Manufacturing Companies In Malaysia Research Articles

Impediments to CSR assurance in an emerging economy

Purpose– This study explores the factors that impede the growth of the voluntary adoption of independent corporate social responsibilities assurance (CSRA) practices among manufacturing companies in Malaysia. Despite the argument that independent CSRA appraisals would improve the credibility of information disclosed, the majority of CSR reports in Malaysia are still not independently assured. The aim of this study is to understand the factors that impede CSRA practices among public-listed manufacturing companies in Malaysia. The theory of reasoned action was used to underpin arguments on the reluctance of managers to undertake CSRA.Design/methodology/approach– Online questionnaire surveys were employed to obtain respondents' perceptions on the factors that hinder CSRA practices. The target respondents comprised of CSR managers, corporate communications executives and customer relations personnel.Findings– This study provides evidence that the behavioural reluctance of managers to undertake CSRA was due to their attitudes and subjective norms towards independence assurance. The subjective norms due to the risk towards corporate reputation and the exposure to public scrutiny were the main factors that impede CSRA practices among manufacturing companies in Malaysia. The managers' attitude towards cost, data management systems and the uncertainty of the merits of CSRA were also compelling factors that hinder independent CSRA. These factors seemed to override incentives to provide credible information to stakeholders.Research limitations/implications– The findings of the study are limited to the perceptions of CSR managers, corporate communications executives and customer relations personnel responsible for CSR activities of the manufacturing industries in Malaysia. The results of the study suggest that further initiatives or pressure from stakeholders or regulatory authorities may be needed to convince the companies of the benefits of undertaking third-party assurance practices as such actions would provide a platform for the companies to enhance the credibility of their CSR reporting.Practical implications– The findings gleaned from this study would be of interest to the relevant corporate bodies and regulatory authorities with a view to formulating strategies to improve CSRA practices among organisations in Malaysia.Originality/value– The findings from the study offer initial insights into the impediments to CSRA practices in an emerging economy. It adds substantially to the existing literature that focuses mainly on CSRA practices in developed countries.

Supplier Assessment and Selection Using Fuzzy Analytic Hierarchy Process in a Steel Manufacturing Company

Every organization needs suppliers and no organization can exist without suppliers. Therefore, the organizations approach to suppliers and the selection of the appropriate supplier, its acquisition processes a nd policies, and its relationships with suppliers, is of vital importance, both to organizations and suppliers alike. No organization can be successful without the support of its supplier base, operationally and strategically, short or long-term.To selectthe best supplier, it is essential to make an analytical decision based upon tangible and intangible criteria. Chose and management of a supplier has to be congruent with organizational strategy. Therefore, the vision and strategy of the manufacturer are t he key drivers for how the supply function will be managed and how supply decisions are made and exectuted. The proposed model in this study was applied in a steel manufacturing company in Malaysia with the goal of reducing time in choosing the correct supplier for the company.This study aims to provide a systematic model stimulating correct supplier selection using the Fuzzy Analytic Hierarchy Process (FAHP) method along with a series of sensitivity analyses which were conducted using the Expert Choice (EC) program to evaluate the impact of changes in the priority of criteria for the

The relationship of human resource function's roles on high-involvement work practices and quality initiatives in Malaysian manufacturing companies

The study's purpose was to assess the effect of different human resource function's roles on quality initiatives and high–involvement work practices in the Malaysian manufacturing companies. This study was carried out in line with achieving total quality management and consequently business excellence. The conceptual framework has been adapted from prior research to assess the impact of different HR function's roles on Malaysian manufacturing companies. A total of 81 HR and quality managers completed the online survey questionnaire for measuring the effect of HR function's role on high–involvement work practices' features including team work, skill development, communication, performance evaluation, reward and recognition, and empowerment and quality initiatives. t–test and MANOVA were performed to test the hypotheses. The research proved the positive influence of driving and steering roles of HR and revealed that steering role of HR function has the most positive effect on high–involvement work practices and quality initiatives among others.

2409 An initiative to implement lean manufacturing usng value stream mapping in textile manufacturing company

This paper presents collaboration between a textile manufacturing company in Malaysia and Universiti Teknikal Malaysia Melaka. In this Company-University Collaboration (CUC), an engineering student was assigned with a task to implement value stream mapping (VSM) to support the implementation of Lean Manufacturing (LM) tool in the company. The task is targeted to be completed in six to nine months. In this paper, the development of current and future state map of the company is described. Identification of waste based on current state map is shown and improvement via future state map is elaborated. As a conclusion, the collaboration is proven to be feasible in supporting VSM implementation in the textile manufacturing company.

The interrelationship between ISO 9000 and total quality management: an empirical investigation with a focus on soft and hard TQM dimensions

Little is known about the interrelatedness between the critical factors of ISO 9000 (CFI) and total quality management (TQM) two dimensions, namely, soft (ST) and hard (HT), and little is known about whether they can coexist together in manufacturing companies’ or not. To fill this gap, this paper proposes a theoretical framework, which stipulates that ISO 9000 is an antecedent to TQM. The framework was tested using cross sectional mail survey of 250 ISO 9000 certified Malaysian manufacturing companies. Correlation and multiple regression analysis were utilised from SPSS to test the propositions. The key findings indicated the existence of a significant relationship in both propositions, hence, supported the theoretical framework and both ISO 9000 and TQM could be interrelated together in Malaysian manufacturing industries.

New Product Development in an Emerging Economy: Analysing the Role of Supplier Involvement Practices by Using Bayesian Markov Chain Monte Carlo Technique

The research question is whether the positive relationship found between supplier involvement practices and new product development performances in developed economies also holds in emerging economies. The role of supplier involvement practices in new product development performance is yet to be substantially investigated in the emerging economies (other than China). This premise was examined by distributing a survey instrument (Jayaram’s (2008) published survey instrument that has been utilised in developed economies) to Malaysian manufacturing companies. To gauge the relationship between the supplier involvement practices and new product development (NPD) project performance of 146 companies, structural equation modelling was adopted. Our findings prove that supplier involvement practices have a significant positive impact on NPD project performance in an emerging economy with respect to quality objectives, design objectives, cost objectives, and “time-to-market” objectives. Further analysis using the Bayesian Markov Chain Monte Carlo algorithm, yielding a more credible and feasible differentiation, confirmed these results (even in the case of an emerging economy) and indicated that these practices have a 28% impact on variance of NPD project performance. This considerable effect implies that supplier involvement is a must have, although further research is needed to identify the contingencies for its practices.

A new model for achieving sustainable competitive advantage through operations strategies in manufacturing companies

Theorists and practitioners alike emphasise the importance of competitive advantage in garnering maximum profit and performance. Still, there is a presence of continuous confusion among managers in measuring a company’s competitive advantage with regards to its temporality and sustainability. In order to look into this issue, the authors introduced product lifecycle as a time-dimension measure and analysed its effects on optimum financial performance. In addition, this research study attempted to identify the appropriate operations strategies that could bring about sustainable competitive advantage. Operations strategies can be divided into four subcategories: low-cost leadership, quality differentiation, service differentiation and innovation differentiation. The primary data collected via questionnaires for this study came from the chief executive officers and chief operating officers of Malaysian manufacturing companies. Results were tabulated through the application of a multiple regression analysis. ...

The Importance of Supply Chain Management on Financial Optimization

Many manufacturing companies are facing uncertainties and stiff competition both locally and globally, intensified by increasing needs for sophisticated and high value products from demanding customers. These companies are forced to improve the quality of their supply chain management decisions, products and reduce their manufacturing costs. With today’s volatile and very challenging global market, many manufacturing companies have started to realize the importance of the proper managing of their supply chains. Supply chain management (SCM) involves practices such as strategic supplier partnership, customer focus, lean production, postpone concept and technology & innovation. This study investigates the importance of SCM on financial optimization. The study measures production or SCM managers’ perceptions regarding SCM and level of performances in their companies. The paper also specifically investigates whether supply chain performance acts as a mediating variable in the relationship between SCM and financial optimization. These associations were analyzed through statistical methods such as Pearson’s correlation and a regression-based mediated analysis. The findings suggest that SCM has significant correlations with supply chain performance and financial optimization. In addition, the result of the regression-based mediated analysis demonstrates that supply chain performance mediates the linkage between SCM and financial optimization. The findings of the study provide a striking demonstration of the importance of SCM in enhancing the performances of Malaysian manufacturing companies. The result indicates that manufac-turing companies should emphasize greater management support for SCM implementation and a greater degree of attention for production integration and information flow integration in the manufacturing system in order to maximize profit and tzerimize cost.

Relationship between Motivations and Citizenship Performance among Generation X and Generation Y

Abstract This empirical paper has examined the motivational factors subtracted from Herzberg’s Two-Factors Theory towards Citizenship Performance for employees categorized into Generation X and Generation Y. A sample of 124 respondents from two market leading electric and electronic manufacturing companies in Malaysia was invited into this research. Seven Motivation and Hygiene Factors that adduced in this research are Achievement, Recognition, Work Itself, Promotion, Company Policy and Administration, Pay and Benefit, and Work Condition; while Citizenship Performance is measured by 15 items scale of Organization Citizenship Behaviour that combine all causations as one unit of variable. Findings of this study have presented the directions of motivational factors towards Citizenship Performance for Generation X and Generation Y. Key Words – Generation X, Generation Y, Intrinsic Factors, Extrinsic Factors, Citizenship Performance Introduction In today’s organizations’ competitive conditions where Innovations and Research and Development are the strongest jetton for global rivalry, measurements for employees’ values towards organizations that focus only on their task performance are becoming less and less irrelevant for organization successes. Even though employees score flying colours on their

Knowledge Sharing between Multinational Corporation’s Headquarters and Subsidiaries: the Impact of Manager’s Role, Compensation System and Cultural Differences

Knowledge sharing is a systematic process for creating, acquiring, synthesizing, learning, sharing and using knowledge to achieve organizational goals. It is also a source of competitive advantage especially for multinational companies. The objective of this paper is to discuss the impact of subsidiary manager’s role in knowledge sharing, manager’s compensation system, and the level of cultural differences between home and host country on the level of knowledge sharing between the headquarters and subsidiaries of multinational companies. A study has been conducted at a subsidiary of a large manufacturing company in Malaysia. Data were collected via self-administered survey questionnaire. The respondents consist of 100 executives and managers of the company, and all the questionnaires distributed were filled and returned back for data analysis. Findings indicate that all three factors significantly influence the level of knowledge sharing with the manager’s compensation system has the strongest impact. MNC therefore should clearly define the manager’s role in knowledge sharing and provide attractive rewards and remunerations to encourage knowledge sharing. At the same time, cultural differences should not be considered as a barrier to knowledge sharing as this study indicates that it can be a driver for effective knowledge sharing between headquarters and subsidiaries.

Enhancing group method of data handling type modeling for nonlinear systems in inventory control

AbstractAppropriate topology and coefficients have a great impact on their models' performances. This paper proposes an enhanced group method of data handling (GMDH) algorithm using a modified Levenberg–Marquardt (LM) method. In this work, evolutionary algorithm and LM techniques are deployed simultaneously for optimal design of both connectivity configuration and associated coefficients of each candidate solution in the evolving population combination. However, use of singular value decomposition technique with LM is considered as a novel method to overcome the problem of initial guess, which is presented for the first time in this research. In order to illustrate the benefits of the proposed algorithm, it has been applied in a Malaysian manufacturing company for forecasting in inventory control. Moreover, a comparison between the basic GMDH algorithm and the enhanced GMDH algorithm is made, and the results show that the accuracy of the proposed method is considerably high with reasonable reduction in processing time. Therefore, the enhanced GMDH method can be used to replace old techniques in an inventory control system to generate a structure when it is applied to a Kanban setting in the just in time system.

Factors affecting ERP system effectiveness in post-implementation stage within Malaysian manufacturing companies

Enterprise resource planning ERP system has become one of the main pre-requisites for many companies enabling them to compete in the local and global market, a price of entry to gain a competitive advantage in the global economy, and a backbone for e-business as well as for the whole supply chain. Many companies are still reluctant to implement ERP system and therefore they will not be able to join the supply chain of several global and local companies where ERP system has become a pre-requisite and a price of entry for the global economy. This study has investigated the impact of ERP system on supply chain performance with respect to top management support, employee involvement, and cultural fit in the context of Malaysian manufacturing companies that are using ERP system and this is to fill up the gap in post-implementation stage. The study found that employee involvement, top management support, and cultural fit partially affects positively and significantly the relationship between ERP system and supply chain performance.

The linkage between strategic human resource management, innovation and firm performance

Innovation is regarded as the driving force of rapid changes in the modern world and one of the key success factors in the competitive market. Firms have to innovate, to survive in the market. The disruptive wave of innovation every year makes so many businesses disappear from the market. On the other hand, successful implementation of innovation programs can guarantee profitability and an acceptable overall performance for any firm. In addition, strategic planning for human resources plays a key role in innovation practices and helps firms achieve their long-term objectives. This paper intends to assess a linkage between strategic human resource management, innovation, and overall performance within a firm. In order to examine such a linkage, an online survey was applied and data were collected from 54 managers of product development projects in Malaysian manufacturing companies. Analysis of the collected data using correlation analysis techniques proved that there is a strong correlation between the three mentioned concepts. Keywords -Innovation, SHRM, Firm Performance

The relationship between ERP system and supply chain management performance in Malaysian manufacturing companies

PurposeThis research aims to improve supply chain management performance through the successful usage of ERP system. This can be through investigating the relationship between enterprise resource planning (ERP) system and supply chain management (SCM) performance in the context of Malaysian manufacturing companies that use ERP system.Design/methodology/approachThe questionnaire survey was posted to the Malaysian manufacturing companies that are using ERP system in order to investigate the relationship between ERP system and SCM performance. The respondents of this study were the MIS or IT executives. A total of 80 usable responses were received and used in the analysis.FindingsThe findings of this research indicated that there is a positive and significant relationship between ERP system i.e. (integration, material management, production planning, and controlling), and SCM performance. The workflow management, however, does not have a significant relationship with SCM performance. The findings of this study imply that the successful implementation and the effective usage of ERP system can contribute toward enhancing supply chain management performance in many ways such as, integration of internal business processes, enhancement of information flow among different departments inside the company, improvement of the company's relationships and collaboration with outsourcing suppliers, customers, and supply chain partners.Research limitations/implicationsThis research focuses only on post‐implementation of ERP system life cycle, where ERP system passes through three implementation stages of system life cycle and that includes pre‐implantation stage, implementation stage, and finally post‐implementation stage. Two or three stages of ERP system life cycle could be investigated simultaneously.Practical implicationsThere should be many success records in ERP system and this is to prove to companies that ERP systems can contribute toward improving their overall business performance. Therefore, this research encourages companies to adopt ERP systems and then contribute to technology diffusion. The finding of this study supports this justification and records a new success of ERP systems in Malaysian manufacturing companies.Originality/valueThe results of this study will enable companies to achieve optimum usage of ERP system after the implementation stage and help to avoid system failure and achieve better SCM performance. The study contributes toward technology diffusion between companies through reducing the likelihood of ERP systems failure, and therefore introduces ERP systems to other manufacturing companies in Malaysia.

Reliability Centered Maintenance in Schedule Improvement of Automotive Assembly Industry

Problem statement: Today, in many automotive manufacturing companies, maintenance management is an important factor to maintain the plant operation and production equipments. Approach: In this study, we present an implementation of Reliability Centered Maintenance (RCM) practice in one of the automotive manufacturing company in Malaysia. The RCM practice was used to assist the company in focusing their maintenance activities based on the criticalities of the equipments by applying the Failure Modes and Effects Analysis (FMEA). The implementation of RCM was carried out in 4 stages; preparation, system analysis, decision making and feedback. The aim of RCM was to reduce the number of maintenance checklist and to improve significantly the integrity of maintenance practice. Results: As a result, the new RCM framework was generated where Class A equipment was at the top of the monthly maintenance frequency priority, followed by Class B and Class C equipment which had lesser critical value. Conclusion: The new RCM framework is used to conduct visible guideline and propose a new maintenance schedule. The guideline is useful for future maintenance strategy improvement. After the implementation, it can be ascertained that our proposed RCM is useful in reducing maintenance personnel burden and this leads to improvement of productivity.

Development of Kanban System at Local Manufacturing Company in Malaysia–Case Study

Kanban system is inventory stock control system that trigger signal for production of product based on actual customer requirement. This study presents the development of kanban system at local manufacturing company in Malaysia. The study discusses flow of implementation activities in manufacturing site prior to kanban system. The paper concludes that implementation of kanban system would reduce lead time, minimize inventory on floor and optimize storage area. Therefore, the objective of this study is to highlight the kanban system implementation that improve manufacturing system as well as achieved Just In Time practice.

The retention of trained production workers in a small manufacturing company in Malaysia

This study aims to investigate the challenges faced by a small company in retaining its skilled low-wage labour in a highly competitive labour market in Malaysia. The data is based on the information obtained through interviews with the director and the employees of the company which were undertaken to find out the reasons trained low wage labours choose to resign from this company. The theory of constraint and Goldratt (1992) thinking process are utilised in analysing the case and finally in providing recommendation on how to address this problem. It was found that other companies paid higher salary and benefits to skilled production workers. In addition, the workers are dissatisfied with the working conditions in the company due to reasons such as high control policy of the company and miscommunication among staff. After being trained, the workers leave the company and went to work in other companies that provide higher payment and better, more flexible working conditions.

Managing migrant workers' job satisfaction: evidence from a manufacturing company in Malaysia

The purpose of this study is to examine and gain a better understanding of the impact of human resource practices on migrant workers' job satisfaction. Ninety migrant workers (52 Bangladeshi and 38 Nepalese) participated in this study. Data were obtained using questionnaires and analysed using Statistical Package for Social Science (SPSS). Statistical analysis using regression analysis found that, among the independent variables, employee compensation was found to have an impact on migrant workers' job satisfaction. t–test results also revealed that Nepalese migrant workers who possess only primary education have higher job satisfaction.

Understanding environmental management accounting (EMA) adoption: a new institutional sociology perspective

PurposeThe purpose of this research paper is to report the results of a study that explains the relationship between institutional pressure and environmental management accounting (EMA) adoption. Specifically, it looks at the pressure of government and other parties in society concerning EMA adoption among manufacturing companies in Malaysia.Design/methodology/approachDrawing from the new institutional sociology theory, the paper seeks to identify the extent to which institutional pressure influences EMA adoption level. A total of 74 accountants from manufacturing companies in Malaysia participated in the survey. Institutional pressure (coercive isomorphism, normative pressure and mimetic processes) was tested against the level of EMA adoption via multiple regression analysis. Next, semi‐structured interviews were employed with four survey participants to gain further insights into the survey results.FindingsThe findings of this study reveal some influence of institutional pressure on EMA adoption. Of these, normative pressure in terms of training and accounting body membership was found to be the most forceful.Practical implicationsRecognising the important role of accountants in managing environmental issues in organisations, this study highlights the influence of education and training as determinants of EMA adoption.Originality/valueThis paper offers a preliminary understanding from the new institutional sociology perspective concerning the type of pressure that influences manufacturing companies in Malaysia to adopt EMA.

The effects of changes in competition, technology and strategy on organizational performance in small and medium manufacturing companies

PurposeThis study aims to examine how the relationship among competitive environment, manufacturing technology and organisational strategy affect organisational performance.Design/methodology/approachUsing a contingency approach, this study investigates the changes in competitive environment, manufacturing technology and organisational strategy in small and medium Malaysian manufacturing companies. The data is collected using a mailed questionnaire survey of manufacturing companies in the Klang Valley.FindingsResults of the study show that the majority of responding companies have recognised changes in their competitive business environment and advanced manufacturing technology, which have impacted on organisational strategic behaviour. Structural equation modelling shows positive relationships among competitive environment, manufacturing technology and organisational strategy, with a positive impact on performance.Research limitations/implicationsThese outcomes provide useful insights into our knowledge of how organisational change has taken place in small and medium companies.Practical implicationsThe study provides useful guidelines to small and medium sized companies facing changes to their business environment.Originality/valueThe study makes an incremental contribution to the existing organisational change literature for SMEs in developing countries.