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Malaysian Management Journal (MMJ) Vol. 13 No.1 & 2 June/ December 2009


 
Does Causality Technique Matter to Savings-Growth Nexus in Malaysia?
Chor Foon Tang
School of Social Sciences
Universiti Sains Malaysia
 
Abstract Ɩ Full Text
The intention of this study was to investigate whether the causal inference between savings and economic growth in Malaysia is sensitive to the particular causality tests employed to ascertain the causal relationship. This study covered quarterly data from 1991:Q1 to 2006:Q3. The results suggested that the causal relationship between savings and economic growth in Malaysia is not sensitive to the particular causality test used. Thus, causality test plays no role in explaining the inconsistency causality result of savings and economic growth. Ultimately, causality test does not matter to savings-growth nexus for Malaysia.
 
Keywords: Causality; parametric; nonparametric; savings; growth.
JEL Classification Code: C14; C22; E21; O16.
 

 
Knowledge-Based Malaysian GLC: Are They More Innovative and Performing Much Better?
Badruddin A. Rahman & Mohd Noor Mohd Shariff
College of Business
Universiti Utara Malaysia
 
Abstract Ɩ Full Text
In the Knowledge-Age, knowledge and innovation is becoming the main driver of competitive advantage, especially for large organisations to create value and achieve prosperity. Subsequent to this, a quantitative study was conducted whereby data were collected using a mail survey sent to employees of listed Government-Linked Companies (GLCs). A total of 690 questionnaires were mailed out and 273 were returned and usable, representing a response rate of 39.5%. Using a disproportionately stratified sampling, the data collected was subject to structural equation modelling analysis. The objective was to develop and test a model of knowledge management initiatives, innovation, and performance for Malaysian GLCs. Confirmatory factor analysis was conducted to examine the validity of the measurement model and the structural model was also analysed to test the associations hypothesised in the research model. The actual findings showed that the proposed model fits the data well. Employees perceived knowledge management initiatives as important antecedents of innovation, and innovation in turn, result in better organisational performance.
 
Keywords: Knowledge management initiatives; innovation; GLC performance.
 

 
Factors Influencing the Effectiveness of Information System Implementation Among Small and Medium Manufacturing Enterprises in Malaysia
Noor Azizi Ismail
College of Business
Universiti Utara Malaysia
 
Abstract Ɩ Full Text
This study examined information system (IS) effectiveness and its influence factors in the specific context of small and medium manufacturing enterprise (SME). The model evaluated the importance of manager participation in IS implementation, manager IS knowledge and accounting knowledge, and external experts (vendors, consultants, government agencies, and accounting firms) for IS effectiveness. The sample included 232 SMEs registered with the Federation of Malaysian Manufacturers. The results showed that manager accounting knowledge, and the effectiveness of vendors and accounting firms, are essential for IS effectiveness. Overall, the results suggested that managers of SMEs need to acquire sufficient accounting knowledge to help them better understand business information requirements. Secondly, SMEs should engage qualified vendors who have experience and understand unique characteristics of SMEs to overcome their lack of IS knowledge. SMEs should also exploit their good relationship with accounting firms to help them implement effective IS. Finally, it is important for SMEs to learn from their IS implementation so that opportunities can be recognised and priority given to initiatives that help IS support their information needs.
 
Keywords: Information systems effectiveness; information systems success; information technology adoption; small and medium enterprise; Malaysia.
 

 
Assessing the Relationship between Organisational Commitment and Knowledge Sharing Behaviour
Faizuniah Pangil
College of Business
Universiti Utara Malaysia
 
Aizzat Mohd. Nasurdin
School of Management
Universiti Sains Malaysia
 
Abstract Ɩ Full Text
Knowledge sharing is one important activity in knowledge management. It enables knowledge to be created, as well as acquired and used by others. However, there are reasons to believe that employees are reluctant to share knowledge with their colleagues. Thus, in order to ensure the success of knowledge management effort, knowledge sharing among employees must be encouraged. Though studies had shown that there are many factors that might affect knowledge sharing behaviour, this paper aims at exploring the relationship between organizational commitment and knowledge sharing behaviour. Regression analysis on data gathered from a sample of 114 R&D employees’ indicated that affective commitment and normative commitment were significant predictors of tacit knowledge sharing. Additionally, explicit knowledge sharing was significantly and positively predicted by affective commitment. Implications, limitations, and suggestions for future research are highlighted.
 
Keywords: Knowledge sharing behaviour; organisational commitment; research and development (R&D) employees; Malaysia.
 

 
Dominant Personalities in Board Committees, Company Characteristics, and Internet Environmental Disclosure by Malaysian Listed Companies
Ali Saleh Alarussi & Mohamad Hisyam Selamat
College of Business
Universiti Utara Malaysia
 
Abstract Ɩ Full Text
This paper investigates the determinants of internet environmental disclosure (IED) amongst Malaysian listed companies. Ten variables have been tested using data collected from 170 Malaysian listed company websites, namely, dominant personalities in the audit committee, chairman of audit and nomination committees, dominant personalities in the audit and nomination committees, internationality, leverage, foreign shareholders, level of technology, firm age, number of shareholders, and listing status. It was found that internationality, foreign shareholders, level of technology, firm age, number of shareholders, and listing status are significantly affected by the level of IED. However, dominant personalities in the audit committee, chairman of audit and nomination committees, dominant personalities in the audit and nomination committees, and leverage did not show a significant relationship with the level of IED in Malaysia. The study provided some evidence to support signaling theory, shareholder accountability theory, and cost and benefit hypothesis in relation to internet disclosure.
 
Keywords: Determinants; internet environmental disclosure; listed companies.
 

 
Performance Appraisal Decision and Cognitive Processing Model: A Case of Novice and Expert Raters in the Educational Organization
Rusli Ahmad
Faculty of Cognitive Sciences and Human Development
Universiti Malaysia Sarawak
 
Azman Ismail
Universiti Pertahanan Nasional Malaysia
Mohamad Madi Abdullah
 
College of Business Management and Accounting
Universiti Tenaga Nasional
 
Abstract Ɩ Full Text
This paper explores rater (novice and expert) understanding of the decision-making process in the performance appraisal system (PAS) by looking at the cognitive processing model (CPM). Interviews were conducted using a semi-structured cognitive mapping protocol involving 22 Malaysian public school administrators and were analysed using key word analysis. The decision explorer software was used to map the thinking activities involved in the rater decision-making process. The findings revealed that raters recognised the CPM steps in their performance appraisal practice. The study also identified the differences between individual novice and expert raters’ CPM in terms of concept and complexity, and also an attempt was made to compare the CPM practised by the raters with that suggested in the research framework. Every cognitive map by the raters has its own uniqueness and represents raters capability to process relevant information involved during the performance appraisal decision-making process. This paper contributes to the body of knowledge by offering a new perspective to understanding performance rating by looking at the steps involved in CPM. The research also offered some insights to policy makers, practitioners, researchers, and scholars in order to undertake further research and analysis using the steps in the CPM in a new issue, context, and environment.
 
Keywords: Performance appraisal; cognitive process model; decision making; public service.