Journal of Entrepreneurship, Business and Economics

1-17

Authors: Zahariah Sahudin, Hasni Abdullah, Husniyah Abdul Rahim, Nur Zahidah Bahrudin, Faridah Pardi

This paper intends to find out the factors influencing the company’s performance in Takaful industry in Malaysia. It is done by investigating on the micro level factors such as liquidity and firm size. For macro level factors, the study employs inflation and gross domestic product to know their influence towards performance of Takaful companies. The data for this research were gathered from the annual report of the company itself and from the World Bank website. The duration of the study is from year 2011 until 2020. The sample size of the study is five Takaful companies, and it makes the observations become 50. Panel Data Analysis is used to analyse the data. As a result, it shows that liquidity, size of the firm and GDP have significant relationship with the performance of Takaful companies in Malaysia. It is hope that the findings from this study will give impact and contribution towards the existing body of knowledge. Furthermore, it will give better understanding to the managerial level in order for them to improve their firm’s performance, thus will improve takaful industry performance in Malaysia.

38-54

Authors: Rafiatul Adlin Hj Mohd Ruslan, Muhammad Azman Ibrahim, Nor Harlina Abd Hamid

In light of the emergence of artificial intelligence in financial technology and the fourth industrial revolution, this study aims to propose a research framework on the decision of youth investors in Malaysia to use robo-advisors. This study will examine the youth investor characteristics and robo-advisor characteristics that may influence youth investors' usage of robo-advisor platforms. Technological advances and knowledge-intensive activities increasingly drive economic growth; therefore, research on factors affecting the use of robo advisors should be performed to understand why more young people are investing in digital platforms. This objective will be answered using logistic regression throughout the study.

71-108

Authors: Mohd Rahim Khamis, Mohd Faizal Kamarudin

The dearth of study on the factors determining compliance behavior of business zakat among SMEs are hardly found in literature and empirical evidence as well. Due to that, this study aims to identify the relationship between factors determining compliance behavior of business zakat among SMEs. 276 questionnaires managed to be collected from SMEs in Selangor. Logistic regression analysis was presented to predict compliance behavior of business zakat among SMEs from selected factors determining. Six factors were identified and included in the model; religious practices, level of knowledge, length of business operation, government incentives, organization factors and law enforcement. The findings of logistic regression analysis revealed that full model which considered all the six factors are significant and perform well in explaining the factors determining compliance behavior of business zakat among SMEs. Four factors (religious practices, level of knowledge, organizational factors and government incentives) significantly predict compliance behavior of business zakat among SMEs. Based on the analysis, this study will hopefully shed some light to help zakat organization in implementing strategies to attract more Muslim entrepreneurs to comply pay business zakat, especially among SMEs.

138-153

Authors: Ahmad Zuhairi Zainuddin, Nur Zulaikha Zainuddin, Ariff Azly Muhamed, Norzawani Ibrahim, Noor Azlina Muhamed Yunus

Consumer perceptions of product country-of-origin have shifted from one fresh perspective to another in the current and competitive period of global marketing. The new view could lead to both positive and negative outcomes in terms of dimensions. This study aims to contribute and gauge a better understanding of the country of origin toward purchasing intention of cosmetic products in Malaysia’s consumer perspective. The principal objective of this research is to perform a conceptual framework to examine the relationship of country origin towards purchasing intention of cosmetic products among Malaysian consumers. This study proposed to utilise a survey method and the data will be collected specifically in the Klang Valley area. The originality of this research is on its examining of the relationship among country of origin on purchasing intention of cosmetic product in Malaysian consumers context, something has been ignored in the previous studies. This conceptual model is expected to be contribute to the advancement of knowledge in cosmetic product purchase intention among Malaysian consumers and to get a clear picture of how the factor of the country of origin affects the consumer purchase intention for cosmetic products.

165-200

Authors: Charles Nwoko, Khashayar Yazdani

Since the time corona virus disease (COVID-19) outbreak was first reported in December 2019, the world has never been the same. With rapid spread of the disease, individuals, organisations and governments took steps to curtail the damage that followed including travel restrictions, social distancing and remote working. Little is known based on empirical evidence of the relationship between remote working and employee motivation. This study employed survey research design, and analysed data using structural equation modelling. Using self-determination approach, the study found that, although remote working saved commuting time for employees and improved work-life balance for most, it did not improve employee motivation. One reason for this was that remote working took employees by surprise and many saw it as forced flexibility because they had no other option and had no input in the decision to work remotely. The negative relationship between remote working and employee motivation is also connected to lack of face-to-face collaboration, inadequate peer support and social isolation. Building digital competencies require time and effort, and the frequent interruption of work due to other demands at home negatively affected work, creating stress, mental health challenges and other psychosocial risk issues. These present an opportunity for organisations to formulate and implement policies that support remote working, and ultimately improve engagement and motivational outcomes in the new normal.

1-27

Authors: Soo-Cheng Chuah, Chong Siew Huay, Farawaheeda Binti Azman

The initial intention of practicing the collective way of consumption by the consumers was initiated by the idea of ethical consumption for those that yearned for social embeddedness with communal consciousness. Collaborative consumption is a new way of consumption practices beyond the less sustainable traditional linear consumption practices. This study examines the relative influence of consumers’ reasoned action variables of attitude, subjective norms, and perceived behavioral control on collaborative consumption by applying the theory of planned behavior The study framework also included consumers’ underlying values and beliefs of behavioural and control beliefs. A survey consisting of 249 samples size was collected and Partial Least Square regression (PLS-SEM) was employed to test the hypotheses. The results show that attitudes and perceived behavioural control are positive and significant in influencing collaborative consumption participation among Malaysian consumers. The behavioural belief of cost savings and community with others are found as consumers’ attitude belief underlying intention to consumer collectively. Consumers’ collaborative consumption intention is more influenced by economic motives than normative motives.

53-78

Authors: Singh Jit Singh Keshminder, Soo-Cheng Chuah, Melissa Shahrom, Muhammad Azman Ibrahim, Siti Mahirah Mohamed

With the marginalised group gaining greater attention for employment, this paper explores the barriers faced by ex-offenders during the hiring process. This study uses a qualitative approach via face-to-face semi-structured. Twenty-one cases were selected from the Malaysian bakery businesses since it actively hires ex-offenders. Findings demonstrate that job barriers faced by ex-offenders generally consisted of their self-efficacy belief, attitude, job-related skills, and self-appearance, which were fairly within their control to manage. Meanwhile, the type of offence and gender discrimination were two other barriers identified; however, these obstacles were beyond their control. This study is the first to propose a training framework to help relevant authorities assist the ex-offenders in reducing the employment barriers and justifying the training performance as a testimonial in convincing potential employers of their credibility.

95-123

Authors: Siti Nurhidayah Mohd Roslen, Azlul Kalilah Zaghlol, Muhammad Ridzuan Abdul Aziz

The purpose of this paper is to examine the effect of financial risk factors on Sukuk market development in Malaysia during the period 2015 to year 2021. To capture the effect of financial risk factors on Sukuk market development, the authors estimated the long-run linkage by using ARDL bounds testing approach to cointegration. This study confirmed the existence of both long-run and short-run relationships between the financial risk factors and Sukuk market development. The authors also found that the coefficient for international liquidity stability is positive and statistically significant in the long-run, but negative and statistically significant in the short-run. Findings obtained in this research can further justify the premium price to be paid in purchasing Sukuk as compared to conventional bond which may be beneficial to Sukuk market players in understanding these securities better in capitalizing its benefit to portfolio diversification. The use of ARDL approach that examines the long-run and short-run effects of financial risk factors on Sukuk market development in Malaysia makes the current study value added to the literature since there is scant research conducted in the same area using samples from an emerging Asian market.

144-169

Authors: Nur Hazimah Amran, Wahida Ahmad

Income diversification sounds like more invulnerable yet, it is not always the case. Income diversification in banking could be advantageous or disadvantageous. This is because at one hand, income diversification mitigates the risk exposure, and on the other hand, it exposes the banks to more vulnerable financial health. Using unbalanced panel data of cross-countries that spans from 2009 to 2018, the study aims (i) to investigate the factors that influence banks' fragility; (ii) to compare significant differences in banks' fragility levels between Islamic and conventional banks and; (iii) to assess the interaction effects of income diversification on the relationship between size and banks fragility. The study employs a random effect model with cluster standard error in order to rectify the heteroscedasticity and autocorrelation issues. The study discovers capital level, cost efficiency, credit risk and size are the driven factors for banks fragility. Higher capital level and credit risk hamper the banks fragility. Corroborating to the too-big-to-fail theory, larger banks are more exposed to vulnerable of banks fragility. Interestingly, it is proven that different level of income diversification interacts the relationship between size and banks fragility differently. It is proposed for smaller banks to less focus on diversifying their income. Instead, the smaller banks should focus on the traditional banking businesses in which, accepting deposits and providing financing. Meanwhile, the larger banks are proposed to follow portfolio theory by diversifying their income in order to mitigate the banks fragility exposure.

216-255

Authors: Norfarah Nordin, A.K. Siti-Nabiha, Nur Farah Mohd Noordin

The purpose of this study is to examine the effect of competency on internationalisation orientation through the mediation of commitment to learning and coordination. This study also examines the moderation effect of length of business in international new ventures (INVs) on the model. This research focused on INVs belongs to women SMEs in Malaysia. Length of business since inception is hypothesised to interact with commitment and coordination, and thus leads to stronger effect on internationalisation orientation. Quantitative research employing a cross-sectional survey is the method chosen for the research design. These hypothesised relationships are tested using mediation effect test whereas, moderation effect test performed using product indicator approach employing Partial Least Squares-SEM technique. Survey data collected from 154 owned by women entrepreneurs. The samples selected based on directories of exporters in Malaysia employing purposive sampling. The research found commitment to learning and coordination are significant mediators transmitting the effect of competency towards internationalization orientation. The moderation effect of length of a business, also found to be significantly strengthens the effect from coordination towards internationalisation orientation, and strengthen the effect of commitment towards internationalization orientation.

1-17

Authors: Masturah Ma’in, Shahariah Asmuni, Sutina Junos, Siti Nurhafiza Rostam, Noor Hidayatul Aqmar Azmi, Khairunnisa Rabiah Sahidza

Firms that are ESG compliant have better governance, care more about the environment and sustainable development, have lower profits volatility and access to lower-cost funding. Many investors can easily make judgment based on firm performance rather than financial success if ESG is incorporated into a firm's investment decision. The purpose of this study is to examine the relationship between ESG score, profitability, growth domestic product (GDP) growth, labor force, and population with Malaysian firms’ performance. A multiple regression technique is used to estimate the ordinary least square (OLS) method from year 2010 to 2020. The result identifies that ESG score, GDP growth, and population has significant relationship with firm performance.

44-62

Authors: Roslina Mohamad Shafi, Norsaliza Abu Bakar

Climate change and environmental issues have an impact on the overall stability of the financial system. Intermediaries that operate on a long-term horizon are exposed to the consequences of extreme environmental events. Banking sectors and insurance companies could be the most vulnerable and sensitive to these issues. Consequently, the aims of this paper is to review recent development on the risk frameworks developed by regulators and to classify the climate-related risks, and to explore whether these risks affecting the costs and benefits that is related to organizations.

86-109

Authors: Hafierul Hafiz Md Razi, Khairil Adam Roslly, Salehhuddin Jurimi, Sharizan Sharkawi

The Separation at Source Initiative (SSI) was launched and became effective in September 2015 under the Solid Waste and Public Cleansing Management Act 2007 (Act 672). Malaysian households were required to participate by implementing waste separation at home, which fell under the classification of waste minimization and production goals. This qualitative research attempted to explore why the Separation at Source Initiative (SSI) did not fully commission in Malaysia. A content analysis approach was conducted to explore the obstacles and challenges of the citizen's participation in the SSI program in Klang Valley, Malaysia. Five individuals participated in this pilot study where data was collected using in-depth interviews. Several open-ended and probing questions were asked to elicit responses and experiences from the participants. Data collected was then analysed using Braun and Clarke’s thematic analysis, where units of meaning were identified from the participants’ responses. Creation of initial codes and categories were then developed and several themes had emerged from the data analysis process. Findings revealed that lack of enforcement, facilities, awareness and incentives as some of the barriers for participating in the SSI. Suggestions for better participation in SSI were also proposed to the rightful stakeholders in ensuring successful implementation of the program.

127-138

Authors: Ahmad Nizam Bin Mohd Yusof, Hartini Zuhaila Binti Jamal

The goal of this article is to investigate the role of human resource management (HRM) on innovation, organisational culture, and effectiveness. Firms' competitiveness and economic performance suffer when they are unable to expand and maintain their innovation capabilities. Malaysia's innovation capacity remains low. Furthermore, the lack of research and development (R&D) and innovation capabilities in the country shows significant hindrance. The ability of information and communications technology (ICT) enterprises to innovate is understudied despite the number of studies on the issue, specifically on ICT SMEs in Malaysia. Small and medium-sized enterprises (SMEs) in developing countries have received little attention in previous studies on Malaysian innovation because those studies have mostly focused on the manufacturing sector and include only large corporations from the West. A survey technique is applied to gather information from the owners, CEOs, and managers of ICT SMEs. This study plan to receive and evaluated 200 responses in total. The research models and hypotheses were evaluated using the Partial Least Squares (PLS) method. This research addresses the gap between Human Resource Management and innovation The study's goal is to improve and evaluate a theoretical framework that connects HRM and inventive potential. The study's objective is also to enhance and test a theoretical framework linking HRM and innovative capability. This research addresses the gap between Innovative Centric Human Resource Management and innovation, as well as the connection between HRM and organization culture in the context of innovation.

172-191

Authors: Merryandi Queen Tirtana, Albert Hasudungan, Valrhona Castella Tjong, Erica Novianti Lukas

The world is shifting digitally and just like humans, businesses need to adapt as well in order to keep up in this digital business era. In order to survive the current era, especially with the ongoing global pandemic, many micro, small, and medium enterprises (MSMEs) adopt e-commerce technologies to assist in their business growth. Several theories of e-commerce adoption have been proposed; the Technological Organizational and Environmental (TOE) Framework presents the impact of theoretical aspects in technology adoption. Therefore, this study aims to examine and identify how the TOE framework of e-commerce adoption contributes to improving the growth sales of MSMEs in the digital business era. The study utilizes cross-sectional data targeting 150 MSME owners and managers in Java’s Big City Clusters of Jabodetabek (Jakarta, Bogor, Depok, Tangerang, Bekasi). The analysis was divided into three stages of analysis: the multi-stage regression analysis, the confirmatory factor analysis, and the regression analysis. The final result shows that technological and organizational factors have a significant and positive relationship with the growth of MSME e-commerce sales. Meanwhile, the environmental factor shows otherwise due to external parties giving uncertainty to the growth of the business by adopting the technology. The negative result is affected by several factors, one of which is the use of latent variables, making it uncertain to sum any conclusion. Hence, it is implied that MSMEs need to continue or even improve business performance by being compatible with its infrastructure, and must be able to leverage the relative advantages of using the electronic commerce platforms as a tool. Moreover, MSMEs are expected to be ready to develop their business internally while remaining vigilant and prepared for future situations that may arise. Furthermore, policymakers should implement policies to support MSMEs in becoming multichannel sellers.

1-38

Authors: Chang Hong Lim, Ai Ping Teoh

This paper aims to investigate the impact of digital leadership on the institutional performance of private higher education institutions (PHEIs) in the digital era. Supported by the Resource-Based View Theory and the digital leadership dimensions based on the International Society for Technology in Education-Administrators (ISTE-A) standards, the study examined the roles of visionary leadership, digital-age learning culture, professional excellence, systemic improvement, and digital citizenship influencing the performance of PHEIs in Malaysia. An online questionnaire survey was adopted, and a non-probability sampling method utilizing purposive sampling was applied. A total of 121 usable responses were collected from leaders in Malaysia PHEIs and analyzed based on structural equation modelling via the SmartPLS 3.3. The results showed that digital-age learning culture, professional excellence, and digital citizenship positively affect the PHEIs performance. However, visionary leadership and systemic improvement do not have a significant positive relationship with performance. The findings provide information to future researchers and leaders in PHEIs on the vital roles of a digital-age learning culture, professional excellence and digital citizenship in today’s institutions. The novelty of this study contributed to the body of knowledge in digital leadership and performance in the context of PHEIs in an emerging market.

76-108

Authors: Pakyasri Visvanathan, Rajendran Muthuveloo

Government hospital nurses’ shortages in Malaysia due to early retirement or leaving the profession is apparent in the workforce nowadays. This results in the loss of experienced and skilled nurses and a financial burden to the government due to longer provision funds or pension pay-out. To better manage this workforce, it is crucial to identify and understand the individual needs that influences the nurses’ intention to retire. The four individual needs, namely, health, financial stability, individual career competency and work-life balance, are analyzed on their influence on retirement intention. The Self-Determination Theory (SDT) is used to support the paper’s framework, focusing on the individual needs and its relatedness to retirement intention. The endpoint of this study further identifies and confirms the individual needs’ (health, financial stability, individual career competency and work-life balance) that influences nurses’ intention to stay or retire from their current role. The study aims to aid the academics and practitioners to understand better and address the issue of retirement intention among nurses to reduce their shortage and the financial burden of the government. Subsequently, it aids in the finding of core needs that influences decision towards retirement besides knowing the preferred retirement age of nurses by analyzing the effect of individual needs on retirement intention.

141-176

Authors: Kavigtha Mohan Kumar

The article aims to focus on sustainable logistics practices and how their transport service providers performance is while offering transport services to manufacturers. The literature on sustainability indicators integrating social, environmental and economic dimensions are seldom appeared in the literature particularly in the logistics freight transport segment. In fact, the social aspect of sustainability practices was totally neglected in the literature and hence a study of this nature is initiated. The mediating effect of buyer supplier relationship between practices and performance has been further investigated. The framework has been developed from extensive synthesis of literature related to Sustainable Logistics Practices and Logistics Transport Performance with the mediating effect of supplier support. The study highlights on the manufacturers’ perceptions on transport logistics services. The existing research gaps on sustainable logistics were critically evaluated and is addressed through the research framework. This paper used triple bottom line approach to gauge the performance of trasnport service provider, TBL approach was less explored, therefore this research helps to address the gap identified under the sustainability logistics. In particular, most of the research on logistics practices either focus on individual dimension or combination of two dimensions based on environmental and economic aspects only. The present paper is among the few studies to conceptualize sustainability logistic practices for logistic freight transport sector in developing a holistic business model which includes social dimension as well.

212-264

Authors: Ariful Islam, Mazuwin Binti Haja Maideen, Sazali Abd Wahab, Noor Inayah binti Ya’akub, Ahmad Shaharudin Abdul Latif

Recognizing the multifaceted nature of firm growth, the search for a sustainable growth paradigm for small and medium-sized enterprises is prominent in academic debate. Despite the government's many assistance programs, small and medium enterprises are struggling to survive in the long run. Interestingly, sustainability reinforced by spirituality is viewed as a new strategic imperative and long-term objective for businesses. Recently, the adoption and usage of advanced technology have also enabled new capabilities, such as the ability to focus on fast-changing business opportunities. Thus, the study attempts to conceptualize an effective growth direction founded on the business perspectives of sustainability, advanced technology, and spirituality. A systematic analysis of literature has been executed to analyze the sustainable growth configuration triggered by recent business perspectives, in which over 369 publications are read and reviewed by the authors. It has also established the reliability and validity of literature analysis. Also, a short form of qualitative investigation has been used to support the conceptualization of the study. The outcomes of the study successfully established a new growth paradigm-the SHG (Smart Holistic Growth). Here, the strategic convergence of social, economic, environmental, technological, and spiritual performance has the potential to enable SMEs to survive in the long term. Each of these growth antecedents work interdependently with each other to strengthen the firms’ strategic objectives. On this note, the outcomes of the study can enhance business differentiation and competitiveness to endure environmental uncertainties. Also, this may be useful to promote the responsible use of advanced technology, which is key to creating active and informed citizens in the public sphere. This study is a unique attempt to extend the current understanding of the sustained form of growth of SMEs considering the integration of the mentioned business perspectives.

277-293

Authors: Thi Ngoc Thuy Doan, Chia-Hua Chang

Exporting is imperative for a contemporary business as it enhances firm competitiveness and performance. Previous studies have focused on the link between exporting and innovation. Firms’ innovation is enhanced after entering the export market by absorbing the knowledge of these markets. Nevertheless, there is little evidence in developing economies. In the Southeast Asian context, this relationship has not yet been explored. Thus, this study investigates the role of exports in firm-level technological innovation (product and process innovations) in Southeast Asia. Using a sample of 4,416 manufacturing firms in 2015 and 2016 and a multilevel mixed-effects logistic regression to deal with the hierarchies of the data set, the study finds empirical evidence that involvement in exporting activities can spur corporate technological innovation. The practical implication emphasizes the support of Southeast Asian governments to encourage exporting activities.