e-Proceedings
International Virtual Conference on Business,
Finance, Management and Economics
14 - 16 July 2021
Faculty of Business and Management
Universiti Teknologi MARA
Kedah Branch
e-ISBN:9789672948117
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e-Proceedings of International Virtual Conference on Business, Finance, Management &
Economics (BizFAME 2021)
14 – 16 July 2021
Faculty of Business and Management,
Universiti Teknologi MARA Kedah Branch
The editorial board would like to express their heartfelt appreciation for the contributions made
by the authors, co-authors and all who were involved in the publication of this e-proceedings.
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Faculty of Business and Management,
Universiti Teknologi MARA Kedah Branch
Published date:
10 July 2021
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INTERNATIONAL VIRTUAL CONFERENCE BIZFAME 2021
EDITORIAL BOARD
Patron
Y. Bhg. Prof. Dr. Hj. Mohamad Abdullah Bin Hj. Hemdi
Advisor 1
Dr. Kamarudin Othman
Advisor II
Dr. Yanti Aspha Ameira Mustapha
Chairman I
Dr. Norhidayah Ali
Chairman II
Dr. Zuraidah Mohamed Isa
Deputy Chairman
Dr. Azyyati Anuar
Chairman of Abstract (eProceeding)
Nabila Ahmad
Hanani Hussin
Chairman of Publication (Abstract & Extended Abstract)
Dr. Nur Zainie Abd Hamid
Editors
Nurul Amira binti Azmi
Etty Harniza Harun
Norafiza Mohd Hardi
iii
RECTOR’S NOTE
Prof. Dr. Haji Mohamad Abdullah bin Haji Hemdi
Rector
UiTM Kedah Branch
Assalammu’alaikum Warahmatullahi Wabarakatuh.. Salam UiTM Dihatiku..
I wish to extend my heartiest congratulation to the Faculty of Business & Management of UiTM
Kedah Branch for the successful organization of The International Virtual Conference on
Business, Finance, Management & Economic (BizFAME2021). This virtual conference has
marked yet another milestone for UiTM Kedah Branch as an intellectual hub at which
stimulating creative and prolific academic presentations and discussions take place.
It is indeed very encouraging to see UiTM Kedah Branch forging ties with international
universities and academic bodies to further strengthen itself in the aspects of research and
innovation. With the theme “Embracing the New Normal: Are We Ready?”, it is indeed relevant
in the context as academicians, researchers, administrators and decision makers, as
BizFAME2021 unfolds and embraces the new norms affecting business, finance,
management and economics.
I believe this conference will provide an opportunity for academicians especially Business and
Management academic staff to produce and presents more academic materials as well as
enhancing their skills in academic and creative writing. Hopefully, our valued participants and
presenters will not be only gaining new ideas from others but they will take it as an opportunity
to share their experience, ideas and expertise as to make this conference an enriching as well
as fulfilling experience for everyone.
Lastly, to organizing committees, participants and presenters, without your participation and
commitment, this conference would not have been possible. I would like to take this
opportunity to express my immense gratitude and appreciation to you. Again, well done to the
Faculty of Business and Management of UiTM Kedah Branch and those who were involved
directly and indirectly to organizing BizFAME2021. I wish all the best and hope that this virtual
conference brings positive impacts to academicians and public.
iv
Assalamualaikum WBT and Warmest Greetings,
It is our great pleasure to welcome you to the International Virtual Conference on Business,
Finance, Management & Economics (BizFAME) 2021 starting from 14th to 16th July 2021. First
of all, we would like to thank our Rector, Prof Dr. Haji Mohamad Abdullah bin Hj Hemdi for his
continuous support and patronage in the conference. This conference has so far attracted
almost 170 participants (including those attended conference, webinar and colloquium). The
chosen theme is Embracing the New Normal: Are We Ready? Along with the current
pandemic, it is hoped that discussion from various fields such as business, finance
management, economics and other related areas will embrace the new norm that has
affected our daily lives, businesses and the economy.
This virtual conference is organized by our Faculty of Business Management, Universiti
Teknologi MARA (UiTM) Kedah Branch, Malaysia. Firstly, we are very grateful to organize this
event in collaboration with Suan Sunandha Rajabhat University (SSRU) and Hatyai University,
Thailand. We would like to thank all respected and esteemed speakers, namely Professor Dr.
Keah-Choon Tan, Dr. Syamsul Hadi, and Dato Haji Nor Azman bin Haji Mufti; and our Rector,
Prof Dr. Haji Mohamad Abdullah bin Hj Hemdi. Additionally, our deep gratitude goes to Dr
Kamarudin Othman, our Deputy Rector of Academic Affair, and Dr Yanti Aspha Ameira
Mustapha, our Head of Faculty of Business and Management for their continuous support. We
would also like to express our gratitude to the committee members and reviewers whom have
shown their utter dedication in order to accomplish a successful event.
This event has offered numerous publication opportunities in e-proceedings, as well as in
Scopus journals, Voice of Academia (VOA) and Journal of Creative Practices in Language
Learning and Teaching (CPLT). Besides that, in conjunction with BizFAME 2021, we have
offered two additional events, namely “Virtual Workshop on Writing & Publishing Article Using
Bibliometric Analysis”. This virtual workshop will be conducted by the well-known guru of
bibliometric analysis, Associate Prof. Dr Aidi Ahmi of UUM. The participants will be thoroughly
guided to write and publish an article on bibliometric analysis in High Impact Journals. We
have also offered “Postgraduate Colloquium” to provide a platform for postgraduates to
improve their proposal and prepare for their proposal defence (DRP) or viva voce. The
participants would benefit from the discussions and feedbacks obtained from experienced
researchers and thesis examiners.
Lastly, we would like to wish all participants of BizFAME 2021 to have a beneficial and
enjoyable experience throughout our virtual conference. Thank you.
Wassalam and Best Regards,
Norhidayah Ali
Chairman 1
International Virtual Conference on Business, Finance, Management & Economics (BizFAME)
2021
v
TABLE OF CONTENTS
Editorial Board……..……………………………………………………………………………………………....iii
Rector’s Preface………………………………………………………………………………………………......iv
Chairman’s Preface ………………………………………………………………………………………………v
1. The Contributing Factor of House Price Index in Malaysia 1
Mohd Husnin Mat Yusof, Syahrul Hezrin Mahmud, Mohd Ariff Nafizi Ibrahim @ Mat Nor
2. Elevating Shopping Center Attractiveness: A Case Study 2–5
Muhammad Elham Izazi, Mohd Zamzuri Ishak, Norhidayah Ali
3. Legislation of Public Smoking Ban: Student Perceptions 6-9
Mohamad Idham Hj Md Razak, Nalini Arumugam, Geraldine De Mello, Mohammad Nor Afandi Ibrahim
4. Mekanisme Pemantauan Pengagihan Zakat Secara Wakalah oleh Muzzaki 10 - 13
Nur Zainie Abd Hamid, Shamsinar Ibrahim, Hasyimah Razali
5. Impact of COVID-19 Pandemic on The Survival of Asnaf Entrepreneurs in Selangor 14
Khairul Azhar Meerangani, Muhammad Hilmi Mat Johar, Mohd Zaid Mustafar, Mohammad
Fahmi Abdul Hamid
6. Volatility Patterns of The DJSUKTRX Based on The 2008 Financial Crisis: Analysis 15
from Garch- Family Models
Syazwani Abd Rahim, Nursilah Ahmad, NurHafizah Othman
7. Development of Research Framework of Banks’ Profitability 16 - 19
Zawani Mohd Radzi, Izan Izzati Md Said, Fatin Shazwani Muzafar, Zuraidah Mohamed Isa
8. Presenteeism of Employees in the Servicing Unit: The Organizational Aspects 20 - 24
Marlina Muhamad, Nur Najihah Noor Samiri, Kardina Kamaruddin
9. Development of Research Framework of Determinants of Firms Liquidity 25 - 28
Nur Ain Hasna Ghazali, Dziyaul Azhan Abdul Rahman, Zuraidah Mohamed Isa, Dahlia Ibrahim
10. Tax Avoidance and Fraud Management in Malaysian Public Limited Companies 29 - 32
Roshidah Safeei, Nor Asni Syahriza Abu Hassan
11. Lean Enterprises in Small Medium Enterprises 33 - 37
Azyyati Anuar, Daing Maruak Sadek
12. A Proposed Framework: Social Media Strategies, Government Response and Small 38 - 42
Medium Enterprises (SMEs) Resilience
Syahrul Nadwani Abdul Rahman, Norhidayah Ali, Azyyati Anuar
13. Behavioral Intention on Food Delivery Apps: An Application and Extension of The UTAUT 2 43
Model and The Roles of Perceive Trust
Mohd Najmie Osman, Norhidayah Ali, Azyyati Anuar
14. Cashless Society: A Study on Behavioral Intention on Cashless Transaction 44
Mohd Najmie Osman, Norhidayah Ali, Azyyati Anuar, Yong Azrina Ali Akbar
15. Factors Influencing the Effectiveness of Digital Marketing Among Online 45
Entrepreneurs During Pandemic COVID-19
Wan Nur Sabrina Wan Azahar, Siti Nursabrina Hamidun, Nur Izzati Syazwani Noor Hisham, Nina
Syazwana Maliki, Nur Alia Alissa Abdul Halim, Law Kuan Kheng
16. Factors Affecting Intention to Use E-Wallet Among University Students in Malaysia 46 - 50
Ahmad Zaim Adil Zaimi, Ahmad Hidayat Mohd Ramli, Hanis Zulaikha Ismail @ Chik Aida Maisarah
Fadzli, Fatin Nur Alia Rizan, Law Kuan Kheng
17. Impak Pandemik COVID-19 Terhadap Sosioekonomi Golongan Asnaf: Kerangka 51 - 54
Konseptual
Suhaida Abu Bakar, Norhidayah Ali, Zuraidah Mohamed Isa, Dahlia Ibrahim, Azyyati Anuar
18. Multidimensional Women Empowerment: A Review 55 - 58
Nurul Hayani Binti Abd Rahman 59 - 62
63 - 66
1.
19. Bibliometric Overview and Retrospective Analysis of Asset Management Research
Between 1965 And 2020
Ahmad Tajudin, I.K. Norziaton, Aida Hazlin Ismail, Diana Dominic
20. Embedding Digital Social Enterprises Among Undergraduates
Baderisang Bin Mohamed, Mohd. Sukor Bin Md. Yusoff
21. Gaya Kepimpinan dan Kepuasan Kerja di kalangan Pensyarah di Institusi Pengajian 67 - 70
Tinggi Awam
Nur Zainie Abd Hamid, Shamsinar Ibrahim, Hasyimah Razali
22. Influencing Factors Towards Purchasing Intention of Omni-Channel Fashion 71
Retailing Sector in Malaysia
Fariza Ahmad Mahyadin@Mahidin, Muhamad Amar Maskury, Muhammad Zuhairi Feizal
23. Reverse Knowledge Transfer: A Thematic Review and Future Research 72
Nor Balqis Badrolhisham, Azyyati Anuar, Mohd Rizaimy Shaharudin
24. The Influence of Stress and Working Environment on Workers Job Performance at 73 - 77
ABC Company
Siti Sayyidatul Nisaa’ Binti Mohd Zukiman, *Fatihah Norazami Binti Abdullah, Nor Edi Azhar Binti
Mohamed
25. Effects of COVID-19 on GPLEX Realty Using SWOT Analysis 78 - 81
Nurul Farahin Nazri, Azyyati Anuar, Daing Maruak Sadek
26. Oil Prices Fluctuations and Stock Market Performance: Does Uncertainty Matter? 82
Noor Zahirah Mohd Sidek
27. Luxury Brands: An Exploratory Analysis Using Latent Dirichlet Allocation 83 - 87
Yanti Mustapha, Mohd Faiz Hilmi
28. Firms Marketing Strategies During COVID-19 Pandemic 88 - 91
Wan Shahrul Aziah Wan Mahamad, Yong Azrina Ali Akbar, Ramli Saad
29. The Determinant of 5S in Financial Documents System at Government Office 92 - 96
Nur Tasha Sharizan Binti Mat Zaini, Shakirah Binti Mohd Saad
30. Online Distance Learning Stress (ODLs): Stressors and Coping Strategies 97 - 103
Yong Azrina Ali Akbar, Nik Ramli Nik Abdul Rashid, Wan Shahrul Aziah Wan Mahamad, Mohd Najmie
Osman
31. The Mediating Role of Competitive Intelligence on Organizational Culture and Hotel 104
Performance: A Proposed Theoretical Framework
Dian Aszyanti Atirah Mohd. Asri, Ainul Mohsein Abdul Mohsin, Norzuwana Sumarjan
32. Perceived Quality Influence on Bumiputra Consumers’ Purchase Intention of Global 105 - 107
Brands
Farah Merican Isahak Merican, Nizar Nazrin
33. Relationship Between Lean Manufacturing Practices and Sustainability: Mediating 108
Role of Manufacturing Performance
Mohd Zulfabli Hasan, Mohd Norhasni Mohd Asaad, Rosman Iteng
34. Service Quality Gap and Patient Satisfaction: A Case of Public Hospital in Kedah 109
Rafidah Nasrul, Ainun Mardiyah Osman, Jamaludin Akbar 110
35. Social Media Use (SMU) and Gratification Among Scholars: A Review
Zuraidah Arif, Abd. Latif Abdul Rahman
36. Sustainable Suburban Socio-Economic Service for Happier Households: 111
Developing The S4H2 Model for Batu Kawa
Boo Ho Voon, Muhammad Abang Azlan, Grace, I. Phang, VloreenNity Mathew, Kelvin, T.H. Goh
37. Mediating Effect of Customer Knowledge Management and Knowledge Sharing on 112
Organizational Innovation
Khalid Abdul Wahid, Radwan Kharabsheh, Rachel Barker, Tri Susantari, Sirilak Ketchaya
38. The Influence of Organisational Culture towards Employee Performance at the 113
Utilities Sector
Nur Shafini Mohd Said, Raghadah Yusof, Siti Rapidah Omar Ali, Khalid Amin Mat, Nasiha Abdullah
39. Determinants of Recycling Intention Among Public University Students in 114
Terengganu
Hani Sakina Mohamad Yusof, Sofiah Ngah, Suzila Mat Salleh, Siti Fatimah Mardiah Hamza, Noor
Hafiza Mohammed
40. Stressors and Psychological Well-Being Among Students in a Public University in 115
Malaysia 116
Siti Rapidah Omar Ali, Nur Shafini Mohd Sai, Khalid Amin Mat
41. Mapping Publication Trends in Appropriate Technology Topic
Saida Farhanah Sarkam, Khairul Akmaliah Adham
42. I Only Buy Because I Want To: Influence of Individual Personality and Socialization 117
Process in SNS on Consumer Purchase Intention
Azrin Ali, Rahizah Sulaiman, Athirah Mohd Tan, Hazrita Ab. Rahim
43. The Effects of Servqual Dimensions Toward Students’ Satisfaction: A Study Among 118
University Students in UiTM Sabah
Nur Zihan Abd Rashid, Tuan Nur Athirah Nabilah Tuan Ismail, Bibianah Thomas
44. The Importance of a Global Mindset To The Malaysian Food Industry SMEs 119
Nurul Ulya Abdul Rahman, Norziani Dahalan @ Omar
45. Human Capital: The Current Situation, Challenges and a Way Forward Using the 120
Human Capital Index (HCI) in Malaysia
Noorziah Mohd Salleh, Jabil Mapjabil, Imbarine Bujang, Norah Tuah
46. A Conceptual Framework for The Impact of Green Practices on The Sustainability in 121 - 126
Supply Chain for Competitive Advantage Among Electrical and Electronic
Manufacturing Firm’s
Nurasifa Norddin, Mohd Rizaimy Shaharudin, Jamaludin Akbar, Siti Fairuza Hassam
47. The Effect of Work Pressure on Turnover Intention Among Nurses in Kota Kinabalu, 127
Sabah: Coworker Support as a Moderator 128
Al Gaffrie Mil Kusin, Dewi Tajuddin, Sylvia Nabila Azwa Ambad, Hamsinar Hassan
48. Determinants of Psychological Factors in Influencing Customers Purchase Intention
Towards Green Residential Building in Malaysia
Nurul Labanihuda Abdull Rahman, Nor Aida Iwani Hafidzin, Wan Mohd Yaseer Mohd Abdoh,, Farah
Lina Azizan
49. Can the Performance of Malaysian CEOs Be Predicted by Their Faces? 129
Tamer Elsheikh, Hafiza Aishah Hashim, Nor Raihan Mohamad, Ferdinand Gul
50. A Two-Stage Pilot Study in COVID-19 Vaccination Readiness 130
Fahirah Syaliza Mokhtar, Zamri Chik, Ahmad Munir Mohd Salleh, Muhammad Abi Sofian Abdul Halim,
Rusnifaezah Musa, Noor Muthmainnah Hamdul Hadi
51. Zakat Online Campaigns Using Creative Animation on Social Media Networks: 131
Youths’ Acceptance
Norbayah Mohd Suki, Norazah Mohd Suki, Muhammad Faiz Hussin Shokri
52. Fostering Students’ Creativity in Animation Projects: An Application of Design 132 - 135
Thinking Process
Norbayah Mohd Suki, Norazah Mohd Suki, Humera Imtiaz
53. The Conceptualization of Decent Work for Social Sustainability 136 - 139
Nor Tasnim Syahera Rasak, Mohd Rizaimy Shaharudin, Nur Zainie Abd Hamid
54. Lesson from Pandemic: How COVID-19 has Changed The Workforce? Gig Works or 140
Not?
Purnomo M Antara, Kamarudin Othman, Khairul Azfar Adzahar, Siti Fairuza Hassam, Mohd Fazil
Jamaludin
55. Factors Affecting Profitability in Bursa Malaysia’s Health Care Firms in 2019 141 - 144
Chaleeda Som Sak, Khairul Anuar Azmi, Muhamad Na’im Othman, Nur Safi Syakirah Amran, Nurul
Liyana Adnan, Siti Nor Farah Ika Abdullah
56. Kesediaan dan Kesanggupan Pembayaran Zakat Perniagaan oleh Usahawan 145-147
Perniagaan Kecil dan Sederhana di Daerah Kuala Muda/Yan, Kedah
Nabila Ahmad, Hafizah Hammad Ahmad Khan, Azira Rahim, Rosmaiza Abd Ghani
57. Bibliometric Review of Open Access Funded Research Among Malaysian 148
Universities in Scopus
Noor Masliana Razlan, Muslim Ismail @ Ahmad, Mohamad Rahimi Mohamad Rosman
BizFAME2021
International Virtual Conference on Business, Finance, Management and Economics
THE CONTRIBUTING FACTOR OF HOUSE PRICE INDEX IN
MALAYSIA
*Mohd Husnin Mat Yusof1, Syahrul Hezrin Mahmud2 & Mohd Ariff Nafizi Ibrahim @ Mat
Nor3
1Faculty of Business Management, Universiti Teknologi MARA (UiTM), Terengganu
Branch, Kuala Terengganu Campus, Malaysia
2Faculty of Computer Science and Mathematics, Universiti Teknologi MARA (UiTM),
Terengganu Branch, Kuala Terengganu Campus, Malaysia
3Faculty of Language Studies Universiti Teknologi MARA (UiTM), Terengganu Branch,
Kuala Terengganu Campus, Malaysia
*Corresponding E-mail: [email protected]
ABSTRACT
Housing price in Malaysia has constantly increased from year to year. As a result, some
people cannot afford to own a house due to the increasing price and for those who have
several other high financial commitments, possessing their own house is not an option. Since
then, the government of Malaysia has introduced several procedures in its budget 2020 and
those procedures were intended to improve property market activities such as the revision of
the base year for Real Property Gain Tax (RPGT) which started on 1st January 2020. Besides
that, the reduction of price threshold for foreign purchase from RM1 million to RM600,000
in urban areas for unsold completed high-rise properties was introduced too. It is believed
that macroeconomics has its impacts on house ownership. Hence, the objective of this study
is to investigate whether there is a relation between these four macroeconomics factors;
mainly gross domestic product, inflation, interest rate, and population; and the house price.
These variables were examined to determine the one that has the most significant influence
toward the price. Annual time series data spanning from 1989 to 2018 is used to achieve the
objective of this research. By employing the multiple regression model, the study reveals that
there is positive relationship between gross domestic product, interest rate and population and
the house and it is highly significant while inflation shows a positively insignificant.
Keywords: Gross Domestic Product (GDP); Housing price; Inflation; Interest rate;
Population
1
BizFAME2021
International Virtual Conference on Business, Finance, Management and Economics
ELEVATING SHOPPING CENTER ATTRACTIVENESS: A CASE
STUDY
*Muhammad Elham Izazi1, Mohd Zamzuri Ishak2 & Norhidayah Ali1
1Universiti Teknologi MARA (UiTM), Kedah Branch, Malaysia
2Majlis Perbandaran Sungai Petani Kedah (MPSPK), Kedah, Malaysia
*Corresponding E-mail: [email protected]
ABSTRACT
This research aims to investigate the factors influencing shopping center attractiveness to
engage customers’ visitation to shopping centers. The case study was conducted at a
shopping center in Kedah, Malaysia. In this descriptive study, the questionnaire design
employed in the study was quantitative. The questionnaire was created using Google Forms
and a URL link was given to the visitors who have previously visited the shopping center.
The findings concluded that the promotion of the mall had the strongest positive influence (r
= 0.623) on the attraction of the mall which in turn affect the number of visitors to the
shopping center. The second highest positive factor was the layout of the mall with a
correlation of 0.537, followed by atmosphere (r = 0.515) and shopping mall attributes which
reported the lowest relationship among all four independent variables at r = 0.190. The result
of the study can assist the shopping center to boost its attractiveness and increase the number
of visitations, thus elevating the return for both the mall management and tenants.
Keywords: Shopping centers; Attractiveness; Attributes; Atmosphere; Layout; Promotion
1.0 INTRODUCTION
In recent years, especially during the 2000s, there is a substantial growth of shopping malls
around the world which includes Malaysia, specifically in the city centers. Shopping centers
have shifted from the traditional concept that only have shop lots to new and fresher concepts
of shopping centers which includes theatres, gymnasiums, recreational centers, restaurants,
indoor and outdoor event space and many more. New and fresher looks have affected various
traditional shopping centers as they are experiencing reduced customers’ visitation due to the
heightened competition and offerings from these newly rising malls. A case study was
conducted in a shopping center since the number of customers’ visitations dropped
significantly. Thus, this study aimed to look into factors such as mall attributes, atmosphere,
layout and promotion affecting shopping center attractiveness and examine their relationships
with shopping centers’ attractiveness.
2.0 LITERATURE REVIEW
People who visit shopping centers are not only there to purchase but also to enjoy the
attractiveness of the mall which includes its environment (Ortegón-Cortázar & Royo-Vela,
2017). Nowadays, malls are competing with each other to gain more visitors and it is noted
that mall tenants and brand image contribute to the increasing number of shopping center
visitations (Kiriri, 2019). It is pertinent to look into the attractiveness factors because they
help the management to comprehend customer behavior in affecting their visitation,
improving customer loyalty as well as elevating the tenant and management’s returns. The
shopping mall attractiveness has contributed significantly to the number of visits and sales
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International Virtual Conference on Business, Finance, Management and Economics
volumes. It has been indicated by Anselmsson (2006) that the effect of attractiveness could
be seen in the number of shopping center visits, retention, and expenditures per visit.
Mall attributes, atmosphere, layout and promotion have been claimed to influence shopping
mall attractiveness. Researchers have shown that store attributes can improve store image and
affect consumer purchasing behavior and this include retailers such as shopping malls
(Ortegón-Cortázar & Royo-Vela, 2017). Mall attributes may include indicators such as
physical, reliability, problem solving and personal attention (Diallo et al., 2018; Kim & Kim,
2008). Furthermore, the geography of these shopping centers also affects the final chosen
shopping destination. The degree of mall attractiveness and consumer preferences depend on
the shopping mall's location as well as parking efficiency. Parking facilities are essential to
determine a shopping center visitation to the mall. It is noted that if there is insufficient space
or if the spaces are too far from the shop, customers hesitate to visit the store (Ouma Ojuok,
2016).
Next, the atmosphere does influence visitors in attending a shopping mall. According to
Teller and Reutterer (2008), the atmosphere will further make a shopping mall much more
appealing than the product value. Sapie et al. (2014) studied both atmosphere and brand
image of shopping malls. They identified three visitor-shopping motifs which include
environmental, shopping malls' comfort, and reputation. Khong and Ong (2014) also
concluded that there is a relationship between the perception of shoppers and patronage
loyalty and the relationship is influenced by brand trust and brand effect.
Furthermore, store layout is also considered as a powerful and influential feature (Woodruffe-
Burton & Wakenshaw, 2011) in attracting mall visitors. Store layout comprises of space,
layout, and feature dimension which indicate store design or image. It can influence the
consumer's feeling of control of spending in stores. The shop layout also impacts consumer
visits. If the construction structure is strategic, the shopping center will gain more customers
(Woodruffe-Burton & Wakenshaw, 2011). Typically, people prefer a simple and convenient
mall where they can easily find and obtain items they want to purchase or survey. Since
people come to the shopping center to purchase or to hang out, the shopping mall's
servicescape or the physical environment need to be carefully investigated. A detailed,
appealing, and well-functioning servicescape would attract consumers to purchase and
appreciate the shopping mall experience.
Additionally, Kalaivani and Shankar (2017) found that promotion practices encourage
consumers to purchase goods in the marketplace, increasing the rate of use and sales value.
There is an association between product marketing and customer behavior. Research clearly
shows that promotional practices influence consumer behavior (Kalaivani & Shankar, 2017).
Sales promotion methods that support fast selling have been used in shopping malls to draw
shoppers to see the product, recognize its use, and encourage purchasing. Upadhyaya (2017)
also postulated that there is a positive relationship between promotion and consumer
shopping behavior in the shopping mall.
The discussed literature highlighted that shopping mall attractiveness may be affected by
factors such as mall attributes, atmosphere, layout and promotion. Figure 1.0 illustrates the
research framework indicating that these four factors impact shopping center attractiveness.
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International Virtual Conference on Business, Finance, Management and Economics
Figure 1
Research Framework
Attributes Shopping Centre
Atmosphere & Image Attractiveness
Layout
Promotion
3.0 RESEARCH METHOD AND FINDINGS
Convenience sampling method was employed to gain an understanding of the factors
influencing shopping centers which included mall attributes atmosphere, layout and
promotion. Correlation analysis was conducted using SPSS to investigate these relationships
among all four factors on shopping center attractiveness. The correlation analysis indicated
that the promotion of the mall has the highest relationship with the attraction of the mall with
a correlation of 0.623, followed by the layout of the mall at r = 0.537, atmosphere at r = 0.515
and lastly shopping mall attributes which has the lowest relationship among four independent
variables at r = 0.190. In conclusion, the finding indicated that all four independent variables
positively influenced shopping center attractiveness.
4.0 DISCUSSION AND CONCLUSION
The analysis demonstrated that all four factors which comprise of promotion, atmosphere,
layout and attributes positively influenced shopping center attractiveness. Mall promotion has
the strongest influence on shopping center attractiveness and followed by layout, then
atmosphere and lastly, attributes. It is hoped that the finding can help the management as well
as mall tenants to improve shopping center attractiveness. This can increase the number of
visitations which in turn reflect positively towards their returns. As explained in the earlier
section, the research problem of the case study is the decreasing number of customer
visitations, thus the shopping center needs to transform and improve the outdated mall into an
exciting and inviting shopping mall by strategizing the factors on this study. The findings of
this study might assist other shopping center operators, especially those who are experiencing
the same problem to strategize on these four factors. Further studies are recommended to
include other independent variables, moderators and mediators in order provide some
interesting insights.
ACKNOWLEDGEMENT
The authors wish to thank Universiti Teknologi MARA Kedah Branch for the financial
support in publishing the extended abstract. The authors would also like to thank for the
support provided by the shopping center management and all respondents who participated in
the survey.
REFERENCES
Anselmsson, J. (2006). Sources of customer satisfaction with shopping malls: A comparative
study of different customer segments. International Review of Retail, Distribution and
Consumer Research, 16(1), 115–138.
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Diallo, M. F., Diop-Sall, F., Djelassi, S., & Godefroit-Winkel, D. (2018). How shopping mall
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Khong, K. W., & Ong, F. S. (2014). Shopper perception and loyalty: A stochastic approach to
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Kiriri, P. N. (2019). Determinants of shopping mall attractiveness: The case of shopping
malls in Nairobi, Kenya. European Journal of Economics and Business Studies, 5(1),
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Management and Business Economics, 26(2), 199–219.
Ouma Ojuok, P. (2016). Factors that influence tenants’ preference of shopping mall in
Kenya, a case of Thika Road Mall, Nairobi. (Master’s thesis, University of Nairobi).
Sapie, N. M., Hussain, M. Y., Ishak, S., Awang, A. H., & Lyndon, N. (2014). Motif dan daya
tarikan pusat membeli-belah dalam kalangan pengunjung metropolitan Kuala Lumpur,
Malaysia. Geografia: Malaysian Journal of Society & Space, 10(1), 70–77.
Teller, C., & Reutterer, T. (2008). The evolving concept of retail attractiveness: What makes
retail agglomerations attractive when customers shop at them? Journal of Retailing and
Consumer Services, 15(3), 127–143.
Upadhyaya, M. (2017). Variables affecting customer behaviour and its effect on commitment
towards shopping hubs of Gurgoan city. Journal of the Academy of Business and Retail
Management, 11(3), 93–102.
Woodruffe-Burton, H., & Wakenshaw, S. (2011). Revisiting experiential values of shopping:
Consumers’ self and identity. Marketing Intelligence and Planning, 29(1), 69–85.
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LEGISLATION OF PUBLIC SMOKING BAN: STUDENT
PERCEPTIONS
*Mohamad Idham Hj Md Razak1, Nalini Arumugam2, Geraldine De Mello1 & Mohammad
Nor Afandi Ibrahim1
1Universiti Teknologi MARA (UiTM), Melaka Branch, Malaysia
2Universiti Teknologi MARA (UiTM), Shah Alam Campus, Selangor, Malaysia
*Corresponding E-mail: [email protected]
ABSTRACT
Tobacco smoking continues to be a major cause of death and disability around the world and
is also a main provider towards our health inequalities. The legislation of banning smoking in
public can help in improving smokers’ health. Hence, this study aims to identify the students'
perceptions if the legislation of public smoking at higher learning institutions has changed
smokers’ attitude and habit specifically in Malaysia. This study adopted a quantitative
research approach to elicit data. An online survey using Google form application is used to
distribute the questionnaires. A total of 106 undergraduates participated in this study. Data
were analysed via SPSS software and descriptive analysis. The findings indicated that the
smoking ban has changed the undergraduate smokers' attitude. The majority of the
respondents preferred the legislation on the smoking ban to be implemented to all and were
against smoking at public places as this will educate all smokers especially students to reduce
or quit the smoking culture. The findings also revealed that majority of the undergraduates
are aware that smoking has a negative impact on the innocent second-hand smokers, as it will
deteriorate their health and may lead to fatal disease. Many respondents shared that they are
seriously thinking of quitting smoking, however, some are not successful as they perceive
smoking to be a form of relaxation and a way to reduce their stress. This study concludes
with recommendations for further studies to be carried out to encourage the students to give
up smoking totally.
Keywords: Ban; Health; Legislation; Public; Smoking
1.0 INTRODUCTION
The legislation of banning smoking in public can help in improving the health of smokers’.
The smoking ban at all restaurants and other eateries, including open- air hawker stalls, came
into effect in Malaysia on Jan 1 2019 (Buchanan, 2019). Norshidi (2019) explains that
smoking is banned at any “eating place,” which is defined as any premises whether inside or
outside a building, where food is prepared, served or sold. The law requiring smokers in
Malaysia to light up at least three meters away from open-air eateries has sparked a national
debate, with many businesses complaining of fewer customers after this law. The law was
intended to reduce the harm caused by second-hand smoke. Additionally, tobacco smoking
remains a major cause of death and disability around the world, as well as being a major
contributor to health inequalities. Therefore, with the implementation of the legislation of
banning smoking in public, it is hoped that smoking will cease to be the main contributor to
the many health hazards.
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1.1 Problem Statement
The World Health Organization (WHO) (2012) concluded that environmental (secondhand)
tobacco smoke causes lung cancer among non-smokers. Norshidi (2019) said the government
banned smoking in air-conditioned restaurants, schools, petrol stations, government premises
and on public transport. Yet more than 10 years on, that rule has been largely ignored. Now,
the new law gives authorities the power to fine smokers up to RM10,000 if they flout it.
However, some say the number of smokers in the United Kingdom has also decreased, with
less than 15 percent of people smoking in 2019, compared to 22 percent in 2006. Whether
this is due to the smoking ban is debatable. However, it is likely that the ban has contributed
to the decline in the number of smokers. As of 2012, 79% of Parties reported strengthening
their existing legislation or adopting new tobacco control legislation after ratifying the
Convention. Additionally, over half of the Parties to the WHO FCTC reported having
developed and implemented comprehensive tobacco control strategies, plans and programs as
required in Article 5.1 of the Convention. Consequently, not much has been done to study
this impact of legislation ban on public smoking in higher learning institutions. Hence, this
study aims to find out whether public smoking ban has brought any changes among students’
attitude in smoking in the campus.
1.2 Research Questions
a) Why we need to legislate public smoking ban?
b) How has the smoking ban changed smokers’ attitude?
2.0 LITERATURE REVIEW
2.1 Legislation on Smoking in Public
Smoking cigarette is a hard habit to break because tobacco contains the very addictive
chemical nicotine (Elana Pearl Ben–Joseph, 2019). Moreover, smoking can cause lung
disease by damaging your lungs airways and the small air sacs found on your lungs around
six million people die from long-term exposure to first- or second-hand smoke annually
(WHO, 2015). Meanwhile, vape or electronic cigarette is a first-generation that resembles
tobacco cigarette.
2.2 Impact of Public Smoking
Based on the online survey given by Malaysia’s New Straits Times newspaper, there are 80%
of more than 25,000 respondents who thought that the policy of requiring smokers in
Malaysia to light up at least three metres away from the open-air eateries should go even
further, supporting that hotels and launderettes should also be listed as smoke-free zones.
Abdul Rahman (2019) said that the policy is an effort to protect the masses from the second-
hand smoke in public areas. He also stated that the smokers seeked help to quit smoking by
going through some therapies and health-care consultations. However, the support for these
programmes are low as smokers who are attempting to quit are at high risk of relapsing. They
need continuous abstinence from cigarettes for at least 6 months and the smokers’ themselves
have to be given good support in the first week of the program itself (Clinical practice
guidelines). Tauras (2015) stated the use of cigarette excise taxes to generate additional
revenues to compensate for fiscal shortages associated with the recent downturn in the
economy.
3.0 RESEARCH METHOD
This study employed the quantitative method to collect data. This study had respondents from
University Teknologi Mara, Universiti Malaya, Universiti Kebangsaan Malaysia, Taylors
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University and Tunku Abdul Rahman University. A total of 106 undergraduates responded,
50 males and 56 females. All of them were above 18 years old. A set of questionnaire was
distributed via google link from 11 October 2020 until 3 November 2020. Data were
analysed using descriptive analysis.
4.0 RESULTS AND DISCUSSION
The legislation on the smoking ban must be implemented to public. Hence, we need to
support the legislation implemented by the government. As for smokers, smoking at eateries
3 meters away from that place does not disturb other customers. Furthermore, most of
respondents also support the new legislation on public smoking and believe that public
smoking ban is enough to reduce the number of smokers.
In short, the smoking ban has changed smokers’ attitude by limiting their wants to smoke and
improve their health. Based on the results, the majority of the respondents agreed that
smoking cigarettes could be harmful to their health as they can suffer from lung cancer,
stroke and other diseases. Additionally, the smoke from cigarettes also affect secondhand-
smokers such as children and pregnant women. The smoke from the ingredients of cigarettes
could be more dangerous and causes death, disease and disability.
5.0 CONCLUSION
From the data collected most of the respondents agreed with the implementation of the
legislation of the public smoking ban. They are aware that there are many negative impacts
due to smoking and this might be the right time to change the smoking culture. The
respondents are also alert with the fine by the authorities for not smoking in the designated
area which is 3 metres away from the eateries. Some of them also disagree with the rule.
They think it is okay to smoke in public if they are not disturbing others. They believe that
the designated smoking areas which is 3 meters can be accepted by the smokers. Most of the
respondents agreed that the smoking ban has changed smokers’ attitude. They are aware of
the effects of smoking to their health in the long run and the many negative effects from
smoking for both the smokers and second-hand smokers. Additionally, it was found that most
parents never talk about the dangers of smoking to their children as they feel that it is not
important. They responded only when their children brought it up. However, this area on
parental communication with their children about the topic of smoking needs more research
attention.
5.1 Recommendations
The first recommendation is to have more designated areas for smoking. This is to help the
smokers to smoke freely when they are in public without disturbing the others. In this way,
the number of second-hand smokers can be reduced. The government and non-government
organizations should undertake strong efforts to provide awareness to the smokers that the
attitude of smoking in public will give bad effects to the non-smoker. This is supported by the
fact that shows the non-smoker gains more side effects rather than the smokers themselves.
The last recommendation is the authority should do more patrolling around public area and
they also can increase the amount of fine and the punishment to the smokers who do not obey
the regulations.
REFERENCES
Abdul Rahman (2019). What ban? Many still ignoring smoking ban. The Star.
https://www.thestar.com.my › nation › 2019/01/01
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Buchanan, Kelly (2019-01-17). "Malaysia: Ban on Smoking in All Eateries Comes into Effect
| Global Legal Monitor". www.loc.gov.
Ben-Joseph, E. P. (2019). Secohdhand Smoke. Reviewed by Elana Pearl Ben-Joseph, MD.
https://www.wakehealth.edu/KH/clinical/lic415/en/parents/secondhand-smoke_html
Norshidi, S. (2019). New smoking law lights up Malaysia’s fight against tobacco, but still a
long road ahead. China Fintech Report. https://www.scmp.com/lifestyle/health-
wellness/article/3015373/new-smoking-law-lights-malaysias-fight-against-tobacco
Tauras (2019). The Impact of Tax and Price on the Demand for Tobacco
Products. https://cancercontrol.cancer.gov › default ›.
WHO, W. H. O. (2012). WHO _ Why is smoking an issue for non-smokers. World
Health Organization. WHO Report on the Global Tobacco Epidemic, 2011: Warning
About the Dangers of Tobacco. Geneva, Switzerland.
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MEKANISME PEMANTAUAN PENGAGIHAN ZAKAT SECARA
WAKALAH OLEH MUZZAKI
*Nur Zainie Abd Hamid1, Shamsinar Ibrahim1 & Hasyimah Razali1
1Fakulti Pengurusan dan Perniagaan, Universiti Teknologi MARA (UiTM), Cawangan
Kedah, Malaysia
*Corresponding E-mail: [email protected]
ABSTRAK
Lembaga Zakat Negeri Kedah (LZNK) telah membuka ruang kepada pembayar zakat untuk
terlibat secara langsung dalam aktiviti pengagihan zakat kepada golongan asnaf yang layak
melalui konsep pengagihan zakat secara wakalah. Memandangkan konsep agihan zakat ini
dilakukan oleh para pembayar zakat sendiri, maka, satu mekanisme untuk mengawal agihan
zakat tersebut adalah amat penting bagi mewujudkan keseragaman dalam sistem pengagihan
zakat. Namun, sehingga kini, masih tiada mekanisme pemantauan dan pengawalan agihan
zakat tersebut secara berkesan diwujudkan, malah, mekanisme seumpama itu tidak
dibincangkan dengan meluas oleh pengkaji sebelum ini. Mekasinme seperti ini adalah amat
penting untuk memastikan keberkesanan sistem pengagihan zakat kepada golongan asnaf
yang layak. Kajian ini akan mengfokuskan kepada mengenalpasti dan menganalisa
mekanisme yang terbaik untuk memantau dan mengawal pengagihan zakat secara wakalah
oleh para pembayar zakat kepada para penerima zakat. Kajian ini akan menggunakan dua
pendekatan untuk mengumpul data iaitu melalui kaedah kualitatif dan kuantitatif. Melalui
kaedah kualitatif, temuduga bersemuka akan dijalankan dengan pegawai-pegawai yang
terlibat di Unit Wakalah Lembaga Zakat Negeri Kedah (LZNK), manakala melalui kaedah
kuantitatif, data akan dikumpulkan daripada dokumen bertulis yang berkaitan. Dapatan kajian
ini diharap dapat menghasilkan satu mekanisme yang berkesan untuk memantau dan
mengawal pengagihan zakat secara wakalah bagi menekankan aspek ketelusan dan membina
kepercayaan terhadap para pembayar zakat dan penerima zakat untuk terus meletakkan
kepercayaan kepada Lembaga Zakat Negeri Kedah (LZNK) sebagai institusi utama
pengurusan zakat di Negeri Kedah.
Kata Kunci: Lembaga Zakat Negeri Kedah (LZNK); Mekanisme pemantauan; Pembayar
zakat; Wakalah
1.0 PENGENALAN
Masyarakat amat memberi perhatian terhadap keberkesanan pengagihan zakat kepada
golongan asnaf bagi menilai peranan yang dimainkan oleh insitutsi zakat. Sebagai salah
sebuah institusi zakat, LZNK telah melaksanakan mekanisme yang berkesan untuk
mengagihkan kembali 3/8 zakat perniagaan (zakat secara wakalah) kepada para muzzaki
(pembayar zakat) untuk diagihkan kepada para penerima zakat yang layak. Ini dapat dilihat
melalui sidang-sidang dan kenyataan media yang telah dilakukan sepanjang tempoh
perlaksanaan zakat secara wakalah ini (Berita Hariana, 2019; LZNK, 2020; NAFAS, 2020).
Namun, berdasarkan kajian, takrifan asnaf seringkali disalah tafsir oleh para muzzaki malah
ada yang tidak merujuk kepada institusi zakat ketika melakukan pengagihan 3/8 zakat
Wakalah (Atiah & Hairunnizam, 2017). Malah, terdapat kajian yang mendapati bahawa
terdapat rungutan dalam perlaksanaan sistem kutipan dan pengagihan zakat di kalangan
institusi zakat yang dilantik (Ahmad Hidayat & Saidatul, 2014). Memandangkan agihan zakat
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Wakalah akan dilakukan sendiri oleh muzzaki, maka satu mekanisme pengawalan dan
pemantauan yang telus terhadap agihan zakat ini diperlukan untuk mewujudkan keseragaman
agar zakat dapat diagihkan dengan efisien dan mengikut garis panduan yang betul dan
ditetapkan oleh institusi induk pungutan zakat seperti LZNK. Ini adalah satu kemestian bagi
mengelakkan pengagihan zakat yang tidak efektif oleh para muzzaki selain menjaga dan
memelihara kepentingan atau hak asnaf fakir dan miskin yang mungkin tidak dipenuhi.
Selain itu, mekanisme ini juga penting untuk menjadi penanda aras untuk menilai
kecemerlangan dan reputasi sesebuah institusi zakat dalam menjaga kebajikan asnaf (Hafizah
& Azizi, 2019). Oleh itu, tujuan kajian ini dijalankan adalah untuk mengenalpasti dan
menganalisis mekanisme atau kaedah yang sesuai untuk memantau dan mengawal
pengagihan kembali 3/8 zakat yang diterima oleh pembayar zakat oleh LZNK.
2.0 SOROTAN LITERATUR
2.1 Pengurusan Zakat di Lembaga Zakat Negeri Kedah (LZNK)
Peranan institusi pengurusan zakat adalah penting demi pengembangan sosioekonomi
masyarakat islam. Di Malaysia, setiap negeri bertanggungjawab untuk menguruskan hal
ehwal zakat bagi negeri masing-masing. Di negeri Kedah, Lembaga Zakat Negeri Kedah
(LZNK) yang telah ditubuhkan pada tahun 1936 merupakan institusi yang ditubuhkan dan
mempunyai bidang kuasa untuk menguruskan zakat di seluruh negeri Kedah. Namun, jika
dibandingkan dengan negeri lain, terdapat perbezaan pada model pengurusan zakat yang
diaplikasikan di negeri kedah. Ini kerana LZNK ditubuhkan di bawah enakmen khas berkaitan
pengurusan zakat dan tidak bernaung di bawah Majlis Agama Islam Negeri Kedah (MAINK)
(Mohd Anuar & Mohammad Naqib, 2017). Melalui model ini, sebarang perihal zakat, LZNK
perlu terus melaporkan kepada Duli Yang Maha Mulia Tuanku Sultan Kedah (Sulong & Ali,
2012).
Penubuhan LZNK adalah bertujuan untuk menguruskan pungutan dan pengagihan zakat di
negeri Kedah. Bagi menjalankan tugas-tugas berkaitan kutipan zakat di daerah-daerah, LZNK
telah mengagihkan bidang kuasanya kepada pejabat zakat daerah. LZNK bukan sahaja
memainkan peranan aktif dalam membantu golongan yang miskin, tetapi, juga mewujudkan
harapan kepada masyarakat terutamanya untuk mengubah status kehidupan terutamanya
melalui bantuan pendidikan (Azizah et al., 2019).
LZNK menyediakan pelbagai jenis bantuan zakat kepada yang memerlukan. Ini termasuklah
bantuan sara hidup, perubatan, perumahan, perniagaan atau jayadiri, musibah alam,
pembangunan ummah serta Pendidikan. Sejak tahun 2015 hingga tahun 2018, LZNK telah
mengagihkan sebanyak RM563,018,762.00 kepada golongan asnaf dan fakir miskin yang
layak dan memerlukan. Malah, kutipan ini dijangka semakin meningkat kerana semakin ramai
pembayar zakat tampil secara sukarela untuk membayar zakat dan memberi kepercayaan
terhadap pengurusan LZNK.
Namun begitu, kecekapanyan tadbir urus zakat tidak hanya diukur daripada nilai pungutan
zakat, tetapi perlu diukur dari aspek manfaat dana zakat kepada asnaf. Agihan zakat kepada
golongan yang layak menerima zakat memerlukan sistem agihan yang efisien bagi
memastikan layanan yang adil dan saksama. Justeru itu, perhatian perlu diberikan terhadap
peranan penting yang perlu dimainkan oleh pihak pengurusan zakat dalam aspek agihan zakat
(Faizul & Shahir Akram, 2019).
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2.2 Agihan Zakat Wakalah
Pengaplikasian agihan zakat Wakalah merupakan salah satu usaha LZNK untuk
meningkatkan hasil pungutan zakat bagi membantu menaikkan taraf sosioekonomi golongan-
golongan asnaf. Selain itu, ia juga adalah satu inisiatif LZNK untuk menggalakkan para
muzzaki (pembayar zakat) untuk terus membayar zakat (Azizah et al., 2019). Secara
definisinnya, Wakalah merupakan dasar pengembalian wang zakat oleh institusi pungutan
zakat kepada entiti yang membayar zakat samada individu, syarikat, majikan atau institusi
pengajian tinggi (IPT) untuk diagihkan kepada asnaf yang layak untuk menerima zakat.
Kaedah Wakalah ini merupakan inisiatif perkongsian dan keterlibatan para muzzaki untuk
turut serta dalam proses agihan zakat (Nadiah et al., 2020). Sistem ini merupakan mekanisme
yang dilaksanakan bagi meningkatkan kutipan zakat dikalangan muzzaki (Atiah &
Hairunnizam, 2017).
Di Kedah, LZNK telah menggunapakai kaedah pengembalian zakat secara wakalah ini bagi
membiayai keperluan asnaf dan fakir miskin di sekitar negeri Kedah melalui keterlibatan
syarikat-syarikat atau individu pembayar zakat, namun, sehingga kini, kaedah wakalah ini
masih tidak diaplikasikan secara meluas oleh syarikat-syarikat di negeri Kedah (Berita
Harian, 2019). Malah, pengagihan kembali 3/8 zakat secara wakalah kepada muzzaki
daripada LZNK, mahupun pengagihan zakat secara wakalah yang diterima muzzaki daripada
LZNK kepada para penerima zakat yang layak masih tidak banyak dibincangkan dan
dicanangkan di media bagi menangkis pandangan-pandangan negatif masyarakat terutamanya
isu yang berkait rapat dengan ketelusan agihan zakat.
3.0 METODOLOGI KAJIAN
Terdapat dua pendekatan metodologi yang akan digunakan dalam kajian ini iaitu melalui
kaedah pengumpulan data primer (kualitatif) dan pengumpulan data sekunder (kuantitatif).
Pertama, pengumpulan data primer akan dijalankan melalui temuduga bersemuka dengan
pegawai-pegawai Unit Wakalah di LZNK. Temuduga ini diaturkan untuk mendapatkan
maklumat yang tidak terdapat dalam dokumen bercetak berkaitan dengan pengaplikasian
sistem zakat secara wakalah di negeri Kedah. Set soalan yang tidak berstruktur akan
digunakan semasa sesi temuduga secara bersemuka ini.
Kedua, pengumpulan data sekunder akan dijalankan melalui semakan dokumen bertulis
seperti artikel, jurnal dan laporan tahunan LZNK untuk mengumpulkan maklumat yang
berkaitan dengan agihan zakat Wakalah. Ini bertujuan untuk menganalisa kajian lepas dan
dan maklumat-maklumat yang berkaitan bagi menghasilkan mekanisme yang berkesan untuk
mengawal dan memantau aktiviti pengagihan zakat secara wakalah.
4.0 JANGKAAN DAPATAN KAJIAN
Kajian ini dijangka dapat menghasilkan mekanisme yang sesuai untuk diaplikasikan oleh
LZNK bagi membolehkan LZNK untuk melakukan pemantauan dan pengagih\han dengan
berkesan terhadap pelaksanaan konsep zakat secara wakalah. Mekanisme ini akan membantu
LZNK untuk memastikan zakat yang terlibat akan dapat disalurkan kepada golongan asnaf
dan para penerima zakat yang selayaknya mengikut definisi LZNK.
5.0 KESIMPULAN
Pengwujudan mekanisme pengawalan dan pemantauan agihan zakat secara wakalah ini dapat
menaik taraf hidup masayarakat terutamanya dikalangan para asnaf dan penerima zakat yang
layak memandangkan pengagihan zakat dapat dilakukan secara lebih telus. Pengagihan zakat
secara efisien melalui pengaplikasian mekanisme ini juga dapat meningkatkan kualiti umat
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islam seperti menghasilkan modal insan yang lebih baik. Selain itu dan utama, kajian ini akan
mampu meningkatkan kepercayaan para pembayar zakat untuk terus menyumbang zakat di
institusi zakat yang telah dilantik.
PENGHARGAAN
Kajian ini adalah ditanggung sepenuhnya oleh Lembaga Zakat Negeri Kedah (LZNK) dengan
kerjasama Universiti Teknologi MARA (UiTM) Cawangan Kedah. Penulis artikel ingin
merakamkan ucapan penghargaan kepada semua pihak yang terlibat dalam penghasilan
artikel ini.
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https://www.bharian.com.my/berita/wilayah/2019/12/637661/jumlah-kutipan-zakat-
kedah-terus-meningkat
Pertubuhan Peladang Kebangsaan (NAFAS) (2020). Program kasih peladang santuni 225
peladang asnaf Kedah. NAFAS.
http://nafas.com.my/v2/index.php?option=com_content&view=article&id=477:program
-kasih-peladang-santuni-225-peladang-asnaf-kedah&catid=56&Itemid=343&lang=my
Sulong, J. & Ali, A.M. 2012. Kajian Perbandingan Dalam Pentadbiran Undang-undang
Kutipan Zakat Di Provinsi Aceh Dan Negeri Kedah. Kajian Malaysia, 30 (1), 107–138.
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IMPACT OF COVID-19 PANDEMIC ON THE SURVIVAL OF ASNAF
ENTREPRENEURS IN SELANGOR
*Khairul Azhar Meerangani1, Muhammad Hilmi Mat Johar2, Mohd Zaid Mustafar1 &
Mohammad Fahmi Abdul Hamid1
1Academy of Contemporary Islamic Studies, Universiti Teknologi MARA (UiTM), Melaka
Branch, Malaysia
2Faculty of Islamic Knowledge, Kolej Universiti Islam Melaka (KUIM), Malaysia
*Corresponding E-mail: [email protected]
ABSTRACT
The Asnaf Economic Development Program is a proactive initiative by the Selangor Zakat
Board (LZS) aimed at helping to increase the potential of the asnaf in the entrepreneurial
sector. This initiative is in line with LZS's own objective to increase the effectiveness of
zakat distribution through a two-pronged strategy, which is to ensure that every asnaf is able
to live a prosperous life while building their potential to get out of poverty. However, the
threat of the COVID-19 pandemic in 2020 followed by the enforcement of the Movement
Control Order (MCO) caused a chain reaction, especially on the country's economic sector.
The Malaysian Institute of Economic Research (MIER) estimates that Malaysia's GDP for
2020 will contract from 4.0% to -2.9%. In addition, a total of 2.4 million workers are also
estimated to lose their jobs with 67% of them being unskilled workers. Lembaga Zakat
Selangor (LZS) itself reported a decrease in the zakat collection rate of 0.1% for the period
January-May 2020, compared to the same period last year. Thus, this study aims to analyze
the impact of the COVID-19 pandemic on the survival of zakat asnaf entrepreneurs in
Selangor, and then formulate proposed solutions to improve their competitiveness. The study
was conducted qualitatively using content analysis method through examination of primary
and secondary sources related to the asnaf entrepreneur program as well as data and statistics
related to the impact of COVID-19 on the national economic projections and survival of
micro entrepreneurs. Primary data were obtained through statistics on the distribution of
asnaf economic development program by the LZS as well as data related to the impact of
covid-19 on micro businesses in Malaysia. Information related to secondary data is obtained
through scientific journals, books and theses related to zakat development programs,
especially in Selangor. LZS has generally succeeded in producing asnaf entrepreneurs
through the Economic Development Program. However, the threat of the COVID-19
pandemic and the challenges of the IR4.0 era necessitate a more comprehensive and
competitive entrepreneurial model. The online business is one of the strongest platforms in
facing the challenges of the COVID-19 pandemic while realizing the aspirations of IR4.0.
However, several strategies need to be implemented to ensure the effectiveness of this
business such as the use of e-commerce platforms and digital media, leveraging government
assistance initiatives, providing flexible and attractive payment platforms and adapting the
latest technologies, strategies and skills as product and business rejuvenation process. This is
to produce asnaf entrepreneurs who are able to remain competitive as well as develop their
potential to face the changes in the current world.
Keywords: Asnaf entrepreneurs, COVID-19; Impacts; Life wellbeing; Survival
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VOLATILITY PATTERNS OF THE DJSUKTRX BASED ON THE 2008
FINANCIAL CRISIS: ANALYSIS FROM GARCH-FAMILY MODELS
*Syazwani Abd Rahim1, Nursilah Ahmad2 & Nur Hafizah Othman3
1Academy of Contemporary Islamic Studies (ACIS), Universiti Teknologi
MARA, Johor Branch, Segamat Campus, Johor, Malaysia
2Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia (USIM),
Bandar Baru Nilai, Negeri Sembilan, Malaysia
3Syaria Research Centre, Faculty of Islamic Studies, Universiti Kebangsaan
Malaysia (UKM), Selangor, Malaysia
*Corresponding E-mail: [email protected]
ABSTRACT
The sukuk market in the Islamic capital market has undergone significant evolution and
development. During the 2008 global financial crisis, the deteriorating economic condition of
countries, especially Malaysia as the biggest sukuk market in the world, has adversely
affected the value of sukuk investments. The decrease of 33 per cent in total global sukuk
issuance after the 2008 crisis generated a complicated situation among sukuk investors
(classified sukuk as a risky investment), then increased the number of sukuk defaults. The
high volatility affects long-term efficiency. Against this background, this study investigates
the volatility behaviour of the Dow Jones Sukuk Total Return Index (DJSUKTRX) in the
presence of structural breaks (the 2008 global financial crisis) by using volatility as the proxy
of risk. The daily data of DJSUKTRX were collected from 2005 until 2015. This study
observes the volatility behaviour of this index with risk/return trade-off as the proxy of risk
for the study period based on Generalized Autoregressive conditional heteroscedasticity
(GARCH)-family models. The findings of this study indicate the sukuk market as more
responsive towards negative news. There are leverage effects in sukuk index and records as
low volatility persistence. In short, the findings will provide valuable information, guidelines,
and encouragement to issuers, policymakers, regulatory bodies, as well as investors to invest
and issue sukuk (Islamic bond). The empirical contributions in this study show the
importance of sukuk for investors to invest, thus increase economic growth and investment.
Keywords: Crisis; DJSUKTRX; GARCH model; Sukuk; Volatility
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DEVELOPMENT OF RESEARCH FRAMEWORK OF BANKS’
PROFITABILITY
Zawani Mohd Radzi1, Izan Izzati Md Said 1, Fatin Shazwani Muzafar 1 & *Zuraidah
Mohamed Isa1
1Faculty of Business and Management, University Teknologi MARA (UiTM), Kedah
Branch, Malaysia
*Corresponding E-mail: [email protected]
ABSTRACT
The banking system in Malaysia has emerged in the ongoing world economic and financial
problem from a far better position compared to other Asian financial problems. In the light of
deregulation, globalization and intensive competition, and the rise in the proportion of non-
bank organizations, there is a need to study banks’ profitability. Considering its importance,
there is a need to conduct a study on the determinants of banks’ profitability as the key
reason. As a result, this study will examine the factors that affect the profitability of banks.
Additionally, this study will provide a research framework for examining banks' profitability.
From the literature review, it is found that bank size, capital adequacy, operating efficiency,
and asset quality are the determinants of Islamic banks’ profitability. A research framework
and hypotheses of the study are developed to further discuss the determinants of the
profitability of banks in the future.
Keywords: Banks’ profitability; Bank size; Capital adequacy; Operating efficiency; Asset
quality
1.0 INTRODUCTION
The banking system in Malaysia has emerged in the ongoing world economic and financial
problem from a far better position compared to other Asian financial problems. The
restructuring and consolidation of the financial sector, along with changes in the government
system, threat management process, technology and procedures, and community development
handled due to economic recession, have greatly improved the basis of financial
stability. Therefore, in the light of deregulation, globalization and intensive competition, and
the rise in the proportion of non-bank organizations, there is a need to study banks’
profitability. Thus, this study will look into the factors that influence banks’ profitability.
Additionally, this study will provide a research framework for examining banks' profitability
that can be applied in future studies.
2.0 LITERATURE REVIEW
Profitability is the prime purpose of all corporate activities. Despite profitability, an
organization would not succeed in the long term. According to Bashir (2003), profitability
displays the values gained per dollar in assets, and most significantly, reflects a corporate's
ability to leverage a bank's capital and actual investment tools to produce income. This is in
line with studies conducted by Lelissa (2014) and Dao and Nguyen (2020) who describe
profitability as primarily illustrated by quantitative financial measures. For any bank,
profitability influences policy decisions as well as unpredictable variables pertaining to the
economy and government regulations. Many regulators claim asset returns are the best
indicator of a bank’s performance.
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One of the major determinants of profitability is the asset size of a bank. Bank size is
commonly used in the banking sector to capture future economies or diseconomies of scale.
This variable controls rate disparities and the diversification of goods and risks according to
the scale of credit organisation. A method to measure bank size is using the logarithm (log A)
of total assets. A study by Husain et al. (2015) observed that the size and liquidity of a bank
demonstrated a good relationship between the profitability. Also a study conducted by Author
et al., (2011) implied that bank size was the most significant factor in understanding the
improvement in profitability of Islamic bank institutions in Malaysia, provided that the
greater size of banks fundamentally increased access to capital markets, lowered borrowing
costs, and produced higher incomes. Another determinant of profitability is capital adequacy.
Capital adequacy is the ratio used by banking institutions to control their ability or
performance from any losses. There are a few methods to express the adequacy of capital
(CAAD), such as the ratio of capital risk, the ratio of capital to total deposits, or the ratio of
capital to total assets (Husain et al., 2015). Based on previous researches by Shah Khan et al.
(2014), Hussain et al. (2012), Iqbal et al. (2012), Samail et al. (2018), and Masood and
Ashraf (2012), there is a positive relationship between capital adequacy and profitability in
Islamic banks.
Operating efficiency is another determinant of profitability that can be measured. A study
conducted by Ijaz et al. (2015) discovered that the operating efficiency, asset management,
operating leverage ratio, and bank size highly influenced the profitability of Islamic banks. In
the same vein, results from studies by Ali et al. (2011), Shah Khan et al. (2014), Bashir
(2003), and Izhar and Asutay (2007) found that there was a relationship between operational
efficiency and profitability of Islamic banks. In addition to this, asset quality can also be
considered as a determinant. A study by Khanji and Al-Qadi (2018) revealed that there was a
relationship between liquidity and profitability. This study reported a significant impact of
quick ratio on return on assets (ROA). Studies by Irawan and Faturohman (2015) and
Adebayo et al. (2011) also showed that there was a relationship between liquidity and
profitability.
Figure 1
Research Framework
Bank Size Banks’ Profitability
Capital Adequacy
Operational Efficiency
Asset Quality
The review of literature offers a useful basis for the development of research framework and
hypotheses of this study. From the literature, this study presumes that bank size, capital
adequacy, operating efficiency, and asset quality are the important determinants of
profitability of banks. Therefore, the following hypotheses are developed to investigate the
relationships between the variables.
a) H1: Bank size has a relationship with profitability of banks.
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b) H2: Capital adequacy has a relationship with profitability of banks.
c) H3: Operational efficiency has a relationship with profitability of banks.
d) H4: Asset quality has a relationship with profitability of banks.
3.0 RESEARCH METHOD
This study develops a research context through a qualitative approach known as library
research. This study will explore the factors that influence banks’ profitability through library
research and a review of the available literature. Emerald, Scopus, and Science Direct are
among the databases chosen. As a result, this analysis will attempt to: (1) review the literature
on banks’ profitability; (2) investigate the determinants of banks’ profitability; (3) create a
research framework for banks’ profitability determinants; and (4) build the study's
hypothesis.
4.0 CONCLUSION
Through the literature review, this study has constructed a research framework of
determinants of banks’ profitability, namely bank size, capital adequacy, operating efficiency,
and asset quality. Furthermore, this study also develops hypotheses to further discuss the
determinants of the profitability of Islamic banks in the future.
REFERENCES
Adebayo, O., David, A. & Samuel, O. (2011). Liquidity
Management and Commercial Banks’ Profitability in Nigeria. Research Journal of
Finance and Accounting, 2 (7), 2222-1697.
Ali, K., Akhtar, M. F., & Ahmed, H. Z. (2011). Bank-Specific and Macroeconomic Indicators
of Profitability - Empirical Evidence from the Commercial Banks of Pakistan.
International Journal of Business and Social Science, 2 (6), 235–242
Author, C., Idris, R., Fizari Abu Hassan Asari, F., Asilah Abdullah Taufik, N., Jana Salim,
N., Mustaffa, R., & Jusoff, K. (2011). Determinant of Islamic Banking Institutions’
Profitability in Malaysia. World Applied Sciences JournalSpecial Issue on Bolstering
Economic Sustainability Bank Negara Malaysia, 12 (1), 1–7.
Bashir, A.-H. (2003). Determinants of Profitability in Islamic Banks: Some Evidence From
the Middle East. Islamic Economic Studies, 11–1 (1), 32–57
Dao, B. T. T., & Nguyen, D. P. (2020). Determinants of profitability in commercial banks in
Vietnam, Malaysia and Thailand. Journal of Asian Finance, Economics and Business, 7
(4), 133–143. https://doi.org/10.13106/JAFEB.2020.VOL7.NO4.133
Husain, A., Affandi, S., & Shukur, N. A. (2015). The internal determinants of Islamic banks’
profitability in Malaysia. Journal of Basic and Applied Scientific Research, 5 (7), 17–
21.
Hussain, N. E., Abdullah, H., & Shaari, M. S. (2012). Efficiency and profitability of islamic
banking in malaysia. Journal of Applied Sciences Research, 8 (11), 5226–5241.
Ijaz, F., Akmal, A., & Gillani, S. H. B. (2015). The Determinants of the Pakistan Islamic
Banking Industry Profitability: Panel Evidence. Islamic Banking and Finance Review,
02 (March), 77–91. https://doi.org/10.32350/ibfr.2015.02.06
Iqbal, M., Wilson, R., Hassan, M. K., & Bashir, A.-H. M. (2012). Determinants of Islamic
Banking Profitability. Islamic Perspectives on Wealth Creation, November, 118–140.
https://doi.org/10.3366/edinburgh/9780748621002.003.0008
Irawan A, and Faturohman T. (2015). A Study of Liquidity and Profitability Relationship:
Evidence from Indonesian Capital Market. International Journal of Management and
Applied Science (IJMAS), 1 (9), 87-91.
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https://www.researchgate.net/publication/324877754_Relationship_Between_Liquidity
_and_Profitability_An_Empirical_Study_of_Trade_Service_Sector_in_Jordan
Izhar, H., & Asutay, M. (2007). Estimating the Profitability of Islamic Banking: Evidence
from Bank Muamalat Indonesia. Review of Islamic Economics.
Al-Qadi., N. S., & Khanji., I. (2018). Relationship Between Liquidity and Profitability: An
Empirical Study of Trade Service Sector in Jordan. Research Journal of Finance and
Accounting, 9 (7).
Lelissa, T. B. (2014). The Determinants of Ethiopian Commercial Banks Performance.
European Journal of Business and ManagementOnline), 6 (14), 2222–2839.
Masood, O., & Ashraf, M. (2012). Bank-specific and macroeconomic profitability
determinants of Islamic banks: The case of different countries. Qualitative Research in
Financial Markets, 4 (2–3), 255–268. https://doi.org/10.1108/17554171211252565
Samail, N. A. B., Zaidi, N. A. B., Mohamed, A. S. B, & Kamaruzaman, M. N. Bin. (2018).
Determinants of Financial Performance of Islamic Banking in Malaysia. International
Journal of Academic Research in Accounting, Finance and Management Sciences, 8
(4), 21–29. https://doi.org/10.6007/ijarafms/v8-i4/5182
Shah Khan, M. M., Ejaz, F., & Aslam, E. (2014). Determinants of Profitability of Islamic
Banking Industry: An Evidence from Pakistan. Business & Economic Review, 6 (2),
27–46. https://doi.org/10.22547/ber/6.2.2
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PRESENTEEISM OF EMPLOYEES IN THE SERVICING UNIT: THE
ORGANIZATIONAL ASPECTS
*Marlina Muhamad1, Nur Najihah Noor Samiri1 & Kardina Kamaruddin1
1Faculty of Business and Management, Universiti Teknologi MARA (UiTM), Kedah Branch,
Malaysia
*Corresponding E-Mail: [email protected]
ABSTRACT
This qualitative study aims to explore organizational aspects that lead to presenteeism using
semi-structured interviews with six, as a total number of employees as participants in one of
the public sector agencies that serves as the servicing unit towards customers in northern state
of Peninsular Malaysia working. Data recorded from the face-to-face interviews were then
thematically analysed. Two sub-themes emerged that related to organizational aspects which
are working environment and administrative procedures. The findings from this study
warranted for further investigation whether these findings are applicable to other servicing
unit’s populations other than those represented in this study.
Keywords: Administrative procedures; Organizational aspects; Presenteeism; Servicing
employees; Working environment
1.0 INTRODUCTION
Before the term presenteeism has been gained attention in the field of human resource, we
usually heard and known the term of absenteeism. Contradict to absenteeism, presenteeism is
best defined as employees are still present in the workplace, however this trend has caused
productivity loss since employees are not capable to perform their work due to either
mentally or physically sickness (Halbesleben et al., 2014). The recent definition by Haque et
al. (2019), presenteeism is described as although employees are unwell, yet they still coming
to work and due to their unwell condition, they could not perform their work assigned. The
relationship between organizational and presenteeism have been examined in several studies
(Nyberg et al., 2008; Zhou et al., 2016) but there are relatively little studies involving
servicing occupational category where Aronsson et al. (2000) and MacGregor & Cunningham
(2018) highlighted those employees in servicing occupational category had higher levels of
presenteeism due to the sense of responsibility towards customers. Aronsson et al. (2000)
continue, presenteeism more likely to happened in a small and downsized work settings.
Apart from that, the likelihood of the small number of employees that need to attend to
customers, caused them to be present at workplace.
An initial study was understood as a negative event (Cooper, 1996), and ever since that,
majority of the existing studies have focused on its damaging consequences or antecedents
that might triggered the act (Johns, 2010). However, there are also positive antecedents of
presenteeism such as friendly working environment that have been overlooked. Thus, the
present study seeks an understanding of presenteeism through organizational aspects, as it
makes sense of, and enact, for employees working in servicing setting.
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2.0 LITERATURE REVIEW
Among of the factors that can favour presenteeism include the nature of the job and aspects
about the organizational context (Johns, 2011). Concerning the organizational aspects, it has
been found that customer service sectors marked the highest presenteeism levels since this
work category involves providing support services to others and employees are willing to
work although they are unwell to fulfilled some of the fundamental needs of other people
(Aronsson & Gustafsson, 2005). Other studies reported that the rate of presenteeism
influenced by the responsibility and demands at workplace (Widera et al., 2010). In servicing
sector, due to the obligation and worried of neglecting other expectancies, especially
expectations from public people, responsibilities played a compelling antecedent of
presenteeism (Grant, 2008).
3.0 RESEARCH METHOD
The research setting was undertaken at one servicing unit in northern area in Peninsular
Malaysia which catered for the needs of walk-in customers. This unit has four permanent
staff, one contract staff, and one temporary staff. Six of them are in charge for servicing
customers. In addition, they are also responsible for other management duties and clerical
duties apart from assisting customers and running of a counter.
To identify the organizational aspects that is believed to influenced presenteeism in
employees working within servicing unit, an exploratory study under qualitative research
methodology was conducted. Previous studies on presenteeism are lacking in servicing unit
and the lack of comprehensive presenteeism theory, explained the reasons why this study
design was chosen.
Convenience sampling was employed for this study. All the six participants from this unit
were voluntarily participated for this study. Written information was provided, and consent
obtained. Semi-structured interviews took place in the office during free time. These were
audio recorded and written by participants and lasted between 30 to 40 minutes. No more
interviews took place when the researcher had decided that saturation point had been reached.
Open-ended questions were informed by the literature. Participants were asked to describe
reasons for their presenteeism in workplace.
To ensure the research findings validity, steps were taken in a credible scholarly. Healy and
Perry (2000) claimed that in qualitative paradigm, the most essential criteria for the quality,
the terms of credibility, neutrality, conformability, consistency, and applicability are used for
validity and reliability. When the steps of the research were verified through examination of
raw data, data reduction, and process notes as well as reaffirming, after each interview, with
the participants of their answers during the interview session to see if researcher
understanding and participants understanding of the issue were at the same level, these have
reaffirmed that reliability was achieved. Trustworthiness, rigour, and quality in qualitative
paradigm are conceptualized as data reliability and validity. In addition, to ensure that
researcher got the correct information through during the interviews, researcher asked the
participants to write down their answers on the list of questions passed to them so that their
answers also recorded in the form of written answers. On the other hand, “point of data
saturation” indicate validity in which data was achieved by redundancy among participants’
statements during the interviews in qualitative paradigm and help to form codes in this study
(Cresswell & Miller, 2000).
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4.0 RESULTS
From this overarching theme, which is organizational aspects, two sub-themes were
identified, namely working environment and administrative procedures. Table 1 below
presented the sub-themes as well with the description and frequencies. Themes and
illustrative quotations are shown below.
Table 1
Thematic analysis coding template
Theme Sub-themes Theme description Frequencies (n)
Spirit of teamwork 2
Organizational Working Commitment 2
Sense of responsibility 1
aspects environment Conducive workplace 1
Administrative Employer’s instructions 1
procedures Meet the dateline 1
Save up time-off 1
This theme, which dealt with participants’ perceptions of the aspect about organizational
context, included two sub-themes, and there are working environment and administrative
procedures. Participants described that they are being affected by organizational context
factors which have caused them to engage in presenteeism. Pleasant and conducive working
environment were reported as the encouraging presenteeism.
“Good working environment influencing my presenteeism.”
“The spirit of teamwork working in this organization influence my presenteeism and
my working styles.”
In this organization, a culture of presenteeism was obvious since participants described the
social pressure from their colleagues to be present at workplace since everybody did it.
Furthermore, a strong teamwork played an important role in boosting presenteeism to help
employees coping with job demands and responsibilities. Whilst some individuals viewed as
commitment that they need to give to organization as a reason for their presenteeism.
Participants admitted that they need to present at workplace since it was an employer’s
instructions although their illness coincided with the days they need to present.
“I am bound to my boss’s instructions where I need to meet the datelines.”
“I refused to delay my works.”
“I have a big responsibility where I’m needed to authorize any documents.”
Another administrative procedure that encouraged presenteeism was the number of annual
leave given to employees here. Participants reported that they had attended their duties calls
although they were unwell to save up their time-off for any emergency occurs in future.
5.0 DISCUSSION
Compared to the previous studies, it was noted that positive antecedents such as supportive
relationships made presenteeism possible (Collins, 2012). Findings from this study, however,
have demonstrated a negative association between supportive relationships and presenteeism.
All six participants agreed they attended work in term of the good working environment, they
enjoy working as a teamwork and they give their commitment in what they did. Previous
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findings also indicate that an increase in presenteeism can be caused by high job demands
(Arnold, 2016).
Whilst some of participants viewed commitment as their reason for presenteeism, other
attended to work due to working environment and for their teamwork. Participants also
reported not to use their annual leave days and rather to be present at workplace in case to use
their time-off for emergencies.
6.0 CONCLUSION
The present research gives employees’ perspective on the organizational aspect in the
servicing unit. The findings highlight new avenues for research in a small servicing unit
whilst also suggesting for further investigation in larger servicing units. To face increasing
trends in presenteeism especially in small number of staff, organization could change their
business strategy such as taking example from high-reliability organizations to see their best
practices.
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Arnold, D. (2016). Determinants of the annual duration of sickness presenteeism: empirical
evidence from European data. Review of Labour Economics and Industrial Relations,
30 (2), 198-212. https://doi.org/10.1111/labr.12053
Aronsson, G. & Gustafsson, K. (2005). Sickness presenteeism: prevalence, attendance-
pressure factors, and an outline of a model for research. Journal of Occupational and
Environmental Medicine, 47 (9), 958-966.
Aronsson, G., Gustafsson, K. & Dallner, M. (2000). Sick but yet at work: an empirical study
of sickness presenteeism. Journal of Epidemiology Community Health, 54 (7), 502-509.
Collins, A. & Cartwright, S. (2012). Why come into work ill? Individual and organisational
factors underlying presenteeism. Employee Relations, 34 (4), 429-442. Retrieved 21
March 2021 from https://doi.org/10.1108/0142545121 1236850
Cooper, C. (1996). Hot under the collar. Times Higher Education Supplement, 21, 15.
Creswell, J. W. & Miller, D. L. (2000). Determining validity in qualitative inquiry. Theory
into Practice, 39, 124-130. http://dx.doi.org/10.1207/s15430421tip3903_2
Grant, A. M. (2008). The significance of task significance: job performance effects, relational
mechanisms, and boundary conditions. Journal of Applied Psychology, 93 (1), 108-124.
Halbesleben, J. R., Whitman, M. V. & Crawford, W. S. (2014). A dialectical theory of the
decision to go to work: bringing together absenteeism and presenteeism. Human
Resource Management Review, 24 (2), 177-192.
Haque, A., Fernando, M. & Caputi, P. (2019). Perceived human resource management and
presenteeism Mediating effect of turnover intentions. Asia-Pacific Journal of Business
Administration, 11(2), 110-130.
Healy, M. & Perry, C. (2000). Comprehensive criteria to judge validity and reliability of
qualitative research within the realism paradigm. Qualitative Market Research, 3 (3),
118-126. https://doi.org/10.1108/13522750010333861.
Johns, G. (2010). Presenteeism in the workplace: a review and research agenda. Journal of
Organizational Behavior, 31 (4), 519-542.
Johns, G. (2011). Attendance dynamics at work: the antecedents and correlates of
presenteeism, absenteeism, and productivity loss. Journal of Occupational Health
Psychology, 16 (4), 483-500.
MacGregor, J. & Cunningham, J. B. (2018). To be or not to be…at work while ill A choice
between sickness presenteeism and sickness absenteeism in the workplace. Journal of
Organizational Effectiveness: People and Performance, 5 (4), 314-327.
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Nyberg, A., Westerlund, H., Linda, L., Hanson, M. & Theorell, T. (2008). Managerial
leadership is associated with self-reported sickness absence and sickness presenteeism
among Swedish men and women. Scandinavian Journal of Public Health, 36 (8), 803-
811.
Widera, E., Chang, A. & Chen, H. L. (2010). Presenteeism: a public health hazard. Journal of
General Internal Medicine, 25 (11), 1244-1247.
Zhao, H., Wayne, S. J., Glibkowski, B. C. & Bravo, J. (2007). The impact of psychological
contract breach on work-related outcomes: a meta-analysis. Personnel Psychology, 60
(3), 647-680.
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DEVELOPMENT OF RESEARCH FRAMEWORK OF
DETERMINANTS OF FIRMS LIQUIDITY
Nur Ain Hasna Ghazali1, Dziyaul Azhan Abdul Rahman1, *Zuraidah Mohamed Isa1 &
Dahlia Ibrahim1
1Faculty of Business and Management, University Teknologi MARA (UiTM), Kedah
Branch, Malaysia
*Corresponding E-mail: [email protected]
ABSTRACT
Liquidity management is a forefront to the success of firms. Different firms have different
requirement for liquidity depending on the business cycle and other unprecedented economic
events. Utmost concern, the liquidity position of firms can have double sword effects to
firms’ operation. While greater assets liquidity can give powers for managers to transform
liquid assets to profits, it can also leave firms to cease their operation due to fewer current
assets. For this reason, managers need to balance their liquidity position as an important
signal that their firms are able to meet their current maturing obligations, as well as, stable
financial position. Therefore, this study will explore factors that determine the liquidity level
of firms. Furthermore, this study will also develop a research framework to investigate the
firms’ liquidity.
Keywords: Current ratio; Firm’s size; Leverage; Liquidity; Quick ratio
1.0 INTRODUCTION
Liquidity positions of firms indicates whether firms have the capacity to meet their short-term
obligations. Poor liquidity position reflects the difficulty to pay short term obligations.
Essential to this, firms have to ascertain that their liquidity position is at par with the goal of
their firms in achieving a stable financial position. Each firm have different liquidity
requirements depending on the circumstances of the firms. The main factors that influence
liquidity requirements are the nature and the size of business (Pandy, 2005). In fact,
Huberman (1984) stated that firm liquidity levels are adjusted as management learns about
firms’ need for liquidity and as business cycle and other unfolded economic events. In
addition to this, Myers and Rajan (1998) claimed that greater asset liquidity gives managers
the power to transform assets in their own favour. Later, a study conducted by Lipson and
Mortal (2009) revealed that firms that have more liquid equity, tend to have lower leverage
and are more likely to choose equity over debt when they need new capital. Although it is
commonly viewed that the higher excess of current assets over current liabilities reflects
better liquidity position, the more relevant question concerning liquidity is the ability of the
firm to pay their debts in the future. Therefore, considering its importance, this study will
look into factors that determine firms’ liquidity.
2.0 LITERATURE REVIEWS
Liquidity is an important facet of the overall firm’s management. Accordingly, firms with
fewer current assets will have problem in continuing their operations while high current
assets show the return on investment is not in perfect condition (Horne & Wachowicz, 2007).
In addition to this, creditors are interested in the liquidity level of a firm as an indicator
whether firms can pay their current maturing obligations (Beaumont & Begemann, 1997).
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One most important measure of liquidity is current ratio. Current ratio represents the ratio of
current assets to current liabilities. The higher the ratio, the greater firms’s capacity in
meeting their short-term obligations (Durrah, et al., 2016). According to Albrech (2011),
current ratio is a ratio that is frequently used to measure the liquidity of firms. Study by
Lyroudi and Lazaridis (2000) showed that there is a significant relationship between current
ratio and liquidity of large and small firms of food and beverage industry in Greece. In fact, a
study by Lipson and Mortal (2009) also reported a positive relationship of current ratio and
liquidity in selected Indian cement firms.
Another frequent determinant to study the firm liquidity is quick ratio. Durrah, et al. (2016)
stipulated that quick ratio excludes prepaid expenses and inventory as both are difficult to
convert into cash. As with current ratio, high quick ratio also indicates firms having greater
capacity to repay their short-term obligations. A study conducted by Warrad and Al Omari
(2015) revealed that there is relationship between quick ratio and liquidity. Even Madushanka
and Jathurika (2018) disclosed a positive relationship between quick ratio and liquidity. In
their study of listed manufacturing companies, they found that quick ratio has significant
positive relationship with liquidity. A most recent study by Shah (2020) further suggested
that there is a positive relationship between quick ratio and liquidity where firms in India
have more liquidity position when inventories are excluded in the current assets.
In tandem with the above determinant, size of firms can affect liquidity. In support of this,
Khodamipour, et al. (2013) postulated that there is a significant relationship between firms’
size and liquidity with 95% certainty. Additionally, Bhattacharyya and Saxena (2018) and
Brox and Malik (2011) revealed that there is a positive relationship between firms’ size and
liquidity. In the same way, Ha-Brookshire (2009) and Alarussi & Alhaderi (2018) found a
strong positive relationship between firm size (total sales) with liquidity. As recent, Al-
Homaidi, et al. (2020) also substantiated that firms’ size does have a significant positive
relationship with liquidity.
Last but not least, leverage level of firms can affect liquidity. Syamsudin (2001) defined
leverage as a way for firms to increase their level of income by using their assets. In another
words, leverage is where firms determine the composition of their financial resources in an
attempt to increase profits (as cited in Veronica, 2015). To Myers and Rajan (1998), an
increase in leverage can reduce the levels of liquidity when firms use their current asset to
fund their operation internally. However, study conducted by Srinivasan, et al. (2002) proved
that there is positive relationship between leverage and liquidity. In consensus with this,
Goel, et al. (2015) found that leverage does have a significant relationship with liquidity in
their study of machinery firms in India.
The literature review provides a useful basis for the development of the research framework
and hypotheses for this study. From the literature, this study assumes that the current ratio,
the quick ratio, the firm size and the leverage ratio are important determinants of firms'
liquidity. The following hypotheses are therefore developed to investigate the relationship
between the variables.
a) H1: Current ratio has a relationship with liquidity.
b) H2: Quick ratio has a relationship with liquidity.
c) H3: Firm size has a relationship with liquidity.
d) H4: Leverage has a relationship with liquidity.
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Figure 1
Research Framework
Current Ratio Liquidity
Quick ratio
Firm Size
Leverage
3.0 RESEARCH METHOD
This study uses a qualitative method that is a library research to develop a research
framework. Through a library research and a review of available literature, this study will
investigate factors that determine the liquidity level of firms. Among the selected databases
are Emerald, Scopus and Science Direct. Therefore, using this approach, this study attempts
to: (1) review the literature of firms’ liquidity; (2) to explore the determinants of firm’s
liquidity; (3) develop a research framework of determinants of firm’s liquidity; (4) establish
the study’s hypothesis.
4.0 CONCLUSION
Through brief literature review above, a research framework is developed to investigate into
the relationship of four ratios, namely current ratio, quick ratio, firm size and leverage to
liquidity of firms. In a nutshell, this study attempts to determine whether the four ratios do
affects liquidity of firms. The firms’ managers need to know how the ratios affect their
liquidity as to equip them to have a balanced liquidity position due to double sword effect of
poor liquidity positions to firms’ financial performance.
REFERENCES
Albrech, S. L. (2011). Handbook of Employee Engagement: Perspectives, Issues, Research
and Practice. Human Resource Management International Digest
https://doi.org/10.1108/hrmid.2011.04419gaa.019
Al-Homaidi, E. A, Tabash, M. I, Al-Ahdal, W.M, Farhan, N.H.S, Khan, S. H (2020). The
Liquidity of Indian Firms: Emprical Evidence of 2154 Firms. The Journal of Asian
Finance, Economics and Business. 7(1), 19-27
Beaumont Smith, M., & Begemann, E. (1997). Measuring associations between working
capital and return on investment. South African Journal of Business Management.
https://doi.org/10.4102/sajbm.v28i1.783
Durrah, O., Abdul Rahman, A. A, Jamil, S. A & Ghafeer, N. A. (2016). Exploring the
Relationship between Liquidity Ratios and Indicators of Financial Performance: An
Analytical Study on Food Industrial Companies Listed in Amman Bursa. International
Journal of Economics and Financial Issues, 6 (2), 435-441
Goel, U., Chadha, & Sharma, A. K. (2015). Operating Liquidity and Financial Leverage:
Evidences from Indian Machinery Industry. Procedia Social and Behavioral Sciences-
XVIII Annual International Conference of the Society of Operations Management
(SOM-14), 189, 344-350.
Horne, J.C. & Wachowicz, J. M. (2007). Prinsip-Prinsip Manajemen Keuangan. In Prinsip-
Prinsip Manajemen Keuangan. https://doi.org/10.4324/9781315641348.
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Huberman, G. (1984). External Financing and Liquidity. The Journal of Finance.
https://doi.org/10.1111/j.1540-6261.1984.tb03684
Khodamipour, A., Golestani, S & Khorrami, M. (2013). The relationship between Liquidity
and the Company Size with Company Value in Companies Listed on Theran Stock
Exchange. European Journal of Natural and Social Sciences, 2 (3), 1210-1217.
Lina Warrad, & Rania Al Omari. (2015). The Impact of Turnover Ratios on Jordanian
Services Sectors’ Performance. Journal of Modern Accounting and Auditing.
https://doi.org/10.17265/1548-6583/2015.02.001
Lipson, M. L., & Mortal, S. (2009). Liquidity and capital structure. Journal of Financial
Markets. https://doi.org/10.1016/j.finmar.2009.04.002
Lyroudi, K., & Lazaridis, J. (2000). the Cash Conversion Cycle and Liquidity Analysis.
Social Science Research Network Electronic Paper Collection
Madushanka, K. H. I. & Jathurika, M. (2018). The impact of Liquidity Ratios on Profitability
(With Special Reference to Listed Manufacturing Companies Sri Lanka). International
Journal of Advanced Engineering and Science, 3 (4), 157-161
Myers, S. C., & Rajan, R. G. (1998). The paradox of liquidity. Quarterly Journal of
Economics. https://doi.org/10.1162/003355398555739
Pandy, M. G. (2005). Mixed forward and inverse solutions in movement biomechanics.
Theoretical Issues in Ergonomics Science.
https://doi.org/10.1080/14639220412331329663.
Shah, V. N. (2020). Impact of Liquidity Ratios on Profitability: A Study of Selected Listed
Printing Companies at Bombay Stock Exchange. A Global Journal of Social Sciences,
3 (3), 123-128.
Srinivasan, S. S., Anderson, R., & Ponnavolu, K. (2002). Customer loyalty in e exploration of
its antecedents and consequences. http s://doi.org/10.1016/S00224359(01)000653
Journal of Retailing.
Syamsudin, L. (2001). Corporate Financial Management. (Concept Application in Planning,
Monitoring, and Decision Making). Jakarta: PT. Raja Grafindo Persada.
Veronica, A. (2015). The Influence of Leverage and Its Size on the Earnings
Management.Reseearch Journal of Finance and Accounting, 6 (8), 159-167.
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TAX AVOIDANCE AND FRAUD MANAGEMENT IN MALAYSIAN
PUBLIC LIMITED COMPANIES
*Roshidah Safeei1 & Nor Asni Syahriza Abu Hassan2
1Faculty of Accountancy, Universiti Teknologi MARA (UiTM), Kedah Branch, Malaysia
2Language Studies Department, Universiti Teknologi MARA (UiTM), Kedah Branch,
Malaysia
*Corresponding E-mail: [email protected]
ABSTRACT
This proposed study focuses on the issues of tax avoidance and fraud management in
Malaysia. Hence, this study attempts to investigate the influence of tax avoidance on
management of fraud in public companies listed in the Main Market of Bursa Malaysia. This
study uses secondary data and quantitative analysis. The unit of analysis of this study is the
companies being prosecuted for fraud management from 2017 to 2020. Apart from
contributing to the tax avoidance and fraud management literature, this study is expected to
benefit various parties especially regulators and policymakers such as the Inland Revenue
Board of Malaysia, Bursa Malaysia and Securities Commission Malaysia to improve the
financial reporting quality in Malaysia. This study enhances public understanding of tax
avoidance and fraud management as well as a contribution to improve detection, deterrence,
and investigation of tax avoidance and fraud management.
Keywords: Fraud management; Public Limited Companies; Tax avoidance
1.0 INTRODUCTION
Fraud management has become the centre of public concern and it is a global issue to
business, financial community, regulators, investors, board of directors, academics and the
public at large around the world (Kassem, 2018; Dut 2016; ACFE 2020). The issue has kept
increasing from year to year with the advancement of commerce and technology (Gupta &
Gupta, 2015; Dut 2016). It has been recorded in high cases and is affecting companies in
more different ways than ever before (PwC, 2020). It is committed by the management of a
firm to obtain personal gain by cheating stakeholders (Nelson, 2011). Besides, it is a
deliberate misstatement or omission in a financial statement intended to deceive the
stakeholders (Howe, 1999; AICPA, 2017; Omar, Johari, & Smith, 2017). This is motivated to
make the financial performance of the company look better than it is in reality and it is not
accurately reflected in the actual performance (Omar et al., 2017). As a result, fraud
management involves intentional actions, which lead to a misstatement in the financial
statements, wrongful use of a position, and misappropriation of a firm's assets (AICPA,
2017).
Fraud management imposes tremendous costs and bad effects on the company when the fraud
management is found by the public at large (Strawhacker, 2016). Fraud management not only
has severe consequences for the organisation but also its employees and various stakeholders
(Saksena, 2001; Carcello & Hermanson 2008; Chenguel, 2020). For example, the revelation
of materially misstated financial statements results in large investor loss, subsequently
followed by intense media and regulatory scrutiny of the company (Carcello & Hermanson
2008). When fraud management occurs, the consequences to investors, the entity itself and
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the fraud perpetrators often are severe such as in the case of WorldCom, which the chief
financial officer was fired, and the company filed for bankruptcy (Saksena, 2001:
Strawhacker, 2016; Ortas & Gallego-Álvarez, 2020). Fraud management is not only very
costly (Omar et al., 2017) from an economic perspective (Md Nasir et al., 2019), but also
impacts public trust. Consequently, fraud management jeopardizes future investment for
companies as well as leading to detrimental aftermaths for the entire industries.
Most existing studies in Malaysia examined the relationship between corporate governance
and financial reporting fraud (Hasnan et al., 2008; Alwi et al., 2013; Abdullah & Said, 2019;
Ghafoor et al., 2019). This study aims to broaden the scope of fraud management from a tax
perspective. Therefore, this study contributes to the literature on fraud management by
providing new empirical evidence on the relationship between tax avoidance and fraud
management in emerging countries. To the best of the authors' knowledge, there are a few
studies that investigate whether tax avoidance has influenced fraud management (Lennox et
al., 2013: Ghafoor et al., 2019). This study developed a statistical model that would help
predict the existence of fraud management (Saksena, 1999) through tax avoidance.
This study contributes to the relevant body of knowledge, for instance, the Inland Revenue
Board of Malaysia, Bursa Malaysia and Securities Commission Malaysia. This study could
be important for them to reduce tax avoidance and fraud management. They can come out
with effective policy and good corporate governance to increase the level of confidence of the
investors in capital markets in Malaysia.
2.0 LITERATURE REVIEW
According to PwC's Global Economic Crime and Fraud Survey 2020 - Malaysia Report
(PwC), the survey revealed that 43% of Malaysian respondents have experienced fraud or
corruption within the last 2 years compared to the year of 2018 with only 41%. This shows
that there is a 2% raise and the fraud cases are still increasing. The survey was collected from
5,000 respondents across 99 territories on their experience of fraud over the past 2 years.
Almost half of them had suffered at least one fraud and an average of six frauds per company
(PwC, 2020). The most common types of fraud experienced by Malaysian organisations in
the last two years were customer fraud, cybercrime, and asset misappropriation (PwC, 2020).
Mostly the fraud perpetrators were committed by 40% internal perpetrators, 40% external
perpetrators and the balance 20% involved collusion between the two of them (PwC, 2020).
The respondents have reported the total cost of fraud losses amounting to USD42 billion and
almost 13% of them who have experienced fraud stated that they have lost more than USD50
million (PwC, 2020). This proves that fraud management became a threat to businesses, and
it was a risk that can destroy the businesses (Aghghaleh, et al., 2016).
Prior study, Ghafoor, et al. (2019) contended that tax aggressiveness increased the likelihood
of fraud management using a fraud sample of 76 firms in Malaysia from 1996 until 2016.
This study extends the prior study by examining the relationship between tax avoidance and
fraud management using a new sample from 2017 until 2020. This study investigates the
sample due to the new application of the Company Act 2016 and the revised Malaysia Code
of Corporate Governance in 2017. Hence, this study attempts to investigate the influence of
tax avoidance on the occurrence of management fraud in public companies listed in the Main
Market of Bursa Malaysia from 2017 until 2020. This study contributes to the existing tax
avoidance and fraud management literature. This proposed study posited that tax avoidance
influences the occurrence of fraud management in Malaysian public listed companies.
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H1: There is a relationship between tax avoidance and the occurrence of fraud management
in Malaysian public listed companies.
3.0 RESEARCH METHOD
This study is undertaken descriptive research design to achieve the objective of the study
which is to examine the influence of tax avoidance on management fraud in Malaysian public
listed companies. The sample of companies for the proposed study will be taken from
Malaysian companies listed in the main market of Bursa Malaysia. This study identifies the
initial sample of firms that commit fraud from the Securities Commissions of Malaysia
enforcement releases whilst the financial statement fraud firms list is from the Bursa
Malaysia enforcement release (Md Nasir, et al., 2019). Then, the sample of fraud firm that
were committed management fraud during the period from 2017 to 2020 will be matched
with non-fraud firm with similar industry and size (Hasnan et al., 2014).
This study uses a purposive sampling method which is financial statement fraud firms (Md
Nasir et al., 2019). This study will employ dependent dichotomous variable, equal to 1 if the
firm was investigated by the Securities Commission of Malaysia and Bursa Malaysia for
fraud and 0 otherwise (Hassan et al., 2014; Wei et al., 2017; Luo, et al., 2020). Consistent
with the prior studies, the effective tax rate (ETR) is used to measure tax avoidance (Razali et
al., 2019; Jarboui, et al., 2020). Tax information will be collected from the annual report of
the firms.
4.0 EXPECTED FINDING
In this paper, it is argued that tax avoidance is expected to influence the occurrence of fraud
management in Malaysian Public Limited Companies. This paper is expected to give an
indicator of tax avoidance in identifying the occurrence of fraud management for public
limited companies in Malaysia to the relevant regulators and investors. The finding of this
study expects that firms with tax avoidance are involved in fraud management. Tax
avoidance is expected to relate positively with fraud management.
5.0 CONCLUSION
This paper proposes that tax avoidance has influenced the occurrence of fraud management in
public companies listed in the Main Market of Bursa Malaysia. This study examines the
respective relationship by focusing on the relationship of opportunistic managerial discretion,
tax avoidance and fraud management in an economy developing country, Malaysia.
ACKNOWLEDGEMENT
The author is grateful for the constructive comments and guidance of the editors and
anonymous reviewers.
REFERENCES
Abdullah, W. N., & Said, R. (2019). Audit and risk committee in financial crime prevention.
Journal of Financial Crime, 26(1), 223–234. https://doi.org/10.1108/JFC-11-2017-
0116
ACFE. (2020). Report to the nations: 2020 Global study on occupational fraud and abuse. In
Association of Certified Fraud Examiners. https://www.acfe.com/report-to-the-
nations/2020/
Aghghaleh, S. F., Mohamed, Z. M., & Rahmat, M. M. (2016). Detecting Financial Statement
Frauds in Malaysia: Comparing the Abilities of Beneish and Dechow Models. Asian
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Journal of Accounting and Governance, 7, 57–65. https://doi.org/10.17576/ajag-2016-
07-05
AICPA. (2017). Consideration of Fraud in a Financial Statement Audit. Audit and
Accounting Guide, 217–230. https://doi.org/10.1002/9781119557630.ch12
Alwi, M., Wan Ismail, W. A., & Kamarudin, K. A. (2013). The effectiveness of audit
committee in relation to financial reporting fraud. The 5th International Conference on
Financial Criminology (ICFC) 2013, 332–344.
Carcello, J. J. V, & Hermanson, D. D. R. (2008). Fraudulent Financial Reporting: How Do
We Close the Knowledge Gap? November, 2–23.
Chenguel, M. Bechir. (2020). Financial Fraud and Managers, Causes and Effects.
November. https://doi.org/10.5772/intechopen.93494
Dut, M. A. (2016). The Development of Internal Controls to Detect and Prevent Financial
Statement Fraud. Northcentral University.
Ghafoor, A., Zainudin, R., & Mahdzan, N. S. (2019). Factors Eliciting Corporate Fraud in
Emerging Markets: Case of Firms Subject to Enforcement Actions in Malaysia. Journal
of Business Ethics, 160(2), 587–608. https://doi.org/10.1007/s10551-018-3877-3
Hasnan, S., Abdul Rahman, R., & Mahenthiran, S. (2008). Management Predisposition,
Motive, Opportunity, and Earnings Management for Fraudulent Financial Reporting in
Malaysia. 1–49. https://doi.org/10.2139/ssrn.1321455
Howe, M. A. (1999). Management fraud and earnings management. University of
Connecticut.
Kassem, R. (2018). Exploring external auditors’ perceptions of the motivations behind
management fraud in Egypt – a mixed methods approach. Managerial Auditing
Journal, 33(1), 16–34. https://doi.org/10.1108/MAJ-11-2016-1470
Lennox, C., Lisowsky, P., & Pittman, J. (2013). Tax Aggressiveness and Accounting Fraud.
Journal of Accounting Research, 51(4), 739–778. https://doi.org/10.1111/joar.12002
Md Nasir, N. A., Ali, M. J., & Ahmed, K. (2019). Corporate governance, board ethnicity and
financial statement fraud: evidence from Malaysia. Accounting Research Journal, 32
(3), 514–531. https://doi.org/10.1108/ARJ-02-2018-0024
Nelson, S. P. (2011). Fraudulent Financial Reporting: An Empirical Analysis in Malaysia.
Ssrn. https://doi.org/10.2139/ssrn.1966317
Omar, N., Johari, Z. A., & Smith, M. (2017). Predicting fraudulent financial reporting using
artificial neural network. Journal of Financial Crime, 24(2), 362–387.
https://doi.org/10.1108/JFC-11-2015-0061
Ortas, E., & Gallego-Álvarez, I. (2020). Bridging the gap between corporate social
responsibility performance and tax aggressiveness: The moderating role of national
culture. Accounting, Auditing and Accountability Journal.
https://doi.org/10.1108/AAAJ-03-2017-2896
PwC. (2020). Fighting fraud: A never-ending battle.
Saksena, P. (1999). An empirical analysis of the relationship between environment factors
and management fraud. https://doi.org/10.16953/deusbed.74839
Saksena, P. (2001). The relationship between environmental factors and management fraud:
an empirical analysis. International Journal of Commerce and Management, 11(1),
120–139. https://doi.org/10.1108/eb047418
Strawhacker, J. C. (2016). Analysis of Factors Influencing Corporate Ethics and Anti-Fraud
Programs (Issue May). https://search.proquest.com/docview/1796355756?pq-
origsite=gscholar
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LEAN ENTERPRISES IN SMALL MEDIUM ENTERPRISE
*Azyyati Anuar1 & Daing Maruak Sadek2
1Faculty of Business and Management, Universiti Teknologi MARA (UiTM), Kedah Branch,
Malaysia
2Academy of Contemporary Islamic Studies, Universiti Teknologi MARA (UiTM), Kedah
Branch, Malaysia
*Corresponding E-mail: [email protected]
ABSTRACT
To date, numerous lean practices have been discovered by many sectors, namely
manufacturing, construction, banking, healthcare, and others, particularly in SMEs. Lean
practices rely on how the organization implements its own way of eliminating waste since
various SMEs have different practices. Unfortunately, waste issues have not been actively
discussed not only among the SMEs, but also in past studies. It has been suggested that
comprehensive research should be carried out to measure how lean practices can solve waste
issues in SMEs. However, although some of the lean practices might be used by the SMEs,
how well it can be adapted is quite ambiguous. Notably, during the Covid-19 pandemic,
entrepreneurs have to endure such a thoughtful threat and it is alarming to all the
entrepreneurs to put much effort in combating the problems. Thus, to ensure that the SMEs
remain competitive and efficient, the lean enterprise has been introduced to identify and
prevent wastage problems in each organization and other ferocious challenges encountered
by the SME’s entrepreneurs. This paper aims to propose some of the lean practices that can
be practically applied among the SMEs, and these will be described following an
introduction, literature review and conclusion, respectively.
Keywords: Lean enterprise; Lean practices; Small medium enterprise; Waste
1.0 INTRODUCTION
Small-scale businesses are highly emphasized in the Eleventh Malaysia Plan. This plan aims
to convert the country of Malaysia to be a developed nation by 2020. Among the goals is to
ensure that all Malaysians would be able to achieve a high-income economic status of
RM52,000 per capita a year (Eleventh Malaysia Plan). Generally, the Malaysian government
initiated various efforts and initiatives to capitalize on entrepreneurship opportunities to
prevent the public from over-relying on wage earners. Besides, existing entrepreneurs need to
move forward to ensure that their businesses can continue to survive and grow in these
flexible market environments (Jasti et al., 2020). Apparently, one of the critical factors in
determining the success or failure of a business is how good the owners are able to run the
business activities. Although the SMEs have made an enormous contribution to the world
economy, to maintain this success can be quite challenging. Hence, the lean method has been
introduced to improve and strengthen a business.
2.0 LITERATURE REVIEW
2.1 Definition of Lean Enterprise
Generally, lean can be viewed from various perspectives according to the sectors involved,
such as services, production, banking, health, enterprise, and others. Originally, lean was
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defined as a systematic way of dealing with waste or was referred to as, ‘Muda’. Muda comes
from a Japanese word and it was translated with the meaning of waste (Basu, 2003). Waste
can be interpreted in a situation where the existing resources were not fully utilized to
enhance the value of a product or service.
Waste is taken from the concept of the Toyota Production System (TPS), which introduces
seven types of waste: overproduction, inventory, waiting, transportation, over-processing,
motion, and defects (Womack & Jones, 2003; Ohno, 1988). The implementation started in
the manufacturing sector and it was known as lean production. Initially, the term lean
production was coined by Krafcik (1988), and till now, it has been widely used around the
world. With the huge impact of lean production, it has further extended to lean enterprise,
proposed by Womack and Jones (1994). According to Jasti et al. (2020), several researchers
and consultants suggested several frameworks to adopt lean enterprise throughout the
organization. Similarly, a lean enterprise's objective is to prevent wastage and absorb all the
unnecessary non-value-added activities across all enterprises (Dombrowski et al., 2019;
Dombrowski et al., 2017). Concurrently, it fulfils customers' demand in the shortest time by
offering a high-quality product or service.
2.2 Lean Practices in Small and Medium Enterprises (SMEs)
Numerous lean practices have been discovered, but the method which is best for the SMEs is
still unknown so far. In fact, the practices depend on how the organization implements their
own way, since different organizations of SMEs have varying practices. In contrast, certain
SMEs are applying lean without realizing it (Matt & Rauch, 2013). Undeniably, not many
SMEs issues have been discussed, especially in the context of waste. Sahoo and Yadav
(2018) suggested that comprehensive research should be carried out to measure how lean can
solve waste issues in SMEs. Although some of the lean practices might have already been in
use by the SMEs, the extend to how well it has been adopted or adapted is unknown.
Therefore, the researcher would like to propose an appropriate lean enterprise that has a high
potential to be applied in the SMEs.
2.2.1 Kaizen
The term Kaizen literally means to change (kai) for the better (zen) (Sua et al., 2012).
According to Liker and Franz (2011), in reality, Kaizen is a vision, a dream, and indeed, it is
difficult for an organization to change all the time, continuously. However, for Japan's
leading company, Toyota, it is not impossible. Kaizen, or what is known as continuous
improvement, does not mean that a company's value is small, needs drastic change or
irrespective of innovation. But authority is more than a commitment to ensure continuous
improvement in every aspect of an organization (Iteng et al., 2015). Similarly, SMEs are
encouraged to make daily improvements in the organization to get better results, whether
internally or externally (Jorma et al., 2016). Thus, SMEs owners play an important role in
identifying each level of the organization and which part or element needs to be improvised.
2.2.2 Gemba
Gemba, also known as Genba, is a Japanese term meaning “the real place” or “the actual
place” (Liebengood et al., 2013). Gemba is one of the popular lean practices commonly
applied in most factories. Gemba can also be applied in SMEs where entrepreneurs do not act
as leaders in leading an organization. Based on a business definition, Gemba means to create
value for a place. The SMEs owners need to go down to the field to see where the work
processes and environments are happening (Aij & Teunissen, 2017). This method teaches the
SMEs entrepreneurs to be dedicated leaders by listening to the problems faced by their
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employees, re-analyzing the root causes of issues, and thus helping entrepreneurs make wise
decisions by considering all things fairly (Dombrowski, et al., 2016).
2.2.3 Just-in-Time (JIT)
The principle held by JIT is that every employee should follow the pull concept rather than
the push concept (Brecht, 2012). This means that the product's production needs to be done at
the customer's request and to ensure the production cycle begins once the customer has
placed an order with the manufacturer. In this regard, SME entrepreneurs need to ensure that
each product or service offered can meet customer’s demand at the right time, the right place,
and with the right amount (Aoun, 2015). One of the problems faced by the SMEs was the
failure to meet customer needs. Common problems encountered are lack of raw materials,
delays in stock, delays in delivery, timeliness, etc. Therefore, it is strongly recommended that
the JIT be used and practiced by the SMEs to achieve each set of goals and tasks as expected.
2.2.4 Kanban System
The following lean method is Kanban system, which the SMEs entrepreneurs can also apply
in their organization. Kanban is a Japanese term spelled as Kanban and translated as a sign
that refers to the existing capacity. Kanban is closely related to lean and JIT. According to
Ahmad et al. (2017), this system is a visual system for managing work to follow the work
processes as planned. This system is used as a scheduling system that will notify members of
employers and subcontractors about what will be released, how, and when it will be released.
However, Shah and Ward (2003) claimed that using kanban in a small scale production is
quite hard to imagine, due to the fact that this practice is common only for large scale
productions. Therefore, it is indispensable that the kanban system can be implemented in the
SME’s production system, regardless of whether the entrepreneur is offering the product or
service.
3.0 CONCLUSION
In a nutshell, lean enterprise is not limited to only the above practices because lean practices
are more than that. It depends on what kind of activities are usually being conducted in the
organization. Above all, the most crucial part is how these practices can be well delivered to
the employees and make them understand, comprehensively. This is due to the lean method
consisting of various practices and thus it might create confusion. Hence, the SME owners
need to communicate with the employees continuously. Not only just communicating but also
reviewing and revising the lean practices (Alkhoraif et al., 2019) until they reach the
consensus to implement with full pleasure and finally to inculcate the right culture in the
organization.
ACKNOWLEDGEMENT
We would like to express our gratitude to UiTM Kedah for funding this article and the
BizFAME for the opportunity given. The appreciation also goes out to the researchers and
reviewers for the strong commitment and dedication to making this article possible.
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A PROPOSED FRAMEWORK: SOCIAL MEDIA STRATEGIES,
GOVERNMENT RESPONSE AND SMALL MEDIUM ENTERPRISES
(SMEs) RESILIENCE
*Syahrul Nadwani Abdul Rahman1, Norhidayah Ali1 & Azyyati Anuar1
1Faculty of Business and Management, Universiti Teknologi MARA (UiTM), Kedah Branch,
Malaysia.
*Corresponding E-mail: [email protected]
ABSTRACT
Business interruption risk can occur unexpectedly even though the company has prepared a
contingency plan. Thus, this paper conceptualizes the proposed framework that could be used
to understand SMEs' resilience in Malaysia, especially in the Northern region that consists of
three states, namely Perlis, Kedah, and Penang. This is, moreover, to investigate the impact of
social media strategies and government response towards SMEs' resilience. This study will be
conducted based on a cross-sectional design by using the descriptive and regression study
design. A sample of 384 will be drawn from the total population of SME owners in the
Northern region. From the proposed framework, this study will be used to identify and
manage current and future threats to business, especially for small-medium enterprises. It can
also be extended to be used for emerging markets struggling to establish their market
competition.
Keywords: Government response; SMEs resilience; Small-medium enterprises; Social media
strategies
1.0 INTRODUCTION
Resilience can be described through different views such as personal, organizational, sectoral,
and societal. By looking at the personal view, resilience can be explained as the capability to
take in extraneous disturbance together with stress and bring back past form. Besides, it
points towards the ability to take advantage of the shock and pressure to become stronger
(Sawalha, 2015). While, at the organizational level, resilience can be described as the ability
to bounce back from untoward events and the capacity to maintain a desirable level of
functioning (Gittel et al., 2006). Rowe (2018) lists the six biggest risks concerning small
businesses, namely, financial risk, strategic risk, reputation risk, liability risk, business
interruption risk, and security risk. Among these, business interruption risk can occur
unexpectedly even though the company has prepared a contingency plan. Sometimes, this
contingency plan did not work as planned due to the level of the risk, especially when the risk
rarely happens, such as pandemic disease. December 2019 marked the beginning of a new
crisis that altered all organizations worldwide to run their business activities. The Prime
Minister of Malaysia announced the nation's movement control order (MCO) effectively on
March 18, 2020. This MCO prohibited non-essential businesses from running any activities.
Due to this situation, most SMEs experienced no cash flow for several months as the MCO
has been extended. In the fight against the outbreak, the government's focus remains on the
safety of people's lives over all other interests. Despite the difficulties, there are opportunities
that can be ventured into by every SME business in the country to enter the era of the digital
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economy by utilizing social media platforms, particularly when the MCO is enforced to move
digitally in line with the Industrial Revolution 4.0.
However, as Doern (2016) claimed, there is little research on how SMEs can be resilient. In
such cases, they are very common and do not concentrate on specific situations, especially on
SMEs (Doern, 2016). Considering these gaps, the authors attempt to examine the potential
contributors that will force and encourage SMEs to be resilient. This study is significant to
identify and manage current and future threats to business, especially for SMEs. It can also be
extended to be used for emerging markets struggling to establish their market competition.
Hopefully, understanding the impact of social media strategies will help SME owners adopt
the possible strategies that can minimize adverse effects. SMEs also will be able to
understand the way a government can influence their capacity to be resilient. Therefore, this
paper proposes a conceptual framework of social media strategies and government response
towards SMEs' resilience.
2.0 LITERATURE REVIEW
2.1 SMEs Resilience
Nowadays, it cannot be denied that all types of companies must be resilient. Nevertheless,
sometimes numerous unexpected situations can force a company to change its normal
activities. Basically, SMEs are commonly less resilient as compared to large companies. It is
because they normally face irregular disturbances (Battisti & Deakins, 2012; Ingirige et al.,
2008). There is a time when SMEs become ineffective in recovering from catastrophic
disasters due to being poorly prepared for risk management (Paton et al. 2001). As indicated
by van der Vegt et al. (2015), resilience arises from a give-and-take structure that consists of
several factors at different levels of analysis. Previous studies have affirmed that regular
formal planning and operations together with the best practices can administer enormous
resilience to the company. Hence, this study will attempt to assess the level of SMEs'
resilience in the Northern region.
2.2 Social Media Strategies
According to Delvalle Institute Learning Center (2021), social media platforms can be
classified based on their purpose and function. Social platforms that are often used as
intermediaries of public communication such as WhatsApp, Facebook, Instagram
applications can be transformed into digital marketing. This platform provides many chances
for a company to receive all related information either from the government or consumers.
Kim et al. (2016) found that social media is very useful to assist emergency management
agencies in South Korea during the tragic flood in 2013. Kapucu et al. (2013) suggested that
the use of social media can spread information quickly compared to existing media that are
normally used by emergency management organizations due to its restrictions and limits. As
Pelletier and Cloutier (2019) emphasized, the opportunity is wide open for SMEs today to
embrace the use of social media in supporting their business functions. Social media is
widely used not only in promoting SMEs' products and capturing ideas directly from
customers but also can be the source for SMEs to leverage their reputations (Nambisan et al.,
2019). This led to the first hypothesis that social media strategies have a significant positive
impact on SMEs' resilience.
2.3 Government Response
Government response means the exercise of political authority over the actions as well as the
performance of certain interventions to react due to the situation. Governments intervene
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in markets to address inefficiency, reflecting any combination of four different objectives
when they intervene in the market (Lumen, 2020). During the general financial crisis between
2001–2011, a country like the United States of America (USA), as mentioned by the National
Republican Senatorial Committee Report (2012): President Obama approved a total of
US$825 billion for the recovery assistance and later proposed another reinvestment to ensure
that the process of recovery can be well executed. Other countries have taken a similar
approach to ease the same situation. For instance, Singapore has introduced the "Resilience
Package" worth up to SG$20.5 billion in 2009 and the Bridging Loan Program (Thum, 2010).
In the Malaysian context, the government also provided the same approach by offering
“Government’s Credit Guarantee Scheme” and “Government’s Spending Programs” (Abidin
& Rasiah, 2009). As for the current crisis, PENJANA 2020 is another government initiative
to rehabilitate the Malaysian economy in stages affected by the outbreak of Covid-19. It is
said that a total of RM35 billion has been allocated to stimulate the country's economy. Thus,
the second hypothesis is derived, which is that government response has a significant positive
impact on SMEs' resilience. Figure 1.0 illustrates the proposed research framework of this
study.
Figure 1
Proposed Research Framework
Social media strategies SMEs resilience
Government response
3.0 RESEARCH METHOD
This study will be conducted based on a cross-sectional design by using the descriptive and
regression study design. Quantitative data will be gathered by distributing a survey
questionnaire that composes of a Likert Scale from 1 to 5. This study mainly focuses on the
SMEs that are registered with SSM in the Northern region, Malaysia that consists of three
states, namely Perlis, Kedah, and Penang. The total number of populations for SMEs in the
Northern region, Malaysia, is derived from the 2016 Economic Census report as of 2015
(SME CORP, 2021). The sample size for this study will be 384 by using proportionate
stratified random sampling. Then, the clustering technique is chosen to cluster the sample
according to its business type. The partial least squares (PLS)-method (PLS) will be used to
analyze the data collected. SMART PLS is widely used to analyze component-based SEM.
4.0 CONCLUSION
This study is attempted to provide a proposed framework of social media strategies and
government response towards SMEs' resilience in the Northern region. By understanding the
impact of social media strategies in providing, transmitting, and responding to the
information that is available around the business environment can help SMEs to minimize the
impact of incidents and losses. SMEs can understand how government action can influence
their capacity to be resilient.
40
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