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Malaysian Management Journal (MMJ) Vol. 18, 2014

Excess Capacity and Entry Deterrence: The Case of Malaysian Palm Oil Refining Industry
Choo Sze Yi & Suhaila H. A. Jalil
Faculty of Economics and Management
Universiti Putra Malaysia
Abstract Ɩ Full Text
This paper empirically examines the relationship between excess capacity and probability of entry into Malaysian palm oil refining industry using time series data. Capacity and production, two components crucial to the study of excess capacity, were included in the estimation model. The analysis was conducted specifically in the Malaysian palm oil refining industry and the sample covered the period from 1976 to 2011. Logit model was employed in this analysis, where the results exhibited that excess capacity does not significantly influence probability of entry into the palm oil refining industry in Malaysia.
Keywords: Palm oil refining industry, excess capacity, entry deterrence.

A Study of Perception of International Students on Quality of Malaysian Cars
Cheng Wei Hin, Filzah Md Isa & Hoe Chee Hee
UUM College of Business
Universiti Utara Malaysia
Abstract Ɩ Full Text
This paper examines how international students in a local public institution perceived the quality of Malaysian-made cars and whether the country of origin is an important factor in determining the purchase decision of a car. A total of 176 full-time registered international students from 12 countries participated as respondents in this research. A purposive sample was used in this research whereby respondents were asked to complete a self-administrated questionnaire. The findings supported the literature which indicated that most respondents have a more favourable perception of cars made in the developed countries than cars made in developing countries. The influence of country of origin, also known as the “made in” effect, has been broadly defined as the positive or negative influence that a country’s product of manufacture may have on consumers’ decision processes or subsequent behaviour. The result of this research showed that the effect of country of origin is discernable among the respondents.
Keywords: Perception, quality of cars, international students, “made in” effect.

Evaluating the Fit of the Parent Company With Businesses to Develop Corporate Strategy (Case Study: Ikco Employees Cooperative)
Mohammadali Sobhanallahi & Farzaneh Aslibeigi
Technical-Engineering Faculty
Kharazmi University, Tehran, Iran
Hossein Rahmanseresht
Business Management School
AllamehTabatabaie University, Tehran, Iran
Abstract Ɩ Full Text
Deciding business portfolio, investment approach, and parenting management style need to understand how the fit of the parent company and its business, and the degree of potential of value creation by the parent. So, it is important to measure the fitness. This research which analysed factors affecting the characteristics of business and the parent company, offers a model to measure fitness. The proposed model has been implemented in a holding company and its results can be used to develop corporate strategy.
Keywords: Parent company, corporate strategy, value creation, parent company fit.

The Impact of Commodity Prices, Interest Rate and Exchange Rate on Stock Market Performance: An Empirical Analysis From Malaysia
Norhafiza Nordin, Sabariah Nordin & Rusmawati Ismail
School of Economics, Finance and Banking
UUM College of Business
Abstract Ɩ Full Text
This paper examines the impact of commodity prices (palm oil price, oil price, and gold price), interest rate, and exchange rate on the Malaysian stock market performance. Employing the bounds test approach, the results of the study showed cointegrating relationships among variables. Specifically, the results revealed a significant influence of palm oil price on the stock market index. However, no significant influence was observed for both the oil price and gold price. Interest rate and exchange rate showed significant influences, which are consistent with past empirical studies. One important policy implication from this study is that the authorities should also pay attention to the effect of commodity prices, in addition to macroeconomic variables, in implementing relevant polices, as they may have a negative impact on the Malaysian stock market.
Keywords: Stock price behaviour, commodity prices, macroeconomic variables, bounds test.

National Identity (NATID) Framework in Multi-Ethnic Affiliations Consumer Market: The Case of Malaysia
Hamid Rizal, Alesia Sigang Gugkang, Geoffrey H. Tanakinjal & Sudin Lada
Faculty of International Finance
Universiti Malaysia Sabah
Abstract Ɩ Full Text
This paper examines the transferability of the national identity (NATID) framework in a multi-ethnic consumer market. Data were collected using heterogeneous purposive sampling from 403 respondents in Malaysia. This study exert also responds to the cross-cultural validation of measures used in international research whereby the authors assessed measurement invariance of the NATID dimensions construct using Malaysian and non-Malaysian samples. The analysis provided strong support for the factor structure, internal consistency, and discriminant validity on the transferability of the NATID framework on the Malaysian data sample. The result also suggested ethnic affiliations are a relevant unit of analysis and indicates that the relationship between the dimensions of NATID and overall national identity, varied across the three major ethnic groups. With reference to originality, this research is pioneering the adaptive etic approach to elicit inputs and to improve the transferability of the NATID framework.
Keywords: NATID, national identity, transferability, Malaysia, ethnic affiliations.

Strategic Investment And Excess Capacity: The Case Of Malaysian Palm Biodiesel Industry
Choo Sze Yi & Alias Radam
Faculty of Economics and Management
Universiti Putra Malaysia
Mad Nasir Shamsudin
Faculty of Agriculture
Universiti Putra Malaysia
Abstract Ɩ Full Text
With the growing demand of palm biodiesel worldwide, the government has recently announced the implementation of palm biodiesel programme effective July 2014. The implementation will boost the palm biodiesel industry and heighten the demand for palm biodiesel in the domestic market as well as in the international market. This paper thus examines the relationship between the use of strategic investment in excess capacity and the industry entry condition, using logit model. This study covered study period from year 2006 to 2013. The results from this study will further help policymakers to develop policy that is parallel with the condition of the industry.
Keywords: Palm biodiesel industry, strategic investment, excess capacity, market entry.

Image of Taiwan Held by Malaysian Muslim Tourists: Motivational Factors Influencing Overall Image Evaluations
Yiap Ling Chek
Ghazali Shafie Graduate School of Government
Universiti Utara Malaysia
Abstract Ɩ Full Text
In the recent years, the Muslim international tourists market has become the focus of the tourism industries in the Asia Pacific. Taiwan has also noticed the potential of this market segment, and started promoting its tourism products to the international Muslim tourists. In order to promote Taiwan effectively to this market segment, it is important to identify the factors that influence the perception of the Muslim tourists about Taiwan. With this notion, this study set out to establish the pre-visit tourism image of Taiwan held by the Muslim tourists, and determine the factors that influence the Muslim tourists’ image evaluations. This study employed both structured and unstructured methods in the survey, and the data was analysed using content analysis, factor analysis, and structural equation modeling. The findings indicated that Muslim tourists generally have a positive image of Taiwan; however, this image is fuzzy. Furthermore, the direct effect of travel motivation on affective images was significant, and the ‘Relax’ dimension of travel motivation has the greatest impact. However, the ‘Religious’ dimension of travel motivation did not have significant effect on affective image.
Keywords: Destination image, Muslim tourists, Islam, travel motivations.

Book Review
European States and Their Muslim Citizens: The Impact Of Institutions on Perceptions and Boundaries
Bowen, J. R., Bertossi, C., Duyvendak, J. W., & Krook, M. L. (Eds.)
(Cambridge: Cambridge University Press, 2014. 285 pp. ISBN 978-1-107-03864-6)

Conference Report
The Second Tourism And Hospitality International Conference (Thic 2014)
(Holiday Villa Beach Resort and Spa Langkawi, 5 May 2014)
A. Kadir Din
UUM College of Law, Government and International Studies
Universiti Utara Malaysia