportunity for the
researcher to close this gap in knowledge and demonstrate the possible significant contribution
of this research to theories and practitioners. For instance, this study contributes theoretically on
the element of entrepreneur’s efficacy, improvisational behavior, growth strategy as strategic
adoption in stimulating SMEs’ business success. It is hoped that this study could serve a rational
identification on the moderating elements on the association between entrepreneur’s efficacy
and business success.
CONCLUSION
The pursuit examination on the potential relationships between the aforementioned three
constructs is reasonable given that entrepreneur’s efficacy will lead to SME business success
when this associations moderate with improvisational behavior and strategic adoption.
Nonetheless, this study is needed to empirically investigate these relationships. Findings of this
study are expected to generate answers to the three proposed hypotheses and authenticate the
above claims.
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Perceived Business Opportunities and Working

Women Entrepreneurial Intention in Nigeria: A
Proposed Model
*Abdullahi Hassan Gorondutse
School of Business Management, University Utara Malaysia, Sintok, Kedah, Malaysia/
Department of Economics and Management, Nigerian Police Academy Wudil Kano,
Nigeria.
ahgdutse@gmail.com
Abstract
In the economy of a globalizing world, entrepreneurship has gained importance. The aim of this
study was to reveal factor influencing the entrepreneurial intentions of working women
entrepreneur using the theory of planned behaviour (TPB). The authors employ these theories
in which intentions and aspiration towards being an entrepreneur are regarded as resulting from
perceived business opportunities. This paper expects to offer new insights on the latent variable
are effective on the entrepreneurial intentions of working women entrepreneur and their
aspiration towards becoming an entrepreneur. The study makes a theoretical contribution by
applying the lens of TPB to this specific context. It also makes an original contribution by
focussing on an under-researched group by examining the influence perceived business
opportunities factor on the probability of intension of working women becoming entrepreneurs.
Keywords: Perceived Business Ppportunities, Working Women Entrepreneurial Intention,

Nigeria.
1. Introduction
Literature in the field of entrepreneurship stated whether opportunities are discovered or
created by entrepreneurs (Neill, Metcalf & York, 2017). As such, opportunity finding assumes an
alert entrepreneur, who sees what others miss, while opportunity creation assumes an
entrepreneur who uses available resources and abilities to form opportunity (Neill, Metcalf &
York, 2017). A question that arises is whether entrepreneurs who discover opportunity think
and reason differently from entrepreneurs who create opportunity, as well as from
ambidextrous entrepreneurs who simultaneously discover and create opportunity. While
theoretically significant, the study of opportunity presents an empirical challenge (Dimov, 2011).
Given that opportunity is an unobservable and empirically elusive phenomenon (Welter &
Alvarez, 2015; Neill, Metcalf & York, 2017).
The ability to identify and to access opportunities is regarded as an important entrepreneurial

capability (DeTienne & Chandler, 2007; Hanson & Blake, 2009). The perception of one’s own
entrepreneurial skills has a significant effect on entrepreneurial intentions with a more favorable
own skills perception leading to higher entrepreneurial intentions (UNCTAD, 2013). Gender
differences prevail especially in an individual’s perceptions, and more men than women believe
to have sufficient knowledge, skills and experience to start a new business (McKinsey, 2014;
Sampedro, Laviada & Crespo, 2014).
278
Working women entrepreneurs are those want to inspire and empowered successfully to gain
and maintain the freedom to live their lives the way they want (Daily Trust, 2017). In Nigerian
context working women are efficient but no matter how hardworking it be they most have an
emergency at home and have reason to leave work early, for that reason working women
narrow down their search for something that allow them to have time for their home. The
question of why working women perceived to become entrepreneurs as alternative business
opportunity has remained a great concern in the management literature (Ravi & Nor Aishah;
2016; Sampedro, Laviada & Crespo, 2014; Neill, Metcalf & York, 2017). Although in Nigeria
previous research has offered us insights about women entrepreneurs (Adedeji, Ige & Ekanam,
2017; Love et al., 2015; Garba, 2012 and Idris & Chukwujioke, 2015) but none of this research
focus on working women and their findings are varies.
This study aims to shed more light on the complex relationship between perceived business
opportunity a working women Intention to become entrepreneur in the context of Nigeria and
addresses the drawn gaps in the literature. This paper void is important because the forecast of
entrepreneur behaviours in emerging economies and developed countries may differ. The rest
of the paper proceeds as follows; the next section deals with theoretical background and
prepositions development; subsequent Conceptual Framework and Measurement and the
paper finally ends with conclusions.
2. Literature Review and Theoretical Development

A recent study by Ravi and Nor Aishah (2016) shows linkage between perceived business
opportunities and the Attitude of entrepreneurs. The aim of the study was to identify the
relationship between attitude and intention towards an entrepreneurial occupational choice
among the Indian undergraduates. By using a sample of 315 from Indian undergraduate in
Malaysia, the study found a positive association between the perceived business opportunities
and the attitude of entrepreneurs. The study recommended the entrepreneurship as an
essential field for a country’s economic growth development. Because the study deems the
entrepreneurship as not only job creation opportunities but also, it brings wealth to the people
in the country.
In another study by de la Cruz Sánchez-Escobedo, Díaz-Casero, Hernández-Mogollón and

Postigo-Jiménez (2011), indicated that, gender specifically the women, prays a significant roles
in relation to entrepreneurship. The objective of the study was to examine the existence of
gender differences in the perceptions and attitudes among the students towards
entrepreneurship. The study used data collected from a sample of university students that have
attended a business creation program run in Spain. By using bivariate and multivariate
techniques, the results of the study reveal that, gender plays a significant effect on how the
entrepreneur is perceived and, on the intention, to generate new business in the society.
As such, the perceived business opportunity towards entrepreneurship will be favourable or

unfavourable according to the positive and negative beliefs of the decider towards the creation
of his own business. Therefore, the entrepreneurial decision will depend on the advantages and
disadvantages perceived in this conduct. In agreement with this proposal, different authors state
that entrepreneurs associate the creation of an own business with advantages such as
independence and economic rewards (Sampedro, Laviada & Crespo, 2014).
There are growing numbers of self-employed women in developed economies such as the UK
and the USA (Mitchelmore & Rowley, 2013), and many of these businesses are highly dependent
on the owner and her skills ((Mitchelmore & Rowley, 2013). In addition, there is a widespread
279
assumption that many of these businesses are lifestyle businesses, and as such their
commitment to growth may be relatively low (Mitchelmore & Rowley, 2013).
In the report by Global Entrepreneurship Monitor, (2016/2017) stated that Opportunity

perceptions range from 57% of women in factor-driven economies believing there are good
opportunities around them, down to 39% holding these beliefs in innovation-driven economies
(Global Entrepreneurship Monitor, 2016/2017). The gender gap on this indicator is relatively
narrow; on average, opportunity perceptions among women are at 90% of male perceptions.
Europe reports the lowest opportunity perceptions among regions, consistent with its low
average TEA (GEM,2016/2017).
In Russia and six countries located primarily in the southern part of this region (Greece, Bulgaria,
Slovakia, Slovenia, Croatia and Spain), fewer than 25% of women perceive opportunities to start
a business. High levels come from Northern Europe, where over half of women in Sweden,
Norway, Estonia and Finland believe there are good opportunities for starting businesses
(GEM,2016/2017). North America reports the highest regional average for opportunity
perceptions, slightly higher than in sub-Saharan Africa, where entrepreneurship rates are more
than twice as high. Sub-Saharan Africa’s average, however, is reduced by low opportunity
perceptions in South Africa, which are reported at less than half the level of the average of other
countries in this region, and consistent with low TEA rates in this country. Among the 63
economies participating in this report and the last biennial GEM Women’s Report, opportunity
perceptions increased by 11% in Europe. North America and Asia showed similar increases in
this indicator, while Asia and MENA also displayed narrowing gender gaps. Interestingly, the
regions with traditionally high TEA rates, sub-Saharan Africa and Latin America, exhibited
declines in these perceptions and a slight decrease in the gender ratio (GEM,2016/2017).
Given the multidimensional role of working women in the Nigerian economy, and by implication
in the development process, the continued neglect of the working women in that country can
only equate to a postponement of economic recovery in the country. Perhaps, in realisation of
this platitude, stakeholders have begun to recognise that the poor are potential economic
agents rather than the hitherto misconstrued axiom that they were economic liabilities (Singh.,
Simpson, Mordi & Okafor, 2011; Madichie, & Nkamnebe, 2010).
Women’s contribution to this sector, particularly within the informal economy, has been well
recognised (Alarape, 2009). This has resulted in government initiatives to encourage female
entrepreneurs (e.g. better life programme (BLP), Family Support Programme (FSP) etc). However,
there continues to be a lack of understanding of the factors that may underpin the decision by
working women to start their business in Nigeria.
2. 1 Theory of Planned Behavior (TPB)
Ajzen (1988 and 1991) developed a model of planned behaviour and reported this model to be
a highly effective predictor of a wide range of behaviour. There are number of studies that apply
all dimensions of Ajzen’s planned behaviour model (TPB) to the area of entrepreneurial intent –
the intent to start one’s own business (Şen, Yilmaz & Ari, 2018). These studies support the
usefulness of Ajzen’s theory and his view that behavioural intent is a powerful predictor of the
targeted behaviour. According to TPB, there are three factors that affect behaviour. These are:
attitudes toward behaviour (personal attitude and individual conduct), subjective norms
(influence of significant others; perceived social pressure) and perceived behavioural control
(Ajzen, 1991; Şen, Yilmaz & Ari, 2018).
280
Individuals’ attitudes are taken example in such a way that they always form a bridge between
an individual’s beliefs and intentions. The attitude of an individual, regarding certain behaviour
affects the individual’s intention toward performing that behaviour, which in turn affects the
actual behaviour (Lee et al., 2007). Subjective norms or social pressure is a function of the
perceived expectations of persons or groups close to the individual or the significant others
(such as friends, neighbours etc.), and the desirability of an individual in meeting these
expectations (Fischbein & Ajzen, 1975). In social psychology, intention is the most crucial aspect
of behaviour (Abraham & Sheeran, 2003). However, the study will focus on perceived business
opportunities.
3. Conceptual Framework and Measurement
Based on the literature review, the proposed conceptual framework (fig. 1) of the study is
presented below:
Perceived Business Working Women

Opportunity Entrepreneur
Intension
It is aimed to search whether there is a semantic relation between perceived business

opportunity concerning perceived business oportunity and entrepreneurial intentions of
working women entrepreneur in the study. The prepositions below may be offered in
accordance with this aim:
Preposition 1: There is a relation between perceived business opportunity concerning

entrepreneurship of working women entrepreneurial intentions.
The Entrepreneurial Intention Questionnaire (EIQ) adapted for this study is a modified version
of the one used Kautonen et al., 2015; Şen, Yilmaz & Ari, 2018) used the planned behaviour
theory of TPB to establish an entrepreneurial intention questionnaire (EIQ). And perceived
business opportunity was adapted from Ravi & Nor Aishah (2016).
4. Conclusion
This paper contributes to the literature on entrepreneurship in two important aspects. First, it
goes into detail about the influence that perceived advantages of starting a new business has on
entrepreneurial intentions. Second, the authors examine relevant and special collective,
working women that try to decide for self-employment in future and, hence, it is a critical period
to decide the start-up of a new business.
The working women are under-researched but significant group. It is important therefore that
working women are encouraged into self-employment, in a context where formal avenues of
employment are often reserved for men. This study finds a need to contribute to the literature
and public policy debate by examining factors militating against Nigerian women’s access to
entrepreneur intension.
281
Finally, the objective of this paper is achieved, where this paper offers extended understanding
of perceived business opportunity and Working women entrepreneurial intention in Nigeria,
looking from the lens of TPB Theory. It is recommended that future research can test the
conceptual framework in this study into field works. The justifications of the findings are then
very much significant in extending the current literature.
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283
A Study of Malaysian in Selection of Food Truck in Malaysia

William Eng Yong Keong
williame@sunway.edu.my
Centre for Commercial Law and Justice
Sunway University Business School
Abstract
This study aims to explore the relationships among food quality, service quality and appearance
of Malaysian towards food trucks. A total of 197 respondents indicated that there were positive
relationship between the three factors were identified. The finding of the study can be used as a
references toward the food truck business and the government when implement policies toward
the industries.
Keywords: Food Truck, Food Selection, and Malaysia
INTRODUCTION
The street food is part of Malaysian culture. In South East Asia, street food also
referred as hawker is a major way to feed Malaysian. This type of business can be found
from the early morning selling nasi lemak to the popular night market throughout
Malaysia. These hawkers selling the wide food varieties and cheap in price, the
customers have wide range of options to choose from. The setting of the hawker consists
of moveable types and permanent types. Permanent types are referred to a defined
place where hawkers and itinerant salespersons carry out their business activity. It also
known as “hawker centre”. The moveable types are the hawker selling food on the
tricycle, motorised tricycle, and small truck also common known as food truck. Malaysia
is one of the few nations where the government has formally recognized hawking, which
considered a quiet “informal” section of a nation’s economy (Chin, O and Harun, M.,
2015).
Over these years, there are mushrooming development of food truck areas in Malaysia
particularly in Klang Valley of Malaysia. The food truck areas can be found from the area
where local council prepared the “smart truck” bays to the carnival activities areas. The
hawker industry no longer only operated in fix location of hawker centre by the elderly
people in their mid-30’s to 50’s, more young people too are jumping the bandwagon to
this movable food truck business to reach more customers. The competition among the
food truck has more intensified in these few years. Due to the scenarios, the food trucks
face the challenges and added pressure to evolve significantly to attract customers. In
addition, the consumers’ trend expenditure pattern on foodservice in Malaysia is
expected to continue into the future and grow at a faster rate. There are many past
research studies conducted on restaurants including cafes, chain restaurants, quick-
casual restaurant but rarely focusing on hawker particularly the new type of hawker
business through food truck. Therefore, there is a need to conduct a study to fill the gaps,
specifically to: (1) identify the factors that affect the Malaysian selection on food truck.
(2) exploring variables that affect Malaysian selection toward food trucks.
REVIEW OF LITERATURE AND THEORETICAL FRAMEWORK
In studies of consumers’ choice of purchase, researcher has emphasized the

consumers’ food selection factors in the food and beverage business sector. Consumer
make selection on food based on their satisfaction. A Lewin’s expectancy theory will be
used in this study. Based on the theory, individuals make purchase decision based on
284
their expectations of specific outcome of a specific action (Kivela, Inbakaran, & Reece,
1999). Further, the theory asserts that positive disconfirmation occurs when a product or
service exceeds the individual’s expectations. Confirmation is when consumer’s
experiences are neither positive nor negative disconfirmation (Kivela, Inbakaran, &
Reece, 1999). Through this theory, consumer selection with food truck were measured
and defined for potential market for food truck establishments in Malaysia.
Three hypotheses are developed based on the review of the literature on various studies
done in other related consumer choice of purchase particularly on food and beverage
industry. The model identifies three factors as independent variables influencing food
truck selection. According to past studies, food quality, menu variety, price, atmosphere,
speed of service and many others are the importance attributes influencing restaurant
selection by consumers (Lewis, 1981; Auty, 1992; June and Smith, 1987). Among these
attributes, food quality was found to be the most important consideration influencing
restaurant selection by consumers. Past study (June and Smith, 1987) also indicated
that service is an important factor in restaurant selection, customers are nevertheless
unwilling to pay an extra amount for higher level of service, while other things are being
held constant. Hence, the food operator required to gain competitive advantage by
performing a good level of service. Food operator will be losing out if they have slow
services, inefficient staff, food quality problems and cleanliness (Dutta and Venkatesh,
2007). Food truck operator required to maintain food quality and taste as it is the primary
factor motivating consumers’ selection (Mike, 1992). According to Dulen (1999),
cleanliness and menu variety are also part of the factor on the food stall selection.
Based on the past studies had identified the factors influencing on consumers selection
on food. Therefore, the following three hypothesis are formulated:
H1. There is a significant positive relationship between service quality and Malaysian
selection on food truck.
H2. There is a significant positive relationship between food quality and Malaysian
selection on food truck.
H3. There is a significant positive relationship between food truck appearance and
Malaysian selection on food truck.
METHODOLOGY AND DATA COLLECTION
A quantitative survey instruments were carried out at Klang Valley’s popular food
truck areas in early 2018. The self-administered questionnaires were distributed to the
consumers who patronize around the food truck areas. These respondents were chosen
to participate in this study because they understand better regarding the selection of food
trucks, as well as the attributes affecting their selection. Respondents are required to
complete the questionnaires while they were waiting their food preparation on the food
truck. Out of 500 questionnaires distributed, only 197 questionnaires were valid to be
used for analysis. The measurement items for the survey were adapted from previous
research where their psychometric properties have been established (Table 1). Multiple
items for each construct organized in a survey questionnaire were used for gathering
data. Most theoretical constructs were assessed on the basis of a five-point Likert type
scale (1=Strongly disagree to 5=Strongly agree). A summary of the measurement items
is provided in Table 1. The choice of theoretical constructs to be examined was
determined through a review of the past studies of literature. Specifically, researchers
captured the following information in our survey: (1) demographic profile; (2) service
quality associated with food truck selection; (3) food quality associated with food truck
selection; and (4) appearance associated with food truck selection.
Table 1: Research Variable and Measurement
285
Item Description
Service quality
SQ1 The food truck provides prompt and quick service
SQ2 The food truck willing to handle special requests
SQ3 The food truck is never too busy to respond your request
SQ4 The food truck sensitive to customers’ needs
SQ5 The food truck who care about customers
Food quality
FQ1 The food truck serves tasty food
FQ2 The food truck serves fresh food
FQ3 The food truck serves the food at appropriate temperature
FQ4 The food truck care about the food nutrition
Appearance
AP1 The food truck appears attractive
AP2 There menu is visually attractive
AP3 The dining area is clean
AP4 There are seat available for dining
Food Truck Selection
FTS1 Your choice to dine at this food truck was a wise one
FTS2 You think you did the right thing when you chose to dine at
this food truck
FTS3 You feel enjoyable with your experience to dine at this food
FTS4 truck
Overall, this food truck put you in a good mood
RELIABILITY AND VALIDITY OF DATA
Using factor analysis, the food truck selection attributes have been classified into the
following four factors: (1) Service Quality; (2) Food Quality; and (3) Appearance.
The Kaiser-Meyer-Olkin (KMO) overall measure of sampling adequacy (MSA)

was 0.88, which was considered middling (Hair et al., 2010). Second, the overall
significance of the correlation matrix was 0.000 with a Bartlett Test of Sphericity value
was 1360.48. These measures indicated that the items had good predictive power for
the underlying dimensions. The factor analysis with VARIMAX rotation was used to
identify the underlying dimensions of mimetic pressures, coercive pressures and
normative pressures. Item were retained based on the following criteria: (i) items with
loading of 0.50 or more were retained; (ii) items with loading of less than 0.50 were
removed; and (iii) items with loading beyond 0.50 on two or more components were
removed. The results of the factor analysis and reliability assessment using Cronbach’s
alpha are presented in Table 2. The three underlying dimensions that identified were
given a label. First dimension was labelled as “Service Quality” which explained 57% of
the variance with a reliability coefficient of 0.90. The second dimension was labelled as
“Food Quality”, which accounted for 13% of the variance with a reliability coefficient of
0.90. The third dimension labelled as “Appearance” and explained 10.60% of the
variance with a reliability coefficient of 0.70.
Table 2: Underlying Dimension of Institutional Factors
Attributes Factor Variance Reliability

loadin explained coefficient
g
286
Service Quality 56.51% 0.89
The food truck willing to handle special 0.81

requests
The food truck are never too busy to respond

your request 0.85
The food truck sensitive to customers’ needs

0.83
Food Quality
The food truck serves tasty food 12.91% 0.92
The food truck serves fresh food 0.87
The food truck serves the food at appropriate 0.89

temperature
0.83
Apperance
The food truck appear attractive

10.61% 0.74
There menu is visually attractive 0.82
The dining area is clean 0.79
There are seat available for dining 0.81
0.77
Total Variance Explained
80.03%
RESULTS AND DISCUSSION
Sample Characteristics
The finding comprises of consumers who patronize in the food truck areas at Klang
Valley. Table 3 show the respondents’ demographics, meal category, and money spent
on the food truck per meal.
Table 3: Respondents demographics

Demographic Frequency Percent (%)
Characteristics
Gender
287
Male 105 53%
Female 92 47%
Age
20-29 88 40%
30-39 52 30%
40-49 38 20%
50 and above 19 10%
Ethics
Malay 123 60%
Chinese 58 30%
Indian 12 8%
Others 4 2%
Meal Category
Breakfast 31 16%
Lunch 28 14%
Dinner 138 70%
Days
Weekday 52 26%
Weekend 145 74%
Times per week
1–3 84 43%
4–5 58 29%
6–7 12 6%
Once a month 43 22%
Spent (RM) per meal

per person
2–5
42 21%
6 – 10
68 35%
11 – 15
52 26%
15 – 20
15 8%
>20
20 10%
288
Come with
Family 40 20%
Friends 135 69%
Couple/ Lover 8 4%
Alone 14 7
n=197
Majority of the respondents are the youngster in age from 20-29 (40%). As frequency
analysis there are 43% of the respondents’ buying from the food truck at least 1-3 times.
More than 70% of the respondent buying meal from the food truck in the weekend
evening. In addition, about 70% of them come together with friends.
The next analysis was to explore whether the three factors – Service Quality, Food
Quality and Appearance had statistically significant impacts on the food truck selection,
a multiple linear regression analysis was conducted. Three factors derived from the
factor analysis were used as the input variables in the analysis. The results of the
regression analysis are presented in Table 4.
Table 4: Regression Model
Factors Std.β t p VIF

Service Quality 0.383 7.687 0.000 1.77
Food Quality 0.294 6.148 0.000 1.63
Apperance 0.336 6.913 0.000 1.68
R2=0.854; Adjusted R2=0.729; F=72.51; p<0.001
According to the adjusted R2 of this regression model, 85.4% of the variation of the
customers’ selection of food truck was explained by the three variables together. The
significant F-ratio (F=72.51, p<0.05) indicated that the satisfactory level of the
“Goodness-of-Fit” of this regression model. Of the three independent variables from
perceived benefits context, “Service Quality” (t=7.7, p<0.001), “Food Quality” (t=6.1,
p<0.001), and “Appearance” (t=6.9, p<0.001) were found to be significantly related to
food truck selection.
Three hypotheses (H1, H2, and H3) were constructed to determine the relationship
between service quality, food quality, appearance and food truck selection. As shown in
Table 4, service quality, food quality, and appearance have significant influence on the
food truck selection. Of the three factors, “Service Quality” (β=0.383) and “Appearance”
(β=0.336) were the highest in explaining the overall level of food truck selection, followed
by “Food Quality” (β=0.294). There was not a high degree of collinearity among the
independent variables because all VIF for all three technology factors were between 1.63
and 1.77, which was less than 10.0.
Based on the results of regression analysis, hypotheses 1, 2 and 3 were supported as

the predicted path from all three factors toward food truck selection were statistically
significant at the 0.01 level.
These findings suggest that these three factors play important role in influencing food
truck selection. More importantly, these finding provide strong empirical support that the
289
factors rooted in expectancy theory are key predictors of food truck selection. This is
being validated empirically the expectancy theory in the context of consumer selection.
Service quality factor (0.38) were found to have the stronger influence on food truck
selection by the consumers. Customers choose to buy food from a food truck who able
provide them a better service. This result is on conformity with literatures by Shanka
(2012) and Aghdaie and Faghani (2012). Services quality have a significant relationship
because customers have more choices on the selection of the different food. The
consumers have a better bargaining power over the food truck by making special request
from the food truck. It is important for food truck business to provide good services in
order to gain and maintain their competitive edge.
Food quality from the food truck were found to have positive impacts on the food truck
selection. Similar finding was reported by past studies (e.g. Ma, Qu, Njite, and Chen,
2011; Haghighi et al., 2012; Ramanathan et al., 2016). This finding shows that the
consumers will be attracted by the enticing smell from the food truck and then purchase
from the food truck. To successfully attract more customer purchase from the food truck,
food must be carefully prepared using the fresh ingredients.
In addition to food quality, food truck appearance was found to have positive and
significant impacts on the food truck selection. Similar finding was concluded by Kaura
et al. (2015) and Ojo, Amoako-Sakyi, and Agyeman (2015). These studies were not
conducted in food service sector, hence this result can be said as a new finding in food
truck business sector. Appearance was proved to be significantly related to the selection
of food truck. One way to attract consumer is to offer unusual items as special mesh with
the food truck brand and even the food truck design. These unique outlook and fun
specials will help to draw attention to the food truck’s standard menu items.
CONCLUSION AND RECOMMENDATION
The purpose of this study is to identify the market potential for food trucks industry
in Malaysia. The study has identified three factors that influenced Malaysian selection on
food truck. The result of the research may have implication for the food truck owners with
a better understand on consumers’ motivations for buying from food truck. In addition, it
is hopeful that this study would be the catalyst for more studies in this area and the
recommendation given can be implemented by food truck business to increase
Malaysian satisfaction. Government ministries and industries association that are
responsible for the development of the food truck industry of the country should focus
their effort to educate the food truck on the strategy to increase their customers’
satisfaction. For example, government and association could provide details information
related to the consumers’ expectation through subsidized seminars specially designed
for food truck business in order to create a strong innovative culture in the industry.
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291
THE IMPACT OF ISLAMIC BANKING ON DEVELOPING ENTREPRENEURIAL

INCLINATIONS AMONG UNIVERSITY STUDENTS: A MEDIATING ROLE OF BUSINESS
SIMULATIONS
Muhammad Salman Shabbir

Post-Doctoral Fellow
University Utara Malaysia
salman.shabbir55@gmail.com
Mohd Noor Mohd Shariff*

Professor
College of Business
University Utara Malaysia
mdnoor@uum.edu.my
*corresponding author: mdnoor@uum.edu.my
ABSTRACT
Islamic Banking is rapidly growing and gaining importance through its commonly
recognized characteristics of zero interest loans and the sharing of profits, losses and risks.
There are few empirical studies, however, considered the impact of Islamic banking on
developing entrepreneurial activities, particularly in Malaysia. The present study examined
the impact of Islamic banking on developing entrepreneurial inclinations among students
studying entrepreneurship at Universiti Utara Malaysia. In order to assess the impact, a
survey was conducted and data were gathered through a self-administered questionnaire
on a sample of 187 students of bachelor’s degree at Universiti Utara Malaysia. Structural
equation modeling technique was employed to analyze the data using the Smart Partial
Least Squares (PLS-SEM) software 3.0. The findings reveal that Islamic banking had a
positive impact on developing entrepreneurial inclinations of students. Additionally, the
study found a significant positive mediating effect of business simulation as a pedagogical
technique on the relationship between Islamic banking and entrepreneurial inclinations
among students. In view of these findings, the study concludes with implications and
recommendations for both the university and Islamic banking industry.
Keywords: Entrepreneurial Inclination, Business Simulations, Islamic Banking, and Structural

Support
1. Introduction
Equal opportunity to earn income is an essential human right. Making a living with lawful
earnings is possible by working for others, becoming self-employed or employing others.
The process of employing others is an entrepreneurial activity(Zhou & Xu, 2012). A
religion that has a valuable point of view about work and well-being is more likely to
support the establishment of effective businesses and to help foster an entrepreneurial
environment. Islam, as a religion, does not discourage working for others, but it inculcates
and encourages a more entrepreneurial spirit (i.e., self-employment) to earn a living
(Hassan, 2013; Hassan & Hippler, 2014). Therefore, the positive effect of this Islamic
292
approach (i.e., entrepreneurial approach) would be tremendous if supported and

encouraged, structurally through financial institutions, by the government.
The significance of entrepreneurship has now been recognized worldwide including

Malaysia. Entrepreneurial activities are considered as an engine to create employment
oppertunities, especially among the young populatio in Malaysia (Rengiah & Ilham
Sentosa, 2015). Consequently, self-employement can help fresh graduates to grow
themselves by easing the current unemployment Milieu (Moberg et al.,
2014)Entrepreneurship was acknowledged by many researchers as a solution to the
problem of unemployed graduates (Kamariah et al. 2004; Salmah 2006). Universities
have now started offering formal entrepreneurship education at bachelors and masters
level. The objective if these programs are to provide practical experience through
organising seminars, conferences, virtual learning activities, business simulations games
and training for the students (Kobenhavan, 2010). Among several educational aids,
business simulations and games gain attention by teachers through providing theoretical-
research perspectives useful for entrepreneurship. These simulations perceived that more
involvement in business-related simulations increases a students’ inclination to be an
entrepreneur—which in turn, provides the base for flourishing entrepreneurial activity in
the society (Barišić & Prović, 2014; Keshodarah, 2013; Rengiah Assoc Ilham Sentosa,
2016; Sulaiman Mohammed Lame & Wan Fauziah Wan Yusoff, 2013; Wawer, Miloz,
Muryjas, & Rzemieniak, 2010).
Entrepreneurship is shaped by political, contextual and economic actors governed by

many factors in the economy (Gelard & Saleh, 2011).The participation and support of
stakeholders are vital to boost entrepreneurial activities in the economy (Obaji, 2014).
Stakeholders that can support the entrepreneurs include government, family of nascent
entrepreneurs, and financial institutions (Gelard & Saleh, 2011). To survive in that system,
entrepreneurs may identify opportunities and face theatres. For example, if there are some
attractive opportunities and favourable conditions are there in the market, entrepreneurs
will definitely be encouraged for entrepreneurship (Gelard & Saleh, 2011). According to
the study conducted by Farnk (2003), the perceived barriers and structural support from
financial institutionds are the factors that directly influence the entrepreneurial intents.
Likewise, availability of business resources and capabilities enable the nascent
entrepreneurs to start a business confidently (Obaji, 2014). Structural support from
financial institution like banks can assist nascent entrepreneurs to perform even at
international level (Shabbir, Shariff, Salman, & Shabbir, 2017; Shabbir, Shariff, &
Shahzad, 2016b, 2016a; Shabbir et al., 2016a; Shahzad, Shabbir, & Shariff, 2016).
In the last three decades, Islamic banking has emerged as a unique option of banking for
both Muslims and Non-Muslims by providing an easy solution to the start-up capital
challenge for small and medium enterprises (SMEs). Islamic banking is a system or
activity which obeys Islamic laws and Shariah principles followed by the Islamic
economics (Aburime & Alio, 2009). Consequently, in the current business world, Islamic
banking is known among investors and entrepreneurs for the following features:
providing zero-interest credits, sharing of profit and loss, possessing of goods,
participating in trading activities, leasing and construction agreements (Buksh, 2006).
Islamic banking, as a concept, has also gained worldwide popularity due to the significant
opportunities it offers, such as the diversification of the investor base and its ability to
attract and increase a country’s investment (Osman 2012; Ahmad, 2008). This
phenomenon was especially evident during the global economic meltdown (2006-2009)
293
when significantly higher compound annual growth rates were recorded in the Islamic
banking industry as compared to the traditional banking (Reuters, 2010). Also, the revival
of Islamic Economic System is now correspondingly demanded by Muslims who are one-
sixth of the world population (Memon, 2007) and projected to be around 2.6 billion, or
over 26%, of the world population by 2050. This means that one out of every four people
by the middle of the 21st century would be Muslim, aspiring to lead an economic life as
envisaged by Islam.
2.1 Islamic Banking
Even though the roots of Islamic Banking are in the Islamic economic system, it is not
limited to Muslims only as Islam seeks the welfare of the whole humanity (Memon, 2007).
Islamic banking refers to a system that follows Shariah principles of the Islamic law and
works under the direction of Islamic economics (Aburime & Alio, 2009). The major
difference between Islamic banking and conventional banking is that latter is interest-
based while the former is interest-free (Ariff, 1988). Therefore, Islam banking practices
interest-free loan activities, low consumer-loaning and profit-and-loss sharing. Under the
terms of Islamic profit-and-loss sharing, the connection between the borrower, investor
and intermediary is rooted in financial trust and partnership (Yudistira, 2004). Generally,
the role of Islamic banking institutions is to provide business financing products to
individual entrepreneurs for their businesses (Abdullah et al., 2016). The Islamic banking
institutions provide financial products through their Shariah-based dealings which
comprise of al- Wadiah, al-Mudharabah, al-Musharakah, al-Tawarruk, and al-Ijarah
(M.D. Awang, 2014). In line with the theory of planned behavior (Ajzen & Fishbein,
1991), which establishes that the subjective norm or supports from government and
financial institutions have an impact on entrepreneurial inclinations (Rengiah & Sentosa,
2016). In light of the above, this study assumes that the absence of conventional interest
and mode of Islamic banking stimulate entrepreneurial inclinations. Therefore, this study
suggests that:
H1: Structural support of Islamic banking has a positive effect on entrepreneurial
inclinations of the students taking a basic entrepreneurship course at Universiti Utara
Malaysia.
H2: Structural support of Islamic banking Islamic banking has a positive effect on
business simulations of the students taking a basic entrepreneurship course at Universiti
Utara Malaysia.
2.2 Business Simulations

The use of business simulations can be traced to the early 1960s (Kibbee, Craft, and
Nanus, 1961). Thavikulwat, (2009) described a business simulation as “an exercise
involving reality of function in an artificial environment, a case study but with the
participants inside” (p.34). Business simulations can help students to envision,
discover, and find coherent explanations for complex phenomena that otherwise
would be very difficult to observe, comprehend and manipulate (Noor, Shariff,
Shabbir, Shukri, & Bakar, 2018). The importance, impact and (experiential) learning
of business simulations is discussed extensively in the literature (Barišić & Prović,
2014; Garlis & Strazdiene, 2007; Ibrahim, Bakar, Asimiran, Mohamed, & Zakaria,
2015; Keshodarah, 2013; M Lorz, 2011; Rengiah & Sentosa, 2016; Sulaiman
Mohammed Lame & Wan Fauziah Wan Yusoff, 2013; Tawil, Hassan, Ramlee, & K-
Batcha, 2015; Tung, 2011; Version, 2017; Wawer, Miloz, Muryjas, & Rzemieniak,
2010). Rhude (2009) states that applying business simulations in learning and
294
teaching can help in the development of workplace competencies and also enhance
the skills and knowledge of the students. Therefore, this paper hypothesises that:
H3: Business simulations have a significant effect on entrepreneurial inclinations of the

students taking a basic entrepreneurship course at Universiti Utara Malaysia.
H3: Business simulation positively mediate the relationship between Islamic banking and
entrepreneurial inclinations of the students taking a basic entrepreneurship course at
Universiti Utara Malaysia.
2.3 Entrepreneurial Inclinations

Entrepreneurship has widely been recognized as an outcome of a thinking process
(Akuetteh, 2009; Busenitz, Gómez, & Spencer, 2014; Business & Master, 2012; Chen
& Greene, 1998; Development, 2008; Leitch & Harrison, 1999; Liñán, 2008; Lorz,
2011; Marques, 2010; Mitchelmore & Rowley, 2010; Phelan, Chris & Sharpley, 2014;
Sabir, Aidrus, & Bird, 2010; Volkmann et al., 2009; Zhou & Xu, 2012). Nevertheless,
the decision to be self-employed is quite complex (Ajzen, 1991; Kolvereid, 1999;
Shapero & Sokal, 1982). The decision to become an entrepreneur consists of
cognitive processes and careful planning, which is favourably intentional (Ajzen,
1991; Asad, Shabbir, Salman, Haider, & Ahmad, 2018; Shabbir, 2009, 2018).
Likewise, inclinations are a robust predictor of behaviour (Ajzen, 1991; Krueger,
1993; Kuratko, 2016) and also logical, especially when the behaviour is rare or
comprises of unpredictable time lags (Souetaris, 2007). Moreover, several studies
and theories on entrepreneurial inclination e.g., Theory of Planned Behavior (Ajzen,
1991) and Social Cognitive Theory (Bandura, 1977) have also confirmed its ability
to predict an individual’s future behaviour and recognise a planned intentional
Business
behaviour (Ajzen, 1991; Kuratko, 2016; Krueger, 1993).
Simulations
Games
Perceived Structural
Entrepreneurial
Support of Islamic
Inclinations
Banking
Figure.1 Conceptual Framework
Figure 1 shows the three hypothesised relationships in this study: Islamic banking
is the antecedent variable; business simulations is the mediating variable; and
entrepreneurial inclinations is the dependent variable.
3.1 Methodology
3.1 Sample and Data Collection
This study followed a quantitative methodology and adopted a survey research design,
which is a method to assess thoughts, feelings, and views about a given situation by
collecting primary data from the respondents (Fisher, 2010). The degree students at
University Utara Malaysia were the targeted population of this study. About 350 students
were presented and explained the simulations process as a virtual learning process for
entrepreneurship education. A total of 187 questionnaires were returned making the
response rate of 74.80%; however, out of the returned questionnaires, only 178
questionnaires were used for further analysis making a valid response rate of 71.20%.
This method was used because out of the 187 questionnaires collected, nine
295
questionnaires were identified as incorrectly filled and thus excluded from further
analysis.
3.2 Questionnaire Design
The study was conducted by using a questionnaire form in two languages (i.e., Malay and
Mandarin Chinese) to reflect the multilingual society in Malaysia. Research scales were
operationalized on the basis of preceding work. Proper modifications were made to fit the
current research context and purpose. Islamic banking was measured using 8 items
adapted from Aburime and Alio (2009) and Buksh (2006). Entrepreneurial inclinations
were measured by 15 intention measures adapted from Linan and Chen (2009). Lastly,
the business simulations was measured using 18 items adapted from Sorensen (2010).
4. Data Analysis and Results
A structural equation modelling (SEM) technique utilising Smart Partial Least Squares
(PLS-SEM) statistical software was used to test the hypothesised relationships between
Islamic banking, business simulations, and entrepreneurial inclinations.
4.1 Measurement Model
This study primarily employed the composite reliability and Cronbach’s Alpha values to
measure construct measurement reliability. Furthermore, convergent validity was
assessed using items with loadings of more than 0.5 on their respective constructs
(Chinomona, 2013). Discriminant validity was measured using the average variance
extracted (AVE) values and ensuring that there were no significant inter-research variable
cross-loadings (Chin, 1998). This study also performed a confirmatory factor analysis
(CFA) and estimated the structural equation model (SEM) using Smart PLS data analysis
software.
Table.1 Accuracy Analysis Statistics
Cronbach's Composite Average Variance
Alpha Reliability Extracted (AVE)
Islamic Banking 0.82 0.86 0.57
Business Simulations 0.82 0.85 0. 62
Ent. Inclinations 0.84 0.85 0.56
4.2 Structural Model

A systematic model analysis of the structural model was employed to offer a
comprehensive view of the results and to test the Hypotheses from 1 to 4 comprehensively.
296
Figure.1 Measurement and Structural Model Results
Figure.2 Graphical representation of path coefficient
Based on the PLS-SEM algorithm and bootstrapping procedure as mentioned above,

Figure 4.1 shows the path coefficient of the independent variables and the dependent
variable. The result reveals that all the exogenous variables have a positive coefficient
with the endogenous variable. With respect to H1, the results support a significant effect
297
of Islamic banking on business simulation (β0. 3; t=2.70; p> 0.00); so, H1 is accepted.
However, the H2 suggests a significant effect of Islamic banking on entrepreneurial
inclination, whereas results fail to provide support of this hypothesised relationship (β
0.09; t=0.13; p> 0.89); therefore, H2 is rejected. On the other hand, H3 assumes that there
is a positive effect of business simulation on entrepreneurial inclination; the results
provide evidence of a significantly positive effect of business simulation on
entrepreneurial inclinations (β.8; t=6.62; p< 0.00); therefore, H3 is accepted. H4 suggests
that business simulations positively mediate the relationship between Islamic banking and
entrepreneurial inclinations; the result also provides evidence of this relationship (β.3;
t=2.43; p> 0.02); accordingly, H4 is also accepted.
Table 2 Results of Hypotheses Testing (Direct Relationships)
Path Standard Error
Hypothesized Path T Value P Value Decision
coefficient (STERR)
H1 IB -> BS 0.34 0.11 2.70 0.00 Supported
H2 IB -> Ent-Int 0.09 0.21 0.13 0.89 Supported
H3 BS -> Ent-Int 0.87 0.12 6.62 0.00 Supported
H4 ATM -> BS-> EI-INT 0.30 0.10 2.34 0.02 Supported
As shown in Table 2 and Figure 1, H1, H3, and H4 are supported, whereas H2 is not
supported.
5. Conclusions and Recommendations
Thirdly, H3 was about the relationship of business simulation and entrepreneurial

inclinations of the students taking a basic entrepreneurship course at Universiti
Utara Malaysia. Similarly, the results confirm a significantly positive relationship
between business simulation and entrepreneurial inclinations of the students taking
a basic entrepreneurship course at Universiti Utara Malaysia. Business simulations
have been recognized as active methods of teaching and learning; their value lie in
their ability to provide virtual environments for realistic operations to train
managers in corporate decision-making. (Barišić & Prović, 2014). The results agree
with studies which have been published to determine effectiveness of business
simulations at helping students achieve learning objectives (Greenlaw & Wyman,
1973; Keys, 1976; Gentry, McBain & Burns, 1979, Wolfe, 1985; Miles, Biggs &
Schubert, 1986, Gartner, 1993Malik & Howard, 1996, Anderson & Lawton, 1997). In
terms of pedagogical value, business simulations significantly contribute to the
development of decision making (Wellington and Faria, 1991). Based on the findings
of this paper, it is, therefore, recommended that more business simulation activities
increase the inclinations of a person to be an entrepreneur, which in turn, provide the base
for flourishing entrepreneurial activity in the society. In addition, it is suggested that
Malaysian higher education institutions should facilitate students by providing them
learning-by-doing opportunities and help them foster an environment of entrepreneurial
spirit.
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The Impact of Entrepreneurial Orientation (EO) on the Graduate Student’s

Business Performance
Mohd nizam Sarkawi; Jauriyah Shamsuddin; Noor Fareen Abdul Rahim;

Nuraishani Baharom
Abstract
This study objectively plan to address the needs for research on the relationship between
Entrepreneurial Orientation (EO) and Student’s Business Performance of Malaysian Universities.
It has been argued that EO may contribute to the positive development and improve resilience
among entrepreneurs and the organizations. A theoretical model based on the Resource-Based
View approach to business performance of Malaysian Public Universities Students was argued to
answer the research questions and five hypotheses have been developed for each components of
Entrepreneurial Orientation (EO) which were: (H1) Innovativeness, (H2) Proactive, (H3) Risk-
taking, (H4) Competitive Aggressiveness and (H5) Autonomy and Student’s Business
Performance. A quantitative survey method was employed in the study, and the questionnaires
were used to obtain the data from the owner of the randomly selected graduate student’s
businesses from public universities located in Perlis, Kedah and Penang. A total of usable 130
usable questionnaires was obtained from the survey, giving a response rate of 62.3%. Data were
analyzed using a PLS path modelling technique to test the reliability, validity of the instruments
on selected samples and path-coefficient relationship. The finding indicates the supported
relationship between competitive aggressiveness and proactive orientation with their business
performance. The findings offered several implications on the entrepreneurship education and
development sector plus other stakeholder in the quest to improve our Malaysian student’s
business competitiveness and performance particularly in Public Universities.
Keywords:
Entrepreneurial Orientation, Malaysian Student’s Business Performance, Northern Region
1. Introduction
This research is all about the relationship between entrepreneurial orientation and
Malaysian Students’ Business Performance. It has been claimed that students who embarked into
running their own business may contribute to the job creator rather than job seeker as inspired in
the new higher education blueprint 2015-2025 (MOHE, 2016). Creative and innovative graduates
with entrepreneurial mind-set and actions may contribute to the progressive career development
and improve resilience to both the graduates and the organization in which the graduates ventured
into.
This paper is focusing on two basic concepts: the performance of Malaysian University
Students’ business Performance as endogenous variable and EO which comprise of
Innovativeness, risk-taking, proactive, competitive aggressiveness and autonomy as the
components for the exogenous variable. The objective of the study is to investigate the
relationship between entrepreneurial orientation and Malaysian University students’ business
performance.
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This section will elaborate more regarding the variables selected and previous study
arguments on the relationship between both variables. Which are Student’s business performance
which acts as the endogenous or dependent variable (DV) and entrepreneurial orientation used as
the important factor for the causal (IV) or exogenous variable for this study as suggested by Jaaffar,
A.R., Baharom, N., Ahmad Zaini, A.F., & Ahmeed, S. (2018); Badariah, Abdul Rahim and
Mariana, (2016) & Renggiah & Sentosa (2016).
2.1 Student’s Business Performance

Performance could be defined in various ways. The current study defines students’
performance as productivity and profitability as suggested by (Crossan & Appadin, 2010; Jaaffar
et al., (2017; 2016); Mohd Juri & Idris, 2008; Santos & Brito, 2012; Subrahmanya, 2011). Too
many terms have been used by various researchers, authors and academicians, and literature
indicates various issues in relation to business performance that have been mentioned in numerous
studies. Firstly, the researcher defines firm performance as follows:
Malaysian university has been categorized under public and private university (Badariah, et
al. 2016 ; Renggiah, 2016). For the purpose of this study, the researcher used performance as a
term to indicate the performance of student’s business who managed their own business and
defined as the degree to which the enterprise meets the owner’s expectations in terms of sales,
profitability and overall performance (Calogherou, Kastelli, & Tsakanikas, 2004; Crossan &
Appadin, 2010). Past studies have empirically tested firm performance measurement model
subjectively. Many studies have used a survey method to collect data from top and middle
management. Crossan and Appadin, (2010) and Santos & Brito, (2012) suggested growth,
profitability, employee and customer satisfaction, social and environmental performance as the
first-order dimensions. Since stakeholders have different requirements and results suggest that all
dimensions of the financial model cannot be used successively because they represent different
aspects of firm performance, they need to be individually managed or justified based on respective
study requirement (Abu Bakar & Ahmad, 2010). Within the context of this study, Malaysian
university students’ business performance is defined as the degree to which the student’s
enterprise meets the owner-manager’s expectations in terms of sales, profitability and overall
performance (Abdul Aziz, Mahmood, Abdullah & Tajudin, 2013; Santos & Britos, 2012; Sarkawi,
Jaaffar, Shamsuddin, & Abdul Rahim,2016).
2.2 Entrepreneurial Orientation (EO)

Entrepreneurial Orientation (EO) means at firm level, firms display risk-taking behavior
illustrated by large resource commentates to high-risk and high-return business. While proactive
means firm’s approach to market opportunities and forward-looking perspective; innovativeness
of a firm (Wiklund & Sheperd, 2003; Jaaffar, ,Sharif2014) are closely related to business
expansion, technological process, wealth creation and having the predisposition to undertake
risky ventures (Lumpkin & Dess, 1996). The fourth components of EO is competitive
aggressiveness means how firms respond to competitive trends and demands (Lumpkin & Dess,
1996) and Autonomy suggested by Jaaffar et al., (2018;2014) and Abdul Rahim et. al., (2017) as
organizational units with decentralized and densely connected social relations are able to act
ambidextrously and pursue exploratory and exploitative innovation simultaneously. EO is
normally related and refers to small and medium-sized firms (Runyan, Droge & Swinney, 2008).
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This study suggests all dimensions (Lumpkin & Dess;1996; Sarkawi, et al., 2016) of EO as
follows:
1. Innovativeness
2. Risk-taking
3. Proactive
4. Competitive aggressiveness
5. Autonomy.
A few studies have positively correlated EO with firm performance. The alignment of EO is
crucial for small businesses due to their limited resource based.(Wiklund & Sheperd, 2003;
Lumpkin & Dess, 1996). Runyan & Drodge, (2008) conducted a case study on three companies
which experienced growth within five years of existence. The study reveals that entrepreneurship
and growth are linked. The current study suggests that students which experience growth promote
an EO throughout their business (Badariah., et al., 2016).
Secondly, literature indicates that currently, there is still a lack of empirical studies that
integrate entrepreneurial orientation or activities with innovation practices as suggested by
Zimmerer, Wilson and Scarborough (2009) and Jaaffar, Sharif & Baharom (2014). Such a study
is crucial in order to counter the resource constraints faced by SMEs (Law, 2012; Soon & Zainol,
2011). Thirdly, past studies have argued that a study on the Entrepreneurial Orientation (EO) is
crucial for strengthening the link with firm performance. In terms of population and sampling for
similar subjects and perspectives, there were still a lack of empirical research that focuses on
graduate student who involved in running businesses while they still studying in Malaysia
(Badariah, et al., 2016; Renggiah, 2016).
To conclude, the above issues have indicated that past studies on the relationship between
student’s business performance and EO are limited in scope as well as lacking in focus. These
limitations suggest that there was still a need to conduct more empirical research on the above
perspectives. To be specific, the researcher attempts to investigate the impact of EO on student’s
business performance in Malaysian Universities. This objective of this research used to answer
the following questions:
Is there any significant relationship between Entrepreneurial Orientation (Innovativeness,

Proactive, Risk-taking, Competitive Aggressiveness, Autonomy and Student’s Business
Performance?
This section already analyzed the prolonged issue of the possibility of EO components in
improving the performance of the Malaysian Student’s business performance. Thus, the research
hypotheses and the methodology followed are described in the next section, including the sample
and the variables used. The fourth section presents the results of the empirical study, while the
final two section offer the most important of the research limitations, recommendation and the
conclusion of the research.
3. Research Methodology
In this section, before testing the hypotheses, we ran a data cleaning analysis by using SPSS
version 22, secondly measurement model PLS Algorithm analysis was used in measuring the
model. In the sample firms (SME performance, Innovation practices and EO). The variables used
to form the factors were obtained from 10 points Likert scale type questions in a questionnaire
sent to the top management team (TMT) of the sample firms as suggested by Zainuddin
(2016).The present study employed PLS path modelling (Hair, Hult, Ringle & Sarstedt, 2016;
Henseler & Fassot, 2010) using Smart PLS 3.2.7 M3 software to test the theoretical model. This
study is exploratory in nature and with low sample size collected from the survey conducted, as
a result the variance-based SEM is more suitable compared to CB-SEM (Hair et al., 2016).
303
The present study has applied the standard bootstrapping procedure with 5000 samples on the
130 reliable cases to assess significance of the path coefficients. Results shown in Figure 2 and
Table 3 explains all the path coefficient examined from the analysis.
4. Findings
For this study, to satisfy the basic requirement that is guiding discriminant validity, the
average variance extracted AVE of any two constructs that is measured must be greater than the
square of correlations that exist between these constructs (Formell Larcker, 1981). The formula
for calculating the Variance Extracted (VE/AVE), (Kearns & Lederer, 2003) is Variance
Extracted (VE) = (R2 +j )Where = R squared, = summation and j = standardized error. Table 1
summarized the calculation of the variance extracted (VE/AVE) through the standard error (S.E).
No items had been deleted due to low loading during the measurement model analysis (items
loading < 0.6) (Hair, 2013). As indicated in Table 1, the values of the variance extracted show the
amount of variances that each construct can explain in the research framework. In this current
study, these values range from 0.643 to 0.899 as calculated through the standard error of variance
(SE).
The result in Table 1 shows that the average variance extracted for all the six (6) constructs
were greater than 0.5, as suggested by Hair et al., (2016). The values for SE and discriminant
validity were demonstrated, as the square root of AVE value was more than the squared
correlations for each set of constructs, as shown in Table 2. Moreover, it can be observed that the
square root of the AVE for a given construct was greater than the absolute values of the
standardized correlation square of the given construct with any other construct in the analysis
(AVE > correlation square). Thus, discriminant validity is supported and therefore all constructs
used for this study support discriminant validity. In table 2, the average variance extracted (AVE)
refers to the proportion of variance explained by the measurement errors. Values range from 0 to
1, AVE should exceed 0.5 to suggest an adequate convergent validity (Fornell & Larcker, 1981).
An AVE value of at least 0.5 indicates sufficient convergent validity, meaning that a latent
variable was able to explain more than half of the variance of its indicators on average (Holmes-
Smith, 2007). In other words, AVE is computed as the total of all squared standardized factor
loadings (square multiple correlation) divided by the number of items, meaning that it is the
average squared completely standardized factor loading or average commonality. Figure 1 and
Table 1 below shows the Reliability and validity of the instruments applied and the 𝑹𝟐 of the
variables used.
304
Figure 1. Result of PLS Algorithm in validating the instruments.
Table 1
Summary of Cronbach Alpha, AVE, Composite Reliability and 𝑅 2
Latent Cronbach Composite AVE 𝑅2

Alpha
Construct Reliability
Autonomy 0.860 0.912 0.775
Business Performance 0.920 0.935 0.643
Competitive Aggres. 0.944 0.964 0.899 0.523
Innovativeness 0.927 0.953 0.872
Proactive 0.815 0.891 0.731
0.899 0.929 0.766
Risk-taking
305
Table 2
Table of the correlation matrix of latent variables
Latent AUTO BP CA INNO PRO RT
Construct
Autonomy 1.000
Business Performance 0.449 1.00
Competitive Aggres 0.552 0.662 1.00
Innovativeness 0.639 0.492 0.736 1.00
Proactive 0.671 0.693 0.810 0.793 1.00
0.781 0.587 0.733 0.595 0.757 1.00
Risk-taking
Figure 2. Structural Model with Path Coefficient.
306
4.1 Results of Hypotheses Testing
Table 3 Structural Model Assessment with Moderator
Hyp Original Sample(O) Beta Standad T-Value P-Value Result
(β) Error(SE)
H1 Autonomy -> BP -0.035 0.117 0.298 0.766 Not

Supported
-
H2 Competitive Aggresssiveness -> 0.319 0.125 2.549 0.011 Supported
Business Performance
H3 Innovativeness -> BP -0.156 0.097 1.603 0.110 Not

Supported
H4 Proactive -> BP 0.509 0.139 3.663 0.000 Supported
H5 Risktaking -> BP 0.089 0.148 0.599 0.549 Not

Supported
T-Value > 1.96 or T-Value >1.65 for two-tailed p>0.1.
Results of the hypothesis 2 and 4 were positively and supported the prediction to student’s
business performance. As shown in Table 3 and Figure 2, the result indicates a significantly
positive relationship when all the T-Value were more than 1.96 and P-Value Less than 0.05 with
H2, T=2.549 and P=0.011 , H4 , T=3.663 and P=0.000). In Contrary, results for the hypothesis
1.3 and 5 were unsupported due to the T-Value were less than threshold value of 1.96 or minimum
of T-Value of 1.65 for two-tailed analysis and P-Value <0.1 still considered significant.
The structural model and Beta PLS is used to estimate the structural equations with the aid of
the Smart PLS software (Hair et al., 2016; Henseler, 2013), which allows standardized Beta
regression coefficients called “path coefficients” to be obtained. These coefficients test whether
the proposed hypotheses is supported or not. R square (𝑹𝟐 )values measure the amount (0.523) of
variance of the construct that is explained by the model.
The R2 of the latent variable to be explained, firm performance, is 0.523. The current study
shows the standardized path coefficients (these are also on the lines connecting the constructs in
Fig. 2) and the firms’ t values (obtained with a bootstrapping procedure with 5000 samples). Out
of the five path coefficients of the model, five corresponded to the hypotheses H2 and H4 were
307
already mentioned, while the other three hypotheses do not correspondence to firm performance.
The results indicated that the contributing variable was sufficient in explaining the suggested
framework for student’s business performance in Malaysian public universities.
5. Conclusion
The result of this study suggests that students which involved as a start-up or a beginner
should focus in nurturing the competitive aggressiveness and proactive orientation while running
their business in campus. The graduate students who plan to venture or currently running their
own business must also proactive and aggressive in reaching out their prospects., The findings
also indicated that risk-taking, autonomy and innovative orientation are not suitable for students
who currently operating their business while studying. This may be due to various factors such as
the operation as a part-timer, limited marketing channel, limited capital, lack of experience and
uncertainty in market demand. The findings of this study should be conveyed to various parties
related within the student’s business ecosystem such like policy maker, entrepreneurship
development internal or external entity and also their educator.
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309
ROLE OF SOCIAL NETWORK, ENTREPRENEURIAL ALERTNESS AND

CREATIVITY ON ENTREPRENEURIAL OPPORTUNITY RECOGNITION
Norria Zakaria, Norashidah Hashim, Mohamad Zaki Ahmad
norria@uum.edu.my, norashidah@uum.edu.my; zaki.ahmad@uum.edu.my

School of Business Management, Universiti Utara Malaysia, Malaysia.
ABSTRACT
The importance of entrepreneurship as a prime source of innovation and economic development
is undeniable. The heightened interest in entrepreneurship is prompted by several factors
including new venture formation, new innovations, curbing unemployment problems, increasing
the gross domestic product (GDP) and social adjustment. Therefore, one of the way to enhance
the opportunity and remain entrepreneurship as one source of income to the nation is the
continuous recognition of opportunity by the entrepreneur. Hence, explaining the discovery and
development of opportunities per se is a key part of entrepreneurship research. This paper builds
on the existing theoretical background of opportunity recognition and aimed at investigating the
role of entrepreneur’s social network, entrepreneurial alertness and creativity that would help
entrepreneurs recognize opportunity.
Keywords: Opportunity Recognition, Social Network, Entrepreneurial Alertness, Creativity,

Bumiputera Entrepreneur
INTRODUCTION
The development of entrepreneurship has been growing in importance and

become the central contributor to economic growth in many developing countries when
it helps those with low income improve their standard of living and now become as one
of the agendas for development (Norziani, Mastura, & Siti Asma, 2015). Schorr (2008)
even stated that entrepreneurship is not only an important developmental factor but also
the economic driver because with every occurrence of economic downturn, it is the
entrepreneurial determination and perseverance that balance the economy. Similarly,
the development of entrepreneurship, has been growing in importance in Malaysia. This
is proven successful following the government’s initiative to help increase the standard
of living for the bottom 40 percent households (which constituted 73 percent of
Bumiputera low income households group) through education and entrepreneurship
(Mohd Nor Hakimin & Mohd Rafi, 2010). As a result, majority of rural households choose
self-employment as their main source of income which led to a declining pattern of
hardcore poverty from 1.2 percent in 2004 to 0.7 percent in 2009 (Ninth Malaysia Plan,
2006-2010). This is in line with Musdiana and Noor Zahirah (2011), that rural
entrepreneurship, particularly micro business, plays a significant role in most economies
and the government give serious attention to developing rural entrepreneurship for the
young generation as it provide training platform for potential entrepreneurs. As a result,
several initiatives were crafted to provide holistic support programmes and opportunities
for business ownership of capable rural Bumiputera entrepreneurs to elevate their quality
of life through self-employment (Ninth Malaysian Plan, 2006-2010).
In Malaysia, the issue relating to Bumiputera Entrepreneurship is not a new

occurrence. In fact, the Bumiputeras being left far behind in terms of being successful in
economic development is something that people has long been aware of (Che Omar &
Mohd Noor Azmi, 2015). This view is supported by Suhaila and Mohd Rosli (2011) whom
310
stated that Bumiputera’s business achievement is far below the target despite the rising
number of the entrepreneurs being involved in business.
As such, even though there are various strategic initiatives and programmes that
the Malaysian government has implemented in order to support its people especially the
Bumiputera into becoming successful entrepreneurs, the results has still not shown
anything to be proud of. The growth of Bumiputera entrepreneurial activity has not been
in tandem with the pace of the overall development of the nation (Firdaus, Jamil, Abdul
Rahman, Saban, & Abdurahman, 2009). Obviously, most of them are still facing the
same problems and unable to succeed as what have been achieved by the Chinese
(Rahmah & Noorasiah, 2007). Interestingly, even though the number of Bumiputera
enterprises has dramatically increased, their involvement is still limited to certain types
of activities that are associated with low productivity (Rahmah & Noorasiah, 2007).
Scholars have argued that this might be due to the “dependency” mentality that
has been ingrained in the Malaysian community in particular with the Bumiputera who
are overly reliant on government support or assistance. In contrast, the Chinese
community who perhaps do not have as many government aided programmes are more
likely to act progressively and proactively to succeed in entrepreneurial ventures (Fakhrul
Anwar & Wan Norhayate, 2011). Bumiputera start-ups are focused on sub-sectors and
engaged in activities that are relatively low value added and under-represented in
knowledge intensive and higher value-added segments (Tenth Malaysia Plan, (2011-
2015)). It has been more than 30 years since the implementation of NEP, yet the
achievement by majority of Malay (Bumiputera) entrepreneurs is unsatisfactory (Rahmah
& Noorasiah, 2007).
Among the causes that contribute to the failure of Bumiputera businesses is

failure to recognize opportunities. Norasmah, Halimah, Zaidatol Akmaliah and Noraishah
(2006); Salmah, Norasmah and Noraishah (2007) and Azimi, Zamre, Ahmad Dahari,
Basri and Zaidi (2009) found that university students and graduates still have low
inclination towards pursuing a career in entrepreneurship. They are not able to identify,
seize and exploit business opportunities and entrepreneurship that have been offered by
the government. Similar to what has been stated in Utusan Malaysia, titled “Melayu perlu
bijak rebut peluang perniagaan”, dated November 3, 2008, that Bumiputera
entrepreneurs must know how to seek opportunities in order to change their mentality
towards developing the economic standard of the Malay community which becomes the
government objectives that has not yet been achieved. Rahim, Mohtar, and Ramli (2015)
also suggested that Bumiputera SMEs need to realize their full potential and seize any
opportunities to upgrade themselves in order to improve their performance and become
more competitive. Following the above matter, opportunity recognition has become the
focus of this study.
LITERATURE REVIEW
Opportunity recognition is made even more relevant when Stevenson et al. (1985)
claimed that one of the most important goals for successful entrepreneurs is identifying
the right opportunities for new businesses. Shane and Venkataraman (2000) even
argued that the entrepreneurship field should cover the nexus of two phenomena; the
presence of lucrative opportunities and the presence of enterprising individuals.
Therefore, identifying and selecting the right opportunities for new businesses can be
regarded among the most significant abilities of successful entrepreneur (Ardichvili,
Cardozo and Ray, 2003) and thus is a prominent element in the scholarly study of
entrepreneurship. Venkataraman (1997), also stated that one key part of
entrepreneurship research is the discovery and development of opportunities. The
following section reviews the empirical study on the relationship between social network,
entrepreneurial alertness, creativity and entrepreneurial opportunity recognition.
311
The relationship between social network and entrepreneurial opportunity

recognition
There is a considerable body of research on displaying the association or relationship

between social network and entrepreneurial opportunity recognition. Wang, Ellinger and
Jim Wu (2013) showed that an individual’s social networks can not only have positive
effects on entrepreneurial opportunity recognition, but is also one of most important
predictors of entrepreneurship opportunity recognition. St Jean (2011) also found that
social networking through mentor relationship is a positive and significant influence on a
novice entrepreneur’s ability to recognise opportunities. Kontinen and Ojala, (2011) also
discovered that network ties is important on opportunity recognition especially in
international dealings where SMEs that are lacking in strong network ties tend to
recognise opportunities through weak ties formed in international exhibitions. A similar
study by Kinghorn (2008) also found that weak forms of individual social capital are
positively associated with entrepreneurial recognition. Based on the discussion above, it
can be said that social network will be positively associated with opportunity recognition.
Thus, the hypothesis below is formulated:
H1: There is a relationship between social network and entrepreneurial opportunity

recognition
The relationship between entrepreneurial alertness and entrepreneurial

opportunity recognition
Alertness termed as “an individual’s ability to identify opportunities that have been
overlooked by others” (Israel Kirzner, 1973,1979). Ray and Cardozo (1996) equate
entrepreneurial alertness to the tendency of an individual to notice and be sensitive to
information about objects, incidents, and patterns of behaviour in the environment, with
special sensitivity to maker and user problems, unmet needs and interests, and novel
combinations of resources. Ali & Mohammadreza (2016), on the other hand coined
entrepreneurial alertness as cognitive properties or a conscious search behaviour, which
later increases the individual’s awareness of its surroundings and access to information,
and consequently lead to more opportunities.
Ardichvili et al. (2003) regard entrepreneurial alertness as one of the key factors in
recognizing opportunities. Even Puhakka (2011) highlighted the positive role of
entrepreneurial alertness in recognizing business opportunities. Liu and Miao (2010) also
found that entrepreneurial alertness as an individual psychological factor which
significantly related to opportunity recognition. Many researchers have studied the role
of entrepreneurial alertness in the process of opportunity recognition (e.g. Tang, Kacmar,
& Busenitz, 2012; Liu & Miao (2010); Santos-Alvarez & Garcia-Merino, 2010; Baron,
2006) and have indicated that entrepreneurial alertness has a positive relationship with
entrepreneurial opportunity recognition.
Santos-Alvarez and Garcia-Merino (2010), also mentioned that entrepreneurial alertness

is a prominent cognitive property that enables entrepreneurs to capitalize an opportunity.
Tang, Kacmar and Busenitz (2010; 2012) also agreed that entrepreneurial alertness is
important to entrepreneurial opportunity recognition. Accordingly, hypothesis 2 is
postulated:
H2: There is a relationship between entrepreneurial alertness and entrepreneurial

opportunity recognition
312
The relationship between creativity and opportunity recognition
Entrepreneurial opportunity recognition can also be identified through cognitive property

owned by an individual which is creativity. Shane and Nicolaou (2014) claimed that
people with creative personalities are more likely than others to identify business
opportunities and to start businesses. Kinghorn (2008), hypothesized that creativity
comes in two forms which are: 1) preference of doing things differently; and 2) preference
of doing things better. Results support that doing things differently increases the odds of
entrepreneurial recognition and while the same results did not support doing things better
to increase the odds of entrepreneurial recognition, the study still concluded that
creativity has a positive relationship with entrepreneurial recognition. Meanwhile,
Puhakka (2005) explores the role of intellectual capital in opportunity recognition of
entrepreneurs and the findings indicated a significant positive relationship between
creativity and competitive scanning. This implies that creativity can assists in better
understanding the competitive arena and enables entrepreneurs to see clues that others
are not able to. In addition, creativity has also been said to significantly enhance
proactive searching and innovative behaviour as well. Since competitive scanning,
proactive searching, and innovative behaviour are elements in opportunity recognition,
then creativity can be said to be positively related to opportunity recognition. Following
this, hypothesis is postulated:
H3: There is a relationship between creativity and entrepreneurial opportunity

recognition.
In order to obtain a primary data for the purpose of hypotheses testing, a survey method
was employed. This in line with the objectives of the study which was to examine the
influence of social network, entrepreneurial alertness, and creativity on entrepreneurial
opportunity recognition.
Population and Sampling
The respondents (unit of analysis) for this study were the individual entrepreneurs who
were the founders and co-founders of the business. The population of this study were
the Bumiputera entrepreneurs registered with SME Corp Malaysia. However, the
population is limited to only five (5) states in Peninsular Malaysia. A survey was
conducted among Bumiputera entrepreneur to obtain data on the variables. A total of
500 questionnaires were distributed. 232 questionnaires were returned, yielding a
response rate of 46%.
Measurement
To increase the validity and reliability of the results of this study, all the items have been
adopted and adapted from previously validated studies (Straub, 1989), and any changes
required to fit the instruments to the current sample context were appropriately performed.
Several items have been refined and selected for use in the principal study after the
questionnaire has been extensively pretested and modified before being released to a
convenience sample of pilot study. A total of four (4) different constructs were used in
this study whereby the items used for all these constructs would help the researcher to
address the research questions as they are designed. Most of the scales used in this
study have been previously validated in opportunity recognition studies. Each construct
contains multiple items, all of which has a five-point Likert scale that ranged from
“strongly disagree” to “strongly agree” to indicate the respondent’s level of agreement
and disagreement toward the given statement.
313
Reliability
The Cronbach’s α have been used to assess the reliability of the measures in the
questionnaire. The results show that a Cronbach’s Alpha coefficient of .80 and higher
were found on the variables of the study. As shown in Table 2, all the measures were
reliable, as the Cronbach’s Alphas exceed 0.70 (Nunnally, 1978), thus suggesting the
constructs under study were having a good level of internal consistency.
Table 2
Cronbach’s Alpha Value
Variable Items Cronbach’s Number of
Alpha Value Items
Social Network .880 17
Creativity .905 16
Entrepreneurial Alertness .884 17
Entrepreneurial Opportunity Recognition .909 16
DATA ANALYSIS
The data was examined using SPSS. For the purpose of the study, both descriptive and
inferential statistics were used. Descriptive analysis was used to present the statistical
data related to the demographic background of the respondents whilst regression
analysis was undertaken to investigate the relationships between social network,
entrepreneurial alertness and creativity on entrepreneurial opportunity recognition and
to determine which factors (social network, entrepreneurial alertness, and creativity) has
the most significant influence on entrepreneurial opportunity recognition.
FINDINGS AND RESULTS
Respondents Analysis
Analysis on respondent’s position indicated that most of the respondents are the owners
or co-owners of the business. Only 20 percent of the respondents are managers.
Analysis on age distribution of the sample showed that the majority of the respondent’s
ages range from 40-49 years old (31 percent). In terms of gender, it was evident that
there is almost an even split between male and female respondents (52 and 49 percent),
respectively. The majority of the respondents are married. In terms of education level,
most of the Bumiputera entrepreneurs in general have secondary level of education-
SPM/MCE (37 percent).
Regression Analysis
In order to figure out of how well a set of variables is able to predict a particular outcome,
a regression analysis was performed in Table 4. Based on the results presented below,
it was revealed that the regression equation with the entire predictions is significant; R
= .767, R² = .588, adjusted R² = .582, F = 94.24, p<.001 indicating that multiple
correlation coefficient between the predictors and criterion variables was .76; and this
model explains 58.8% of the variance in entrepreneurial opportunity recognition. The F-
test revealed that the relationship between the dependent and the independent variables
was linear with the model significantly predicted the dependent variable except for the
social network variable. Out of the three predictors, entrepreneurial alertness (β=.45,
t=6.924, p=.00) registered the greatest and the most significant standardized beta
314
coefficient. Followed by creativity (β = .33, t = 5.00, p = .00). However, it was discovered

that social network (β = .09, t = 1.640, p = .103) is not significant.
Table 4
Summary of Multiple Regression Analysis for Social Network, Creativity,
Entrepreneurial Alertness and Entrepreneurial Opportunity Recognition
Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
(Constant) .422 .224 1.881 .061
Social Network .095 .058 .092 1.640 .103
Creativity .333 .067 .327 5.004 .000
Ent.Alertness .470 .068 .446 6.924 .000
R square .588
Adjusted R square .582
Sig. F Change .000
Durbin Watson 1.758
F value
Level of Significance: **p<0.01, *p<0.05
The findings of the study reveal that only two hypotheses are supported, where a
significant positive relationship is apparent between two factors with entrepreneurial
opportunity recognition. H2 posited that there is a relationship between entrepreneurial
alertness and entrepreneurial opportunity recognition. The empirical findings of this study
are consistent with previous studies (e.g. Tang, Kacmar, & Busenitz, 2012; Liu & Miao,
2010; Santos-Alvarez & Garcia-Merino, 2010; Craig & Johnson, 2006; Orwa, 2003)
which found that there is a positive relationship between entrepreneurial alertness and
entrepreneurial opportunity recognition. Thus, H2 is supported. According to Valliere
(2013) entrepreneurial alertness is a relevant factor in the study of entrepreneurial
opportunity recognition because of the assumption that alertness to opportunity is a
critical first step in the entrepreneurial process. This is due to the fact that alertness is
said to be essential in not only producing more entrepreneurs but also in enabling
entrepreneurs to be more successful in spotting and exploiting the most promising
economic opportunities. Even so there is an empirical evidence suggesting that alertness
is positively related to a firm’s innovativeness (Tang et al. 2012). This study therefore
highlights the importance of SME business owners possessing entrepreneurial alertness
skills in order to enhance their business performance. To sum up, the finding implies that
entrepreneurial alertness is required in order for SMEs, in the context of Bumiputera and
Malaysia in general, to recognise more opportunities and be more competitive.
The findings from multiple regression analysis show that there is a positive significant
relationship between creativity and entrepreneurial opportunity recognition. Empirically,
315
the findings are parallel with previous studies (e.g. Shane & Nicolaou, 2014; Kinghorn,
2008; Puhakka, 2005; Orwa, 2003) which indicated that creativity has a positive
relationship with entrepreneurial opportunity recognition. A number of authors have
expounded on the importance of creativity to the study of entrepreneurial opportunity and
described the opportunity recognition process as either being influenced by creativity or
more specifically as a creative process in-and-of itself (Ardichvili et al., 2003; Baron, 2008;
Corbett, 2005; DeTienne & Chandler, 2007; Long & McMullan, 1984). In fact, most of the
organizations in China for instance, have asserted creativity is necessary especially in
the competing environment of technology, where a creative leader becomes increasingly
important in encouraging employee and team creativity (Liqun, Mingjian & Qiang, 2017).
Thus, H3 is supported.
Contrary to expectations, social network does not has a significant relationship with
entrepreneurial opportunity recognition. This finding does not support previous research
(e.g. Wang, Ellinger & Jim Wu, 2013; St-Jean, 2011; Kontinen & Ojala, 2011; Kinghorn,
2008; Ozgen, & Baron, 2007; Farr-Wharton & Brunetto, 2007) and fail to support H1.
One of the possible reasons would be the correlation value of creativity and
entrepreneurial alertness with entrepreneurial opportunity recognition (EOR) is stronger
than the correlation value between social network and entrepreneurial opportunity
recognition. In other words, the presence of all the constructs simultaneously in the
model resulted in the non-significant relationship between social network and
entrepreneurial opportunity recognition. Secondly, not all research highlighted the benefit
of social network towards entrepreneurial opportunity recognition (Farr-Wharton &
Brunetto, 2007; Dean, Holmes & Smith, 1997). Last but not least, the study on
Australian firm owner/managers also discovered that 73 percent of the respondents did
not perceive the benefit of networking (Dean et al. 1997).
Implications
This research presents several theoretical contributions to the knowledge of

entrepreneurial opportunity recognition, social network, entrepreneurial alertness and
creativity. First, this study develops an innovative, comprehensive and integrated model
which will provide a valuable instrument in helping to understand who and why some
people are able to recognize more opportunities.
Second, this study has provided a theoretical implication by giving additional empirical
evidence to the Resource-based View Theory in the context of entrepreneur’s
opportunity recognition performance. Furthermore, this study has also provided
empirical support for the Resource-based View Theory (RBV) in the context of individual
performance. Casson (2004) points out that the theory highlights the importance of
human resources (entrepreneur), as reflected in competencies and capabilities, to the
performance of the firm (Teece & Pisano, 1994). Noticeably, most of the extant empirical
evidence is focused on the performance of the firm as the dependent variable of a study.
On the other hand, this study applied the performance of the individual entrepreneur as
opposed to the firm since the researcher believes that the performance of the
entrepreneur is actually representing the performance of the firm.
From the managerial perspective, the findings have some distinctive implications for the
Malaysian government, higher educational policy makers and educators, training
agencies, entrepreneurship-related government agencies, and prospective and
practicing entrepreneurs by making them aware of the importance of entrepreneurial
opportunity recognition and what influences it. This will help to increase the number of
successful Bumiputera entrepreneurs in Malaysia and making Malaysia an enterprise
nation.
316
The results have shown that entrepreneurial alertness and creativity are crucial factors
of entrepreneurial opportunity recognition. By considering the role of these effective
factors, entrepreneurs will be able to recognize viable opportunities which will then lead
to continuity of business as well as the development of commercially innovative products,
services and processes. Furthermore, the findings suggest that training key workers in
a firm to become more alert and creative can help them to better detect any
discrepancies or potential economic opportunities that can be commercially deployed to
generate revenues for the entrepreneurial firms.
On a practical note, the findings of this study is of utmost important to the government
as a way to encourage people to be involved in entrepreneurship and simultaneously to
decrease the level of poverty among its community, particularly the Bumiputera. This is
because the government recognises entrepreneurs as contributors to the development
of the country (Sharifah Nor & Romy, 2011). The model proposed in this study can be
used to guide consultants, especially the organizations’ trainers and human resource
departments, in their effort to develop highly alert and creative entrepreneurs and
employees.
Limitation and future research
The most important limitation of this study is concerning the cross-sectional nature of the
research design, particularly the fact that since entrepreneurial opportunity recognition
occurs prior to starting and growing the business, causal inferences cannot be drawn.
For future research, it is suggested that a more comprehensive study of the opportunity
recognition process which may involve both qualitative and quantitative data and address
multiple levels and or units of analysis is employed. The other limitation of the study is
the generalizability of the findings. This is due to the sample being drawn from the
SMECorp database which is dominated by four categories of industry which are
Distributive, Trade, Wholesale and Retail, Service Provider, Manufacturing, and Food
and Beverage industries. Therefore, caution should be exercised in generalizing from
these findings to other categories of industry or other country contexts. Last but not least,
the make-up of the respondents also presents a limitation. Not all possible
characteristics were examined in the study. Therefore, this will become the avenue for
future research.
In this study, the researcher has developed a model of entrepreneurial opportunity

recognition and suggested three main factors that differentiate why certain individuals
can recognize opportunities but others do not. Using the findings of this study will then
help the government to focus on Bumiputera entrepreneurs and generally to other
entrepreneurs as well to really recognize the viable business opportunities to withstand
any challenges and retain the business in the long run.
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FISHING FINANCE THROUGH ISLAMIC MICROFINANCE INSTITUTIONS
(Case Study Fishermen Pelabuhan Ratu Sukabumi Indonesia)

Anas Alhifni, Tuti Kurnia, Biyati Ahwarumi, Rully Trihantana, Nikmah Ariandri
Djuanda University Bogor West Java
anas.alhifni@unida.ac.id
ABSTRACT
Fishermen in Indonesia have limited access from banks because they can not meet the
criteria set by banks, one of the financial institutions that can be used to solve the
problem is Sharia microfinance institutions. The purpose of this research is to know
micro-financing product design needed by fisherman through Sharia Micro Finance
Institution. This research uses the qualitative approach with phenomenology technique,
and to determine the appropriate product design and appropriate researcher using
focus group discussions technique. The results show that in general, the queen harbor
fishermen require financing products from Sharia microfinance institutions,
consumptive financing is used for survival or living their families, while for production
needs for the sustainability of their business as fishermen such as the purchase of
equipment, ships, fishing gear and so on. While the product design proposal generated
in this research is the design of financing products with the first two approaches
optimizing the role of Sharia microfinance institutions as Baitul mal with two designs
with Qard or Qardhul Hasan and Waqf temporary, both optimizing Sharia microfinance
institutions as baitut tamwil, its products in the form of three financing products namely
Istishna 'Parallel, Syirkah Mudharaba Muthlaqa and Ijarah Muntahia Bit Tamlik.
Keywords: Design of Financing Products for Fishermen, Islamic Micro Finance Institution
1.1. Introductions
West Java is one of the provinces of Indonesia that has quite a lot of population
as well as the potential of promising natural resources, including marine and
fisheries sector. West Java includes provinces that contribute well to the fishery
sector in Indonesia which is famous for its natural resource wealth. This
potential can be seen from the amount of sea fishery production sold in TPI
(Fish Auction Place) in 2015 of 52,361.50 tons (BPS, 2016). Coastal areas in the
province of West Java that contribute to such areas are Pangandaran and
Pelabuhan Ratu, Sukabumi. According to BPS (2016), the Pangandaran and
Pelabuhan Ratu areas are coastal areas of West Java province with capture
fishing grounds for fishing and other resources in the South Sea of Java and the
Exclusive Economic Zone of Indonesia (ZEEI) in the Indian Ocean waters. So
most people who live in the coastal areas have a profession as a fisherman to
meet daily needs. The number of fishermen in West Java is quite large,
reaching 183,000 fishermen and being ranked the 3rd largest after East Java
and Central Java. (Fadilah, 2014). The number of fishermen, as well as the
contribution they provide at the Fish Auction Place (TPI), is inversely
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proportional to the life of fishermen who are still far from the word
prosperous. (Fadilah, 2014;Suardjo, et al, 2010).
According to Satria in Muflikhati (2010), coastal communities including
fishermen are still among the poorest among the poorest of the poor. During
certain seasons fishermen cannot go to sea because of strong ocean currents,
big waves, and strong winds, such conditions are known as famine season. The
poverty caused most of the Indonesian fishermen, including Pangandaran and
Pelabuhan Ratu fishermen, West Java to lend to loaners because of fast and
easy access. However, these loans are interest-based loans. The percentage of
interest given by loan sharks reaches 20-40 percent more than the income they
earn from fishing. Thus, the loan obtained will make fishermen in more severe
condition because they have to return the loan with high interest. According to
BPS (2016), recorded 7.87 million poor fishermen in 2013. This is due to several
factors above, including interest-based loans from loan sharks due to lack of
capital (Fragnomeli, 2014;Triyanti & Firdaus, 2011;Purnomo, 2015;Wulandari,
2016). Based on this, fishermen need an alternative to obtain additional capital
with a source of capital that is not burdensome fishermen. The capital will be
used to purchase fishing gear such as ships, nets, fuels, etc. and capital for the
business being and will be done in order to meet daily needs. The alternatives
in question are additional capital obtained other than loans to fishermen or
loaners and loan lenders/banks (Putra, 2014;Putra,2015). Islamic Micro Finance
Intstitutions is an appropriate alternative for fishermen to obtain additional
capital (Firdaus & Witomo, 2014). Islamic Micro Finance Intstitutions (IMFI)
through Baitul Mal Wat Tamwil (BMT) becomes the solution to obtain
additional capital without incriminating or harming one party (Syamsuir, 2015).
The existence of is expected to provide easiness and tangible contribution to
support the business activities of the community including fishermen so as to
increase their output, welfare and standard of living (Alhifni & Huda,
2015;Baskara, 2013). The ease can be seen in the design of microfinance
products of IMFI through BMT that operate in middle and lower society. This
means that the micro-financing product design is a small-scale financing that is
affordable by BMT targets including fishermen, especially fishermen Pelabuhan
Ratu, West Java. However, these expectations have the possibility of not being
achieved because the design of micro-finance products offered by IMFI is not in
accordance with the needs of fishermen. Therefore, the authors make the
research question how the design of microfinance products needed fishermen
through Islamic Micro Finance Institution.
2.1. Literature Riview

2.1.1. Fishermen
In general, fishermen are divided into two parts, namely traditional fishermen,
and modern fishermen. Traditional fishermen are fishermen with low incomes and
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limited economic capabilities, so fishing is done in the traditional way because of limited
capital (Alpharesy, et al, 2012: 2). Modern fishermen are fishermen who do fishing
activities in a modern way. The modern way in question is to use large ships, adequate
safety or safety systems and modern equipment such as trawls, which are a kind of large
and long net to catch fish where users wear buoys as safety shields when using them.
This type of modern fisherman is fewer than traditional fishermen whose average life is
below the poverty line because most fishermen in Indonesia are traditional fishermen,
including fishermen in Pelabuhan Ratu, West Java. (Fahmi, 2011).
2.1.2. Economic Condition and Fishermen's Welfare Level
Poverty experienced by fishermen can also be known based on the poverty line
approach, where this line is used as a determinant of the poverty line (GK) by the Central
Bureau of Statistics (BPS). The poverty line (GK) is calculated based on the average food
and non-food expenditure per capita. The value of the national poverty line (GK) in
August 2016 is .548.317 IDR, capita/month. The number indicates that as many as 34.14
percents of the total population of Indonesia are poor fishermen, and 15 percent of the
total poor fishermen are below the poverty line (Directorate of PMP, 2016). According
to Wiyono (2008), there are several forms of poverty, including:
1. Relative poverty is a poor condition because of the influence of policies that do
not care about small and medium society (all levels of society), thus causing
income inequality or social inequality.
2. Absolute poverty is the condition of a person who has income below the poverty
line or does not adequately meet the needs of food, clothing, shelter, health,
housing, and education (primary). This form of poverty is also caused by
expenditures that are not matched by the income earned. So when someone is
in this condition is said to be poor.
3. Structural poverty is poverty caused by structural conditions or unfavorable life
arrangements. The purpose of unfavorable here is the condition where a
person/society is not involved in decision making and does not get good access,
including access to obtain health insurance, education and so forth.
4. Cultural poverty is a poverty that refers to the issue of attitude because of
culture. Cultural poverty is caused by the customs and cultures of a particular
region which is an obstacle in making changes to a better level of life.
5. Natural poverty is a poverty experienced by a person due to nature and physical
limitations that have been born since such as physical disability, mental
disability, old age, and limited natural resources.
2.2. Islamic Micro Finance Institution

Islamic Micro Finance Institution (IMFI) is a self-help group as a people's economic
institution operating in small and medium-sized communities. This institution is present
as a solution to obtain additional capital in the form of financing for
members/communities that are included in the category of unbankable debenture. The
aim is to improve the welfare and standard of living of low-income people including
324
fishermen. (Andriana, 2016;Tarmizi, 2017). There are several definitions of financing

according to the existing literature, among others:
1. According to the Banking Act Number 21 of 2008 Article 1 paragraph (25), states
"Financing is the provision of funds or equivalent bills with it in the form of:"
a. Shared transaction in the form of mudaraba and musharaka.
b. Lease transactions in the form of ijara or lease purchase in the form of ijarah
muntahiya tamlik bits.
c. Sale and purchase transactions in the form of receivables, murabaha, greetings
and istishna ''.
d. Lending and borrowing transactions in the form of qardh receivables
e. Lease transactions in the form of ijara for multilateral transactions.
2. According to the Banking Act no. 10 of 1998, "Financing is the provision of money or
equivalent claims, based on an agreement or agreement between the bank and
other parties financed to refund the money or invoice after a certain period of time
in return or profit sharing".
3. Based on this understanding, Islamic Micro Finance Intstitutions can be utilized by
community/member to perform financing through Baitul Mal Wat Tamwil (BMT).
Baitul Mal Wat Tamwil (BMT) is a Sharia-based financial institution that combines
the concept of maal (treasure) and tamwil (development) in one container. Thus,
the main function of BMT is as a mediator or distributor of property such as zakat,
infak sodaqoh and waqf as well as an institution engaged in productive asset
investment as performed by banking institutions. Baitul Mal Wat Tamwil (BMT) has
been popular in some parts of Indonesia and is a consideration for financing for
middle and lower society including fishermen (Samsuir, 2015).
2.3. Design of Micro Financing Products for Fishermen (Fisheries Sector) through
Islamic Micro Finance Institution (IMFI)
Product development is always done by the company to existence of the
company (Kotler, 2000), one of the goals in product development is to meet the needs
of consumers who are not satisfied, and provide wider access (Buchori, 2001)
According Kotler (2000) there are several stages in product development:
1. The appearance of ideas
The search for ideas can be obtained through research, consumer
observation, managerial thinking and so on.
2. Screening ideas
The resulting ideas are then filtered and discuss their weaknesses and
strengths.
3. Development and presentation of concepts
The ideas that have been filtered are then presented in clear and systematic
concepts so that they can be more easily understood.
4. Development of marketing strategy
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The existing product in the form of a concept must then be made a

marketing strategy for the product and determine the market segmentation
of the product.
5. Business analysis
After the company has developed a business strategy, management can
evaluate the achievements of the strategy that has been made before.
6. Product development
The next stage is product development on R & D or product in physical form
(if the product is in physical form).
7. Testing the market
This stage when the product is given the brand, packaging, and program on
consumer responses
8. Commercialization stage
Stages of launch, at this stage the company is obliged to determine when
who and how the product is marketed.
In this research, the design of the developed product focuses on stage three,
namely idea generation, idea filtering, development and presentation of the
concept of each proposed product, especially financing products for fishermen.
3.1. Metode Penelitian

The type of research in this study is, qualitative method with phenomenology
approach, this is to see the condition of queen harbor fishermen and their needs in
financing from Islamic Micro Finance Institutions. The data collection techniques using
observation and focus group discussions, conducted focus group discussions to
determine the design of financing products in accordance with the conditions of
fishermen in Pelabuhan Ratu. The respondents in this study were 5 small fishermen. 5
people are traditional fishermen, while those who follow focus group discussions consist
of researchers, 5 small fishermen, 5 traditional fishermen, 1 person from marine and
fishery service, 1 person from Islamic Micro Finance Institutions, 2 Islamic economics.
4.1. Research result

4.1.1. Fishermen Pelabuhan Ratu
Pelabuhan Ratu is one of the districts that become an administrative center in

Sukabumi Regency, West Java with an area of 4,145.70 km2. Pelabuhan Ratu has a
distance of 0.5 km from the capital district of Sukabumi, 156 km from the capital of West
Java Province and 175 km from the state capital (BPS, Sukabumi Regency, 2016). The
number of fishermen in Pelabuhan Ratu reaches 9,054 fishermen mostly in West Java
Province covering Cikahuripan Village, Paragon Village, Cisolok Village, and Bantar
Gadung Village. The number of fishermen is not separated from the potential of nature
with abundant marine wealth, thus making the lives of most residents in Pelabuhan Ratu
326
depend on the sea products (Putra, 2014: 24). The value of the production of capture
fishery or seafood in Pelabuhan Ratu can be seen from the following table :
Tabel 4.1
Produksi Perikanan Tangkap NelayanPelabuhan Ratu Tahun 2011-2015
No. Years Productions (Kg) IDR
1. 2011 6,539,133 120,339,550,319
2. 2012 8,846,526 183,439,608,741
3. 2013 7,292,073 213,439,504,947
4. 2014 10,357,023 288,233,337,400
5. 2015 9,122,320 225,823,087,000
Source: The Capture Fisheries Statistics Report 2015
Based on the above table, it can be seen that the production of capture
fishery in Pelabuhan Ratu in 2011 which amounted to 6,539,133 kg increased
until 2014 with the production amount of 10,357,023 kg. However, in 2015 the
amount of production decreased to 9,122,320 kg. This is due to weather
conditions or sea climates that are less supportive for fishing activities.
According to the Fisheries Office of Sukabumi Regency (2018), the decrease of
fish catch production in Pelabuhan Ratu lasts until mid-2017. End of 2017 until
early 2018 the number of fish catching fish has started to increase from before
because the weather condition is getting better. Types of fish that are the main
target of fishermen are white pomfret with the price range Rp300.000,00-
Rp400.000,00 per kilogram.
Fishing activities cannot be separated from the capital they have to go
to sea. The greater the capital they spend then most likely the results will be
obtained more and more because it adapts to the capture equipment used.
However, the lack of capital to go to sea is often experienced by fishermen,
both small fishermen and fisherman workers or workers. This is because
spending is not proportional to the income they earn. Most fishermen,
especially fisher workers only rely on income from the sea and do not have jobs
or other businesses. Usually, if they lack the capital will borrow some needed
funds to relatives, neighbors and more often on the middleman. The loan
process on the middleman has become a hereditary habit in Pelabuhan Ratu,
West Java and became an option when fishermen lacked capital (Arbainun,
2014). Fishermen Pelabuhan Ratu, on average never borrowed to financial
institutions except on the boss of fishermen who require large amounts of
funds. Financial institutions such as fishermen's cooperatives (KUD) in
Pelabuhan Ratu are not running at all even any. As a result, to meet the capital
327
needs of the fishermen do not take advantage of the loan or financing facilities
in financial institutions, but borrowed on neighbors or individuals only.
4.2. Design Mal Products For Fishermen Through Islamic Microfinance Institutions
The mal product in sharia micro finance institution is the product to perform the
function of the institution as an institution not only commercial institution but also social
institution, as result from observation of researcher and FGD which have been done
there are two product mall design which can be developed by sharia micro finance
institution to supply fisherman as follows:
1. Design of a capital approach product with a Qard or Qardhul Hasan system

Clearly, the above product design can be explained by the following scheme
:
Muzakki
IMFI b Mustahik
a Fishermen
c
Coaching
Picture 4.1.
Product with a Qard or Qardhul Hasan system
Explanation:
a. Muzakki buying zakah, infaq or shadaqah to Islamic Micro Finance
Institutions to be channeled to mustahik fishermen, in this case IMFI
acts as amylin
b. IMFI channeled the funds to fishermen who still have the status as
mustahik, to see the seriousness of fishermen in empowering funds
channeled, IMFI can channel by using two contracts namely Qard or
Qardhul Hasan, the use of funds Qard can be done because the
contract is non profit for IMFI and as learning for mustahik to always
have high spirit in work so as to be able to pay Qard funds to IMFI,
but if fisherman is unable to pay then can be made as Qardhul Hasan
(loan of goodness) do not need to be returned. The funds can be used
for the purchase of equipment, ships, fishing gear or other capital to
support the fishing business.
c. To provide IMFI full support on mustahik, IMFI can provide training
and assistance to fishermen, if IMFI is not able, the agency can
cooperate with related institutions such as related offices or colleges
or other professional institutions.
328
2. Product Design for Fishermen Through Islamic Microfinance Institution in

the form of Productive Waqf contract
Clearly the design of the product can be explained through the following
scheme:
Wakif f
IMFI c
b Waqf Asset
a
d
Coaching Fishermen
e
Picture 4.2.
Product With Waqf
Explanation:
a. Wakif pays Cash Waqf funds to IMFI after IMFI gets permission as a
waqf nazir from BWI
b. The IMF then buys the waqf asset with the waqf fund received in the
form of temporary waqf this may be justified because by the year
2017 the temporary waqf rule has been passed, asset which can be
purchased in the form of fishing vessel, the consideration of the
vessel can be used in long period of time.
c. The asset is used by fisherman for the sustainability of his business to
go to sea.
d. IMFI as the Vizier guides and guides regularly either done
independently or in cooperation with other institutions.
e. After the temporary Waqf ends the fishermen are required to report
and return the funds of the purchase of the whole ship to IMFI as nazir
waqf.
f. IMIFI reports to the wakif regarding the regular use of the fund waqf
and IMFI keeps the value of the waqf not reduced, and can then buy
other waqf assets.
4.3. Design of Tamwil Products for Fishermen Through Islamic Microfinance

Institutions
Many products can be applied by sharia micro finance institutions to

support fishermen, but as observations and FGDs have been conducted there are
three products applied by Islamic microfinance institutions as the following
explanation:
1. Istishna 'Parallel
Fishermen do micro-financing using parallel istishna contracts. The parallel
istishna contract applies when the BMT is unable to fulfill the order of the
329
fishermen / its members and proceeds to the producer. This contract should
be separated from the previous istishna contract, istishna contract 'is usually
used for home financing. However, in the fisheries sector, the parallel
isthisna contract can be used for fisheries and marine business through the
financing of large vessels for fishermen. The use of 'istishna' parallel contract
does not violate the prevailing rules, because it is stated in the MUI DSN
Fatwa Number 22 on istishna 'sale and sale ie "If the LKS perform istishna
transaction' to fulfill its obligation to the customer he can do istishna 'again
with other party on the same object, provided that istishna '' first does not
depend (Mu'allag) on the second istishna (Lestari, 2016).
In addition, in the implementation of this contract is also not burdensome
fishermen and the LKMS because the payment can be done tough by paying
advance or commonly referred to as the term down payment, while the
remaining payment can be repaid after the goods/orders are completed.
Istishna 'parade can be applied as one solution of fishing problems related to
the limited facilities and infrastructure in fishing activities including ships and
other equipment that support fishing activities (Wiyono, 2008: 357).
2. Syirkah Mudharaba Muthlaqa
In addition to the istishna 'parallel contract, the mudharaba contract which
is a derivative of the musyaraka contract is a partnership between two or
more parties (mudharib and shahibul mal) to manage a business with
mutually agreed agreements, whether the sharing of profits, risks and so on.
In this contract, the LKMS / BMT role as shahibul mall (owner of capital) and
fisherman as mudharib (capital manager). LKMS / BMT provides capital in
the form of vessels and other fishing equipment used by fishermen to go to
sea with a mutually agreed sharing.
This mudharaba syirka mechanism does not limit the scope of fishing
fisheries such as territorial limits, types of fish and so forth. Thus, this
contract is referred to as syirkah mudharaba muthlaqa where BMT grants
full authority to fishermen in fishing activities (free / unbound) (Anggadini,
2014: 105), (Handayani, 2011: 84). In addition, the use of this contract is also
supported by the fatwa of DSN MUI Number 8 of 2000 Article 2 point d,
which states that "Each partner authorizes another partner to manage assets
and each is deemed to have been authorized to engage in musharaka
activities by observing the interests of its partners, without deliberate
negligence and deliberate misconduct ".
3. Ijarah Muntahiya Bittamlik
Ijarah Muntahiya Bittamlik (Financial Leasing With Purchase Option) is a
derivative of ijarah (rent-rent) contract, whereby at the end of the lease
period the leased goods transfer ownership to tenant's property (Munif,
2016: 60). The mechanism of this contract is the LKMS / BMT is the owner of
the lease and the fisherman as a tenant and pay the rent at LKMS / BMT in
330
accordance with the agreement of both parties. Objects that are rented
include boats and other fishing equipment that fishermen need to support
their fishing activities.
At the end of the lease period, the fishermen are given an option (option) to
buy the object or not. This is not contradictory with the micro-financing
product related to ijarah contract, because some literature also allow ijarah
muntahiya bittamlik as in the book of codification of Sharia banking
products, SEBI attachment no. 10/31 / DPBS dated October 7, 2008
regarding Products of Sharia Bank and Sharia Business Unit PBI No. 10/17 /
PBI / 2008 dated September 25, 2008, states that "Ijarah Muntahiya
Bittamlik is a lease transaction between the owners of the lease object and
the lessee to obtain reward for the leased object with the option of
transferring the leasehold object". Thus, based on that understanding, the
fisherman has the right to purchase the IMBT object (Ijarah Muntahiya
Bittamlik) in accordance with the option rights granted and the agreement
between the two parties.
Conclusion
The results show that in general, the queen harbor fishermen require financing products
from Sharia microfinance institutions, consumptive financing is used for survival or living
their families, while for production needs for the sustainability of their business as
fishermen such as the purchase of equipment, ships, fishing gear and so on. While the
product design proposal generated in this research is the design of financing products
with the first two approaches optimizing the role of Sharia microfinance institutions as
Baitul mal with two designs with Qard or Qardhul Hasan and Waqf temporary, both
optimizing Sharia microfinance institutions as baitut tamwil, its products in the form of
three financing products namely Istishna 'Parallel, Syirkah Mudharaba Muthlaqa and
Ijarah Muntahia Bit Tamlik.
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EkonoCinta: BIARKAN CINTA BERBICARA

Fadli Fizari Abu Hassan Asari & Azlina Mat Saad
Jabatan Ekonomi, Fakulti Pengurusan Perniagaan, Universiti Teknologi MARA, Cawangan

Perlis, Kampus Arau, 02600 Arau,Perlis, Malaysia.
Abstract
Persepsi negatif menyebabkan ekonomi menjadi subjek bukan pilihan bagi para pelajar. Minat
yang berkurangan menyumbang kepada gred yang sekadar cukup makan dan pengulangan
semula subjek. Dalam masa yang sama, cinta adalah satu lumrah bagi golongan pelajar yang ini.
Rasa mencintai dan dicintai membuatkan pelajar-pelajar merasai yang cinta adalah sesuatu yang
dekat di hati. Justeru, ada keperluan untuk merungkaikan konsep ekonomi yang sukar dengan
pengertian cinta yang mudah. Dikongsikan juga konsep mikro ekonomi yang bersesuaian untuk
diajarkan menggunakan kaedah EkonoCinta. Juga kejayaan dan perkembangan dari
perlaksanaan kaedah ini. Ini penting agar ekonomi bukan sahaja mudah untuk dipelajari, bahkan
difahami dan diamalkan dalam kehidupan seharian.
Katakunci: Ekonomi, Cinta, Pengajaran Pembelajaran, Inovasi
PENGENALAN
Sejujurnya, ekonomi merupakan subjek yang kurang digemari pelajar-pelajar

bidang lain. Bagaimanapun, oleh kerana ianya merupakan subjek wajib fakulti dan
kursus, keterpaksaan ini masih perlu diteruskan. Hasilnya, kebanyakan gred yang
diperolehi adalah cukup makan, dan ada juga yang perlu mengulang berkali-kali. Teori
yang pelbagai dan graf yang entah apa-apa, tambah menyerabutkan pelajar-pelajar
berkenaan. Persoalannya, adakah ekonomi sebenarnya sukar atau dilihat sebagai sukar?
Bagaimana mampu, kita (terutamanya pensyarah-pensyarah ekonomi) membuka minda
kita dan para pelajar dalam memahami yang ekonomi bukannya sekadar subjek. Ianya
adalah kehidupan yang kita lalui setiap hari. Jika ini berhasil, mungkinkah ianya mampu
lebih dekat di hati para pelajar ini?
Di dunia barat, ada satu bidang yang agak baru dikenali sebagai CintaNomi
(LoveNomics). Ianya menerangkan cinta dari pandangan ekonomi. Bermula dari
percintaan, diikuti perkahwinan, sehinggalah ke perceraian. Begitu juga dengan
pengurusan anak-anak dan pengaruh luaran dan dalaman terhadap perhubungan. Lebih
menarik lagi, bidang ini diterjemahkan ke pelbagai artikel ilmiah oleh pengasas
bersamanya, Stevenson dan Wolfers. Dalam masa yang sama, ianya dibincangkan
secara serius di akhbar The New York Times. Jumlah sitasi tinggi dicatatkan, mungkin
disebabkan bidang ini adalah berkaitan perkara seharian. Jika ekonomi mampu
menerangkan cinta, apa mungkin cinta mampu merungkaikan ekonomi? Inilah yang
akan cuba diterangkan dalam kertas kerja ini.
KAJIAN LITERATUR
Ekonomi sering dianggap sebagai sesuatu yang sukar. Sedangkan, ianya boleh
dihuraikan secara menarik dengan menggunakan logik mudah. Apabila sukar difahami,
ianya akan menghasilkan keputusan yang berbeza dan salah (Backhouse, 2012).
Damato (2017) menekankan yang ekonomi harus dilihat sama tarafnya dengan subjek-
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subjek sains yang lain seperti fizik dan kima. Yang berbeza adalah, makmal yang
digunakan. Ketika sains dipenuhi makmal yang dipenuhi peralatan, makmal ekonomi
pula adalah dunia nyata dan alatannya adalah polisi yang pelbagai. Bagi Peng-Armao
(2014) pula, mendaftar subjek ekonomi adalah bukan satu kegemaran dan mungkin
menjadi pilihan terakhir buat pelajar sekolah, kolej dan universiti. Ini berdasarkan
pernyataan oleh Prof. Dr. Delwin Long, yang juga percaya penyampaian adalah kunci
kejayaan kepada keseronokan dalam mempelajari ekonomi.
Dalam masa yang sama, kasih sayang merupakan salah satu sumber
kebahagiaan bagi manusia (Harmaini & Yulianti, 2016). Meskipun boleh hidup
berseorangan, manusia secara umumnya, lebih bahagia apabila dikelilingi oleh orang
yang menyayangi mereka. Bagi Mouton & Montijo (2017) pula, kasih sayang adalah
penting dalam membentuk keyakinan diri dan fisiologi manusia yang kompleks.
Kesimpulan ini berdasarkan kajian kualitatif di enam benua berbeza, di mana apa yang
kamu sayang dan kenapa kamu sayang merupakan di antara soalan-soalan yang
ditanyakan. Di kalangan remaja, rasa mencintai dan dicintai menyumbang kepada
separuh dari faktor kegembiraan mereka (Primasari & Yuniarti, 2012). Ini menunjukkan
yang cinta merupakan subjek kegemaran buat para remaja. Dalam masa yang sama,
kumpulan ini adalah kumpulan terbesar di institusi pengajian tinggi di seluruh dunia.
KAEDAH
Di dalam ekonomi, terdapat dua bidang utama, yakni mikro ekonomi dan maro
ekonomi. Mikro ekonomi berkaitan perlakuan agen ekonomi yang rasional iaitu manusia,
manakala makro ekonomi lebih kepada ekonomi yang umum seperti pendapatan negara.
Justeru, mikro ekonomi merupakan bidang yang lebih dekat kepada EkonoCinta. Di
dalam sistem UiTM, mikro ekonomi diajar sepenuhnya dalam subjek mikroekonomi. Bagi
subjek ekonomi pula, mikro ekonomi hanya mengambil separuh dari silibus yang diajar.
Ianya menjadi subjek wajib kepada pelajar-pelajar Fakulti Pengurusan Perniagaan dan
elektif kepada pelajar-pelajar fakulti lain. Ianya mengambil 3-4 jam kredit bagi setiap
minggu pengajaran dan pembelajaran.
Kaedah EkonoCinta ini diamalkan secara serentak dengan kaedah ‘Pass the
Marker’. Bagi kaedah ‘Pass the Marker’, sebatang pen marker akan dibekalkan. Orang
pertama yang menerima pen berkenaan akan menerima arahan dari pensyarah untuk
menulis/melukis pada papan putih kelas. Pen marker berkenaan kemudiannya
diserahkan secara rawak kepada rakan yang lain. Proses menulis/melukis dan
penyerahan marker ini berterusan sehingga selesai perkara yang ingin diajarkan. Bagi
subjek ekonomi yang melibatkan banyak graf dan persamaan, kaedah ini membolehkan
pelajar lebih peka dengan apa yang dipelajari. Ini kerana mereka akan segera menyedari
kesalahan yang dilakukan dan pembetulan dilakukan ketika itu juga. Dalam masa yang
sama, setiap pelajar akan berada dalam keadaan yang berjaga-jaga, kerana khuatir
yang mereka adalah ‘mangsa’ yang seterusnya.
Dikongsikan contoh-contoh berkaitan mikro ekonomi yang boleh dihuraikan

menggunakan kaedah EkonoCinta, di muka surat tiga dan empat kertas kerja.
Konsep 1:
Pilihan (Choices), Kekangan (Scarcity) dan Kos Melepas (Opportunity Cost)
Konsep tiga serangkai ini merupakan konsep paling asas dalam ekonomi.
Secara umumnya, ianya menerangkan tentang pilihan-pilihan yang ditawarkan kepada
seseorang. Apa yang boleh dipilih dan apa yang terpaksa dilepaskan. Proses pilih dan
lepas ini berlaku akibat dari kekangan yang wujud. Seterusnya, kos yang terhasil akibat
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dari pilihan kedua terbaik yang terpaksa dilepaskan. Jika inilah penerangan yang diberi
pada kelas pertama ekonomi, kemungkinan ianya akan membunuh sama sekali minat
pelajar yang berkenaan. Justeru, ini masa terbaik untuk mengenalkan EkonoCinta
kepada mereka.
Pensyarah boleh memanggil seorang pelajar perempuan ke hadapan kelas dan

sebatang marker diserahkan kepadanya. Pelajar diminta untuk menulis nama
kekasihnya. Reaksi yang pertama adalah pelajar akan malu dan seluruh kelas akan
bersorak. Ini proses normal yang mampu menarik minat awal terhadap ekonomi. Jika
pelajar berkenaan malu, minta saja tuliskan nama mana-mana lelaki. Katakan Aaron
adalah kekasih pertamanya. Minta pula untuk tuliskan nama kekasihnya yang kedua.
Katakan Daniel. Katakan nama pelajar perempuan berkenaan adalah Lofa. Berdasarkan
ekonomi, tiada masalah untuk Lofa mempunyai dua kekasih dalam satu masa. Ini kerana
Lofa adalah agen ekonomi yang rasional yang melihat kepada tingkat kepuasan (utility)
tertinggi.
Aaron dan Daniel merupakan pilihan-pilihan (choices) yang Lofa ada semasa
percintaan. Bagaimanapun, pemilihan terpaksa dibuat andai Lofa mahu berkahwin.
Dalam Islam, wanita hanya dibenarkan untuk berkahwin dengan seorang lelaki dalam
satu-satu masa. Ini dinamakan kekangan (scarcity). Jika Aaron merupakan pilihan
terbaik buat Lofa, maka Daniel perlu dilepaskan. Daniel yang dilepaskan ini adalah kos
melepas (Opportunity Cost) buat Lofa. Kesemua ini digambarkan dalam Jadual 1. Jika
Daniel pula pilihan terbaik, maka Aaron terpaksa dilepaskan pergi. Dalam masa yang
sama, Aaron sudahpun menjadi kos melepas. Ini digambarkan di dalam Jadual 2.
Jadual 1: Jika Aaron Jadi Pilihan
Pilihan Kekangan Kos Melepas
Pilihan 1 = Aaron Lofa Pilih Aaron
Pilihan 2 = Daniel hanya boleh kahwin 1 Daniel = kos melepas
Jadual 2: Jika Daniel Jadi Pilihan
Pilihan Kekangan Kos Melepas
Pilihan 1 = Aaron Lofa Pilih Daniel
Pilihan 2 = Daniel hanya boleh kahwin 1 Aaron = kos melepas
Persoalannya... Siapa yang mahu dipilih? Siapa yang mahu dilepaskan? Jika
dibuat Cost-Benefit Analysis, pastinya lelaki yang memberikan cost yang kurang dan
benefit yang lebih menjadi pilihan Lofa. Sayugia harus diingatkan, yang ini bukannya
transaksi barangan dan perkhidmatan yang biasa. Ini adalah cinta yang melibatkan hati
dan perasaan. Penganalisaan kos sebagai contoh, tidak boleh terhad kepada apa yang
boleh disentuh (tangible) (Asari, 2011). Sesuatu yang tidak boleh disentuh (intangible)
seperti kasih sayang dan memori bersama juga perlu dipertimbangkan. Ini juga adalah
asas kepada percintaan berlainan kelas seperti dalam filem Antara Dua Darjat.
Kekayaan Tengku Mukri yang bersifat tangible belum mampu mengatasi kasih sayang
(intangible) yang dihulurkan Ghazali kepada Tengku Zaleha.
Konsep 2:
Faktor Pengeluaran
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Di dalam mikro ekenomi, terdapat empat faktor pengeluaran iaitu modal (capital),
buruh (labour), tanah (land) dan usahawan (entrepreneur) . Keempat-empat input ini
diperlukan bagi penghasilan mana-mana barangan dan perkhidmatan. Begitu juga
dengan percintaan. Jika percintaan dianggap sebagai output, maka keempat-empat
sumber penting ini merupakan input kepada transaksi ini. Kali ini pelajar lelaki dipanggil
secara bergilir-gilir bagi menyenaraikan perkara-perkara yang penting bagi setiap input.
Ini kerana dalam banyak perhubungan cinta, biasanya lelaki yang akan memulakan
hubungan. Jarang-jarang berlaku ‘perigi cari timba’, terutama di kalangan masyarakat
Melayu yang konvensional.
Modal (capital)
Percintaan memerlukan modal. Antara yang akan mula-mula disenaraikan adalah kad
tambah nilai prabayar (top-up) dan data internet. Ini kerana mereka lahir sebagai
generasi-z, di mana semua medium tersedia dalam bentuk teknologi maklumat dan
komunikasi (ICT). Platform seperti Whatsapp dan WeChat menjadi pilihan sama ada
untuk berbalas mesej mahupun bertukar panggilan. Dalam masa yang sama, mereka
perlu diingatkan yang modal-modal lain seperti duit dan kenderaan adalah sama penting
dalam setiap perhubungan.
Buruh (labour)
Berlaku salah faham kerana apabila disebut buruh, pelajar akan terbayangkan manusia.
Justeru, merekalah manusia yang dimaksudkan. Buruh dalam kes ini, adalah tenaga
manusia yang secara mental dan fizikal digunakan dalam menjayakan perhubungan di
antara pasangan. Bagi generasi-x, posmen adalah contoh buruh yang relevan dalam
menyampai surat. Sebaliknya, mereka yang berkhidmat dengan syarikat-syarikat
telekomunikasi adalah contoh buruh terbaik bagi generasi-z. Ini memandangkan
kebanyakan perhubungan dilakukan secara atas talian.
Tanah (land)
Teori ekonomi klasik menganggap tanah dan sumber dalam tanah adalah input wajib.
Ini adalah logik, meskipun kita berada di dalam dunia e-shopping, tanah masih
diperlukan bagi urusan pergudangan untuk penyimpanan stok. Sesuai juga dengan
pepatah Melayu, ‘di mana bumi dipijak, di situ langit dijunjung’. Begitu juga dengan
percintaan. Apakah tiada tanah-tanah taman bunga atau lantai pusat beli belah yang
masih juga berpaksikan tanah, yang dipijak oleh pasangan kekasih? Sesuatu yang
menarik untuk dibincangkan di dalam kelas ekonomi kita.
Usahawan (entrepreneur)
Usahawan seperti yang difahami ekonomi, adalah sesiapa yang menggabungkan
ketiga-tiga input di atas. Sudah pastinya dalam sesuatu percintaan, pasangan kekasih
adalah usahawan yang berkenaan. Ini yang membezakan di antara buruh dan usahawan.
Setiap pengeluaran dikawal oleh pengeluar yang melakukan penawaran (supply).
Manakala permintaan (demand) dilakukan oleh pengguna dalam pasaran. Ketika ini,
konsep penawaran-permintaan boleh diperkenalkan secara perlahan-lahan sebagai
kesinambungan untuk topik yang seterusnya.
PERBINCANGAN & KESIMPULAN
EkonoCinta merupakan kesinambungan kepada Ekono’Cinta’Metrik. Satu lagi

kaedah merungkaikan subjek ekonomi (ekonometrik) menggunakan kaedah cinta.
Ekonometrik diakui ramai sebagai subjek tersukar dalam bidang ekonomi sejak dulu lagi
(Schumpeter, 1933). Subjek ini merupakan gabungan ekonomi, matematik dan statistik.
Biarpun kaedahnya sukar, keputusannya masih dinanti-nanti (Frain, 1995). Justeru,
Ekono’Cinta’Metrik cuba membantu dengan mempermudahkan kaedah penyelidikannya
kepada lapan langkah asas. Di antaranya ‘Cari Cintaku dalam Hatimu’ dan ‘Kau Uji
Cintaku Berkali-kali (Asari, 2017). Hasilnya, ramai pelajar di kalangan ijazah sarjana
337
muda UiTM (Cawangan Terengganu) telah membentangkan kertas kerja bukan sahaja
di peringkat tempatan, malahan di konferensi antarabangsa di luar negara. Ada juga
yang dinobatkan sebagai penerima kertas kerja terbaik konferensi.
Justeru, kaedah EkonoCinta yang diaplikasikan ke atas subjek ekonomi yang

lebih asas seperti mikro ekonomi, diharap menarik minat mereka yang masih baru dalam
bidang ini. Lebih penting lagi, ekonomi bukan sahaja mudah untuk dipelajari, bahkan
difahami dan diamalkan dalam kehidupan seharian. Kaedah ini sedang dicubakan
kepada pelajar bukan Fakulti Pengurusan Perniagaan (baru dan mengulang) yang
sememangnya janggal dengan subjek ekonomi. Diharapkan agar keputusannya menjadi
lebih positif berdasarkan keputusan peperiksaan yang cemerlang dan pemahaman yang
gemilang. Data empirik diperolehi seterusnya akan menjadi kesinambungan penulisan
ilmiah kepada kertas kerja ini. Adalah juga menjadi harapan penulis agar kaedah ini
diterimapakai di seluruh dunia, kerana konsep cinta yang bersifat universal dan mampu
difahami semua lapisan masyarakat.
RUJUKAN
Asari, F. F. A. H. (2011). Cinta dan ekonomi. Buletin Akademik. Terengganu: Universiti Teknologi
MARA (Cawangan Terengganu).
Asari, F. F. A. H. (2017). Ekono'Cinta’Metrik: Bila cinta menyatukan kita (Econo'Love'Metrics:

When love unites us). Jurnal Inovasi Malaysia (JURIM), 1(1), 42-59.
Backhouse, R. E. (2012). Economics is a serious and difficult subject: Paper prepared for
Conference at EIPE, Rotterdam, December 10-11, 2010. Journal of Economic
Methodology, 19(3), 231-241.
Damato, D. S. (2017). Is economics a hard science? Diambil dari https://spectator.org/is-

economics-a-hard-science/
Frain, J. (1995). Econometrics and truth. Journal of the Statistical and Social Inquiry Society of
Ireland, 27(2), 229–304.
Harmaini, H., & Yulianti, A. (2016). Peristiwa-peristiwa yang membuat bahagia. PSYMPATHIC,
1(2), 109–119.
Mouton, A. R., & Montijo, M. N. (2017). Love, passion, and peak experience: A qualitative study
on six continents. The Journal of Positive Psychology, 12(3), 263–280.
Peng-Armao, J. (2014). Economics professor’s passion for tough subject creates champs and
changes career paths. Diambil dari http://www.sanjac.edu/article/economics-
professor%E2%80%99s-passion-tough-subject-creates-champs-and-changes-career-
paths
Primasari, A., & Yuniarti, K. W. (2012). What make teenagers happy? An exploratory study using
indigenous psychology approach. International Journal of Research Studies in Psychology,
1(2), 53–61.
Schumpeter, J. (1933). The common sense of econometrics. Econometrica: Journal of the

Econometric Society, 1(1), 5–12.
338
Product, Absorptive Capability and Technological Capability: A Review on
Dimensions of Innovative Capability
Sarah Thangadurai
School Of Tourism, Hospitality & Environmental Management,
1.0 INTRODUCTION
The concept of innovation is not new (Ganotakis & Love, 2012, p. 839; Heidenreich &
Handrich, 2015, p. 878). It is believed that innovation has been popularised by
Schumpeter in the form of ‘creative destruction’ whereby new products/services
overtake old ones from the economics perspective (Schumpeter, 1943, p. 83). Later,
the importance of innovation has further been amplified when a distinct research
distinct area especially for innovation related publications have been introduced (e.g.,
Journal of Product Innovation Management, R & D Management, Technovation)
(Kohler, Matzler, & Füller, 2009; Perks, Gruber, & Edvardsson, 2012). Subsequently,
innovation has become one of the hugely debated topics in various fields which include
medical, economy, management, marketing, human resources and public
management. Nevertheless, there is always argument pertaining to the depth of
innovation related research in the hotel industry (A.-M. Hjalager, 2002, p. 465). For
instance, Sundbo, Orfila-Sintes, and Sorensen (2007, p. 88) claim innovation research
within the tourism industry is in embryotic stage whereas Gounaris and Koritos (2012)
argue that tourism scholars need to bring forward innovation studies. Hence, this paper
critically analyses several dimensions of innovative capability and how they have been
practically as well as academically germanised across the hotel industry which is one
of the highest contributors within the tourism industry.
The paper begins with some key definitions of innovation followed by the Innovation is
discussed from various characteristics. First of all, the evolution of innovation is put
forward when it has first been introduced. Next, definition of innovation is explained.
Then, types of innovations are explicated followed by discussions on dimensions of
innovative capability. Next, 3 different innovative capability dimensions such as
product/ service uniqueness, absorptive capability and technological capability are
rigorously discussed, emphasizing the applications of each of them. Finally the paper is
summarised with highlights on potential future research areas.
1.1 DEFINITION OF INNOVATION
The word innovation and invention have often been confused by scholars due to its
overlapping definitions (Allen, 1967, p. 7). Thus, to gain a uniformed understanding of
innovation, various literatures have been approached. The following table summarises
the definition of innovation.
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Table 2: Definition of Innovation

Author(s) Definition
(Devinney, 1995, p. 72) Synthesizing of information into solutions
(Freel, 2003, p. 751) Cumulative or path dependent creation of new knowledge, or novel recombination of existing
knowledge
(Armbruster, Bikfalvi, Kinkel, & Lay, 2008, p. Research and development (R&D) associated with creating new products
644)
(Thompson, 1965, p. 2) Generation, acceptance and implementation of new ideas, processes, products or services
(Amabile, Conti, Coon, Lazenby, & Herron, Successful implementation of creative ideas within an organization
1996, p. 1155)
(Utterback, 1971, p. 77) An invention which has reached market Introduction in the case of a new product, or first use
in a production process, in the case of a process innovation.
(Van de Ven, 1986, p. 591) Development and implementation of new ideas
(Damanpour, 1996, p. 694) A process that includes the generation, development and implementation of new ideas or
behaviour.
(Damanpour & Evan, 1984, p. 393) Responses to environmental change or means of bringing about change in an organization
(Baregheh, Rowley, & Sambrook, 2009, p. A multi-stage process whereby organizations transform ideas into new/improved
1334) products, service or processes, in order to advance, compete and differentiate
themselves successfully in their marketplace
340
(Sarooghi, Libaers, & Burkemper, 2015, p. A process whereby creative ideas are transformed into new products and services
714)
(Wu, Lii, & Wang, 2015, p. 2) Generation of novel ideas for products and services, as well as business processes,
technological capabilities, and manufacturing methods
(Hashi & Stojčić, 2013, p. 354) New ideas which influence the behaviour of economic agents in a previously unknown way
(Locke, 1972, p. 417) Developing processes, products, and markets and putting them into practice
(A. Robertson, 1973, p. 369) Total sequence of events from the inception of an idea, discovery or invention, through the
development phase (reduction to practice, in engineering language) to commercial scale
production and eventually to the market.
(Ferrari, 1973, pp. 391-392) A process by which an invention is brought into being and into successful use by its potential
user
(Tang, 1998, p. 297) Complicated process of applying new ideas for gainful purpose
(Drucker, 1998, p. 3) The means by which the entrepreneur either creates new wealth-producing resources or
endows existing resources with enhanced potential for creating wealth
(Schiele, 2006, p. 926) The result of a new product development processes, but also introducing new features for a
product or simply replacing one of the materials it is made of
(Stead, 1976, p. 3) transformation of an idea into a new or improved saleable product or operational process
(Gaudin, 1976, p. 108) Does not only consist of creating new products, but also of transforming the manufacturing
techniques and existing products
341
(Robbins & Milliken, 1977, p. 215) Process by which a new idea is successfully translated into economic impact within our
society by providing better products and simultaneously creating new jobs in the
manufacturing and application of those products.
(Hurley & Hult, 1998, p. 42) Implementation of new ideas, products, or processes
(Crossan & Apaydin, 2010, p. 1155) Production or adoption, assimilation, and exploitation of a value-added novelty in economic
and social spheres; renewal and enlargement of products, services, and markets;
development of new methods of production; and establishment of new management system
(Becheikh, Landry, & Amara, 2006, p. 645) Implemented technologically new products and processes and significant technological
improvements in products and processes
(Evangelista, Perani, Rapiti, & Archibugi, New products and processes

1997, p. 522)
(Garcia & Calantone, 2002, p. 112) An iterative process initiated by the perception of a new market and/or new service
opportunity for a technology based invention which leads to development, production and
marketing tasks striving for the commercial success of the invention
(Rennings, 2000, p. 322) develop new ideas, behaviour, products and processes, apply or introduce them
(Hemmelskamp, 1997, p. 178) Novelties resulting in the first-time application of newly acquired know-how, of new methods
or new products as well as to novelties where no new technologies are used, but where, for
example, only changes in the product design are made
(Bröring, Martin Cloutier, & Leker, 2006, p. Idea generation, evaluation and selection decisions
487)
(Nonaka, 1990, p. 27) Product of the interaction between necessity and chance, order and disorder, continuity and
discontinuity.
342
(A. M. Hjalager, 1997, p. 35) Further developments of the invention for industrial handling, together with the
institutionalizing of the methods of production or the bringing of the new products to the
market
(Allen, 1967, p. 8) Bringing of an invention into widespread, practical use
Source: The author
343
School of Business Management, Universiti Utara Malaysia, 06010 Sintok, Kedah, Malaysia,
It is apparent that the concept of newness (Armbruster et al., 2008; Baregheh et al., 2009;
Becheikh et al., 2006; Crossan & Apaydin, 2010; Damanpour, 1996; Drucker, 1998; Evangelista
et al., 1997; Freel, 2003, p. 751; Garcia & Calantone, 2002; Gaudin, 1976; Hashi & Stojčić,
2013; Hemmelskamp, 1997; Hurley & Hult, 1998; Rennings, 2000; Robbins & Milliken, 1977;
Sarooghi et al., 2015; Schiele, 2006; Stead, 1976; Tang, 1998; Thompson, 1965; Utterback,
1971; Van de Ven, 1986) is highly quoted by researchers to define innovation followed by the
term product (Armbruster et al., 2008; Baregheh et al., 2009; Becheikh et al., 2006; Crossan &
Apaydin, 2010; Evangelista et al., 1997; Gaudin, 1976; Hemmelskamp, 1997; Hurley & Hult,
1998; Locke, 1972; Rennings, 2000; Robbins & Milliken, 1977; Sarooghi et al., 2015; Schiele,
2006; Stead, 1976; Thompson, 1965, p. 2; Utterback, 1971; Wu et al., 2015) and process
(Baregheh et al., 2009; Becheikh et al., 2006; Evangelista et al., 1997; Ferrari, 1973; Garcia &
Calantone, 2002; Hurley & Hult, 1998; Locke, 1972; Rennings, 2000; Robbins & Milliken, 1977;
Sarooghi et al., 2015; Schiele, 2006; Stead, 1976; Tang, 1998; Thompson, 1965, p. 2;
Utterback, 1971; Wu et al., 2015).
Finally, ideas (Amabile et al., 1996; Baregheh et al., 2009; Bröring et al., 2006; Damanpour,
1996; Hashi & Stojčić, 2013; Hurley & Hult, 1998; Rennings, 2000; Robbins & Milliken, 1977; A.
Robertson, 1973; Sarooghi et al., 2015; Tang, 1998; Thompson, 1965, p. 2; Van de Ven, 1986;
Wu et al., 2015), novelty (Crossan & Apaydin, 2010; Freel, 2003, p. 751; Hemmelskamp, 1997;
Wu et al., 2015) and creativity (Amabile et al., 1996, p. 1155; Sarooghi et al., 2015) are also
frequently pinpointed terms to define innovation. However, although the term novelty, ideas and
newness are as well connected with invention, one should never get confused with the two
terms. Johnson (1975, p. 29) for instance describes invention as ‘a novel feature in either a
product or process’ which carries the term novelty whereas Allen (1967, p. 8) highlights the term
idea to define invention. Still, considering the fact that inventions are non-commercialised
innovations (Schumpeter, 1943, p. 132), and the foremost process of innovation (Allen, 1967, p.
8), it is prevalent that innovation indeed is distinct from invention. Among the most argued topics
within innovation, the scope on innovative capability is very limited given the fact that scholars
are prone to picking a specific type of innovative capability instead of investigating them
altogether (Cheng, Chang, & Li, 2013; Ettlie & Rubenstein, 1987). Hence, it is crucial to explore
the common dimensions of innovative capability.
1.2 DIMENSIONS OF INNOVATIVE CAPABILITY
Innovative capability of firms determines the effectiveness in terms of financial, operational and
innovative performances (Hansen & Birkinshaw, 2007, p. 130). In regards to innovative
capability, scholars have different perceptions of the factors that best measure those
performance aspects. Some scholars view technological processes as fundamentals in building
innovative capability (Arbussà & Coenders, 2007; Koc & Ceylan, 2007; Thanasopon,
Papadopoulos, & Vidgen, 2016; Tsai & Wang, 2009). Meanwhile, several scholars glorify
networking capacity as an important determinant of innovative capability of firms whereby
crowdsourcing, social network and open innovation activities are well utilised (Amara & Landry,
2005; Boudreau & Lakhani, 2013; M. H. Chen & Wang, 2008; Chesbrough, 2011; Ghisetti,
Marzucchi, & Montresor, 2015; La Rocca & Snehota, 2014, p. 445; Mena & Chabowski, 2015).
The importance of absorptive capability (Martinkenaite & Breunig, 2016; Tzokas, Kim, Akbar, &
Al-Dajani, 2015) and knowledge flow capability on the other hand are also addressed as core
competencies of firms (Bao, Chen, & Zhou, 2012; Carlo, Lyytinen, & Rose, 2012; Hargadon &
Sutton, 2000; Kyriakopoulos & De Ruyter, 2004; Macpherson, Jones, & Zhang, 2004; Rohrbeck,
Hölzle, & Gemünden, 2009). Nonetheless, a holistic review to critically analyse the extent to
which different capabilities may produce favourable results appears to be missing (Gianiodis,
Ettlie, & Urbina, 2014; Hull & Covin, 2010). Furthermore, Galende and de la Fuente (2003, p.
733) claim that studies addressing dimensions of innovative capability are yet to be built on a
strong foundation. Thus, it is essential to extend the existing understanding of innovative
344
capability. Especially in the hotel industry, scholars remain reluctant in investigating innovation-
related topics (Gomezelj, 2016; A.-M. Hjalager, 2010) despite the industry’s rapid utilisation of
various innovative capabilities which is not limited to technology, networking and product
uniqueness. Therefore, it is important to analyse innovative capability related researches and
practices that are widely applied in the academic as well as in the hotel industry. The following
sections discuss innovative capability dimensions across the hotel industry.
1.2.1 product/service Capability

Unique offerings are attempts to differentiate a service or a product from that of the competitors
to cater relentlessly changing customer needs (Javalgi & Moberg, 1997, p. 165; G. Li, Zhang, &
Wang, 2015, p. 214; Moon, Park, & Kim, 2015, p. 224). Unique service or product offerings
significantly affect product or service innovativeness (Huang & Tsai, 2014; J. Kim, Kim, Garrett,
& Jung, 2015, p. 208; Perks, Cooper, & Jones, 2005), customer satisfaction (Goldenberg,
Mazursky, Horowitz, & Levav, 2003, p. 129), technological expansion (R. Chen, 1996, pp. 663,
664) and firm performance (Jordan & Segelod, 2006; Tu, 2010). In the view of unique offerings,
the tourism industry trend is now leaning towards underwater world concepts whereby hotels
and villas are built underwater, giving experience for the customers to get closer to coral reefs
and various fish species (Jenkins, 2016; Springer, 2016) and floating airports are in the
pipelines (Ros, 2016). However, unique services are not always favoured by several industries.
An example is the recent incident whereby a robot with a bomb was used to kill a shooter who
shot of 5 police officers in Dallas (Singer, 2016). Although the concept of using robots was
justified by the police to curb unnecessary losses of police officers’ lives, many civilians are
questioning the safety of the public in future (Singer, 2016). In the tourism industry too, which is
often blamed for excessive deforestation (Nepal, 2008, p. 191), pollution (Kousis, 2000, p. 469;
Nepal, 2000, p. 666) and ecological issues (Kuvan & Akan, 2005, p. 696; W. Li, 2004) for the
sake of building hotels and national parks, unique service offerings are sometimes not
welcomed. Hence, the very own concept of uniqueness may be controversial in the tourism
context which should be examined.
Pet concierge, soap concierge and ghost tours (Mutic, 2015), art classes and fireplace butlers
(Campbell, 2013) are some of the perks hotels offer to differentiate themselves with their
competitors. While so many interesting and unique services are created in the name of
innovative service offerings, what guests really look for in a hotel are totally against the so called
innovative offerings hotels claim to have. A survey conducted in 2014 by Choice Hotels
International exposes that 73% of business travellers prioritise location of a hotels while 61%
want quality rooms (Jones, 2014). Surprisingly, none of the so called uniqueness matter to
business guests (Jones, 2014). Academic studies on the other hand have varieties of features
that customers expect in hotels to increase their satisfaction which range from staff services to
security (Choi & Chu, 2001, p. 287). Astonishingly, even luxury hotel guests prefer in-room Wi-
Fi connection and basic bathroom facilities to satisfy them (Heo & Hyun, 2015, p. 165). While
luxury hotels are keen on improvising their service offerings, research proves that there are
guests who are unwilling to pay for unnecessary amenities in their rooms (Heo & Hyun, 2015, p.
167). Although past studies confirm that guests are already satisfied with basic amenities in
hotels (W. C. Kim & Mauborgne, 1997, p. 6), news on hotels which innovate constantly to
‘satisfy their guests’ is a matter of concern which needs to be addressed by future researchers.
1.2.2 Absorptive Capacity

Although firms successfully form strong networking with internal as well as external networks, it
takes absorptive capacity to learn and captivate useful information and knowledge before
utilising it (Cohen & Levinthal, 1990, p. 128; Ebers & Maurer, 2014; P. L. Robertson, Casali, &
Jacobson, 2012, p. 830). A firm’s absorptive capacity wholly depends on its employees’
345
capability to absorb knowledge from internal and external sources (Birdi, Leach, & Magadley,
2016, p. 23; Roberts, Galluch, Dinger, & Grover, 2012, p. 627). Even for an imitation to take
place, one should have greater capability to absorb knowledge (Sorenson, Rivkin, & Fleming,
2006, p. 995). According to Ingram and Baum (1997, p. 72), independent hotel chains have
lower absorptive capacity compared to chain hotels as access to crucial knowledge is collective
in chain hotels which enables them to learn constantly. However, absorptive capacity is heavily
dependent upon how quick a firm absorbs knowledge and utilise it in comparison to its rivals
(Hurmelinna-Laukkanen & Olander, 2014, p. 4). If a rival firm is quicker to absorb and to employ
any kind of innovation, it then would have a great market opportunity due to the speed of
introducing an innovation (Kessler, Bierly, & Gopalakrishnan, 2000; Vanhaverbeke, Belderbos,
Duysters, & Beerkens, 2015, p. 567). Thus, a lack of clarity on possessing absorptive capacity
and how speed a firm utilises it need to be explored in-depth.
Absorptive capacity is well applied in the tourism context via service failure literatures (Lewis &
McCann, 2004). Quick absorptive capacity during a service failure situation and timely
attentiveness is proven to improve customer justice perceptions (Karatepe, 2006, p. 86) and
satisfaction towards service encounters (Smith, Bolton, & Wagner, 1999, p. 369). Although
service failures are typical occurrences in the tourism industry, service employees play vigorous
parts in handling catastrophic aftermaths of such failures in timely manners (Tax & Brown, 2012,
p. 81). Hence, hotels are putting its employees under trainings to handle service failure
situations promptly (Karatepe, 2006, p. 87). Besides typical trainings, a report by Daily Mail
shows extraordinary trainings are also pertinent whereby Affinia Hotels train its front desk and
housekeeping employees to study customers’ body language to understand their needs
(Keneally, 2011). While hotels are keen on improving customer services, Dixon, Freeman, and
Toman (2010, p. 119) find excessive customer service may also backfire firms due to many
customers’ unresolved issues. Furthermore, absorptive capability is complex and difficult to be
adapted by all firms as a five star hotel may not be able to absorb and apply a budget hotel’s
concept as budget hotels have a basic business model to fulfil customers’ fundamental needs
only which may not be applicable to luxury hotels (Fottrell, 2013). Hence, the applicability of
absorptive capability may be challenging due to its inability to fit all firms.
1.2.3 Technological Capability

The tourism industry is claimed to be rapidly utilising technological capabilities to communicate
with their customers (Buhalis & Law, 2008, p. 609; Kumar, Kumar, & de Grosbois, 2008, p. 12;
Stamboulis & Skayannis, 2003, p. 35). From robot employees (e.g., receptionists, concierge,
housekeeping staffs and butlers) (Northfield, 2015) to hand-held devices for various in-room
purposes (television remote control, automated blinds and temperature) (Weed, 2013), hotels
are utilising technological advances in favour to them. Despite the increasing use of the
aforementioned technological devices, The Wall Street Journal has recently confirmed
disappointment of few hotel customers whereby human interaction is absent when robots are
involved (Kronsberg, 2016). Another academic research by Giebelhausen, Robinson, Sirianni,
and Brady (2014, p. 121) adds psychological discomfort as a consequence for customers that
deal with self-check-in machines in hotels. While hotels are briskly investing to incorporate
advanced technological systems (Kronsberg, 2016), customers’ view on the necessity of such
advanced technologies is questionable. As research proves that several customers are indeed
resistant to innovations (Heidenreich & Handrich, 2015, p. 894) the need to understand the
optimum level of technological advancements that are digested by customers should be given
consideration by researchers as well as hotels.
Technological capability has been researched from three major aspects; the process of
technological innovative capability (Utterback, 1971), antecedents of technological innovation
(Oyelaran-Oyeyinka & Lal, 2006) and outcomes of technological capability. Theoretical
346
evidences support numerous impacts of technology on different aspects which vary from
performance aspects (e.g., financial and operational) (Ham, Gon Kim, & Jeong, 2005, p. 291;
Kock, Gemünden, Salomo, & Schultz, 2011, p. 37; Oliver, 2001; Yam, Lo, Tang, & Lau, 2011),
innovation success (Frishammar & Hörte, 2005, p. 260; Lee & Wong, 2011; Van Riel, Lemmink,
& Ouwersloot, 2004, p. 356), future technological investment (Voudouris, Lioukas, Iatrelli, &
Caloghirou, 2012, p. 408) and production efficiency (Oliver, 2001). From the hotel context,
several scholars confirm that technological capability indeed increase new product development
(Schweitzer, Rau, Gassmann, & van den Hende, 2015, p. 858), customer satisfaction
(Chathoth, 2007, p. 405), reduced costs (Berger & Nakata, 2013, p. 1209; Swan & Allred, 2003,
p. 493), efficiency of front office and back office operations (Sheldon, 1983) and managerial
performance (Winata & Mia, 2005, p. 33). On the downsides of the technology, the
manufacturing industry has subsidised some distinctive insights concerning the dark sides of it
such as high strain as a result of working with machinery (Mullarkey, Jackson, Wall, Wilson, &
Grey-Taylor, 1997, p. 483), pressure to work overtime (Johansson & Aronsson, 1984) and
isolation from other employees (Buchanan & Bessant, 1985, p. 304). Despite the many perks of
the technological capabilities, hotels are reportedly not viewing technology as a fundamental
necessity to improve customer and employee experience (Chathoth et al., 2014, p. 188). It is
manifest that technology in hotels is rather viewed as a storage system that assists employees
to analyse customer based information (Chathoth et al., 2014, p. 188) which raises concerns if
the industry is indeed utilising existing technology. Hence, the issue concerning whether hotels
utilise or abandon technological capabilities needs further amplification.
2.0 SUMMARY
The paper has rigorously brought forward practical applications and academic discussions on
innovative capability dimensions such as product uniqueness, absorptive capability and
technological capability within the hotel industry. In addition to analysing applications of such
capabilities, outcomes of different innovative capabilities have also been expressed. Evidently,
there are numerous dimensions within innovative capability that remains unexplored by hotel
scholars despite practical applications such as the use of artificial intelligence, absorptive
capability and unique service offerings. Nonetheless, this paper has only covered a limited
number of innovative capability dimensions which appear to be missing in the academic
researches. Hence, future studies that carry reviews on innovative capability should emphasise
on more dimensions such as networking, green capability and knowledge flow capability and
how these are utilised in the hotel industry. In addition, empirical studies should be carried out
on the afore-discussed dimensions to expose the degree to which these dimensions could affect
different outcome variables.
347
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363
A STUDY ON THE INTENTION TO INVEST IN UNIT TRUSTS AMONG

WORKING ADULTS AT KUALA LUMPUR: AN APPLICATION OF THE
TPB MODEL
JOEL THAM KAH MARN
International University Of Malaya-Wales,Malaysia
Abstract
With the tremendous growth in the unit trusts industry globally in the last two decades, it has sparked the
interests among researchers to study the unit trusts industry from the development and performance
aspects. Therefore, this study intends to investigate whether risk and return, social influence and financial
literacy have significant impact on the intention to invest in unit trusts among working adults at Kuala Lumpur
with the application of Theory of Planned Behavior (TPB) model. The collection of data was conducted
using the self-administration approach. The sample comprised of 150 working adults in Kuala Lumpur.
Pearson Correlation and Multiple Regression Analysis are employed to test the hypotheses developed in
this study. The findings show that all the independent variables (risk and return, social influence and
financial literacy) have significant relationship with the dependent variable (the intention to invest in unit
trusts among working adults in Kuala Lumpur) with financial literacy possesses the greatest impact
(β=0.294) while risk and return with the least impact (β=0.186). Practically speaking, this study can
contribute to the unit trust industry by garnering greater insights for management in the devising of
strategies of increasing the participation of working adults in the investment of unit trusts.
Keywords: Unit Trust, Investment Intention, Planned Behavior
INTRODUCTION
Unit trust is an indirect collective investment scheme which is professionally managed by fund
managers. It allows investors to meet their objectives by pooling their funds to invest in diverse securities
and other assets. Over the past two decades, the global unit trusts industry has experienced strong
growth in assets. The number of unit trusts globally increased from 66,360 in 2007 to 79,670
approximately in 2014 and the total net assets (TNA) of unit trusts worldwide had reached USD 31.38
trillion in the same year as well. In USA alone, the industry is comprised of 9000 unit trusts with managed
assets totaling approximately USD 15.85 trillion in 2014 (Statista, 2014). In the Malaysian scene, unit
trusts industry continued to expand with total net asset value (NAV) stood at RM 343.018 billion which
itself represents 20.8% of the market capitalization of Bursa Malaysia in 2014 (FIMM, 2014). Due to its
remarkable growth, there has been an increase in the amount of studies focusing on the development
and performance trends of unit trusts in Malaysia (Choong, Thim, Fie, & Ng, 2012) and (Abdullah &
Abdullah, 2009). However, these prior studies did not emphasize much on the determinants that drive the
investment in unit trusts. Therefore, the present study aims to delve into the factors that influence the
behavioral intention among working adults to invest in unit trusts at Kuala Lumpur by adopting the TPB
framework. In particular, the study examines the influences of risk-return relationships, social factors and
financial literacy in the investment intention of working class adults in the unit trust market.
LITERATURE REVIEW
Risk and Return
364
In the context of previous studies, risk and return can be considered as a very important factor that
affects the investor’s intention to invest in unit trust. Investor attitude towards unit trusts depend largely on
his/her perception regarding the returns and risks this class of investment. Previous studies conclude that
most of the investors seek for return with a consideration of corresponding level of risk (Baker, B.Hargrove,
& Haslem, 1977; Walia & Kiran, 2009; Ali A., 2011). Moreover, risk bearing capacity also influences an
individual’s behavior to invest in as well (Shafi, 2014). Schmidt (2010) found that the prospect of higher
return are an important factor driving investors’ interest in any financial product in the market and is the
major impetus for accepting risky investments such as those with unit trusts
Social Influences
A considerable number of studies in the literature show that social influence is one of the major
factors that affect the investment decision making of investors. Shanmugham & K.Ramya (2012), for
instance found that there is a highly positive relationship between the social influences and attitude towards
trading. Akba, Salman, S.Mughal, Mehmood, & Makarevic (2016} claimed that most of investors in
Pakistan make their investments decision based on the recommendations from family members, friends and
brokers. Shafi (2014) which also employed the TBP model conclude that social influence have a significant
influence on the intention to invest in unit trusts (Shafi, 2014).
Financial Literacy
Numerous studies have shown that financial literacy have significant influences towards
investment trading. According to Rooji, Lusardi, & Alessie (2007), financial literacy level is one of the
social and behavioral factors that affects independent stock market participation. It is found that financial
literacy is necessary in aiding investors in assessing the viability of financial products. Lower level of
financial literacy may inhibit participation of investors in financial products. Volpe, Kotel, & Chen, (2002)
have found that low levels of financial knowledge may lead to investors holding wrong opinions and limit
their ability to make correct investment decision. In another study, it was found that investors that lack
financial literacy will have misconceptions on the impact of mutual fund fees as well as on the prospects of
long term returns (L.Elan, 2011). Lastly, Ajzen (1991) found that the more resources and opportunities an
individual believes that they possess, the fewer obstacles they face and thus this will prompt them to have
a stronger intention to invest.
CONCEPTUAL FRAMEWORK
Figure 1: Proposed Conceptual Framework
365
This study examines the following research hypotheses:
H1: Risk and return has a significant influence on intention to invest in unit trusts among Malaysia’s working
adults
H2: Social influence has a significant influence on intentions to invest in unit trusts among Malaysia’s
working adults
H3: Financial literacy has a significant influence on intentions to invest in unit trusts among Malaysia’s
working adults
Sampling Design
This study employs judgmental sampling for the purpose of research. Judgmental sampling is a
non-probability sampling method and is used when the sample chosen is through the judgment of the
researcher (Dudovskiy, 2016). The sampling target group will be the working adults. Aside from that, the
target group also needs to be individuals who possessed knowledge or are exposed to unit trusts
previously. Hence, we need to select our targets from the working adults via our judgment. In addition,
judgmental sampling is chosen as it is effective in aspects of cost and time thus suitable for our study as
there is limited sources of primary data available (Dudovskiy, 2016). As recommended by Newby (2014),
a minimum size of 30 respondents is required for each sub category i.e. variables of the study, thus a total
of 120 working adults that meet the specific requirements are approached for this research. The target
location of this study focuses on Kuala Lumpur.
Research Procedure
This study is a quantitative research which is used to determine a definitive causal relationship
between the independent variables under study (Risk/Return, Social factors and Financial Literacy) with
the dependent variable (Intention to invest in Unit Trusts). The study focuses on individual investors as its
unit of study and employs a cross sectional focus in terms of time horizon.
Research Instrument
The questionnaire employed in this study are divided into two parts namely:- Part A that focuses
on demographic data and Part B which delve into the research variables under study. The questions on the
research variables are adopted from established studies and are chosen for their suitability and relevancy
for the purpose of this study. Details of the instruments are provided below in Table 1.
Table 1: Research Instrument

Sections No. Items Citations
A (Demographic Profile) 4 -
B1 (Risk and Return) 4 (Nguyen, 2015)
B2 (Financial Literacy) 4 (Thung, Kai, Nie, Chiun, & Tsen,
2012)
B3 (Social Influence) 4 (Thung, Kai, Nie, Chiun, & Tsen,
2012)
C (Intention to invest in Unit Trust) 3 (Amin, Rahman, Jr, & Hwa,
2010)
366
DATA ANALYSIS
The hypothesized model was analyzed using the correlation and multiple regression analysis
Correlation was used to quantify the association between the variables where correlation coefficient were
estimated specifically using the Pearson Product Moment correlation coefficient. Furthermore regression
analysis was conducted to study the influence of independent variables to dependent variable which
indicated by the β, t and R2.
The Pearson Correlations Analysis and Regression Analysis
Correlation outputs between the studied construct are shown in Table 2- Table 4. Generally, the
Pearson correlations between the dependent variables and each of the independent variables were found to
be significantly correlated. So, regression analysis was performed, introducing all the independent variables
simultaneously.
Table 2: Pearson Correlation Analysis between risk and return and intention to invest in unit trusts
Z score Z score
(Risk and Return) (Intention to invest in
unit trusts)
Pearson Correlation 1 .351**
Z score (Risk and Return) Sig. (2-tailed) .000
N 150 150
Pearson Correlation .351** 1
Z score (Intention to invest in
Sig. (2-tailed) .000
unit trusts)
N 150 150
**. Correlation is significant at the 0.01 level (2-tailed).
Table 3: Pearson Correlation Analysis between financial literacy and intention to invest in unit trusts
Z score Z score
(Financial Literacy) (Intention to invest
in unit trusts)
Z score (Financial Literacy) Sig. (2-tailed) .000
N 150 150
Z score (Intention to invest
in unit trusts)
N 150 150
367
Table 4: Pearson Correlation Analysis between social factors and intention to invest in unit trusts
Z score Z score
(Social Influences) (Intention to invest
in unit trusts)
Z score (Social Influences) Sig. (2-tailed) .000
N 150 150
Z score (Intention to invest
in unit trusts)
N 150 150
Results of regression analysis is shown in Table 5 and Table 6. The R2 value of 0.277 indicate that
the three independent variables in the model accounted for 27.7% of the variance of the dependent variable.
Table 6 also clearly shows that all three dependent variables (Risk/Return, Social factors and Financial
Literacy) have a significant relationship with the dependent variable (Intention to inest in unit trust) at the
5% level. Therefore all the three hypotheses are supported statistically.
Table 5: Summary of Regression Coefficients
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .526a .277 .262 .85892490
a. Predictors: (Constant), Z score (Social Influences), Z score (Risk and Return), Z score (Financial Literacy)
b. Dependent Variable: Intention to invest in unit trusts
Table 6: Summary of Regression Coefficients
Unstandardized Standardized 95.0% Confidence
Coefficients Coefficients Interval for B
Lower Upper
Model B Std. Error Beta t Sig. Bound Bound
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(Constant) 1.295E-15 .070 .000 1.000 -.139 .139
Z score (Risk and .186 .077 .186 2.428 .016 .035 .337
Return)
Z score (Financial .294 .079 .294 3.731 .000 .138 .449
Literacy)
Z score (Social .210 .080 .210 2.618 .010 .051 .368
Influences)
a. Dependent Variable: Z score (Intention to invest in unit trusts)
Discussions
The purpose of this study, was to examine the factors that could influence the intention to invest in
unit trusts among working adults in Malaysia. The well-established model of TBP was used as the basis of
the research model. The TBP provides a theoretical framework of behavioral determinants consisting of
risk and return factors, social factors and financial literacy. Hypothesis 1, predicts that risk and return profile
will positively influence intention to invest and the results of this study statistically supports it. The findings
are found to be consistent with previous studies (Ali A., 2011; Walia & Kiran, 2009; Shafi, 2014; Schmidt,
2010; Baker, Hargrove, & Haslem, 1977)
With regards to hypothesis 2, findings showed that social factors have a significant bearing on the
intention to invest in unit trust as well. These findings are once again consistent with prior research that
indicate with greater level of social influences, the intention to invest in unit trust also correspondingly
increases as well (Shanmugham & K.Ramya, 2012;; Shafi, 2014; Akba, Salman, S.Mughal, Mehmood;
Makarevic, 2016)
Finally the study reveals that financial literacy have a positive impact on the level of intention to
invest this market. This is consistent with previous studies which contend that with higher levels of financial
literacy, investors should have greater capacity to invest in financial products like unit trusts ( Rooji, Lusardi,
& Alessie, 2007; P.Volpe, E.Kotel, & Chen, 2002; L.Elan, 2011).
Implications of Study
Policy Makers
This study will help the policy makers to gain a better understanding on the intention to invest in
unit trusts among working adults in Kuala Lumpur. The results indicates that financial literacy represents
the strongest impact on the intention to invest in unit trusts in this study. Thus by elevating the financial
literacy level, working adults are more likely to invest in unit trusts. Besides, having a fundamental financial
literacy is also imperative for every individual as this will help them to deal with their every day’s financial
issues more effectively as well.
Therefore, policy makers need to devise an effective financial education program which is suitable
for people with different backgrounds with the aim of increasing their financial literacy level. Government
should even start to implement financial education programs at the tertiary and secondary school level.
Unit trusts industry
369
The findings of this study could benefits the unit trusts industry in allowing fund managers and
marketers to be comprehending the intention of working adults to invest in unit trusts in Kuala Lumpur.
Having recognized that risk and return plays a crucial impact in attracting investment from working adults,
unit trust companies should develop a wide range of funds with different risk and return profile to target
different segments. The key to increasing investor participation in unit trusts thus lies in understanding the
different risk appetite and return profiles of the specific clientele.
Theoretical Implication
From the view of theoretical perspectives, this study emphasizes on the importance of the
application of TPB model in determining working adults’ intention to invest in unit trusts, particularly in
Kuala Lumpur. The study also have broaden an understanding of factors that could positively impact the
intention to invest in tis particular segment of the financial markets.
REFERENCES
Abdullah, N. A., & Abdullah, N. A. (2009). The Performance of Malaysian Unit Trusts Investing in
Domestic Versus International Markets. Asian Academic of Management Journal of Accounting and
Finance, 5(2), 77-100.
Ajzen, I. (1991). The Theory Of Planned Behavior. Organizational Behavior and Human Decision
Processes, 50, 179-211.
Akba, M., Salman, A., S.Mughal, K., Mehmood, F., & Makarevic, N. (2016). Factors Affecting the
Individual Decision Making: A Case Study of Islamabad Stock Exchange. European Journal of Economic
Studies, 15(1), 242-258.
Ali, A. (2011). Predicting Individual Investors' Intention to Invest: An Experimantal Analysis Of Attitude As
A Mediator. International Journal of Social, Behavioral, Education, Economic, Business and Industrial
Engineering, 5(2), 157-164.
Baker, H. K., B.Hargrove, M., & Haslem, J. A. (1977). An Empirical Analysis of the Risk-Return
Preferences of Individual Investors. Journal of Financial and Quantitative Analysis, 12(3), 377-389.
Choong, Y. V., Thim, C. K., Fie, D. Y., & Ng, C. H. (2012). Development and Performance Trends of
Malaysian Unit Trusts. Jornal of Modern Accounting and Auditing, 8(12), 1804-1813.
Dudovskiy, J. (2016, July). Purposive sampling. Retrieved from Research Methodology: http://research-
methodology.net/sampling-in-primary-data-collection/purposive-sampling/
FIMM. (2014). Protecting Investors' Interest: Annual Report. Kuala Lumpur. Retrieved from
https://www.fimm.com.my/wp-content/uploads/2015/06/FIMM_Annual_Report_2014_Web.pdf
L.Elan, S. (2011). Financial Literacy among Retail Investors in the United States.
Newby, P. (2014). In Research Methods For Education, Second Edition. New York: Routledge.
P.Volpe, R., E.Kotel, J., & Chen, H. (2002). A Survey of Investment Literacy Among Online Investors.
Financial Counselling and Planning, 13(1), 1-15.
370
Rooji, M. v., Lusardi, A., & Alessie, R. (2007, September). Financial Literacy And Stock Market
Participation. DNB Working Paper(146), 1-50.
Schmidt, N. (2010). What Drives Investments Into Mutual Funds? Applying The Theory Of Planned
Behavior To Individuals’ Willingness And Intention To Purchase Mutual Funds. 1-39.
Shafi, D. M. (2014). Determinants Influencing Individual Investor Bahavior in Stock Market: A Cross
Country Research Survey. Arabian Journal of Business and Management Review, 2(1), 60-66.
Shafi, D. M. (2014). Determinants Influencing Individual Investor Bahavior in Stock Market: A Cross
Country Research Survey. Arabian Journal of Business and Management Review, 2(1), 60-66.
Shanmugham, D., & K.Ramya. (2012). Impact Of Social Factors On Individual Investors’ Trading
Behaviour. 2nd Annual International Conference on Accounting and Finance (AF 2012), 237-246.
Statista. (2014). Mutual Funds-Statistics and Facts. Retrieved from Statista:

https://www.statista.com/topics/1441/mutual-funds/
Walia, N., & Kiran, D. (2009). An Analysis of Investor's Risk Perception towards Mutual Fund Services.
International Journal of Business and Management, 4(5), 106-120.
371
SENI KALIGRAFI KHAT (KUFI) DALAM PERKEMBANGAN INDUSTRI

KREATIF DI KEDAH
Nor Asmiza binti Zainudi1, Rosnah binti Rahmat2 & Noraiemi binti Hamid3
1
Kolej Komuniti Cawangan Jerlun, Kodiang,
Kedah Email: miza.kolejkomuniti@gmail.com
2
Kolej Komuniti Cawangan Jerlun, Kodiang, Kedah
Email: rosdcni@yahoo.com.my
3
Kolej Komuniti Cawangan Jerlun, Kodiang, Kedah
Email: noraiemihamid@gmail.com
ABSTRAK
Kaligrafi khat (kufi) adalah kaligrafi Arab tertua dan merupakan sumber seluruh kaligrafi
arab. Calligraphy bermaksud tulisan yang cantik. (DBP, 1996). Kini seni kufi menjadi satu
produk yang mampu bersaing dengan karya seni visual yang lain dalam industri seni
kreatif. Ia menjadi suatu seni yang digunakan oleh para seniman sebagai alat mengeluarkan
ekspresi dan kreativiti mereka. Sejajar dengan saranan kerajaan yang mahukan pendedahan
mengenai seni khat ini kepada anak muda zaman sekarang. Kertas konsep bagi kajian ini
bertujuan untuk mengenalpasti tahap perkembangan industri kreatif dalam bidang seni
kaligrafi khat (kufi) di Kedah serta mengenalpasti faktor-faktor yang mempengaruhi
perkembangannya. Kajian ini akan dilakukan secara kuantitatif melalui set soal selidik
terpiawai yang akan diedarkan kepada penggiat seni kufi (usahawan dan komuniti) serta
soalan temubual berstruktur yang akan dijalankan oleh penyelidik bersama responden
secara ‘purporsive sampling’. Penyelidik menjangkakan dapatan bagi kajian ini akan terdapat
indikator yang jelas terhadap perkembangannya. Sementara bagi faktor-faktor jangkaan yang
mempengaruhi perkembangan industi khat ini adalah banyak dipengaruhi oleh ketiadaan
minat generasi sekarang untuk menyambung usaha warisan generasi dulu dan sumber
pengajaran dan pembelajaran seni khat itu sendiri.
KATA KUNCI: kaligrafi, khat, kufi, tahap perkembangan, faktor mempengaruhi
PENGENALAN
Khat kufi adalah merupakan satu warisan kesenian yang berharga kepada orang Muslim.
Namun, dalam era globalisasi kini terdapat banyak ancaman dan juga masalah dalam
kesenian ini. Hal ini juga menyebabkan generasi muda pada masa sekarang kurang
menghargai dan kurang mengetahui nilai dalam pembuatan seni ini. Selain itu, generasi muda
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atau masyarakat itu kurang mengetahui atau menyedari bahawa mengenai pembuatan seni
khat kufi mempunyai nilai estetika yang tersendiri dalam pembuatannya mahupun reka
bentuknya sendiri. Kini seni kufi megah menghiasi dinding-dinding kediaman dan pejabat.
Namun sejauh mana usahawan seni kufi ini mampu bersaing dalam industri kreatif ini? Kajian
Nor Hartini Hanapi (2015), mendapati bahawa kurangnya penyelidikan mengenai khat kufi
terutama dari segi cara atau proses pembuatan seni khat kufi oleh pengkaji-pengkaji yang
lepas. Oleh yang demikian sumber literatur agak terhad disebabkan oleh kurangnya
penyelidikan secara ilmiah dilakukan mengenai bidang kajian tersebut. Selain itu, terdapat
juga penyelidikan yang lalu yang tidak jelas dari segi perkembangan seni khat kufi ini akibat
kekurangan maklumat yang diperoleh mengenai bidang kajian ini.
PERMASALAHAN KAJIAN
Seni kaligrafi khat (kufi) zaman kini berdepan dengan banyak ancaman dan masalah. Antara
puncanya adalah pendedahan seni kaligrafi khat (kufi) itu sendiri. Menurut (Alias, 2011), untuk
menghasilkan tulisan khat yang baik ia memerlukan kaedah pengajaran dan pembelajaran
yang betul selain kesabaran, ketelitian dan masa yang agak lama. Namun seni kufi kini mula
memasuki industri keatif di mana ianya telah menjadi hiasan dinding-dinding rumah serta
pejabat dan bukan tertumpu kepada masjid sahaja. Seperti yang diperkatakan oleh Mohd
Bakhir Hj. Abdullah (2006), khat Arab telah berkembang di Tanah Melayu sejak ratusan tahun,
malah ia telah diguna pakai di dalam pengurusan di semua peringkat, misalnya di Kedah, khat
Arab digunakan di dalam suratan dan perutusan rasmi kerajaan. Tetapi sejauh mana
fenomena ini berkembang di Kedah? Melihat kepada situasi tersebut yang mendorong
pengkaji untuk membuat kajian mengenai “Seni Kaligrafi Khat (Kufi) Dalam Perkembangan
Industri Kreatif Di Kedah”.
PERSOALAN KAJIAN
Kajian ini dijalankan adalah untuk mengetahui tahap perkembangan industri kreatif dalam
bidang seni kaligrafi khat (kufi) dan mengenalpasti faktor-faktor yang mempengaruhi tahap
perkembangannya. Antara persoalan tersebut:
a) Apakah tahap perkembangan industri kreatif dalam bidang seni kaligrafi khat (kufi) di sekitar
Kedah?
b) Apakah faktor-faktor yang mempengaruhi perkembangan industri kreatif dalam bidang seni
kaligrafi khat (kufi) di sekitar Kedah?
OBJEKTIF
a) Mengenalpasti tahap perkembangan industri kreatif dalam bidang seni kaligrafi khat (kufi) di
sekitar Kedah.
b) Mengenalpasti faktor-faktor yang mempengaruhi perkembangan industri kreatif dalam
bidang seni kaligrafi khat (kufi) di sekitar Kedah.
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ULASAN LITERATUR
Khairunnisa (2004) berkata “lukisan kaligrafi Islam” menjadi tema utama dalam kegiatan
melukis harus dibezakan dengan adanya “kaligrafi Islam murni” Yang kedua ia merujuk
kepada karya-karya tulisan tanpa warna yang mengutamakan kaligrafi Islam dalam bentuk
huruf yang telah baku atau al-khat almansub (seperti al-aqlam al-sittah atau the six pens).
Sementara yang pertama menampilkan karya lukis dengan warna yang bertemakan kaligrafi
Islam dalam bentuk-bentuk yang sebahagian besarnya bebas, tanpa mengacu kepada kaedah
baku. “lukisan kaligrafi Islam” dihasilkan oleh para pelukis yang sebahagian besarnya lulusan
daripada Akademi Seni Rupa berdasarkan kemurnian huruf-hurufnya. “Lukisan kaligrafi Islam”
dibezakan menjadi dua kelompok. Pertama adalah “Lukisan kaligrafi murni”, iaitu lukisan yang
mengambil kaligrafi sebagai tema, tanpa mengubahnya. Kedua adalah “lukisan kaligrafi
bebas”, iaitu lukisan yang mengutamakan kaligrafi dengan bentuk-bentuk yang bebas, tanpa
terikat standard baku atau al-khat al-mansub tadi (Khairunnisa 2004).
Seni lukis kaligrafi, satu bentuk karya seni yang berlandaskan oleh pertimbangan nilai estetika
dan keagamaan, serta mempunyai fungsi penting dalam kaligrafi khat. Secara fizikalnya, ia
dapat berfungsi untuk dekorasi, dan secara ideal ia dapat dipakai sebagai media komunikasi
untuk menyampaikan “misi dakwah” kepada peminat agar mendapat sentuhan nilai atau rasa
keagamaan (Hanapi, 2015).
Senario di Malaysia tidak dapat dinafikan karya seni khat banyak memberikan sumbangan
serta simbolik kepada pembangunan masyarakat. Ini termasuklah karya seni khat yang
berbentuk grafik yang memainkan peranan sebagai penyampai maklumat bagi pembangunan
bidang seperti pendidikan, penulisan, perhiasan, pengiklanan, politik, ekonomi sosial, dan
budaya negara ini. Karya seni khat kntemporari kini banyak ditemui dalam bentuk grafik
seperti logo, plak-plak perasmian, tanda-tanda jalan, masjid, makam, teks lama, watikah,
poster dan hiasan yang membawa maklumat yang dipertanggungjawab dalam unsur-unsur
pendidikan kepada masyarakat. Berbeza pada peringkat permulaan Islam, tulisan khat
digunakan untuk menulis ayat-ayat al-Quran, hadis, surat kiriman, surat perjanjian dalam
peperangan, surat jual beli, surat memerdekakan hamba, surut menyurat urusan kerajaan,
mohor kerajaan dan raja-raja, siaran-siaran daripada istana untuk rakyat, menyalin kitab dan
catatan sastera, prosa dan puisi. Selain itu, khat juga diukir pada batu nisan dan diabadikan
pada masjid dan istana. Perkembangan seterusnya lebih meluas dan digunakan untuk
menulis poster, iklan surat khabar, novel, cerpen, tulisan nama jalan, mencatat nota-nota
pelajaran, buku teks, dan ditulis pada pelbagai media untuk mendapat berkat (Mohammed
Yusof, 2001).
Menurut Abdul Rahman (2011), dalam sejarah kesenian Islam, seni khat ini tidak boleh
disamakan dengan bentuk seni yang lain kerana mempunyai kaitan secara langsung dengan
agama yang didatangkan daripada langit (samawi), iaitu puncak seni yang dianggap suci
(sakral). Hal ini berbeza dengan seni yang dihasilkan dengan seni sekular yang ada. Khat
merupakan salah satu kesenian Islam yang dikagumi oleh umat Islam. Maka dengan itu, seni
khat wajar diminati oleh setiap lapisan masyarakat Islam daripada raja sehinggalah
masyarakat umum (Mohamad, Osman & Puteh, 2018).
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PROSES PENYELIDIKAN
a) Kajian Literatur
b) Skop Kajian
c) Penemuan Awal
d) Kenyataan Masalah
e) Kaji Selidik
f) Analisis Data
g) Penemuan Kajian
h) Penulisan
CARTA GANTT PELAKSANAAN
Aktiviti Okt Nov Dis Jan Feb Mac Apr Mei Jun Jul Okt Nov
Penyelidikan 2018 2018 2018 2019 2019 2019 2019 2019 2019 2019 2019 2019
Rujukan &
Semakan
Awal
Pilot Survey
Sorotan
Literatur
Kaji Soal
Selidik
Permasalaha
n
Pengumpula
n Data
Analisis Data
Pemprosesa
n dan
Kemasukan
Data
Kemaskini
Hasil
penemuan
375
Penulisan
Jurnal
Penulisan
Laporan
JANGKAAN HASIL KAJIAN
a) Menerusi literatur lepas terdapat penemuan yang menyatakan bahawa kajian mengenai
tulisan khat tidak membawa kepada makna yang jelas untuk perkembangannya, tapi
berdasarkan kepada kajian ini penyelidik menjangkakan akan terdapat makna yang jelas
terhadap perkembangannya kerana sejak 5 tahun dahulu tiada kajian terkini. Oleh itu,
kajian ini akan memperlihatkan tahap perkembangan industri khat ini, khususnya di
Kedah telah bertambah baik.
b) Faktor-faktor jangkaan perkembangan industi khat ini adalah banyak dipengaruhi oleh
ketiadaan minat generasi sekarang untuk menyambung usaha warisan generasi dulu.
c) Seterusnya faktor-faktor yang dijangkakan menyumbang kepada perkembangan industri
seni khat ini ialah sumber pengajaran dan pembelajaran seni khat itu sendiri samada di
pusat-pusat Islam atau sekolah-sekolah agama di sekitar Kedah.
RUJUKAN
Khairiah Mohamad, Khazri Osman, Anuar Puteh. (2018). Sejarah Perkembangan Seni Khat
Dalam Kesenian Islam di Nusantara. Fikiran Masyarakat, Vol. 6, No. 1, 2018. Universiti
Kebangsaaan Malaysia.
Nor Hartini Hanapi. (2015). Pembuatan Seni Kaligrafi Khat Di Jabatan Agama Islam, Sarawak.
Sarawak: Universiti Malaysia Sarawak.
Latifah Alias. (2011). Kaedah Dan Pendekatan Pengajaran Seni Khat: Satu Kajian Di Johor
Bahru. Johor: Universiti Teknologi Malaysia.
Abdul Rahman Hj. Chik Tajuddin. (2011). Khat dan Pena Persepsi & Penerimaan Masyarakat.
Universiti Pendidikan Sultan Idris: Perpustakaan Negara Malaysia.
Mohd Bakhir Hj Abdullah. (2006). Sumbangan Kaligrafi Arab Dalam Kesenian Islam: Suatu
Kajian Sejarah: Universiti Islam Antarabangsa Malaysia.
376
Mohammed Yusof Abu Bakar. (2001). Seni Khat Arab: Asal Usul dan Perkembangannya
Hingga Ke Masa Kini (Makalah). Petaling Jaya.
Jainal Sakiban Al-Jawhari. (2001). Mukadimah Seni Khat. Persatuan Seni Khat Kebangsaan,
Cawangan Johor Baharu.
Dewan Bahasa dan Pustaka. (1996). Glosari Calligraphy. Kuala Lumpur: Dewan Bahasa dan
Pustaka.
Kang Kyoung Seock. (1990). Perkembangan Tulisan Jawi dalam Masyarakat Melayu. Kuala
Lumpur: Dewan Bahasa dan Pustaka.
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KEARIFAN TEMPATAN MASYARAKAT MELAYU NEGERI SEMBILAN DALAM

MEKANISMA REKABENTUK PEMBUNGKUSAN MAKANAN TRADISIONAL TAMPIN
Suzarina Bt Suboh1, Prof Madya Dr Abd Halim B. Husin2,
Akademi Seni Dan Warisan Kebangsaan ASWARA, Kuala Lumpur

ochumy@yahoo.com1
Abstrak
Malaysia terkenal dengan kepelbagaian bangsa, agama, dan budaya. Aspek tersebut menjadi
penyumbang kepada perkembangan pemakanan tradisional setiap kaum yang turut mempengaruhi
rekabentuk pembungkusan makanan di Malaysia. Pembungkusan makanan kini telah mengikut arus
kemodenan dan teknologi dengan menggunakan bahan plastik dan kertas. Justeru objektif utama
penyelidikan ini adalah untuk mengenali dengan lebih mendalam kearifan tempatan masyarakat melayu
di daerah Tampin, Negeri Sembilan yang mereka bentuk pembungkusan makanan tradisional dengan
menggunakan bahan alami. Makanan tradisional yang di kaji adalah penganan yang di bungkus di dalam
tampin. Penyelidikan ini mengetengahkan dan memartabatkan rekabentuk pembungkusan makanan
tradisional masyarakat Melayu di daerah Tampin melalui keunikan sesuatu pembungkusan alami.
Penyelidikan ini turut mengkaji berkenaan daya tarikan rekabentuk pembungkusan makanan dan teknik
pembuatannya. Rekabentuk Penyelidikan ini dalah kajian kes yang menggunakan kaedah penyelidikan
kualitatif. Pendedahan mengenai keunikan dan falsafah kepada rekabentuk pembungkusan makanan
tradisional masyarakat Melayu yang menggunakan sumber alami perlu dikaji dan di perkemas lagi supaya
masyarakat di Malaysia khususnya mengetahui tentang keunikan sesuatu pembungkusan makanan itu
agar tidak di lupakan untuk generasi yang akan datang.
Kata kunci: Kearifan Tempatan. Rekabentuk Pembungkusan Alami. Tampin.
PENGENALAN
Makanan tradisional perlu dikekalkan demi kesinambungan tamadun bangsa. Melaluinya, kita dapat
mengetahui asal usul kita. Tidak ada yang lama maka tidak adalah yang baharu. Ungkapan sebegitu
kedengaran cukup mudah, hakikatnya untuk mengekal dan mempertahankan sesuatu yang lama agar
tidak dihakis oleh yang baharu memang sesuatu yang sukar. Begitu juga nasib yang dialami oleh
sesetengah makanan tradisi Melayu yang hari ini ada antaranya hampir tidak diketahui kewujudannya.
378
Bukan sahaja haiwan diancam kepupusan, malah banyak makanan tradisional Melayu juga menghadapi
masalah sama hingga sesetengahnya hanya ditemui pada musim perayaan seperti Hari Raya Aidilfitri atau
majlis keraian tertentu. Kalau ditanya pada generasi hari tentang ketupat daun tebu atau daun buluh,
lemang tepung, ketupat ubi kayu, apam johol, dodol kukus tahi minyak, brengkes, lemper abon, pulut
kukus dalam periuk kera dan pelbagai lagi, pasti ramai terpinga-pinga kerana tidak pernah mendengar
nama jauh sekala melihatnya. Sebenarnya, setiap negeri di Malaysia mempunyai pelbagai jenis makanan
tradisi yang mencerminkan identiti serta keunikan tersendiri. Sesetengah makanan tersebut tidak dibuat
sepanjang masa untuk tujuan pasaran, sebaliknya lebih kepada juadah keluarga atau untuk tetamu yang
berkunjung.
Dalam kajian ini, penyelidik telah memilih untuk mengkaji makanan tradisional Melayu masyarakat di
daerah Tampin, Negeri Sembilan iaitu penganan atau dodol. Seperti yang kita sedia maklum, setiap kaum
di Malaysia ini mempunyai sejarah tentang makanan tradisional masing-masing. Makanan tradisional
masyarakat Melayu ini ada di antaranya hampir di lupakan dan tidak diketahui oleh generasi kini. Namun
bukan makanan tradisional menjadi fokus utama penyelidikan ini malah penyelidikan ini lebih kepada
faktor rekabentuk pembungkusannya. Penyelidikan ini bukan sahaja ingin menyingkap dan
mendokumentasikan semula makanan tradisional Melayu daerah Tampin malah menyelidik dari segi
kearifan masyarakat melayu di daerah Tampin dalam menghasilkan satu rekabentuk pembungkusan yang
unik. Penyelidikan ini juga mengkaji secara khusus tentang penggunaaan bahan dari sumber alami sebagai
bahan pembungkusan makanan malah menyingkap dari sudut falsafah dan budaya melayu.
1.2 LATAR BELAKANG KAJIAN.
Pembungkusan adalah satu mekanisme yang menggunakan kaedah sains dan teknologi dalam
memelihara produk bagi tujuan penyimpanan, pengedaran, penggunaan dan jualan. Pembungkusan
melibatkan proses reka bentuk, pemasaran dan penilaian. Di samping itu pembungkusan makanan turut
dikaitkan dengan pelbagai elemen yang boleh memberi kesan terhadap sesuatu makanan itu untuk lebih
kekal lama dan aroma makanan itu sendiri. Dalam masayarakat melayu terdapat pelbagai makanan yang
dibungkus dan dibaluti dengan menggunakan sumber sumber alam seperti Seperti Apam Johol yang
menggunakan daun rambai untuk membungkus, Tapai yang menggunakan daun getah, daun keladi, daun
maru dan daun ketapang. Penggunaan daun pisang untuk membungkus makanan seprti botok-botok,
lepat, nasik lemak, brengkes, pulut selimut, koci, jongkong, abuk abuk, ketupat, lemper abon dan pulut
inti. Daun pandan di anyam bagi membungkus dodol, selain menggunakan upih pinang dan kulit jagung
379
bagi membungkus dodol, wajik dan kesirat. Keunikan penggunaan sumber alami ini dalam pembungkusan
makanan tradisi Melayu ini harus di dokumentasikan agar ia tidak luput di telan zaman. Kepandaian
mencipta reka bentuk pembungkusan ini menunjukkan kerifan tempatan masyarakat setempat. Kearifan
tempatan adalah pengetahuan yang terkumpul dalam yang terkumpul dalam amalan komuniti di
sesebuah kawasan. Namun, tidak dinafikan sesebuah kawasan itu memiliki perbezaan dari segi etnik,
sosial, aset budaya dan latar belakang sejarah (Yin, 2003). Ilmu pengetahuan dan kearifan sesebuah
komunti adalah berguna dan relevan untuk dikumpulkan sebagai langkah pemeliharaan. Justeru
penyelidikan ini menyingkap kearifan masyarakat daerah Tampin membuat rekabentuk pembungkusan
makanan tradisional daripada bahan alami. Tampin sinonim dengan nama bagi salah satu daerah di Negeri
Sembilan yang berkeluasan 85,349 hektar. Daerah Tampin mempunyai seramai 89,300 orang penduduk
yang terdiri daripada pelbagai bangsa dan budaya. Tampin merupakan sebuah bandar yang terletak di
antara sempadan Negeri Sembilan dan Negeri Melaka. Asal-usul nama Tampin adalah daripada bekas
makanan Tampin yang diperbuat daripada daun mengkuang. Makanan yang biasanya diisi di dalam bekas
tersebut adalah dodol atau penganan. Tampin merupakan rekabentuk pembungkusan makanan
tradisional melayu yang di anyam melalui keraifan tempatan masyarakat di daerah Tampin.
PENYATAAN MASALAH
Dalam fenomena arus kemodenan kini lambakan pelbagai makanan luar negara di perkenalkan dan
menjadi pilihat rakyat di Malaysia. Dalam pada itu, Pengarah Bahagian Warisan Tidak Ketara, Jabatan
Warisan Negara (JWN), Mohamad Muda Bahadin, tidak menolak pendapat bahawa kebanjiran kuih-muih
moden yang mendapat permintaan ramai membuatkan makanan lama ini kian dilupakan. Sesetengah
makanan ini jarang dijual secara terbuka kerana tidak boleh disimpan lama, hanya bertahan untuk
beberapa hari sahaja.
Bahan-bahan yang sukar untuk diperoleh dan kaedah membuatnya yang rumit kadang-kadang
membuatkan kuih tersebut agak sukar didapati. Selain daripada itu, kuih-muih tersebut hanya dibuat bagi
tujuan tertentu sahaja seperti pada musim perayaan masyarakat Melayu di negara kita. Permasalahan
lain yang timbul adalah kurangnya individu yang boleh membuat makanan tradisional dan cara makanan
itu di bungkus merupakan antara penyumbang kepada kepupusan. Selain daripada ilmu tidak
diperturunkan akibat waris kurang minat memasak, ditambah pula sesetengah orang menyimpan resipi
yang dianggap rahsia dan tidak mahu dikongsi dengan orang lain. Kebiasaannya resipi ini hanya untuk ahli
keluarga atau orang yang dipercayai menyimpan amanah atau pewaris resipi tersebut sahaja, (Mohamad
380
Muda Bahadin, 2014). Jadi amat merugikan sekiranya resipi dan teknik pembungkusan itu tidak sempat
diperturunkan walaupun ia merupakan strategi terbaik untuk perniagaan. Justeru usaha untuk mengekal
dan mempromosikan makanan tradisi Melayu dan rekabentuk pembungkusannya haruslah di
dokumentasikan dalam bentuk yang lebih ilmiah.
1.3 SKOP KAJIAN
Dalam menjalan kajian ini, lokasi kajian ialah di daerah Tampin, Negeri Sembilan. Makanan tradisional
Melayu yang akan di kaji adalah penganan atau dodol yang di bungkus dengan bekas yang di anyam
dengan daun mengkuang, di namakan dengan istilah tampin.
1.4 OBJEKTIF KAJIAN
Dalam menjalankan kajian ini, tiga objektif telah ditetapkan untuk dicapai.
1.41 Untuk mengenalpasti aspek mekanisme reka bentuk pembungkusan penganan di dalam tampin
1.42 Untuk mengetahui daya tarikan rekabentuk pembungkusan tampin
1.43 Untuk membincangkan keunikan pembungkusan makanan tradisi itu menjadi falsafah dalam
masyarakat Melayu di daerah Tampin, Negeri Sembilan.
1.6 KEPENTINGAN KAJIAN
Kajian ini telah dijalankan atas dasar dapat mengenalpasti rekabentuk pembungkusan makanan tradisi
Melayu yang hampir di lupakan. Selain daripada itu penyelidikan ini mengetahui keunikan rekabentuk
pembungkusan makanan tradisi Melayu dengan menggunakan sumber-sumber alami serta teknik yang di
gunapakai.
Dari aspek kepentingan akademik kajian ini adalah sebagai bahan pembelajaran atau perbandingan yang
boleh digunakan dalam proses pengajaran dan pembelajaran, baik untuk pensyarah, mahasiswa ataupun
semua pihak yang mempunyai minat ataupun kepentingan dengan Rekabentuk pembungkusan sebagai
media promosi dan komunikasi dalam memasarkan sesuatu produk makanan tradisional Melayu. Selain
381
itu dapat juga digunakan sebagai bahan rujukan atau kajian bagi kajian-kajian seterusnya yang mampu
memperbaiki dan menyempurnakan kelemahan dalam kajian ini.
2.0 METODOLOGI KAJIAN
Rekabentuk kajian ini adalah kajian kes. Kajian kes terdiri daripada dua jenis iaitu penerokaan (explanatory)
dan diskriptif (descriptive) yang sesuai untuk mendapatkan data. Kaedah deskriptif adalah setiap data
yang diperolehi daripada nota lapangan atau rekod-rekod rasmi akan dipolakan mengikut kategori
seterusnya dikumpulkan dalam bentuk perkataan dan huraian. Menurut Travers (2001) menerangkan
tentang lima kaedah utama dalam kajian kualitatif iaitu pemerhatian (observation), temubual
(Interviewing), kajian lapangan etnografi (ethnographic fieldwork), analisis perbincangan
(discussionanalysis) dan analisis teks(textual analysis). Kaedah-Kaedah ini perlu ada dalam melengkapkan
penyelidikan berbentuk kualitatif. Dalam penyelidikan ini kaedah pemerhatian terhadap cara pembuatan
tampin tersebut telah dirakamkan melalui foto dan ilustrasi. Kajian lapangan di lakukan di Kg Sg Timun,
Rembau bagi menemubual Rasmah Abu Karim, Suminah Samuji, Salmah Isnin, dan Nur Sarimah Mohd
Darus, iaitu pengusaha bagi pembuatan pembungkusan tampin. kaedah temubual bersemuka (One-on-
One Interview) adalah bertujuan mencungkil pendapat dan persepsi pakar bagi mendapatkan data
tentang teknik dan proses rekabentuk pembungkusan tampin di buat. Kajian sejarah pula digunakan bagi
mengkaji rekod dan penulisan lampau antaranya dapatan daripada jurnal untuk dikaitkan dalam kajian
masyarakat Melayu melalui keunikan rekabentuk pembungkusan makanan tradisi Melayu. Penyelidikan
ini di kaitkan dengan pinjaman daripada teori budaya daripada Clifford Geertz. Clifford Geertz
menerangkan bahawa budaya adalah satu cara hidup menyeluruh manusia. Ia juga adalah satu warisan
sosial yang diperolehi oleh individu daripada kumpulannya. Budaya merujuk kepada karya dan praktik-
praktik intelektual, terutamanya aktiviti artistik.
382
2.1 Kerangka Konsep

Falsafah serta nilai
dalam pembuatan
kuih tradisional
Kepercayaan
Masyarakat kini dan Bahan dari sumber

generasi akan datang alami yang
agar tidak luput di membungkus kuih
talan zaman tradisisional
Kuih
Tradisional
Keperluan Melayu Persekitaran
Negeri
Sembilan
Teknologi
Kaedah dan cara

pembuatan
pembungkusan bg kuih
tradisional
383
3.0 MEKANISMA REKABENTUK PEMBUNGKUSAN TAMPIN
Dalam pembuatan rekabentuk pembungkusan tampin mempunyai beberape peringkat proses

pembuatan dan penyediaan bahan sebelum daun mengkuang di anyam menjadi bekas menyimpan
penganan atau dodol iaitu tampin. Proses yang pertama dari segi pemilihan daun. Daun yang dipilih
hendaklah cukup tua sahaja. Masa paling sesuai untuk mengambil daun mengkuang adalah pada awal pagi atau
lewat petang agar daun yang diambil tidak mudah layu dan patah sewaktu proses menyukat Masa paling sesuai untuk
mengambil daun mengkuang adalah pada awal pagi atau lewat petang agar daun yang diambil tidak mudah layu dan
patah sewaktu proses menyukat dan melurut dilakukan. Daun yang di ambil itu kemudian dipotong sama panjang
dengan membuang bahagian hujung yang tirus sebelum dilayur di atas api bagi melembutkannya agar tidak patah
semasa proses membuang duri dilakukan. Proses seterusnya disebut sebagai menyukat iaitu satu proses menjadikan
daun tersebut kepada beberapa lembar yang lebih kecil, kira-kira satu sentimeter dengan menggunakan alat khas yang
diperbuat daripada kepingan kayu dicucuk beberapa batang besi kecil dalam jarak sama sebagai mata pemotong.
Kemudian daun tersebut dilurut bagi sebelum diikat menjadi berkas dan diketuk bagi melembutkannya sebelum
direndam di dalam bekas besar atau sungai selama tiga hari bagi membuang warna asal daun mengkuang. Apabila
sudah Cukup tempoh daun tersebut bolehlah dikeluarkan daripada rendaman dan perlu dicuci dengan bersih agar
tidak berbau busuk dan dikeringkan dengan cara menjemurnya. Untuk mengetahui daun itu sebetul-betulnya kering,
warnanya bertukar dari warna coklat kehitaman kepada lebih cerah keputihan. Selepas kering, daun tersebut perlu
dilurut kembali bagi melembutkannya sebelum disimpan dan disediakan untuk digunakan membuat tampin.
384
Foto: Arkib Berita Harian 24 jun 2016
KESIMPULAN
Makanan tradisional Melayu berkait rapat dengan jati diri negara kita. Dengan adanya makanan
tradisional ini, orang asing akan mengenali budaya negara kita dengan lebih dekat. Orang asing yang
menikmatinya akan menghormati cita rasa kegemaran rakyat kita. Selain itu, sudah pasti ada yang
berminat untuk terus menikmatinya. Hal ini sekaligus membantu mengekalkan dan meningkatkan
populariti makanan tradisional. Makanan tradisional Melayu dan rekabentuk pembungkusannya tetap
mempunyai nilainya yang tersendiri. Faedahnya banyak apabila kita mengekalkan amalan pemakanan
makanan tradisional Melayu ini dan dapat menegnalpasti bahan dan cara pembungkusannya. Dengan
adanya sikap seperti ini, warisan nenek moyang kita akan kekal terpelihara.
RUJUKAN.
1. Aaron Keller, Brian Adducci. Design Matters, Packaging An Essential primer for Today’s Competitive
Market. Quayside Publishing Group.2008.
2. Ampuero, O. and Vila, N. (2006), Consumer Perceptions of Product Packaging, Journal of Consumer
Marketing, 23/2, 2006.
385
3. Ariff Ali, Azhar Harun & Ida Hartini, AVisual Analysis of Packaging and Labelling in Context of Malay
SME in Malacca. Unit of Research UiTM.2004
4. Audrey Bennet & Steven Heller, Design Study , Theory And Research in Graphic Design first Edition. New
York. 2006
5. Clifford Geertz The Interperatation of Culture 1973
5. Mohd Asri .Abdullah. Industri Kecil di Malaysia: Kejayaan dan Masa Depan. Dewan Bahasa dan Pustaka.
1995
6.Max Travers. Qualitative Research Through Case Studies .2001
7.Yin Cheong Cheng Local Knowledge and Human Development in Globalization of Educatio. 2003
http://www.scribd.com/doc/16442821/Komunikasi-visual-satu-pengenalan
http://www.ilmugrafis.com
http://www.scribd.com/doc/26282400/Teori-Seni
http://www.ahlidesain.com/elemen-elemen-dalam-desain-komunikasi-visual.html
http://citrinitas.com/history_of_viscom/book.html
http://www.emeraldinsight.com/journals.htm?articleid=1617096&show=pdf
http://lvbala.blogspot.com/2008/11/makanan-malaysia-lambang-perpaduan.htm1
386
Secant Condition Free of a Spectral Hestenses-Stiefel (SHS)

Conjugate Gradient Method and its Sufficient Descent
Properties
Usman Abbas Yakubu1, 2, b), Mustafa Mamat2, a), Mohd Rivaie3, c)
1
Department of Mathematics
Northwest University, Kano, P.M.B 3220. Nigeria
2
Faculty of Informatics & Computing
Universiti Sultan Zainal Abidin (UniSZA)
Kuala Terengganu, 21300, Malaysia
3
Department of Computer Science & Mathematics
Universiti Teknologi MARA (UiTM)
Kuala Terengganu, Malaysia
a)
must@unisza.edu.my
b)
usman.abbas84@yahoo.com
c)
rivaie75@yahoo.com
Abstract
The CG method have been in used widely to solve unconstrained minimization problems as a result of less
storage locations and less computational expensive in dealing with large-scale problems. In this particular
research work, we suggested a spectral HS CG method without employing secant condition and use some
unconstrained problems with many variables to prove its sufficient descent as well as global convergence,
the results is certified by apply exact line search procedure.
1. Introduction
In his paper "Raydan (1997)" has presented a spectral gradient method (SGM) for a large-scale
unconstrained optimization and also recently, "Yakubu et al. (2018a)" have presented spectral WYL CG
method without using the secant condition. "Birgin and Martinez (2001)" purposed a spectral CG method
and computed their spectral parameter using standard secant equation as initially acquainted by "Barzilai
and Borwein (1988)". A spectral CG method normally combines the advantages of a spectral parameter
and classical CG direction by creating a new search direction, see "Du and Liu (2011)", "Zull et al. (2015)",
"Yakubu et al. (2018b)" and "Raydan (1997)" for more details. In this research work we derived the spectral
parameter 𝜃𝑘 by using a classical CG direction and a scalar parameter 𝛽𝑘 of Hestenses-Stiefel (HS) method
with no means of secant equations. A method is open to solve large-scale unconstrained minimization
problems and compare its performance with classical HS, PRP and FR CG methods. Therefore, we consider
the general unconstrained optimization problem:
387
𝑚𝑖𝑛 𝑓(𝑥), 𝑥 ∈ 𝑅𝑛 (1)
where 𝑓: 𝑅 𝑛 → 𝑅 is continuous as well as differentiable, g 𝑘 is a gradient vector of a function 𝑓 and initial

point 𝑥0 ∈ 𝑅 𝑛 is usually solved iteratively according to the recurrence expression
𝑥𝑘+1 = 𝑥𝑘 + 𝛾𝑘 𝑑𝑘 , 𝑘 = 0,1,2,3,4, … (2)
whereas 𝑥𝑘 stand for a current iteration, 𝛾𝑘 > 0 represent a step size obtained by line search method
called exact line search, given as
𝛾𝑘 = 𝑎𝑟𝑔 min 𝑓(𝑥𝑘 + 𝛾𝑑𝑘 ) (3)

𝛾>0
also 𝑑𝑘 is a search direction classically given as
−g , 𝑖𝑓 𝑘 = 0
𝑑𝑘 = { 𝑘 (4)
−g 𝑘 + 𝛽𝑘 𝑑𝑘−1 , 𝑖𝑓 𝑘 ≥ 1
and g 𝑘 = ∇𝑓(𝑥), parameter 𝛽𝑘 ∈ 𝑅 are the gradient vector and CG coefficient, respectively. A classical 𝛽𝑘
of FR, PRP and HS are given below:
‖g 𝑘 ‖2
𝛽𝑘𝐹𝑅 = (5)
‖g 𝑘−1 ‖2
g 𝑇𝑘 (g 𝑘 − g 𝑘−1 )
𝛽𝑘𝑃𝑅𝑃 = (6)
‖g 𝑘−1 ‖2
g 𝑇𝑘 (g 𝑘 − g 𝑘−1 )
𝛽𝑘𝐻𝑆 = 𝑇 (g (7)
𝑑𝑘−1 𝑘 − g 𝑘−1 )
where also g 𝑘 and g 𝑘−1 in the above equations are gradient vectors of function 𝑓 at points 𝑥𝑘 , 𝑥𝑘−1
respectively, and ‖. ‖ stand for a Euclidian norm. Consideration has been made on a global convergence of
a CG methods above. "Zoutendijk (1970)" proved FR method on a line search (3) converge globally. Later
"Powell (1984)" disproved this assertion and noted clearly that the method have demonstrated a poor
practical behavior and its convergence is not global. In general PRP is the best CG method amongst others
but their convergence analysis for a nonlinear function is uncertain "Hager and Zhang (2006)". Nonetheless,
"Gilbert and Nocedal (1992)" established a global convergence of PRP method by limiting a parameter 𝛽𝑘
to be non-negative that is 𝛽𝑘 𝑃𝑅𝑃 = 𝑚𝑎𝑥{0, 𝛽𝑘 𝑃𝑅𝑃 }. However, spectral CG method is worthy in terms of a
numerical performances see also "Raydan (1997)", "Yakubu et al. (2018a)". The details of the method is
presented in section 2, we demonstrate a sufficient descent condition and global convergence in section
3. Numerical results are given in section 4 based on CPU time and number of iterations. Conclusion follows
immediately in section 5.
388
2. Details of the New Method
Generally, the spectral CG method was purpose by "Barzilai and Borwein (1988)", the direction is generated
as 𝑑𝑘 = −𝜃g 𝑘 + 𝛽𝑘 𝑠𝑘−1 , where 𝑠𝑘−1 = 𝛾𝑘−1 𝑑𝑘−1 and 𝜃𝑘 is a spectral parameter derived using standard
secant equation. Therefore, the direction of our new method can be defined as
−g 𝑘 , 𝑖𝑓 𝑘 = 0
𝑑𝑘 = { 1 (8)
− g 𝑘 + 𝛽𝑘𝐻𝑆 𝑑𝑘−1 , 𝑖𝑓 𝑘 ≥ 1
𝜃𝑘
Substituting equation (7) in the direction (8) above and using the conjugacy condition, we have
−1
g 𝑇𝑘 𝑑𝑘−1
𝜃𝑘 = (1 − 𝑇 ) (9)
𝑑𝑘−1 g 𝑘−1
Hence the scalar 𝜃𝑘 is a new spectral parameter
Algorithm 2.1
Step 1: Given a starting point 𝑥0 ∈ 𝑅 𝑛 set 𝑘 = 0
Step 2: Calculate parameter 𝛽𝑘 as given in formula (7) above
Step 3: Calculate direction 𝑑𝑘 as given in (8). If ‖g 𝑘 ‖ = 0, then stop.
Step 4: Calculate 𝛾𝑘 as given in (3).
Step 5: Update the new point as given in the recurrence expression (2).
Step 6: If 𝑓(𝑥𝑘+1 ) < 𝑓(𝑥𝑘 ) and ‖g 𝑘 ‖ < 𝜀 then stop, otherwise go to step 1 with 𝑘 = 𝑘 + 1.
3. Global Convergence of the New Method
3.1 The Sufficient descent condition
For sufficient descent condition to hold in this particular method, we consider
g 𝑇𝑘 𝑑𝑘 ≤ −𝐶‖g 𝑘 ‖2 𝑓𝑜𝑟 𝑘 ≥ 0 𝑎𝑛𝑑 𝐶 ∈ (0,1] (10)
Theorem 3.1. Suppose a CG method with search direction (8) and 𝛽𝑘𝐻𝑆 given by (7), the condition (10)
holds ∀ 𝑘 ≥ 0. See "Yakubu et al. (2018a)" for the proof of this theorem.
389
3.2. Global convergence properties
The following assumptions applied on the objective function to analyze the global convergence of a general
CG methods.
Assumptions 3.1. (i) A level set Ω = {𝑥 ∈ 𝑅 𝑛 ∣ 𝑓(𝑥) ≤ 𝑓(𝑥0 )} is bounded, the function 𝑓 is continuously
differentiable in a neighborhood 𝑁 of the level set Ω and 𝑥0 is a starting point.
(ii) g(𝑥) is globally Lipschitz continuous in 𝑁 that is ∃ a constant 𝐿 > 0, s.t ‖g(𝑥) − g(𝑦)‖ ≤ 𝐿‖𝑥 − 𝑦‖ for
any 𝑥, 𝑦 ∈ 𝑁.
Lemma 3.1. Suppose the assumptions 3.1 holds and consider any recurrence expression (2) and
direction (8), 𝛾𝑘 is found in equation (3). Then Zoutendijk condition below holds.
∞ 2
(g TK dk )
∑ <∞ (11)
‖dk ‖2
k=0
Proof of this lemma can be found in "Zoutendijk (1970)".
Theorem 3.2. Suppose the assumptions 3.1 holds, for any {𝑥𝑘 }, {𝑑𝑘 } be given as spectral SH CG method,
𝛾𝑘 are determined by (3) and 𝛽𝑘 can be found as in (7). Then
lim ‖g 𝑘 ‖ = 0 (12)
𝑘→∞
Proof. Suppose equation (12) does not hold, from the direction (8) by squaring both sides of the equation,
we have
2 2 𝑇 1
‖𝑑𝑘+1 ‖2 = (𝛽𝑘𝐻𝑆 ) ‖𝑑𝑘 ‖2 − g 𝑘+1 𝑑𝑘+1 − 2 ‖g 𝑘+1 ‖2 (13)
𝜃𝑘 𝜃𝑘
Substituting equations (9) and (10) in equation (13) and by conjugacy conditions, we obtain
‖𝑑𝑘+1 ‖2 ‖g 𝑘+1 ‖2 ‖g 𝑘+1 ‖4

≤ (14)
‖𝑑𝑘+1 ‖2 ‖𝑑𝑘+1 ‖2
390
2
(g𝑇 𝑑𝑘+1 )
From the Lemma 3.1 above, lim 𝑘+1 < 0. It implies that Theorem 3.2 does not hold true, then
𝑘→∞ ‖𝑑𝑘+1 ‖2
2
(g𝑇
𝑘+1 𝑑𝑘+1 ) ‖g ‖4
lim = ∞ and from equation (14) this is true ∞ ≤ ‖𝑑𝑘+1 ‖2 . So Theorem 3.2 is true for a
𝑘→∞ ‖𝑑𝑘+1 ‖2 𝑘+1
sufficient large 𝑘. ∎
4. Numerical Results
We have tested the Algorithm 2.1 and compared its performance with a classical HS, FR and PRP methods.
The comparisons are based on CPU time as well as number of iterations. The step size 𝛾𝑘 is found by exact
line search, the stopping criteria used for both methods is 𝜀 = 10−6 as suggested by "Hillstrom (1977)"
and ‖g 𝑘 ‖ < 𝜀. A test problems in "Andrei (2008)" were used, and we established a problems in table I
below with four different initial values by MatlabR2015a subroutine programming using Intel Core i5-
3317U (1.7GHz with 4 GB (RAM)). In this research, we represent failure due to (i) memory requirement (ii)
number of iterations exceed 1000. The results shown in a FIG 1 and FIG 2 are performance profile
acquainted by Dolan and More (2002). Performances are established on CPU time and number of iterations
respectively. Therefore, the highest value of a percentage of probability 𝑃𝑠 (𝑡) will be regarded as the best
performing method and also the method that reached the top foremost are considered most sophisticated
upon all the methods. Lastly, the new method has potentials when compared with the classical HS, PRP
and FR methods, based on that comparisons in the above figures, it shows that spectral HS method and
PRP method successfully reached the solution points. Certainly, the efficiency of the spectral HS method is
highly exhilarated.
Table I. Test Problems functions
Functions Dimensions Initial Points

Trecanni 2 (2,2), (4,4), (5,5), (15,15)
Booth 2 (12,12), (-12,-12), (40,40), (-40,-40)
Zettl 2 (11,11), (-11,-11), (110,110), (-110,-110)
Leon 2 (3,3), (5,5), (7,7), (-7,-7)
Quartic 4 (22,22), (-22,-22), (50,50), (60,60)
Colville 4 (2,2), (13,13), (-13,-13), (19,19)
Wood 4 (5,5), (35,35), (50,50), (70,70)
Freudustain & Roth 2,4 (4,.,-4), (8,.,8), (9,.,9), (10,.,10)

Gen. Tridiagonal 1 10 (3,.,3), (-3,.,-3), (5,.,5), (-5,.,-5)
Gen. Tridiagonal 2 10 (3,.,3), (-3,.,-3), (11,.,11), (21,.,21)
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Fletcher 10 (2,.,2), (-2,.,-2), (21,.,21), ), (-21,.,-21)

Hager 2,4,10,100 (12,.,12), (-12,.,-12), (17,.,17), (-19,.,-19)
Raydan 1 2,4,10,100 (4,.,4), (-5,.,-5), (-7,.,-7), (-23,.,-23)
Ext. Quad. Penalty QP1 2,4,10,100 (2,.,2), (-2,.,-2), (23,.,23), (-23,.,-23)
Extended Penalty 2,4,10,100 (2,.,2), (8,.,8), (14,.,14), (25,.,-25)
Ext. Tridiagonal 1 2,4,10,100,1000 (-5,.,-5), (21,.,21), (21,.,21), (25,.,25)
Himmelblau 2,4,10,100,1000 (8,.,8), (-8,.,-8), (11,.,11), (-11,.,-11)

,10000,100000
White and Holst 2,4,10,100,1000 (5,.,5), (7,.,7), (-7,.,-7), (10,.,10)
,10000,100000
Shallow 2,4,10,100,1000 (3,.,3), (-3,.,-3), (-11,.,-11), (20,.,20)
,10000,100000
Rosenbrock 2,4,10,100,1000, (15,.,15), (-15,.,-15), (17,.,17), (-17,.,-17)
10000,100000
5. Conclusion
A proposed spectral HS CG method satisfies a sufficient descent conditions and converges globally. The
method overcomes the weaknesses of classical HS, FR and PRP methods and the presented numerical
outcomes apparently shown that the method performed wonderfully in terms of CPU time and number of
iterations respectively.
Acknowledgments
392
The authors unanimously thanks the reviewers for valuable suggestions and also thankful to the University
Sultan Zainal Abidin for their contributions.
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394
Perceived Business Opportunities and Working Women Entrepreneurial Intention

in Nigeria
Abdullahi Hassan Gorondutse 1a,

aSchool of Business Management, Universiti Utara Malaysia, Malaysia/ Department
of Economics and Management, Nigerian Police Academy Wudil Kano, Nigeria.
Email: ahgdutse@gmail.com, abdullahi@uum.edu.my
Abstract
In the economy of a globalizing world, entrepreneurship has gained importance. The aim
of this study was to reveal factor influencing the entrepreneurial intentions of working
women entrepreneur using the theory of planned behaviour (TPB). The authors employ
these theories in which intentions and aspiration towards being an entrepreneur are
regarded as resulting from perceived business opportunities. This paper expects to offer
new insights on the latent variable are effective on the entrepreneurial intentions of
working women entrepreneur and their aspiration towards becoming an entrepreneur.
This study provides a academic input by relating the idea of TPB to this specific setting.
In addition, It also creates an unique impact by concentrating on an limited research group
by investigative the effect perceived business opportunities factor on the probability of
intension of working women becoming entrepreneurs.
Keywords: Perceived Business Opportunities, Working Women Entrepreneurial

Intention, Nigeria.
INTRODUCTION
Recent literature in the area of entrepreneurship studies indicate that prospects are
established or made by entrepreneurs (Neill, Metcalf & York, 2017). As such, opportunity
finding is an indication that entrepreneurs see what new people oversight, at the same
time entrepreneurs who utilize abundant means and create chance for business (Neill,
Metcalf & York, 2017). Therefore, this may raise an issue that entrepreneurs create
prospect and business chance focus and deliberate contrarily from entrepreneurs who
create opportunity, as well as from other entrepreneurs who at once realize and produce
business chances. While ideally it’s important, equally the learning opportunity presents
an empirical task (Dimov, 2011). It’s assumed that opportunity is an unobservable and
empirically intangible sensation (Welter & Alvarez, 2015; Neill, Metcalf & York, 2017).
Moreover, the talent to recognize and to access chances of business is considered as an

imperative entrepreneurial competence (McKinsey, 2014; Hanson & Blake, 2009). The
perception of one’s own entrepreneurial skills has a significant effect on entrepreneurial
395
intentions with a more favorable own skills perception leading to higher entrepreneurial
intentions (UNCTAD, 2013). Gender differences prevail especially in an individual’s
perceptions, and more men than women believe to have sufficient knowledge, skills and
experience to start a new business (McKinsey, 2014; Sampedro, Laviada & Crespo,
2014).
Working women entrepreneurs are those want to inspire and empowered successfully to
gain and maintain the freedom to live their lives the way they want (Daily Trust, 2017). In
Nigerian context working women are efficient but no matter how hardworking it be they
most have an emergency at home and have reason to leave work early, for that reason
working women narrow down their search for something that allow them to have time for
their home. The question of why working women perceived to become entrepreneurs as
alternative business opportunity has remained a great concern in the management
literature (Ravi & Nor Aishah; 2016; Sampedro, Laviada & Crespo, 2014; Neill, Metcalf &
York, 2017). Although in Nigeria previous research has offered us insights about women
entrepreneurs (Adedeji, Ige & Ekanam, 2017; Love et al., 2015; Garba, 2012 and Idris &
Chukwujioke, 2015) but none of this research focus on working women and their findings
are varies.
This study aims to shed more light on the complex relationship between perceived
business opportunity a working women Intention to become entrepreneur in the context
of Nigeria and addresses the drawn gaps in the literature. This paper void is important
because the forecast of entrepreneur behaviours in emerging economies and developed
countries may differ. The rest of the paper proceeds as follows; the next section deals
with theoretical background and prepositions development; subsequent Conceptual
Framework and Measurement and the paper finally ends with conclusions.
LITERATURE REVIEW
A recent study by Ravi and Nor Aishah (2016) shows linkage between perceived
business opportunities and the Attitude of entrepreneurs. The aim of the study was to
identify the relationship between attitude and intention towards an entrepreneurial
occupational choice among the Indian undergraduates. By using a sample of 315 from
Indian undergraduate in Malaysia, the study found a positive association between the
perceived business opportunities and the attitude of entrepreneurs. The study
recommended the entrepreneurship as an essential field for a country’s economic growth
development. Because the study deems the entrepreneurship as not only job creation
opportunities but also, it brings wealth to the people in the country.
In another study by de la Cruz Sánchez-Escobedo, Díaz-Casero, Hernández-Mogollón

and Postigo-Jiménez (2011), indicated that, gender specifically the women, prays a
significant roles in relation to entrepreneurship. The aim of the study was to investigate
the reality of gender variances in the opinions and approaches among the students as
396
regards entrepreneurship, using data received from a sample of university students that
have joined a business establishment package run in Spain. The study used bivariate
and multivariate techniques, based on their finding the result reveal that, gender plays a
important consequence on how the entrepreneur is perceived and, on the intention, to
create new business in the community.
As such, the perceived business opportunity towards entrepreneurship will be helpful or
hostile according to the positive and negative beliefs of the decider in respect to the
establishment to start the business. Consequently, the entrepreneurial choice will be
contingent on the benefits and drawbacks perceived in this behaviour. Different scholars
are consistent with this arrangement that an entrepreneur is related to the formation of a
personal business with benefits such as freedom and financial rewards (Sampedro,
Laviada & Crespo, 2014).
Furthermore, based on the literature there are numerous independent women in

developed nation such as the UK and the USA (Mitchelmore & Rowley, 2013), at the
same time of these businesses are extremely reliant on on the holder and her abilities
((Mitchelmore & Rowley, 2013). Further, there is a extensive postulation that some of
these trades are existence businesses, and any activities that their is obligation to
progress can be quite small (Mitchelmore & Rowley, 2013).
In the report by Global Entrepreneurship Monitor, (2016/2017) stated that most of the 57%
of the women opportunity perceptions are in factor-driven economies trusting there are
good business chances surrounding their environment, at the same time less than 39%
put their mind on beliefs in innovation-driven economies (Global Entrepreneurship
Monitor, 2016/2017). Therefore, the masculinity gap on this pointer is fairly narrow; on
normal, based on the report business chance opinions among women are at 90% of male
perceptions. In addition, Europe booms the bottommost business chance views among
regions, reliable with its little average TEA (GEM, 2016/2017).
Six countries in the southern part of Russia such as: Greece, Bulgaria, Slovakia, Slovenia,
Croatia and Spain have very little less than 25% of females see opportunities to start up
new ventures. However, Great levels come from Northern Europe, somewhere over
partial of females in Sweden, Norway, Estonia and Finland have confidence in there are
moral opportunities for start a new business/ventures (GEM,2016/2017). In addition,
North America it was revealed that the top regional average for opportunity perceptions,
somewhat greater than in sub-Saharan Africa, as at the same time entrepreneurship
degrees are more than double as high. Sub-Saharan Africa’s average, though, this was
decrease by little opportunity perceptions in South Africa, which are stated at fewer than
half the level of the average of other nations in this region, and reliable with little TEA
rates in this nation. In the GEM women’s report 63 economies participating in this report,
opportunity perceptions increased by 11% in Europe. North America and while in Asia
exhibited comparable growths in this pointer, while Asia and MENA also showed
reduction gender gaps. Remarkably, the regions with traditionally high TEA rates, sub-
397
Saharan Africa and Latin America, showed reductions in these perceptions and a small
reduction in the gender proportion (GEM, 2016/2017).
Considering the different characters working women in the Nigerian economy, and by
effect in the improvement process, the group sustained to be abandoning in that country
and this can only be link to a rescheduling of economic rescue in the country. Possibly,
this may be due to understanding of this cliché, investors have try to start and identify that
the common people are probable economic means rather than the previously
misapprehended proverb that say this group they were economic dependency (Singh.,
Simpson, Mordi & Okafor, 2011; Madichie, & Nkamnebe, 2010).
In the context of Nigeria contributions of women to this sector has been identify (Alarape,
2009). In line with Nigerian government has created many programs to inspire women
entrepreneurs many program has been established (e.g. better life programme (BLP),
Family Support Programme (FSP) etc). Though, despite the above programs this remains
to be a lack of thoughtful of the elements that may support the choice by working women
to start up a new personal business of their choices in Nigeria.
2. 1 Theory of Planned Behavior (TPB)

Ajzen (1988 and 1991) established a TPB model of planned behaviour and described this
model to be a extremely operative forecaster of a wide variety of behaviour. Many
researches in Literature have applied all dimensions of Ajzen’s planned behaviour model
(TPB) to the part of entrepreneurial intent – the intent to initiate one’s personal business
(Şen, Yilmaz & Ari, 2018). Many researches appreciate the effectiveness of Ajzen’s
theory and his view that behavioural intent is a influential predictor of the targeted
behaviour. In addition, TPB postulates three elements that affect behaviour. These are:
attitudes toward behaviour (personal attitude and individual conduct), subjective norms
(influence of significant others; perceived social pressure) and perceived behavioural
control (Ajzen, 1991; Şen, Yilmaz & Ari, 2018).
Individuals’ attitudes are taken example in such a way that they always form a bridge
between an individual’s beliefs and intentions. Based on this theory the attitude of person,
concerning certain conduct affects the person’s intention toward performing that actions,
as a result will affects the actual actions (Lee et al., 2007). In other part of theory
Subjective norms or social pressure is a purpose of the perceived opportunities of
individuals or groups close to the person or the momentous others (such as friends,
neighbours etc.), and the attraction of an person in meeting these opportunities (Fischbein
& Ajzen, 1975). In social psychology, intention is the most vital aspect of conduct
(Abraham & Sheeran, 2003). However, the study will focus on perceived business
opportunities.
3. Conceptual Framework and Measurement
Considering the above discussion, this study proposed conceptual framework (fig. 1) as
is presented below:
398
Perceived Business Working Women

Opportunity Entrepreneur
Intension
It is aimed to search whether there is a semantic relation between perceived business

opportunity concerning perceived business opportunity and entrepreneurial intentions of
working women entrepreneur in the study. The prepositions below may be offered in
accordance with this aim:
Preposition 1: There is a relation between perceived business opportunity concerning
entrepreneurship of working women entrepreneurial intentions.
The Entrepreneurial Intention Questionnaire (EIQ) adapted for this study is a modified
version of the one used Kautonen et al., 2015; Şen, Yilmaz & Ari, 2018) used the planned
behaviour theory of TPB to establish an entrepreneurial intention questionnaire (EIQ).
And perceived business opportunity was adapted from Ravi & Nor Aishah (2016).
4. Conclusion
This study adds value to the literature on entrepreneurship in two significant phases. First,
it drives into fact about the effect that perceived benefits of opening a new business
chance on entrepreneurial intentions. Subsequent, the researcher survey significant and
special joint, working women that have intension to become independent in impending
and, henceforth, it is a serious era to choose the start-up of a new venture.
The working women are limited in research but substantial group. It is significant so that
working women are stimulated into independent, in a setting where recognized
opportunities of work are mostly allocated for men. This study finds a need to contribute
to the literature and public policy debate by examining factors militating against Nigerian
women’s access to entrepreneur intension.
Finally, the objective of this paper is achieved, where this paper offers extended
understanding of perceived business opportunity and Working women entrepreneurial
intention in Nigeria, looking from the lens of TPB Theory. It is recommended that future
research can test the conceptual framework in this study into field works. The justifications
of the findings are then very much significant in extending the current literature.
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opportunities ,Entrepreneurship Theory and Practice, Vol. 35 No. 1, pp. 57-81.
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attitude and lack of capital mitigates their need for business expansion. European
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43, 135-149.
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among women entrepreneur in Nasarawa state state Nigeria. Journal of Business
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travel shopping behaviour- a case study of Korean travelers”, Tourism
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of women “petty” traders in Eastern Nigeria", Gender in Management: An
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401
A New Conjugate Gradient Coefficient Using Strong –Wolfe-

Powell Line Search for Unconstrained Optimization
Abba Vulngwe Mandara
Universiti Sultan Zainal Abidin, Terangganu, Malaysia
Abstract
In this paper, a new CG method for solving unconstrained optimization is introduced and studied. The method
satisfies the descent condition, and its global convergence is also established using the strong Wolfe line Search.
The Numerical result shows that the new Conjugate Gradient Coefficient is better regarding the number of some
iterations and CPU times as compared to other CG coefficients.
Keywords: Unconstrained, Conjugate Gradient, line search, Global,

Mathematics Subject Classification: 65H11, 65K05, 65H12, 65H18.
1. Introduction
The conjugate gradient (CG) methods are important in finding the minimum value of a function for the
unconstrained optimization problem. The conjugate gradient method is popular because they need low
memory requirements. The unconstrained optimization problem is stated as:
min 𝑓(𝑥) (1)
𝑥𝜖𝑅𝑛
where 𝑓: 𝑅 𝑛 → 𝑅 is continuaously differentiable function . The CG method generates its update

iteratively in the form:
𝑥𝑘+1 = 𝑥𝑘 + 𝛼𝑘 𝑑𝑘 , 𝑘 = 0,1,2, ⋯, (2)
𝑑𝑘 is the search direction and is obtained using the following:

−𝑔𝑘 𝑓𝑜𝑟 𝑘 = 0,
𝑑𝑘 = { (3)
−𝑔𝑘 + 𝛽𝑘 𝑑𝑘−1 𝑓𝑜𝑟 𝑘 ≥ 1,
and 𝑔𝑘 and 𝛽𝑘 are the gradient of 𝑓(𝑥) and conjugate gradient coefficient of 𝑓(𝑥) at the point 𝑥𝑘 .
The following are some well-known CG methods.
𝑔𝑘𝑇 𝑔𝑘 𝑔𝑘𝑇 (𝑔𝑘 −𝑔𝑘−1 ) 𝑔𝑘𝑇 (𝑔𝑘 −𝑔𝑘−1 )
𝛽𝑘𝐹𝑅 = ‖𝑔𝐾−1 ‖2
, 𝛽𝑘𝑃𝑅 = ‖𝑔𝑘−1 ‖2
𝛽𝑘𝐻𝑆 = (𝑔𝑘 − 𝑔𝑘−1 )𝑇 𝑑𝑘−1
,
𝑔𝑘𝑇 𝑔𝑘 𝑔𝑘𝑇 (𝑔𝑘 −𝑔𝑘−1 ) 𝑔𝑘𝑇 𝑔𝑘

𝛽𝑘𝐷𝑌 = (𝑔𝑘 − 𝑔𝑘−1 )𝑇 𝑑𝑘−1
, 𝛽𝑘𝐿𝑆 = − 𝑑𝑘 −1 𝑔𝑘−1
𝛽𝑘𝐶𝐷 = − 𝑇 (4)
(𝑑𝑘−1 𝑔𝑘−1 )
where 𝑔𝑘 and 𝑔𝑘−1 denote the gradient of 𝑓(𝑥) at the point 𝑥𝑘 and 𝑥𝑘−1 . The conjugate gradient
coefficient 𝛽𝑘 ∈ 𝑅 is a scalar which determines different CG methods. The above methods are known
as Fletcher and Reeve’s (FR) [1], Polak and Ribiere (PR)[2], Hestenes and Steifel (HS) [11], Liu and
Storey (LS) [18], Dai and Yuan (DY) [26], and lastly conjugate descent (DY) by Fletcher [4].
For 𝑓(𝑥) that is strictly convex quadratic functions all of these methods behave quite differently for
general non-quadratic functions. However, the most studied properties of CG methods are their global
402
convergence properties. The most famous paper is by Zoutendijk[15], who prove the global
convergence of the FR method with exact line search. Unfortunately, Powell [5] has proven that the FR
method has a major drawback. Powell [14] also shown that the FR method can cycle infinitely without
reaching the minimizer and its convergence is not global. Other researchers such as ,Toua ti-Ahmad
and Storey [16] , Gilbert and Nocedal [3], further analysed the global convergence of algorithms related
to FR the method with Srong Wolfe conditions. Powell [14] once again proves that FR is a superior to
other methods. Since Powell proof, the global convergence of PR, LS and HS has not been established,
for the reason that, these methods cannot guarantee the descent objective function values at each
iterations [14]. However, in recent years much effort has been directed towards designing and
constructing a new formula for CG methods, with good numerical performance and global convergence
properties. For further reading and recent findings of CG methods, refer to Sun and Zhang [19], Yuan
and Wei [20], For information and basic knowledge of modifications to CG methods refer to Andrei
[8,9]. Some of the best research on this type of CG method was conducted by [22, 23, 24, 25, 27] A
basic key factor of global convergence is selecting 𝛼𝑘 . The most common search line is the exacts line
search which involves finding the exact value of 𝛼𝑘 . Some researchers believe that this line search is
quite slow and therefore prefer to use the inexact line search. For this paper, it is established that the
new generation of CG, that is, [16,17] has an edge and fast Computer Processors over the exact line
search.
We present our new 𝛽𝑘 and its algorithm, followed by some theoretical proofs. Numerical results to
support and analyse these findings are shown, and finally, we present our discussion and conclusion.
The convergence analysis using inexact line search method is examined based on the following strong
– Wolfe conditions:
𝑓(𝑥𝑘 +∝𝑘 𝑑𝑘 ) ≤ 𝑓(𝑥𝑘 ) + 𝜌𝛼𝑘 𝑑𝑘 𝑇 𝑔𝑘 (5)
|𝑔(𝑥𝑘 +∝𝑘 𝑑𝑘 )𝑇 𝑑𝑘 | ≤ −𝜎 𝑑𝑘 𝑇 𝑔𝑘 (6)

With 0 < 𝜌 < 𝜎 < 1
2. The New CG-Coefficient and its Algorithm

The objective of this modification (which is the New CG coefficient) is to improve its behavior
combining FR, CD, and DY methods with the new CG. The new CG coefficient inherits all properties
of FR, CD and DY methods and also improved regarding the number of iterations and CPU times.
This new 𝛽𝑘 is denoted as MMD method, based on the researchers’ names, Mandara, Mamat, and
Dauda. The new CG coefficient introduced is given by
𝑔𝑘𝑇 𝑔𝑘
𝛽𝑘𝑀𝑀𝐷 = ‖𝑑𝑘−1 ‖2
(7)
In the formula, the denominator is modified while retaining the original numerator as in FR [5], CD
[9], and DY [10]. This numerator is known to give restart properties to CG methods.
𝑔𝑇 𝑔𝑘
Hence, 𝛽𝑘𝑀𝑀𝐷 = ‖𝑑 𝑘 2
𝑘−1 ‖
The algorithms for the new CG coefficient is as follows:
Step 1: Given 𝑥0 , set k = 0.

Step 2: Compute 𝛽𝑘 based on 𝛽𝑘𝑀𝐴𝑁 (8) formula
Step 3: Compute the search direction 𝑑𝑘 in (3) If ‖𝑔𝑘 ‖ = 0, then stop.
Otherwise continues with step 4.
403
Step 4: Compute step size ∝𝑘 such that,
𝑓(𝑥𝑘 +∝𝑘 𝑑𝑘 ) ≤ 𝑓(𝑥𝑘 ) + 𝜌𝛼𝑘 𝑑𝑘 𝑇 𝑔𝑘
|𝑔(𝑥𝑘 +∝𝑘 𝑑𝑘 )𝑇 𝑑𝑘 | ≤ −𝜎 𝑑𝑘 𝑇 𝑔𝑘
Step 5: Updating new point. Let 𝑥𝑘+1 = 𝑥𝑘 + 𝛼𝑘 𝑑𝑘 .
Step 6: If 𝑓(𝑥𝑘+1 ) < 𝑓(𝑥𝑘 ) and ‖𝑔𝑘 ‖ ≤ 𝜖 then stop.
Otherwise, go to step 1 with k = k + 1.
3. Global Convergence
The convergence properties of 𝛽𝑘𝑀𝑀𝐷 is studied and presented. First the sufficient
condition is established, there exists a constant C > 0 for all k ≥ 0 then , the search directions
will satisfy the sufficiently descent condition.
𝑔𝑘𝑇 𝑑𝑘 ≤ −𝑐‖𝑔𝑘 ‖2 (8)
Theorem 1. Suppose that the sequence 𝑔𝑘 and 𝑑𝑘 are generated by the algorithm 1 and the
1
step length is determined by strong Wthe olfe line search (5) and (6). If 𝜎 < 5 , then the
sequence 𝑑𝑘 satisfy the sufficient descent condition (8).
Proof.
By applying (8), we have
𝑔𝑇 𝑔𝑘 ‖𝑔𝑘 ‖2
𝛽𝑘𝑀𝑀𝐷 = ‖𝑑 𝑘 2
≤ ‖𝑑𝑘−1 ‖2
, Hence,
𝑘−1 ‖
𝑀𝑀𝐷 ‖𝑔𝑘 ‖2
0 ≤ 𝛽𝑘+! ≤ ‖𝑑 2
(9)
𝑘−1 ‖
By equation (3), we have

𝑇
𝑔𝑘+1 𝑑𝑘−1 𝑔𝑇 𝑑
‖𝑔𝑘+1 ‖2
= −1 + 𝛽𝑘𝑀𝑀𝐷 ‖𝑔𝑘+1 ‖𝑘2 (10)
𝑘+1
Whose ‖𝑔𝑘 ‖ is the norm of 𝑔𝑘 .

Using induction, the descent property is shown,
𝑔𝑘𝑇 𝑑𝑘 < 0, (10.1)
Since 𝑔0 𝑇 𝑑0 = −‖𝑔0 ‖2 < 0 𝑎𝑛𝑑 𝑔0 ≠ 0
Suppose 𝑑𝑖 , i=1, 2, 3 ,…,k. are all descent direction. By using (6) and inequalities in (10),
The following is obtained,
‖𝑔𝑘 ‖2
𝛽𝑘𝑀𝑀𝐷 |𝑔𝑘+1
𝑇
𝑑𝑘 | ≤ ‖𝑑𝑘−1 ‖2
𝜎(−𝑔𝑘𝑇 𝑑𝑘 )
‖𝑔𝑘 ‖2 ‖𝑔𝑘 ‖2
𝜎 ‖𝑑 2
(𝑔𝑘𝑇 𝑑𝑘 ) ≤ 𝛽𝑘𝑀𝑀𝐷 𝑔𝑘+1
𝑇
𝑑𝑘 ≤ −𝜎 ‖𝑑 2
(𝑔𝑘𝑇 𝑑𝑘 ) (11)
𝑘−1 ‖ 𝑘−1 ‖
404
Also, from (10) and (11), we deduce that:

𝑔𝑇 𝑑𝑘 𝑇
𝑔𝑘+1 𝑑𝑘 𝑔𝑇 𝑑𝑘
−1 + 𝜎 ‖𝑑 𝑘 2
≤ ‖𝑔𝑘+1 ‖2
≤ −1 − 𝜎 ‖𝑑 𝑘 2
. (12)
𝑘−1 ‖ 𝑘−1 ‖
Repeating the process and since 𝑔0𝑇 𝑑0 = − ‖𝑔0 ‖2 , this implies

𝑔𝑇 𝑑0
−1 + 𝜎(−1) ≤ ‖𝑔0 2
≤ −1 − 𝜎(−1) (13)
0‖
𝑇
𝑔𝑘+1 𝑑𝑘+1
−1 − ∑𝑘𝑖=1 𝜎 𝑖 ≤ ‖𝑔𝑘+1 ‖2
≤ −1 + ∑𝑘𝑖=1 𝜎 𝑖 (14)
𝑇
−1 − ∑𝑘𝑖=1 𝜎 𝑖 ≤ ‖𝑔𝑘+1 ‖2
≤ −2 + 1 + ∑𝑘𝑖=1 𝜎 𝑖 (15)
𝑇
− ∑𝑘𝑖=0 𝜎 𝑖 ≤ ‖𝑔𝑘+1 ‖2
≤ −2 + ∑𝑘𝑖=1 𝜎 𝑖 (16)
1
Since, ∑𝑘𝑖=0[𝜎]𝑖 < ∑∞ 𝑖
𝑖=0[𝜎] = 1−𝜎 . (17)
Then (16), can be written as

𝑇
1 𝑔𝑘+1 𝑑𝑘+1 1
− 1−𝜎 ≤ ‖𝑔𝑘+1 ‖2
≤ −2 + 1−𝜎 . (18)
Therefore by applying the method of induction 𝑔𝑘𝑇 𝑑𝑘 < 0 holds for all k ≥ 0.
1
Let c = 2 − 1−𝜎 , where c 𝜖(0,1), then
𝑇
𝑐−2≤ ‖𝑔𝑘+1 ‖2
≤ −𝑐. (19)
Thus, the proof is complete.
For the proof of global convergence. The following assumptions are considered.
Assumptions:
(i) In the neighborhood 𝑁 of 𝐿 , 𝑓(𝑥) is continuously differentiable and bounded defined by the level
set 𝐿 = { 𝑥| 𝑓(𝑥) ≤ 𝑓(𝑥0 )} where 𝑥0 is the initial point.
(ii) The gradient is Lipschitz continuous then, there exist a constant 𝐿 > 0 such that
‖𝑔(𝑥) − 𝑔(𝑦)‖ ≤ 𝐿‖𝑥 − 𝑦‖, 𝑓𝑜𝑟 𝑎𝑙𝑙 𝑥, 𝑦 ∈ 𝑁
The following Lemmas which were first established by Zoutendijk [19] and Wolfe (1969, 1971), are
very important to prove the global convergence of any nonlinear CG methods with the strong – Wolfe-
Powell line search.
Lemma 1
Let 𝛼𝑘 be obtained by the strong – Wolfe – Powell line search. Suppose that assumptions (i) and (ii),
and the descent condition hold, then
405
∑ −𝛼𝑘 𝑔𝑘𝑇 𝑑𝑘 < ∞ (19.1)

𝑘=1
Proof.
Since 𝛼𝑘 is obtained by the strong Wolfe- Powell line search, therefore, by (6) and (10.1)
𝑓𝑘+1 − 𝑓𝑘 ≤ 𝛿𝛼𝑘 𝑔𝑘𝑇 𝑑𝑘 ≤ 0. (19.2)

That is to say, {𝑓𝑘 } is a decreasing sequence and the sequences {𝑥𝑘 } contained in the level set. Hence,
assumptions (i) and (ii) imply that there exists a constant 𝑓 ∗ such that
lim 𝑓𝑘 = 𝑓 ∗.
𝑘→∞
∞ 𝑁
∑(𝑓𝑘 − 𝑓𝑘+1 ) = lim ∑(𝑓𝑘 − 𝑓𝑘+1 ) = lim (𝑓1 − 𝑓𝑘+1 ) = 𝑓1 − 𝑓 ∗ .

𝑁→∞ 𝑁→∞
𝑘=1 𝑘=1
In particular,
∞
∑(𝑓𝑘 − 𝑓𝑘+1 ) < ∞.

𝑘=1
This together with (19.2) implies that(19.2) holds.

Lemma 2
Consider any CG method in the form (2) and (3), where 𝛼𝑘 is obtained by the strong Wolfe-Powell line
search. Suppose that assumptions (i) and (ii) and the descent condition hold. Then the following
Zountendijk condition holds
∞ 2
(𝑔𝑘𝑇 𝑑𝑘 )
∑ < ∞.
‖𝑑𝑘 ‖2
𝑘=1
Proof.
Using assumptions (i) and (ii) and the strong Wolfe-Powell line search, we obtain
−(1 − 𝜎2 )𝑔𝑘𝑇 𝑑𝑘 ≤ (𝑔𝑘+1 − 𝑔𝑘 )𝑇 𝑑𝑘 ≤ 𝐿𝛼𝑘 ‖𝑑𝑘 ‖2 .

Thus,
−(1 − 𝜎2 𝑔𝑘𝑇 𝑑𝑘 )
𝛼𝑘 ≥
𝐿‖𝑑𝑘 ‖2
This combining with (10.1) yields that
∞ 2 ∞
(𝑔𝑘𝑇 𝑑𝑘 ) 𝐿
∑ 2
≤ ∑(𝛼𝑘 𝑔𝑘𝑇 𝑑𝑘 ).
‖𝑑𝑘 ‖ 1 − 𝜎2
𝑘=1 𝑘=1
There it follows from Lemma 1 that

∞ 2
(𝑔𝑘𝑇 𝑑𝑘 )
∑ < ∞.
‖𝑑𝑘 ‖2
𝑘=1
This complete the proof.
406
4. Numerical Results and Discussion

This section considers the numerical solution for this study. The conjugate gradient methods of
MMWU, PRP, FR, CD, and DY were tested. Some test problems considered in Andrei [10] are selected
based on the number of iterations and the CPU times of each problem. We consider є = 10−6 As the
stopping criteria as suggested by Hillstrom for each of the problems. However, four initial starting
points are used. This enables us to test for the global convergence properties of our method. The result
is compared based on the number of iterations and CPU time.
The test function in Table 1, are solved using MATLAB 2012b subroutine programming using the exact
line search. The exact line search has helped us in obtaining the exact value of the step size and to avoid
the complexity of the algorithms. The problems mentioned below are solved by the maple 14 subroutine
programme using the exact line search. An Intel(R) Core (TM) i5 – 4200M, CPU processor was used
with 2.50 GHz clock speed, 4.00 GB of memory (RAM) and 64 – bit operating system.
Table 1. A list of test functions
No Functions Dimensions Initial Points

1 Trecanni 2 (2,2), (11,11), (17,17), ( - 17,- 17).
2 Booth 2 (4,4), (-4,-4), (23,23), (107,107).
3 Three Hump Camel 2 (3,3), (-3,-3), (7,7), (51,51).
4 Six Hump Camel 2 (11,11), (41,41), (51,51), (53,53).
5 Zeftl 2 (-3,-3), (5,5), (100,100), (200,200).
6 Leon 2 (2,2), (4,4), (12,12), (-12,-12).
7 Quartic 4 (1,…,1), (3,…,3), (11,…,11), (21,…,21).
8 Colville 4 (-1,…,-1), (4,…,4), (7,…,7), (11,…,11).
9 Wood 4 (45,…,45), (66,…,66), (85,…,85), (-

85,…,-85).
10 Gen. Tridiagonal (1) 10 (7,…,7), (-7,…,-7), (10,…,10), (18,…,18).
11 Gen. Tridiagonal (2) 10 (3,…,3), (5,…,5), (9,…,9), (10,…,10).
12 Fletcher 10 (2,…,2), (6,…,6), (9,…,9), (-13,…,-13)
13 Hager 50 (2,…,2), (5,…,5), (8,…,8), (10,…,10)
407
14 Raydan 100 (5,…,5), (8,…,8), (9,…,9), (-9,…,-9).
15 Dixon and Price 100 (-18,…,-18), (-49,…,-49),(109,…,109), (-

28,…,-28)
16 Quadratic QP1 100 (-28,…,-28),(109,…,109),(100,…,100),

(-109,…,109)
17 Quadratic QP2 100 (5,…,5),(-15,…,15),(20,…,20),(25,…,25).
18 Extended Penalty 100 (-49,…,-

49),(49,…,49),(100,…,100),(500,…,500)
19 Extended Maratos 100 (2,…,2),(49,…,49),(50,…,50),(-49,…,-

49)
20 Quadratic QF2 100 (-15,…,-15),(5,…,5),(18,…,18), (-

200,…,-200)
21 Extended Tridiagonal 100 (5,…,5),(49,…,49),(18,…,18),(109,…,10

1 9)
22 Himmelblau 100 (8,…,8),(-14,…,-14),(-50,…,-50),

(85,…,85)
23 Rosenbrock 100, 1000, 10,000, (2,…,2),(5,…,5),(10,…,10),(25,…,25)
100,000
24 Whiteholst 100, 1000, 10000, (2,…,2), (-2,…-2), (4,…,4), (13,…,13)

25 Shallow 100, 1000, 10000 (11,…,11),(-11,…,-11),(25,….,25),
(49,…,49)
(2,…,2), (5,…,5), (25,…,25), (49,…,49)
26 Generalized Quartic 100, 1000,10000 (2,…,2), (-2,…,-2), (4,…,4), (-4,…-4)
27 Freudenstein and 100, 1000, 10000 (2,…,2), (4,…,4), (-11,…,-11), (13,…,13)

Roth
(2,…,2), (3,…,3), (-10,…,-10), (13,…,13)
The performance results by using a performance profile introduced by Dolan and More [7] are shown
in figure 1 and 2. The figures clearly represent the performance profile of, PRP, MMD, FR, CD, and
DY. The performance profile of PRP is the fastest but is failing in some test function as it is above the
other curves, which follows by MMD which has not failed in all the test function and is consider as best
of all the CG, then, FR, CD, and lastly by DY methods.
Of all the test problems, the new CG has proved better, from the graph, it is clearly shown that the
performance profile of MMD is faster in approaching the solution compared to FR, CD, and DY which
are in the same group with the new CG.
408
Figure 1. Performance profile concerning the number of iterations.
Number of iterations
1.0
0.8
0.6
ps(t)
0.4
MMD
PRP
0.2 FR
CD
DY
0.0
e0 e1 e2 e3
Figure 2. Performance profile concerning the CPU times.
409
CPU Times
1.0
0.8
ps(t) 0.6
0.4
MMD
PRP
0.2 FR
CD
DY
0.0
e0 e1 e2 e3
Conclusion
This paper gives a new conjugate gradient method for solving unconstrained optimization problems
using exact line search. This βMMD
k is superior when compared to other standard CG coefficients, and
the global convergence condition, sufficient descent condition, and numerical result are highly
encouraging.
Acknowledgments
The authors are grateful to the Ministry of Higher Education of Malaysia for the funding of this research
under The Fundamental Research Grant Scheme FRGS/1/2017/ICT03/UNISZA/02/1.
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411
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Assalamualaikum w.b.t and warm greetings,

PROFESSOR DR AHMAD BASHAWIR HJ. ABDUL GHANI

Copyright©2018 by the The 3rd International Conference on Business

To copy otherwise, to republish, to post on servers, or to redistribute to lists,

CONFERENCE PAPER, PROCEEDINGS & PUBLICATIONS

PROMOTION & SPONSORSHIP

LOGISTIC & TECHNICAL

CONFERENCE KIT, CERTIFICATE & REGISTRATION DAY

Dr. Norkhazzaina Salahuddin

Academic Staff Leadership and Fairness Perceptions of Effective Performance Appraisal 1

Academic Staff Leadership and Fairness Perceptions of

Performance of academic staff in the higher education institutions (HEIs) is

Keywords: Effective Performance Appraisal, Leadership, Procedural Fairness, Academic

Performance appraisal (PA) is an important human resource management (HRM)

Performance appraisal (PA) is the practice by which an employee’s job performance in

Studies show that employees’ perceptions of performance appraisal

Leadership has been an issue of discussion and research resultant of the

Transactional leadership involves closely observing for deviances, inaccuracies,

Perceived fairness practices regarding decisions on matters such as employee

Effective Performance Appraisal

Figure 2.1: Conceptual Framework

How transactional leadership and procedural fairness perceived in relation to

Agyen-Gyasi, K., & Boateng, M. S. (2015). Performance appraisal systems in academic

Babagana, S. A. (2014). Effects of Selected Human Resource (HR) Practices on

Cheng, S. Y. (2014). The mediating role of organizational justice on the relationship

Colquitt, J. A. (2001). On the dimensionality of organizational justice: a construct

Greenberg, J. (2011). Organizational justice: The dynamics of fairness in the

Idowu, A. (2017). Effectiveness of Performance Appraisal System and its Effect on

Ismail, A., Mohamed, N. A. K., & Rayee, M. R. (2017). Relationship between

Kampkotter, P. (2016). Performance appraisals and job satisfaction. The International

Khedkar, E. B. (2015). Analysis of Performance Appraisal Systems in Education Sector.

Northouse, P. G. (2012). Introduction to leadership: Concepts and practice. (2nd ed., p.

Othman, N. (2014). Employee Performance Appraisal Satisfaction: The Case Evidence

Phin, L. W. (2015). The effectiveness of performance appraisal in the private education

Shah, S. M. M., & Hamid, K. B. A. (2016). Moderating Role of Performance Appraisal

Tuytens, M. and Devos, G. (2012), “Importance of system and leadership in performance

TOWARDS A BETTER UNDERSTANDING OF THE MECHANISM

Keywords: Counterproductive Work Behaviour, Perceived Workload, Job Satisfaction

Research indicates that counterproductive work behaviour (CWB) is costly to

Furthermore, empirical and anecdotal evidence also indicates that

Conceptualization of counterproductive work behaviour

Perceived workload and CWB-S

H1: Perceived workload will be positively related to CWB-S

Mediating role of job dissatisfaction

Sample and statistical power

A convenience sample of 239 teaching faculty from large universities,

Perceived workload. Perceived workload was assessed using a five-item

Job dissatisfaction. To measure the construct of job dissatisfaction, we used a

CWB-S. To measure counterproductive work behaviour directed at student, we

Control variables. In addition to the key variables, four demographic variables

To address the issue of common method bias, we performed Harman's single

The measurement model, also called an epistemic relationship or outer model

Table 1: Measurement Model Results

Construct/Indicator Loading AVEa CRb

Counterproductive work behaviour .532 .814

bCR = Composite Reliability

Table 2: Fornell-Larcker Criterion Results

Table 4: Indirect effects of perceived workload on CWB-S through job dissatisfaction

Furthermore, to generate the point estimate and confidence intervals, we also

Figure 1: Model with direct effect

Figure 2: Indirect effect model

The present study has implications for management of higher education

Kaul, N. (2014). Servant leadership : A road to high performance. International Journal of