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The barriers to the adoption of environmental management practices in the hotel industry: a study of Malaysian hotels

Purpose – The objective of this study is to investigate if the five barriers, namely, Regulation/Government, Customer Demand, Level of Competition, Greenness at the Organizational Level, and Attitude at the Organizational Level towards Change, greatly impact the costs and potential benefits of environmental management practices (EMPs). Design/methodology/approach – The target population of this research was 208 hotels, which are four- and five-star hotels in Malaysia. Due to small population, questionnaires were sent by mail to all the targeted four- and five-star hotels in Malaysia. Findings – Only Greenness at the Organizational Level was found to have partially supported EMPs. Even though the results show that there is significant impact overall between barriers and EMPs in 40 four- and five-star hotels in Malaysia. In other words, the drivers do influence hotels' application of EMPs but weakly. Research limitations/implications – The limitation that is worth mentioning is regarding the drivers of EMPs chosen in this research. While the result indicated that drivers of EMPs significantly influenced hotels' usage of EMPs, the range of R2 of the five drivers and the two dimensions of EMPs was relatively very low. Originality/value – A definitive conceptual framework of EMPs is essential, which could only be achieved through consensus and close cooperation amongst scholars and practitioners. For that reason, EMPs should not be seen as a mere collection of management systems but more towards management practices that are used within and for hotels' strategic purpose.

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Learn and thou shall thrive: advancing a model of workplace familism and organizational learning capability in small and medium enterprise (SMEs) manufacturers in Malaysia

Purpose – This paper proposes a conceptual framework that would be able to explain the importance of workplace familism on business performance through an organizational learning capability as a mediator. Design/methodology/approach – A conceptual approach is taken whereby this paper is based on an extensive literature review of workplace familism and organizational learning capability. Four prepositions were proposed to highlight the focus of this study which is how workplace familism can be capitalized through organizational learning capability to enhance SMEs business performance. Findings – This paper provides a theoretical discussion on the importance of organizational learning capability in ensuring the survival of the family business. The concept of workplace familism are relatively new, hence, it offers an interesting avenue for further research especially in the Malaysian context. Practical implications – The paper draws attention to the importance of workplace familism and learning organization in fostering entrepreneurial survival and performance among SMEs. Originality/value – This paper shed some insight on the subject on workplace familism and organizational learning capability in small and medium enterprise (SMEs) which hopefully would attract scholars and researchers to pursue more research on this area.

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Applying the concepts of simplicity and discipline for creating customers' value in a low contact services company: an exploratory study

Purpose – The research aims to find and highlight the process, procedures, and practices at AirAsia that deem to fit the characteristics of simplicity and discipline in the original model for creating value in the forms of lower operations costs, which ultimately translates into lower ticket price for Airasia's customers. Design/methodology/approach – A case study method is used in this study. It is appropriate as; the model has not been applied to a service organization. In exploring the concept of simplicity and discipline and how they create values, at a set of the best practices and procedures utilized by AirAsia are being scrutinized. Four employees at the executive and managerial level were interviewed. The author spent approximately two hours with the senior manager of Network Management Centre as all operations fall under his jurisdiction. Besides him, this study also took information from a technical service manager and two executives. The information collected from the staff is complementary to each other, ensuring the internal validity of the method. The secondary information was taken primarily from AirAsia's website: AirAsia.com. Findings – It is suggested that excellent practices and procedures done at Airasia characterize both concepts of simplicity and discipline, which in return help AsiaAsia in creating value for its customers. For example, the company decision to use one type of aircraft ensures its easy maintenance and training of staffs. The use of IT at the company helps the company plan the unplanned changes. The clever use of IT has enabled the control filter, as specified by Correa and Gianesi to function properly. It simplifies the booking, sales and checking-in procedures. Furthermore, the company has locked a partnership with its IT vendors for mutual benefits where AirAsia can constantly improve their system while the IT vendor learns to create innovative products according to customer requirements. Research limitations/implications – The result does not indicate that that Airasia's operational success is due to these concepts. Rather this article suggests that the concepts of simplicity and discipline, as proven to be successfully applied to manufacturing sector, could also be potentially applied to service organizations to helps firms create value, in this company in the form of low price ticket for affordable travel. Practical implications – Managers in a similar service industry could use the principles and practices proposed to potentially enhance its operations flexibility. Originality/value – This research is important as for one to understand the main topics of operations flexibility in services sector.

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Corporate governance and dividend policy in Indonesia

Purpose – This study aims at examining the impact of corporate governance on dividend policy among Indonesian companies. There are two theories of the effect of corporate governance on dividend policy: substitution and outcome theory. Substitution theory argue that corporate governance have negative effect on dividend policy, while outcome theory argue that corporate governance have positive effect on dividend policy. Therefore, this study investigates the effect of corporate governance on dividend policy in Indonesia. This study aims at examining the impact of corporate governance on dividend policy among Indonesian companies. There are two theories of the effect of corporate governance on dividend policy: substitution and outcome theory. Substitution theory argue that corporate governance have negative effect on dividend policy, while outcome theory argue that corporate governance have positive effect on dividend policy. Therefore, this study investigates the effect of corporate governance on dividend policy in Indonesia. Design/methodology/approach – The sample of this research comprises 248 firms from Indonesian Stock Exchange during 2004-2006. This research using Transparency and Disclosure Index (TDI) to measure corporate governance in Indonesia Findings – We find that TDI are low among Indonesian firms, with a score of 32 per cent out of the maximum point. This score indicates that Indonesian corporate governance is still low. The results show that there is a negative relation between corporate governance and dividend policy in Indonesia. Thus, the Indonesian companies pay more dividends when corporate governance practice is low. This result confirms applicable of substitution theory in Indonesia. Research limitations/implications – This research focuses on manufacturing industry in Indonesia. Therefore, the conclusions of this research apply on the manufacturing companies in Indonesia Practical implications – This research shows that companies with poor corporate governance pay dividend higher than companies with better corporate governance. Thus, investor can use this information to make investment decision. Originality/value – This research provides evidence on the negative effect of corporate governance on dividend policy in Indonesia (substitution theory).

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Marketing Islamic banking products: Malaysian perspective

PurposeThe rapid growth of Islamic banking in Malaysia warrants banking institutions being more proactive and innovative in marketing their products. The purpose of this paper is to re‐evaluate the progress and achievements of Islamic banking in Malaysia, particularly in the area of sales and marketing of Islamic banking services.Design/methodology/approachThis paper adopts a comprehensive literature review from various published sources. All related references were discovered through electronic databases, journals and books in the area of the relevant literature in Islamic finance, banking and services marketing.FindingsThe driving force for the growth of Islamic banking and financing products is the corporate clients, and not the Muslim individuals. In fact, the non‐Muslim individuals also use Islamic banking if they find that the service is good and meets their expectations. This paper shows evidence that the marketing activities of Islamic banking products is relatively ineffective compared to the conventional banking products in Malaysia. This paper also discusses the reasons for the ineffectiveness of marketing Islamic banking products at the micro and macro‐level. Depending on religion alone is not the best strategy to attract customers.Practical implicationsThe products offered by the Islamic banking system have to compete with those of the conventional banking system. Hence, a continuous review of marketing strategies for Islamic banking products is crucial in every Islamic financial institution.Originality/valueThis paper fulfils a need to study whether the common methods in marketing conventional banking products would be effective in the context of marketing Islamic banking products.

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Management control in accounting outsourcing services

PurposeThe purpose of this paper is to provide evidence of accounting outsourcing practices in Malaysia and the management control strategies undertaken by these practising firms to mitigate inherent risks.Design /methodology/approachThis study employs survey methodology using structured questionnaires and case studies using interviews. A total of 51 companies responded to the questionnaires and two companies participated in the interview.FindingsThe survey data revealed that the primary reason for engaging in accounting outsourcing was to gain quality accounting service from the experts. With regard to management control strategies, it was shown that respondents place high emphasis of behavior, output and social controls. Further investigation using case studies involving a vendor and client companies reveal that the control mechanisms involved were stated in the outsourcing contract, namely the use of Key Performance Indicators (KPIs) and penalties. Informal controls were also used in both cases to assist in solving conflicts and dissatisfaction among vendors and clients.Research limitations/implicationsThe identification the control strategies in the accounting outsourcing process is useful for companies to manage the inherent risks in outsourcing relationships. The knowledge on the control practices by firms involved in accounting outsourcing provides additional assurance to potentials interested in seeking accounting services in this country.Originality/valueThis paper is driven by the lack of empirical evidence of accounting outsourcing practices in Malaysia and paucity of research into the role of management control in an outsourcing relationship. Despite the growth of the outsourcing industry in Malaysia, little has been done to understand the contribution of a professional service sector such as the accounting services to this industry.

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