Malaysian Management Journal (MMJ) Vol. 22, December 2018
Critical Analysis on the Essence of Muḍārabah and Mushārakah and Its Relation to Ḍamān
Asmadi Mohamed Naim, Muhammad Noor Habibi Long, Muhammad Nasri Md. Hussein & Mahyuddin Abu Bakar
Islamic Business School (IBS), Universiti Utara Malaysia
Abstract | Full Text
The study aims to explore the permissibility of guarantee for muḍārabah and mushārakah based contracts and to discuss in detail the essence of muḍārabah and mushārakah, which both contracts contain the concepts of trust and profit sharing. The study conducted the qualitative research approaches which consist of documents analysis, interviews and observations in few phases. The study found that there are few matters that can be listed as genuine essence of muḍārabah and mushārakah. It also found that the majority of scholars were of the view of prohibiting capital guarantee by partners. It also proved that few statements such as Ibn Taymiyah’s statement were quoted out of context and definitely not appropriate to attribute the stance of those who allowed capital guarantee to him by using his statements, as those statements showed something else. However, a third party may undertake to bear the loss of capital due to misconduct or negligence on the part of the manager for both contracts. The rabb al-māl (capital provider) may also take collateral from the muḍārib, provided that the collateral can only be liquidated in the event of negligence or misconduct or violation of contractual terms by the muḍārib.
Keywords: Muqtada al-‘aqd, Muḍārabah, Mushārakah, Damān.
Related Party Transactions, Off Balance Sheet Items and Earnings Quality of Listed Deposit Money Banks in Nigeria
Lawal Mohammed
Department of Accounting, Faculty of Administration, Ahmadu Bello University, Zaria
Nafisa Abibakar
Distance Learning Centre, Ahmadu Bello University, Zaria
Abstract | Full Text
This paper examines the impact of related party transactions, off balance sheet items on earnings quality of listed deposit money banks in Nigeria over the period of 4 years (2011 to 2014). Data were collected from annual reports of the sampled banks. Descriptive statistics and correlation analysis were employed and also Ordinary least square (OLS) robust regression technique was used as a tool of analysis using panel data. The study reveals that related party transactions are positively and significantly related to earnings quality. On the contrary, off balance sheet items were found to be negatively and insignificantly related to earnings quality. Based on the findings, the study concluded that related party transactions have significant impact on the earnings quality of the Nigeria deposit money bank. The study recommends that Management of the Nigeria money deposit banks should be more aggressive towards the number of genuine related party transactions that can add value to their firms when making financial decision because it is likely to have positive effects on the quality of their earnings.
Keywords: Earnings quality, Off-balance sheet engagement, Related parties transactions, Deposit money banks.
Adoption of Circular Economy for A Sustainable Solid Waste Management System in Malaysia
Mohd Saiful Anuar Zainal & Zakaria Abas
Othman Yeop Abdullah Graduate School of Business (OYAGSB), Universiti Utara Malaysia
Abstract | Full Text
The purposes of this study are to address the current solid waste management (SWM) issues and to evaluate the best available practices that can be adopted to develop a holistic, integrated, effective and a sustainable SWM system in Malaysia. The idea is to analyze and to evaluate the weaknesses of the current practice of “extract-make-use-dispose” linear economic (LE) model that causes depletion of natural resources, massive increase in the generation of solid waste, severe degradation of the environment and a substantial cost to manage. These results will be synthesized to establish critical gaps to benchmark against the new economic model of a circular economy (CE) that works on a closed-loop system of reducing, reuse and recycle (3R). CE aims to efficiently utilize the resources to allow for maximum reuse through refurbishment, remanufacturing and recycling which will minimize the wastages for disposal. This study employs a literature review to identify relevant practices of a circular business model that can potentially be adopted, a life-cycle (LC) analysis to assess the environmental impacts and a study on waste characteristic and its composition to determine the waste fraction and the amount of energy contained in the solid waste. This paper gives an insight into the possibility of embracing the concept of a CE alongside with a suitable treatment and disposal technologies to develop a sustainable SWM system in Malaysia. This holistic approach would able to minimize the waste through waste prevention, to maximize the economic return through reuse, recycle and recovery, to give the protection to the environment and to improve the quality of life.
Keywords: Circular economy, 3R principle, Solid waste management, Sustainable development.
Mediating Entrepreneurial Creativity – The Effect of Human Resource Practices on Innovation
Juliansyah Noor
Departement of Management, School of Economic La Tansa Mashiro, Indonesia
Musa Alkadhim Alhabshy
Departement of Management, Universitas Jayabaya, Indonesia
Mohd Rafi Bin Yaacob
Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Malaysia
Abstract | Full Text
This research aims to evaluate the link between human resource practices (HRPs) and innovation with mediating effect of entrepreneurial creativity. This research uses the hierarchical analysis to examine data collected from entrepreneurs running 172 small and medium enterprises. The results show that (a) HRPs have a positive and significant effect on entrepreneurial creativity; (b) HRPs have statistically significant impact on innovation. These results provide empirical evidence that entrepreneurial creativity mediates the relationship between HRPs and innovation. Also, the findings provide evidence that the mediating role of entrepreneurial creativity causes improving employees' innovation. Also, the findings provide evidence that the mediating role of entrepreneurial creativity cause improving employees' innovation. By providing a cross-sectional examination of our model, we showed that HRPs and entrepreneurial creativity are of essence in shaping an innovative context. A comprehensive view on the triggers and outcomes of entrepreneurial creativity and innovation are needed, as the traditional unidirectional cause-effect rationale short in explaining how these concepts relate to one another and to entrepreneur experiences of HRPs.
Keywords: Human resource practices, Entrepreneurial creativity, Innovation.
Professionalism, Staff Competency and Financial Reporting Quality in The Public Sector
Maaruf Mustapha
Department of Local Government & Development Studies, Ahmadu Bello University, Zaria, Nigeria.
Abstract | Full Text
The financial reporting quality (FRQ) refers to better information dissemination across different users. It is a critical phenomenon for gauging organizations’ performance and survival. In many countries, the public sector has witnessed considerable changes in the past decade. The prominent one is the international public sector accounting standards (IPSAS) for the public sector entities. Drawing on contingency and institutional theories, this study tests the effects of professionalism on the relationship between staff competency and FRQ under the new accounting standards. By using a survey research approach and self-administered questionnaire, data was gathered from 118 directors of finance that represents the local governments of four states in the north-west geopolitical zone of Nigeria. The Partial Least Squares Structural Equation Modeling (PLS-SEM) estimate revealed a significant positive relationship between staff competence and FRQ. Conversely, no significant effect was found in the interaction of professionalism on the model. The implications from the study are discussed in the context of Nigeria.
Keywords: Financial reporting quality, Competency, Professionalism, Public sector accounting.
A Sensemaking Study of Change Initiative: The Case of A Malaysian Multinational Enterprise
Mohd Nazari Ismail & Nizam Abdullah*
Department of Policy and Business Strategy, University of Malaya, Kuala Lumpur, Malaysia.
Abstract | Full Text
Empirical evidence has emphasized the need for more research to uncover why does change fail and what can organizations do to improve their success rate. The purpose of this article is to provide an in-depth assessment on the implementation of centre-led change initiative in a novel empirical study in a Malaysian-based multinational enterprise (MNE). This study is based on multiple embedded case studies of four subsidiaries of a Malaysian-based MNE. This study urges centre managers tasked with implementing strategic change initiatives to emphasize the behavioral aspect of those involved in change throughout the entire development stage of the change. Any negative cues from change recipients need to be addressed and attended to as quickly as possible. This study is based on a section within the larger context of the MNE which is being researched. The study contributes to the literature of organizational sensemaking in change by extending the knowledge of new sensemaking forms namely communication intensity and resolution to barriers. This study also contributes to the empirical literature in change by providing an in-depth account of a Malaysian based MNE journey in implementing centre-led change initiatives.
Keywords: Sensemaking, Multinational Enterprise (MNE), Organisational change, Middle manager, Case study.
Intention to Consume Junk Food: A Study of Drivers for Control Implications
Ekta Duggal*
Motilal Nehru College, University of Delhi, India
Harsh V. Verma
Faculty of Management Studies, University of Delhi, India
Abstract | Full Text
Junk food has been making fast inroads in Indian market. Socio-culturally India has been a collectivist and tradition dominated society, where the concept of food is very different from junk food. This study aims to explore the rising incidence of junk food based on the theory of planned behavior and contributes to understanding the consumption drivers for possible social marketing implications. The findings suggest that out of the three constructs: attitude, social norms and perceived behavioral control, only perceived behavioral control was found to be the significant determinant of intentions. The study has implications for social marketers. For controlling the rising incidence of junk food, the strategy should focus on developing a sense of perceived control. This requires building self-belief and increasing barriers to access of junk food. This paper contributes to the body of literature in understanding consumption drivers of junk food, particularly in a collectivist and family oriented society like India and how efforts to control rising incidence of junk food can be made more effective.
Keywords: Junk food, Social norms, Neural network, Hedonism, Nutritional value.
Scope of Social Marketing in De-Marketing Smoking Habits: An Exploratory Study
Shazeed Ahmed*
Assam Institute of Management, Assam, India
Abstract | Full Text
Social marketing is the art of marketing for the society. With the present environment confronted with numerous issues related to society and health, social marketing can be used as a humble way to address them. This study explores the scope of social marketing in de-marketing smoking habits. Consequently, it unveils the perception of consumers on the issue of smoking, and examine how people react on seeing a form of de-marketing advertisement on the cigarette packet. Finally, this paper provides suggestions for campaigns through social marketing to address the issue. This study is exploratory and descriptive in nature, involving a sample of 400 respondents. Factor analysis has been administered in analysing the data. This study reveals that people smoke due to addiction and out of the desire to socialize. Further, a section of smokers view smoking as having the capacity to relieve a person from depression. As far as seeing the de-marketing advertisement is concerned, smokers have a tendency to go for emotional forgetting as they simply ignore the statutory warning. These are vital input for social marketers to formulate policies. Social marketers involved in de-marketing campaigns can highlight that a person can achieve status in a society by virtue of exploiting one’s own innovative skills and talents. Further positive contribution to the society gives one an eternal pleasure in life. Lastly marketers can pinpoint that regular exercise, good sleep, healthy diet and positive thinking can relieve oneself from stress.
Keywords: Social marketing, Statutory, De-Marketing, Emotional forgetting.
Impact of Information Technology on Human Resource Management Procurement Functions: A Case of A Nigerian University
Isiaka Sulu Babaita*, Amosa Jimoh Rafiu & Suleiman Ahmed Aremu
Isiaka Sulu Babaita*, Amosa Jimoh Rafiu & Suleiman Ahmed Aremu
Faculty of Management Sciences, University of Ilorin, Ilorin, Nigeria
Abstract | Full Text
Information Technology’s (IT) role in Human Resource Management (HRM) has attracted minimal interest and attention in the academia industry. The few empirical studies available did not examine the effect of IT on HRM on a comparative basis. Therefore, this study seeks to examine the nexus between IT and HRM procurement process in Nigerian Universities (education sector) with reference to the University of Ilorin. Other objectives are to:(i) examine the extent to which IT influences the HR procurement functions (ii) determine the nature of relationship that exist between/among IT tools and HR procurement functions. Questionnaire was served to the entire 50 members of the staff of the University HR department being census approach. Two hypotheses stated were tested using regression and correlation analysis. The findings revealed that IT has a significant effect on HR procurement functions and that IT tools and HR procurement functions are correlated. The study concludes that IT impacts strongly on HR Procurement activities. This study recommends that the management of Nigerian higher Institutions, inclusive of University of Ilorin, should consistently upgrade their HRIT software to cover a significant number of HR activities in line with the best HR practice as its long-term benefits exceed the pains of its initial cost.
Keywords: Information technology, Human resource management, Procurement functions, Self-service technology, Human resource information system.
The Effect of Service Quality on Customer Loyalty of Generation Y – An Empirical Investigation on Superstores in Bangladesh
Mirza Mohammad Didarul Alam*
Othman Yeop Abdullah Graduate School of Business (OYAGSB), Universiti Utara Malaysia
&
School of Business & Economics, United International University, Bangladesh
Abstract | Full Text
Today, retailers have been struggling to retain their existing customers in the face of severe competition in their business operations. By expanding the service quality, retailers will be able to stand out among the other businesses and create the opportunity to strengthen customer loyalty, particularly within the younger generation. The aim of this study is to propose and empirically investigate the mechanism of increasing customer loyalty of Generation Y (Gen Y) toward superstores by means of enhancing service quality practices. Based on a structured questionnaire, data was collected from 252 Gen Y consumers who have visited four leading superstores in Bangladesh. The data was analyzed through SEMPLS3.0 to test the validity of the measures, and used to examine the hypothesized relationships by employing structural equation modeling. The findings show that the Retail Service Quality Scale (RSQS) is a reliable and valid instrument for assessing service quality in the retail sector of Bangladesh. The structural model indicates that the customer loyalty of Gen Y toward superstores is positively influenced by retail service quality dimensions such as policy, reliability, personal interaction, physical aspect, and problem solving, in the order of influencing strength. This paper provides the research implications and avenue for future research.
Keywords: Service quality, RSQS, Customer loyalty, Generation Y, Superstore.
