Vol 22 (S1), 2019

Regular Articles

Intergenerational Social Economic Mobility Among Rubber Tappers in Baling, Malaysia
Peck-Leong Tan, Zakinan Nawaz S.H. Sahul Hamid, Norlida Abdul Hamid, Universiti Teknologi MARA
Page 1-10   |      Download PDF   |   ABSTRACT PREVIEW


Over the last 60 years, through many poverty eradication programs, Malaysia has successfully reduced the country’s level of poverty from about 50 per cent in 1957 to less than 1 per cent in 2015. However, poverty eradication does not always mean improvement in social-economic mobility that will eventually lead to income equality. This paper explores whether the success of Malaysian poverty eradication programs has resulted in also social mobility among the poor rubber tappers families. It measures the perceptions of social-economic mobility in term of education and income between the two most recent generations (fathers with his sons/daughters). Through a non-convenient sampling technique and using a structured questionnaire, a sampling of 60 families reveals that there is upward education mobility of at least one level higher. However, mobility only occurred mainly among fathers who have no formal education. In term of income mobility, the lowest income group enjoy a higher level of income mobility compared to those in the higher-income group. Overall, there is upward social-economic mobility among rubber tappers families in Baling, Malaysia but this does not reduce the income inequality gap for the poor rubber tappers. 

Socioeconomic mobility, Poverty, Inequality

The Impact of Safety Climate on Malaysian Seafarers’ Safety Performance: A Pilot Study
Suzanna Razali Chan, Norlida Abdul Hamid, Universiti Teknologi MARA
Kasypi Mokhtar,
Universiti Malaysia Terengganu
Page 11-23   |      Download PDF   |   ABSTRACT PREVIEW


Research has shown that safety climate predicts safety performance in a variety of settings. Safety climate study in the shipping industry is in the early phase and still growing. This research accordingly aims to examine the effects of safety climate towards safety performance among Malaysian seafarers. Through purposive sampling, a pilot study with a sample size of 50 respondents from among the seafarers working on various types of commercial ships based in Peninsular Malaysia was conducted. Accordingly, Exploratory Factor Analysis, Cronbach Alpha and multiple regression analysis were conducted to analyse the impact of safety climate on safety performance. In terms of the validity and reliability of items measurement of the questionnaire, the result indicates some level of significance and that the questionnaire is ready to be used for the actual study. 

Safety climate, Safety performance, Seafarers, Safety participation, Safety compliance

Determinants of Investment Performance: Evidence from the Islamic and Conventional Insurance Companies in Malaysia
Noryati Ahmad, Wan Evva Wan Suriea, Ummu Naziha Mohd Ariffin, Universiti Teknologi MARA
Page 24-42   |      Download PDF   |   ABSTRACT PREVIEW


In Malaysia, the insurance industry is operated by conventional insurance companies and Islamic insurance companies (or better known as Takaful.). Even though the nature of business of these two types of companies is almost similar however at operational and investment level, Islamic insurance companies must be in tune with the Shariah principles. Policyholders, investors and regulators are interested in the performance of these companies. Hence, this study aims to investigate the determinants of investment performance of Islamic and conventional insurance companies in Malaysia. Company-specific factors (company size, solvency margin and liquidity) and macro factors (GDP, interest and profit rates, equity returns and inflation) are independent variables employed in the study. A panel regression was estimated on 11 Islamic and 14 conventional insurance companies in Malaysia from the year 2006 to 2015. Interestingly empirical findings revealed that only liquidity and lagged GDP statistically significant relationship with the investment performance of Islamic insurance companies. On the other hand, in addition to liquidity and lagged GD, the investment performance of conventional insurance companies is also statistically and significantly influenced by interest rate and equity returns. These findings provide policyholders, investors as well as regulators with pertinent information related to an appropriate decision made on Islamic and conventional insurance companies. 

Equity returns, Conventional insurance companies, Investment yield, Islamic insurance companies, Solvency margin

Drivers and Challenges of an NGO Type Social Enterprise in Malaysia: A Narrative Study
Ummu Kolsome Farouk, Mok Siew Wing, Universiti Tunku Abdul Rahman
Page 43-66   |      Download PDF   |   ABSTRACT PREVIEW


The purpose of this research is to understand why a co-founder chose to establish a non-governmental organization (NGO) type social enterprise, the challenges he faced in managing its social and financial sustainability, and the initiatives he took to negotiate those challenges. A narrative approach was used in this qualitative single case study to analyse the self-accounts of the co-founder, and the various internal and external information. The primary drivers of the co-founder’s establishment of an NGO type social enterprise were his recognition of an opportunity to redress the prevalence of social ills adversely affecting children, his extensive experience on social issues impacting children, and the successful establishment of his first NGO. Primary challenges faced by the co-founder were notably in terms of maintaining the social relevance of his NGO and securing both its financial sustainability and future scalability. The research is limited by the fact that it is a narrative study, based upon the lived experience, of the co-founder of an NGO type social enterprise. Hence, although the generalizability of the findings is compromised, it can still be placed in the context of past research, in the area of social entrepreneurship in general, underpinned by Malaysia’s social entrepreneurship landscape. This paper provides evidence on how the co-founder of an NGO type social enterprise assessed its developmental stage, measured its success, and paved its path toward becoming a centre of excellence. 

Social enterprise, Drivers of social enterprise, Challenges of social enterprise, Management of social enterprise, Social entrepreneur, a NGO type social enterprise

The Moderating Role of Price Sensitivity and Social Norm in Understanding Customer Loyalty Among Passengers of Low-Cost Carrier in Malaysia
Zulkiffly Abd.Aziz, Norlida Abdul Hamid, Rosmimah Mohd Roslin, Universiti Teknologi MARA
Page 67-91   |      Download PDF   |   ABSTRACT PREVIEW


Adapting the concept of customer loyalty model as a two-dimensional construct incorporating both attitudinal (relative attitude) and behavioural (repeat patronage) perspectives, this study investigates whether cognitive loyalty, affective loyalty, and conative loyalty have significant relationships on customer loyalty. At the same time, the study will also examine whether the positive relationships between cognitive loyalty, affective loyalty, conative loyalty and customer loyalty will be stronger when social norm and price sensitivity are lower. This is consistent with the view by quite a few prominent researchers that customer loyalty may also be influenced by social norms and price sensitivity and these variables are viewed as moderators of loyalty. Data were obtained from 420 respondents at Kuala Lumpur International Airport2 (klia2). A convenience sampling was carried out through a survey using the intercept method. The data were analyzed by SPSS statistical program on descriptive analysis before developing a hierarchical component model through the repeated indicators approach, to assess the measurement and structure of the framework by SmartPLS version 3.0. The program is also used to test all the relationships between variables in the model. The result of this study indicates that cognitive loyalty, affective loyalty and conative loyalty have significant relationships on customer loyalty. It is also established that the positive relationships between cognitive loyalty, affective loyalty, conative loyalty and customer loyalty are indeed stronger when social norm and price sensitivity are lower among low-cost carrier passengers at klia2. Since the data were obtained solely from passengers at klia2, the results cannot be generalised as passengers in other states in Malaysia may have different perceptions on customer loyalty towards the low-cost carrier. This study provides further empirical support of the value of truly loyal customers which is defined in terms of both behavioural (repeat patronage) and attitudinal (relative attitude) perspectives in the low-cost carrier industry in Malaysia. 

Customer loyalty, Cognitive loyalty, Affective loyalty, Conative loyalty, Price sensitivity, Social norm

Ecologically conscious buying behaviour of organic products: A quantitative study in Thimpu, Bhutan
Chimi Yangzom, Jugindar Singh Kartar Singh, Asia Pacific University of Technology and Innovation
Page 92-113 |      Download PDF   |   ABSTRACT PREVIEW


This paper will explore some of the key antecedents that drive consumers’ purchasing intention of organic products in Thimpu, Bhutan. This was quantitative research and using a survey method, data was collected from a sample of 101 consumers in Thimpu, Bhutan. The AMOS software developed for analyzing the Structure Equation Modeling (SEM) and SPSS was used. Based on the standardized path coefficients of the structural model, the findings revealed that only availability of organic products and environmental concerns have a significant impact on the intention to purchase organic products. However, the results showed no significant direct relationship exists between attitude and intention to purchase organic products. The findings supported the results from some earlier studies and bring out several new ideas such as the importance of environmental concerns in Bhutan. The findings have significantly contributed to the advancement of knowledge in the ecologically conscious buying behaviour of organic products in Bhutan. The implications were in the areas of encouraging people in Bhutan on the purchase of organic products. Results of the research are useful for marketing professionals of green products to develop effective green marketing strategies. This research provides valuable insights into green consumer behaviour in Bhutan context by examining the factors that influence their purchase decisions towards organic products. 

Organic food, Buying behaviour, Environment concern, Availability, Attitude

Do Malaysian Consumers Participation Behaviour Lead to Attitudinal Loyalty in Spa & Wellness Services?
Narizan Abdullah, Norzalita Abd Aziz, Universiti Kebangsaan Malaysia
Page 114-127   |      Download PDF   |   ABSTRACT PREVIEW


Spa and wellness services are growing and expanding remarkably in this region, including Malaysia. Consumer participation behaviour has become an essential part of these service-related business organizations, demanded by both locals and foreigner consumers. Thus, understanding consumer participation behaviour and customer value are essential. Although several studies have proposed the importance of consumer participation behaviour, however, understanding of how consumer participation behaviour impacts on attitudinal loyalty are still minimal, this study aims to analyze the critical dimensions of consumer participation behaviour and its consequences. The primary purpose of this study is to examine consumer participation behaviour towards service loyalty. The proposed conceptual framework is established using Service-Dominant Logic (S-D Logic) perspectives and Social Exchange Theory in service business domains perspectives. Understanding consumer participation behaviour is significant in the service industry since service-dominant logic has emerged as a pervasive phenomenon. This study adopted a quota sampling method of 573 respondents were involved in this study. Structural Equation Modeling (SEM) with Partial Least Squares (PLS) version 3.2.7 is used to run the analysis and test the hypotheses. The results indicated that there is a significant positive relationship between consumer participation behaviour on attitudinal loyalty in spa and wellness services. Based on these findings, the study recommended, among other things, that spa and wellness service providers must concentrate on understanding their customer’ needs because their emotional influence drives customer purchase behaviour. The spa and wellness service providers need to develop a better plan and effective emotional marketing strategies to enhance their consumer participation behaviour in service delivery experiences. The effective emotional marketing strategies will influence customer purchasing behaviour to increase value among service providers and local consumer in the spa and wellness. 

Consumer participation behavior, Customer emotional response, Attitudinal loyalty, Spa & wellness services, Malaysia

Financing Activities: Peril or Prosperity?
Wahida Ahmad, Nur Hazimah Amran, Universiti Teknologi MARA
Page 128- 143   |      Download PDF   |   ABSTRACT PREVIEW


Financing activity is one of the vital parts of banking activities. Prudent lending provides a positive effect to the banks and the large extent portrays the prosperous economic condition of a country. On the contrary, imprudent financing supply exposes banks to multiple risks and causes deterioration to the economy. The study aims to examine financing activities conducted by Islamic banks in Malaysia by investigating the possible factors that influence their financing growth. Using Pooled Ordinary Least Squares (POLS) estimation, the study estimates the unbalanced panel data of 14 Islamic banks in Malaysia that covers nine (9) years data from 2007 to 2015. The findings reveal capital, asset quality, earnings, liquidity and size are the important determinants of Islamic banks financing growth in Malaysia. Empirical findings also discover financing growth of Islamic banks in the country is slower during the financial crisis period. However, the study is unable to find a significant difference in the financing growth between the crisis and non-crisis period. Interestingly, the study can provide evidence of prudent financing disbursement among Islamic banks in Malaysia. The results show Islamic banks behave following the expected manner in deciding to disburse more financing. Hence, it is possible to conclude Islamic banks in Malaysia behave prudently in financing decision and thus, higher financing growth implies a prosperous economic condition in the country. 

Asset quality, Capital, Earnings, Financial crisis, Financing, Islamic banks, Liquidity

Enhancing SMEs Employees’ Intention on Innovative Behavior: The Role of Self- Efficacy, Thriving and Perceived Behavioral Control
Rosmelisa Yusof, Universiti Sains Malaysia
Serene Ng Siew Imm, Ho Jo Ann, Azmawani Abd Rahman, Universiti Putra Malaysia

Page 144-160   |      Download PDF   |   ABSTRACT PREVIEW


SMEs are facing the challenges to cope with innovation and employees capabilities. The purpose of this paper is to examine the relationship between perceived behavioural control and intention of SMEs employees on innovative behaviour. The relationship between antecedents of self-efficacy and thriving were also examined in this study. The questionnaires were adapted from previous studies. After that, the questionnaires were distributed among employees working in Electrical and Electronic (E & E) Small and Medium Enterprises (SMEs). A total of 201 samples of data were analyzed using Partial Least Squares (PLS) technique. Empirical findings revealed that perceived behavioural control is significantly related to intention. The results also showed a positive relationship between antecedent of self-efficacy and perceived behavioural control, and thriving and perceived behavioural control. Management of SMEs should be responsive to the employee’s potential to become innovative. This study also provides practical guidelines for managers to enhance employee’s innovative behaviour by increasing the level of self-efficacy, thriving and perceived behavioural control towards innovative behaviour. This study provides useful information for researchers and entrepreneurs in realizing the importance of self-efficacy and thriving when employees’ experience perceived behavioural control towards the intention to engage in innovative behaviour. 

Innovative behaviour, Intention, Self-efficacy, Thriving, Entrepreneurship, SMEs

Building Students’ Loyalty Through Superior University Entities
Nafiza Mahayuddin, Wan Nurul Fatimah, Aznita Ahmad, Universiti Selangor
Mazni Saad, International Islamic University Malaysia
Mohd Hanafi Azman Ong, Universiti Teknologi MARA
Page 161-1
74   |      Download PDF   |   ABSTRACT PREVIEW


This study expands a previous qualitative investigation of students’ experience of existing entities in higher education institutions (HEIs) of Malaysia. We specifically investigated how the experience impacted students’ loyalty which eventually drove them to return to the same university for further studies. The Structural Equation Model with Partial Least Square (PLS-SEM) was done on a selected group of 200 undergraduates from these institutions. The findings illustrated the top three reasons that positively and significantly influenced their academic progression at the same university as Campus Infrastructure, Support System, and Teaching Quality. The study, therefore, concludes that if the average level of these three entities were good, then the level of Student Loyalty would also excel accordingly. The study highlights the need for HEIs to enhance their reputation by continuously improving and upgrading these identified entities to attract the university’s main stakeholders to come back for more quality learning experience. 

Satisfaction, Students’ loyalty, Quality services, Higher education institutions, Malaysia

Store Image Attributes and Customer Satisfaction of Convenience Store and Implications on Retail Innovation: The Malaysian Shopper Experience
Boon Chui Teo, Khairun Najwa Bt Ahmad Rathi, Siti Nor Syahirah Bt Mohd Saidi, Universiti Teknologi MARA
Page 175- 193
  |      Download PDF   |   ABSTRACT PREVIEW


New technology ideas have continued to change the retail industry landscape spurring innovation across the convenience store industry. Convenience stores (C-stores) are now considered as the fastest-growing retail vertically. Retailers are increasingly challenging the notion that c-stores should not be just mere pit stops. Modern c-stores are becoming convenience destinations. Recent developments witness new C-store chains popping up in Malaysia such as KK Mart, Happy Mart, Orange Mart, Family Mart and Irispay to compete along with conventional ones such as 7-Eleven and those stores subsumed with a petrol station. New C-stores have features beyond standard convenience offerings with digital technology to capture customer attention and drive store traffic. New players are expanding its brick-and-mortar presence, just like how Amazon shook up the C-store sector in 2017 with new checkout-free, ultra-convenient shopping experience. In the wake of this new retail innovation, how will other C-store retailers position themselves one step ahead of the game? This paper examines store image attributes influencing customer satisfaction of C-stores amongst the conventional one. These stores are considered as plain, outdated and at the boredom stage of its business lifecycle. C-stores may need to deliver a new experience that today’s digital consumers are looking for. The methodology utilized a survey questionnaire approach on 255 shoppers together with store observation and personal interview at a C-store franchise chain. Findings found personnel, pricing, merchandising and product assortment as predictors of customer satisfaction of C-stores. Findings had managerial implications for C-store retailers focusing on what innovations in-store image attributes can impact competition. Knowing how quick consumers are embracing technological advances in this C-store sector is imperative to stay ahead in this game. 

Convenience store, Customer satisfaction, Pricing, Personnel, Product assortment, Store image, Merchandising

The Adoption of Socially Responsible Investments: Gen-Y Perspectives
‘Ismah Osman, Geetha Subramaniam, Saadiah Mohamad, Azlina Hanif, Faridah Hassan, Salmiza Yaakob, Universiti Teknologi MARA
Page 194-222   |      Download PDF   |   ABSTRACT PREVIEW


Socially responsible investment (SRI) in Malaysia is still at its infancy stage since not many investors have been exposed to this type of investment. It is an investment that considers social justice, environmental sustainability, as well as the incorporation of ethical substances of business and trade. This study attempts to identify factors influencing Generation Y’s (Gen-Y) intention to adopt socially responsible investment. The theory of planned behaviour (TPB) framework is adopted and constructs which encompass attitude, subjective norms and perceived behavioural control are incorporated to examine how these variables sequentially influence the adoption of socially responsible investment. More importantly, the socially responsible consumption, as well as perceived moral obligation are also included utilizing developing an extended theory of planned behaviour research framework. The data was collected through a survey, employing a self-administered questionnaire using a 6-point Likert Scale among 390 respondents in Klang Valley. Findings show that all hypotheses are supported, except for the relationship between subjective norms and the adoption towards socially responsible investment (SRI). The findings provide useful information to the providers of investment products and services, especially in expanding their market towards promoting socially responsible investment particularly among Gen-Y. 

Gen-Y, Socially Responsible Investment (SRI), Theory of Planned Behaviour

Competition in Digital Economy: Fate of Consumer Welfare in Malaysia
Angayar Kanni Ramaiah, Universiti Teknologi MARA
Page 223-245   |      Download PDF   |   ABSTRACT PREVIEW


The digital economy relies on digital computing technologies and online platforms and its consumer market is based on the internet and the World Wide Web. Its rapid technological progress is very innovative and disruptive. Digital market revolutionized and affected the functioning of the established, often regulated business pattern which includes the market competition and consumer welfare both positively and negatively. Digitalization has transformed the manners consumers purchase the goods or services (i.e. the purchasing pattern) and impacted the choice, safety standard, and price determination methods. The platform-based business model involves multisided markets, network effects, and economies of scale, and rather complex and different from the traditional brick and mortar pattern. It has granted beneficial scientific breakthrough for consumers but the way consumers make their choices (consumer market behaviour) on the online platform, related algorithmic pricing, collusion, data gathering manner, and the anti-competitive merger has caused various concerns among the competition regulators concerning the related harm on consumer welfare. Notably, the conventional consumer protection law is unable to address these issues because it is built upon different underlying theories of harm. The objective of the paper is to study the effect of the digital market on consumer welfare generally and specifically within the scope Competition Act 2010. The study examines based on some recent experience and case study involving digital firm, mainly Uber and Grab to discuss how certain characteristics of the digital economy impacts the competition and consequently the consumer welfare in Malaysia. 

Competition law, Dominance, Digital economy, Consumer welfare

Eye Cannot Lie! Validating Effectiveness of Muslimah Fashion Brand Content Marketing: Evidence from Eye Tracker Data
Rosidah Musa, Janiffa Saidon, Nur Syakirah Ahmad, Universiti Teknologi MARA
Page 246-257   |      Download PDF   |   ABSTRACT PREVIEW


This paper contributes to content marketing research by identifying the content attributes that attract consumers’ visual attention. An exploratory study about content marketing was carried out to obtain what are the attributes that the firm need to consider when putting their content into a social media platform to promote their products. The content marketing in this study consists of photos and videos for Muslimah fashion of Brand X. To generate the result of content marketing attributes, the researchers have deployed eye-tracking device in this study to find what the eye fixation that leads to the attributes. Findings suggest that the firm need to consider about few contents that lead to most visual attention like models’ face, products and product information that affect the consumers’ attention. Through the heat map results, it reveals that the models’ faces that attract the most attention compared to the product sold. Thus, this study found an important implication by creating effective content marketing that can attract consumers to buy the products. 

Content marketing, Social media, Visual attention, Eye-Tracking, Muslimah fashion

The Effect of Teaching Methods and Learning Motivation on Accounting Learning Achievement in Terms of Student Perceptions
Reschiwati, Sekolah Tinggi Ilmu Ekonomi Y.A.I
Mustanwir Zuhri, ABFII Institute
Page 258-274   |      Download PDF   |   ABSTRACT PREVIEW


This study aims to analyze the perceptions of students about teaching methods of lecturers on student achievement in accounting lessons. This study also examined whether student learning motivation is a variable that moderates the effect of teaching methods on students’ achievement in accounting lessons. The population of this study is the faculty of economics at the University of Persada Indonesia Y.A.I Jakarta majoring in accounting. Sample selection was done by purposive sampling method and obtained 214 students who were sampled. The model is tested by Structural Equation Modeling (SEM) and uses the LISREL 8.80 (Linear Structural Relationship) statistical software package. From the results of the analysis, it can be concluded that there is a very significant influence between the way to teach lecturers and student achievement in accounting subjects. Student learning motivation also proved to be a variable that moderated the effect of teaching lecturers on student achievement in accounting. It can be said that the teaching method of accounting lecturers is good if supported by high learning motivation from students will result in good learning achievement in accounting lessons. 

Learning achievement, Learning motivation, Student perception, Teaching method