Manufacturing Companies In Malaysia Research Articles

The Role and Implications of Big Data on Strategic Management Accounting Practices: A Case Study in a Malaysian Manufacturing Company

The Role and Implications of Big Data on Strategic Management Accounting Practices: A Case Study in a Malaysian Manufacturing Company

Interrelationship between Three Dimensions of Sustainable Performance Measurement among Malaysian Manufacturing Companies

Corporate financial responsibility is the sole driving force of business in the business sector, as the primary goals of a firm are to maximize profit and grow shareholder value. However, in the previous decade, larger corporate obligations have been recognized, including environmental, local community, working conditions, and ethical standards. With the rise of "sustainability" reasons, unprecedented climate change is being measured into corporate strategy in the direction of sustainable thinking. The triple bottom line (TBL) is a sustainability assessment that combines environmental and social factors in addition to profitability and the rate of return on investment. The purpose of this research is to look into the interrelationships between the three dimensions of sustainable performance measurement (SPM) in Malaysian manufacturing companies. A questionnaire is issued to 600 manufacturing companies in the Federation of Malaysian Manufacturers (FMM) as part of a quantitative data collection approach. All the proposed hypotheses are supported, thus showing the interrelationship between three dimensions of SPM existed. Consequently, Malaysian companies are lagging behind in terms of SPM’s adoption compared to developed countries. Because of that, more government efforts to facilitate the adoption of SPM practice among companies are needed. The sole focus on the manufacturing industry, accuracy of data collection and time constraint are the limitations of this study. Therefore, it is suggested that further research should explore more the interrelationship between the three dimensions of SPM.

Antecedents of kaizen culture and its effect on operational performance: perspective of manufacturing companies in Malaysia

PurposeThe purpose of this research is to examine the effect of kaizen culture on innovation and operational performance of electrical and electronic manufacturing companies in Malaysia. A research framework, with underpinning theories of dynamic capabilities and socio-technical systems, was conceptualized to investigate the interplay of these relationships.Design/methodology/approachData were collected from 123 manufacturing companies using an online survey and analyzed with IBM SPSS Statistics version 24.0 and the partial least squares structural equation modeling (PLS-SEM) (SmartPLS) version 3.2.8.FindingsUltimately, the findings proved that kaizen culture is crucial for organizations to optimize their operational performance and can be nurtured through the implementation of process innovation and organizational innovation.Originality/valueUnlike past studies, this research examines the concepts of innovation, kaizen culture and operational performance in a single study; thus, provides further opportunities for new discoveries through such relationships. Also, the novelty is identifying that kaizen culture can be nurtured via innovation.

Measurement Validation of Factors Influence SME Business Performance in Malaysia

Organizations are increasingly under pressure to shift their production methods from traditional to sustainable, reinforcing the requirement to monitor their sustainability performance. The slow performance growth of Malaysian manufacturing companies remains a concern. The goal of this research is to highlighted the measurement used in the Malaysian SME context. Data were collected using survey method. A survey method was employed to collect a total of 1,071 responses in SME firms using proportional stratified sample technique. Using statistical packages for the social sciences (SPSS) version 27, this research focused on data validity and reliability. Findings of factor analysis confirmed 3 factors for the ICT adoption variable, were formed while 1 factor for the innovation variable, 4 factors for the competitiveness variable and 1 factor for the business performance. Only 2 items were dropped due to the weak loadings. Meanwhile the reliability analysis also indicates all the constructs and dimensions achieve good reliability value at more than 0.8. This research demonstrates the measurement validity and reliability of the research variables were inconsistent due to culture setting. This research highlighted the measurement used in the Malaysian SME context. The findings of this research withdraw a conclusion that the validity and reliability of item and construct of this research is proficient and consistent with the previous studies.

Green Human Resource Management and Environmental Innovativeness

Drawing upon the resource-based view and the situated learning theory, this study examined the effect of green human resource management (HRM) practices on the firm environmental innovativeness. The moderating role of organizational innovative culture on the relationship between green HRM and firm environmental innovativeness was also assessed. A survey of 212 furniture manufacturing companies in Malaysia was analyzed using structural equation modeling. Results from the data analysis suggest that green HRM practices are positively associated with the firm environmental innovativeness. The positive effect of green training and green compensation on firm environmental innovativeness was found to be increased by moderating the role of organizational innovative culture. The present study clarifies key green HRM practices that can assist the environmental innovativeness in Malaysian furniture manufacturing firms and advances related research by proposing and examining an overarching model to enlighten such synergies and the moderating role of organizational innovative culture. The findings further extend the scope of green HRM research to promote innovation in the manufacturing firms. The theoretical and practical implications of green HRM are presented to enhance the environmental innovativeness.

Knowledge quality and non‐financial performance—A Malaysian experience

AbstractThis paper proposes a framework that investigates the impact of knowledge quality on innovation in Malaysian manufacturing firms. It explores the effect of innovation on non‐financial performance (learning and growth; internal processes) of Malaysian manufacturing companies. Three hundred eighty‐eight questionnaires were collected from middle and top engineers, managers, and technicians and were used to conduct the analyses. Structural equation modeling (SEM) is used for testing the developed hypotheses. The result of analyses confirmed the impact of determinants (absorptive capacity, functional diversity, and knowledge network) on knowledge quality. This study also confirmed that knowledge quality has a significant impact on innovation, while innovation has a significant effect on non‐financial performance. This paper also revealed that knowledge quality determinants have a significant influence on the non‐financial performance of manufacturing firms in Malaysia. The present study examined the relationship between these factors (related to internal and external knowledge), knowledge quality, innovation, and non‐financial performance (internal process and learning and growth) in the manufacturing companies of Malaysia.

The Miles and Snow Business Strategy Typology and the Adoption of Management Accounting Practices

Changes in the business environment requires that a company adopts a more adaptive strategy. A business strategy is not just about planning, but it needs to be supported with meaningful information. Management accounting complements a business strategy by providing crucial information, not just limited to cost efficiency, but customer satisfaction and quality management. However, the adoption of management accounting practices (MAPs) is believed to be influenced by strategy. Using the Miles and Snow (1978) business strategy typology model, this study examined the influence of business strategy on the adoption of MAPs, focusing on how the different types of business strategies used in organizations may influence the adoption of MAPs. Data was collected from manufacturing companies in Malaysia. The result showed that most Malaysian manufacturing companies utilized three major classifications of strategies, i.e., defender, prospector, analyzer, and only a few were classified as reactors. The result showed that the adoption level of both traditional and advanced MAPs is also high. Findings from this study indicated an influence of the defender and analyzer types towards adopting traditional MAPs, whereas the prospector type had influenced the adoption of advanced MAPs. Keywords: management accounting practices, business strategy, defender, prospector, analyzer, reactor

The Moderating Effect of Organization Tenure on Job Rotation and Career Development

Career development serves as an important personnel factor with many consequences for business and individual self. The literature outlines many factors that can influence career development prospects, such as job rotation. To understand how such a relationship can be augmented further, the current study presents and discusses the moderating effect of organization tenure on the relationship between job rotation and career development. A survey instrument that included career development measures, job rotation and organization tenure was used to collect information from production workers in Japanese manufacturing companies in Malaysia. The study was conducted among 209 production workers and was analyzed by using hierarchical regression analyses. The result found that job rotation effects on career development are significantly stronger for employees with longer organization tenure than employees with lower organization tenure. The paper provides important research implications and suggestions for business owners based on the study findings. The authors also provide scope for future to guide researchers interested in studying career development, job rotation and organization tenure.

Comparative Study of Environmental Disclosure in Indonesia and Malaysia: Testing Company Characteristics

There are two purposes of this study. The first is to compare the environmental disclosure practices in the annual report of Indonesian and Malaysian manufacturing companies. The second is to test the impact of firm characteristics on environmental disclosure, both in Indonesia and Malaysia. Firm characteristics are represented by firm size, profitability, liquidity, firm age, and audit firm size. Under the Slovin’s Formula and purposive sampling method, 82 Indonesian and 167 Malaysian manufacturing companies are selected. Dichotomy approaches are used to measure the dependent variable of environmental disclosure. There are 9 main aspects which include 30 items of environmental according to Sustainable Reporting Guidelines version 3.1. Different proxies consist of the natural logarithm of total assets, return on equity ratio, current ratio, the natural logarithm of firm age, and audit firm size (BIG 4 and Non-Big 4) is used as a measurement of the independent variable of firm characteristics. Comparison and relation in this study tested by analysis of descriptive statistics, t-test, and multiple regression. A score of environmental disclosure both in Indonesia and Malaysia is only 18,33%. The result indicates that the environmental awareness of businessmen in manufacturing companies still low. The result of the t-test shows that there is a difference in environmental disclosure between Indonesia and Malaysia. The multiple regression analysis shows that firm size, audit firm size, and firm age are significant predictors of environmental disclosure both in Indonesia and Malaysia. Profitability and liquidity show no influence on environmental disclosure in both countries.

Supply chain information integration and its impact on the operational performance of manufacturing firms in Malaysia

PurposeThe purpose of this paper is to investigate the impact of Supply Chain Information Integration (SCII) on the Operational Performance of manufacturing firms in Malaysia considering the role of information leakage. Design/methodology/approachTo test the model developed, we conducted an online questionnaire survey with Malaysian manufacturing companies drawn from the Federation of Malaysian Manufacturers directory of 2018. Out of the 400 questionnaires sent out to the manufacturing companies, 144 useable responses were received giving a response rate of 36 %. The data were analyzed using SmartPLS, a second-generation statistical tool. FindingsThe findings of this study showed that information quality, information security, and information technology (IT) had a positive effect on SCII with an explanatory power of 47.2 % while SCII, in turn, had a positive effect on operational performance explaining 17% of the variance. Intentional information leakage (IIL) moderated the relationship between SCII and operational performance, whereas accidental information leakage did not moderate the same relationship. Practical implicationsThis study provides insights into difficulties faced when implementing SCII, particularly by medium and large manufacturing companies in Malaysia. It helps identify appropriate strategies that can guide the management in its effort to improve performance by SCII. Originality/valueThis research is arguably the first study that simultaneously investigates the effect of information quality, IT, and information security on SCII and the moderating effect of information leakage on the relationships between SCII and operational performance. The results of this study indicate that information security has the largest impact on SCII, followed by IT, and information quality. Furthermore, IIL as a negative aspect of information integration may deprive the strength of the relationship between SCII and operational performance.

Quality Management Practices of Food Manufacturers: A Comparative Study between Small, Medium and Large Companies in Malaysia

Quality management (QM) has been intensively studied from the perspective of quality management practices (QMP) and market performance in the food manufacturing industry. However, in Asian countries, studies as regards to the sizes of food manufacturing companies are being neglected. Hence, this quantitative study investigates several aspects and focuses on the extent and level of QMP implementation among small, medium, and large food manufacturing companies in Malaysia. A survey questionnaire has been used to collect the data. In general, the results show that the components and types of QMP have the highest impact on large companies and medium companies than the smallest companies. It was found that QMP significantly related to the operational performance and market performance of the food manufacturing companies in Malaysia. Moreover, the verified QMP was particularly important to improve the effectiveness of resource control of small-sized and medium-sized enterprises. The outcome of this study serves as a framework to bring an understanding of QMP and promote continuous QM improvement means to the food manufacturing industries in Malaysia and other countries of the region.

Change Management System (CMS) Evaluation: A Case Study in a Multinational Manufacturing Company in Malaysia

Changes can be defined as modification of the form, fit or function of an object such as a process or a product. Changes can be positive or negative but in general, making changes show that a company is progressing and improving. A company can choose to take initiative to change or just wait for external forces depending on its necessity or requirement. In some cases, change is not favourable unless it is really necessary as it involves time and money as well as other resources. Due to this, a good change management is necessary so that changes can be monitored effectively. A dynamic and timely change management is important in order to ensure that the company does not fall behind in being competitive in the industry. This study focuses on the evaluation of the change management system in a manufacturing company. Focus is given to the measurement of the change process which has been agreed to be due to cycle time in which an ideal cycle time for the change process is simulated. Based on Monte Carlo simulation, it is figured that the overall cycle time can be improved by 35%. At the same time, other effectiveness measure is also identified to improve the management system of the company.

Predicting Behavioural Intention of Manufacturing Engineers in Malaysia to Use E-Learning in the Workplace

This study aims to understand factors that affect the behavioural intention of manufacturing engineers in Malaysia to use e-learning in the workplace. Two hundred usable online questionnaires were collected from respondents who were engineers in Malaysian manufacturing companies. The data were analyzed using SPSS and Smart PLS version 3.2.6. Results supported all direct relationships except for the influence of prior experience in perceived ease of use. Interestingly, perceived usefulness and perceived ease of use fully mediated between computer self-efficacy and behavioural intention to adopt. The study provides theoretical implication to the technology acceptance model by confirming the mediating role of perceived ease of use and perceived usefulness in the context of a manufacturing setting in an emerging market. In practical terms, the study provides insights to guide organizations in designing e-learning systems that are well-received by employees at the workplace.

Multilevel Analysis on Employee Wellbeing: The Roles of Authentic Leadership, Rewards, and Meaningful Work

Employee wellbeing (EW) is becoming a genuine concern, and it has seen a resurgence in interest with the challenges in light of industrial revolution and globalisation. There is no doubt that wellbeing of the employees is one of the secret recipes that generates high return value for all levels of chains; the individual and the organisational productivity and growth as well as nation’s prosperity. However, majority of leadership researchers have failed to capture the multi-dimensional concept of EW. Moreover, the studies of the impact of leadership styles on EW are limited and narrow-focused. Thus, this study aims to examine the role of authentic leadership (AL) style on EW. This study uses meso-mediational relationship through financial and non-financial rewards and meaningful work and how they affect EW. Data were collected from 343 employees in 30 manufacturing companies in Malaysia. The finding reveals that the positivity of authentic leaders indirectly influences EW through non-financial rewards and meaningful work. It is also suggested that financial rewards and non-financial rewards should be measured separately in consideration of current socioeconomic conditions and employees’ motivational needs.

The difference and similarity of the organizational commitment–rewards relationship among ethnic groups within Japanese manufacturing companies in Malaysia

PurposeGrowing number of research to identify antecedents of organizational commitment (OC) has been done not only in the West but also in the East including Malaysia because OC is found to be associated with various work-related outcomes. However, to date, the influence of ethnic identity on the OC–rewards relationship was not explored although the leader has to recognize the different cultural underpinnings of each community in a plural society like Malaysia. Therefore, this study investigates the differences in the relationship between rewards and OC between three ethnic groups, Malays, Chinese and Indians, in Malaysia.Design/methodology/approachHierarchical regression analysis was used to analyze survey data gathered from 12,076 employees who work for 32 Japanese manufacturing companies located in Malaysia.FindingsThe results of the analysis show that satisfaction with the personal evaluation was more associated with OC and role clarity was less associated with OC in Chinese than in other ethnic groups. However, differences were not found in the relationships of other rewards with OC at the 1% significance level. These results indicate that the ethnic difference in the OC–rewards relationship is rather small.Research limitations/implicationsThe major limitation concerns generalizability. The validity of the current research should be tested by the data of various foreign affiliates located in Malaysia and other multiethnic societies.Practical implicationsThe results of this study could support the revision of human resource management practices, enabling workers to contribute to their companies on a long-term basis in multi-ethnic countries.Originality/valueAlthough previous research has elucidated OC–rewards relation in particular countries, it has not met the potential requirements of the managers who face the difference in OC–rewards relation among the employees of different ethnic groups. In this sense, this research was the first attempt to tackle this theme contributing to the literature.

Validity and Reliability Analysis of the Baldrige Excellence Framework Scale in the Electrical & Electronics Manufacturing Companies in Malaysia

This paper aims to examine the validity and reliability of the Baldrige Excellence Framework scale in the Electrical and Electronics (E&E) manufacturing companies in Malaysia. This study is using a survey questionnaire for collecting data. The survey instrument was designed according to the Baldrige Excellence Framework criteria. Stratified random sampling from four sub-sectors of E&E manufacturing companies has employed and follow by simple random sampling with estimated 325 sample size. The analysis of this scale validation was carried out by using PLS-SEM 3.2 to assess the validity and reliability of the survey questionnaire. The outcomes in this research further affirmed that the instrument used was met the acceptable range of validity and reliability. The sample framework and sample size are the E&E manufacturing industry which indicates that the result cannot be generalized to another industry due to potential differences. This study shall guide future business excellence research in the manufacturing setting by using the validated measures in the findings. It also offers the manufacturing managers measures to identify the level of their organization’s business excellence in the E&E manufacturing companies. Hence, improvement programs can be designed to further improve their business results. This research probably the early study to examine the Baldrige Excellence Framework 2019-2020 deployment in manufacturing companies of Malaysia E&E. The study findings concluded that all instruments are valid and reliable, also suited to the context of Malaysia.

UNIVERSITY INDUSTRY COLLABORATION:

In developed countries, universities are reputed as hub of innovation, contrarily to developing countries, universities are intermediary platforms for the diffusion of technology from large manufacturing companies to the value chain. The Malaysian Government through its blueprints emphasize that public universities have an important role in supporting innovation and technology commercialization. Despite myriad initiatives created and executed to help universities in improving their ability to innovate, the outcomes have yet to meet national expectations. This suggests a lack of awareness on the influence of universities especially in University Industry Collaboration (UIC) towards sustainable development in the innovation ecosystem. On that grounds, it is important to address this research gap, for it will provide insights to manufacturing companies and help universities themselves in being instrumental towards the intensification of UIC. The intent of this paper is to determine the role of public universities in UIC within the Malaysian manufacturing landscape. This paper is based on findings of a quantitative approach through survey questionnaire. A total of 20 public universities and 40 large manufacturing companies were surveyed and analysed using Descriptive statistics and Pearson’s correlation coefficient. For further evidence, registered intellectual property was analysed using One sample T-test. The percentage of expenditure of R&D per export value by large manufacturing companies in Malaysia was used as test value to determine the current role of public universities within the Malaysian manufacturing landscape. The findings reveal, public universities in Malaysia remain as intermediary platforms for large manufacturing companies to share their technology with the value chain. As intermediaries, public universities fortify knowledge and product development for large manufacturing companies. The findings further reveal, registered intellectual property by large manufacturing companies is a significant indicator of UIC outcomes through R&D processes. The findings of this paper add to the dimensions of empirical research on the significance of public universities in intensifying UIC. The importance of public universities in creating relevant and sustainable technology is paramount. Only when universities are solicited as hub of innovation by the manufacturing landscape, Malaysia will move up the value chain in manufacturing. 

Environmental Management Accounting in the Malaysian Manufacturing Sector

Research aim: This research investigates the relationship between EMA (monetary and physical) and environmental performance Design/ Methodology/ Approach: This is a questionnaire-based survey study whereby the questionnaires are sent to 69 large manufacturing companies in Malaysia that are certified with ISO 14001 Environmental Management System.  Research finding: The study found no relationship between EMA (monetary and physical) and environmental performance. Theoretical contribution/ Originality: The study highlights that the EMA literature is not yet comprehensive and as such, may result in the lack of a relationship with EMA. Practitioner/ Policy implication: The results suggest that a formal environmental management accounting by the government may be able to assist to the lack of relationship between EMA and environmental performance. Limitation/ Implication: The study sampled only large Malaysian manufacturing companies with ISO 14001 Environmental Management System. Additionally, a larger sample size may provide better results. Type of article: Research paper Keywords: Environmental Performance, Monetary Environmental Management Accounting, Physical Environmental Management Accounting, ISO 14001 Environmental Management System JEL Classification: C30

An Investigation on Extrinsic and Intrinsic Rewards on Employee Retention among Gen Y: A Study in Malaysian Manufacturing Companies

The aim of this study is to investigate the relationship between extrinsic and intrinsic reward on retention among Gen Y employees in Malaysian manufacturing companies. The data was collected from 113 respondents worked in manufacturing companies located in Seri Kembangan, Selangor using questionnaires. Multiple regression analysis was conducted to test the hypotheses. The results showed both extrinsic and intrinsic reward are the factors influencing retaining Gen Y in manufacturing companies. The discussion on the analysis, limitation of the study, recommendation for future research and conclusion were discussed at the end of this study. In a nutshell, it was proven extrinsic reward and intrinsic reward has contributed to the retention of Gen Y employees.

An Investigation on Extrinsic and Intrinsic Rewards on Employee Retention among Gen Y: A Study in Malaysian Manufacturing Companies

The aim of this study is to investigate the relationship between extrinsic and intrinsic reward on retention among Gen Y employees in Malaysian manufacturing companies. The data was collected from 113 respondents worked in manufacturing companies located in Seri Kembangan, Selangor using questionnaires. Multiple regression analysis was conducted to test the hypotheses. The results showed both extrinsic and intrinsic reward are the factors influencing retaining Gen Y in manufacturing companies. The discussion on the analysis, limitation of the study, recommendation for future research and conclusion were discussed at the end of this study. In a nutshell, it was proven extrinsic reward and intrinsic reward has contributed to the retention of Gen Y employees.