From the 2nd International Conference on Advances in Business Research that was organized on November 16 and 17, 2016, several articles were selected for inclusion in this book based on their quality and novel contribution to their respective fields of study. This book is the result of the hard work of many individuals who want to ensure the advancement of knowledge through networks of experts.
Introduction
HRM emphasizes that employee well-being and satisfaction in the workplace are important to improve job performance. These firms understand that employee performance is derived from superior IM efforts which then translates to superior customer service performance by the employees.
Literature Review .1 Internal Marketing
Employee Performance
One of the elements used to measure organizational performance is the performance of employees through their level of productivity (Wong and Wong 2007). Basically, how employees behave in the work environment is more important to the notion of employee performance than productivity.
Research Framework
Conceptualizing the HR and IM Framework
With employee performance from the HR perspective (Carlson et al. 2006), the framework conceptualizes the relationship between IM initiatives and employee performance in terms of the behaviors exhibited as a result of the IM efforts. The proposed framework is shown in Figure 1.1, where the relationship between IM efforts and employee performance is postulated.
Conclusion
Research Direction
The managerial implications of the learning organization: A new tool for internal marketing. Journal of Services Marketing. Development of an instrument to measure internal marketing concept.The Journal of Applied Management and Entrepreneurship.
Introduction
Literature Review
IEO and Talent Retention of Engineers
Such efforts can be found in the studies of Abdull Rahman (2012) and George (2015), who highlighted the motivation of engineers and professionals to stay. Seven statements are used to measure engineers' intention to stay, which included “I want to stay in this organization indefinitely” and “I plan to stay here for a long time”.
Methodology
Measures
Engineer turnover can be controlled by assigning interesting tasks and providing feedback and encouraging creativity and originality of engineers. These separate studies measured retention items as dependent variables to predict the individual engineer's actual intention to remain.
Results
The sample items included "If I wanted to do a different job or function, I would first look at the possibilities in this company" and "If it were up to me, I would definitely work for this company for the next five years". The participants' answers were analyzed on a seven-point Likert scale, ranging from 1 (disagree) to 7 (strongly agree).
Discussion
For example, Kollmann et al. 2007) conceptualized IEO and the cultural environment, political, micro and macroeconomics that potentially influence entrepreneurial behavior of employees in the organization. Enacting IEO is an initial step in developing entrepreneurial intentions, and the unidimensionality constructs (e.g., innovativeness, proactivity, risk-taking, and autonomy) allow students, business practitioners, and employees to act as entrepreneurs in an organization (Bolton et al. 2012; Kollmann et al. . al. 2007; Wu 2009).
Conclusion
Explaining individual entrepreneurial orientation: conceptualizing a cross-cultural research framework.International Journal of Entrepreneurship and Small Business. The purpose of this study is to identify the critical dimensions of entrepreneurial orientation and determine the level of entrepreneurial orientation in technology-based SMEs in Malaysia.
Introduction
The present study is important as it aims to identify the critical dimensions of entrepreneurial orientation and to determine the level of entrepreneurial orientation in technology-based SMEs in Malaysia. This chapter consists of four parts in which the first section provides an overview of entrepreneurial orientation followed by research methodology, results, and finally discussion and conclusion were presented.
Methodology
He believes that the best results are achieved when individuals and teams provide the primary incentive to pursue business opportunities.
Results
Discussion and Conclusion
The level of the entrepreneurial orientation dimension is quite high, where all mean values are above 4. 2016).Management styles, entrepreneurial orientation and business performance of technology-based small and medium-sized enterprises in Malaysia.Doctor of Philosophy (Management), Universiti Teknologi Malaysia (UTM), Malaysia .
Introduction
Literature Review
A study conducted by Zahiruddin et al. 2011) in the service sector indicates that the management skills possessed by the entrepreneurs have indeed contributed to the success of this sector in Malaysia. In addition, a study conducted by Jusoh et al. 2011) suggests that the entrepreneur must qualify and adorn himself with a new skill and restructure priorities in applying high technology and entrepreneurial culture that is dynamic.
Research Methodology
Findings
The R-square of 0.200 indicates that only 20% of the variation in financial management among Klang Valley SME entrepreneurs can be explained by budgetary control, skills and knowledge, and cash flow management.
Discussion and Conclusion
Abstract Purpose - The purpose of this paper is to investigate the factors that may influence customers' intention to purchase halal personal care products using Decomposed Theory of Planned Behavior (DTPB). Results - The review found that intention to purchase halal personal care products was influenced by attitude, subjective norm and perceived behavioral control.
Introduction
It appears that the local halal personal care products have not yet become a "household brand" for Muslim customers in Malaysia (Mohd Hashim and Musa2013). Therefore, it is essential to explore and identify what are the factors that can really influence the customers' behavioral intention to purchase halal personal care products.
Intention-Behaviour Theories in Halal-Related Studies
According to EuroMonitor's Trade Sources and National Statistics 2012, only 0.5% of Muslim customers in Malaysia use Safi, the leading local halal brand for cosmetics and personal care products (Ramlee2013). Therefore, it is questionable why the purchasing behavior of Muslims today is still not inclined towards these halal personal care products whose ingredients have been proven to be halal and safe.
Development of Research Framework and Hypotheses
Research Framework
Hypotheses
Several halal-related studies have investigated the moderating effect of religiosity on the relationship between the TPB constructs and the dependent variable (e.g. Al-Nahdi 2008; Bonne et al. 2007; Husin and Rahman 2013). Following the footsteps of the above studies, it seems justified to investigate the moderating effect of religiosity on the relationship between the TPB constructs and the dependent variable.
Implications of The Study .1 Theoretical Implications
Practical Implications
Limitations of The Study
Conclusion
Green marketing and Ajzen theory of planned behavior: A cross-market investigation. Journal of Consumer Marketing. Dissolution and crossover effects in the theory of planned behavior: A study of consumer adoption intention.International Journal of Research in Marketing.
Introduction
Literature Review
- Entrepreneurial Competency
- Social Capital
- Experience
- Knowledge
- Entrepreneurial Opportunity
Networking is important in entrepreneurship as it can lead to sustainable opportunities that support the survival of the venture (Abdullah et al.2009). Relationships can be with the wider external public as well as the internal public of the organization.
Methodology
In discovery theory, competitive imperfections are assumed to arise exogenously as a result of changes in technology, consumer preferences, or other characteristics of the context within which an industry or market exists (Krizner 1973). However, it is also important to note the duration and direction of the process to avoid confusion in the search for the opportunity that global search can involve (Levinthal1997).
Findings
Based on Table 6.6, all correlations between opportunity identification and the identified factors, which are entrepreneurial ability, social capital, past experience and knowledge, are positively significant. In addition, the result also shows that the respondent's knowledge, social capital and past experience have a moderate positive Table 6.6 Pearson correlation between opportunity identification and identified factors.
Conclusion
This paper presents current research on intellectual capital and corporate entrepreneurship in achieving sustainable competitive advantage in SMEs in Malaysia. It focuses on two main questions: How intellectual capitals drive sustainable competitive advantage in SMEs.
Introduction
Managers and management scholars have traditionally embraced the premise that sustainable competitive advantage is vital in an organization and it can be achieved through innovation (Corbett et al.2013). However, to our knowledge, there is a dearth of research using corporate entrepreneurship as a mediator in the intellectual capital and sustainable competitive advantage relationship.
Literature Review
- The Impact of Sustainable Competitive Advantage on SME
- Intellectual Capital and Sustainable Competitive Advantage
- Intellectual Capital and Corporate Entrepreneurship
- Corporate Entrepreneurship and Sustainable Competitive Advantage
However, recent studies also suggest that intellectual capital has an insignificant relationship with financial performance (Bontis et al. 2015). Therefore, authors believe that sustainable competitive advantage can be achieved through intellectual capital and corporate entrepreneurship in SMEs.
Conceptual Framework
Based on the literature review, there is a lack of research demonstrating a clear relationship between business entrepreneurship and intellectual capital resulting in sustainable competitive advantage of SMEs in Malaysia. Indeed, intellectual capital has always been associated with sustainable competitive advantage, especially in today's knowledge-based economy.
Conclusion
Intellectual capital as a competitive advantage in new clusters in Latin America. Journal of Intellectual Capital. Intellectual capital—Key to sustainable competitive advantage for the SME sector. Economics and Finance Proceedings.
Introduction
Need for Online Health Empowerment
WBHIS is an example of online health education under the pillars of e-health, and is considered an effective way to promote health education to the masses through technology using online health information services. Others suggest that the problem is that it is unclear what kind of services healthcare consumers want and how best to provide them (Howitt et al. 2002;.
Malaysia National WBHIS
Thus, community empowerment becomes crucial, where ultimately it is communities, families and individuals who need to change their behavior to be healthier. In addition, it has also been pointed out that the adoption of telemedicine services in actual healthcare settings is slow despite the proliferation of telemedicine technology (Rho and Choil 2014).
Problem Statements
In addition, evidence has shown that in 2020 there will be an expected increase in the number of the elderly, which is 11.2% of the total population, and that Malaysia will soon reach the status of an aging population country in the year 2030 with 15% of the elderly population ( WHO2014). Therefore, it is imperative to conduct a WBHIS intention study that will cover broader ages of respondents regarding the significant factors influencing health consumers' intention to use MHP.
Recommendation
To consider other possible factors, it has been strongly emphasized that WBHIS present other challenges to users beyond just the general adoption of the technology (Torres2011; Limayem et al.2003). The above situations call for a need for academic attention to investigate health care service issues that cover many ages of health users, including the young and the elderly.
Conclusion
The success of e-Filing depends on the delivery of e-service quality and satisfaction to its users. This paper aims to investigate the effects of e-service quality on user satisfaction regarding the users of e-Filing in Klang Valley, Malaysia.
Introduction
The results show that responsiveness, ease of use, security/privacy and website design are the electronic service quality factors that should accompany the e-Filing service in order to ensure user satisfaction. Thus, to enrich the literature, this study examined the relationship between e-service quality and user satisfaction in using LHDN e-Filing.
Literature Review .1 LHDN e-Filing Service
User Satisfaction
The increase has not only benefited the tax payers but also the government where it has enabled LHDN to reduce its costs since the introduction of the e-filing system. The LHDN annual report stated that the agency saved about RM8.17 million in 2008 due to the increasing usage rate of e-Filing system by the citizens (LHDN 2014).
Security is considered to be one of the most important drivers of e-service satisfaction (Wingfield and Rose2001). Apparently, security is important as a critical aspect of e-service (Zhao et al. 2010) and addresses the technical specifications of a website (Al-Tarawneh (2012), protecting users from the risk of fraud and ensuring that the whole transaction should be carried out accordingly (Yomnak2007).
Methodology
Website design refers to the quality of the information presented and the layout of the website, such as the correct use of color, images and size (Papadomichelaki et al. 2012). Because the members of the population are difficult to locate, the snowball sampling method was chosen in this study.
Findings and Discussions
- Pro fi le of Respondents
- Results of Factor Analyses
- Results of Descriptive, Reliability and Correlation Analyses
- Results of Regression Analysis
The result shows that there is a strong relationship between ease of use and user satisfaction on LHDN e-Filing service. The result shows that there is a strong relationship between website design and user satisfaction on LHDN e-Filing service.
Conclusions and Recommendations
An Empirical Study of the Effect of E-Service Quality on Online Customer Satisfaction and Loyalty.Nankai Business Review International. Delivering service quality through websites: A critical review of existing knowledge. Journal of the Academy of Marketing Science.
Introduction
Literature Review
This phenomenon is called the exchange rate exposure puzzle (Bartram and Bodnar2007; Kang et al.2016). Nevertheless, the opposite can be assumed, as such companies tend to hedge exchange rate risks (Aggarwal and Harper 2010; El-Masry et al. 2007).
Data and Methodology .1 Data
Empirical Model
By adjusting real exchange rates for inflation, a more accurate effect of exchange rate on stock returns can be obtained because most ASEAN countries, including Malaysia and Singapore, apply managed floating exchange rate regimes (Bacha et al.2013). The study applied the Dickey-Fuller (DF), or Augmented Dickey-Fuller (ADF) (Dickey and Fuller 1979) and the Phillips-Perron (PP) (Phillips and Perron 1988) to test the hypothesis of a unit root to to check whether the variables under consideration are integrated over I(0), I(1) or if they are mutually integrated.
Results
Descriptive Analysis
Firm-speci fi c Exposure
Tables 10.2 and 10.3 show the results of the firm-specific exposure by foreign sales ratio and coefficient sign in Malaysia and Singapore, respectively. Surprisingly, only three selected firms in Singapore are exposed to USD and none in Malaysia.
Diagnostic Tests
In Singapore, the majority of exposed companies in the sample benefit from the depreciation of USD (net importers) but an appreciation of CNY and EUR (net exporters).
Discussion and Recommendation .1 Discussion
Recommendation
Firm-specific analysis of the exchange rate exposure of Dutch firms. Journal of International Financial Management and Accounting. Rethinking the exchange rate exposure puzzle by classifying exchange rate risks into two types.Global Economic Review.
Introduction
The other sections of this article are organized as follows: Section 11.2 discusses the literature review of the previous studies. Section 11.3 introduces the methodology used in this paper, and Section 11.4 presents the data and preliminary analysis.
Literature Review
Most relationships are unidirectional from the oil market to the Tunisian stock market, as indicated by Hamma et al. In contrast to Ravinchandran and Alkhathlan (2010), Arouri et al. 2010) used weekly data and linear and non-linear models to find that stock markets in Qatar, Oman, Saudi Arabia and the UAE reacted to oil price volatility, but not in Bahrain and Kuwait.
Methodology
VAR-GARCH Model
Note that the CCC assumption can be seen as restrictive given that the correlation coefficient is likely to change over time according to changes in economic and market conditions. Following Ling and McAleer (2003), the quasi-maximum likelihood estimation (QMLE) method is used to estimate the empirical model in order to take into account the fact that the normality condition is often rejected for most macroeconomic and financial series.
Data and Preliminary Analysis
Composite probability t values of the S&P 500 and SSE show significance at the 10% level, while both TASI and FBMKLCI were significant at the 1% level. Table 11.3 shows that the results of the ARCH-LM test provide strong evidence to reject the null hypothesis, which is significant at the 1% level for all return series.
Empirical Results
However, the oil price volatility has a negative impact on the S&P 500 as oil importing countries. A rise in oil prices consequently leads to higher operating costs, which will negatively affect the stock market.
Conclusion
Shocks and volatility between oil prices and Turkish sector returns. International Journal of Economics and Finance. Return and Volatility Interaction between Oil Prices and Stock Markets in Saudi Arabia.Journal of Policy Modeling.
Introduction
The quality of earnings will affect the efficiency of the companies as the financial report will reflect the actual economic activity. In addition, most of the studies related to cash holdings focused only on the developed countries.
Literature Review
Meanwhile, not all findings are similar as some researchers have argued and found that a higher level of cash holding will hinder the company's efficiency (for example, Raheman & Nasr, 2007; Couderc, 2005; Pan , 2006). It has been found that the poor quality of earnings that has resulted from the existence of agency conflict will lead to uncertainty or risk that will ultimately give an impact on firms' performance (Maham & Shabanha, 2015).
Data and Methodology
- Dependent Variable
- Independent Variable
- Moderating Variable
- Controlling Variables
- Model Formulation
Therefore, below is the cash ratio or also known as the cash to net equation applied in this study:. The accrual quality (AQ) for this study is the standard deviation of the industry-specific annual residual.
Conclusion
Accruals and earnings quality: The role of accrual valuation errors. Accounting Review, 77(S1), 35–59. Firms' cash holdings behavior and the financial environment: A critical review. International Journal of Economics and Financial Issues, 5,277–280.
Introduction
The relationship of JPY and CNY exchange rate movements to national market returns is simultaneous in both countries. Only JPY exchange rate returns have significant asymmetric effects on national market returns in Singapore.
Literature Review
The recent study by Ye et al. 2014) also did not include the asymmetric and lagged term in their firm's exchange rate exposure model. Lin (2011) investigated country-level exchange rate exposure in Asian countries using the asymmetric framework, but did not include Malaysia and Singapore in the sample study.
Data and Methodology .1 Data
Empirical Model
The unknown parameter cDi measures the asymmetry in exchange rate exposure regardless of the sign of the coefficient. This study also applied the GARCH(1,1) specification when there is evidence of the conditional heteroscedasticity in the error terms applied in previous exchange rate exposure studies (e.g., Bacha et al. 2013; Ye et al. 2014).
Results
Descriptive Analysis
To address the fat-tailed distribution property exhibiting significant kurtosis and skewness (Alberg et al. 2008), this study used the robust standard error (e.g., Bollerslev and Wooldridge 1992) or the Student's t-distribution (e.g., Bollerslev 1987) in the GARCH specification model. The study tested the hypothesis of a unit root using multiple unit root tests through Dickey-Fuller (DF) or Augmented Dickey-Fuller (ADF) (Dickey and Fuller 1979) and Phillips-Perron (PP) (Phillips and Perron 1988) ) to check that whether the variables were integrated over I(0),I(1), or whether they were mutually integrated.
Exchange Rate Exposure
However, it appeared that there was evidence of a lagged effect relationship between EUR exchange rate movements and country capital yields (see Table 13.3). Interestingly, only JPY had an asymmetric effect on the Singapore market. Table 13.1 Contemporary exchange rate exposure model.
Diagnostic Tests
Discussion and Recommendation .1 Discussion
Recommendation
A confirmatory analysis of the exchange rate exposure of Dutch companies. Journal of International Financial Management & Accounting. Pegged rates and foreign exchange exposure in East and Southeast Asia. Journal of International Money and Finance.
Introduction
One of the motivations for conducting this research is the lack of research examining the impact of tick size reduction on the market liquidity of the Malaysian stock market. Taunson and Poshakwale (2014) examined subsequent changes or reductions in tick size using data from Malaysia.
Tick Size Reduction and Market Liquidity
The next section explains the impact reduction in tick versus market liquidity using spread and trading volume as their proxies for liquidity. Therefore, this study uses spread and trading volume as proxies for market liquidity to investigate the impact of a reduction in tick size on Malaysian stock market liquidity.
Data and Methodology
To determine the impact of tick size on market liquidity, dummy tick creation is applied. Gerace and Smark (2012) and Taunson and Poshakwale (2014) created tick size as a dummy variable to examine before and after changes in tick size.
Result
This finding is consistent with Taunson and Poshakwale (2014) who concluded a negative relationship between cross size and trading volume. Although trading volume slightly rejects the null hypothesis at the 10% significance level, it still provides evidence of a statistically significant inverse relationship between tick size and trading volume.
Conclusion
Token size change and liquidity provision in the Tokyo Stock Exchange.Journal of the Japanese and International Economies. The Impact of Decimalization on Market Quality: An Empirical Investigation of the Toronto Stock Exchange.Journal of Financial Intermediation.
Introduction
Using ordinary least square (OLS) time series analysis, our results found that sovereign bond spreads can better explain macroeconomic variables than corporate bond spreads. Bond spreads are widely used by other researchers as a measure of credit risk and have been found to have predictive power of economic activity (Bernake 1983; Friedman and Kuttner 1989; Bonser-Neal and Morley 1997; Saito and Takeda 2000; Gertler and Lown 2000; Bleaney et al. al.2012; Mohapi and Botha 2013; Simon et al.2012; Guender and Tolan 2015; Schock 2015).
Literature Review
Issues on Measurement of Financial Fragility in the Banking and Corporate Sectors
These recent studies in Malaysia mostly predict financial fragility in the performance of the banking sector and pay little attention to the performance of the corporate sector and government-related firms in Malaysia. This study attempts to predict the existence of financial instability in Malaysia by using the corporate sector and government-linked companies instead of using the banking sector.
Indicators to Measure Financial Fragility
They also found a positive relationship between government bond spreads and industrial production in Spain and Germany, while showing a negative relationship with unemployment in Spain. The overall findings of the previous studies conclude that the relationship between the spread on government bonds and corporate bonds is positive and negative, respectively.
Data and Methodology .1 Data
- Empirical Model
- Unit Root Test
- Diagnostic Testing
- Ordinary Least Square (OLS) Regression
EXP(exports) and PVC (private consumption) are used as control variables. b1 and b2 were the coefficients that explained the size effect of the dependent variables and independent variables. In this study, the diagnostic test such as multicollinearity, autocorrelation and heteroskedasticity test will be adopted.
Hypothesis
To detect the autocorrelation problem, this study decided to use the Breusch–Godfrey LM serial correlation test, while White's test will be used to detect the heteroscedasticity problem. H1: There is a relationship between indicators of financial fragility and the interest rate. The null hypothesis will be rejected if there is evidence of a significant positive or negative relationship on the coefficient parameter, which proves that financial instability indicators will actually affect the country's macroeconomics.
Findings
Result of Unit Root Test
Result Based on Multiple Regressions
Among the four models, lnGDPPC is found to have a high r-squared at 88.74% which can be explained by independent variables, followed by lnGDP and lnTBILLS at 87.10 and 65.47% respectively, while lnCPI showed the lowest r-squared at 48.52% . can be explained by financial fragility indicators used in this study.
Conclusions
Towards a measure of financial fragility. Annals of Finance Determinants of banking fragility in Malaysia (Doctoral Dissertation, UTAR). 2008). The US financial crisis: the global dimension with implications for the US CRS report to Congress, The November Deregulation, credit rationing, financial fragility and economic performance.
Introduction
Literature Review
Rahman (2010) extended the work of Hannan and Hanweck (1988), where Zrisk is calculated as E(ROA) + CAP/rROA, where E(ROA) is the expected return on assets, CAP is the ratio of equity to total assets. , and rROA is the standard deviation of ROA. The bank's solvency is measured by the Z-score, which is the average return on assets plus equity divided by assets divided by the standard deviation of return on assets (Beck et al. 2013).
Empirical Evidence of CAMELS as a Measure of Bank Stability
Examiners try to gauge not only the bank's management, but also the board of directors. One of the objectives is to assess the impact on the bank's capital of internally generated funds.
Data and Methodology
Analysis and Discussions
Alliance Bank Maleisië Berhad AmBank (M) Berhad CIMB Bank Berhad Hong Leong Bank Berhad Malayan Banking Berhad - Maybank. CIMB Bank (L) Limited CIMB Islamic Bank Berhad Cibank Malaysia (L) Ltd Hong Leong Bank Berhad HSBC Amanah Malaysia.
Conclusions
Definition of financial stability.IMF Working Papers Bank insolvency risk and different approaches to aggregate Z-score measures:. Abstract This paper aims to make a specific contribution regarding the determinants of financial distress among undergraduate students in Malaysia.
Introduction
In turn, it will allow researchers to study "cases" over time and gain greater depth of knowledge about not only the presence of behavioral success-related traits, but also an understanding of how policy makers navigate public university students toward financial literacy and ultimately reduce financial distress by fine-tuning their preparedness levels.
Literature Review .1 Financial Distress
- Religiosity
- Financial Knowledge
- Financial Behaviour
- Framework and Hypothesis Development
In some cases, financial knowledge is also commonly associated with a selection of financial behaviors such as cash flow management, credit management, saving and investing (Hilger et al. 2003; Perry and Morris 2005). Lower financial knowledge was found to be significantly related to increased debt levels in another related study by Norvilitis et al.
Research Methodology
Expected Results
The results may suggest that policy efforts to prevent financial distress need to go beyond simply improving levels of financial knowledge and education (McCarthy 2011). We expect that behavioral characteristics will have a stronger influence on the incidence of financial problems than religiosity or financial knowledge.
Discussions and Conclusion
The role of parents in university students' financial behavior and attitudes. Journal of Economic Psychology. Personality factors, money attitudes, financial literacy, and credit card debt in college students. Journal of Applied Social Psychology.
Introduction
Literature Review
- Micro fi nance Institutions Performance
- Intellectual Capital
- Human Capital
- Structural Capital
- Customer Capital
Structural capital consists of concepts, models, patents, computers and systems created by employees, but owned by the organization (Akpinar and Akdemir 1999). As the organization improves its technology, develops the process and establishes other internal initiatives, structural capital will improve.
Methodology
