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South East Asian Journal of Management
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  This is an Open Access Journal Open Access journal
ISSN (Print) 1978-1989 - ISSN (Online) 2355-6641
Published by Universitas Indonesia Homepage  [20 journals]
  • The Effects of Transformational Leadership and Job Satisfaction on
           Commitment to Organisational Change: A Three-Component Model Extension
           Approach

    • Authors: Dung Tien Luu, Hai Van Phan
      Abstract: Research Aims: The present study aimed to examine the relationship between transformational leadership, job satisfaction and employee commitment to organisational change.   Design/Methodology/Approach: Extension of a three-component model was employed. The study sample consisted of 474 employees in organisations undergoing a significant organisational change in Vietnam. The data were analysed using a structural equation model (SEM).   Research Findings: The study results show that transformational leadership has a positive and significant influence on job satisfaction and organisational commitment to change (affective commitment, normative commitment, continuance commitment). Job satisfaction is found to be positively and significantly related to employee affective commitment and normative commitment to organisational change.   Theoretical Contribution/Originality: This study indicated the critical role of transformational leadership and job satisfaction on the commitment to organisational change in the context of an emerging economy.   Managerial Implications in the Southeast Asian Context: Organisations should maintain employees' positive attitudes and behaviour by applying the transformational leadership style and ensuring job satisfaction, which plays a central role in the organisation by orienting employee psychology, motivation and positive behaviour to change.   Research limitation & implications: This study has certain limitations due to its sample and self-report questionnaire scale. The research model did not simultaneously test multiple antecedents (e.g., personality, context) and consequences of employee commitment to organisational change. There is a lack of empirical studies addressing the relationship between demographics and antecedents/consequences of commitment to change.

      PubDate: 2020-06-11
      Issue No: Vol. 14 (2020)
       
  • Intellectual Capital and SMEs’ Business Performance from an
           Organisational Lifecycle Perspective

    • Authors: Salwa Muda, Mara Ridhuan Che Abdul Rahman, Noradiva Hamzah, Norman Mohd Saleh
      Abstract:  Research Aims: This study examined the influence of intellectual capital (IC) elements, namely human, structural and relational capital, on the performance of small and medium-sized enterprises (SMEs) in Malaysia. In addition, it examined the effects of IC elements on performance from the perspective of lifecycle stages. Methodology: This study employed a survey method using questionnaires. A total of 1000 questionnaires were mailed to chief executive officers (CEOs) and managers of SMEs in various industries, such as the professional, food and beverage (F&B) and engineering industries, around Klang Valley, Malaysia. Research Findings: The results of this study indicated that all elements of IC showed positive and significant effects on firm performance. The findings also revealed that the influence of human capital on business performance is stronger in the growth stage. The effects of structural capital and relational capital on business performance were not changed in different lifecycles. Theoretical Contribution: This is the first study to articulate the resource-based view (RBV) and organisational lifecycle (OLC) in SMEs' performance investigation. It proved that the relationship between IC and business performance should not be investigated at a single point of time; rather, it must be contextualised by its lifecycle. Managerial Implications in the South East Asian Context: The findings from this study may help managers of SMEs in South East Asia to identify the appropriate IC elements by stages. This study suggests that SMEs that mobilise structural and relational capital must begin from birth and continue during the growth stage until the maturity of the business, while human capital is argued to be emphasised during the growth stage. Research Limitation and Implications: This study suffers from a lack of generalisability due to a small sample size in relation to a large population of SMEs. The data were also gathered at a single timepoint, where the answers provided were based on the assessment of current employees, internal structures, external relationships and performance. The adoption of a cross-sectional design meant that the study could not capture the changes that occurred related to IC elements and firm performance. 
      PubDate: 2020-05-16
      Issue No: Vol. 14 (2020)
       
  • Intellectual Capital Performance and Firm Value: The Effect of MFRS 139

    • Authors: Abdullah Jihad Rasmi Rabaya, Norman Mohd Saleh, Noradiva Hamzah
      Abstract:  Research Aims: We examine the intellectual capital (IC) performance and its connection with firm value. We also investigate whether the adoption of an enhanced quality standard MFRS 139 that affect recognition and measurement of financial instrument's fair values, moderates the relationship between IC performance and firm value. Design/methodology/approach: We used panel data analysis of listed financial institutions' data for 2005 - 2015 period. Research Findings: A positive association between IC performance and firm value is found, proposing that IC is an important resource for firms. The results also show that MFRS 139 implementation strengthens the relationship between IC performance and firm value. This result proposes that the MFRS 139 adoption that reflects enhanced transparency could help investors in assessing firm value. Theoretical Contribution/Originality: This study introduces the effect of information asymmetry on the relation between resources (IC performance) and outcome (firm value) as described in the resources-based view. Thus far, not much is understood on the relationship between IC performance and firm value when transparency is enhanced by a new standard i.e. MFRS 139 adoption.  Managerial Implication in the South East Asian context: MFRS 139 adoption enhances managerial decision-making and control. The outcome suggests that mandatory adoption of MFRS 139 facilitates managers and investors to know the real value created by the firm and influence its share price. Research limitation & implications: The conclusion is limited to financial sector in Malaysia that experienced changes in the financial instruments standards. 
      PubDate: 2020-05-03
      Issue No: Vol. 14 (2020)
       
  • Mediating Effects of Entrepreneurs’ Work Performance on the Relationship
           between Their Psychological Capital and Growth Intentions: A Study on
           Malaysian Entrepreneurs

    • Authors: Sh. Usman Yousaf, Mohd Hizam Hanafiyah, Rosmah Mat Isa, Nor Liza Abdullah, Zizah Che Senik, Bushra Usman
      Abstract: Research Aims: This study proposes to fill the gap in entreprenuership literature by focusing on the relationship between entrepreneurs' psychological capital and growth intention mediated by their work performance. Design/methodology/approach: This research used cross-sectional quantitative research and employed convenience sampling technique. A total of 275 Small and Medium Entreprise (SME) entrepreneurs participated and answered the survey questionnaires. Research Findings: The findings confirmed the direct relationships between psychological capital and work performance; and psychological capital and growth intention of entrepreneurs. However, this study found no mediating effect of work performance in the relationship between psychological capital and growth intention of the entreprenuers.   Theoretical Contribution/Originality: This study enhanced the understanding on the importance of psychological capital as influential psychological resource for entrepreneurs as it has positive effects on attitudes  and their work performance. These findings advocate the inclusion of psychological capital in entrepreneurial studies as important resource for work performance improvement and positive attitudes.    Managerial Implication in the South East Asian context: The government and SMEs supporting agencies need to give attention to psychological capital in their entrepreneurship development policy and programmes. Further, universities and training providers should also focus on psychological capital resources in entrepreneurial education and training modules. Research limitation & implications:  This study  is  confined to Malaysian SME entrepreneurs only and uses convenient sampling technique. Therefore, generalization of the findings  is limited. Future research can investigate the related variables in different countries and contexts to examine the importance of psychological capital in entrepreneurial setting.
      PubDate: 2020-05-02
      Issue No: Vol. 14 (2020)
       
  • Importance of Employee Participation in Lean Thinking and Their Competency
           Towards Employee Innovative Behaviour

    • Authors: Roshayati binti Abdul Hamid, Md Daud bin Ismail, Ida Rosnita binti Ismail
      Abstract: Research Aims: The process of innovation is complex and involved various stage which required employees to have an innovative behaviour. Underpinned by social exchange theory, this study examines how employee participation in Lean Thinking influence the employees' innovative behaviour. We also examine the possibility that competency moderates this relationship. Design/methodology/approach: Measurements from previous studies were adapted in developing the questionnaire and data were analysed using the Partial Least Squares (PLS) approach. Research Findings: The results showed that there is a positive relationship between employee participation in Lean Thinking and employee innovative behaviour, and a positive relationship between employee competency and employee innovative behaviour. However, employee competency does not moderate the relationship between employee participation in Lean Thinking and employee innovative behaviour. Theoretical Contribution/Originality: This study enhanced the social exchange theory by proving that employees are motivated to perform more than their duties and results into innovative behaviour when they are encouraging to participate in Lean Thinking. Managerial Implication in the South East Asian context: Managers should keep encouraging employee to participate in Lean Thinking and give empowerment for decision making which could engender employee innovative behaviour. Research limitation & implications:  The main limitation is the insignificant moderating effect of employee competency. Therefore, we recommend that researchers use psychological variables such as psychological empowerment and psychological ownership.
      PubDate: 2020-05-01
      Issue No: Vol. 14 (2020)
       
  • Religion, Attitude, and Entrepreneurship Intention in Indonesia

    • Authors: Liyu Adhi Kasari Sulung, Kirana Rukmayuninda Ririh, Niken Iwani Surya Putri, Muhammad Miqdad Robbani
      Abstract: Research Aims: The present research investigates the relationships among behavioural belief, attitude toward entrepreneurship, religiosity, and entrepreneurial intention in Indonesia.   Design/methodology/approach: We use a structural equation model supported by LISREL 8.80 to analyse a sample of 146 owners of micro and small enterprises.   Research Findings: We found new results to add to the entrepreneurship literature regarding the relationship between religiosity and entrepreneurship. Although religiosity has been mostly discussed in previous research as a moderator, this study found that religiosity also has a strong direct relationship to entrepreneurial intention. Further, most of the independent variables also show a significant influence on entrepreneurial intention.   Theoretical Contribution/Originality: Based on our result, this paper found that religiosity has a strong direct relationship to entrepreneurial intention. Our paper is also the first to aggregate behavioral beliefs through multiple religious points of view regarding entrepreneurial intention.   Managerial Implication in the South East Asian context: The result can be applied to enhance entrepreneurship in South East Asian countries   Research limitation & implications:  The result has implications for entrepreneurship education, business practitioners, and policy makers to strengthen entrepreneurial intention. Furthermore, since affective attitude and instrumental attitude involve a reciprocal process over a long period, this study recommends that future research should apply longitudinal study.  
      PubDate: 2020-04-30
      Issue No: Vol. 14 (2020)
       
 
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