Using institutional theory and resource-based perspective to aid transformation of housing-related public enterprises in Malaysia

Abstract

There is a political will to transform public enterprises in Malaysia, beginning with 15 of the largest and most prominent government-linked companies. Some of these public enterprises are involved in the delivery of housing. Transforming organisations is about change. This paper makes the assertion that the institutional theory and resource-based perspective, in combination, aid in systematically identifying the agents of change of these public enterprises. Having tracked down the agents of change, the transformation plan can then be devised properly. The State Economic Development Corporations (SEDCs) were used to test this proposition. It was found that the main change agents for the SEDCs were the political masters (both at the state and federal government levels) and private developers. The transformation plan for the SEDCs might include separating ownership and management to minimise political interference of their day-to-day operations. In relation to private developers, the transformation plan might give emphasis on serving the housing needs of the well-to-do while not abrogating the social obligation of delivering housing to the poor. To compete against the private developers, the transformation plan might also re-orientate the SEDCs to perform just as efficiently.