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Malaysian Management Journal (MMJ) Vol. 11 No.1 & 2 June/ December 2007

Domestic Macroeconomic Adjustment to Oil Price Shocks Under Different Exchange Rate Regimes in Malaysia
Fumitaka Furuoka, Wong Hock Tsen & Chong Hui Ing
School of Business and Economics
Universiti Malaysia Sabah
Ting Siew King
School of Business and Economics
Universiti Technology MARA
Abstract Ɩ Full Text
This study examined the insulation properties of flexible exchange rate regime and fixed exchange rate regime in response to the oil price shocks in Malaysia. A monthly time series data for the period 1980- 2005 was used to examine whether the response of output, exchange rate and price levels to the oil price shocks were different across the exchange rate regimes. For this purpose, this study employed the structural vector autoregressive model. Empirical results indicated that the short-run output responses to the oil price shocks are smoother under the flexible exchange rate regime compared to the situation under the fixed exchange rate regime.
Keywords: Exchange rate regimes; oil price; structural VAR modeling; Malaysia.

The Impact of Market Orientation on Business Performance: Evidence from a Developing Country
Sany Sanuri Mohd Mokhtar & Rushami Zien Yusoff
College of Business
Universiti Utara Malaysia
Abstract Ɩ Full Text
The main aim of this paper is to investigate the relationship between market orientation and business performance. Hypothesis concerning the relationship between market orientation and business performance were posited and tested. Data were collected using a mail questionnaire survey approach. This study employed a simple random sampling procedure in selecting the organisations for inclusion in the sample. A total of 158 Malaysian manufacturing organisations participated in this study. Factor analysis, Pearson correlation, and multiple regression methods of data analysis were utilised for hypotheses testing. The results revealed that market focus, market action, market planning, market feedback, and market coordination jointly explained 32.6% of the variance of business performance. Market focus and market coordination were found to have statistically significant association with business performance. The outcome of this study provides vital information from a developing country perspective on the impact of market orientation practices on manufacturing organisations’ performance.

Direct and Indirect Influence of HRM Practices on Employee Performance and Turnover Intention
Sushila Devi Rajaratnam
Research and Consultancy Centre
Cooperative College of Malaysia
Abstract Ɩ Full Text
This study attempted to narrow the dearth in the literature with regard to the influence of human resource management (HRM) practices on employees. The study, using a sample of clerical front liners in service-based cooperatives in West Malaysia revealed that HRM practices (training and development, performance appraisal, communication and participation, and rewards) had a significant direct positive and indirect positive relationship with employee performance. The indirect relationship was mediated by affective organisational commitment. In contrast, HRM practices only had an indirect relationship with turnover intention, mediated by affective organisational commitment. Affective supervisory commitment did not mediate the relationship between HRM practices and employee performance nor the relationship between HRM practices and turnover intention. The results suggested that HRM practices can enhance employee performance directly as well as indirectly, through fostering affective organisational commitment. In addition, HRM practices can reduce turnover intention only indirectly through enhancing affective organisational commitment.
Keywords: Human resource management; employee outcomes; employee commitment; employee performance; turnover intention; organisational commitment.

Long-Run Relationship Between Fiscal Policy and Economic Growth in Asia: Evidence Using Pedroni’s Cointegration Approach
Hussin Abdullah
College of Arts and Sciences
Universiti Utara Malaysia
Muzafar Shah Habibullah, Ahmad Zubaidi Baharumshah & Tan Boon Hui
Faculty of Economics and Management
Universiti Putra Malaysia
Abstract Ɩ Full Text
This paper investigates the long-run relationship between fiscal policy and economic growth in Asia between 1982 and 2001 through the application of Pedroni’s Cointegration approach. It examines two different channels through which fiscal policy can affect long-run economic growth in Asian countries. The first channel is when components and aggregate government expenditure affect the real per capita GDP, and the second channel is when the distortionary taxation, budget balance, and aggregate of other fiscal variables affect the real per capita GDP. There is a positive and statistically significant impact of health and education expenditure, aggregate of government expenditure, and aggregate of other fiscal variables on real per capita GDP. It was found that the defence expenditure, distortionary taxation, and budget balance are significantly and negatively related to real per capita GDP. The Pedroni Cointegration result establishes a long-run relationship between fiscal policy and economic growth.
Keywords: Economic growth; fiscal policy; government expenditures; panel cointegration test; FMOLS.

Developing Individual Willingness to Participate in Organisational Development: A Malaysian Case Study
Mohamad Hisyam Selamat, Muhammad Syahir Abd. Wahab & Mohd. Amir Mat Samsudin
College of Business
Universiti Utara Malaysia
Abstract Ɩ Full Text
Research has highlighted that organisational development (OD) is a complex issue as it requires the input of employees at all levels of an organisation. However, to obtain this is a challenge for organizations as the basic training and education offered by the organisations and experiences of the individuals on their own, and other factors such as fear and ignorance prevent such actions. For this purpose, other elements are also required. This research aims to identify and explain the usage of the elements that can encourage employees to contribute inputs necessary for OD. To achieve the aim, this research developed a conceptual framework based on the elements of understanding organisational roles, internal strengths, formal and informal discussion, and rational discourse. To illustrate the application of the framework in a real life setting, a case study approach that involved a large manufacturing organisation in Malaysia was employed. From this research, it was concluded that the future focus for the OD should be toward the development of staff members and creating suitable organisational culture and infrastructure so that knowledge sharing is promoted.
Keywords: Organisational development; tacit knowledge externalisation and sharing; conceptual framework; case study

Consumer Religiosity and Shopping Behaviour in Malaysia
Shafiek Mokhlis
Faculty of Management and Economics
Universiti Malaysia Terengganu
Leigh Spartks
Institute of Retail Studies
University of Stirling
Abstract Ɩ Full Text
There has been considerable research establishing a link between cultural and sub-cultural values, and aspects of consumer behaviour. However, religion as a sub-cultural element has received little attention from researchers. This study sought to examine the influence of religiosity on one aspect of consumer behaviour – shopping orientation. The research data was collected by means of a survey through personal interviews using a structured questionnaire. Out of 300 respondents targeted, 226 questionnaires were deemed usable for statistical analysis. The findings revealed that three shopping orientation factors, namely quality consciousness, impulsive shopping, and price consciousness were related to religiosity. It is suggested that religiosity should be included as a possible determinant of shopping orientations in consumer behaviour models.
Keywords: Religion; religiosity; consumer behaviour; shopping orientation; Malaysia.

A Confirmatory Analysis of Zakah Compliance Behavioural Intention on Employment Income
Zainol Bidin & Kamil Md Idris
College of Business
Universiti Utara Malaysia
Abstract Ɩ Full Text
A confirmatory test of Ajzen and Fishbein’s (1980) theory of reasoned action using structural equation modeling was carried out to study the impact of zakah compliance intention toward employment income. This study had two objectives: 1) to examine the reliability and validity of all variables in the theory of reasoned action using confirmatory factor analysis (CFA), and 2) to determine the relationship between each variable of attitude and subjective norm (obtained from CFA) with zakah compliance intention on employment income. Based on 264 respondents, we used CFA structural equation modeling as the measurement model in measuring attitude, subjective norm, and intention. This study used decomposition of variable in the theory of reasoned action to analyse zakah compliance intention of zakah on employment income. The results of the study indicated that the goodness of fit model comprising attitude, subjective norm, and intention is better when CFA was used. Three components of attitude and two components of subjective norm constructs were found to achieve unidimensionality, and convergent validity and discriminant validity. Thus, this study supported the argument that attitude and subjective norm in the model of zakah on employment income compose of several components and provide good reliability and validity if each component is tested with CFA. Additionally, this study also supported the relationship between attitude and subjective norm with zakah compliance behavioural intention. Recommendations for practice and limitations of the study are also discussed.
Keywords: Attitude; subjective norm; intention; zakah; confirmatory factor analysis.