Industry Forward and Technology Transformation in Business and Entrepreneurship: Proceedings of the International Conference on Entrepreneurship, Business and Technology (InCEBT) 2022 9819923360, 9789819923366
This book, bringing together selected papers from the 10th International Conference on Entrepreneurship, Business and Te
138 97 19MB
English Pages 911 [878] Year 2023
Acknowledgements
Contents
Editor and Contributors
Entrepreneurship and Business Transformation for Forward Industry
Customer Requirements for Effective Packaging in the Food Supply Chain
1 Introduction
2 Literature Review
2.1 Types of Customer Requirements
2.2 Important Tools for Effective Packaging
2.3 Relationship Between Customer Requirements and Effective Packaging
2.4 Conceptual Framework
3 Methodology
3.1 Research Design
3.2 Sample Size
3.3 Instrument
3.4 Plan for Data Collection
3.5 Plan for Data Analysis
4 Result and Data Analysis
4.1 Demographic Profile
4.2 Descriptive Analysis
4.3 Reliability Analysis
4.4 Normality Analysis
4.5 Correlation
4.6 Multiple Regression
5 Discussion
5.1 Key Finding
5.2 Hypothesis
6 Recommendations and Conclusion
References
Exploring the Digital Transformation Governance Model for Industrial Eco-Innovation Post-COVID-19
1 Introduction
2 Literature Review
2.1 Industrial Innovation Ecosystems
2.2 Digital Transformation of Industrial Innovation Ecosystems
2.3 Governance Dilemma
2.4 Experimental Governance
3 Methods
4 Discussion
4.1 Interpretation of the Components of Digital Transformation Governance Model
4.2 Progressive Governance Process of “Subject-Mechanism-Niche” Integration and Its Mechanism of Action
5 Results
6 Theoretical and Practical Implications
7 Limitation and Expectation
References
Factors Influencing Technopreneurs’ Adoption of Islamic Banking Products
1 Introduction
2 Literature Review
2.1 Awareness Towards Islamic Banking Products
2.2 Customer Preference Towards Islamic Banking Products
2.3 Adoption of Islamic Banking Products
2.4 The Distinction Between Islamic Banking and Conventional Banking Products
3 Research Methodology
4 Findings and Discussion
5 Conclusion
References
Practices of Hibah (Inter Vivos Gift) Among Technopreneurs in Kelantan
1 Introduction
2 Literature Review
2.1 The Concept of Hibah
2.2 Formation of Hibah
2.3 Types of Hibah
2.4 The Revocation of Hibah
2.5 Practice of Hibah
3 Methodology
4 Findings and Discussion
5 Conclusion
References
Influence of Entrepreneurial Leadership on Successful Indian Entrepreneurs in K-Link International Sdn. Bhd.
1 Introduction
2 Literature Review
2.1 The Concept of Leadership
2.2 The Concept of Entrepreneurship
2.3 The Concept of Entrepreneurial Leadership
3 Methodology
4 Findings and Discussion
5 Conclusion
References
Measuring the Influence of Celebrity Endorsement on Customer Purchase Intention Using TEARS Model
1 Introduction
2 Literature Review
2.1 Concept of Celebrity Endorsement
2.2 TEARS Model
2.3 Purchase Intention
2.4 Research Framework
3 Methodology
4 Analysis
5 Findings and Conclusion
References
Use of ICT Towards Women’s Business Performance: The Case of SMEs in Padang City of Indonesia
1 Introduction
2 Literature Review
2.1 Information Communication Technology (ICT) in SMEs
2.2 Business Performance of Women SMEs
2.3 The Effect of Using ICT on the Business Performance of Women SMEs
3 Method
4 Result and Discussion
5 Conclusions
References
Managing Information System Resources in Agribusiness
1 Introduction and Background
1.1 Problem Statement
1.2 Purpose of Research and Research Question
2 Literature Review
2.1 Information Systems (IS)
2.2 Accounting Information Systems (AIS)
2.3 Infrastructure
2.4 People
2.5 Organisation
2.6 Sustained Competitive Advantage in Agribusiness
3 Theoretical Overview
3.1 Resource-Based View (RBV) Theory
3.2 Resource Management Model (RM)
4 Conceptual Model Development
5 Conclusion
References
Role of Religious Elements in Digital Well-Being for Muslims
1 Introduction
2 Literature Review
2.1 Digital Wellbeing
2.2 Religious Elements for Digital Wellbeing
3 Islāmic Elements for Digital Wellbeing
4 Conclusion
References
Islamic Banks and Their Zakat Distribution Practices
1 Introduction
2 Methodology
3 Zakat Distribution Practices by Islamic Banks
3.1 Theme 1: Self-Distribution
3.2 Theme 2: Payment Made to a Zakat Authority
3.3 Theme 3: Both Methods
3.4 Theme 4: Wakalah Zakat
4 Discussion
5 Conclusion and Recommendation
References
Role of Leadership Style as a Mediator on the Relationship Between Workplace Conditions on Job Stress Among Hotel Administrative Staff in Klang Valley
1 Introduction
1.1 The Hospitality and Hotel Industries
1.2 Heavy Workload and Job Stress
1.3 Lack of Recognition and Job Stress
1.4 Lack of Opportunity to Grow and Job Stress
1.5 Leadership and Job Stress
2 Research Methodology
3 Findings
3.1 Convergent Validity Analysis
3.2 Factor Loading Analysis
3.3 Correlation Analysis
3.4 Mediation Analysis
4 Discussion and Conclusion
4.1 Discussion on Findings of the Study
5 Conclusion
References
A Survey on Community Felda Residents’ Preferences for Purchasing Family Takaful
1 Introduction
2 Literature Review
2.1 Intentions
2.2 Attitudes
2.3 Knowledge
2.4 Trust
2.5 Religiosity
3 Methodology
4 Result
4.1 Reability Analysis
4.2 Descriptive Analysis
4.3 Correlation Analysis
4.4 t-Test
5 Discussion
6 Conclusion
References
Sustaining Commodity Technology Practise: Persuasive Packaging Approach for Fermented Dried Salted Fish of Ikan Bekok
1 Introduction
1.1 Future Sustainability
2 Literature Review
2.1 Food Preservation Approach and Technology Properties Involved in Post-Harvest Handling of Catch
2.2 The Packaging
3 Methodology
4 Analysis and Results
4.1 Packaging of Ikey Bekok Tumpat
4.2 Brand of Ikey Bekok, Tumpat
5 Conclusion
References
Testing the Predictive Power of Machine Learning Algorithms for Stock Market Movements Based on Air Pollution Data
1 Introduction
2 Literature Review
3 Data and Methodology
3.1 Types of Machine Learning Models
4 Result and Discussion
5 Conclusion
References
Development of a Waqf Capital Reporting Index (WCRI) for Online Waqf Disclosure
1 Introduction
2 Literature Review
2.1 Overview of Waqf Reporting in Malaysia
2.2 Online Disclosure and Public Accountability
2.3 Need for a Waqf Capital Reporting Index (WCRI)
3 Development of the Waqf Capital Reporting Index
3.1 Step 1: Identification of Disclosure Items and Classifying the Items Into Sub-capital
3.2 Step 2: Classification of Capital
3.3 Step 3: Expert-Driven Assessment of the Validity
4 Conclusion
References
Successful Factors of Online Business in Fashion Industry
1 Introduction
2 Objectives of the Study
3 Literature Review
3.1 Successful Online Business
3.2 Online Trust
3.3 Website Quality and Content
3.4 Brand Awareness
4 Research Framework
5 Research Methodology and Findings
5.1 Findings
6 Conclusion
References
The Mediation Effect of Consumer Behaviour on the Relationship Between COVID-19 and E-Business in Malaysia
1 Introduction
2 Literature Review
2.1 E-Commerce Trends and Practices in Malaysia
2.2 COVID-19 and the Application of E-Business
2.3 Consumer Buying Behaviour Pattern and Application of E-Business
2.4 Conceptual Framework
2.5 Research Hypothesis
3 Theoretical Background
4 Methodology
4.1 Research Design
4.2 Sampling Technique
4.3 Pilot Test
4.4 Instrument
5 Data Analysis
5.1 Descriptive Statistics
5.2 Multiple Linear Regression
6 Discussion
7 Conclusion and Recommendation
References
Brand Equity Versus e-Brand Equity: The Evolution of Brand Equity Dimensions
1 Introduction
2 Continuum of e-Brand equity
2.1 Definition of Brand
2.2 Definition of Brand Equity
2.3 Definition of E-Brand Equity
2.4 e-Brand Equity Model by Past Researchers
3 Discussion of Brand Equity and e-Brand Equity Dimensions
4 Impact of e-Brand Equity Towards Company Performance
5 Conclusion
References
Accounting Via Accountability Influences the Reconstruction of Capital Accumulation: A Qualitative Study of Muslim Family Business
1 Introduction
2 Literature Review
2.1 Concept of Accountability
2.2 Types of Capital
3 Methodology
4 Influence of Accountability in Capital
5 Different Uses of Capital in Capital Accumulation
6 Religion Influences the Reconstruction of Capital Accumulation
7 Conclusion and Future Research
References
Cyberpreneurship: Digitalisation of Business
1 Introduction
2 Literature Review
2.1 Digitisation, Digitalisation, and Digital Transformation
2.2 The Revolution of Digitalisation
2.3 Theory and Model of Technology Adoption
3 Methodology
4 Discussion: Cyberpreneurship Versus Digitalisation of Business
5 Conclusion and Recommendation
References
Adoption of Islamic Financing Among Halal Entrepreneurs Based on the Maqasid Sharia Framework
1 Introduction
2 Literature Review
2.1 Definition of Halal
2.2 Concept of Islamic Finance
2.3 Overview of Maqasid Sharia
2.4 Principles of Maqasid Sharia
2.5 Literature Review on Maqasid Sharia
3 Research Methodology
3.1 Research Approach
3.2 Data Collection and Sampling
3.3 Research Instrument
3.4 Data Analysis
4 Findings and Analysis
4.1 Preservation of Faith
4.2 Preservation of Life
4.3 Preservation of Intellect
4.4 Preservation of Posterity
4.5 Preservation of Wealth
5 Discussion
6 Conclusion
References
Female Entrepreneurs’ Empowerment Model
1 Introduction
2 Literature Review
3 Methodology
4 Study Findings and Discussions
4.1 Kelantan Women Entrepreneur Propulsion Factors
4.2 Kelantan Female Entrepreneurs’ Success Factor
5 Conclusion
References
Investigating the Trends and Future Research of SMEs in the Era of COVID-19: Perceptions from Bibliometric Analysis
1 Introduction
2 Introduction
2.1 Data Collection and Analysis Method
3 Results
3.1 Number of Articles Published
3.2 Analysis of Research Areas
3.3 Most Dominant Journals with the Highest Number of Publications
3.4 Analysis of Most Dominant Countries or Regions
3.5 Most Dominant Authors Who Contributed to the WoS
3.6 Analysis of Most Cited Articles
3.7 Analysis of Author Keywords
4 Conclusion
References
Linking the Relationships Between Perceived Value and Destination Loyalty in Langkawi Island: Mediating Role of Place Attachment and Tourist Satisfaction
1 Introduction
2 Literature Review
2.1 Digital Marketing
2.2 Destination Loyalty
2.3 Perceived Value
2.4 Place Attachment
2.5 Tourist Satisfaction
3 Research Methodology
4 Conclusion
References
Assessment of Structural Equation Modelling Between Safety Attitudes, Personal Protective Equipment, Co-Worker Support with Occupational Safety and Health (OSH) Compliance Among Firefighters: A Case Study in East Coast Fire and Rescue Department of Malaysia (ECFRDM)
1 Introduction
2 Literature Review
2.1 OSH Compliance in Fire Service
2.2 Relationship Between Safety Attitudes with OSH Compliance
2.3 Relationship Between Personal Protection Equipment with OSH Compliance
2.4 Relationship Between Co-Worker Support with OSH Compliance
3 Methodology
3.1 Instrument and Measurement
3.2 Data Analysis
4 Results and Discussion
4.1 Demography of Respondents
4.2 Convergent Validity
4.3 Discriminant Validity
4.4 Collinearity Assessment
4.5 Assessment of the Structural Model
5 Conclusion
References
Effect of Information Technology to Resources and Operational Performance in Logistics Service Provider (LSP)
1 Introduction
2 Literature Review
3 Methodology
4 Results and Analysis
4.1 Demographic Profile
4.2 Measurement Model
4.3 Structural Model Analysis
5 Conclusion
References
Adoption of Technologies and Innovations for Sustainable Rice-Paddy Farming in Kelantan
1 Introduction
2 Literature Review
3 Methodology
4 Results and Analysis
4.1 Demographic Profile
4.2 Measurement Model
4.3 Structural Model Analysis
5 Discussion and Conclusion
References
The Important of Digital Payment on Tax Compliance Behavior of Assessment Tax: Case of Tumpat District Council
1 Introduction
2 Literature Review
3 Methodology
4 Results and Analysis
4.1 Demographic Profile
4.2 Measurement Model
4.3 Structural Model Analysis
5 Conclusion
References
Technology in Food Production Affecting the Demand for Smoked Food Purchases in Malaysia
1 Introduction
2 Literature Review
3 Methodology
4 Results and Analysis
4.1 Demographic Profile
4.2 Measurement Model
4.3 Structural Model Analysis
5 Conclusion
References
Work-Related ICT Use Outside Work Hours and Work-Family Balance: Mediating Effect of Work-Family Conflict and Moderating Effect of Integration Preference
1 Introduction
2 Literature Review
2.1 Work-Family Balance (WFB)
2.2 Work-Family Conflict (WFC)
2.3 Work-Family Conflict (WFC) and Work-Family Balance (WFB)
2.4 Work-Family Conflict (WFC) as a Mediator
2.5 Integration Preference as a Moderator
3 Method
3.1 Procedure and Participants
3.2 Measures
4 Findings
4.1 Inference Statistics
4.2 Hypotheses Testing
5 Discussion of the Findings
5.1 Practical Implications
5.2 Limitations and Future Research
6 Conclusion
References
Live Streaming Commerce: A Systematic Review and Implication for Future Research
1 Introduction
2 Background
3 Research Methodology
4 Short Descriptive Analysis
5 Discussion
5.1 Live Streaming Commerce and Consumer Behaviour
5.2 Operational Issue in Live Streaming Commerce
5.3 Streamer and Live Streaming Commerce
6 Future Research Directions and Conclusion
References
Impact of Elements of Accounting Information Systems on Sustainability of Microfinance Institutions in Ghana: A Conceptual Perspective
1 Introduction
2 Accounting Information System Concept
2.1 Software Element
2.2 Hardware Element
2.3 Data Element
2.4 People Element
2.5 Procedure Element
2.6 Internal Control Element
3 Microfinance Concept
3.1 Overview of Microfinance in Ghana
3.2 Microfinance Activities or Operations
4 Sustainability of Microfinance Institutions
4.1 Economic Dimension
4.2 Environmental Dimension
4.3 Social Dimension
5 Conceptual Framework
6 Research Methodology
7 Conclusion
References
Refining Pawah System Using Mudarabah Concept
1 Introduction
2 Research Method
3 Results and Discussion
3.1 Similarity Between Pawah System and Mudarabah Concept
3.2 Reintroduce Mudarabah Concept in the Pawah Systems
3.3 The Implications and Recommendations of Pawah System Using Mudarabah Concepts
4 Conclusion
References
Determinant Variables Behind Speed Limit Management, Driving Licensing Mechanism Improvement, and Automotive Sales’ Promotion Based on Braking Performance
1 Introduction
2 Study Design (Method)
3 Result and Discussion
3.1 Reaction and Braking Distance Characteristics
3.2 Accident Risk
3.3 Resume
4 Conclusion
References
Mapping Sustainability Risk of Sarong Supply Chain: Evidence from SMEs Industrial Cluster in Indonesia
1 Introduction
2 Material and Method
3 Results and Discussion
3.1 Sarong Supply Chain Configuration
3.2 Risk Events and Risk Agent Identification
3.3 Supply Chain Risk Identification System
3.4 Discussion
4 Conclusion and Future Works
References
Audience Value of Social Media Influencers
1 Introduction
2 Literature Review
2.1 SMI Characterisations
2.2 Consumer Value
3 Research Methodology
4 Results and Discussions
4.1 Conditional Value (CV)
4.2 Emotional Value (EV)
4.3 Aesthetic Value (AV)
4.4 Epistemic Value (EPV)
4.5 Social Value (SV)
4.6 Functional Value (FV)
5 Theoretical and Practical Implications
6 Conclusion
References
Herb-Based Products and Entrepreneurship During the COVID-19 Crisis: A Systematic Literature Review and Research Agenda
1 Introduction
2 Theoretical Background
3 Methodological Approach
4 Analysis and Findings
4.1 Impact of COVID-19 on Herb-Based Products Entrepreneurship
4.2 Role of Government Measures and Support Towards Herb-Based Products Entrepreneurship
4.3 Shift of Herb-Based Products Entrepreneurship Towards Digitisation, Innovative Ideas and New Market Solutions
5 Conclusion
References
Mediation Impact of Socio-Technical Lean Implementation on Critical Success Factor and Service Quality Performance
1 Background
2 Problem Statement
3 Research Objectives
4 Research Questions
5 Literature Review
5.1 Leadership
5.2 Organisational Culture
5.3 Financial Capability
5.4 Lean Implementation
5.5 Service Quality Performance
6 Conceptual Framework
7 Proposed Research Methodology
8 Conclusion
References
Malaysia Health Tourism SME’s Innovation Performance in the Relationship with Innovation Capability and Competency
1 Introduction
2 Literature Review
2.1 Innovation Performance in the Malaysian Health Tourism Industry
2.2 Innovation Competency
2.3 Innovation Capability
3 Methodological Approach
4 Analysis and Findings
4.1 Analysis with SmartPLS
4.2 Path Coefficient
5 Discussion
6 Conclusion
References
Digital Economy: Improving Logistics Performance in Asian Countries
1 Introduction
2 Literature Review
3 Methodology
4 Results and Discussion
5 Conclusion
References
Systematic Mapping Study and Literature Review on Organisational Agility
1 Introduction
2 Organisational Agility
2.1 Agility Drivers
2.2 Agility Enablers
2.3 Agility Capabilities
2.4 Agility Dimensions
2.5 Agility Maturity
3 Methods
3.1 Selection of Database and Data Collection Process
3.2 Inclusion and Exclusion Criteria
4 Results and Discussions
4.1 Research Publication Trend
4.2 Geographical Contribution
4.3 Research Subject Area
4.4 Research Cluster and Polarisation
4.5 Detail Literature Review Mapping
5 Conclusions
Appendix A
References
Role of Finance in Moderating Technology, Innovation, and Engineering Effect on Economic Growth in Malaysia
1 Introduction
2 Literature Review
3 Methodology
4 Result and Discussion
5 Conclusion and Recommendations
References
A Bibliometric Analysis of Social Media Influencers Studies: What Does the Future Hold for Businesses During and After COVID-19?
1 Introduction
2 Literature Review
2.1 Social Media Growth
2.2 Social Media Influencers’ Impact Towards a Person’s Behaviour
3 Methodology
4 Results
4.1 Publication Trends in Social Media Influencers Studies
4.2 Journal and Research Areas Analysis
4.3 Citation Analysis (Most Cited Social Media Influencer Articles)
4.4 Keyword Analysis (Co-occurrence)
4.5 Discussion
5 Conclusion
References
Salient Beliefs Elicitation on Intention to Consume Halal Products Amongst Muslim Urban Millennials (MUMs): The Way Forward for Sustainability in the Halal Industry
1 Introduction
2 Literature Review
2.1 Integrative Model of Behavioural Prediction (IMBP)
3 Methodology
3.1 Procedure and Participants
3.2 Measure
3.3 Analysis
3.4 Results
4 Discussion
5 Conclusion
References
Measuring the Reliability of the Sustainable Performance Instrument in ISO 14001-Certified Manufacturing Firms in Malaysia
1 Introduction
2 Reliability of Research Instrument
3 Pilot Test
4 Findings and Analysis—Reliability of Research Instruments
5 Conclusion
References
“Tok Peraih”—The Myth of Entrepreneurial Leadership Among Malay Women in the East Coast of Peninsular Malaysia
1 Background of the Study
2 The Meaning of Tok Peraih
3 Contextual Leadership Upon Women Entrepreneurs
4 Research Design-Qualitative Study
5 Exploring the Myth and Answer
6 Conclusion
References
Asiatic Clam (Etak) in Cambodia: An Exploratory Study of Social Economy and Business Activities
1 Introduction
2 Cambodia, the Chams and Asiatic Clam (Etak) in Brief
3 Research Method—Exploratory Study Through Field Observation
4 The Exploration of Its Findings
5 Conclusion
References
Pathways Towards Sustainability: Mediating Role of Green Human Resources Management Practices on the Relationship Between Green Intellectual Capital and Sustainable Performance Among ISO 14001 Certified Manufacturers
1 Introduction
2 Research Model and Theoretical Foundations
3 Hypotheses Development: Green Intellectual Capital and Sustainable Performance
4 Hypotheses Development: Green Intellectual Capital and Green Human Resource Management Practices
5 Hypotheses Development: Green Human Resource Management Practices and Sustainable Performance
6 Hypotheses Development: Mediating Role of GHRM Practices on the Relationship Between Green Intellectual Capital and Sustainable Performance
7 Research Methodology
7.1 Target Population and Sample Size
7.2 Data Analysis
7.3 Company Background
7.4 Measurement Model
7.5 Discriminant Validity
7.6 Structural Model and Direct Effects
7.7 Structural Model and Indirect Effects
8 Research Findings and Discussion
9 Research Implications
10 Limitations and Recommendations for Future Research
11 Conclusion
References
Study on the Socio-Demographics of Online Food Delivery: Foodpanda Customers and Its Association with the Frequency and Spending Patterns
1 Introduction
1.1 Foodpanda: Online Food Delivery
1.2 Frequency of Using Foodpanda: Online Food Delivery
1.3 Spending Pattern of Foodpanda Customer
2 Methodology
2.1 Socio-Demographic of Foodpanda Customer
2.2 Spending Patterns of Foodpanda Customers
2.3 Association Between Socio-Demographics and Frequency of Using Foodpanda
2.4 The Association Between the Socio-Demographics and the Amount of Money Spent on Foodpanda
3 Main Findings
4 Limitations
5 Recommendations for Further Study
References
Development of a Causality Least Association Rules Algorithm Tool Using Rational Unified Process Methodology
1 Introduction
2 Related Works
3 Basic Concepts and Terminology
3.1 Association Rules
3.2 Apriori Algorithm
3.3 Bayesian Network
3.4 Least Association Rules
4 Methodology
4.1 Inception Phase
4.2 Elaboration Phase
4.3 Construction Phase
4.4 Transition Phase
5 Results and Discussion
6 Conclusion
References
Exploring the Contents of Macro-Influencers’ Instagram
1 Introduction
2 Related Works
2.1 Parasocial Relationship
2.2 Types of Content
2.3 Formats of Content
2.4 Parasocial Interaction Theory
3 Methodology
3.1 Research Design
3.2 Sample and Duration
3.3 Measurement and Instruments
3.4 Data Collection
3.5 Validity and Reliability
3.6 Data Analysis
4 Result and Discussion
4.1 Research Design
5 Conclusion
References
Big Data Analytics Capability and Firm Performance in Retailing: A Systematic Review
1 Introduction
2 Research Methodology
3 Results and Findings
4 Big Data Analytics Capability
5 Firm Performance and Big Data Analytics Capabilities
6 Discussions
7 Conclusion
References
The Impetus for Embracing Cyber Entrepreneurship Intention Among Small Businesses
1 Introduction
2 Literature Review
2.1 Cyber Entrepreneurship
2.2 Unified Theory of Acceptance and Use of Technology (UTAUT2)
3 Methodology
4 Result and Discussion
4.1 Descriptive Analysis
4.2 Validity, Reliability, and Normality Analyses
4.3 Multiple Linear Regression Analysis
5 Conclusion
References
Factors Affecting Online Cash Waqf Adoption Among Muslim Donors in Kelantan
1 Introduction
2 Literature Review
2.1 Adoption of Online Cash Waqf
2.2 Perceived Usefulness
2.3 Perceived Ease of Use
2.4 Perceived Religiosity
2.5 Amount of Information
3 Methodology
4 Results
4.1 Respondents’ Profile
4.2 Reliability Analysis
4.3 Hypothesis Testing and Correlation Analysis
5 Conclusion
References
A Systematic Review of the Literature on Financial Well-Being of SMEs’ Owners
1 Introduction
2 Literature Review
2.1 Financial Well-Being
2.2 Financial Well-Being and SMEs
3 Review Methods
3.1 Review Protocol
3.2 Inclusion and Exclusion Criteria
3.3 Search Strategy
4 Study Selection Process
5 Findings
6 Conclusion
References
Role of Engineering Technology on Logistic Performance in Promoting Economic Growth in Asian Countries
1 Introduction
2 Literature Review
3 Methodology
3.1 Model Specification
3.2 Data Description and Econometric Analysis
4 Results and Discussion
5 Conclusion
References
Transformation and Innovation in Education for Forward Industry
Effects of Digital Financial Literacy Towards Online Buying Behaviours Among Students During COVID-19 Pandemic
1 Introduction
2 Literature Review
2.1 Digital Financial Literacy
2.2 Financial Education
2.3 Digital and Financial Socialisation
2.4 Financial Attitude
3 Methodology
3.1 Research Design and Conceptual Framework
3.2 Sampling Technique and Sample Size
3.3 Instrumentation
3.4 Reliability, Validity and Data Analysis
4 Findings
5 Conclusion and Recommendation
References
Entrepreneurship Education Through Three-Dimensional Virtual Reality Technology in Learning
1 Introduction
1.1 Entrepreneurship Education Using Technology
2 Entrepreneurship Education and Virtual Reality
3 Methodology
3.1 Theoretical Investigation Phase
3.2 Implementation Phase
3.3 Testing Phase
3.4 Evaluation Phase
4 Result and Discussion
4.1 Design of Virtual Reality Application for Entrepreneur Education
4.2 Usability Testing
4.3 Discussion
5 Conclusion
References
Awareness of Islamic Financial Planning Among Science and Technology Students in Higher Learning Institutions
1 Introduction
2 Literature Review
2.1 Concept of Islamic Financial Planning
2.2 Knowledge of Islamic Financial Planning
2.3 Islamic Financial Literacy
2.4 Awareness of Islamic Financial Literacy
2.5 Research Framework
3 Methodology
3.1 Research Design
3.2 Data Collection Method
3.3 Data Analysis Method
4 Findings and Discussion
4.1 Awareness
4.2 Understanding
4.3 Knowledge
5 Conclusion
References
Technology Entrepreneurship and Commercialisation of Computing Artefacts in University Incubator Programme
1 Introduction
1.1 Resource-Based Theory and Capabilities in University Incubators
1.2 Academics and Entrepreneurship
1.3 Gaps in the Literature—“Valley of Deaths”
2 Research Aim
2.1 Research Question
3 Methodology
3.1 Data Collection Method
3.2 Data Analysis
4 Findings
5 Conclusion
5.1 “Valley of Death”
5.2 Issues and Hindrance
References
Implementing Entrepreneurship Education in Chinese Higher Education Institutions: A Review
1 Introduction
2 Origin of China’s Entrepreneurship Education
3 Developmental Stages of EE in China
3.1 Beginning Stage
3.2 Exploration Stage
3.3 Transformation Stage
3.4 Rapid Development Stage
4 Practical Problems of Implementing EE in HEIs
4.1 Misunderstanding of Entrepreneurship Education
4.2 Incomplete Entrepreneurship Curriculum System
4.3 Insufficient Teachers for Entrepreneurship Education
4.4 Unsynergetic Entrepreneurial Environment
5 Conclusions
References
Exploring the Implementation of Fintech Through Crowdfunding and an Appropriate Crowdfunding Model for Student Entrepreneurs
1 Introduction
2 Literature Review
3 Methodology
4 Findings
5 Discussion
6 Conclusion
References
Digital Wellbeing: Does It Matter in Malaysian Education?
1 Introduction
2 Literature Review
2.1 Digital Wellbeing
2.2 Malaysia Digital Economy Blueprint (MyDIGITAL)
2.3 Digital Education Policy in Malaysian Education Systems
2.4 Benefits of Digital Technology in Education
2.5 Abuse, Misuse, and Overuse of Digital Technology in Education
3 Further Contributions
4 Conclusion
References
University Entrepreneurship Education Strategies and Entrepreneurial Motivation: A Case Study in a Malaysian Private University
1 Introduction
2 Literature Review
2.1 Entrepreneurship Education in Malaysia
2.2 Entrepreneurship Motivation
2.3 Theoretical Foundation
3 Methodology
4 Findings
4.1 University Entrepreneurship Education Strategies
4.2 Entrepreneurship Education Strategies and Entrepreneurial Motivation
5 Summary
References
Intention to Use Cashless Financial Transactions Among University Students
1 Introduction
1.1 Cashless Financial Transactions
2 Literature Review
2.1 Technology Acceptance Model
2.2 Factors Influencing the Intention to Use Cashless or Other Digital Payment
3 Methodology
3.1 Data Collection
3.2 Research Questionnaire Design
3.3 Statistical Technique
4 Results and Discussion
4.1 Descriptive Statistics of Variables
4.2 Multiple Linear Regression Analysis
5 Conclusion
References
Teachers’ Readiness Towards Digital Adoption in Teaching Towards Society 5.0
1 Introduction
2 Literature Review
3 Research Framework
4 Methodological Approach
5 Analysis and Findings
5.1 Validity and Reliability Tests
5.2 Analysis with SmartPLS
5.3 Path Coefficient
6 Discussion and Conclusion
References
PEERS: A Digital Entrepreneurship Experiential Teaching and Learning Process
1 Introduction
2 Literature Review
2.1 Digital Entrepreneurship Education
2.2 Entrepreneurship Education Delivery
2.3 Fundamentals of Entrepreneurial Acculturation (FEA) Course
2.4 Conceptual Framework: PEERS
3 Research Methodology
4 Results
4.1 Study One
4.2 Study Two
4.3 Study Three
5 Discussion
6 Implications for Theory and Practice
References
Technology and Innovation Adoption in Higher Education: A Study on Acceptance of Micro-credentials Learning Concept
1 Introduction
1.1 Overview of Micro-credential
2 Literature Review
3 Research Methodology
4 Results and Analysis
4.1 Demographic Profile
4.2 Measurement Model
4.3 Structural Model Analysis
5 Conclusion
References
Macroeconomic Learning Through Innovative Pedagogy and Technology: A Study on the Effectiveness of Blended Learning
1 Introduction
2 Literature Review
3 Methodology
4 Results and Discussion
4.1 Respondent Profile
4.2 Assessment of the Measurement Model
4.3 Structural Model
5 Conclusion and Recommendation
References
Intention to Gig Work Among GiGen (Graduating iGeneration): A Proposed Conceptual Framework From Elicitation Survey
1 Introduction
2 Literature Review
2.1 Salient Beliefs Elicitation in the Integrative Model of Behavioural Prediction Theory
3 Methodology
4 Results
4.1 Profile of the Respondents
4.2 Responses
4.3 Salient Outcome Beliefs
4.4 Normative Beliefs
4.5 Efficacy Beliefs
5 Discussion
6 Conclusion
References
Energy Efficiency by Using Solar Panels in a University Campus: UMK City Campus
1 Introduction
2 Materials and Method
2.1 Photovaltaic (PV) System Design
3 Cost–Benefit Analysis
4 Results
5 Discussion
6 Conclusion
References
Factors of Cyberpreneurship Intention Among Undergraduate Students
1 Introduction
2 Related Works
2.1 Independent Variables
2.2 Dependent Variable
2.3 Research Hypothesis
3 Methodology
3.1 Research Design
3.2 Research Population
3.3 Sampling Technique
3.4 Data Collection Method
3.5 Measurement of the Variables
3.6 Data Analysis Procedures
4 Findings
4.1 Respondents’ Demographic Profile
4.2 Convergent Validity
4.3 Discriminant Validity
4.4 Research Hypothesis
5 Discussion and Recommendation
6 Conclusion
References
Knowledge, Attitude, Performance, and Intention of UMK Students in Choosing Online Learning During COVID-19 Pandemic
1 Introduction
2 Related Works
2.1 Social Norms
2.2 Social Identity Theory
2.3 Discussion on Variables
3 Methodology
3.1 Research Design
3.2 Study Population
3.3 Sampling Techniques
3.4 Research Instrument
3.5 Data Analysis
4 Data Analysis and Findings
4.1 Respondent Demographic Profile
4.2 Descriptive Analysis
4.3 Convergent Validity
4.4 Discriminant Validity
4.5 Path Analysis
4.6 Hypothesis of Path Model
5 Discussion and Recommendation
6 Conclusion
References
ADDIE Model and Its Role in Developing an E-Portfolio for Teaching and Learning Islamic Banking and Finance Courses in Higher Education Institutions
1 Introduction
2 Literature Review
2.1 Reviews of Past Studies on e-Portfolio
2.2 Instructional Design
3 Research Conceptual Framework
4 Discussions
5 Conclusion
References
A New Breath in Learning Islamic Finance Course During COVID-19 Pandemic
1 Introduction
2 Literature Review
2.1 Advantages of Web-Based or Online Quizzes
2.2 Quizizz Platform: Web-Based or Online Quiz Tool
3 Methodology
4 Findings and Discussions
4.1 Respondents’ Demography
4.2 Data Analysis
5 Conclusion
References
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Mohd Nor Hakimin Yusoff Editor
Industry Forward and Technology Transformation in Business and Entrepreneurship Proceedings of the International Conference on Entrepreneurship, Business and Technology (InCEBT) 2022
Industry Forward and Technology Transformation in Business and Entrepreneurship
Mohd Nor Hakimin Yusoff Editor
Industry Forward and Technology Transformation in Business and Entrepreneurship Proceedings of the International Conference on Entrepreneurship, Business and Technology (InCEBT) 2022
Editor Mohd Nor Hakimin Yusoff Faculty of Entrepreneurship and Business Universiti Malaysia Kelantan Kota Bharu, Kelantan, Malaysia
ISBN 978-981-99-2336-6 ISBN 978-981-99-2337-3 (eBook) https://doi.org/10.1007/978-981-99-2337-3 © The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors, and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, expressed or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. This Springer imprint is published by the registered company Springer Nature Singapore Pte Ltd. The registered company address is: 152 Beach Road, #21-01/04 Gateway East, Singapore 189721, Singapore
Acknowledgements
The book “Industry Forward and Technology Transformation in Business and Entrepreneurship” includes a compilation of papers presented at the International Conference on Entrepreneurship, Business, and Technology (InCEBT2022), organized by the Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, on November 5–6, 2022. The conference and the subsequent book focus on the application of technology in the fields of entrepreneurship and business, highlighting the transformative role it holds. Apart from the dedicated chapter contributors, several individuals, namely Associate Prof. Ts. Dr. Zailani Abdullah, Dr. Ahmad Ridhuwan Abdullah, Dr. Mohd Zulkifli Muhammad, Dr. Nur Haiza Nordin, Dr. Nur Naddia Nordin, Dr. Siti Salwani Abdullah, Dr. Mohd Ikhwan Aziz, and Dr. Tahirah Abdullah, have tremendously contributed to the editorial process of this book, from the early phase of developmental editing, copyediting, proofreading, fact-checking and collaboration with contributors. Their unwavering commitment and contributions throughout the editorial process through thorough reviews, valuable suggestions, and diligent efforts have significantly improved the coherence and clarity of the book. Their contributions and collaborative efforts have enriched and transformed the book into a valuable resource for its intended audience. Our sincere hope is that “Industry Forward and Technology Transformation in Business and Entrepreneurship” will serve as a beacon of knowledge, inspiring and guiding future research endeavours that emphasize the potential of technology to advance entrepreneurship and business.
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Contents
Entrepreneurship and Business Transformation for Forward Industry Customer Requirements for Effective Packaging in the Food Supply Chain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Kasmaruddin Che Hussin, Arthiny Mohana Rajani, Afifah Hanim Md Pazil, Nor Aizal Akmal Rohaizad, and Syamsul Bahrin Zaibon Exploring the Digital Transformation Governance Model for Industrial Eco-Innovation Post-COVID-19 . . . . . . . . . . . . . . . . . . . . . . . Zhao Na and Li Han Factors Influencing Technopreneurs’ Adoption of Islamic Banking Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mohd Zulkifli Muhammad, Ahmad Ridhuwan Abdullah, Noormariana Mohd Din, Azwan Abdullah, Wan Farha Wan Zulkiffli, Razman Hafifi Redzuan, and Mohd Ikhwan Aziz Practices of Hibah (Inter Vivos Gift) Among Technopreneurs in Kelantan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mohd Zulkifli Muhammad, Siti Rohana Mohamad, Mohd Afifie Mohd Alwi, Yusrinadini Zahirah Md. Isa Yusuff, Siti Salwani Abdullah, Dzulkifli Mukhtar, and Md Zaki Muhamad Hasan Influence of Entrepreneurial Leadership on Successful Indian Entrepreneurs in K-Link International Sdn. Bhd. . . . . . . . . . . . . . . . . . . . . Balakrishnan Parasuraman and Shalini Raja Kapol Measuring the Influence of Celebrity Endorsement on Customer Purchase Intention Using TEARS Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . Norlina M. Ali, Siti Farrah Shahwir, Mazlina Ismail, Nur Adilah Saud, and Fattematu Addella Nafis
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Use of ICT Towards Women’s Business Performance: The Case of SMEs in Padang City of Indonesia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Fivi Anggraini, Daniati Puttri, and Neva Novianti
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Managing Information System Resources in Agribusiness . . . . . . . . . . . . . Noor Fadzlina Mohd Fadhil and Nurul Hanis Azrin Sabirin
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Role of Religious Elements in Digital Well-Being for Muslims . . . . . . . . . . A. K. Asar and Aziman Abdullah
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Islamic Banks and Their Zakat Distribution Practices . . . . . . . . . . . . . . . . . 103 Nurul Iffah M. A. Zaaba and Rusni Hassan Role of Leadership Style as a Mediator on the Relationship Between Workplace Conditions on Job Stress Among Hotel Administrative Staff in Klang Valley . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113 Ikmal Malik and Rudzi Munap A Survey on Community Felda Residents’ Preferences for Purchasing Family Takaful . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125 Hasannuddiin Hassan, Siti Rohana Mohamad, Mohd Ikhwan Aziz, and Rozana Saedon Sustaining Commodity Technology Practise: Persuasive Packaging Approach for Fermented Dried Salted Fish of Ikan Bekok . . . . . . . . . . . . . 139 Tengku Fauzan Tengku Anuar, Nurul Syahida Mat Hussin, Salini Aina Mamat, Izati Nabila Marzuki, Md. Ariff Ariffin, Wan Ahmad Amir Zal Wan Ismail, Azwan Abdullah, Nurhanan Abdul Rahman, Hafizi Mat Salleh, Siti Asma Md. Rasdi, and Ren Chen Yang Testing the Predictive Power of Machine Learning Algorithms for Stock Market Movements Based on Air Pollution Data . . . . . . . . . . . . 151 Kelvin Lee Yong Ming Development of a Waqf Capital Reporting Index (WCRI) for Online Waqf Disclosure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161 Amira Jamil, Tahirah Abdullah, Siti Afiqah Zainuddin, Siti Salwani Abdullah, Siti Rohana Mohamad, and Nur Farahiah Azmi Successful Factors of Online Business in Fashion Industry . . . . . . . . . . . . . 177 Noraishah Kamarolzaman, Hairiani Abdul Hamid, Rohani Jangga, and Zurina Omar The Mediation Effect of Consumer Behaviour on the Relationship Between COVID-19 and E-Business in Malaysia . . . . . . . . . . . . . . . . . . . . . . 185 Nik Noorhazila Nik Mud, Mardhiah Kamaruddin, and Norfazlirda Hairani
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Brand Equity Versus e-Brand Equity: The Evolution of Brand Equity Dimensions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199 Lydia Hidayu Lily Suhairi and Noor Hasmini Abdul Ghani Accounting Via Accountability Influences the Reconstruction of Capital Accumulation: A Qualitative Study of Muslim Family Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209 Tahirah Abdullah, Siti Afiqah Zainuddin, Siti Salwani Abdullah, Amira Jamil, Nur Farahiah Azmi, and Mohd Zulkifli Muhammad Cyberpreneurship: Digitalisation of Business . . . . . . . . . . . . . . . . . . . . . . . . 221 Nurul Husnina Najwa Zoraimi, Syamsuriana Sidek, Nur Syafiqah A. Samad, Zailani Abdullah, Nurul Azwa Mohamed Khadri, Hazrina Hasbolah, and Nor Hizami Hassin Adoption of Islamic Financing Among Halal Entrepreneurs Based on the Maqasid Sharia Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231 Siti Zamanira Mat Zaib, Azwan Abdullah, Nurul Hafizah Yasin, Tahirah Abdullah, Noor Raihani Zainol, Azila Jaini, Nur Haiza Nordin, and Nur Naddia Nordin Female Entrepreneurs’ Empowerment Model . . . . . . . . . . . . . . . . . . . . . . . . 253 Zaleha Embong, Nur Fatihah Sulaiman, and Mohd Zulhafiz Said Investigating the Trends and Future Research of SMEs in the Era of COVID-19: Perceptions from Bibliometric Analysis . . . . . . . . . . . . . . . . 265 Fatihah Mohd, Nurul Izyan Mat Daud, Noor Raihani Zainol, Nur Ain Ayunni Sabri, Nik Madeeha Nik Mohd Munir, Raja Rosnah Raja Daud, and Azila Jaini Linking the Relationships Between Perceived Value and Destination Loyalty in Langkawi Island: Mediating Role of Place Attachment and Tourist Satisfaction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 279 Muhamad Nasyat Muhamad Nasir, Aikal Liyani Mohd Rasdi, Nur Farihin Abd Hadi Khan, Marlisa Abdul Rahim, and Mardhiah Kamaruddin Assessment of Structural Equation Modelling Between Safety Attitudes, Personal Protective Equipment, Co-Worker Support with Occupational Safety and Health (OSH) Compliance Among Firefighters: A Case Study in East Coast Fire and Rescue Department of Malaysia (ECFRDM) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 287 Yus Heary Mahmud, Khairul Azhar bin Mat Daud, Ahmad Rasdan Ismail, Mafuzah Mohamad, Ferozah Haini Mohamed Ahmad, and Nur Liyana Jaffar
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Effect of Information Technology to Resources and Operational Performance in Logistics Service Provider (LSP) . . . . . . . . . . . . . . . . . . . . . 299 Nur Ilyana Amiiraa Nordin, Nur Haiza Nordin, Nur Naddia Nordin, Zuraimi Abdul Aziz, and Hazriah Hasan Adoption of Technologies and Innovations for Sustainable Rice-Paddy Farming in Kelantan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 313 Nur Naddia Nordin, Nur Haiza Nordin, Nur Ilyana Amiiraa Nordin, Siti Zamanira Mat Zaib, Nurul Hafizah Mohd Yasin, Nur Faiz Nordin, and Fadhilahanim Aryani Abdullah The Important of Digital Payment on Tax Compliance Behavior of Assessment Tax: Case of Tumpat District Council . . . . . . . . . . . . . . . . . . 325 Nur Haiza Nordin, Nur Naddia Nordin, and Nur Ilyana Amiiraa Nordin Technology in Food Production Affecting the Demand for Smoked Food Purchases in Malaysia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 337 Nur Haiza Nordin, Nur Naddia Nordin, Nur Ilyana Amiiraa Nordin, Siti Zamanira Mat Zaib, Nur Faiz Nordin, and Norzalina Zainudin Work-Related ICT Use Outside Work Hours and Work-Family Balance: Mediating Effect of Work-Family Conflict and Moderating Effect of Integration Preference . . . . . . . . . . . . . . . . . . . . . 347 Azimah Ahmad and Mohd Nazri Zakaria Live Streaming Commerce: A Systematic Review and Implication for Future Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 361 Linlin Zhang and Jasmine A. L. Yeap Impact of Elements of Accounting Information Systems on Sustainability of Microfinance Institutions in Ghana: A Conceptual Perspective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 371 Godsway Seth Jokinson Djokoto, Solomon Gbene Zaato, Ahmad Ridhuwan Abdullah, Nur Izzati Mohammad Anuar, and Noorul Azwin Mohammad Nasir Refining Pawah System Using Mudarabah Concept . . . . . . . . . . . . . . . . . . . 383 Nur Hasyirah Mohd Marzuki, Siti Nurzahira Che Tahrim, and Mohd Zulkifli Muhammad Determinant Variables Behind Speed Limit Management, Driving Licensing Mechanism Improvement, and Automotive Sales’ Promotion Based on Braking Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . 393 Don Gaspar Noesaku da Costa
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Mapping Sustainability Risk of Sarong Supply Chain: Evidence from SMEs Industrial Cluster in Indonesia . . . . . . . . . . . . . . . . . . . . . . . . . . 403 N. A. Mahbubah, M. Nuruddin, S. S. Dahda, D. Andesta, E. Ismiyah, D. Widyaningrum, M. Z. Fathoni, M. D. Kurniawan, A. W. Rizky, E. D. Priyana, Moh. Jufriyanto, Hidayat, and Y. P. Negoro Audience Value of Social Media Influencers . . . . . . . . . . . . . . . . . . . . . . . . . . 415 Tam Y. L. Adeline and Nur Thara Zainal Herb-Based Products and Entrepreneurship During the COVID-19 Crisis: A Systematic Literature Review and Research Agenda . . . . . . . . . 427 Asanah Asanah Radhi, Fadhilahanim Aryani Abdullah, Nur Amiera Zaidi, Rozidaini Mohd Ghazi, Nik Raihan Nik Yusoff, and Ikarastika Rahayu Abdul Wahab Mediation Impact of Socio-Technical Lean Implementation on Critical Success Factor and Service Quality Performance . . . . . . . . . . . 435 Mas Ayu Diana Mohd Fauzi, Razli Che Razak, and Nurul Syaqirah Zulqernain Malaysia Health Tourism SME’s Innovation Performance in the Relationship with Innovation Capability and Competency . . . . . . . 449 Fadhilahanim Aryani Abdullah, Nik Maheran Nik Muhammad, Rikinorhakis Redzuan, and Lu Man Hong Digital Economy: Improving Logistics Performance in Asian Countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 459 Nur Naddia Nordin, Nur Haiza Nordin, Nur Ilyana Amiiraa Nordin, Nur Faiz Nordin, and Norzalina Zainudin Systematic Mapping Study and Literature Review on Organisational Agility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 469 Octaviandy Giri Putra and Amalia Suzianti Role of Finance in Moderating Technology, Innovation, and Engineering Effect on Economic Growth in Malaysia . . . . . . . . . . . . . 493 Nur Faiz Nordin, Nur Naddia Nordin, Nur Haiza Nordin, Nur Ilyana Amiiraa Nordin, and Norzalina Zainudin A Bibliometric Analysis of Social Media Influencers Studies: What Does the Future Hold for Businesses During and After COVID-19? . . . . 503 Purnomo M Antara, Nadhrathul Ain Ibrahim, and Rosidah Musa Salient Beliefs Elicitation on Intention to Consume Halal Products Amongst Muslim Urban Millennials (MUMs): The Way Forward for Sustainability in the Halal Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 515 Purnomo M Antara and Rosidah Musa
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Measuring the Reliability of the Sustainable Performance Instrument in ISO 14001-Certified Manufacturing Firms in Malaysia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 531 Samihah Ahmed, Mohd Rafi Yaacob, and Mohd Asrul Hery Ibrahim “Tok Peraih”—The Myth of Entrepreneurial Leadership Among Malay Women in the East Coast of Peninsular Malaysia . . . . . . . . . . . . . . 539 Mohd Rafi Yaacob, Mohd Shukran Ab Majid, Mohd Nor Hakimin Yusoff, and Hassanuddiin Hassan Asiatic Clam (Etak) in Cambodia: An Exploratory Study of Social Economy and Business Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 549 Mohd Rafi Yaacob, Zulhazman Hamzah, Mohd Nazri Zakaria, Aweng Eh Rak, Rooshihan Merican, and Abdul Rahim Merican Pathways Towards Sustainability: Mediating Role of Green Human Resources Management Practices on the Relationship Between Green Intellectual Capital and Sustainable Performance Among ISO 14001 Certified Manufacturers . . . . . . . . . . . . . . . . . . . . . . . . . . 559 Hanieh Alipour Bazkiaei, Noor Ullah Khan, Mohd Nor Hakimin Yusoff, and Roselina Ahmad Saufi Study on the Socio-Demographics of Online Food Delivery: Foodpanda Customers and Its Association with the Frequency and Spending Patterns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 571 Norfazlirda Hairani, Mardhiah Kamaruddin, Nik Noorhazila Nik Mud, Sarina Ismail, and Md Zaki Muhamad Hasan Development of a Causality Least Association Rules Algorithm Tool Using Rational Unified Process Methodology . . . . . . . . . . . . . . . . . . . . 581 Zailani Abdullah, Fatihah Mohd, Amir Ngah, Ang Bee Choo, Nabilah Huda Zailani, and Wan Aezwani Wan Abu Bakar Exploring the Contents of Macro-Influencers’ Instagram . . . . . . . . . . . . . . 597 Nabilah Huda Zailani, Shafizan Mohamed, Mohd Azul Mohamad Salleh, and Zailani Abdullah Big Data Analytics Capability and Firm Performance in Retailing: A Systematic Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 609 Haidong Zhang and Zailani Abdullah The Impetus for Embracing Cyber Entrepreneurship Intention Among Small Businesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 619 Hazrina Hasbolah, Syamsuriana Sidek, Norazlinda Mohamed Rosdi, Nurul Azwa Mohamed Khadri, Yusrinadini Zahirah Md. Isa@Yusuff, Zailani Abdullah, and Noorshella Che Nawi
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Factors Affecting Online Cash Waqf Adoption Among Muslim Donors in Kelantan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 633 Siti Rohana Mohamad, Nur Farahiah Azmi, Mohd Zulkifli Muhammad, Hasannuddiin Hassan, Amira Jamil, Siti Salwani Abdullah, and Tahirah Abdullah A Systematic Review of the Literature on Financial Well-Being of SMEs’ Owners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 645 Mas Azira Mohamed, Nahariah Jaffar, and Sellywati Mohd Faizal Role of Engineering Technology on Logistic Performance in Promoting Economic Growth in Asian Countries . . . . . . . . . . . . . . . . . . . 657 Nur Naddia Nordin, Nur Haiza Nordin, Nur Ilyana Amiiraa Nordin, Nur Faiz Nordin, and Norzalina Zainudin Transformation and Innovation in Education for Forward Industry Effects of Digital Financial Literacy Towards Online Buying Behaviours Among Students During COVID-19 Pandemic . . . . . . . . . . . . 669 Ahmad-Ridhuwan Abdullah, Zul Karami Che Musa, Siti Salwani Abdullah, Mohd Zulkifli Muhammad, Mahathir Muhamad, Mohd Safwan Ghazali, and Muhammad Naqib Mat Yunoh Entrepreneurship Education Through Three-Dimensional Virtual Reality Technology in Learning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 679 Siti Hazyanti Mohd Hashim, Nurul Farhana Nasir, and See Tao Hoong Jyn Awareness of Islamic Financial Planning Among Science and Technology Students in Higher Learning Institutions . . . . . . . . . . . . . 689 Mohd Zulkifli Muhammad, Siti Nurzahira Che Tahrim, Tahirah Abdullah, Zul Karami Che Musa, Hanudin Amin, Mohd Nor Hakimin Yusoff, and Md Zaki Muhamad Hasan Technology Entrepreneurship and Commercialisation of Computing Artefacts in University Incubator Programme . . . . . . . . . . 701 Tamrin Amboala, Mohd Zulkifli Muhammad, Haneffa Muchlis Gazali, Esmadi Abu Seman, Mohd Rushdan Yasoa’, and Soffri Yussof Implementing Entrepreneurship Education in Chinese Higher Education Institutions: A Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 719 Ren Zhiyi, Norazah Abdul Aziz, and Mohammed Hardy Rahim
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Exploring the Implementation of Fintech Through Crowdfunding and an Appropriate Crowdfunding Model for Student Entrepreneurs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 731 Siti Salwani Abdullah, Dzulkifli Mukhtar, Azwan Abdullah, Ahmad Ridhuwan Abdullah, Tahirah Abdullah, Amira Jamil, Siti Rohana Mohamad, and Nur Farahiah Azmi Digital Wellbeing: Does It Matter in Malaysian Education? . . . . . . . . . . . 753 Aziman Abdullah, Nur Syuhada Mohd Zaidi, and Abdul Karim Asar University Entrepreneurship Education Strategies and Entrepreneurial Motivation: A Case Study in a Malaysian Private University . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 763 Siti Zakiah Melatu Samsi, Law Kah Meng, and Hasmida Jamaluddin Intention to Use Cashless Financial Transactions Among University Students . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 773 Nur Syafiqah A. Samad, Siti Fariha Muhammad, Azira Hanani Ab Rahman, Norzalizah Bahari, and Sulaiman Chindo Teachers’ Readiness Towards Digital Adoption in Teaching Towards Society 5.0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 783 Fadhilahanim Aryani Abdullah, Nur Haiza Nordin, Nur Naddia Nordin, Nurul Hafizah Mohd Yasin, and Rahayu Irdiana Ibrahim PEERS: A Digital Entrepreneurship Experiential Teaching and Learning Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 793 Nur Thara Atikah Zainal and Adeline Yin Ling Tam Technology and Innovation Adoption in Higher Education: A Study on Acceptance of Micro-credentials Learning Concept . . . . . . . . 807 Nur Naddia Nordin, Nur Haiza Nordin, Nur Ilyana Amiiraa Nordin, and Norzalina Zainudin Macroeconomic Learning Through Innovative Pedagogy and Technology: A Study on the Effectiveness of Blended Learning . . . . 817 Nur Naddia Nordin, Nur Haiza Nordin, Nur Ilyana Amiiraa Nordin, and Norzalina Zainudin Intention to Gig Work Among GiGen (Graduating iGeneration): A Proposed Conceptual Framework From Elicitation Survey . . . . . . . . . . 827 Purnomo M Antara, Rosidah Musa, Khairul Azfar Adzahar, Siti Fairuza Hassam, Mohd Fazil Jamaludin, and Nadhrathul Ain Ibrahim
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Energy Efficiency by Using Solar Panels in a University Campus: UMK City Campus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 841 Razman Hafifi Redzuan, Wan Farha Wan Zulkefli, Mohd Nor Hakimin Yusoff, Helmi Adly Mohd Noor, Rozita Husain, and Ratna Hafiza Redzuan Factors of Cyberpreneurship Intention Among Undergraduate Students . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 855 Zailani Abdullah, Hazrina Hasbolah, Salini Aina Mamat, Muhammad Shazwan Hamzah, and Nabilah Huda Zailani Knowledge, Attitude, Performance, and Intention of UMK Students in Choosing Online Learning During COVID-19 Pandemic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 865 Zailani Abdullah, Syamsuriana Sidek, Salini Aina Mamat, Loke Yi Shao, and Nabilah Huda Zailani ADDIE Model and Its Role in Developing an E-Portfolio for Teaching and Learning Islamic Banking and Finance Courses in Higher Education Institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 875 Nur Farahiah Azmi, Amira Jamil, Siti Afiqah Zainuddin, Siti Salwani Abdullah, Nur Izzati Mohamad Anuar, and Siti Zamanira Mat Zaib A New Breath in Learning Islamic Finance Course During COVID-19 Pandemic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 883 Nur Farahiah Azmi, Siti Rohana Mohamad, Tahirah Abdullah, Siti Nurul Shuhada Deraman, and Hazriah Hasan
Editor and Contributors
About the Editor Prof. Dr. Mohd Nor Hakimin Yusoff is a Professor at the Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan (UMK). He was appointed as Director of the Institute of Small Medium Enterprise. Currently, he is responsible as a Senior Director of the Entrepreneurship Institute at UMK. Before joining UMK, he served as Branch Manager for SME Bank. He holds a Doctor of Philosophy from Universiti Sultan Zainal Abidin (2014), Masters of Business Administration from Universiti Utara Malaysia (2004) and a Bachelor of Accountancy from Universiti Teknologi MARA (1994). He is also Chartered Accountant Malaysia (CA), ASEAN Chartered Professional Accountant, Certified Trainer for Chartered Financial Planner and Certified Trainer HRDF and advocates for Chartered Institute of Management Accountant (CIMA). He is Active Author and has published a number of academic papers and books on entrepreneurship and participated in various international conferences around the globe. With his wide experience in SME activities, he was appointed as Business Adviser by a number of local SMEs. Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Kota Bharu, Kelantan, Malaysia. Email: [email protected]
Contributors Associate Prof. Ts Dr. Zailani Abdullah is an Associate Professor in Computer Science at Universiti Malaysia Kelantan. He has published more than 60 articles in the journals, book chapters and conference proceedings that are indexed by Scopus/ ISI. His teaching and research interest are in Computer Science and to be more specific, in the area of big data mining, database systems, e-commerce technology and
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cyberentreprenuership. He has held several strategic posts at university and currently, he is Dean of Faculty of Business & Entrepreneurship and can be reached at zailania@ umk.edu.my Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, City Campus, 16100 Kota Bharu, Kelantan, Malaysia. Dr. Ahmad Ridhuwan Abdullah is a Senior Lecturer at the Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan (UMK), where he specializes in entrepreneurial finance, Internet finance, crowdfunding, and Islamic finance and banking. He earned his Ph.D. in Entrepreneurial Finance from RMIT University, a Master of Science in Finance from Universiti Utara Malaysia and a Bachelor of Business Administration in Finance from Universiti Teknologi MARA. He has published a number of publications in academic journals and presentations at international conferences. In recognition of his research excellence, he currently serves as Deputy Dean for Research, Innovation and Postgraduates at the Faculty of Entrepreneurship and Business. Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, City Campus, 16100 Kota Bharu, Kelantan, Malaysia. Email: [email protected] Dr. Mohd Zulkifli Muhammad has been working as a Senior Lecturer at Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, since 2011. Between 2005 and 2011, he worked as a lecturer at the Universiti Malaysia Sabah Labuan branch. He graduated with a Bachelor of Shariah and Management from Universiti Malaya in 2001, a Master of Business Administration from Universiti Kebangsaan Malaysia in 2004, and a Doctor of Philosophy in Economics, Finance and Islamic Banking from Universiti Sains Malaysia in 2017. Islamic finance, Islamic banking, Islamic economics and Islamic entrepreneurship are among the areas of interest and focus of study. He can be contacted via email [email protected]. Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, City Campus, 16100 Kota Bharu, Kelantan, Malaysia. Dr. Nur Haiza Nordin is a Senior Lecturer in Economics at Universiti Malaysia Kelantan. She received her Bachelor’s degree in Banking from Universiti Utara Malaysia, Master’s Degree and Doctor of Philosophy (Ph.D.) in Economics from Universiti Putra Malaysia. Dr. Nur Haiza specializes in the field of finance. Her current research interest includes healthcare expenditure, education, population and ageing. Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, City Campus, 16100 Kota Bharu, Kelantan, Malaysia. Email: [email protected]
Editor and Contributors
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Dr. Nur Naddia Nordin is Senior Lecturer in Economics at Universiti Malaysia Kelantan. She received her Bachelor’s Degree, Master’s Degree and Doctor of Philosophy (Ph.D.) in Economics from Universiti Putra Malaysia. Dr. Nur Naddia specializes in the field of finance. Her current research interests include labour market, innovation, research and development (R&D) and foreign direct investment. Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, City Campus, 16100 Kota Bharu, Kelantan, Malaysia. Email: [email protected] Dr. Siti Salwani Abdullah is a Lecturer at the Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan (UMK) since 2016. Her areas of expertise include banking and finance, crowdfunding and entrepreneurial finance. She received a Doctor of Philosophy degree in Finance from University Malaysia Kelantan, a Master of Science degree in Finance from Universiti Utara Malaysia and a Bachelor of Business Administration degree in Finance from Universiti Teknologi MARA. She has published a number of publications in academic journals and presentations at international conferences. Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, City Campus, 16100 Kota Bharu, Kelantan, Malaysia. Email: [email protected] Dr. Mohd Ikhwan Aziz is a highly regarded Senior Lecturer at Universiti Malaysia Kelantan with extensive experience in the fields of Human Resources, Islamic Banking and Entrepreneurship. He has authored over 50 articles in reputable journals, book chapters and conference proceedings indexed by Scopus/ISI. His research interests are primarily focused on talent management, talent development, startups and digital entrepreneurship. Dr. Mohd Ikhwan’s expertise in these areas has earned him a reputation as an authority in the field of Human Resources, Islamic Banking and Entrepreneurship. His research findings have been widely cited and applied in practice by industry professionals and policymakers alike. He has been invited to speak at numerous conferences and workshops and has received several prestigious awards and recognitions for his contributions to the field. Apart from his research contributions, Dr. Mohd Ikhwan has held various leadership positions at the university. Currently, he serves as the Director of the Institute of Small and Medium Enterprises, where he plays a key role in shaping the research agenda and promoting collaborations between academia and industry. He is also actively involved in the supervision and mentoring of graduate students and is known for his dedication to their success. Dr. Mohd Ikhwan is always willing to share his knowledge and expertise with others. He is a sought-after speaker and collaborator, and his contributions to the field of Human Resources, Islamic Banking and Entrepreneurship are highly valued by his peers. He can be reached at [email protected] for any academic or research-related inquiries.
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Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, City Campus, 16100 Kota Bharu, Kelantan, Malaysia. Dr. Tahirah Abdullah is a Lecturer in the Faculty of Entrepreneurship and Business (FKP), Universiti Malaysia Kelantan (UMK). She holds a Bachelor in Accounting from Universiti Sains Islam Malaysia (USIM) and holds a Master’s Degree in Accounting from Universiti Islam Antarabangsa Malaysia (UIAM). She has been involved in many research projects and releases articles in journals, chapters in books and conference journals nationally and internationally that are indexed by Scopus and WoS. Among her areas of expertise are Capitals Investment Decision in Small and Medium Enterprises (SMEs), Accounting in Neoliberal Enterprises and Entrepreneurship. She received her Doctor of Philosophy (Ph.D.) in Accounting, in Aberdeen, Scotland. Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Kota Bharu, Kelantan, Malaysia. Email: [email protected]
Entrepreneurship and Business Transformation for Forward Industry
Customer Requirements for Effective Packaging in the Food Supply Chain Kasmaruddin Che Hussin , Arthiny Mohana Rajani, Afifah Hanim Md Pazil , Nor Aizal Akmal Rohaizad , and Syamsul Bahrin Zaibon
Abstract Food items are one of the things that the modern consumer demands to satisfy their needs for a diverse lifestyle. The requirement for effective packaging has risen since many of these goods require sales packaging to preserve and confine them. Customer demands have arisen as a result of rising damages and the need for items to be packaged in such a way that their contents are not destroyed before they reach their final destination. This study was conducted to understand the types of customer requirements and the important tools for effective packaging in the food supply chain. The main objective was to examine the relationship between the types of customer requirements and the important tools for effective packaging. Simple random sampling was used for data collection using questionnaires distributed through social media platforms such as WhatsApp and Facebook. A total of 108 respondents participated in this study, which consisted of fourth-year logistic students at Universiti Malaysia Kelantan. Descriptive analysis, reliability test, normality test, Spearman’s correlation analysis, and multiple regression analysis were performed using SPSS version 25. The study found a positive relationship between the independent variable and the dependent variable. Keywords Customer requirements · Customer satisfaction · Effective packaging · Food items · Food supply chain
K. C. Hussin (B) · A. M. Rajani · A. H. Md Pazil Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, 16100 Kota Bharu, Kelantan, Malaysia e-mail: [email protected] N. A. A. Rohaizad Faculty of Business, Economic and Social Development, Universiti Malaysia Terengganu, 21030 Kuala Terengganu, Terengganu, Malaysia S. B. Zaibon School of Creative Industry Management and Performing Arts, Universiti Utara Malaysia, 06010 Sintok, Kedah, Malaysia © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_1
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1 Introduction A product’s packaging is the first thing a buyer sees before making their pick at a supermarket [1]. The packaging must protect the product during transportation from the manufacturing site to the store and while it is on the shelf. As a result, product packaging must be long-lasting and reliable [2]. It is vital to consider consumers’ wants and requirements when assessing the importance of product packaging. Growing globalisation has placed pressure on the food business to cut prices throughout the food supply chain. With a focus on regional and local outreach, the logistics system is fractured [3]. The usual purchasing organisations are big, vertically integrated multinational corporations with a wide range of products and an emphasis on low cost and efficiency. Globalisation has contributed to the development of new supply chain models in the food industry. The primary function of packaging is to protect the food item from physical damage during transit (e.g., shock, vibration, and temperature). Suitable packaging can also be developed for each particular home with written instructions or labels that inform the customer on how to use, recycle, or dispose of the product and its packaging. Various security measures may also be included in the packaging (e.g., anti-theft devices such as Radio-Frequency Identification tags or seals to identify counterfeits). Prospective clients can be persuaded to acquire goods at the point of sale via packaging design and marketing. A packaging’s primary purpose is to keep the substance from losing its intended purpose. Whether it is a food item that needs to stay fresh and flavourful or a consumer product like toothpaste, the container should be able to protect the contents. Protecting a product from shock and vibration, maintaining product stability from temperature fluctuations during transportation, or maintaining product cleanliness and sterility are all examples of a packaging’s protective function. An important aim of packaging is to clarify and advertise its contents on the container to a specific market. This requires a consideration of the packaging’s resource requirements, logistic purpose, and transit conditions throughout its supply chain journey. The choice of materials will be influenced by the length and duration of the distribution.
2 Literature Review 2.1 Types of Customer Requirements Customers’ needs differ depending on the products or services offered by a company. The food supply chain can combine different requirements to meet as many customers’ needs or desires as possible. The first type of customer requirement for packaging is sustainability and environmental friendliness. Some clients are looking for products that do not have a harmful influence on the environment. Recycling or
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reusing packaging materials has become a priority for all levels of management [4]. The ability of management to identify external trends and employ its resources efficiently is critical to a company’s marketing activities. The second type of customer requirement is functionality. The functionality of packaging has grown increasingly crucial as customers seek convenience in the shopping process and at home. In the supply chain, product packaging must be acceptable for shipping and storage. At the same time, the package must be appropriate for a household’s size. Creating exposure is insufficient to evoke purchasing decisions, and the packaging must have a compelling message to attract consumers’ attention. Attention-grabbing messages include the introduction of a new or upgraded product concept, a change in product content, or the fact that the firm is selling at a cheaper price. A favourable response from the customer is more likely to elicit a desire to engage with the product concept. Lastly, quality and safety are part of customers’ requirements for packaging. Quality can be described in a variety of ways, but it is most commonly associated with its long-term viability. A customer considers high-quality food packaging to be one that lasts and does not break easily. Customers are also concerned about product safety and they seek guarantees that the product will not hurt them or the people around them. H0 : There is no significant relationship between the types of customer requirements and the tools for effective packaging in the food supply chain. H1 : There is a significant relationship between the types of customer requirements and the tools for effective packaging in the food supply chain.
2.2 Important Tools for Effective Packaging A packaging’s ability to impact shopping behaviour is important to maximise its potential and optimise every part of it. Before a customer has the opportunity to test a product, its packaging is sometimes evaluated, just like how books are first judged by their cover. After all, packaging is crucial to assist in increasing sales. The first important tool for effective packaging is the material. New pulp development has enhanced possibilities for creating packaging boards of varying qualities depending on their end-use. Light, oxygen, dampness, grease, and heat can be dispelled using coating substances. The correct material and coating can reduce waste, increase printability, improve sealing, improve conversion, and save costs. The second important tool for effective packaging is shape. The shape of the package is an essential tool for any designer or marketer. The package’s design can draw customers’ attention and affect how it will be transported in secondary packing. Choosing the right material, shape, and size of the packaging can save a lot of money in logistics. Another important tool for effective packaging is colour. The most potent tool for influencing consumers’ thoughts lies in the colour of the packaging. Colour is a significant tool for recognising a brand or learning more about a product’s origin. Colour can trigger emotional reactions and cultural connotations [5]. Thus, marketers
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use colour to represent product categories and create emotional associations [6]. Lastly, graphic is another important tool for effective packaging. A packaging’s graphic design involves a complicated process that requires a wide range of skills, creativity, and technical understanding. To visualise and translate the design onto the space of the packaging, a combination of shapes, colours, typography, and printing technology need to be utilised. The purpose of establishing design studios within a corporation is to bring clients closer to the design process, while simultaneously speeding it up.
2.3 Relationship Between Customer Requirements and Effective Packaging Delivering packaging elements that customers value is one of the most effective marketing methods. With so many products seeking customers’ attention, firms must find a way to set themselves apart from the competition. Product packaging has the capacity to leave a lasting impression on customers and can help increase brand loyalty [7]. A freshness seal is necessary to extend the shelf life of food packaging. The fundamental reason is that it secures the goods from spoilage, infection, breakage, or any other type of loss. Vacuum-sealed bags with resealable mechanisms are a great way to improve protection and packaging usability. As a manufacturer, you will want to ensure that customers have a great experience with the product. Printed guidelines or directions on the product’s packaging are a must for consumers. Customers are instructed on how to utilise the product correctly for best results using thoughtful packaging design. Depending on the type of product, manufacturers may want to include some guidelines on the packaging. Intelligent packaging provides customers with important health and nutritional information. Packaging, in addition to the ingredient list, can help customers make healthier choices by providing easy access to caloric and nutritional info. By declaring products as being free from specific ingredients or substances, retailers make it easy for healthconscious customers to choose one brand over another. Food packaging is one of the most important aspects of good packaging as buyers prefer to appraise it first. Retailers can create a relationship with consumers and convert them into lifelong customers by interacting with them through the product’s packaging. An alternative to helping your customers get the health and nutritional details they need is to place a Quick Response (QR) code on the food packaging that will lead to a website. This site can feature information about the ingredients used by the manufacturer and why they are used.
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Fig. 1 The conceptual framework on types of customer requirements and important tools for effective packaging in the food supply chain [8, 9]
2.4 Conceptual Framework (See Fig. 1).
3 Methodology 3.1 Research Design The quantitative approach was used to acquire data. Quantitative data is described as large amounts of data being collected and turned into a discrete number that can be statistically analysed. Since the main aim and purpose of this study is to determine the relationship between the types of customer requirements and the important tools for effective packaging, the researcher chose descriptive correlation as the appropriate design for this study.
3.2 Sample Size According to Zamboni [10], sample size is the count of each sample or observation in any statistical context such as a scientific experiment or a public opinion study. The study population comprised of students from the Faculty of Entrepreneurship and Business at Universiti Malaysia Kelantan.
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3.3 Instrument The questionnaire consists of four sections, namely Section A, Section B, Section C, and Section D. Section A collects the respondents’ personal details such as gender, age, ethnicity, and others. Section B is about the independent variable, namely the types of customer requirements. Section C is about the dependent variable, namely important tools for effective packaging. Section D is about the relationship between the types of customer requirements and the important tools for effective packaging. All of the responses supplied by respondents for Sections B, C, and D will be on a 5-point Likert Scale.
3.4 Plan for Data Collection The use of an online survey questionnaire is the primary method for data collection. An online questionnaire is used to collect information from fourth-year logistics students at Universiti Malaysia Kelantan. Secondary data is data that has already been gathered and made publicly available for researchers to use for their own study. It is the kind of information that has already been gathered from the past.
3.5 Plan for Data Analysis The researchers used the Statistical Package for Social Sciences (SPSS) version 25 to analyse the data. The statistical analyses used in this study include descriptive analysis, reliability test, normality test, Spearman’s correlation analysis, and multiple regression analysis.
4 Result and Data Analysis 4.1 Demographic Profile Table 1 shows the demographic profile of the respondents and their responses to the screening question. There were 108 respondents consisting of fourth-year logistic students at Universiti Malaysia Kelantan.
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Table 1 Respondents’ demographic profile No
Category
Details
1
Gender
Male
65
Female
43
2
3
Age
Ethnicity
Do you think packaging plays an important role in food products?
Percentage (%) 60.2 39.8
18–19 years old
0
0
20–21 years old
0
0
22–23 years old
102
24–25 years old
6
5.6
Malay
72
66.7
Chinese
19
17.6
Indian
15
13.9
Others 4
Frequency (108)
2
Yes
106
No
2
94.4
1.9 98.1 1.9
4.2 Descriptive Analysis Table 2 shows the mean and standard deviation of the dependent variable, the independent variable, and the relationship between the two. The mean for types of customer requirements, which is the independent variable, was 4.718 with a standard deviation of 0.244 The mean for important tools for effective packaging, which is the dependent variable, was 4.738 with a standard deviation of 0.313. The mean for the relationship between the types of customer requirements and the tools for effective packaging was 4.782 and the standard deviation was 0.3128. Table 2 Descriptive statistics Variable
N
Mean
Std. Deviation
Types of customer requirements
108
4.718
0.244
Important tools of effective packaging
108
4.738
0.312
Relationship between customer requirements and effective packaging
108
4.782
0.313
Valid N (listwise)
108
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Table 3 Reliability analysis Variable
Number of Cronbach’s items alpha
Internal consistency
Types of customer requirements
7
0.867
Good
Important tools for effective packaging
7
0.820
Good
Relationship between types of customer requirements and tools for effective packaging
6
0.813
Good
Table 4 Normality test Kolmogorov–Smirnov
Shapiro–Wilk
Statistic
df
Sig.
Statistic
df
Sig.
Types of customer requirements
0.252
108
0.000
0.862
108
0.000
Important tools for effective packaging
0.287
108
0.000
0.792
108
0.000
4.3 Reliability Analysis Table 3 indicates that Cronbach’s Alpha coefficient for types of customer requirements was 0.867 with good internal consistency. The coefficient for important tools for effective packaging was 0.820, which also showed good internal consistency. The coefficient for the relationship was 0.813 with good internal consistency. Therefore, the reliability coefficients obtained in this study are dependable and can be considered reliable for further analysis and interpretation.
4.4 Normality Analysis Based on Table 4, the outcomes of each test showed that the level of significance or pvalues were less than 0.05 (0.000). Thus, the data was considered abnormal because it did not follow a normal distribution. To define the relationship between the two study variables, Spearman’s correlation analysis will be applied for hypothesis testing instead of Pearson correlation analysis [11].
4.5 Correlation Yu and Hutson [12] had described Spearman’s coefficient as a measure of nonparametric correlation and it was defined as the Pearson correlation coefficient between sample levels. Spearman’s correlation is a measure of non-parametric
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Table 5 Spearman’s correlation analysis
Spearman’s rho
Types of customer requirements
Correlation coefficient
Types of customer requirements
Important tools for effective packaging
1.000
0.756
Sig. (2-tailed) N
0.000 108
108
rating correlation (i.e., statistical dependence between two variables). Table 5 shows Spearman’s correlation for coefficients and the significance values. The significance level or p-value for this analysis was 0.000, which was lower than the alpha value (0.01). The results showed a positive relationship between the types of customer requirements and the tools for effective packaging. The correlation coefficient for types of customer requirements and tools for effective packaging was 0.756. According to [13], the correlation between the two variables can be considered strong.
4.6 Multiple Regression The higher the t-value, the greater the impact of the independent variable on the dependent variable. According to Table 6, the types of customer requirements influenced the important tools for effective packaging in the food supply chain. This is because the t-value for types of customer requirements was 11.378, which was higher than the t-value for important tools for effective packaging (0.680). Table 6 Multiple regression analysis Model
1
Unstandardised coefficients
Standardised coefficients Beta
B
Std. Error
0.267
0.393
Types of customer 0.948 requirements
0.083
Important tools for effective packaging
0.741
t
Sig.
0.680
0.498
11.378
0.000
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5 Discussion 5.1 Key Finding Descriptive analysis was conducted to analyse the results related to the demographic profile of respondents and to determine how respondents answered each question in the questionnaire. A reliability test was conducted to determine whether the questionnaire was reliable. Tests of normality (i.e., Kolmogorov–Smirnov and Shapiro–Wilk) were used to test all the independent and dependent variables. The significance level or p-value would indicate data normality. Spearman‘s correlation was also used in the study to determine the relationship between the dependent and independent variables. The correlation coefficient is an important indicator of whether the relationship between the independent and dependent variables was strong or weak and had a negative or positive association. Multiple regressions were derived from the extension of simple linear regressions.
5.2 Hypothesis H1 : There is a significant relationship between the types of customer requirements and the tools for effective packaging in the food supply chain. Based on Table 5, the relationship between the types of customer requirements and the tools for effective packaging in the food supply chain was significant since the pvalue was .000, which was lower than the alpha root (0.01). The results demonstrated respondents’ general agreement that the types of customer requirements influenced the tools for effective packaging in the food supply chain. Moreover, its correlation coefficient (0.756) showed that the relationship between the two variables was strong.
6 Recommendations and Conclusion Future researchers can increase the sample size of the study to achieve higher degrees of accuracy and lower the margin of error. The current study’s sample size has a 0.05 margin of error with a 95% confidence interval. The sample size needs to be chosen wisely because sampling will affect the usefulness of the data [14]. Future studies could be based on larger samples over a longer period of time in order to get more respondents to answer the questionnaire on this topic. In addition, future research can focus on a few data collection methods with the use of various assessment devices. For example, researchers can arrange central gatherings, organise top-to-bottom meetings, and use open-finished questions. Researchers can discover more information from direct interviews and open-ended questionnaires
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instead of relying on one method. By using various estimation strategies, the results will be more grounded than the use of a single methodology. Lastly, future researchers require a deep understanding of the data analysis process. Future researchers should know how to use the SPSS software. Once the data collection process is completed, it should be analysed for results. For example, future researchers should know how to perform pilot testing, descriptive analyses, reliability testing, hypothesis testing, and multiple regression analyses. Researchers can have a clearer perspective on the flow of research through an in-depth knowledge of these analyses. This research was conducted to determine the types of customer requirements for effective packaging in the food supply chain and to identify the relationship between the independent and dependent variables of the study, which are the types of customer requirements and the important tools for effective packaging. In this study, the hypothesis was developed and tested to determine the relationship between the dependent and independent variables. Data was collected using simple random sampling so that every member of the study population has an equal chance of being selected. The descriptive analysis, reliability test, normality test, Spearman’s correlation analysis, and multiple regression analysis were executed using IBM SPSS version 25. The results from Spearman’s correlation analysis showed a positive relationship between the types of customer requirements and the important tools for effective packaging.
References 1. Ampuero, O., Vila, N.: Consumer perceptions of product packaging. Journal of Consumer Marketing 23, 100–112 (2006). https://doi.org/10.1108/07363760610655032. 2. White, J.: The Importance of Product Packaging, https://www.ptpackaging.com/blog/the-imp ortance-of-product-packaging/, last accessed 2022/11/04. 3. Lee, J., Gereffi, G., Beauvais, J.: Global value chains and agrifood standards: Challenges and possibilities for smallholders in developing countries. PNAS 109(31), 12326–12331 (2010). https://doi.org/10.1073/pnas.0913714108. 4. Rundh, B.: The role of packaging within marketing and value creation. British Food Journal 118(10), 2491–2511 (2016). https://doi.org/10.1108/BFJ-10-2015-0390. 5. Madden, T.J., Hewett, K., Roth, M.S.: Managing images in different cultures: across national study of color meaning and preferences. Journal of International Marketing 8(4), 90–107 (2000). https://doi.org/10.1509/jimk.8.4.90.19795. 6. Aslam, M.M.: Are you selling the right colour? A cross-cultural review of colour as a marketing cue. Journal of Marketing Communications 12(1), 15–30 (2006). https://doi.org/10.1080/135 27260500247827. 7. Phase1.: Packaging Features That Are Important to Consumers, https://phase1proto-types.com/ packaging-features-that-are-important-to-consumers/, last accessed 2022/11/04. 8. Zeithaml, V. A., Parasuraman, A., Berry, L. L., & Berry, L. L.: Delivering quality service: Balancing customer perceptions and expectations. Simon and Schuster (1990). 9. Hise, R. T., & McNeal, J. U.: Effective packaging management. Business Horizons, 31(1), 47–51 (1988).
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10. Zamboni, J.: What Is the Meaning of Sample Size? https://sciencing.com/meaning-samplesize-5988804.html, last accessed 2022/11/04. 11. Newson, R.: Parameters behind “nonparametric” statistics: Kendall’s tau, Somers’ D and median differences. The Stata Journal 2(1), 45–64. (2002). https://doi.org/10.1177/153686 7X0200200103. 12. Yu, H., & Hutson, A.D.: A Robust Spearman Correlation Coefficient Permutation Test. Communications in Statistics–Theory and Methods, 1–13 (2022). https://doi.org/10.1080/03610926. 2022.2121144. 13. Hinkle, D. E., Wiersma, W., Jurs, S. G.: Applied statistics for the behavioral sciences, Vol. 663. Boston (2003). 14. Salkind, N. J.: Exploring Research. 5th edn. Pearson Education International Edition, London (2003).
Exploring the Digital Transformation Governance Model for Industrial Eco-Innovation Post-COVID-19 Zhao Na
and Li Han
Abstract The great complexity and the unpredictability of the industrial innovation ecosystem’s digital transformation present a governance challenge. The newly developed provisional governance theory offers a fresh viewpoint to support digital transformation. It creates a provisional governance model that includes the following three key components: (1) a multi-centre governance structure made up of a variety of agents; (2) a governance mechanism that combines policies, contracts, and relationships; and (3) a governance niche combination made up of resource distribution, market formation, search guidance, and legitimacy. A system should gradually incorporate these components through a governance approach. Positive theoretical ramifications for the digital transformation of innovation development and its governance are provided by the research findings. Keywords Digital transformation · Governance models · COVID-19
1 Introduction In the context of the new crown pneumonia epidemic that severely impacts the global economy, more and more industries are gaining new development momentum by accelerating digital transformation and promoting the deep integration of digital technology and the real economy. Data has become a key production factor, and it has economic values that can improve resource utilisation efficiency and directly bring economic benefits. The essence of industrial digitalisation is the “new combination” of digital technology and existing products, processes, and business processes, and it is a transformation development mode with digital innovation as the inner driving force. However, the digital transformation of the industrial innovation ecosystem is highly complex and uncertain, as highlighted by many relevant interest subjects, strong heterogeneity of technology direction, and rapid iteration of technology Z. Na (B) · L. Han UKM-Graduate School of Business, National University of Malaysia, 43600 Bangi, Selangor, Malaysia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_2
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updates. Therefore, exploring an effective digital transformation governance mechanism to promote the innovation of the industrial ecosystem has become a theoretical and practical problem that enterprises need to solve urgently. Based on an in-depth analysis of the connotation characteristics and governance dilemma of digital transformation of the industrial innovation ecosystem, this paper constructs a governance model of digital transformation of the industrial innovation ecosystem based on the concept of exploratory governance, key components, and governance process and mechanism [1]. This paper brings forward several theoretical ideas. Firstly, it stresses the significance of digital transformation in the innovation ecosystem as a critical aspect of industry-wide digital transformation. Furthermore, it clarifies and underscores the interdependence and logical coherence between “digital transformation” and “digital innovation”. This provides not just a theoretical foundation for comprehending and evaluating digital transformation in industry but also a practical plan for governments and companies to encourage the change. This bridges the gap in present research, which usually lacks practical advice for executing digital transformation in the industry.
2 Literature Review 2.1 Industrial Innovation Ecosystems An innovation ecosystem is defined as “an evolving set of actors, behaviors, products, institutions, and relationships that are critical to the innovative performance of an actor or group of actors” [2]. An industrial innovation ecosystem can be defined as a techno-economic system consisting of industrial innovation agents and their supporting environment in a certain time and space scale.
2.2 Digital Transformation of Industrial Innovation Ecosystems For enterprises, digital transformation is a major change in strategy, organisational structure, product operation, and business model brought about by digital technology, which is characterised by convergence, leapfrogging, and strong environmental dependence [3]. The digital transformation of the industrial innovation ecosystem is based on the digital transformation of enterprises [4]. However, it is not a simple accumulation of enterprises’ digital transformation behaviours, but the changes in the structure, function, and operation mechanism of the whole system caused by the interrelated micro transformation behaviours, focusing on two aspects of innovation behaviour and innovation organisation [5].
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On the one hand, the digital transformation of the industrial innovation ecosystem is fundamentally realised through a series of digital innovations [6]. As a result, data becomes an important resource and innovation output in the process of digital transformation of the industrial innovation ecosystem [7]. On the other hand, innovation organisation is characterised by a combination of online and offline innovation. Online innovation is dominated by information, coding knowledge, data, and other resource allocation [8], while offline innovation is dominated by silent knowledge interaction, material resources, and product production and transportation activities. This is the result of the change in communication and efficiency brought about by a digital technology and the result of the increasing distribution and democratisation of innovation agents [9]. The digital platform provides space for online and offline interactions of innovation subjects, and the reconstruction of innovation organisations by means of the digital platform has become a significant feature of the digital transformation of the industrial innovation ecosystem [10].
2.3 Governance Dilemma Existing research on innovation ecosystem governance suggests that all levels and types of innovation ecosystems are subject to “market failure” or “system failure” and need to be governed [11]. However, the digital transformation of industry innovation ecosystems faces governance dilemma arising from a high degree of complexity and uncertainty. Governance is fundamentally about the identification of goals and the choice of ways to achieve them [6]. Although the fundamental objectives of digital transformation of industrial innovation ecosystems have been determined, the operational governance objectives are difficult to be predetermined and are dynamic due to the uncertainty. The complexity also makes the governance objectives diverse and full of multi-objective governance problems. Accordingly, the design and selection of governance mechanisms and the implementation of governance need to meet the dynamic multi-objective governance needs [4]. Therefore, the governance of digital transformation of industrial innovation ecosystems requires new theoretical perspectives and methodological tools to deal with complexity and uncertainty in a more rational and effective way.
2.4 Experimental Governance Experimental governance for emerging science and technology has positive implications for solving the dilemma of digital transformation governance in industrial innovation ecosystems. Experimental governance is a governance model that manages complexity and uncertainty through a cyclical and iterative approach [4], and its governance approach is ad hoc, flexible, modifiable, and dynamically open [12].
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3 Methods Based on the basic concept of tentative governance, HOPKINS offers a specific analytical framework that includes seven dimensions: governance niche, governance object, governance process, resource commitment, support time, governance goal, and relevant stakeholders. This framework lays the foundation for moving from conceptual to empirical analysis of experimental governance. Based on the HOPKINS model, this paper constructs a tentative governance model for the digital transformation of the industrial innovation ecosystem based on the characteristics and governance dilemma faced by the industrial innovation ecosystem, combined with the theoretical points of tentative governance (see Fig. 1). The governance model constructed in this paper includes three key elements: governance subject, governance mechanism, and governance niche. Among them, the governance subject is associated with the dimension of relevant interest subjects in the HOPKINS framework. The governance niche is already included in the HOPKINS framework. In addition, the analytical framework of HOPKINS takes a policy as the object of analysis, thus decomposing the dimensions of resource commitment, support time, and governance objectives. However, in the process of digital transformation of industrial innovation ecosystems, the governance means and methods involved are more complex. Therefore, this paper treats governance mechanism as a
Fig. 1 Governance model for the digital transformation of the industrial innovation ecosystem
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constituent element of the pilot governance model. The model includes the components of tentative governance from a static perspective and the governance process and its mechanism of action from a dynamic perspective. The context of the tentative governance model constructed in this paper is mainly the traditional manufacturing industry where the “digital divide” is obvious.
4 Discussion 4.1 Interpretation of the Components of Digital Transformation Governance Model The digital transformation of the industrial innovation ecosystem involves many relevant interest subjects and requires a multicentre collaborative governance structure so that various governance subjects can form a governance network with cooperation and constraints, and then achieve collective goals. The governance subjects of digital transformation of the industrial innovation ecosystem can be divided into two categories: core subjects and auxiliary subjects [13]. Core subjects are dominant in the governance structure and usually include the government, transformation enterprises, digital enterprises, etc. Auxiliary governance subjects refer to those who indirectly or partially participate in the governance of digital transformation of the industrial innovation ecosystem, such as suppliers, consumers, universities, research institutions, intermediaries, expert groups, etc. Governance mechanisms are the main instruments and methods of governance. The tentative governance of digital transformation of the industrial innovation ecosystem requires the comprehensive use of three types of governance mechanisms: policy, contract, and relationship. Both policy and contract are formal governance mechanisms. A policy mechanism takes the government as the implementation body and guides and regulates other relevant interest subjects through planning, administrative instructions, guidance, and other means, or directly invests resources. Contracts are a common governance mechanism for cooperative transactions among various market players. Contractual governance mechanisms are also used in marketbased cooperation between the government and other entities, such as government procurement of digital products or technologies and joint establishment of investment funds. Relationships are an important informal governance mechanism. It is rooted in the long-term interactions of social actors and focuses on long-term interests and is a useful complement to formal governance mechanisms such as contracts. The three types of governance mechanisms—policy, contract, and relationship— have their own scope of application and should be combined in a complementary way. Digital transformation is fundamentally an economic act of market players and needs to be led by contractual governance mechanisms to give full play to the market’s resource allocation role. However, the uncertainty and the complexity make it difficult
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to make and enforce contracts, and policy and relationship governance mechanisms are needed to complement them. This paper focuses on four governance niches: resource allocation, market formation, search guide, and legitimacy. Theoretically, these four niches correspond to the basic processes of resource input, subject collaboration, and leading design formation. In practice, these four niches reflect the pain points of the current digital transformation of the industry. The following is an analysis of the four types of governance niches that are the focus of this paper. First, resource allocation as a governance niche is to break the barriers of insufficient resources to promote digital transformation. Second, market formation as a governance niche aims to enable new technology solutions to develop sufficient market spaces as soon as possible. Third, the search guide aims to realise the choice, cooperation, and interaction among relevant stakeholders through effective information exchange. Last, using legitimacy as a governance niche aims to make a transformation solution the dominant design and thus truly realises the digital transformation of the industrial innovation ecosystem.
4.2 Progressive Governance Process of “Subject-Mechanism-Niche” Integration and Its Mechanism of Action Governance subjects, governance mechanisms, and governance niches must be integrated to achieve governance effects. Experimental governance is a dynamic, flexible, and non-linear process [12]. The integration of the above-mentioned governance elements is gradually realised in implementing governance, which includes three key aspects. Overall, the governance process of achieving factor integration is an iterative and gradual process with experiential learning as the core, including a dynamic cycle at both cognitive and behavioural levels. The behavioural level includes four basic steps: defining/adjusting governance objectives, optimising governance measures, implementing governance, and evaluating effectiveness. Among them, governance objectives essentially embody the shared vision and expectations of governance actors and are themselves a means to cope with uncertainty [1]. However, under the influence of uncertainty, governance objectives can only be continuously adjusted according to changes in governance effectiveness and external factors. As governance goals change, governance measures must be dynamically adjusted and optimised accordingly. At the cognitive level, on the one hand, the governance subject determines the governance objectives and measures, implements governance, and evaluates the effects based on the existing knowledge base, and on the other hand, the governance subject summarises the experience based on the results of the effect evaluation and further optimises and improves the knowledge base. What drives this process is
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the experiential learning of the actors, i.e., the cycle of practical experience into knowledge. Furthermore, to address the governance dilemma of digital transformation of the industrial innovation ecosystem caused by complexity and uncertainty, the above governance process works mainly through three mechanisms: multiobjective equilibrium, all-around collaboration, and heuristic trial and error. Multiobjective equilibrium means that the tentative governance of the industrial innovation ecosystem needs to deal with multiple governance issues simultaneously and achieve a static and dynamic equilibrium among multiple governance objectives, which is an important way to solve the complexity of governance. In the exploratory governance model, polycentric governance subjects and multiple governance niche combinations lay the foundation for multiobjective equilibrium, and the integrated and progressive governance process is the guarantee for achieving the multiobjective equilibrium. All-round synergy refers to a high degree of synergy among stakeholders and resources involved in the transformation, which are both required to overcome the complexity of governance and a way to resolve the uncertainty caused by information asymmetry. In the exploratory governance model, the polycentric governance structure lays the organisational foundation for all-around synergy. The governance mechanism combining policy, contract, and relationship then provides the means to realise all-around synergy from the perspective of formal and informal mechanisms. After that, the diverse governance niche further connects the synergy of resource elements and subjects. Finally, the gradual governance process ensures the formation of all-around synergistic relationships. Heuristic trial and error are a key tool for dealing with uncertainty. Since governance objectives, measures, and their effects are difficult to be fully predicted, governance subjects cannot predict the effects of solutions or measures in advance, but can only try them out, and such attempts need to be made continuously to find and retain effective measures.
5 Results The digital transformation of the industrial innovation ecosystem is the key to the innovation and development of traditional industries in the digital economy. Based on the complexity and uncertainty of digital transformation of the industrial innovation ecosystem, this paper constructs a tentative governance framework model based on three key elements: governance subject, governance mechanism, and governance niche, combined with the governance process of gradual integration and its mechanism of action. Specifically, the tentative governance of the digital transformation of the industrial innovation ecosystem requires the formation of a polycentric governance structure with the participation of multiple subjects, the adoption of a governance mechanism with the organic integration of policies, contracts, and relationships, and the combination of governance niches consisting of resource allocation,
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search guidelines, market formation, and legitimacy, and the integration of the above elements through a gradual governance process to achieve governance effects.
6 Theoretical and Practical Implications First, this paper studies industrial digital transformation from the perspective of the innovation ecosystem and provides a conceptual basis and an analytical framework for subsequent research. The existing studies on digital transformation mainly focus on microenterprises. However, under the influence of the closely connected industrial network, the digital transformation of individual enterprises cannot be separated from the interaction with other subjects. At the same time, digital transformation emphasises the new combination of digital technology and existing business, which is a typical digital innovation behaviour, and thus the innovation ecosystem becomes a suitable unit of analysis for studying industrial digital transformation. This paper further clarifies the connotation and characteristics of digital transformation of the industrial innovation ecosystem and constructs a tentative governance framework for the digital transformation of the industrial innovation ecosystem, which has positive theoretical values for the research of industrial digital transformation. The digital development of the industrial innovation ecosystem is also a new research trend in innovation ecosystem theory, but the research on how to realise the digital transformation of the industrial innovation ecosystem is still insufficient. This study is also important for the development and deepening of innovation ecosystem theories. Under the impact of the new epidemic, the trend of digitalisation of industries is becoming clearer and more urgent. However, for traditional industries with many small and medium enterprises and a weak resource base, achieving digital transformation is a real challenge. The experimental governance model constructed in this paper has important practical implications for solving this real-life challenge.
7 Limitation and Expectation The digital transformation of the industrial innovation ecosystem is at the stage of theoretical and practical exploration, and exploratory governance is also an emerging governance concept. The tentative governance of digital transformation of the industrial innovation ecosystem is a complex system project, and the interactions among governance subject, governance subject, governance niche, and governance process need to be studied more deeply. This paper focuses on theoretical framework construction, which is not enough to constitute a rigorous theoretical test. We will further collect and follow up on typical cases to conduct more comprehensive empirical research.
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References 1. Budde, B., Konrad, K.: Tentative governing of fuel cell innovation in a dynamic network of expectations. Research Policy. 48, 1098–1112 (2019). https://doi.org/10.1016/j.respol.2019. 01.007. 2. Granstrand, O., Holgersson, M.: Innovation ecosystems: A conceptual review and a new definition. Technovation. 90–91, 102098 (2020). https://doi.org/10.1016/j.technovation.2019. 102098. 3. Yang, W., Liu W.: Research on the Internet transformation model of manufacturing enterprises under the framework of epigenetic economic dynamics theory. Journal Science and Technology Progress and Countermeasures, 36, 78–84 (2019). 4. Nambisan, S., Lyytinen, K., Majchrzak, A., Song, M.: Digital Innovation Management: Reinventing Innovation Management Research in a Digital World. MIS Quarterly. 41, 223–238 (2017). https://doi.org/10.25300/misq/2017/41:1.03. 5. Holmström, J.: Recombination in digital innovation: Challenges, opportunities, and the importance of a theoretical framework. Information and Organization. 28, 107–110 (2018). https:// doi.org/10.1016/j.infoandorg.2018.04.002. 6. Peters, B.G.: Is governance for everybody? Policy and Society. 33, 301–306 (2014). https:// doi.org/10.1016/j.polsoc.2014.10.005. 7. Jin Chen, Jiaxue Li.: The innovation paradigm under digital technology. Information and Management Research. 5, 1–9 (2020). 8. Hopkins, M.M., Crane, P., Nightingale, P., Baden-Fuller, C.: Moving from non-interventionism to industrial strategy: The roles of tentative and definitive governance in support of the UK biotech sector. Research Policy. 48, 1113–1127 (2019). https://doi.org/10.1016/j.respol.2019. 01.008. 9. Reale, F.: Governing innovation systems: A Parsonian social systems perspective. Technology in Society. 59, 101174 (2019). https://doi.org/10.1016/j.techsoc.2019.101174. 10. Rindfleisch, A., O’Hern, M., Sachdev, V.: The Digital Revolution, 3D Printing, and Innovation as Data. Journal of Product Innovation Management. 34, 681–690 (2017). https://doi.org/10. 1111/jpim.12402. 11. Wareham, J., Fox, P.B., Cano Giner, J.L.: Technology Ecosystem Governance. Organization Science. 25, 1195–1215 (2014). https://doi.org/10.1287/orsc.2014.0895. 12. Kuhlmann, S., Stegmaier, P., Konrad, K.: The tentative governance of emerging science and technology—A conceptual introduction. Research Policy. 48, 1091–1097 (2019). https://doi. org/10.1016/j.respol.2019.01.006. 13. Yang W., Liu J., Zhou Q.: Formation mechanism of the digital ecosystem in traditional industries: a polycentric governance perspective. Journal of University of Electronic Science and Technology (Social Sciences Edition). 22, 11–17 (2020).
Factors Influencing Technopreneurs’ Adoption of Islamic Banking Products Mohd Zulkifli Muhammad , Ahmad Ridhuwan Abdullah , Noormariana Mohd Din, Azwan Abdullah , Wan Farha Wan Zulkiffli , Razman Hafifi Redzuan , and Mohd Ikhwan Aziz
Abstract As an alternative banking system, Islamic banking provides a variety of services throughout the world. These services are utilised by many types of bank customers, including technopreneurs, in their regular financial and banking transactions. Nevertheless, the knowledge and adoption rate of these services in Malaysia appears to be below expectations. This is due to issues such as confusion of information and ignorance about the Islamic bank’s marketing of banking products. In addition, most individuals will select the bank they perceive to be the most profitable and easy to use. Thus, this study was conducted to identify the knowledge of technopreneurs in Kelantan regarding Islamic banking products, to analyse the factors that influence technopreneurs in Kelantan to adopt Islamic banking products, and to assess the level of usage of technopreneurs towards Islamic banking products. Several interviewees were selected to participate in this study, where a qualitative approach and an interview method were employed. Furthermore, ATLAS.ti analysis software and thematic analysis method were used in this study. The results indicated that technopreneurs in Kelantan have just a moderate awareness of Islamic banking products. Furthermore, it has been emphasized that the adherence to Sharia principles, recognition of the benefits of utilizing Islamic banking, improved awareness, and educational initiatives are key factors that impact the decision of technopreneurs in Kelantan to utilize Islamic banking products. The utilisation rate of Islamic banking products among technopreneurs is high; yet, some of them do not comprehend the concept of Islamic banking in its entirety. In general, the surrounding population plays a crucial role in promoting awareness of Islamic banking products. Keywords Adoption · Awareness · Preference · Islamic banking products · Technopreneurs
M. Z. Muhammad (B) · A. R. Abdullah · N. Mohd Din · A. Abdullah · W. F. Wan Zulkiffli · R. H. Redzuan · M. I. Aziz Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, City Campus, 16100 Kota Bharu, Kelantan, Malaysia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_3
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1 Introduction Islamic awareness helps Malaysia develop Islamic banking. Malaysia has promoted a comprehensive Islamic banking system, according to Ibrahim [8]. These Muslims wish to follow the Islamic way of life, including using Islamic banking products. Muslims account for 61.3% of the population, which is a huge market for Islamic banking. Islamic banking forbids riba, gharar, and maysir [23]. It offers fixed repayment rates and profit-sharing dividends to investors. Islamic banks have many differences from conventional banks. All product features, dealings, transactions, business approach, investment focus, and responsibility are derived from sharia law [15]. By utilising numerous Islamic banking principles, such as tawarruq (reverse murabahah), mudarabah (profit sharing), musharakah (partnership), and ijarah (lease), Islamic banking institutions in Malaysia have a great deal of dynamicity, creativity, and alternative when developing Islamic banking products. Moreover, Islamic banking establishes a higher bar for investments and promotes greater responsibility and risk management by emphasising the requirement for transactions to be supported by legitimate trade or business-related activity. There are Muslims in this country who still use conventional banking products, thus, they have little exposure to Islamic banking. Muslims who use conventional banking products think they will make more money, but they should know about their prohibited practices. Well-educated Muslims should apply sharia law to their finances and lives to be blessed in this world and the Hereafter [6]. Given the situation in which numerous Islamic banks offer internet banking services and a significant number of subscribers, consumers’ usage of internet banking necessitates acceptance of the technology, which necessitates a shift in their behaviour patterns. Therefore, consumer adoption becomes a significant factor in determining the rate of change in the Islamic banking industry [18]. A number of research have examined the factors that influence the adoption of Islamic banking services in Malaysia [10, 16, 17, 19, 31, 32]. Even though researchers have researched and replicated using numerous respondents or informants, there are no studies on the acceptance of Islamic banking products among Malaysian technopreneurs. Therefore, this research examines technopreneurs’ adoption of Islamic banking products in Kelantan. Positively, Kelantan’s emphasis on Islamic values will help spread Islamic banking knowledge, including among technopreneurs. Technopreneurs are among educated people who are more aware about technological development, including banking products [21]. Thus, their perception of Islamic banking products would be useful, as it is their role as Muslims to follow Islamic law by using such products. This research aims to examine technopreneurs’ understanding of Islamic banking products, the factors that influence them to adopt the aforementioned products. Islamic banks offer many products, but some Muslims do not understand them. They may be using conventional banking products while adhering to Islamic law as Muslims. Why do technopreneurs use Islamic banking products, and do they fully understand them?
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2 Literature Review A total of four (4) themes have been found in the literature review, namely, awareness of Islamic banking products, customer’s preference towards Islamic banking products, adoption of Islamic banking products, and the distinction between Islamic banking and conventional banking products. The themes are discussed as below.
2.1 Awareness Towards Islamic Banking Products According to Fathonih et al. [7], the informants’ awareness of Islamic banking products is relatively high. Nevertheless, based on the interview results, Muslim business owners are interested in a financing system that does not hinder establishing their firm, as long as it adheres to Islamic standards. Furthermore, Islam and Rahman [9] discovered that the majority of their informants lacked a basic comprehension of Islamic banking terminology in their study of Indian Muslims. This assertion is corroborated by the findings of Butt et al. [5]. According to the survey, users and non-users are unaware that Islamic banking is fully interest-free. In addition, this study found that consumers believe that Islamic banking is merely a facade and do not practice Islamic banking. Furthermore, according to Ahmad and Harun [1], several Islamic banking companies fail to successfully promote their Islamic banking products to consumers. As a result, most customers are only vaguely familiar with Islamic banking products. In addition, research conducted in Pakistan by Tara et al. [30] found that the informants’ understanding about Islamic banking products and services is still low. However, Khattak [14] found that for several common products, such as current accounts and deposit accounts, the level of client knowledge of Islamic banking products is high.
2.2 Customer Preference Towards Islamic Banking Products The level of community influence, religious requirements, and awareness of Islamic banking products affect customers’ preference for Islamic banking systems. In typical products such as current and saving accounts, customer awareness regarding the Islamic banking intersection is higher [2, 25]. However, most clients are preoccupied with Islamic financial products terms, such as murabahah and ijarah. Junaidi et al. [12] concurred that customer preference for the Islamic banking system is due to knowledge. Previous studies have demonstrated that many consumers lack an adequate understanding of Islamic financial products, particularly the differences between Islamic and non-Islamic products. As depicted by Islamic economics, Islamic financial focuses on casual products that strive for equity, accountability, and impartiality.
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Customers must establish the habit of selecting and attempting to purchase Islamic banking products [24]. However, many additional factors influence a customer’s decision to use an Islamic banking system, including the efficiency of bank transactions, the short working hours, and the intimate interaction with customers [25]. Johan et al. [11] and Mohd Thas Thaker et al. [19] concur that Muslims favour Islamic banking, while non-Muslims recognise that Islamic banking is relevant to Muslims in general.
2.3 Adoption of Islamic Banking Products Based on Shaikh and Karjaluoto [29], the term “adoption” can be defined as accepting something that will be put into effect against that individual. The global adoption of Islamic banking products has been the subject of numerous studies. Specifically, according to the study by Bananuka et al. [4], the strategies used by financial institutions in ensuring the adoption of Islamic banking are now known such as creating awareness of Islamic banking’s mode of operation among existing and potential clients. In addition, Islam and Rahman [9] demonstrated that Islamic financial services organisations may have difficulty educating the public about their operations and that customer awareness is, therefore, essential for adopting Islamic banking services. According to Mahdzan et al. [16] the authors investigated the adoption of Islamic banking services in Malaysia. They discovered that understanding Islamic banking concepts and perceived advantages substantially impact the adoption of Islamic banking services. In another study, Bananuka et al. [4] discovered that attitude, subjective norm, and religiosity are all significant predictors of intention to adopt Islamic banking in Uganda. However, the hierarchical regression model revealed that the subjective norm ceases to be a substantial predictor once attitude and religiosity are added to the model. Moreover, according to the study by Butt et al. [5], users and non-users believe Islamic banking is not entirely interest-free. In addition, consumers believe that Islamic banking (IB) is merely a facade and does not truly practise Islamic banking. In addition, religion is not a significant factor in attracting new users as opposed to other vital elements in marketing Islamic banking, including service quality, convenience, branch network, etc.
2.4 The Distinction Between Islamic Banking and Conventional Banking Products The philosophical and operational differences between Islamic banking and conventional banking pertain to the performance of the banking function in a financial institution. According to Asad et al. [3], Islamic banking is a new system that replaces the conventional with a sharia-compliant operation. In addition, they concurred that
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the operation of each bank’s system is distinct from the other. Islamic banking and conventional banking operate differently regarding deposits, financing and investments, credit cards, loans, leasing, and other products [22]. Additionally, the conventional banking is more profitable than the Islamic banking. This is due to the volume of loans and deposits that will positively affect the bank’s profit. They stated that bank managers and administrators must emphasise the interest earned on loans and the return payables on customers’ deposits to generate a more significant profit [28]. According to Rahmi et al. [27], Malaysian corporate customers, who are predominantly Muslim, use Islamic banking products and services infrequently, despite knowing that Muslims are prohibited from using conventional banking systems due to the interest forbidden by Islam.
3 Research Methodology Using a qualitative approach, descriptive research and exploratory research methods are used to assess the understanding, analyse the factors and examine the level of adoption of Islamic banking products among technopreneurs in Kelantan. The data for this study is derived from primary (through interviews) and secondary sources. Through primary sources, the researchers construct an interview and collect data on individuals that can be observable, measurable, and reproducible. Five (5) technopreneurs underwent in-depth interviews in several districts in Kelantan. They are technopreneurs in various fields, for example, gadget clinic owner, computer store owner and phone store owner. Kelantan was selected because there are many Muslim entrepreneurs in the state, as well as many Muslim entrepreneurs active in the technology sector. As a result, Kelantan is an appropriate choice for the study’s chosen location. Secondary data are used to complete the study by compiling data collected from journal articles, conference papers, books, and others [26]. Secondary data used in this study is divided into two parts; firstly, primary data, in which the researcher uses al-Quran, Hadith, al-Quran interpretation, and Syarh Hadith; secondly, general data are used to generate related information that are published in various publications such as journal articles, conference papers, books and others. ATLAS.ti software was used to analyse the data and ensure the accuracy of the information examined efficiently. The procedure of the study is divided into three stages, the first of which is the study’s initiation, including the document preparation. The second stage entails determining the study’s methodology to be employed in this investigation. Meanwhile, the third stage is to evaluate factors and determine the extent to which technopreneurs in Kelantan use Islamic banking products.
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4 Findings and Discussion The interviews conducted with five (5) respondents according to the study’s objectives. There are three main objectives: understanding, factors influencing and level of usage toward Islamic banking products. To meet the first objective, understanding Islamic banking products, each respondent was aware that all practices in offering Islamic banking products are sharia-compliant. However, the perspectives of the five (5) respondents regarding the tax rate vary. Some respondents believe that the Islamic banking tax rate is relatively higher than that of conventional banking. Some argue that the Islamic banking tax rate is lower than that of a conventional banking. Moreover, respondents comprehend the meaning of Islamic banking products. The respondents informed that Islamic banking products prohibit riba, gharar, and maysir under the sharia law. The results of this study are similar to what was found by Fathonih et al. [7], which concluded that the informants’ awareness of Islamic banking products is relatively high. However, this finding is different from Islam and Rahman [9], Butt et al. [5], Ahmad and Harun [1], and Tara et al. [30]. The second objective are the factors that encourage them to choosing Islamic banking. The average respondents stated the factors such as sharia compliance, lowest tax rates, and awareness that prompted them to choose Islamic banking products. As the respondents are Muslims, they preferred financial institutions that are shariacompliant. The respondents want to have blessing from Allah SWT in their wealth management, so that they are not guilty of doing illegal things and they will not be asked Hereafter. As Islamic banking offered the lowest rate, the respondents are also being considered to choose Islamic banking. As the respondents of this study are technopreneurs in Kelantan, they are well informed about the pros and cons of Islamic banking. Thus, the utilisation rate of Islamic banking among technopreneurs in Kelantan is high because they know their obligations as Muslims to live under the sharia law. Technopreneurs in Kelantan extensively use Islamic banking products for this reason. These are the findings of the study’s third objective. These findings are in line with Muhammad et al. [24], Amin et al. [2], Naim et al. [25] and Junaidi et al. [12] who viewed the rate of Islamic banking utilisation among Muslims is high. Based on the earlier findings, several arguments for the literature review outlined in Sect. 2 have been developed. There are five points: adoption, awareness, customer preferences, comparison, and distinction between Islamic and conventional banking products. This justification’s network is depicted in Fig. 1. Figure 1 shows the themes and its subthemes in this research. The first theme is the adoption of Islamic banking products. The subthemes of this theme are the name of the bank and the types of products used. According to Mahdzan et al. [16], the adoption of Islamic banking products and services was measured by asking, “Are you an Islamic banking customer?” to determine either that person’s adoption of Islamic banking services. Overall, its claims that the adoption of Islamic banking products is a dependent variable or factor used to answer the question of why people adopt or accept Islamic banking services as their choice. Based on the interviews
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Fig. 1 The network view of the themes and the subthemes
conducted with five (5) technopreneurs in Kelantan, all the respondents in this study used the products of Islamic banking. Respondent A made vehicle financing and saving at Bank Islam Malaysia Berhad. For business purposes, Respondent A has used the current account facility in Bank Islam Malaysia Berhad. Respondents B and E stated that they used Islamic banking products, which are saving accounts in several Islamic banks such as Maybank Islamic Bank, Bank Islam Malaysia Berhad, and Bank Muamalat. They also used the financing facility in Islamic banking, namely, a home loan at Maybank Islamic Bank. Meanwhile, Respondents C and D used the Islamic Bank to save money and the Bank Islam Malaysia Berhad overdraft facility. They also made gold investment in Maybank Islamic Bank, namely, Maybank Islamic Gold Account-i (MIGA-i). The second theme is awareness of Islamic banking products. The subthemes are education and sources. According to Keong et al. [13], the informants’ awareness level toward Islamic banking products is relatively high, with 76.1% as opposed to 23.9% of those who are unaware of this matter. Muhammad et al. [20] mentioned that the effective communications strategy on how Islamic banking operates would be enhanced to create awareness. Meanwhile, according to Butt et al. [5], some Islamic banking institutions have not fully educated their customers about Islamic banking products. Respondents A and D mentioned that they have used a product from Islamic
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banking, but they are unsure about the product’s name and characteristics. Their awareness is also only limited to the rate of Islamic banking products. Respondents A and D lack sufficient knowledge about Islamic banking, which lead him to prefer conventional banking in order to receive better products than those provided by Islamic banking. Respondent B stated that al-Falah or, in other words, to follow Allah’s ways, he needs to follow sharia. Islamic banking products are the shariacompliant banking system rather than the conventional one that applies riba, gharar, and maysir; thus, Respondent B chose Islamic banking products. Respondent B said that he used Islamic banking products because he wants Allah’s blessings in life and in wealth. Respondents C and E also stated an awareness starts from education. Although they adopted Islamic banking products, there are still some Islamic banking products that they are not aware of. This problem is due to the lack of information, whereby they did not receive enough education about Islamic banking products. The third theme is a comparison between Islamic banking and conventional banking. There are three subthemes under the third theme: the rate, the concept of banking practice, and the types of products. According to Asad et al. [3], Islamic and conventional banking have similarities and dissimilarities. Islamic banking is a system of ethical banking, and its practice is based on the sharia law embodied in the Holy Qur’an, Hadith, and other Islamic jurisprudence sources. Trading involving elements prohibited in Islam is not permitted. Based on the interviews conducted, Respondents A and D state that the difference they can observe is in terms of tax imposed by the aforementioned two types of banks. They added that their main factor for choosing Islamic banking is due to the fixed tax rate as opposed to the variable tax rate set by conventional banks. Meanwhile, Respondent B believes that the tax difference between the abovementioned two types of banks is not much different, where the said respondent gave an example of home financing and other loans between Islamic banking and conventional banking. From the point of view of Respondents C and E, the difference can be seen in terms of the concept used. In Islamic banking, this organisation operates on the concept of sharia, which is to avoid riba, gharar, and maysir. Meanwhile, conventional banking practices are principles that do not follow sharias. In addition, Respondents C and E noted the differences in products issued by the bank. According to them, generally, most Islamic and conventional banking products are the same. What differentiates these two organisations is that Islamic banking products have aqad in signing the agreement between the bank and customer and are sharia-compliant, while conventional banking does not have aqad and is non-sharia-compliant. The fourth theme is customer preference for Islamic banking products. The subthemes are the reasons why they chose to use Islamic banking products. In an interview that has been done, Respondents A and E stated that they used Islamic banking products because of their religious obligation. Profits from the investment are not the main factor for why customers are choosing Islamic banking, rather, it is actually because of the religion itself. This view is similar to the study by Johan et al. [11] and Mohd Thas Thaker et al. [18]. Respondents B and D also stated that they used Islamic banking products, as they think of themselves as Muslims. Respondents B said that:
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I used all the financing products from an Islamic bank as I know the Islamic bank does not practice prohibited elements like riba, gharar, and maysir. Apart from that, I use Islamic banking products because I want to get Allah’s pleasure and success in this world and in the Hereafter
Meanwhile, Respondent C stated that he, as a Muslim, must follow the Islamic law in his life, included in the financing aspect. He stated that: I used all the products and services for financing from Islamic banking because I know about mostly the operations that have been practised by Islamic banking commonly said as the prohibited riba, gharar, and maysir
He also stated that with the existence of Islamic banking, people, especially Muslims, can choose to use Islamic banking products to manage their money in a halal way, as demanded in Islam. From the discussion above, it can be concluded that the respondents agreed that Islamic banking is sharia-compliant. However, they have different opinions about the rate (financing rate or profit rate) offered by Islamic banking and conventional banking. The respondents know that it is their duty to use Islamic banking products because they are free of riba, gharar, and maysir. Besides that, the respondents said Islamic banking products are competitive and have the lowest financing rate. Apart from that, most Kelantan’s technopreneurs have been using Islamic banking products, such as financing, savings, etc., for various purposes.
5 Conclusion Preliminary surveys show that technopreneurs’ adoption of Islamic banking products is at a good level, but their understanding of Islamic banking is still below average. Even though Malaysia is among the most prominent Islamic banking hubs in the world and most Malaysians are Muslims, knowledge and understanding of Islamic banking are still lacking. Most of them chose to adopt Islamic banking due to the principle of sharia compliance, but they still lack knowledge of the other Islamic banking concepts. The findings also indicate that the significant factors influencing technopreneurs in Kelantan in the use of Islamic banking products are the principles of sharia compliance, the tax rate imposed, and the level of knowledge. These factors have influenced technopreneurs in their adoption of Islamic banking rather than conventional banking. As a Muslim, they should take care of the five essential objectives of the maqasid sharia, which are to preserve religion, life, intellect, wealth, and heredity. Therefore, the principle of sharia is strongly emphasised in all matters of Islamic finance to preserve the maqasid sharia that is blessed by Allah SWT in the world and in the Hereafter. Finally, the third objective question has been answered by studying the level of usage of Islamic banking products among technopreneurs in Kelantan. Overall, the majority of technopreneurs in Kelantan are Islamic banking users. This is proven when respondents stated that they are confident that many of their colleagues in
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the technology business have used Islamic banking. However, those who deal with Islamic banking are prepared to accept any return so long as the bank observes Islamic sharia principles. They trust the bank with regard to their money and its ability to satisfy religious concerns. Acknowledgements The authors would like to thank the students, namely, Nur Hafizah Mohamad Redzuan, Nur Ismaniza Misman, Nur Najihah Ismail Nur, and Najihah Kamaruddin for their assistance in completing this research.
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16. Mahdzan, N.S., Zainudin, R., Au, S.: The adoption of Islamic banking services in Malaysia. Journal of Islamic Marketing, 8(3), 496–512 (2017). 17. Mariadas, P.A., Murthy, U.: Factors influencing the adoption of Islamic banking in Malaysia. International Journal of Business and Management, 12(11), 187–193 (2017). 18. Mohd Thas Thaker, H., Mohd Thas Thaker, M.A., Khaliq, A., Allah Pitchay, A., Iqbal Hussain, H.: Behavioural intention and adoption of internet banking among clients’ of Islamic banks in Malaysia: an analysis using UTAUT2. Journal of Islamic Marketing, 13(5), 1171–1197 (2020a). 19. Mohd Thas Thaker, H., Sakaran, K.C., Nanairan, N.M., Thaker, M.A.M.T., Hussain, H.I.: Drivers of loyalty among non-Muslims towards Islamic banking in Malaysia: evidence from SmartPLS. International Journal of Islamic and Middle Eastern Finance and Management, 13(2), 281–302 (2020b). 20. Muhammad, A.M., Basha, M.B., Al-Hafidh, G.: UAE Islamic banking promotional strategies: an empirical review. Journal of Islamic Marketing, 11, 2, 405–422 (2019). 21. Muhammad, M.Z., Amboala, T. Mohd Din, N., Ghazali, M.F., Redzuan, R.H.: A model development of Shariah principle in e-payment: the case of Malaysia. Lecture Notes in Networks and Systems 194, 1758–1771 (2021a). 22. Muhammad, M.Z., Muhamad, F.H., Muhamad, M., Ibrahim, W.M.Y.W., Kesuma, T.M.: Why Kelantan entrepreneurs prefer takaful over conventional insurance? Lecture Notes in Networks and Systems, 194, 1146–1152 (2021b). 23. Muhammad, M.Z., Muhamad, F.H., Doktoralina, C.M., Mukhtar, D., Ghazali, M.F., Rahman, M.K., Mohd Din, N.: Online banking of Islamic banks: the customer’s perceptions in Kelantan. Lecture Notes in Networks and Systems, 487, 859–873 (2023a). 24. Muhammad, M.Z., Mat Yunoh, M.N., Muhamad, F.H., Zainol, N.R., Mohd Din, N. Yasoa’, M.R., Abdullah, A.R., Abd Hamid, N.F.: The assumption of unlimited human wants (AUHW) in Islamic economics: a tasawur perspective. Lecture Notes in Networks and Systems, 487, 907–924 (2023b). 25. Naim, A.M., Hamid, M.L.A., Wahab, M.Z.H.: The roles of lifestyle, future need and customer preferences in customer’s satisfaction on Islamic banks products and services. The Journal of Muamalat and Islamic Finance Research, 60–76 (2019). 26. Pandey, P., Pandey, M.M.: Research methodology tools and techniques. Romania: Bridge Center (2021). 27. Rahmi, M., Azma, N., Obad, F.M., Zaim, M., Rahman, M.: Perceptions of Islamic banking products: evidence from Malaysia. Asian Journal of Business Environment, 10(3), 35–42 (2020). 28. Salman, A., Nawaz, H.: Islamic financial system and conventional banking: a comparison. Arab Economic and Business Journal, 13(2), 155–167 (2018). 29. Shaikh, A.A., Karjaluoto, H.: Mobile banking adoption: A literature review. Telematics and Informatics, 32(1), 129–142 (2015). 30. Tara, N., Irshad, M., Khan, M.R., Yamin, M., Rizwan, M.: Factors influencing adoption of Islamic banking: A study from Pakistan. Journal of Public Administration and Governance, 4(3), 352–367 (2014). 31. Thambiah, S., Eze, U.C., Tan, K.S., Nathan, R.J., Lai, K.P.: Conceptual framework for the adoption of Islamic retail banking services in Malaysia. Journal of Electronic Banking Systems, 1, 1–10 (2010). 32. Thambiah, S., Ramanathan, S., Mazumder, M.N.H.: The determinants of Islamic retail banking adoption in Malaysia. International Business & Economics Research Journal (IBER), 11(4), 437–442 (2012).
Practices of Hibah (Inter Vivos Gift) Among Technopreneurs in Kelantan Mohd Zulkifli Muhammad , Siti Rohana Mohamad , Mohd Afifie Mohd Alwi , Yusrinadini Zahirah Md. Isa Yusuff , Siti Salwani Abdullah , Dzulkifli Mukhtar , and Md Zaki Muhamad Hasan
Abstract Hibah (inter vivos gift) is a component of Islamic wealth management that refers to a material or immaterial gift. The primary objective of this study is to investigate the understanding and practices of hibah among technopreneurs in Kelantan. This study also seeks to determine whether or not individuals, particularly technopreneurs, can manage and grow their wealth responsibly and equitably. This is crucial because if Muslims continue to disregard their property management, unclaimed assets will continue to grow and be frozen. Thus, this study aims to determine the level of understanding and practices of hibah among technopreneurs in Kelantan. Data were gathered through interviews with technopreneurs, and thematic analysis was conducted using the ATLAS.ti data analysis software. Overall, the informants have knowledge of hibah and some of them have practised it. Although hibah has not been fully grasped by the informants, they are familiar with it. This study will provide the policymaker with recommendations for addressing any state-level issues. In addition, it enables the state Islamic religious council to play an essential role in promoting the understanding and practising of hibah among technopreneurs and the Muslim community. Keywords Islamic wealth management · Hibah · Technopreneurs · Understanding · Practices
1 Introduction Islamic wealth management entails an orderly property management system for the welfare of life in this world and the hereafter. In general, wealth and property (mal) refer to what an individual possesses in the form of goods or advantages M. Z. Muhammad (B) · S. R. Mohamad · M. A. Mohd Alwi · Y. Z. Md. Isa Yusuff · S. S. Abdullah · D. Mukhtar · Md Z. Muhamad Hasan Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, City Campus, 16100 Kota Bharu, Kelantan, Malaysia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_4
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[36]. The two components of Islamic wealth management are wealth management during life and wealth management after death. Hibah, wills, waqf, philanthropy, and vows are some forms of estate planning utilised during one’s lifetime [8]. Regarding language, hibah (inter vivos gift) refers to any type of gift, physical or otherwise. It is derived from the Arabic word ‘wahaba’, which means gratuitous giving and includes gifts and charities. It is essential to examine the understanding and practises of hibah among technopreneurs in Kota Bharu, Kelantan. The selected population was technopreneurs in Kota Bharu, Kelantan, hence the samples included respondents from predominantly Muslim areas with several businesses and a state with a majority of Muslim population [17]. This study focused on technopreneurs given that the technology industry expanded significantly following the COVID-19 pandemic, particularly in e-commerce [35]. These events also led to an indirect increase in their income and assets. In order to secure the property so that it can be inherited by the family and prevent any property conflicts in the future, this study attempts to examine the assets owned by technopreneurs from the perspective of the hibah process implemented [6, 18, 35]. This study investigates the understanding and practises of hibah (inter vivos gift) among technopreneurs in Kota Bharu, Kelantan. The research findings may reveal the knowledge and practise of hibah (inter vivos gift) among technopreneurs in the study area.
2 Literature Review This study consists solely of a literature review based on multiple sources, and numerous articles can be categorised according to various themes. These themes provide an overview of Islamic wealth management, the concept of hibah, its practises, and its relevance. Through the concept of hibah, the formation of hibah, types of hibah, and cancellation of hibah are explained. In addition, the discussion of the literature review and the framework will be covered in this section. The word ‘property’ was derived from the Arabic word, which refers to ownership of an asset known as ‘mal’ [7]. Islam does not prohibit humans from amassing wealth for pleasure in the world, but it also encourages people to amass assets to leave to their families after death [15]. The deceased’s family should be left in a comfortable state rather than in a dire situation where they must beg from others. Islam specifies the method for acquiring property, which is that property must be acquired properly [24]. It is impossible to separate the relationship between wealth and technopreneurs given that every technopreneur who operates a business will profit. Eventually, the resulting profit will create wealth. Every piece of property acquired by technopreneurs must be distributed to other Muslims. Allah SWT stated in Surah al-Baqarah verse 261 that Allah encourages His servants to spend their wealth in His way. Comparisons (donations) those who spend their possessions in the way of Allah are like a seed that grows to produce seven stems: every stem also contains a hundred seeds. And
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remember Allah will multiply the reward for whom He will. And Allah is the All-Mighty, the Wise. (al-Baqarah, 2:261)
2.1 The Concept of Hibah Hibah is one method of Islamic property management. It has intimate ties to bequests, faraid, waqf, and philanthropy. All of them are tools for wealth management that Muslims can utilise to accommodate inheritance regulations [13]. Hibah and wills are similar in that both involve the transfer of property ownership without compensation. However, there are variations when a hibah is included in the contractual category that requires the grantor’s and grantee’s approval [12]. While wills are not contracts, they are merely a form of tasarruf from the testator [4, 29].
2.2 Formation of Hibah Formation of hibah occurs once all pillar and hibah conditions have been satisfied [27]. Setting hibah as an agreement with norms and restrictions distinguishes it from hibah with gifts and charities, all of which have tabarru aspects. Hanafi scholars hold that the only pillars of hibah are sighah, ijab, and qabul [33]. While jurists have established that the donor (wahib) is the primary element in the creation of hibah, the hibah receiver (mauhub lahu) and the donated items are also significant (mauhub). According to Islamic law, three (3) requirements must be met for the hibah to be legally valid on the Islamic side. Among the aspects are the donor’s expression of a desire to hibah a gift (ijab), the receiver’s acceptance statement, either explicitly or implicitly (qabul), and the occurrence of qabd on mawhub from the hibah recipient, either actual or constructive [21, 22].
2.3 Types of Hibah There are numerous types of hibah as follows: Absolute Hibah Absolute hibah, also known as al-hibah al-munjizah, is exhibited when someone gives hibah on their money in the form of ordinary without prescribing any conditions to enforce the hibah or is defined as gifts perpetuated throughout life without a stipulation by hibah givers [21]. In this instance, the absolute will have a hibah effect if certain requirements and pillars are met. Among the effects that are transferred, the title of hibah is permanent and cannot be limited, and the title of ‘ayn hibah provider and mawhub’s benefits will be lost [22].
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Conditional Hibah Conditional hibah is subdivided into hibah umra, ruqba, and hibah rewards. Hibah ruqba refers to granting a hibah basis from one individual to another. If one of the parties dies, the property is returned to the remaining party [22]. Imam Abu Hanifah provides similar definitions for the idea of hibah ruqba concerning a death provider. Hibah’s assertion that ruqba is transferring property title to another party after his death [10].
2.4 The Revocation of Hibah Revocation of the hibah (ruju) refers to the hibah’s withdrawal from the giver to the receiver following the property transfer (qabd). They permit the withdrawal of funds before their transmission to the recipient in the form of measured and weighed property under the Hanbali school [25]. In addition, there are Muslims who fear that their property will be exploited for ill-gotten gain and that the recipient will breach the hibah agreement, knowing that once the hibah has been made, it cannot be revoked because property ownership has already been passed to the recipient. Consequently, revocation is essentially impossible [30]. According to the Maliki school, hibah cannot be revoked because the pipeline is deemed ideal with simply the contract and no need for qabd. This exemption is made in two situations: when the hibah is awarded as a reward and when a father responds to the hibah he made to his son. However, this ruju is contingent on the father not anticipating the recompense of Allah SWT [34].
2.5 Practice of Hibah The practice of hibah is encouraged in Islam. This practice is demonstrated in accordance with the Quran, Sunnah, and Ijma [27]. Some verses in the Qur’an that advocate hibah, such as Surah Al-Baqarah verse 177, where Allah SWT encourages it: … and gives wealth, despite the love for it, to relatives, orphans, the needy, the traveller, those who ask [for help], and for freeing slaves. (al-Baqarah, 2:177)
The Muslim population in Malaysia has historically engaged in hibah traditions or gift-giving. There is evidence that this hibah practice began as early as the 1900s but was not as organised as it is today [23]. In reality, there is no regulation regarding the hibah awarded in Malaysia. According to Abd Wahab et al. [1], this hibah is implemented in the wealth management industry. In this instance, Islam highly emphasises systematic and efficient property management to ensure that every individual achieves their appropriate rights.
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3 Methodology A few approaches can be employed by researchers when conducting qualitative research. In this study, the researcher chose to conduct interviews since they are effective methods to successfully elicit pertinent information or comments from informants. In this strategy, any topic the informant provides is considered valuable information for a study. By investigating a specific issue, scholars also gain a more profound comprehension and breadth of knowledge using this method [9, 32]. Consequently, during the data analysis phase of the research, records are compiled based on informant replies to each question and the most prominent themes derived from the interviews conducted following data collection. Hence, the eligible technopreneurs were first chosen before selecting a minimum of five (5) technopreneurs from Kota Bharu for the main interview to obtain more information and their opinion on the research topic. The interview session continued until data saturation, and the number of interviewees was determined based on the amount of data received [19]. All the gathered data were subjected to thematic analysis using ATLAS.ti. ATLAS.ti program is loaded with narrative text acquired, such as responses to open-ended questions on the interview questions or observer notes. The qualitative data were coded utilising the specified coding structure: selective, in vivo, open, or emerging. The particular coding construct enables researchers to determine the relationship between various concepts identified in the topic’s literature review [16].
4 Findings and Discussion ATLAS.ti version 9 was used to obtain the network view, as shown in Fig. 1. To achieve the goals of these studies, the researchers selected five (5) informants for this study. The three themes obtained were the concept of hibah and the practice of hibah among technopreneurs in Kota Bharu, Kelantan. The themes were further divided into various segments. Overall, the researchers discovered many points that contradicted the themes during the interviews with the informants. These contributions offer viewpoints that might aid in the development of this research. In essence, although they were not fully comprehended, the informants had some exposure to hibah due to a particular circumstance. According to the interview results, most informants recognised and understood the exact meaning of hibah, a present or gift to a person while he is still living. Informants 1 and 2 explained the aim of hibah with clarity while informant 2 understood but did not elaborate on the facts during the interview session. Additionally, informants 4 and 5 affirmed that they do not get the hibah notion. According to informants 1 and 2, hibah is a present given to a living person. This fact parallels the literature review cited by Muda [27] and Kamarudin et al. [22], which indicates that hibah and will share similar characteristics in that both involve the transfer of property ownership for free and without response. Nevertheless, there are differences between the two
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Fig. 1 Network view ATLAS.ti of the understanding and practices of hibah among technopreneurs in Kota Bharu, Kelantan
when a hibah is included in the contractual category that requires the consent of both parties’ grantees. Considering the first objective, which is to determine the level of understanding of hibah among technopreneurs in Kota Bharu, Kelantan, the majority of informants have the same response or perspective, namely that the process of hibah in Malaysian wealth transfer is rarely positive [14]. Thus, contemporary Muslims should expand their investigation and select the most prudent means of wealth distribution. This is because hibah is an alternative or superior method to faraid and wasiyyah for distributing wealth. According to Bakar et al. [13] and Muda [27], hibah and wasiyyah have similar characteristics in that they both involve the transfer of property ownership for free and without consideration. However, there are differences between the two when hibah is included in the contractual category that requires the consent of both parties’ grantees. Most informants feel that hibah should be utilised by Muslims, particularly technopreneurs, to transfer their money or business since it might alleviate problems associated with the distribution of wealth, such as sibling disputes [28]. Except for informant 4, who does not apply hibah in his life, most informants, (i.e., 1, 2, 3 and 5) have their manner and viewpoint on the concept of the hibah process. Informants 1 and 5 began learning about hibah they gave a house to their siblings as a hibah. Meanwhile, informant 2 learned about hibah when his mother used it to divide her wealth many years ago. These findings reflect that hibah can even be practised between family members [11]. The third informant stated that she began learning hibah in school. She had been exposed to hibah since her school days,
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and she studied the concept in depth when it was applied by her family for wealth distribution. Informant 4 had also learned hibah in school, but she did not use it after that, thereby limiting her comprehension of the hibah concept. It may be inferred that the majority learned the concept of hibah from experience while others learned it solely in school [10]. This study focuses primarily on the knowledge of the hibah concept and whether all informants are familiar with or have a solid grasp of it. According to the interviews, most informants comprehend the notion of hibah, including its method and theory. It may be inferred that technopreneurs in Kota Bharu, Kelantan, have a moderate comprehension of the idea of hibah. As a result of learning the theory and practice of hibah in this manner to transfer wealth, these technopreneurs have a solid understanding of hibah. However, only one informant in this interview does not comprehensively comprehend the concept of hibah, as she has no experience with the distribution of wealth by hibah instruments and has not disclosed or clarified the concept sufficiently [31]. Most individuals are not exposed to hibah in their lives, which explains the low knowledge and the lack of hibah practices among people today. Thus, the level of hibah knowledge among technopreneurs is influenced by their hibah activities. The second purpose of this study is to investigate the hibah practices of the technopreneurs in Kota Bharu, Kelantan. Resultantly, most of the informants practice hibah in their daily lives. Although most of them are familiar with the hibah, only a few use it to divide their wealth or property. In this analysis, all informants claimed to have limited knowledge of the hibah and shared information about it in various ways. For instance, they were exposed to the concept in school or college, and one of the informants knows that their family practices the hibah in property distribution. For them, hibah is one of the simplest and quickest methods for distributing property because it requires a few administrative steps. As a result, they desired to employ hibah as the instrument for distributing their holdings. According to Islamic law, three requirements must be met for the hibah to be legally valid Islamically. Among the aspects are the donor’s expression of the desire to hibah a gift (ijab), the receiver’s acceptance statement, either explicitly or implicitly (qabul), and the occurrence of qabd on mawhub from the hibah recipient, either actual or constructive [12, 13, 30]. In addition, most informants in this study practice hibah in their daily lives. Informant 1 distributed her property to her offspring using the hibah. Informant 2 utilised hibah to distribute her income. They valued the hibah above other instruments since there was no restriction on how they might distribute property between males and females. Under simple terms, they can split the property according to their desires because, in hibah, there are no ratios like faraid and other instruments they must adhere to while dividing the property among themselves or their family members. Hibah is a token of affection from the donor to the recipient, it can be issued to heirs or non-heirs, and the transfer is effective upon delivery or during life. Therefore, in principle, property owners can leave their property to whoever they choose as a hibah [23]. The informants who practice hibah in their daily lives reported that they were satisfied and pleased with their employment of the concept to divide their riches
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because it is simple and quick to manage. Furthermore, they were delighted with the management of the hibah in Malaysia. For them, the hibah process in Malaysia is highly satisfactory. This is proven by commercial companies in virtually every state that offers authoring services, provisioning, and hibah problem-solving services. According to Abd Wahab et al. [1], the hibah application is evident in the property planning business. Therefore, they are interested in hibah and believe using it to distribute their property will ensure the continuation of amicable relationships, particularly among family members. Additionally, they practice hibah because they believe distributing property through hibah can prevent numerous issues. Hibah is required during the grantee’s lifetime to distinguish hibah from wills [20]. In a will, only one-third of the estate may be bequeathed to non-family members. Meanwhile, hibah can give an unlimited amount to anyone [34]. For instance, informant 1 uses hibah because, in her opinion, it is one of the approaches to prevent property misdeeds among children. While informant 2 choses hibah to give her children justice without repressing them, especially her adoptive child, given that hibah allows her to dispose of her property in whatever manner she chooses. Meanwhile, informant 3 choses hibah because she could divide the property without restriction. Informant 4 was also aware of hibah, but she is yet to practice it in her life. Nonetheless, she is interested in learning more about hibah since she believes it relates to the hereafter. Based on this research, most informants are interested in learning and understanding more about hibah since it can assist anyone in resolving problems associated with property and management while still alive. Hibah can be offered to anybody chosen by property owners (wahib) [23]. Based on hibah, property owners (wahib) can determine who will inherit their property and how it will be distributed, considering the economic situation and heirs’ needs [30]. In truth, hibah imposes no constraints on us regarding time or execution [31]. Most technopreneurs have a moderate level of understanding about hibah, and most of them practice it. The majority of the informants agree that hibah is a simple way to divide property. In the interview, they stated that hibah was a crucial instrument for property allocation. However, one informant consented to hibah, but she does not practice it. It is evident from the statement of informant 1 that hibah is vital and communities must be aware of it to prevent property grabs. This is because the issue of property struggle in Kota Bharu, Kelantan, has never been resolved. According to informant 1, using faraid instruments is time-consuming and they are not effective for wealth distribution. Settling an heir’s estate is typically time-consuming given that it entails procedures in various bodies and requires a significant time investment [3]. Consequently, property division in faraid is sometimes tricky, as is the distribution of assets to the correct heirs. Thus, most individuals prefer to make a hibah to transfer property. According to Shahid [26], the jury of Hanafi scholars, Maliki, and Shafie contend that circumcision is equivalent to the granting of hibah among children and that giving more to one of them is makruh, even though the gift is legitimate. For Hanbali’s school, it is mandatory to administer hibah fairly to youngsters. According to Imam
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Malik, it is impossible to give some children all the property while others receive nothing. It is an honour to grant hibah to youngsters. Hibah to children may be revoked as long as the object is still in the child’s custody, with no inconsistent rise, no sale, etc. [5]. This can be done to discourage children from being greedy. After inheriting their parents’ property, children typically do not want to handle it. This is where the children become relevant to the cancellation of the hibah. In addition, hibah does not affect the earnings of Muslim entrepreneurs. As demonstrated by informant 1, the implementation of the hibah does not affect their business, and the latter is becoming more profitable as the property provided matches the grantee’s skills and abilities, whose property is a business where the recipient of the hibah has the approval of the business administration. This approach demonstrates that real estate may grow profitably. Informant 2 concurs with informant 1 that hibah is used to prevent discord among children. The second informant agrees that the distribution of the hibah to mature and business-minded children are more advantageous for the firm. According to Rashid and Ahmad [2], through a hibah approach, property owners can determine who would receive their property and how much will be allotted, considering the beneficiaries’ economic situation and their requirements. Therefore, it is prudent for technopreneurs to divide their assets over their lifetime. Shahid [26] posits that hibah also assists those in need and lacking the legal right to inherit property through a faraid or bequest such as the inheritance of property by an adopted kid. The distribution of property can be accomplished through hibah to their benefit. Additionally, informants 3 and 5 concurred with informant 1 that hibah is crucial in the modern day. Hibah is essential for well-being to prevent disunity among family members. The majority concurred that property is uncontested if the hibah is implemented. Since the distribution of property via hibah does not require the approval of any party, many people believe that it is simple, quick and depends entirely dependent on the giver. Therefore, the distribution of the property can be completed quickly. According to informant 4, hibah is excellent since they represent a fair distribution of equitable instruments. This is because the distribution of property by hibah is honest, as the grantor can choose to whom he will donate his property. Family disputes can be avoided through the allotment of the property via hibah and the property has no limit. This is because the property to be rented is the grantor’s property and it is up to the grantor to determine the rental rate. Nevertheless, according to Muda [27], Hanafi, Maliki, and Shafie scholars consider circumcision equates a gift among children. Therefore, one of the excellent advantages is makruh despite the gift being legal. The execution of hibah is ideal since it does not create difficulties for the grantee’s heirs after death. However, informant 4 does not engage in hibah as a business to generate a monthly income. Based on the information gleaned from the informants in this study, hibah is one of the alternate property distribution alternatives for Faraid. This is linked to the fact that the hibah property distribution system is more advantageous to the receiver. Through hibah, the property can be allocated following an individual’s needs and talents. Using this approach, the property will not be tainted if given to a person who
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can adequately care for it. Overall, the five informants reflected good knowledge of hibah, and it was practised by three of them. Through hibah, it is possible to gain additional insights into the hibah within oneself. This interview also informed the researcher that three of the five interviewees understood and performed hibah in their daily lives.
5 Conclusion In conclusion, a hibah is a document used to divide property throughout the grantor’s lifetime. It differs significantly from other property distribution instruments like will and faraid. This hibah research is not intended to contradict the distribution of property by will or faraid but rather to supplement the Islamic property distribution system. Research on hibah among technopreneurs has been a major topic since technopreneurs are company owners whose firms or assets are sure to be inherited. Through this study, researchers elucidated the level of comprehension and implementation of hibah among technopreneurs. The present study revealed a moderate level of hibah knowledge among technopreneurs but most of them implement hibah because they recognised its significance in life. This is because property disputes frequently arise when a property owner dies before the property can be divided. Distribution of property is necessary to ensure the preservation of property. There are numerous pros and cons to every other Islamic property allocation system. Consequently, the purpose of the hibah evaluation is to inform the public of the possible options for land distribution. Planning the distribution of property during one’s lifetime using the hibah principle should be practised. The process of lowering property through hibah not only contributes to the growth of the society’s and nation’s economies but also assures that the property operated by technopreneurs does not become a source of conflict among the remaining beneficiaries. In conclusion, technopreneurs should plan for all property they own to ensure that the property can be enjoyed continuously, whether for their benefit and the welfare of others or both. Since a hibah is practical and straightforward, the researcher predicts that more technopreneurs in Kota Bharu, Kelantan, will adopt this practice. Acknowledgements The authors also would like to thank the students, namely Nur Fahda Ibrahim, Nur Faraleysa Khalid, Nur Fardiah Fauzi, and Nur Fazira Faisal, for their tremendous assistance in completing this research.
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Influence of Entrepreneurial Leadership on Successful Indian Entrepreneurs in K-Link International Sdn. Bhd. Balakrishnan Parasuraman and Shalini Raja Kapol
Abstract Public acknowledgement and accepting towards the MLM business in Malaysia are still low, in addition to the negative perception that it is a type of money scamming and laundering business rather than an income-generating and jobcreating opportunity. Moreover, there are insufficient studies on Indian entrepreneurs in Malaysia as well as theoretical and empirical research on entrepreneurial leadership (EL) as the key factor that promotes entrepreneurial growth and development. This study aims to address these gaps by conducting a qualitative investigation on EL among Indian entrepreneurs in K-Link International Sdn. Bhd. with the aim of (1) describing the concept of EL in MLM from the successful Indian entrepreneurs’ perspective, (2) explaining the success factors of Indian entrepreneurs, and (3) examining the role of EL in creating successful Indian entrepreneurs in K-Link International Sdn. Bhd. The data were collected using semi-structured interviews and document review and it was analysed using thematic and content analysis. The findings showed that both management system and organisational factors highly influence EL in K-Link International Sdn. Bhd. Keywords Multi-level marketing · Entrepreneurial leadership · Indian entrepreneurs
1 Introduction On 31st December 2019, the early cases of the coronavirus (COVID-19) were reported in Wuhan, China [33] and it later evolved into a pandemic that has been causing a large number of human deaths [11]. Apart from healthcare, COVID-19 has badly impacted various other industries, including airlines, entertainment, hospitality, and tourism [28, 47]. This resulted in millions of people losing their jobs and sources of income, subsequently leading to anxiety and depression [48]. According to data from the International Labour Organization [17], the Asia-Pacific labour market has B. Parasuraman (B) · S. R. Kapol Universiti Malaysia Kelantan, Kota Bharu, Malaysia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_5
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lost 81 million jobs. At the same time, nearly 100,000 Malaysians have lost their jobs since the implementation of the Movement Control Order (MCO) [54]. While efforts to curb the spread of COVID-19 had forced major economic sectors to cease operations causing job loss to millions of people, travelling bans, and limitations for social gatherings, the Multi-Level Marketing (MLM) industry has been propounded as among the major aids for those affected by the global pandemic. This is because the MLM industry has been creating employment and business opportunities, particularly for individuals who lost their source of income or faced salary cuts as a result of COVID-19 [43]. According to the Malaysian Direct Distribution Association (MDDA), direct sales companies in Malaysia such as Amway, Cosway, Avon, and Edmark had recorded significant growth in sales between 20 to 30% during the MCO period while the industry itself recorded a total sales of RM13.6 billion in 2017, RM15.9 billion in 2018, and RM17.9 billion in 2019 [7, 13]. The data shows that MLM or direct selling business has the potential of being a good source for job creation, income generation, and reducing poverty in a country [9]. Therefore, this study was conducted in K-Link International Sdn. Bhd. as an MLM company that plays a crucial role in creating employment opportunities, contributing to the local economic development, and cultivating top leaders to become successful entrepreneurs [20]. In this digital era, the demand for entrepreneurial leadership (EL) in organisations is increasing every day. Esmer and Dayi [10] highlight the importance of exploring EL because it creates value for businesses, stakeholders, and society. Thus, this study has investigated several successful Indian entrepreneurs selected from K-Link International Sdn. Bhd. to understand their concept of EL, their stories in becoming successful entrepreneurs, and the role played by EL in creating them.
2 Literature Review 2.1 The Concept of Leadership The word “leader” originated from the ancient English word “lædan”, ¯ which means “to go before as a guide”. In the fourteenth century, the word “leadership” was first used to describe a person in charge [34]. Throughout historical evolution, leadership theories and principles have evolved and changed. The concept of leadership began with the exploration of certain individuals seen as heroic leaders, such as Alexander the Great, Napoleon Bonaparte, Nelson Mandela, Adolf Hitler, Asoka, and Abraham Lincoln [16]. Existing literature has offered numerous definitions and opinions on leadership, which are based on the respective authors’ beliefs, philosophies, perspectives, and values. For example, Meraku [37] defined leadership as a process of influencing individuals so that their efforts are directed towards accomplishing the organisation’s goals. Meanwhile, Hao and Yazdanifard [14] described leadership as a kind of strength that one possesses in order to have the capacity
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and capability of influencing or modifying the values, attitudes, and behaviours of another person’s development. These definitions indicate that leadership is a process of influencing subordinates, who embrace entrepreneurship, over others to guide, motivate, as well as facilitate activities and relationships within an organisation to achieve common goals. It subsequently implies that leadership and entrepreneurship are interrelated.
2.2 The Concept of Entrepreneurship The word “entrepreneurship” was derived from the French verb “entrenprendre”, which means “to undertake”, with “entre” meaning “between” and “prendre” meaning “to take” [31]. Entrepreneurship is the process of creating new valuable things, whereas entrepreneur refers to a person who invests the time and energy as well as bears the associated financial psychological and social risks in exchange for money and the desired outcome [38]. Joseph Alois Schumpeter was the first author to introduce the concept of entrepreneurship in 1911 [18]. According to Schumpeter, entrepreneurs are the pillars of capitalism and the source of innovation who serve as an essential force to drive the development of the capitalist economy [32, 35]. In his manuscript written in 1730, Richard Cantillon later defined entrepreneurship as self-employment and described entrepreneurs as irregular wage seekers and risk takers because they invest a known amount but do not know how much it will generate [39]. The concept of entrepreneurship has been changing over time along with the development of scientific and technological progress as well as the evolution of society. The literature to date has offered various definitions of entrepreneurship as the concept is viewed differently by scholars. For instance, both psychologists and behaviourists see entrepreneurship as the need for achievement, perceived locus of control, and risk-taking prosperity; most economists view entrepreneurship as assembling all production factors (land, entrepreneur, labour, and capital) and bearing the price of buying and selling; whereas many sociologists describe entrepreneurship as the ability to identify the market opportunity to provide social services and act accordingly [49]. On the other hand, Kao [21] defined entrepreneurship as a process of wealth creation while Hessels and Naude [15] said that entrepreneurship is an intersection of economic development. Nevertheless, entrepreneurship has become a symbol of perseverance and business achievement, with entrepreneurs being seen as innovators who are driven by opportunity. The world has undergone an entrepreneurial revolution from small business owners/managers to successful entrepreneurs. In this twenty-first century, the entrepreneurial revolution is more than just creating a business [29]; the role of the entrepreneurial sector changes as the comparative advantage of industries shifts to knowledge-based economic activities. This resulted in large companies losing their competitiveness while smaller and more flexible entrepreneurial companies have been gaining new interest amidst the enhancement of the knowledge-based economy [2].
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2.3 The Concept of Entrepreneurial Leadership The concept of entrepreneurial leadership was introduced by McGrath and MacMillan [36] who propounded on the need for a new sort of leader amidst the increasing uncertainties and competitive pressure within the dynamic market, known as “entrepreneurial leaders”. The fast-moving and changing marketplaces provide individuals with an entrepreneurial mindset with the capacity to capitalise on chances to acquire benefits for their business faster than others [22, 36]. However, researchers have offered numerous definitions of entrepreneurial leadership. For instance, Roebuck [45] defined entrepreneurial leadership as organising a group of individuals to accomplish shared objectives through proactive entrepreneurial behaviour by innovating to capitalise on opportunities, accepting personal responsibility, optimising risks, and managing changes in a dynamic context for the benefit of a firm. Whereas, Vickers [57] viewed entrepreneurial leadership to comprise two fundamental aspects, namely their leadership style and process of entrepreneurship. In addition, entrepreneurial leadership is a type of leadership that includes entrepreneurial acts at the individual level, creative actions at the organisational level, and measures made to capitalise on identified market possibilities [4]. It is also defined by Kesidou and Carter [24] as the process of creating opportunity-based behaviour in support of a firm’s improvement and development. Other scholars also view entrepreneurial leadership as guiding and directing employees’ performance towards achieving the company goals, which include identifying and leveraging entrepreneurial opportunities [52]. In today’s rapidly changing global scenario, many advocate the need for agile leaders who can think quickly, adapt to changes, make fast decisions, and become innovators and creators [40], and these qualities are aligned with entrepreneurial leadership. As entrepreneurial leaders are not born but mainly nurtured through the continuous learning process, entrepreneurial education is an important aspect for every entrepreneur who is going to start up a business or expand their business. This is because entrepreneurial education provides entrepreneurs with relevant knowledge, skills, and motivation to recognise commercial opportunities, manage resources, and initiate a business venture [12]. Furthermore, entrepreneurial leaders must have the entrepreneurship skills to exploit the new business opportunity, foster creativity and innovation in business, and protect it from the threat of competitors [5]. According to Kotelnikov [25], acquiring these qualities require entrepreneurial leaders to have specific attributes, in which they must take initiative, be proactive rather than reactive, constantly motivating their employees, demonstrate entrepreneurial creativity, and constantly seek and pursue new opportunities. Additionally, they must also be willing to take risks, venture into new fields, provide strategic direction and inspiration to employees, and most importantly, they must be responsible for the team’s failure, learn from these failures, and use them as a measure of strategic success and achievement.
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3 Methodology The data collection process of this study was done using the qualitative approach. A set of open-ended questions was used to obtain responses from selected Indian entrepreneurs while a document review was conducted to elicit information that can explain the success factors of Indian entrepreneurs and define the concept and role of entrepreneurial leadership in creating successful Indian entrepreneurs from the MLM perspective. According to Parasuraman [41], qualitative approach is based on non-numerical data and is not concerned with statistical analysis. This is because not all situation in the world comes naturally in quantities. Similarly, Soiferman [51] argues that qualitative theorists believe that various constructive realities produce different meanings to different individuals while the interpretation depends on the perspective of the researcher. It is believed that qualitative research provides more detailed information on a complex issue than quantitative research methods. Therefore, the qualitative research method was used in this study to explore and gain an in-depth understanding of the influence of entrepreneurial leadership towards Indian entrepreneurs and to explain the success factors of Indian entrepreneurs in K-Link International Sdn. Bhd.
4 Findings and Discussion The results obtained in this study were intended to achieve a total of three research objectives as follows: Research Objective (1): To describe the concept of entrepreneurial leadership (EL) in Multi-Level Marketing (MLM) from the perspective of successful Indian Entrepreneurs in K-Link International Sdn. Bhd. The results showed that Indian entrepreneurs define the concept of EL as the entrepreneurial mindset and entrepreneur characteristics required for entrepreneurs to perform well in an organisation. As defined by Ireland et al. [19], EL is the ability to influence others to manage resources strategically and to emphasize both opportunity-seeking and advantage-seeking behaviours. Subramaniam and Shankar [53] pointed out that entrepreneurial leaders are the drivers of entrepreneurial leadership in organisations as they possess an entrepreneurial mindset that can drive entrepreneurial actions among those under their leadership. Entrepreneurial mindset is also considered a set of motives, talents, and cognitive processes that lead to entrepreneurial success [8]. Meanwhile, most distributors define the concept of EL as risk taker and seizing the opportunity. Kasim and Zakaria [23] suggest that risktaking is the best example of an entrepreneurial leader’s willingness to absorb uncertain environments and take on major responsibilities and challenges for the future. Whereas, Langowitz [30] argues that becoming entrepreneurial leader necessitates the willingness to learn, embrace opportunities, motivate and mobilise others within
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a business entity in doing the same. Lastly, the Chief Executive Officer (CEO) of K-Link International Sdn. Bhd. highlighted that the core values of entrepreneurs are a critical part for EL. This is supported by Tarabishy et al. [55] who defined EL as the way people work together to get work done. They also advocate the importance of coordination, the strength of shared values and beliefs, and the degree to which people in the organisation genuinely agree on the importance of those values and beliefs; thus serving as a guide for their actions. Research Objective (2): To identify the success factors of Indian entrepreneurs in K-Link International Sdn. Bhd. Based on the viewpoint of five successful Indian entrepreneurs, the success factors of Indian entrepreneurs in K-Link International Sdn. Bhd. are personal traits and entrepreneurs’ characteristics. Baran [3] believes that personality traits play a significant role in entrepreneurial activities as they can be influenced by various factors and can shape the entrepreneurs’ behaviours, abilities, and competencies to produce a successful business performance. On the other hand, distributors pointed out that social and psychological factors impart a crucial role in the success factors of Indian entrepreneurs. This is consistent with Rokhman and Ahamed [46] who found that psychological factors can characterise important variables such as personality, attitudes, demography, and behaviours in actual entrepreneurial practice. From the toplevel management perspective, attitude is important to determine the success factors of Indian entrepreneurs. As discussed by Varma [56], attitude describes how individuals work or progress towards their objectives while determining their potential of gaining certain skills or knowledge that will help them to reach their goals. Furthermore, Smith [50] propounded that attitude can be acquired through the principle of learning, while Al-Qarioti [1] argued that attitude represents the most effective predictor in relation to the most organised entrepreneurial behaviour. Research Objective (3): To examine the influence of entrepreneurial leadership to create successful Indian entrepreneurs in K-Link International Sdn. Bhd. Insights from five successful Indian entrepreneurs in K-Link International Sdn. Bhd. indicate that organisational factors highly influence the entrepreneurial leadership in creating successful Indian entrepreneurs. This corresponds with Rezvani et al. [44], who emphasised that face-to-face sales and marketing to family members, relatives, and acquaintances in one-to-one marketing hints at the role of viral marketing in network marketing, leading to consumer knowledge on advertising, merchandise sales, and distribution. Moreover, Kumar and Satsangi [27] posit that personality development, such as training and learning programmers, is critical in the MLM industry as it affects networkers’ thinking abilities and lifestyles. The distributors also suggest that product quality and leader support greatly influence entrepreneurial leadership. This is supported by Berrett, Burton, and Slack [6] who highlighted the provision of quality products and services as the biggest factor influencing the success of an entrepreneur. Meanwhile, Pauceanu et al. [42] believe that both leaders and entrepreneurs are accountable for fulfilling a company’s vision and goals while also acting as role models for other workers. Finally, the CEO of K-Link International Sdn.
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Bhd. also highlighted the same viewpoint as the five successful Indian entrepreneurs in which the management system and syllabus directly influence entrepreneurial leadership in creating successful Indian entrepreneurs. This is aligned with Krishnan [26] who emphasises the need to train entrepreneurs in strong general management practices to avoid the difficulties that plague many entrepreneurial ventures.
5 Conclusion This study investigated the influence of entrepreneurial leadership within the MLM industry with the intention of addressing three research objectives. The first research objective looked at the concept of EL in the MLM industry from the perspective of successful Indian entrepreneurs in K-Link International Sdn. Bhd. The results showed that entrepreneurial mindset and entrepreneurial behaviour are key aspects in defining the concept of EL. Furthermore, the second research objective aimed to identify the success factors of Indian entrepreneurs in K-Link International Sdn. Bhd. It was found that personal attributes and entrepreneurs’ characteristics play a crucial role to identify successful entrepreneurs. Finally, the third research objective examined the influence of EL to create successful Indian entrepreneurs in K-Link International Sdn. Bhd. The results showed that both management system and organisational factors highly influence the extent of EL in the organisation. These findings are aligned with the Transactional Leadership Theory, which posits that entrepreneurs and leaders are inspiring and guiding their distributors so that they can perform independently and become successful as they are in their life.
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Measuring the Influence of Celebrity Endorsement on Customer Purchase Intention Using TEARS Model Norlina M. Ali, Siti Farrah Shahwir, Mazlina Ismail, Nur Adilah Saud, and Fattematu Addella Nafis
Abstract Celebrity endorsement is one of the marketing strategies used to help a brand gain a new potential customer. Celebrities promote products and services in ways that help in building credibility and brand awareness among customers. Featuring celebrities in advertising campaigns brings immediate results in sales and return on investment for the organisation. Additionally, celebrity endorsement can encourage consumer purchase intention and turn them into loyal customers. However, using multiple celebrities as endorsers can lead to consumer confusion. Using the TEARS (trustworthiness, expert, attractiveness, respect, and similarity) model as an indicator, this study aimed to determine the factors that influenced the adoption of the celebrity endorsement strategy on customer purchase intention in the textile business. The information was gathered through a questionnaire survey. The survey was given to 100 respondents who came to buy the products. The findings revealed that only three factors influenced celebrity endorsement: similarity, expertise, and respect towards consumer buying intentions. Surprisingly, trustworthiness and attractiveness of the endorsers were less important factors for consumers while shopping at the outlets. It showed that consumers tended to buy more products based on the celebrity’s expertise in how well the celebrity explained and demonstrated the product to the consumers through traditional or digital platforms. Moreover, the consumers were more educated and demanded products that had similar characteristics to them. Keywords Celebrity endorsement · Purchase intention · TEARS model
1 Introduction In 2022, the sales value from the textile, wearing apparel, leather, and footwear industry grew from 11.8 to 15.4%. From here, we can see that the textile industry is growing year by year because of heavy demands from customers for the products [1]. Many companies take this as an opportunity to sell more products to potential N. M. Ali (B) · S. F. Shahwir · M. Ismail · N. A. Saud · F. A. Nafis Universiti Teknologi MARA, Cawangan Segamat, Johor, Malaysia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_6
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and existing customers via several methods such as aggressive promotions through advertising, sales promotion, social media marketing, hired spokespersons, and many more. Some companies tend to use celebrity endorsers as their promotional strategy since celebrities are close to their followers. A celebrity is someone who is well-known and has a positive reputation in the thoughts and societies of the people [2]. In today’s world of competitive industry, many well-known companies hire celebrity endorsement as the face of their brands. Celebrity endorsement is one of the marketing tactics employed by many businesses, firms, and non-profit organisations (NGOs) to promote products and raise awareness of green marketing and environmental concerns. Numerous companies use celebrity endorsements to make advertising campaigns more believable and credible in the eyes of customers. In addition, celebrities promote products and services in ways that help in building credibility and brand awareness among customers. Featuring celebrities in advertising campaigns brings immediate results in sales and return on investment for the organisation. Most importantly, celebrity endorsement can encourage consumer purchase intention and also turn them into returning customers. In practice, using celebrity endorsement as a spokesperson for the brands will increase the brand identity and sales of the company. With the popularity possessed by celebrities, many companies tend to use their popularity to increase sales among potential and existing customers. Hence, companies hire celebrities to become the faces of their brands, leveraging the popularity possessed by these influential individuals in order to enhance brand recognition and appeal [3]. However, when a company uses multiple celebrities, it will automatically create misunderstanding among consumers about the brand identity and cause consumers to feel indifferent about the brand. Thus, this is not a good sign for the business since the company has already invested a lot of money to pay for the multiple endorsers’ services. Moreover, choosing the right celebrity as a spokesperson for the right brand is not easy for the company. Different celebrities possess different personalities, charisma, aura, popularity, number of fans, and expertise portrayed by them. The usage of celebrities has resulted in the development of a brand identity for the product as people learn to associate the traits of celebrities with the companies. Therefore, the purpose of this study was to determine the factors that influenced the adoption of the celebrity endorsement strategy on customer purchase intention in the Malaysian textile business. The researchers used the TEARS (trustworthiness, expert, attractiveness, respect, and similarity) model to analyse the aspects influencing customer purchase intention while selecting a suitable celebrity.
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2 Literature Review 2.1 Concept of Celebrity Endorsement Celebrity endorsement has long been used in marketing. Both the corporation and the celebrity benefit from the celebrity endorsement strategy. A celebrity endorsement is “an agreement between an individual who enjoys public attention (a celebrity) and an entity (e.g., a brand) to use the celebrity for the purpose of promoting the entity” [4]. According to Prakash [5] and Knoll and Matthes [6], celebrities are among the most appealing people to promote goods, brands, and even political campaigns. A celebrity serving as the brand ambassador and endorsing its claims and positions by extending his or her personality is known as a celebrity endorsement [7]. The effectiveness of celebrity endorsement marketing depends on several factors in addition to choosing the correct celebrity, such as finding the best media outlet and crafting a “smart message” that fits the celebrity’s persona [8]. Consumers frequently aspire to emulate celebrities (e.g., by dressing as they do or acting as they act). This behaviour increases the desire of consumers to buy the products linked to celebrities [9]. The social and cultural influences that celebrities have on the members of society are likely to change depending on the celebrities’ reputations.
2.2 TEARS Model Based on the TEARS model, there are several characteristics of how celebrity endorsement affects customer purchase intent, which include trustworthiness, expertise, attractiveness, respect, and similarity [10].
Trustworthiness Trustworthiness is the first component in the TEARS paradigm. According to a study by Melati et al. [11], the trustworthiness of the celebrity itself has a big impact on customer attitudes. Wang and Scheinbaum [12] also studied the effect of celebrity credibility on consumers’ propensity to buy the promoted product. Additionally, studies found that celebrity trustworthiness affects customers’ purchasing decisions in a positive way [13]. Purchase intention is positively impacted by the celebrity’s credibility, according to another study [14]. The most important issue being examined in the beauty industry is the public figure’s credibility [12]. This issue has a stronger association with social media influencers since they have identified attractiveness as a key to influencing consumer opinions. De Brito Silva et al. [15] also looked into how product endorsement would be impacted by an ad developed for the Instagram platform.
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Expertise The term “expertise” describes the information, experiences, or abilities that a brand endorser possesses in relation to the endorsed product. Expertise is accepted as the most important component for endorsement to be successful. The level of celebrity expertise determines the effectiveness of a brand [16]. The more expertise a celebrity possesses, the more effective the brand they endorse. That is why an endorser needs to master the field they engage in. The endorsement becomes more effective when it is done by celebrities or social media influencers compared to if it is done by the brand owner itself. This is because customers usually think that celebrities are more expert [17]. So, it is important for certain brands to choose the right celebrities who are experts in the field they are promoting. Celebrities seem to be more competent and resourceful to external information seekers. Moreover, expert celebrities are generally more reliable and credible. Moreover, the main reason Generation Y follows their idols and celebrities on social media sites such as Facebook, Twitter, Snapchat, and Instagram is to stay up to date with their lifestyles and personalities. This pattern could be the reason why people have a soft spot in their hearts for these celebrities [18]. The celebrity expert facilitates consumer purchase intention by valuing marketing strategies that support business success. Celebrity reputation boosts a company’s marketing efforts by influencing the consumers’ impulsive purchase behaviour [19]. The ability of celebrities to sell a product is crucial in influencing consumer purchasing decisions. Customers plan less and rely more on the endorser’s knowledge to direct their purchase decisions. Because of the celebrities’ expertise, customers can understand the product better, thus encouraging them to purchase it. Most of the audience assesses the advertising message depending on the authority of the source [12]. The credibility of the experts provides consumers with useful information, thus increasing the effectiveness of the business promotion. A celebrity with a high level of credibility attracts the consumers’ attention because it has an impact on their decision- making and purchase intention. Customers change their thoughts towards the brand when the source is reliable, thus assuring favourable purchase intention [20].
Attractiveness In businesses, celebrity persona plays an important role in increasing brand recognition especially when the brand is still new in the market. Celebrities increase brand sales and help people establish a favourable perception of the brand. Persuasion happens through identification when fans see something in a celebrity that they find attractive. The TEARS model identifies three subcomponents of the general concept of attractiveness: physical attractiveness, respect, and similarity [21]. Physical attractiveness includes characteristics that consumers may perceive in an endorser, such as intellectual skills, personality properties, lifestyle characteristics, and athletic talent [10].
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Undoubtedly, many industries have improved their marketing strategies with new concepts in the era of globalisation and competitiveness. Because the fashion industry is booming, marketers are using celebrities’ attractiveness as a creative way to attract customers. People are frequently awed by the lifestyles of the endorsers and their devotion to their psychical traits. Today, nevertheless, this core idea has led to brands leveraging celebrity appeal as a form of influence to raise brand recognition. In comparison to endorsers who are not attractive, those who are attractive succeed more in capturing purchasers’ intention to acquire or purchase. Celebrities’ physical attraction plays a significant role in offering the markets an advantage when promoting the goods that their companies have to offer. Products are frequently chosen by consumers based on similarity. Customers get the impression from this kind of endorsement that the celebrity’s appeal complements the qualities of the brand [22]. Consumers perceive celebrities as attractive because they represent great achievements. They act as a role model and people aspire to them. Celebrities possess a charisma that creates an aura, thus motivating people to become like them [23]. Additionally, the celebrity attraction adds to the advertising’s allure and allurement. Given the justification, celebrity endorsement helps the brand advertisement, which in turn influences the consumer’s buying intention [24]. The advertising industry places high importance on celebrity brand endorsements. The physical attractiveness of the endorser appears to enhance the firm’s reputation by raising its status among consumers. Additionally, the physical beauty of celebrities is a significant marketing strategy that influences people’s purchase intentions. It increases people’s purchasing power, which shifts their focus to product attributes. Moreover, celebrity attraction encourages customers to make purchases [25]. Without question, a celebrity’s attractiveness plays a key role in advertising the company’s products. The brand message becomes fascinating and appealing, as a result. Through their personality traits, endorsers are instrumental in grabbing consumers’ attention.
Respect Respect refers to the quality of being admired or even esteemed due to the endorser’s accomplishments. Celebrities are possibly respected because of the factors of their acting performance, athletic prowess, unique personalities, their opinion on important societal issues, and other qualities. Celebrities who are respected are also generally liked, and likeability arises from the endorsers because of their behaviour, physical appearance, or other traits [26]. Celebrity endorsers are most effective in influencing consumers’ attitudes towards the product that celebrities represent when the celebrities are respected by the public [27]. If a celebrity endorser is someone respected and well-known, the respect element towards the celebrities might extend to the brand, and this could lead to a high level of acceptance and shows a positive attitude towards the brand. Previous studies found that when celebrities are respected, consumers are far more likely to purchase the products or services endorsed by them. However,
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another study showed different results that the reputation of the celebrity had a weak positive relationship with the reputation of the celebrity and branding [28].
Similarity Similarity represents the degree to which an endorser matches an audience in terms of characteristics pertinent to the endorsement relationship based on gender, age, and ethnicity. Having a similarity with celebrities is one of the factors considered by the consumer in arousing consumer intentions. In addition, the similarity concept is important in marketing communication with the assumption that consumers will easily believe and get on messages from sources that share similar characteristics with them. That is why celebrities are selected upon their characteristics that match well with the targeted consumers. A study showed that consumers felt sharing similar opinions with celebrity endorsers can have a significant effect on their purchase intentions [27]. In conclusion, if consumers perceive themselves to have a close similarity with a celebrity or feel they have something in common with him or her, then the customers tend to purchase the product that has been promoted. The bond of similarity between the endorser and the consumers increases the source level of persuasion. This explains why marketers use regular-looking celebrities that consumers can relate to Belch and Belch [29].
2.3 Purchase Intention Purchase intention represents “the possibility that consumers will plan or willingness to purchase a product or service after the evaluation process takes place” [30]. Perceived value, brand trust, price, quality of products, and other factors may affect a customer’s purchase decision. Past research found that consumers’ purchase intentions are easily influenced by many external factors in consumer decision-making processes [31]. Consumer purchase intentions are easily built up through promotional strategies, thus their attitudes towards the promoted products are easily affected by the popularity and image of the celebrity doing the promotion. Celebrity endorsers have been seen by customers as their idols, and these customers are most likely to stay using the same brand used by celebrities. Therefore, celebrities can be considered powerful influencers that cause consumers to repeat purchases of the products.
2.4 Research Framework Based on the literature review, the following research framework was formulated. This study was based on TEARS model, as discussed previously (see Fig. 1).
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Fig. 1 TEARS model
3 Methodology In this study, the researchers employed a quantitative method to gather the information needed to compute all the elements for the study’s outcome. A total of 100 respondents were employed in this study, particularly customers who were actively visiting these two textile outlets, which were Jakel Trading Sdn. Bhd. and Gulati’s Store Sdn. Bhd. in Kuala Lumpur. As the minimal sample size was 90 respondents, this sample size was regarded as sufficient [32]. To collect all the information from the respondents, this study employed convenience sampling. The data was gathered through a questionnaire distributed to the customers at Jakel Trading Sdn. Bhd. and Gulati’s Store Sdn. Bhd. since these two textile enterprises employed celebrity endorsement as a promotional strategy. The respondents were selected randomly using the convenience sample approach depending on their availability at the time the researchers distributed the questionnaire. The data acquired from the questionnaire were analysed using frequency analysis, descriptive analysis, and Pearson correlation analysis in this study. The study utilised regression analysis to examine if the elements may be accepted and used for prediction. The researchers also utilised coefficients to determine the relevance of the independent and dependent variables.
4 Analysis As shown in Table 1, female respondents made up 66.0% of the total number of respondents, while male respondents made up the remaining 34.0%. Additionally, there were five age categories from 18 years old to 41 years old and older in the age segment. Thirty-eight % of the respondents were between 18 and 25 of age, while 11 % of respondents were beyond the age of 41. Meanwhile, in terms of marital status, the majority of the respondents (51.0%) were single. The majority of respondents worked in the private sector as this group contributed the highest percentage (59.0%. In terms of the range of income, the range of RM1,000–RM1,500 formed the majority among the respondents (45.0%). In conclusion, most of the respondents were single
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females between 18 and 25 years old. Most of them had SPM level as their education level, worked mostly in the private sector, and earned a monthly salary between RM1,000 and RM1,500. The mean values for factors such as purchase intention (3.2240), trustworthiness (3.5440), expertise (3.6640), attractiveness (3.5440), respect (3.6620), and similarity (2.5640) are shown in Table 2. The mean value revealed the location of the data centre as well as the feedback and answer provided by the respondents on a scale from 1 (strongly disagree) to 5 (strongly agree). Overall, the respondents concurred that all the factors such as expertise, respect, trustworthiness, attractiveness, and Table 1 Respondents’ profile
Percentage
Demographic profile Gender Age
Marital status
Education level
Male
34.0
Female
66.0
18–25 years old
38.0
26–30 years old
20.0
31–35 years old
19.0
36–40 years old
12.0
41 years and above
11.0
Single
51.0
Married
39.0
Divorced
10.0
SPM
43.0
Diploma
30.0
Degree
19.0
STPM
4.0
Certificate (skills) Occupation level
Monthly income
Total
4.0
Student
10.0
Government servant
15.0
Private
59.0
Professional
5.0
Business
5.0
Not working
3.0
Other
3.0
Less than RM1,000
16.0
RM1,000–RM1,500
45.0
RM1,500–RM2,000
16.0
RM2,000–RM2,500
11.0
RM2,500–RM3,000
7.0
More than RM4,000
5.0 100
Measuring the Influence of Celebrity Endorsement on Customer … Table 2 Descriptive analysis
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Variables
N
Mean
Std. Deviation
Purchase intention
100
3.2240
0.80618
Trustworthiness
100
3.5440
0.61238
Expertise
100
3.6640
0.71457
Attractiveness
100
3.5440
0.70443
Respect
100
3.6620
0.69147
Similarity
100
2.5640
0.87358
similarity were significant for customer purchase intentions. According to the table, expertise has the highest mean value of 3.6640, whereas similarity has the lowest mean value of 2.5640. Table 3 reveals the correlation between TEARS model with celebrity endorsement and purchase intention. The results showed a moderately positive correlation between the likelihood of making a purchase and the trustworthiness and expertise factors, with n = 0.571 and n = 0.640, respectively. At the same time, there was a moderate positive correlation between the factor of purchase intention and attractiveness, which represented n = 0.692, and the respect factor, which represented n = 0.698. Meanwhile, the similarity factor with n = 0.495 and the purchase intention had a weakly positive link. The results demonstrated that similarity, trustworthiness, expertise, attractiveness, and respect may all be used to enhance purchase intention. Consumer purchase intention was shown to positively correlate with all the independent factors. The results also showed that the five factors including trustworthiness, expertise, attractiveness, respect, and similarity were related to customer purchase intention. It was discovered that purchase intention had a moderate positive connection with all the independent factors. The findings indicated that respect, with a correlation factor of 0.698, which was close to 1.0, was the largest factor affecting the customer purchase intention, whereas the similarity factor, with a correlation of 0.495, was the least important. Based on the rules of thumb, an adjusted R2 value greater than 0.85 (85%) can be considered good and acceptable and can be utilised for predicting. An adjusted R2 for this study is 0.661. This indicates that the independent variables chosen can account for 66% of changes in the dependent variable. Due to the omission of various other factors, the remaining 34% cannot be explained (Table 4). Table 5 shows the extracted coefficients from SPSS, the value of unstandardised coefficient (B and standard Error), Standardised Coefficients (Beta), T value, and the significant value. Trustworthiness factor, purchase intention Since the p-value for the trustworthiness factor (0.720) was larger than 0.05 when it should be less than 0.05 (p 0.05), it was not a significant variable for customer purchase intention. The trustworthiness factor must be eliminated from this model because the p-value was not significant.
100 1 100 0.621**
0.571** 0.000 100 0.640** 0.000
Pearson correlation
Sig. (2-tailed)
N
Pearson correlation
Sig. (2-tailed)
N 0.621** 100 0.650** 100 0.224*
0.692** 0.000 100 0.698** 0.000 100 0.495** 0.000 100
Sig. (2-tailed)
N
Pearson correlation
Sig. (2-tailed)
N
Pearson correlation
Sig. (2-tailed)
N
100
0.025
0.000
0.000
100
100
Pearson correlation
0.000
0.000 100
100
0.088
0.171
100
0.000
0.686**
100
0.000
0.625**
100
1
100
0.000
0.621**
100
0.000
0.640**
0.571**
N
1
Expertise
Trustworthiness
Sig. (2-tailed)
Pearson correlation
Purchase intention
The correlation is significant at the 0.05 level (2-tailed) ** Correlation is significant at the 0.01 level (2-tailed)
*
Similarity
Respect
Attractiveness
Expertise
Trustworthiness
Purchase intention
Table 3 Correlation analysis
100
0.000
0.373**
100
0.000
0.705**
100
1
100
0.000
0.625**
100
0.000
0.621**
100
0.000
0.692**
Attractiveness
100
0.061
0.188
100
1
100
0.000
0.705**
100
0.000
0.686**
100
0.000
0.650**
100
0.000
0.698**
Respect
100
1
100
0.061
0.188
100
0.000
0.373**
100
0.088
0.171
100
0.025
0.224*
100
0.000
0.495**
Similarity
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Table 4 Regression analysis Model
R
R square
Adjusted R square
Std. Error of the estimate
1
0.823a
0.678
0.661
0.46959
a
Predictors: (Constant), Similarity, Expertise, Trustworthiness, Attractiveness, Respect
Table 5 Coefficients Model
(Constant) Trustworthiness Expertise Attractiveness Respect Similarity
a
Unstandardised coefficients
Standardised coefficients
B
Beta
Std. Error
t
Sig
−0.763
0.307
−2.485
0.015
0.040
0.110
0.030
0.359
0.720
0.251
0.098
0.222
2.566
0.012
0.196
0.107
0.171
1.832
0.070
0.402
0.112
0.345
3.604
0.001
0.297
0.059
0.322
5.055
0.000
Dependent Variable: Purchase Intention
Expertise factor, purchase intention The expertise factor was a significant variable towards consumer purchase intention. It was evident that the p-value for expertise, which was 0.012, was less than 0.05. It significantly and positively correlated with beta = 0.251. Attractiveness factor, purchase intention The p-value for the attractiveness factor (0.70) was larger than 0.05 when it should be less than 0.05 (p 0.05). Thus, it was not a significant variable for customer purchase intention. The attractiveness factor must be eliminated from this model because the p-value was not significant. Respect factor, purchase intention The respect factor was a significant variable towards consumer purchase intention. It was evident that the p-value for respect, which was 0.01, was less than 0.05. It significantly and positively correlated with beta = 0.402. Similarity factor, purchase intention The similarity factor was a significant variable towards consumer purchase intention. It was evident that the p-value for similarity, which was 0.00, was less than 0.05. It significantly and positively correlated with beta = 0.297.
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5 Findings and Conclusion The findings revealed three factors, namely respect, similarity, and expertise, which had a substantial impact because the p-value was less than 0.5. Since the p-value was greater than 0.05, the other two elements (trustworthiness and attractiveness) had no bearing on the decision to choose a celebrity endorsement. Researchers can also get the conclusion that, with a p-value of 0.00 < 0.05, the respect factor was the main factor influencing the customer purchase intention. It significantly and positively correlated with beta = 0.402. It demonstrated that the most crucial factor in selecting the endorser for this study was respect. For Jakel, well-known personalities like Zizan Razak, Aaron Aziz, Jep Sepahtu, Nabil Ahmad, Dato’ AC Mizal, Dato’ Aliff Syukri, Hairul Azreen, and Awal Ashaari served as endorsers for men’s fashion. Meanwhile, Dato’ Siti Nurhaliza, Hanis Zalikha, and Ayda Jebat were chosen for women’s clothes. Also, Lara Alana, Upin, and Ipin were chosen for children’s apparel to promote the products and to improve brand awareness and image among customers. Meanwhile, Gulati’s Silk House ambassador employed Zahirah McWilson as a celebrity endorser. In selecting the right celebrity endorsement, the company evaluated the quality and criteria of the endorser before hiring them. Based on the findings, consumer purchase intention in textile stores was positively impacted by the respect, knowledge, and similarity factors in celebrity endorsement. To persuade people to buy the items, celebrity endorsers had to exhibit respect. Respected celebrities tended to be liked as well, and likability came from the endorsers due to their behaviour, appearance, or other attributes [26]. In this case, Jakel chose the right celebrities to promote and persuade their customers to buy more clothes and fabrics from their outlets, especially during a festive session. The selection of Dato’ Siti Nurhaliza as Jakel’s endorser was a wise decision since she was actively involved in the community, which brought a significant impact on the business. In addition, when celebrities recommended products related to the subjects that had made them famous, they would be called experts [33]. It took place when the product experts knew how to use their popularity to persuade their followers to support and purchase the products. Additionally, consumers were more drawn to a brand when they saw one of their favourite celebrities using or consuming the products [34]. The more well-known a celebrity was, the more people would purchase the products from them, compared to less well-known celebrities. Besides, human brains detect similarities between celebrities and the product they endorse [35]. It happens when there is a wide range of products offered and target audiences are heterogeneous. From the findings in this study, the similarity between the endorser and the audience was found to be significant [10]. A celebrity must make sure the brand and their persona were compatible. When companies and celebrities collaborated, it would immediately inspires customers to buy more items. In conclusion, we can see that the three factors of a celebrity’s similarity, expertise, and respect have the greatest influence on consumers’ intent to make purchases,
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followed by the two other factors namely trustworthiness and attractiveness. Interestingly, Malaysians are less likely to be persuaded to buy products from textile stores by a celebrity endorser’s attractiveness. Normally, customers are more easily attracted to celebrities who possess physical attractiveness, which gains their interest in the brands. However, in this study, the element of respect possessed by the celebrities contributed more merit to hiring the celebrity as a spokesperson for the company. Finally, it would be interesting if researchers can explore the role of social media influencers in inspiring purchase intention among online buyers. The reason researchers choose social media influencers as a topic for future study is that the cost of paying for their services is cheaper rather than the company using a celebrity as a spokesperson.
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Use of ICT Towards Women’s Business Performance: The Case of SMEs in Padang City of Indonesia Fivi Anggraini, Daniati Puttri, and Neva Novianti
Abstract SMEs’ adoption of digital technology is one of the potential means to accelerate business development opportunities to be more efficient, competitive, and sustainable. The COVID-19 pandemic and the impacts of limitations on community movement is the right time for SMEs to digitise their business process. This study aims to analyse information and communication technology (ICT) use on women’s business performance through a case study in Padang city of Indonesia. This study used quantitative methods with 120 women’s SMEs in the city as the samples. The Partial Least Square (PLS) software was used to examine the hypotheses. This study empirically proved that ICT’s use significantly affected the business performance of women’s SMEs. Consequently, using ICT improved the business performance of women’s SMEs in the study area. The findings can be used to motivate women’s SMEs to be mindful of ICT as it is becoming popular to be implemented with its various benefits in the business process either during or after the COVID-19 pandemic. Keywords Business performance · ICT · Women entrepreneurs
1 Introduction Information communication technology (ICT) has become a pillar of socioeconomic development worldwide and is necessary during a pandemic [1]. The current COVID-19 pandemic can be a moment to start digitising businesses, especially those run by women. The Insight Center [2] said online retail transactions significantly increased from 4.7 to 28.9% during the pandemic, while offline transactions dropped from 52.3 to 28.9%. The increment includes business transactions among women entrepreneurs, especially in Small and Medium Enterprises (SMEs), which currently account for more than 50% owned and managed by women. According F. Anggraini (B) · D. Puttri · N. Novianti Faculty of Economics and Business, Universitas Bung Hatta, 25133 Padang, West Sumatra, Indonesia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_7
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to data from the Ministry of Cooperatives and Small and Medium Enterprises, the number of entrepreneurs in Indonesia is continuously increasing. The number of entrepreneurs as a whole and the number of women entrepreneurs in Indonesia are also increasing. According to the Bank Indonesia data, the number of SMEs in Indonesia in 2020 was 59.2 million, whereby 37 million were women entrepreneurs. Women entrepreneurs mainly engage in various business fields such as culinary, education, garment, fashion, handicraft, cosmetics, and others. This data shows the participation and role of women in supporting the Indonesian economy. Digital development is one of the potentials that open up opportunities for many women entrepreneurs to develop their businesses. Women entrepreneurs refer to the women or a group of women who are wholly or partially own, innovate, regulate, and adapt a business activity [3]. ICT, also known as information communication technology is a digital platform that generates opportunities for entrepreneurial activity by utilising tools such as the internet, mobile technology, and social computing. Emerging digital ICT technologies have strengthened business while simultaneously solving problems in business processes for women entrepreneurs [4]. In the entrepreneurial process, innovation involves various dimensions, including individual, organisational, environmental, and collaborative processes in the business environment. Salam and Majumar [5] examined how ICT enabled traditional housewives to reach a targeted audience and investigated the effects of ICT on women’s entrepreneurship. Pappas et al. [6] mentioned the emerging digital platforms, such as ICT, that can create opportunities for new types of entrepreneurial activity among women and reveal women’s entrepreneurial capabilities. However, few women are leveraging technology to fulfil their entrepreneurial aspirations in business [7]. Looking at the Indonesia scenario, a study on the use of ICT and its impact on the performance of Small and Medium Enterprises (SMEs) has been widely studied, such as Djatikusumo [8] in Malang, East Java, Endraswari [9] in Bantul Yogyakarta, and Basry and Sari [10] in Indonesia. The results stated that using ICT for SMEs can increase productivity, build new business opportunities, and speed up communication and connection to global networks with an international business partner. Nonetheless, there is very little study on the use of ICT on the business performance of women entrepreneurs in Indonesia. As far as we know, only a study by Widiatmoko et al. [11] evaluated the internet adoption of women entrepreneurs to improve marketing performance. However, this study specified internet adoption and women entrepreneurs. Besides the lack of studies, the previous research did not comprehensively discuss the adoption of ICT for women entrepreneurs as the actual current problem. Therefore, it is crucial to carry out further research to fill in the gap in the previous studies. The focus should be given to the business performance of women SMEs. Hence, this study aims to analyse the use of ICT on women entrepreneurs’ business performance in the city of Padang, West Sumatra. The findings of this study can be used to promote an understanding of the importance of using ICT as one of the components that facilitates business activities among women entrepreneurs. Apart from that, these findings will hopefully meet the government’s programme
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in promoting digital technology to empower women involved on a larger economic scale.
2 Literature Review 2.1 Information Communication Technology (ICT) in SMEs ICT combines all network components, applications, devices, and systems, enabling organisations and individuals to interact in the digital world [1]. One form of ICT is mobile phones, supported by wireless networks and the internet. The list of ICT components, such as telephones and computers, has existed for decades [12]. Others, such as digital TV, robots, and smartphones, are newer models. Using digital social media platforms, access to information about business processes and interactions with customers around the world will offer digital-based business management solutions that are superior and competitive. ICT, as a new business model for SMEs, provides new market access and sources of competitive advantage Apulu et al. [13] and Hoque et al. [14]. ICT is the most powerful tool for building, creating, sharing, transferring knowledge, and enhancing capabilities even in different locations, expanding economies, and among many people [15]. Without ICT, SMEs will have serious and fatal consequences in the future and will risk being left behind economically, with all its implications. Digital technology strengthens a business and can increase the level of uncertainty and solve the problems of many SME businesses Okundaye et al. [16] and Nambisan [17].
2.2 Business Performance of Women SMEs Women SMEs continue to grow in Indonesia. During the COVID-19 pandemic, the percentage of women entrepreneurs in Indonesia was quite high at 21%, much higher than the global average of 8%. This increase was because many women who experienced layoffs turned to SMEs. The high number of women entrepreneurs continues to increase, causing the phenomenon of entrepreneurial characteristics to change [18]. Economic development of a country in poverty alleviation, the role of women’s entrepreneurship is very necessary [19]. Women entrepreneurs are women who can take risks in business and manage them. Women entrepreneurs are assumed to experience gender discrimination and more difficulties than their male counterparts in starting and running a business [16]. Even when issues such as barriers to women entrepreneurs are raised in gender and entrepreneurship debates, it is usually done from the perspective that women entrepreneurs are an untapped resource and have the potential to contribute to a country’s economic performance.
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2.3 The Effect of Using ICT on the Business Performance of Women SMEs Information Communication Technology (ICT) has been recognised as an important indicator of women’s empowerment. According to Noor et al. [20], the use of ICT among women entrepreneurs of SMEs can expand the participation of men and women in the country’s economic growth. For this reason, women entrepreneurs must be able to express the development of their personalities and capacity to do business through ICT [21]. According to Noor et al. [20], there is a strong positive correlation between the levels of economic digitisation and labour productivity. Yang et al. [1] said that using ICT in the business processes of women entrepreneurs of SMEs provides many benefits, such as reduced transaction costs, online collection and processing of information, and faster and more accurate access to information. Thus, knowledge-based ICT is important for women entrepreneurs to access the labour market and help empower women in society [22]. ICT is a new digital platform for women entrepreneurs who are required to use it in business. It provides many benefits to encourage the increased performance of women entrepreneurs [7, 23]. For this reason, the standard of living and education level of women entrepreneurs are the factors for the success of women’s empowerment in developed countries. H1: There is an effect of using ICT on the business performance of women SMEs.
3 Method The population of this research was the women’s SMEs registered at the Department of Cooperatives & SMEs, Padang City, West Sumatra. This study used a quantitative approach with a sampling technique using random sampling with a simple random type. The data collection technique used in this study was the survey method. Questionnaires were distributed directly to SME women entrepreneurs. The analysis technique to analyse the data was conducted using the Partial Least Squares Equation Modelling (PLS-SEM). ICT is a digital platform that generates opportunities for entrepreneurial activity by leveraging tools such as the Internet, mobile technology, and social computing. A total of 19 question items for ICT adoption were used to measure the underlying construct of the data using a Likert scale from 1 for very dissatisfied to 5 for satisfied.
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4 Result and Discussion The distribution of questionnaires was sent directly. A total of 124 questionnaires were distributed. All 122 respondents returned complete responses, except two incomplete responses, and were excluded from the analysis. The number of questionnaires that can be processed in this study amounted to 120. The detailed process of collecting questionnaires can be seen, which showed that the response rate was 96.8 or 96.8% of the total respondents. The characteristics of respondents who answered the questionnaire were dominated by SME business actors, with 86 business owners or 71.7%, and the staff position. Based on the education level, there were more senior high schools, with a total of 93 or 77.5% compared to only five junior high schools or 4.2%, with the age of respondents ranging from 26 to 35 years old and as many as 53 or (44.2%). Based on the type of business, women’s SMEs were mostly engaged in the culinary business with 36 respondents (30%), followed by the fashion business with 25 respondents (20.8%). From this business, the monthly income from these business actors ranged from 5 million IDR to 3 million IDR with 53 respondents (3.44%), and the highest number of respondents used m-commerce as their type of ICT, with 89 respondents (74.2%). Assessment of the measurement model for all indicators was carried out by testing the loading factor, Cronbach’s alpha composite reliability, and average variance extracted (AVE). All indicators in Table 1 are valid and meet the criteria recommended by Hair et al. [24] and are declared good categories because the outer loading value is >0.7. Factors that have a value lower than the recommended value of 0.7 are omitted. Cross-loading and Fornell-Larcker criteria were used to test the discriminant validity of the concept [25]. Based on the results obtained in Table 2, it can be stated that the indicators used in this study have good discriminant validity in compiling their respective variables [24]. The values of R square and Q square of the results of this study are in Table 3. The R square test obtained a coefficient value of 0.427. Thus, it can be concluded that the contribution of the women’s business performance variable to the formation of ICT is 42.7%, and the contribution given by all these variables is weak [26]. Structural model measurements are shown in Fig. 1. The results of hypothesis testing with a P-value of 0.000 explained the significant effect of using ICT on the performance of women’s SMEs (see Table 4). The results indicated that the application of ICT can benefit the business performance of women’s SMEs in developing their businesses. This proved that women’s SMEs treat ICT as an important tool for business success. This finding is also in line with the previous studies, which mentioned that proper use of ICT could provide various opportunities for women entrepreneurs’ business development. In fact, ICT is also a power to drive business globally [27–29, 30, 31].
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Table 1 Results of the measurement model Constructs
Factor loading
Cronbach’s alpha
Composite reliability
AVE
Rule of thumb
>0.7
>0.7
>0.7
>0.5
0.914
0.929
0.593
0.887
0.914
0.640
Information communication and technology (ICT) Self-confidence as a user of ICT (ICT1)
0.739
M-commerce is easier for business transactions because its equipment i.e., smartphones can move freely and easily (ICT4)
0.765
Information communication technology and information systems are implemented regularly in business (ICT5)
0.808
Having an interest in allocating the investment for implementing ICT in business (ICT8)
0.803
The implementation of ICT lifts up business profits (ICT9)
0.755
Management decision by 0.756 the implementation of ICT provides a quick response to consumers (ICT13) As entrepreneurs must be able to give sup-port in using ICT (ICT14)
0.762
Entrepreneurs must be acquainted with the use of ICT (ICT15)
0.771
Having an interest in reskilling knowledge of ICT (ICT17)
0.770
Business performance I am satisfied that the increase in employment growth has an impact on economic growth in the region (WP8)
0.770
(continued)
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Table 1 (continued) Constructs
Factor loading
I need high efficiency in operation (WP9)
0.838
I need high productivity (WP10)
0.797
Cronbach’s alpha
Composite reliability
AVE
0.814 I need to generate better business performance than business competitors (WP11) My product must be able to 0.758 satisfy consumers (WP13) In general, I need business 0.821 performance always improve (WP14) Source SEM-PLS (2022) Table 2 Discriminant validity Information communication and technology (ICT) Information communication and technology (ICT)
0.770
Women’s business performance
0.654
Table 3 R square value Women’s business performance
Women’s business performance
0.800
R square
R square adjusted
Result
0.427
0.423
Weak
Fig. 1 The result of the structural model. Source SEM-PLS (2022)
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Table 4 Results of hypothesis testing Model
Original sample (O)
Mean (M)
Standard deviation (STDEV)
T statistics (|O/STDEV)
P-values
Hypothesis results
ICT → W P
0. 654
0.667
0.049
13.452
0.000
H1 accepted
Source SEM-PLS (2022)
5 Conclusions This study concluded that the use of ICT has offered a significant effect on women’s SME business performance. However, remember that using ICT requires creative exploration of technology in various business tasks such as compiling letters, preparing reports, setting up databases, planning, budgeting, and solving overall problem analysis, and so on. Therefore, for this reason, women’s SMEs in the study area should be able to adapt to the trend of technological sophistication to survive in business competition. The use of ICT has eased women’s SMEs in making quick communication with suppliers, vendors, retailers, sellers, customers, and other parties. Consequently, it is suggested that women entrepreneurs will be more actively involved in the use of ICT and involved in more training programmes and workshops. Government agencies and ministries should provide relevant support for women entrepreneurs to smooth the implementation of this programme, especially for those women’s SMEs living in rural areas to be more familiar and confident with the use of ICT. These programmes can be delivered either free of charge or with a charge. This depends on the type and level of training and workshops given. Conclusively, using ICT can reduce production costs and, at the same time, increase the overall income of SMEs. Utilisation of ICT for business activities will be able to improve business performance because, in today’s modern business life, entrepreneurs must be able to follow the trends of technological sophistication to make their businesses viable and sustainable. Acknowledgements The authors are very grateful to the Directorate General of Higher Education, Research, and Technology, Ministry of Education, Culture, Research, and Technology, the Republic of Indonesia for providing funds (Grant number: 162/E5/PG.02.00PT/2022) in year 2022 for this research.
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Managing Information System Resources in Agribusiness Noor Fadzlina Mohd Fadhil and Nurul Hanis Azrin Sabirin
Abstract Agriculture is the backbone of food production that contributes to the nation’s growth. Recently, the revolution in information technology (IT) such as the Internet of Things (IoT), smart farming, and Artificial Intelligence (AI) technologies have successfully transformed agribusiness. Numerous prior studies have documented the success of these IT applications in achieving agribusiness performance. Despite the rapid growth of IT applications in the agriculture sector, previous studies have shown limited and poor utilisation of IT due to several issues in managing IT resources such as a short supply of infrastructure development, lack of young participation in the agriculture industry, and limited access to financial support from related parties. Therefore, this paper proposes a conceptual model that provides an overview of how Information System (IS) resources are managed for agribusiness performance. Based on the notion of the Resource Management model within the resource-based view (RBV) theory, this paper introduces a process model of how value is generated from IS resources. The paper examines the subject, concepts, and objectives for the upcoming study using a variety of works of literature from several disciplines. This study may provide insights into how IS resources are managed in agriculture, thus unlocking the IS potential for achieving agribusiness performance. Keywords Information system (IS) resources · Information technology (IT) · RBV theory · Resource management model · Agribusiness performance
1 Introduction and Background Agriculture is a vital industry that contributes significantly to a nation’s economic growth and food security [31]. A few of the critical roles played by the agriculture sector include a contribution to national income, source of food and raw materials, provision for export agriculture products, development of agriculture infrastructures, N. F. Mohd Fadhil (B) · N. H. A. Sabirin Faculty of Business and Management, Universiti Sultan Zainal Abidin, 21300 Kuala Nerus, Terengganu, Malaysia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_8
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relief from capital shortages, reduction of income inequality between rural and urban areas, and creation of effective demand for purchasing power [32]. By 2050, the World Resources Institute predicts that there will be around 10 billion people on the planet, necessitating a 56% increase in food production to meet demand [33]. As of now, the agriculture sector has both demonstrated its critical importance to economic development in underdeveloped countries and contributed to the economic welfare of developed countries [25]. In industrialised nations, the agricultural revolution may be seen in England, where it preceded the industrial revolution, as well as in the USA and Japan, where it aided in the industrialisation of those nations [32]. In contrast, most people in developing nations like Ethiopia, Liberia, Somalia, and Myanmar depend on farming and agriculture [12]. Since agriculture is one of the primary producers of food, sustainable development must be heavily emphasised. Because of this, agricultural technology applications could assist farmers and other stakeholders in making decisions that promote lowinput agriculture while maintaining appropriate agricultural productivity [38]. The agriculture sector has adopted several innovations to enhance values and increase productivity, including sensor technology, positioning systems, and digital image processing [10]. When data is kept effectively, data-driven agriculture may turn crops into profitable decisions and validate sustainable agriculture for the future [37, 45]. Thanks to technological improvements, the agriculture sector may see an increase in farm profitability and productivity [40]. For instance, precision agriculture is commonly used in affluent nations like the United States, the Netherlands, and Ireland. Higher net returns and operating earnings in agriculture could be the result [37, 39]. The COVID-19 epidemic’s unprecedented effects on livelihoods and food security have acted as a wake-up call to the need to address the gaps, weaknesses, and multiple dangers in agri-food systems as well as to protect their operations in the event of interruptions. Agri-food systems are also coming under growing threat from longterm pressures including climate change, deforestation, the loss of natural resources, and other persistent crises. To prevent, anticipate, absorb, adapt, and transform when faced with shocks and pressures, agri-food systems’ and their stakeholders’ capacities must be improved [15]. Changes to environmentally sustainable technology would be a vital element to assist productivity enhancement and poverty reduction but simultaneously benefit the national economies [14].
1.1 Problem Statement There is no disputing the fact that the world’s population has grown. To meet the need of the population, additional food must, nevertheless, be produced [16]. It took decades for farmers to labour arduously and go through numerous transitions from the traditional to the digital world to produce enough food to meet demand. Recently, the technological trend in agriculture has encouraged farmers to acquire modern
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information technology (IT) for food production, such as artificial intelligence (AI), sensors, big data, and the Internet of Things (IoT) to help farmers produce reliable data in making decisions on production [38]. Nevertheless, optimising the use of IT in agriculture requires the combination of the technology itself, human ability, and other IT-related resources such as skills, knowledge, ability to manage the infrastructure, and necessary investment to connect the potential of technology for value creation [19]. There is a need to resist using more land because land resources are scarce and currently difficult for anybody to acquire. In 2017, more than 50% of the world’s vegetated land was used for agriculture [34]. According to the research, the number of individuals in Ethiopia, Somalia, and Kenya who were suffering from extreme hunger had increased by more than 23 million since last year, nearly doubling. Additionally, according to a report, one person passed away every 48 seconds in the three nations because of severe hunger-related causes such as armed conflict, COVID-19, climate change, and inflationary pressures made worse by the conflict in Ukraine [21]. In a similar vein, COVID-19 has disrupted the agricultural sector with a labour shortage when there is a restriction on people crossing borders and lockdown. This led to significant changes in the composition of consumer demand and disruptions to food supply chains. Therefore, to prevent these risks, immediate changes in how food are prepared and distributed are required (Organisation for Economic Co-Operation and Development, 2020). Hence, this paper will analyse and discuss the overview of information system (IS) resources in agribusiness within the scope gathered from the literature and how the resources will be able to sustain a competitive advantage with the appliance of the resource management model.
1.2 Purpose of Research and Research Question The conceptual paper intends to explain how agribusiness could manage their IS resources, including AIS and other IT resources, for sustained competitive advantage from the perspective of the resource management model. As such, the research questions that will be addressed are: i. What are the IS resources used in agribusiness? ii. How are the IS resources managed to achieve sustained competitive advantage?
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2 Literature Review 2.1 Information Systems (IS) Information systems (IS) employ a variety of IT such as computers, software, databases, communication systems, the Internet, and mobile devices to complete certain tasks, inform, and interact with numerous players in different organisational or societal contexts [8]. Information technology is generally understood as a tool, such as a computer software and hardware solutions, that is required to support management, operations, and strategies to boost an organisation’s productivity [44]. However, IT in agriculture is characterised in the context of agriculture as a tool for direct contribution to agricultural productivity and as a tool for indirect entitlement for farmers to collect knowledge and make quality judgments that would positively impact agriculture activities [28]. Traditional farming is distinguished by limited access to domestic and a shallow degree of technology, while modernised farming can be categorised by its technological level, significant integration, and international markets as well as the policymaker-oriented approach [23]. Technology adoption in agriculture can significantly improve various agricultural problems.
2.2 Accounting Information Systems (AIS) The best way to explain AIS is a system that gathers, organises, categorises, and reports financial data to offer financial information for an organisation’s bookkeeping needs and decision-making [9]. Comparably, Grande et al. [20] defined AIS as a system that uses technology, procedures, controls, and accounting techniques to record a company’s financial transactions. As the accounting system is identified as a subsystem of information inside the enterprise, the use of AIS in an organisation is crucial. This medium collects all the data from various organisational subsystems and transforms it into accurate fiscal and non-fiscal information [13]. However, due to local farmers’ slow adoption of this type of technology, Malaysia’s agriculture sector is likewise lagging in adopting AIS [41]. Even though using AIS in the agriculture industry has several benefits, most countries now use it insufficiently [49].
2.3 Infrastructure Infrastructure can be defined as a system made up of the material, institutional, personal, and digital resources that are made available to economic agents to contribute to inputs in resource allocation cases and produce the integration and highest degree of economic activity [11]. In other words, infrastructure operates as a
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means of communication among economic agents and makes sure there is a connection between the stages of production and consumption [6]. According to Munyanyi [30] and Gajigo and Lakuma [17], infrastructure is the key factor in agricultural productivity growth. They also listed the three primary agricultural infrastructures: road system, irrigation technology, and post-harvest storage technology. The lack of the requisite infrastructure is preventing Malaysia’s existing IT infrastructure growth in agriculture from transforming to digital access for agricultural productivity [27]. In fact, access to IT infrastructure is a problem for many developing nations’ agricultural industries.
2.4 People Through improving workforce skills, human resource development is thought to be a factor for maximising individual development, organisational effectiveness, and national development [35]. Rivera [35] concurred that the people element has a role in how well new technologies are adopted on farms. The agriculture sector can only thrive if its workforce is attracted, kept, and developed [18]. Research, education, and other service infrastructure should also be supported. In a case study by [50], who examined how the absence of young farmers in the farming industry hampered the efforts to create a more effective, competitive, and innovative business environment, some of the problems with human competence were discussed. Malaysia’s management of human resources and related problems in agriculture could not be disregarded either. Local Malaysian farmers today have a limited understanding of the use and management of IT resources for the growth of their agricultural production, low levels of education among farmers, and a poor perception of the technology utilised in agriculture [27].
2.5 Organisation A formal framework of organised coordination involving two or more individuals to accomplish goals through an authority relationship and a division of labour is known as an organisation [36]. Foods are an economic good with unique cultural, institutional, and political features that shape the economic environment and business processes of the sector. Numerous agribusiness subsectors collaborate to supply commodities and services to consumers throughout the world [22]. Government policies and programmes are developed to help farmers with input assistance, output support or limitation, technical support, and financial support, and this has been recognised as a direct and observable element determining agricultural productivity [24]. Low teaching capacity, insufficient resources, and lack of funding from the government and connected parties for local farmers to upgrade their farms into
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high-technology operations are all contributing factors to the agriculture industry’s struggles in Malaysia [27].
2.6 Sustained Competitive Advantage in Agribusiness Competitive advantage is the ability to design and carry out value-creating strategies that are not concurrently carried out by present or potential rivals. A competitive advantage that is difficult for rivals to imitate is a sustained one. Therefore, the functional state of the firm or the resource that ensures its ability to pursue value-creating strategies that are difficult to imitate is highlighted in terms of agriculture [1]. Innovations in technology and information systems, as well as changes in population, regional and global economies, and climatic conditions, are the key sources of competitive challenges for the agricultural sector. The most crucial element for creating a sustained competitive advantage is overcoming such challenges [29]. Sustaining competitive advantage is essential because rival organisations will make efforts to duplicate, surpass, and even outperform one another by acquiring resources that they believe would allow their competitors to outperform them [29].
3 Theoretical Overview 3.1 Resource-Based View (RBV) Theory The resource-based view (RBV) theory describes a firm as a bundle of resources and capabilities that could be organised to achieve a competitive advantage. The concept of RBV was developed into a strategic management focus by the father of modern RBV theory, Barney [3], who explained that if the firm resources are filled with certain characteristics along with the two assumptions of competitive advantage namely heterogeneous and immobile, it is possible to have sustained competitive advantage [3, 7]. An organisation must ensure that its resources are limited so that rival businesses cannot take advantage of them in the same way. This will therefore improve industrial competition and raise the likelihood that the economy will survive [3, 5]. An organisation’s resources must have these four characteristics: valuable, rare, imperfectly imitable, and non-substitutable [26]. When resources can develop solutions that improve a company’s efficacy and productivity, they are regarded as valuable. On the other hand, an organisation should guarantee that its resources are scarce so that other firms cannot exploit them similarly. Thus, this will boost industry competitiveness and increase economic survival likelihood [3]. Moreover, a firm with a vision of sustained competitive advantages must have resources that are imperfectly
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imitable, such that other firms will be unable to conceive or engage with the strategies because they are lacking in many ways and powerless in comparison to strategic innovators and first-movers who lead these resource characteristics [3]. Besides, the firm resources must be non-substitute, and no other strategic equivalent substitute could be valuable, rare, and imperfectly imitable, according to the RBV theory’s final attributes. The type of resources includes tangible, intangible, and organisational capability assets such as a machine, land, the firm’s management skills, information and knowledge, and the organisation’s routines and processes [3, 4]. For example, the Toyota brand has grown in popularity among consumers and has become more compelling. This aids in the production of value among customers. Firms can charge greater pricing and make more profit this way. In addition, Toyota pioneered a lean manufacturing system that is difficult to duplicate and adapt. It will improve the firm’s efficiency and product since the functions can do their tasks consistently, resulting in higher product quality and cheaper prices [46].
3.2 Resource Management Model (RM) According to the RBV paradigm, a firm is a bundle of assets that can be organised to gain a competitive advantage. However, RBV theorists were challenged by their critics to define resources and their specifics on performance, which can be important. When it comes to the concept of resources, scholars appear to use various definitions of the term [47]. Amit and Schoemaker [2] expanded the term to include capacities, while Wermerfelt [48] defined resources as “tangible or intangible assets that are semi-permanently attached to a corporation.” However, the resources do not ensure the development of competitive advantage or value creation, thus the resources must be accumulated, combined, and exploited [4, 43]. The deficiency of RBV in explaining “how” managers or firms transform resources to create value leads to the development of linking value creation to the dynamic environment of firm resources [42]. Therefore, in this conceptual paper, we apply the resource management model to provide a clear and full explanation of how the management of IS resources could lead to sustained competitive advantage in agribusinesses. Resource management is a comprehensive process model that structures the firm’s resources portfolio, bundling the resources to build capabilities and leveraging the capabilities to exploit the market opportunities to create and maintain value for customers and owners [42]. This model links value creation in a dynamic environment of managing a firm’s resources. Based on the dynamic resource management model of value creation proposed by Sirmon et al. [42], the three main resource management processes are as follows: (i) structuring the resource portfolio including acquiring (purchasing resources), accumulating (developing resources internally), and divesting (shedding firm-controlled resources), (ii) bundling the resources where the capabilities are formed, which include stabilising (incremental improvements), enriching (extending and elaborating), and pioneering (integrating new resources), and (iii) leveraging the resources that involve consecutively processes
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that are made up of mobilising (identifying and designing capabilities needed), coordinating (integrated mobilising), and deploying (using capability physically). Three components in this model must be synchronised, and the top-level managers must be involved in all stages of the resource management process. The three-phase in this model are explained below. Prior literature has underlined the issues of RBV theory in resource management involving firms that are completely understudied. Drawing upon the lack of studies in resource management, we investigate the agriculture IS resources to come out with a process model of resource management, focusing on how resources are managed in agribusiness to sustain their competitive advantage.
4 Conceptual Model Development This conceptual paper examines how a local farming business manages its IT resources, including AIS and other IT resources, from the perspective of a resource management model for agriculture productivity. A study was performed on a variety of models developed by different scholars. As a result, the study offered a conceptual framework as depicted in Fig. 1 that includes several significant concepts, including the RBV theory, the resource management model, and sustained competitive advantage in the agriculture sector. The proposed framework for this study is not created to generate the RBV theory that already exists. Rather, it is used to expand the theory by incorporating the resource management model and reflect the resources element of RBV, which refers to AIS and other IT resources, which directly relate to sustained competitive advantage.
Fig. 1 Conceptual framework for managing AIS and other IT resources for sustained competitive advantage
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This study demonstrates how the usage of IS resources in agricultural production would lead to sustaining competitive advantage, as indicated in Fig. 1. However, there are restrictions and shortcomings in the way those IT resources are managed to be effective during the process of sustaining competitive advantage. As a result, in the middle of the conceptual journey, the application of the resource management model is enlarged. In this study, we show how agriculture may gain a competitive advantage if farmers and other stakeholders use IT resources to their fullest potential in production, as opposed to how they currently meet the needs and wants of the world’s growing population. By analysing earlier studies and the problems associated with the resources, this study first identifies the IT resources related to farming finances and operations. This study examines four key IT resources that raise issues about future agriculture and the food business based on the literature evaluation. The AIS, infrastructure, people, and organisation are named as the four IT resources. To put it simply, AIS is an IT solution that uses hardware and software applications to provide management with pertinent financial data for decision-making. Infrastructures, on the other hand, refer to a system that uses hardware and software to facilitate and ease farming activities and procedures. People resources refers to management and human resources in the farming practices. Lastly, a farming organisation involves both internal and external stakeholders, including the government, investors, suppliers, and other parties that have an impact on the organisation’s processes. In this study, we also contend that farmers need to apply RBV theory and choose four standards for resource management to operate a competitive agribusiness. Farmers that have access to these four resources will likely be able to get a competitive edge in the food sector and sustain their business for a very long period. According to RBV, a farm’s IT resources must meet four requirements: they must be valuable, scarce, imperfectly imitable, and non-substitutable. However, IT resources alone are insufficient in fully utilising the potential of IT resources in farming businesses. The application of the resource management model is motivated by the limitations of RBV theory, which does not explain how resources would increase over time and how to manage resources in an uncertain environment. To fully optimise all the IT resources for sustained competitive advantage, the resource management model will be applied to the processing of IT resources through the three stages of structuring, bundling, and leveraging. We will be able to identify any possible and existing farm capabilities that might be connected to the RBV theory in this research to fully utilise the IT resources already in use on the farm to carry out major changes in sustaining competitive advantage.
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5 Conclusion Despite the significance of farming businesses to a nation, agriculture has sadly received less attention than other sectors due to a lack of resources and challenges with technological usage. In this article, AIS, infrastructure, people, and organisation have been used to collectively explain and highlight the key difficulties and challenges of IT in the agricultural sector. These four elements have been analysed to be the issues of IS in agribusiness. To meet the competitive advantage, these four issues should be resolved. Regarding the theory component, this conceptual paper has added to the literature on IS resources and agriculture by extending the RBV theory using the resource management model, which could be explained through the processes of how the resources are being managed to achieve sustained competitive advantage and by expanding the literature on resource management model. In conclusion, implementing IT into food product and farm management processes and utilising the available human talents are the best ways to address these difficulties with IS resources in agriculture. To maintain the sustainability of food production in the country, each major stakeholder should cooperate and fulfil their respective responsibilities. To address the present agricultural challenges, a deeper understanding of the farming industry is required, which may be attained through conceptual research that will provide a wide range of literature. The farming business will be significantly impacted by the RBV theory and the resource management model for agriculture to maintain a competitive advantage. Acknowledgements The authors would like to acknowledge the financial and technical support for this project provided by Universiti Sultan Zainal Abidin (UniSZA), under the LabMat Research Grant (UniSZA/2020/LABMAT/02).
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Role of Religious Elements in Digital Well-Being for Muslims A. K. Asar
and Aziman Abdullah
Abstract There are diverse opinions among scientists nowadays regarding digital individuals’ well-being. Some focus on the role of spiritual elements, while others emphasise ethical elements. The main aim of this review is to highlight the importance of religious elements in digital well-being for human beings, particularly Muslims. Religions enforce moral behaviours by infusing a ‘god-fearing’ element into the believers. Even though there are various factors contributing to the digital well-being of mankind, religions have proven to have a more positive impact and effectiveness given their connection to supernatural agents. Moreover, for Muslims, religion constitutes the worldview of their existence and their daily life activities in this world. Those religious elements pave the right way for believers in dealing with technology, the internet, and technological devices. This article also proposed a brief theoretical framework of those Isl¯amic elements which play an important role in digital well-being for Muslims. Keywords Religious elements · Digital well-being · Muslims
1 Introduction There is no consensus among researchers on how digital well-being should be confined since there is a huge range of contemporary responses to the question of what constitutes well-being [1]. Nevertheless, religion surely has a significant effect on people’s lives. Some religious studies highlight the impact of religion on human behaviours [2], thoughts [3], and social values [4]. Since the use of technology becomes part of life nowadays, digital well-being is crucial to be understood clearly. For Muslims, Isl¯am impacts all aspects of individual and societal activities, A. K. Asar (B) Centre for Human Sciences, Universiti Malaysia Pahang, Kuantan, Pahang, Malaysia e-mail: [email protected] A. Abdullah Faculty of Computing, Universiti Malaysia Pahang, Pekan, Pahang, Malaysia © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_9
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including digital well-being. Since the concept of religiosity has been under-reported due to the sensitivity of religion [5], researchers and the general population seem to neglect its importance in societal activities. Hence, this article highlights how religious elements, particularly Isl¯amic elements play important roles in the digital well-being of Muslims.
2 Literature Review 2.1 Digital Wellbeing Overall, studies on well-being focus on analysing what constitutes well-being as the end goal for human actions [6]. Some scholars associate well-being with subjective properties such as hedonic or other kinds of experiential states [7] and the satisfaction of personal desires [8]. Some studies reported positive associations between wellbeing and objective properties such as knowledge [9], virtues [10], certain skills [11], and health conditions [12]. The concept of well-being itself is an evolutionary science and multifactorial. There are various definitions of digital well-being [13]. Fundamentally, it is a merge of technology [14] and well-being [6]. Digital wellbeing is a research area that explores the impact of digital technologies on people [15]. It is the impact of technology usage on human well-being both in positive and negative ways. However, the main point of digital well-being in this article is to explore the potential aspect that significantly governs human behaviour in using digital technology and the direct effect on their well-being.
2.2 Religious Elements for Digital Wellbeing Our knowledge, experience, and environment normally form our beliefs. Beliefs influence our behaviours and actions. Beliefs that are widely accepted have become part of our culture and shape the society we live in many ways. Religion is the main belief system that has existed since the creation of Adam. Most, if not all religions, have some similar thematic principles, the most common ones are two: 1- the concept of God and 2- religious attributes such as love, honesty, and altruism. However, every religion has elements which set them apart from others. Those differences particularly the ideologies, if not well-addressed may bring disharmony in society.1 Moreover, the coexistence of diverse religions in a single community or nation nowadays is a fact. Religions enforce moral behaviours by infusing a ‘god-fearing’ element. Isl¯am focuses on the concept of paradise and hell in the hereafter life, Christianity highlights 1
The main factor is mainly due to the distorted deduction of religious scriptures by those fanatic and extremist followers which go against the rational principles of well-being society.
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heaven-hell and salvation, while Hinduism and Buddhism introduce the concept of karma and reincarnation. Individuals are more likely to behave morally or honestly when they believe in fearsome and punishing supernatural agents [16]. However, religious beliefs are not the only factor that influences oneself and society, other factors such as needs, drives, parenting, and environment determine well-being. Religious elements indirectly guide digital well-being for technological advancement and its ethical usage. Technologies created by humans throughout history had a variety of influencing factors. The surrounding environment, the ambition for economic growth, and even chance and coincidence are some main popular reasons highlighted by researchers for innovation. But for Muslims, their religion is the main factor for invention. This can be seen in the rapid development of Isl¯amic civilisation, which has sparked many inventions [17]. Even in the history of the West, a religious factor also had become the main factor for Johannes Gutenberg in publishing his Gutenberg Bible [18]. Religions’ role in influencing technology also expands into the realm of warfare such as those jihadist groups in the Middle East. Even in history, the Crusade’s battles were driven by religious factors. New battle armour, helmets, shields, and castle fortifications were introduced. Religion gives people something to believe in, it provides a sense of structure and typically offers a group of people to connect with based on similar beliefs. These facets can have a large positive impact on mental health, in fact, religiosity reduces suicide rates [19]. For a Muslim, religion constitutes the main element in daily life because Isl¯am is the way of life in this temporary world [20]. Isl¯am highlights the two main roles for a Muslim in this world, which are worshipping All¯ah and becoming His vicegerent. Before we move to those Isl¯amic elements which play an important role in the digital well-being of Muslims, there is a need to differentiate between religion and spirituality. Religion or spirituality serves important roles in coping, survival, and maintaining overall well-being [21]. Both are rooted in trying to understand the true-life purpose of this world. For spiritual digital well-being, some researchers highlight six dimensions, namely, belief in an organising force, connectedness, faith, compassion, the meaning of life, and the meaning of death [22]. Meanwhile, some researchers state that there are four domains for spirituality or well-being as follows: 1- Personal domain; 2- Communal domain; 3- Environmental domain; and 4- Transcendental domain [23]. Religion focuses on the relationship with a higher power authority called God; while for atheist and agnostic people, God or the supernatural being is a complicated subject which is not or may not exist. Religion is an organised, community-based system of beliefs; while spirituality resides within the individuals and what they believe. The idea of religion and spirituality is like a rectangle versus a square. Within the religion, there is spirituality but having the latter doesn’t necessarily mean you have religion. Both religion and spirituality can have a positive impact on digital well-being, however, their effectiveness generally varies due to their different nature.
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Fig. 1 Theoretical framework for Fear Domains Model (FEDOM) of digital well-being
3 Isl¯amic Elements for Digital Wellbeing History has proven that the main factor that contributed to life’s well-being in Muslim civilisation was the religion itself [24]. The problems associated with Muslims nowadays are more related to their lack of religious beliefs [25]. The lack of modern science and technology knowledge has aggravated the situation further [26]. In fact, modern and secular societies seem to ignore the role of religious elements nowadays [27]. Therefore, it is crucial to highlight Isl¯amic elements as the core guidance in addressing the digital well-being of Muslims. Generally, there are three main relationships in Isl¯am which are related to human beings in this world. These Isl¯amic elements are translated into three main relationships. Technology or digital well-being is in the third relationship as illustrated in Fig. 1. The first relationship is with the Creator, All¯ah. This relationship comprised two roles of human beings: 1- All¯ah’s servants and 2- All¯ah’s agents. The first role stated in the Qur’an: “I did not create jinn and humans except to worship Me” (al-Qur’¯an, alDz¯ariy¯at, 51: 56). There are many verses of the Qur¯an which explain the meaning of the servants of All¯ah. For instance, the phrase “pious servants” was used in Chapters: ¯ ‘Imr¯an, 3: 39, al-M¯aidaè, 5: 84, and Chapter al-An‘¯am, 6: al-Baqaraè, 2: 130, Al 85. In the Qur’¯an, individuals who are devout exhibit three primary characterisitics: they engage in the worship of All¯ah, seek repentance, and actively work towards enhancing the world [28]. As part of a human’s role as the servant of All¯ah, a human being also has his/her specific role that differs the person from other creations of the Creator, All¯ah. This special role is khilafaè [vicegerency]2 and it is stated in the Qur’¯an: “Remember^ when your Guardian [All¯ah] said to the angels, “I am going to place a khal¯ıfa. They asked 2 Khil¯ afaè is an Arabic word which means successive human authority on earth (Al-Qur’¯an, alBaqarah, 2:30, n.d.). Khal¯ıfaè is the singular form of khulaf¯a’, it means agent or representative, i.e., the agent or representative of All¯ah in this world.
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(All¯ah), “Will You place in it someone who will spread corruption there and shed blood while we glorify Your praises and proclaim Your holiness?” All¯ah responded, “I know what you do not know” (al-Qur’¯an, al-Baqaraè, 2: 30). Khil¯afaè on the earth is to carry out the divine will [29]. In fulfilling the responsibilities as All¯ah’s agent, the caliph/vicegerent of All¯ah on the earth, God has endowed mankind with skills and potentials such as reasoning ability for grasping goodness and evil, freedom of choice, and emotion. He has also given mankind creativity and knowledge [30]. Moreover, human beings have contributed to the maturation process in the universe with all the talents, blessings, and faculties they are given such as speech, rhetoric, and intellect [31]. Hence, it becomes incumbent upon a human being to act as the kh¯al¯ıfaè or God’s agent by upholding All¯ah’s laws and guiding all His creatures to their creation purposes based on the Qur’¯an and Sunnaè. In Isl¯am, achieving emotional and spiritual intelligence first requires a close relationship with the Creator. It can be developed through consistent acts of worshipping God, performing good deeds, and avoiding evils. Through such consistent acts, the light of God will come and touch the hearts of the believers, causing them to experience pure contentedness [32]. The fear of All¯ah because of the love for the Creator is the highest obedience, as it is the sincerest degree of worship for mankind. It trains the soul from its prone-to-evil state to become more angelic, thereby increasing emotional intelligence. This will be reflected in the believer’s actions, which will be aligned with Isl¯amic teachings as described in the Qur’¯an and Sunnaè. For the believer, true happiness is to get All¯ah’s blessing, which will result in eternal Heaven. The second relationship is the relationship with human beings as it creates harmonious well-being between mankind. Isl¯am provides every individual with the freedom to practice any religion, ideology, or culture. All¯ah mentions in His holy book, the Qur’¯an: “There is no compulsion in religion. Verily, the Right Path has become distinct from the wrong path. Whoever disbelieves in Tagh¯ut and believes in All¯ah, then he has grasped the most trustworthy handhold that will never break. And All¯ah is All-Hearer, All-Knower.” (al-Qur’¯an, al-Baqaraè, 2: 256) [33]. As the universal religion, it advocates a harmonious relationship among the people of different religions, cultures, and civilisations for the peaceful coexistence and harmonious development of all human beings. Isl¯am constitutes a viable model for resolving religious hatred, it promotes peace and justice among people of diverse ethnic, religious, and cultural backgrounds [34]. In the context of digital well-being, issues like cyberbullying [35], online romance scams [36], online shopping scams [37], and many other cybercrimes [38] are obviously due to the ignorance of the relationship with the Creator and the relationship with human beings. The third relationship is the relationship with the environment. In Isl¯am, human relationship with the environment is among their duties and functions as the vicegerents of All¯ah. This fact denies the allegations that human is one of the roots of the ecological crises in the world. Isl¯am states that man and nature are interdependent and man as the vicegerent of All¯ah has the obligation to maintain the balance of nature [39]. Undoubtedly, the environment is a general term, it includes animals [40], plants [41], and other creations of All¯ah. It also includes those technologies created by human beings. Since technology itself is not a living thing, the practice
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of using technology with the potential of endangering the user himself or others should be guided ethically. In the context of digital well-being, the abuse of digital technology is among the unethical practices that potentially harm the user himself or other related people. For example, abusing technology like cyberbullying in social media can cause depression [42] in the victims, which may lead to self-harming and even suicide [43]. While overuse of technology like social media addiction has the potential to induce depression [44]. Each of the three relationships has its principles, guidelines, and ethics. They are derived from the two main sources in Isl¯am, the Qur’¯an and Sunnaè. In fact, Isl¯am never rejects any rationalism and empiricism provided they do not contradict the two main sources. In addition, Isl¯am also offers intuition as another source of knowledge [45]. The main question to any discussion about digital well-being whether it is religiosity, spirituality or ethics, is how the person willingly or forcedly accepts the role, instruction, request, or suggestion. This is the main loop that, if not all, many researchers could not address clearly. In Isl¯am, only those who sincerely fear All¯ah will have well-being; the Qur’¯an states: “It is only those among His servants who have knowledge that fears All¯ah” (al-Qur’¯an, al-F¯at.ir, 35: 28). Their principles, guidelines, and ethics are obviously based on the teachings of Isl¯am, which mainly derived from the Qur’¯an and Sunnaè of the Prophet Muh.ammad. Hence, a true believer must try his/ her best to have all good characteristics promoted by Isl¯am for individuals such as being optimistic, kind persons, not arrogant, doing good things, and staying away from bad things. He/she also obviously should not be a lazy and time-wasting person, particularly when dealing with the Internet and technology, because Isl¯am prohibits such negative acts and behaviours.
4 Conclusion Digital well-being is a complex field of knowledge due to its multidimensionality and massive content. Despite many principles, guidelines or ethics that have been proposed for digital well-being; the main question is does the person really wants to follow them? Individuals are free to ignore those principles, guidelines, or ethics since they can directly access online content on their own. This article highlights the role of religious elements rooted in “fear All¯ah” whereby the proposed theoretical framework for the Fear Domains Model (FEDOM) of digital well-being seems to be more practical for Muslims. Acknowledgements The authors would like to thank the Ministry of Higher Education for providing financial support under Fundamental Research Grant Scheme No. FRGS/1/2021/ICT03/ UMP/03/1 (University reference RDU210155). The authors also would like to thank the reviewers for their insightful comments.
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24. Nafis AW (2020) Islam, Peradaban Masa Depan. J Al-Hikmah 18:117–134. https://doi.org/10. 35719/alhikmah.v18i2.29. 25. Sobaihi MMA (2019) The Role of Faith Systems and Religions in the Future of Sustainable Development: An Islamic Outlook. J Sustain Dev. https://doi.org/10.5539/jsd.v12n5p23. 26. Qureshi AJ (2011) Islam and the concept of vicegerency on earth. Eur J Sci Res. 27. O’Reilly D, Rosato M (2015) Religion and the risk of suicide: Longitudinal study of over 1 million people. Br J Psychiatry. https://doi.org/10.1192/bjp.bp.113.128694. 28. Moh saepudin D, Ahmad N, Anwar R (2020) Makna Semantik Hamba dan Saleh dalam Alquran. J Online Stud Al-Qur’an. https://doi.org/10.21009/jsq.016.2.07. 29. Reda A (2019) Human Vicegerency and the Golden Rule: The Islamic Case Against Exclusion. Am J Econ Sociol. https://doi.org/10.1111/ajes.12290. 30. Azram M (2012) Epistemology -An Islamic Perspective. IIUM Eng J. https://doi.org/10.31436/ iiumej.v12i5.240. 31. Dogan R (2013) The Position of Human Being in the Universe according to Islam. Sociol Anthropol. https://doi.org/10.13189/sa.2013.010302. 32. Wahab MA (2022) Islamic Spiritual and Emotional Intelligence and Its Relationship to Eternal Happiness: A Conceptual Paper. J Relig Health. https://doi.org/10.1007/s10943-021-01485-2. 33. Khan M The Quranic Arabic Corpus. https://corpus.quran.com/translation.jsp?chapter=2&ver se=256. Accessed 31 Dec 2022. 34. Nor MRM, Khan I, Elius M (2018) Analysing the conceptual framework of religious freedom andinterreligious relationship in Islam. Indones J Islam Muslim Soc. https://doi.org/10.18326/ ijims.v8i2.309-334. 35. Watts LK, Wagner J, Velasquez B, Behrens PI (2017) Cyberbullying in higher education: A literature review. Comput Human Behav 69:268–274. https://doi.org/10.1016/j.chb.2016. 12.038. 36. Shaari AH, Kamaluddin MR, Paizi@Fauzi WF, Mohd M (2019) Online-Dating Romance Scam in Malaysia: An Analysis of Online Conversations between Scammers and Victims. GEMA Online® J Lang Stud 19:97–115. https://doi.org/10.17576/gema-2019-1901-06. 37. Arumugam N, Mohamad F, Shanthi A, Dharinee S (2021) A Study on Online Shopping Scams. Int J Soc Sci Res 10:22. https://doi.org/10.5296/ijssr.v10i1.19290. 38. Lee CS (2020) Toward Mitigating, Minimizing, and Preventing Cybercrimes and Cybersecurity Risks. Int J Cybersecurity Intell Cybercrime 3:1–3. https://doi.org/10.52306/03020120JOFX 1754. 39. Kurniawan DW (2012) Human responsibility towards the environment in the Quran. Indones J Islam Muslim Soc. https://doi.org/10.18326/ijims.v2i2.293-322. 40. Safitri L, Nuskhi M, Muatip K, et al (2019) The Relationship between Human Being and Animal: The Study of the Concepts of Khalifah and the Animals in the Quran. Anim Prod. https://doi.org/10.20884/1.jap.2018.20.3.742. 41. Siddiqi A (1993) Islam and Ecology. Am J Islam Soc. https://doi.org/10.35632/ajis.v10i2.2513. 42. Skilbred-Fjeld S, Reme SE, Mossige S (2020) Cyberbullying involvement and mental health problems among late adolescents. Cyberpsychology J Psychosoc Res Cybersp 14. https://doi. org/10.5817/CP2020-1-5. 43. John A, Glendenning AC, Marchant A, et al (2018) Self-Harm, Suicidal Behaviours, and Cyberbullying in Children and Young People: Systematic Review. J Med Internet Res 20:e129. https://doi.org/10.2196/jmir.9044. 44. Haand R, Shuwang Z (2020) The relationship between social media addiction and depression: a quantitative study among university students in Khost, Afghanistan. Int J Adolesc Youth 25:780–786. https://doi.org/10.1080/02673843.2020.1741407. 45. Rahardjo M (2021) REASON, EXPERIENCE, AND LANGUAGE TO ACQUIRE KNOWLEDGE (IN WESTERN AND ISLAMIC PERSPECTIVES). Ling J Ilmu Bhs dan Sastra. https:/ /doi.org/10.18860/ling.v16i1.12629.
Islamic Banks and Their Zakat Distribution Practices Nurul Iffah M. A. Zaaba
and Rusni Hassan
Abstract Islamic banks in Malaysia have been actively paying, reporting, and distributing their own zakat, albeit a few are not doing so. These three types of information can be found in the banks’ published documents, which are the financial statements. However, the disclosure of information on zakat distribution is limited. Thus, this study’s objective is to determine how Islamic banks that pay zakat in Malaysia distribute their zakat. This study was conducted using semi-structured interviews where bank officers in charge of zakat funds were interviewed to gather their insights regarding how banks distribute zakat. The data collected were analysed using computer-assisted qualitative analysis software (CAQDAS) named ATLAS.ti. Then, codified data was generated in table form using the Thematic Analysis Matrix (TAM). This study found that insufficient information was disclosed in the financial statements and annual reports of Islamic banks, particularly on zakat distribution practices. Hence, this study suggests that the information in Islamic banks’ financial statements be further enriched with more extensive zakat disclosures. Keywords ATLAS.ti · Islamic banks · Malaysia · Zakat distribution
1 Introduction Islamic banks are among the financial institutions licensed by Bank Negara Malaysia (BNM) [1]. These institutions are required by BNM to disclose their zakat information, among others [2]. They must disclose whether they are paying zakat or otherwise in the financial statements. If they do pay zakat, the information that must be disclosed are as follows: (i) the bank’s responsibility towards zakat payment, either on the business and/or on behalf of the shareholders; N. I. M. A. Zaaba (B) · R. Hassan IIUM Institute of Islamic Banking and Finance, International Islamic University Malaysia, Kuala Lumpur, Malaysia e-mail: nurul’[email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_10
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(ii) the method applied in determining the zakat base, e.g., growth method, working capital method; and (iii) the beneficiaries of the zakat fund, e.g., Baitul Mal, the poor, and others. It is important that Islamic banks state their zakat distribution method, i.e., whether they self-distribute their zakat, or pay to zakat institutions, or both [3]. By choosing self-distribution, Islamic banks actually act as zakat distributors [4]. In the case where Islamic banks pay zakat to zakat institutions, they are eligible to participate in the wakalah zakat programme arranged by zakat institutions. This programme entails zakat institutions returning a portion of zakat funds to entities that pay zakat to the zakat institutions for distribution to eligible asnaf (a group worthy of receiving the tithes in Islam). Entities that are allowed to apply for a refund of zakat money are individuals, companies or organisations (including banks), employers, and higher learning institutions [5, 6]. Hence, the wakalah programme provides another method for zakat distribution. However, little attention has been given to research on zakat distribution practices by Islamic banks because banks are not deemed as key zakat distributors in Malaysia. Only a few authors have written about banks and their zakat distribution practices, which are [3, 7–9]. This paper is a continuation of the research written by Zaaba and Hassan [9].
2 Methodology This study applied the semi-structured interview method where Islamic bank officers who were directly involved in the management of zakat were interviewed to explore their banks’ zakat distribution practices. The interview method was chosen since it is the most commonly used method for discovering information that is not publicly available [10]. There are 16 Islamic banks in Malaysia that are licensed by BNM, consisting of 11 local and five foreign banks. The list was obtained from BNM’s website [11] and used as the sample size for this study. Four foreign banks were excluded from this study as they either did not pay zakat in Malaysia, or they were not liable to do so. Another bank rejected to be interviewed because the information was classified and cannot be disclosed to external parties. Thus, only 11 banks were interviewed for this study. Since the information was considered private and confidential, the authors codified each bank with an alphabet. All the data collected in the interviews were transcribed and sent back to the participants for information verification. Then, the transcribed data were transferred into ATLAS.ti, a computer-assisted qualitative analysis software (CAQDAS) to help with codifying the data. Then, the information was generated in MS Excel using Thematic Analysis Matrix (TAM) that was introduced by Noor [12], as shown in Table 3.
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3 Zakat Distribution Practices by Islamic Banks From the interviews, this study discovered four major themes of zakat distribution practices by Islamic banks, as shown in Table 1. The table above shows that Islamic banks applied four approaches in distributing zakat, namely, (1) self-distribution, (2) payment to zakat authority, (3) both former methods, and (4) wakalah zakat.
3.1 Theme 1: Self-Distribution Only one bank, Bank G, distributed zakat using the self-distribution method. This method was chosen mainly because their zakat distribution objective required zakat to be channelled to impactful programmes. Thus, the bank carried out its own zakat distribution programmes so that it could gather feedback directly from the asnaf . The feedback facilitated the bank’s effort of measuring the impact of their zakat fund.
3.2 Theme 2: Payment Made to a Zakat Authority Six out of the 11 interviewed banks responded that they paid their entire zakat amount to zakat authorities without retaining any for their own distribution. These banks chose which zakat institutions to receive their zakat payments and then, decided how much they would pay to the zakat institutions. This meant that not all 14 zakat institutions in Malaysia would receive zakat from the Islamic banks and the amounts the institutions receive were not necessarily the same. Table 1 Islamic banks’ zakat distribution practices
Bank
Zakat payment method for the year 2020
A
Both methods, wakalah
B
Both methods, wakalah
C
Zakat institution, wakalah
D
Zakat institution, wakalah
E
Both methods, wakalah
F
Both methods, wakalah
G
Self-distribution/directly to asnaf
H
Zakat institution, wakalah
I
Zakat institution, wakalah
J
Zakat institution, wakalah
K
Zakat institution
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3.3 Theme 3: Both Methods Four banks, namely A, B, E, and F, divided their zakat funds into amounts to be paid to zakat authorities and amounts for their own distribution. The management team of each bank decided the proportion, and usually, a bigger portion was allocated for self-distribution. Some banks chose to distribute their zakat to all zakat institutions in Malaysia. Like Bank G, all these banks had their own zakat distribution objectives. For example, if a bank decided to channel its zakat to empower asnaf through entrepreneurship programmes, the bank would carry out more programmes that were aligned with this objective. Some banks are focused on several categories of asnaf , namely, fakir, miskin, and fi sabilillah.
3.4 Theme 4: Wakalah Zakat All banks, except two banks, were eligible to apply for the wakalah zakat programme, as shown in Table 2. Participation in the wakalah programme is subject to certain terms and conditions, with some zakat authorities imposing tighter restrictions than others. As a result, some banks choose zakat institutions that impose lesser restrictions. Banks that abide by the terms and conditions of the wakalah contract can use the wakalah fund without restrictions. Table 3 above shows how the information obtained from the interviewees were codified using the Thematic Analysis Matrix (TAM). Table 2 Islamic banks’ participation in the wakalah zakat programme
Bank
Zakat payment method for the year 2020
A
Wakalah
B
Wakalah
C
Wakalah
D
Wakalah
E
Wakalah
F
Wakalah
G
Not eligible for wakalah
H
Wakalah
I
Wakalah
J
Wakalah
K
Not eligible for wakalah
– – – –
Half to all state zakat authorities - Both methods Another half is retained for self-distribution to the military - Wakalah Gets wakalah refund For the wakalah, some of the zakat authorities may give back 1/8 or 3/8 – The asnaf categories that are allowed to receive wakalah zakat are mainly fakir miskin and fi sabilillah in their respective states – – – – –
B
C
Pays to the state zakat authority only The amount is different as decided by senior management Gets wakalah refund, a maximum of 3/8 Follows the wakalah refund guidelines for asnaf categories: MAIWP: all except amil
– Zakat authority – Wakalah
– 40% to zakat authorities, 60% for self-distribution – Both methods – Pays to all zakat authorities – Wakalah – Amounts differ according to the income generated per state and incidents of poverty – 4 pillars: education, humanitarian aid, Islamic social finance, ihsan – Gets wakalah refund – Perlis zakat authority gives 50% wakalah refund
A
Self-distribution Zakat authority Wakalah zakat
Categories
How does your bank distribute your zakat?
Inductive codes Codes
Bank
Deductive codes
Question to participants
Table 3 Thematic analysis matrix (TAM) for Islamic banks’ zakat distribution practices
(continued)
(1) Selfdistribution (2) Zakat authority (3) Both methods (4) Wakalah zakat
Final themes
Islamic Banks and Their Zakat Distribution Practices 107
Question to participants
Deductive codes
Table 3 (continued)
– Pays to all 14 zakat institutions; prioritises Wilayah Persekutuan Kuala Lumpur, Selangor, Johor, and Sarawak depending on business activities – Retains a bigger portion for self-distribution – Wakalah zakat with MAIWP
E
Pays zakat to all zakat authorities Does not retain any zakat Amounts differ according to the deposits in each state Wakalah zakat: ranges from 1/8, 3/8, and up to 4/8
– – – –
– Pays to the state zakat authority only – Wakalah refund: 12.5% to 37.5%
LZS: fakir, miskin, muallaf , fi sabilillah, and gharimin
Codes
Inductive codes
D
Bank
– Both methods – Wakalah
– Zakat authority – Wakalah
Categories
(continued)
Final themes
108 N. I. M. A. Zaaba and R. Hassan
Question to participants
Deductive codes
Table 3 (continued)
Mainly self-distribution Aims for impactful zakat distribution Partners that have impact measurements Three categories: economic empowerment (sustainable income growth), education empowerment (fees, classes for students), and general ( fakir miskin/one-off) – Remainder (if available) will be given to the zakat authority and will receive wakalah of 1/8
– Selfdistribution
– – – –
G
Categories
– 70% for self-distribution and 30% to Pusat Pungutan Zakat (PPZ)- – Both methods – Wakalah MAIWP – Repair asnaf s’ houses during floods – Through applications or suggestions by the Shariah Department
Codes
Inductive codes
F
Bank
(continued)
Final themes
Islamic Banks and Their Zakat Distribution Practices 109
Question to participants
Deductive codes
Table 3 (continued)
– – – – – Does not retain for self-distribution – Pays zakat to Lembaga Zakat Selangor
J
K
Through the regional office Wakalah Three asnaf categories 3/8
– Relevant states that have business activities/branches – Gets wakalah refund – Does not retain for self-distribution
I
– Zakat authority
– Zakat authority – Wakalah
– Zakat authority – Wakalah
Pays zakat to all zakat authorities – Zakat authority Does not retain zakat – Wakalah Amounts differ according to the business activities of each state Priority given to zakat authorities that give more wakalah refund with lesser restrictions, such as MAIWP and Majlis Islam Sarawak – Wakalah refund, ranging from 2/8 to 3/8
Categories
– – – –
Codes
Inductive codes
H
Bank Final themes
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4 Discussion In a previous study by Zaaba and Hassan [9], it was found from the banks’ financial statements that two banks paid their zakat to zakat authorities, two banks used the self-distribution approach, and five banks used both methods. Their findings are different from this study’s findings that one bank self-distributed their zakat, six banks paid their zakat to zakat authorities, and four banks used both methods. The information on how Islamic banks distribute their zakat is important so that information asymmetry like this can be avoided. Although BNM does not require banks to disclose this information, banks are always welcomed to disclose more. In doing so, they can set a good example for other banks to emulate. Like the aforementioned methods, disclosing information on wakalah zakat can further enrich the non-numerical information provided in the financial statements of Islamic banks.
5 Conclusion and Recommendation The objective of this study was to explore how Islamic banks distribute their zakat. Information obtained from the interviews conducted with Islamic banks’ representatives showed that self-distribution was the least popular and payment to zakat authorities was the most frequently used distribution method. Even though BNM specified the minimum requirement for the disclosure of information, it is up to the banks to disclose more information than required. It is important to note that this study is a continuation of Zaaba and Hassan [9], and part and parcel of Zaaba and Hassan [13].
References 1. Bank Negara Malaysia. Financial Sector Participants Directory. https://www.bnm.gov.my/reg ulations/fsp-directory. Accessed 7 Oct 2022. 2. BNM (2022) Financial Reporting for Islamic Banking Institutions. https://www.bnm.gov. my/documents/20124/938039/PD_Financial_Reporting_Islamic_Banks.pdf. Accessed 2 Nov 2022. 3. Rahman AA (2012) The Role of Zakat in Islamic Banking Institutions in Developing the Economy of the Poor and Needy in Malaysia. Tazkia Islam Finance Bus Rev 7.2:256–276. https://doi.org/10.30993/TIFBR.V7I2.16. 4. Jusoh WNHW, Ibrahim U (2017) Corporate Social Responsibility of Islamic Banks in Malaysia: Arising Issues. Islam Econ Stud 25:155–172. https://doi.org/10.12816/0036188. 5. PPZ-MAIWP WAKALAH. https://www.zakat.com.my/info-zakat/wakalah/. Accessed 7 Oct 2022. 6. Osmera SH, Wahid H, Mohd Noor MA (2021) Sustainable Zakat Distribution through Wakalah Contract. Int J Zakat 6:49–70.
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7. Pauzi NBM, Wahid H, Ahmad S (2014) Pengagihan Zakat oleh Institusi Kewangan: Kajian terhadap Bank Kerjasama Rakyat Malaysia Berhad (Bank Rakyat). In: 3rd International Conference on Accounting, Business and Economics (ICABEC2014). Terengganu, pp 1–9. 8. Ismail MY, Wahid H, Karim ZA (2016) Pengagihan Zakat Perubatan di Malaysia: Peranan Bank Rakyat. In: 3rd Conference on Malaysian Islamic Economics and Finance (CMIEF). Universiti Kebangsaan Malaysia, Selangor. 9. Zaaba NIBMA, Hassan R (2020) Calculation, Distribution and Disclosure of Zakat in Malaysian Islamic Banks. J Islam Asia Spec Issue Islam Bank Financ 17:162–181. 10. Herrity J (2022) How to Get the Most Benefit from an Informational Interview. In: indeed. https://www.indeed.com/career-advice/interviewing/what-to-expect-in-informationalinterview. Accessed 7 Oct 2022. 11. BNM List of Islamic Banks. https://www.bnm.gov.my/regulations/fsp-directory. Accessed 2 Nov 2022. 12. Noor MZM (2021) Ilustrasi Ringkas Analisa Tematik (TA) Menggunakan Perisian ATLAS.ti 8, 1st ed. Universiti Putra Malaysia, Serdang. 13. Zaaba NIBMA, Hassan R (2022) The Practice of Islamic Bank in Zakat Distribution: The Case of Malaysia. In: Alareeni B, Hamdan A (eds) Innovation of Businesses, and Digitalization during COVID-19 Pandemic. Springer, pp 183–193.
Role of Leadership Style as a Mediator on the Relationship Between Workplace Conditions on Job Stress Among Hotel Administrative Staff in Klang Valley Ikmal Malik
and Rudzi Munap
Abstract In this study, leadership style was used as a mediating variable to investigate the relationship between workplace conditions and jobs stress among administrative hotel personnel in Klang Valley. The determinants examined in this study include heavy workload, lack of recognition, and lack of opportunity to grow. A survey instrument in the form of a close-ended questionnaire was developed for the data collection process. Based on an examination of 131 respondents with a 65.5% response rate, heavy workload and lack of recognition demonstrated a weak but significant relationship with job stress. A high correlation was found between job stress and a lack of growth opportunities. Further findings revealed that the relationship between heavy workload, lack of recognition, and a lack of growth opportunities is fully mediated by leadership style. Overall, it is usual for hotel staff members to experience deadline pressure, lengthy workdays, shift work, unforeseen visitor interactions, and conflicts with superiors. While leadership plays a crucial role for the employees in their work environment, the hospitality industry’s administrative staff would experience less job stress if the relationship between these aspects could be identified. Keywords Job stress · Heavy workload · Lack of recognition · Lack of opportunity to grow · Leadership · Hotel industry
1 Introduction Job stress is an escapable and normal phenomenon that is costly for organisations [1]. This problem occurs due to conflicts experienced by employees with their supervisors, company or customers, thereby creating friction between both parties [2]. I. Malik (B) Faculty of Business, UNITAR International University, 47301 Petaling Jaya, Malaysia e-mail: [email protected] R. Munap UNITAR Graduate School, UNITAR International University, 47301 Petaling Jaya, Malaysia © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_11
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The working style is evolving and increasing demands culminate into job stress and poses a threat to employees’ health, productivity, and the organisation’s reputation. In the hospitality industry, employees always face challenges pertaining to job stress including unstable bureaucracy, organisational politics, job demands, and exorbitant anxiety and frustration that leads to poor performance. Although job stress has been addressed and depicted a reduction in expenses for employers, the underlying relationship remains unclear. Research related to job stress among administrative staff in the hospitality industry is still understudied [3]. On the other hand, leadership plays an important role and is critical in addressing job stress [4]. Previous studies found that leadership impacted job stress among employees due to a lack of encouragement from superiors, lack of support from others at work, and dealing with ambiguous situations [4]. Leadership is considered a potential mediator and one of the critical elements in the organisational context. The present study used the model of job stress by Cooper and Marshall (1976), who postulated that there are five sources of job stress. Specifically, high stress happened at the workplace due to intrinsic job activities, roles in the organisation, career development, relationship at work, and organisational structure and climate. However, given the limited information on job stress and well-being in the hospitality industry, this study focused on the relationship between job stress and heavy workload, lack of recognition, and lack of opportunity to grow among administrative staff in the hospitality industry. The research hypothesis is as follows: H1: There is a significant relationship between heavy workload on occupational stress among hotel administrative staff .
1.1 The Hospitality and Hotel Industries One of the challenges in the hospitality industry is to reduce employee turnover rates instead of finding suitable candidates to fill the vacancies. Due to role pressure, work overload, and long working hours, hospitality employees easily feel anxious and nervous, leading to dissatisfaction and negative emotions towards work [5]. According to [6], the tendency for employees to resign and get easily exhausted and irritated is due to frequently changing circumstances, facing a strenuous workload, and a lack of performance feedback. Therefore, the working environment in the hospitality industry can be stressful and elicit poor working conditions [7]. It was reported that employee turnover in the hospitality industry is near twice the average rate for all other sectors [8]. The economic downturn has made employee turnover more complicated and is expected to rise. On the other hand, poor leadership in the hospitality industry could cost the organisation hundreds of dollars due to employee turnover and the need to replace their position. A survey reported by [9] revealed that hotel staff experience stresses for 40 to 60% of the workday, leading to a drop in productivity. In the hotel industry, productive staff may lead to optimal financial
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performance, customer satisfaction, and loyalty. Hence, a significant difference could be achieved by proper management.
1.2 Heavy Workload and Job Stress Staff shortages refer to the increase in workload among employees [10]. A study found that a heavy workload is one of the most stressful work factors faced by employees at the workplace (Geuens, Franck, and Van Bogaert, 2018). Heavy workload has an impact on job stress [11]. In a study conducted by [12], 50% of employees felt stressed due to heavy workloads. Work overload was found as a cause of stress [13]. Therefore, pressure due to heavy workloads resulted in a severely stressful situation. The second hypothesis is thus stated as follows: H1: There is a significant relationship between heavy workload and job stress among hotel administrative staff .
1.3 Lack of Recognition and Job Stress Scholars argued that the hotel is a very sensitive or fragile industry [14]. The lack of recognition from supervisors is another contributing factor to job stress at the workplace [15]. With the absence of recognition, employees feel insecure about their position other than boredom and repetitiveness [16]. Cho et al. [8] emphasise that with no rewards given to employees, their outstanding performance would obviously result in job stress. Employees felt that their supervisors did not recognise their hard work towards the effectiveness and efficiency of the business operation. The following hypothesis will be tested in this study: H2: There is a significant relationship between lack of recognition and job stress among hotel administrative staff .
1.4 Lack of Opportunity to Grow and Job Stress A study conducted by Putri et al. [17] stated that the opportunity to grow is one of the highest drivers of engagement. Contrarily, the lack of opportunity to grow was the second-highest reason for employees to quit their job. This finding was also supported by Raina and Kalse [18] in which 26% of the employees opined leaving their jobs due to a lack of growth opportunities. The lack of growth opportunities produces uncertain and competitive work environments tributary to worry about [19]. Instead, stress at the workplace might be due to a lack of training, lack of promotion, and job insecurity [20]. Hawthorne’s study indicated that gumminess would increase
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employee satisfaction. The lack of gumminess will create a conflict where it can be a potential stressor for employees’ stress at the workplace [21]. Based on the reviewed studies, the following hypothesis will be explored in this study: H3: There is a positive relationship between lack of opportunity to grow and job stress among hotel administrative staff .
1.5 Leadership and Job Stress As cited by [22], the most influential factor in the workplace for employees is the leader. Leadership can affect employees’ well-being. Besides, ineffective leadership can negatively undermine employees’ ability and self-efficacy to perform their job [23]. Ineffective leadership and job stress are the major concerns for organisations and the global economy. Leadership has been noted as the most influential psychosocial factor for many employees because it affects psychological well-being and decreases performance (Jacob, 2019). The final hypothesis to be investigated in this study is given below: H4: Leadership mediates the relationship between workplace conditions towards job stress (Fig. 1).
2 Research Methodology This study employed a quantitative research method by exploring the relationship between independent variables (heavy workload, lack of recognition, and lack of opportunity to grow) and dependent variables (job stress), with leadership as the mediating variable. The questionnaires were distributed via online platforms to the administrative staff of 3-star hotels in Klang Valley. The inclusion criteria for the sample of respondents entailed employees from the administrative department and specifically those dealing directly with hotel customers. A total of 200 employees were invited to participate but only 131 staff completed the questionnaire. Thus, the overall response rate was 65.5%. The remaining incomplete questionnaires were removed from the data set due to low factor loading values. Workplace Conditions Heavy workload Lack of recognition Lack of opportunity to grow
Leadership
Job stress
Fig. 1. Proposed framework of workplace conditions towards job stress, mediated by leadership
Role of Leadership Style as a Mediator on the Relationship Between … Table 1 Convergent validity analysis
Construct
Composite Reliabilities
117
Cronbach’s Alphas
AVE
Heavy workload
0.927
0.910
0.615
Lack of recognition
0.943
0.931
0.647
Lack of opportunity to grow
0.950
0.941
0.681
Leadership
0.828
0.761
0.581
Job stress
0.893
0.864
0.662
3 Findings 3.1 Convergent Validity Analysis Convergent and discriminant validity was employed in this study to ascertain how well the measurement items relate to the construct. The convergent validity used three tests, Composite Reliability, Item Reliability, and Average Variance Extracted (AVE). All the tests were performed in SMART PLS. As shown in Table 1, all the Cronbach Alphas and Composite Reliabilities were above 0.7. Hence, the measurement scale items used in this study have good reliability and good internal consistency. The AVE measures the level of variance captured by a construct versus the measurement error. The values above 0.7 are considered very good, whereas those ranging from 0.5 to 0.7 are acceptable [24]. Since all the constructs in this study are above the recommended value of 0.5, they are considered acceptable (Table 1).
3.2 Factor Loading Analysis Table 2 depicts the item loading for this study. Overall, the loading must be equal to or greater than 0.5 to represent the adequacy of the reliability of the measurement items. As indicated in Table 2, all the items had a loading above 0.5. This study used bootstrapping to test the significance of the loading since PLS is a non-parametric procedure.
3.3 Correlation Analysis As reflected in Table 3, the heavy workload was found to have a significantly weak relationship (0.261, p-value—0.003) with job stress. Similarly, the lack of opportunity to grow revealed a significantly weak relationship (0.360, p-value 0.000).
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Table 2 Factor loading analysis Factor Work overload
Lack of recognition
Lack of opportunity to grow
Leadership
Variables in the factor
Factor loading
I experience excessive work pressure
0.724
I work for long hours, overtime and even on holidays
0.755
I am unable to meet the demands of my job
0.826
I spend so long at work that my outside relationships are suffering
0.803
I am so busy, and I find it increasingly difficult to concentrate on the job in front of me
0.833
I feel tired during the day due to the excessive workload
0.830
My job involved an excessive amount of work
0.814
My job involved a lot of repetitive work
0.676
I feel appreciated when I complete a task
0.663
My superior always thanks me for a job done
0.759
I received adequate recognition for doing my job well
0.850
I am made to feel that I am an asset to this organisation
0.801
When I perform an outstanding task, the organisation recognises it
0.834
I received recognition from colleagues when my job performance is good
0.823
My manager always thanks me for a job well done
0.838
I find the workplace is conducive when my manager recognises my work
0.818
This organisation has a recognition programme in place
0.833
The leadership in my organisation strongly supports the career 0.855 development of staff Staff understand the capabilities that the organisation requires in the next 5 years
0.747
The performance appraisal process in this organisation places sufficient emphasis on career development
0.845
Staff understand what their role is in their career development
0.808
High-quality technical training is available to support staff development
0.877
Staff perceive that there is a fair process for filling open positions
0.840
This organisation usually promotes qualified internal people before hiring from outside
0.860
Supervisors are adequately trained to support the career development a policy of staff
0.716
My manager assists me to find meaning in my work
0.604 (continued)
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Table 2 (continued) Factor
Variables in the factor
Factor loading
My manager assists me in my personal development
0.690
I received personal attention from my manager when I feel rejected
0.731
My manager tells me what to do if I want to be rewarded for the work
0.584
I received recognition from my manager when I reach my goals 0.790 My manager calls attention to what I can get for what I accomplish
0.621
My manager is satisfied when I meet agreed-upon standards
0.728
I know the standards required from my manager when I carry out tasks assigned to me
0.641
Table 3 Correlation analysis OS
OS
LOR
LOTG
HW
Pearson correlation
1
0.650a
0.360a
0.000
0.000
0.003
N
131
131
131
131
Pearson correlation
0.650a
1
0.163
0.150
Sig. (2-tailed) LOR
LOTG
HW
Sig. (2-tailed)
0.000
0.063
0.087
N
131
131
131
131
Pearson correlation
0.360a
0.163
1
0.718a
Sig. (2-tailed)
0.000
0.063
N
131
131
131
131
Pearson correlation
0.261a
0.150
0.718a
1
Sig. (2-tailed)
0.003
0.087
0.000
N
131
131
131
a
0.261a
0.000
131
Correlation is significant at the 0.01 level (2-tailed)
Meanwhile, the lack of recognition (0.650, p-value—0.000) demonstrated a strong relationship with job stress [25].
3.4 Mediation Analysis The study assessed the mediating role of leadership style on the relationship between workplace conditions (heavy workload, lack of recognition, lack of opportunity to grow) and job stress. The results revealed a significant indirect effect of the impact
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Table 4 Mediation analysis Relationship
Total Effect
Direct Effect
Indirect Confidence Effects Interval
t- statistics Conclusion
Lower Upper Bound Bound HW → L → OS
0.5431 0.2841 (0.0000) (0.0000)
0.2591
0.1541 0.3666 9.7891
Partial mediation
LOR → L → OS
0.2290 −0.1361 0.3651 (0.0026) (0.0275)
0.2374 0.4985 3.0692
Full mediation
LOTG → L → OS 0.3077 −0.2933 0.6010 (0.0000) (0.0001)
0.4616 0.7675 4.3808
Full mediation
of workplace conditions (heavy workload, lack of recognition, lack of opportunity to grow) on job stress. Furthermore, there is a direct effect of workplace conditions (heavy workload) on job stress. The finding was still significant in the presence of the mediator, leadership style. However, lack of recognition and lack of opportunity to grow was found insignificant. Hence, heavy workload partially mediated the relationship between workplace conditions and occupational stress while others reflected completely mediating effects. As presented in Table 4.
4 Discussion and Conclusion 4.1 Discussion on Findings of the Study Based on the findings, all independent variables, work overload, lack of recognition and lack of opportunity to grow indicated a significant relationship with job stress. Leadership depicted full mediating effects on the relationship between the independent variables and the dependent variable (Table 5). Table 5 Result of hypotheses test Structural paths
P-Value
Decision
Heavy workload → Job stress
0.000
Supported
Lack of recognition → Job stress
0.027
Supported
Lack of opportunity to grow → Job stress
0.000
Supported
Heavy workload → Leadership → Job stress
0.000
Partially mediate
Lack of recognition → Leadership → Job stress
0.002
Fully mediate
Lack of opportunity to grow → Leadership → Job stress
0.000
Fully mediate
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5 Conclusion This study provided in-depth insight for employees and managers in the hospitality industry. Stakeholders in this industry need to understand and emphasise how job stress impacts the performance of the administrative staff. This could trigger higher staff absenteeism and work productivity. It is suggested that managers and organisations take several actions or strategies to address stress issues among employees, such as flexible work schedules, specific counselling programmes, and mentoring or coaching sessions. Furthermore, it is essential to develop a supportive work environment where employees can help each other in dealing with the negative effect of job stress. In these challenging times, more so with the global hit of COVID-19, stress has become a significant buzzword and legitimate concern. Thus, it is the management’s responsibility to provide stress avoidance and coping techniques to help employees handle job stress effectively and efficiently.
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A Survey on Community Felda Residents’ Preferences for Purchasing Family Takaful Hasannuddiin Hassan , Siti Rohana Mohamad , Mohd Ikhwan Aziz , and Rozana Saedon
Abstract The goal of this research is to identify and analyze the variables that predict if the residents of a Felda community have the aim and tendency to acquire family takaful. This review analyzed prior research on the factors that influence people’s decisions to purchase family takaful. People’s tendency to invest in family takaful is affected by their perspective, level of education, level of trust, and level of religion. A quantitative approach was employed for the data in this investigation. From the residents of Felda Keratong 1, a total of 361. The correlation analysis was conducted using SPSS. The research showed that there is a significant positive association between attitude, knowledge, trust, and religion and the intention to buy a family takaful policy. The study’s results will help Islamic financial institutions, especially takaful firms, improve their marketing strategies in response to changing customer preferences. Takaful providers might increase product sales and market share by learning more about the factors that influence customers’ decisions to purchase family takaful. Keywords Intentions · Attitudes · Knowledge · Trust · Religiosity
H. Hassan (B) · S. R. Mohamad · M. I. Aziz · R. Saedon University of Malaysia Kelantan, Jalan Pengkalan Chepa, 16100 Kota Bharu, Kelantan, Malaysia e-mail: [email protected] S. R. Mohamad e-mail: [email protected] M. I. Aziz e-mail: [email protected] R. Saedon e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_12
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1 Introduction Takaful Malaysia is a firm that offers insurance products in accordance with Shariah, known as takaful. Takaful businesses provide a variety of takaful products, including medical takaful, automobile takaful, investment takaful, and other Shariah-compliant takaful products (Azman, M. N. S. N et al). Malaysia is one of the first countries in the world to establish a capital structure based on risk for takaful. In a family takaful, participants mutually agree to contribute a certain amount to the takaful fund, in the form of tabarru’ or participative contribution. Participants receive financial benefits should they be met with death or permanent disability before the maturity of the takaful. This study looks at elements impacting an individual’s desire to acquire family takaful in one of Felda settlements in Malaysia. Felda settlements are made of low to middle-income families, with rubber and palm oil as the main sources of income. This research discovered that many individuals assume takaful and insurance to be similar, although, they are not. Every product has its own identity and reason for being made and sold to clients. They provide advantages and benefits as written in their policies. As for takaful products, their benefits succumb to ignorance, due to lack of information. Its utmost reason for being formulated is to avoid the involvement of Muslims with unislamic practices such as riba, gharar, and may-sir. The majority of FELDA settlers are yet to own takaful, either for themselves or their families. This is explained by the poor knowledge of it among Felda settlers. The majority of them has somehow formed a kind of mistrust with takaful bodies. The objective of this study is to determine the effects of four factors on individuals: attitude, religion, knowledge, and trust. This study also aims to examine the relationships between people’s perceptions, knowledge, and individual motivations to purchase takaful; as well as the role of trust, individual motivations, and religious beliefs in driving Felda settlers to buy family takaful. This study discusses the viewpoints that include the factors that influence the expectations of Felda settlers in family takaful. Takaful is an example of a Shariah-based framework used to mitigate risks of calamities such as accidents, thefts, fire, and even death, providing security to its owners in times of trouble. Concerning strategies to increase the uptake of takaful products, it is essential to raise local consumer interests and awareness in family takaful.
2 Literature Review This study uses the Theory of Planned Behavior (TPB) as a guide. Created by Icek Ajzen in 1991, its goal is to forecast closely human behavior. The concept of planned behavior posits that actions are directly influenced by behavioral motivations and that they may also predict behavior in a particular situation. It is a method used to understand and predict human behavior. In the simplest form, this idea explains that an individual’s actions are intimately tied to their goals (Azman, M. N. S. N et al).
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According to Ajzen (2008), attitude toward a behavior, the subjective norm, and the sense of control over the behavior, all affect the intention to behave. Applicable to many situations, this theory explains human behavior in a way that is easy to understand. Earlier, in 1957, Ajzen and Fishbein developed the Theory of Reasoned Action (TRA), focusing on attitudes and subjective standards to explain human behavior. More recently, in 2008, Ajzen introduced two more factors to TPB theory, giving a clearer explanation of human behavior. The Theory of Planned Behavior is presently known as the Theory of Perceived Behavioral Control and the Theory of BeliefBased Structure. He explained that an individual’s behavior may be seen through the perspective of their behavioral intents, which comprise attitude, subjective standards, and perceived behavioral control.
2.1 Intentions Intention, as defined by Ajzen [2], is the condition of being mentally prepared to act. His previous research has also shown that intentions influence future behavior. If a person has behavioral intentions, they are open to giving the behavior a chance and are prepared to make some sacrifices to make it happen. The intent to act in response to a certain circumstance or set of circumstances is what we mean when we talk about behavioral intentions. The researcher’s role in this study is to inquire about the buyer’s motivations. In the words of Shao et al. (2004), a person’s purchasing intention is their propensity to buy a certain good or service. Intention and the probability of making a purchase are strongly correlated. One’s genuine nature toward a certain scenario or situation may be reflected through their intentions [4]. The more powerful the intention, the more likely a person’s genuine character and behavior are to be discovered and executed.
2.2 Attitudes The term “attitude” refers to a relatively stable structure of beliefs, sentiments, and behavioral tendencies with regard to socially important things, organizations, events, or symbols. The best way to describe an attitude is as a propensity to behave in a certain way (Hogg and Vaughan, 2005). People’s attitudes are benchmarks in predicting the intentions and behavior of humans (Phau, Sequeira, and Dix, 2009). Customers with good attitudes bring the possibility of intention to purchase products or services offered. Humans may show favorable or unfavorable behavior toward a particular product or service that could affect their intention in purchasing them (Suki, 2010). Attitude is also known as a psychological tendency formed by assessing products or services with feelings of favor or disfavor (Eagly and Chaiken, 1993). However, whenever human encounters various options or choices, their intention is normally affected by better persuasion and marketing technique, leading to a
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purchase. People tend to choose a product or service based on its quality. However, many a time, it is hard to ellicit, whether a product is of good quality unless it has been tried for a while. Thus, a form of trust is somehow developed during good sales pitches, supported by customers’ attitudes, leading to intention to buy in customers. When people are presented with different options, they tend to choose the one closest to their attitude (Arvola et al., 1999). H1: Attitudes have a positive influence on people’s intentions to purchase family takaful schemes.
2.3 Knowledge Product knowledge is defined as awareness in consumers of specific information concerning a product [10]. The source of product knowledge can be attributed to the consumer’s experience with actual or similar products and advertisements aimed at persuading consumers to purchase a product (Rao and Monroe, 1988). The main wellspring of knowledge is the genuine encounter with the item and the notices that influence consumers’ decisions.1 Product knowledge can be measured subjectively, which is acquired via the consumer’s experience with the product, and objectively, which are in terms of cost knowledge and quality knowledge (Rao and Monroe, 1988). Cost knowledge surrounding takaful is about consumers’ understanding of, among others, contributions set to be paid monthly during its tenure and the coverage amount involved is more than the total contributions paid. Research finds that lower price is a key determinant of greater perceived value (Zeithaml, 1988). In the settings of takaful and insurance products, lower contribution yet higher coverage amounts are perceived as the ideals. Quality knowledge, on the other hand, is about the degree of ambiguity associated with a particular product (Hazen et al., 2011). Consumers’ decision for a particular product can be linked to their preference for known risk, rather than ambiguous one (Ellsberg, 1961). In the takaful product settings, ambiguity maybe associated with the ease of applying for the claim and actually succeeding in their claim. The rise of social media and the internet has been detrimental to many products since people are able to research and learn of others’ accounts of any product they seek to learn, influencing consumers’ perception of the whole industry at times. Unfortunately, bad publicity may affect people’s perception of takaful, leading to misguided judgment among consumers, and disarming them of the advantages that takaful may actually offer. H2: Knowledge have a positive influence on people’s intentions to purchase family takaful schemes.
1
Brucks, M. (1985), “The effects of product class knowledge on information search behavior”, Journal of Consumer Research, pp. 1–16.
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2.4 Trust There are several elements that might influence trust, and they can change over time. A requirement for making a buying decision Several elements have been shown to affect users’ first levels of trust. The credibility of the organization, the scale of the company, the corporate image they project, and the availability of third-party sellers, such as online bookstores, are all important factors. Family takaful is not widely accepted among Felda Keratong 1 settler because they do not perceive it as a pressing issue. They believe that tragic events, such as death or permanent disability, are very unlikely to occur in their lifetimes. Many are suspicious of takaful because of negative stereotypes, such as the difficulty of making a claim. Information about takaful is just one more item that may be researched on the internet in this age of globalization. Talking to a takaful representative is recommended since contributions and coverage levels change according to age, gender, and risk factors. As a result, agents are crucial in getting clients to feel comfortable making a purchase and develop a desire to make that purchase. H3: Trust have a positive influence on people’s intentions to purchase family takaful schemes.
2.5 Religiosity In a way that is in accordance with Islamic teachings and does not make the product less competitive than its conventional insurance equivalent, takaful is an innovative approach to meeting the requirements of the Muslim community with regard to their need for insurance. According to Zelizer (1979), religion has been a major source of resistance to life insurance throughout history. This is due to the fact that life insurance contradicts the belief that God is the one who creates one’s fate. The definition of religion that can be found in the Merriam-Webster dictionary describes it as an "affiliation with displaying dedication to divine truth, concentrating on religious ideas or warnings attentively and honestly." Islam, Christianity, Buddhism, and a number of other faiths are only some of the varieties of religion that are followed by people in Malaysia. Takaful was primarily developed to provide Muslims with insurance that did not include the practices of riba (usury), gharar (uncertainty), or maisir (compound interest) (gambling). H4: Religiosity have a positive influence on people’s intentions to purchase family takaful schemes. This research framework is shown in Fig. 1, which can be seen below. It is comprised of the study’s dependent variable as well as its independent factors. Intentions are being studied as a dependent variable in this study, whereas attitude, knowledge, religious practice, and trust are being investigated as independent factors. The link
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Knowledge (Brucks 1985) Intentions (Ajzen 1991) Trust (Chen & Corkindale 2009)
Religious (Nailed Mohamad Kamil & Norsham Mat Nor 2014)
Fig. 1 Individuals’ intentions to purchase family takaful in Felda Keratong 1 and the elements that affect such intentions
between the elements that impact individual intentions to acquire family takaful among the community in Felda Keratong 1 is shown in this figure.
3 Methodology Methodology for conducting research is essential to the success of any investigation. The quantitative method of gathering information was selected for this study. By gathering and evaluating numerical data, researchers conducting quantitative studies examine and describe concrete phenomena (Nana, 2005; Chua, 2006; Fraenkel, 2007). In order to shed light on a mystery or establish a causal relationship between two or more variables, researchers often resort to statistical tests. When it comes to reasoning and critical thinking, the quantitative approach is a reliable and effective way. Questionnaires were used to collect data from participants in this research. In this case, the people of Felda Keratong 1 are being sought. Before any conclusions can be drawn from the questionnaire data, a suite of analyses was performed on the raw data. The information was processed and put into the Social Science Software (SPSS) version 26.0 statistical program. The data were analyzed using SPSS for descriptive purposes, reliability, and inferential analysis. The demographics of the respondents were characterized using descriptive statistics, including means, medians, and modes. Inferential analysis using the Pearson correlation was used to examine the connection between the dependent and explanatory variables. Descriptive statistics are used to
A Survey on Community Felda Residents’ Preferences for Purchasing … Table 1 Cronbach’s alpha value of variables
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Variables
Number of item
Cronbach’s alpha value
DV
Intentions
4
0.884
IV
Attitude
4
0.858
IV
Knowledge
4
0.880
IV
Trust
4
0.880
IV
Religiosity
5
0.911
make broad inferences about the respondents’ demographics. T-tests were used to see whether there was a statistically significant difference in the causal and regression studies.
4 Result 4.1 Reability Analysis The reliability test is used to determine whether a scale is free of random error. Reliability indicates the degree to which it is free from bias, ensuring consistent measurement over time and across various items in the instruments. The Cronbach’s alpha coefficient test was used to determine the reliability of the scale instrument used in this study. Cronbach’s alpha coefficient was used in this study to determine the internal consistency of the scales used in the survey. Each variable’s Cronbach’s alpha value is listed in Table 1. The table above shows the independent and dependent reliability coefficients for this study based on the rules of thumb of Cronbach’s alpha. According to Sekaran and Bougie [18], the reliability of a variable construct is said to be good if it has a Cronbach’s Alpha value > 0.70.2 The table shows that all variables are highly reliable which Cronbach’s Alpha value > 0.80. In short, the findings of the reliability tests support the appropriateness of the instruments used throughout this study and the concept tested is suitable for the study. Therefore, the outcome of the instruments is suitable for a higher level of analysis.
2
Sekaran, U. & Bougie, R. (2016). Research methods for business: a skill-building approach (7th ed.), United Kingdom: Wiley.
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4.2 Descriptive Analysis The mean of 20 items, tested according to each variable, is presented in Table 2 below. All items have mean scores above 3.00. This indicates that the majority of the respondents, which represent the community of Felda Keratong 1, agreed with the items’ statements of each variable and considered those items as major antecedents of intentions to family takaful.
Table 2 Summary of the means of items according to variable (N =361) Variables
Importance Mean
S.D
Intentions (DV) I1
I am likely to choose family takaful scheme in the future
4.38
0.772
I2
I expect to choose family takaful scheme
4.29
0.682
I3
I plan to purchase a family takaful plan
4.31
0.769
I4
Given the chance, I predict I will purchase family takaful scheme in the future
4.26
0.753
Attitude (IV1) A1
I think purchase of family takaful scheme is a good thing to do
4.36
0.706
A2
I believe the purchase of family takaful is useful
4.31
0.777
A3
I believe that purchasing family takaful insurance is a smart decision 4.32
0.667
Knowledge (IV2) K1
I just want to look into the idea of purchasing a family takaful scheme 4.28
0.751
K2
I’d like to know what contract is needed to purchase a family takaful 4.24 scheme
0.696
K3
I would like to know What benefits are covered if I buy family takaful 4.30
0.739
K4
I want to know how family takaful schemes are better to regular insurance
4.28
0.729
Trust (IV3) T1
Based on my knowledge of family takaful, I believe it is genuine
4.25
0.779
T2
Based on my experience with family takaful, I believe it values its customers
4.22
0.746
T3
Relying on my knowledge of family takaful, I believe it is reliable
4.25
0.765
T4
Based on my interpretation of family takaful, I believe it is consistent 4.16
0.770
Religious (IV4) R1
I think family takaful is consistent with the Islamic philosophy of performing takaful business.
4.32
0.767
R2
Family takaful, through my viewpoint, is established on the Islamic principle of business implementation
4.26
0.694 (continued)
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Table 2 (continued) Variables
Importance Mean
S.D
R3
I think the concept of takaful is formed on the Quran and Hadith
4.29
0.761
R4
I genuinely think family takaful is riba-free (usury)
4.25
0.752
R5
Family takaful, in my perception, is exempt of fraud (gharar)
4.26
0.718
Table 2 above contains a summary of the generated values for all variables. Average the responses to the applicable questions provided the total score for each variable.
4.3 Correlation Analysis This section analyzed Pearson’s correlation between independent variables (Ivs) and dependent variables (DV). This section tests the mediator’s connection as a dependent variable. The direction and strength of the linear relationship between the Ivs and DVs were calculated using correlation coefficients. Pearson’s correlation coefficients ® indicate a positive or negative correlation with a range from −1 to +1. According to Pallant (2007), the absolute va’ue’s size provides information on the strength of the relationship. The table below summarizes the results of the correlations between the independent and the dependent variables (Table 3). The table showed all factors connected positively. Table 4 summarizes and explains this study’s main hypotheses.
Table 3 The correlation between the independent variables and the dependent variables (N=361)
Dependent variables Customer value, DV1 Attitude, IV1 Knowledge, IV2 Trust, IV3 a Correlation
Pearson correlation
0.794a
Sig. (2-tailed)
0.000
Pearson correlation
0.800a
Sig. (2-tailed)
0.000
Pearson correlation
0.809a
is significant at 0.01 level (2-tailed)
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Table 4 Summary of results of the study hypotheses Hypothesis
Pearson correlation
Result
1
H1 :
Attitude have a positive influence on people’s intentions to purchase family takaful schemes
0.794
Supported
2
H2 :
Knowledge have a positive influence on people’s intentions to purchase family takaful schemes
0.800
Supported
3
H3 :
Trust have a positive influence on people’s intentions to purchase family takaful schemes
0.809
Supported
4
H4 :
Religiosity have a positive influence on people’s intentions to purchase family takaful schemes
0.867
Supported
4.4 t-Test A t-test is a type of inferential statistic used to determine if there is a significant difference between the means of two groups, which may be related to certain features. Table 5 shows the results of the t-test. Table 5 indicates that there are 372 people in the entire sample, of whom 180 are men and 192 are women. Although the problem statement assumes that the level of awareness in Felda Keratong 1 is low, the results show that the level of awareness there is high. In addition, the problem statement claims that takaful coverage is lower in rural than in urban areas, but the findings of this study show that residents of Felda Keratong 1, whether they are men or women, have a positive attitude toward takaful and a strong desire to purchase it. They also have a high level of knowledge about Table 5 The results of t-test Group statistics Gender Attitude Knowledge Trust Religiouss Intentions
N
Mean
Std. deviation
Std. error mean
Male
180
4.3524
0.65253
0.04868
Female
192
4.3045
0.55529
0.04125
Male
180
4.3067
0.66015
0.04943
Female
192
4.2584
0.58974
0.04381
Male
180
4.2694
0.68438
0.05106
Female
192
4.1836
0.62561
0.04628
Male
180
4.3091
0.68567
0.05116
Female
192
4.2435
0.58136
0.043
Male
180
4.3575
0.6582
0.04827
Female
192
4.2562
0.61098
0.04503
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takaful and a strong sense of faith in it. A mean score of over 4.0 indicates knowledge of takaful.
5 Discussion In this section, the results of the t-test analysis are discussed for each hypothesis. The primary focus of this section is on the factors that influence an individual’s intention to purchase family takaful in the Felda Keratong 1 community. The concept of family takaful is not new to the fields of marketing and research; however, there is a lack of empirical evidence referring to it. After saying all of that, the researcher came to the conclusion that the results are both significant and supported. According to the findings of the analysis of the data, all four of the research objective are being supported to the extent that these factors play a significant role in the desire of an individual to acquire family takaful. The table that follows elucidates the research objectives, questions, and hypotheses, as well as the results that were collected (Table 6). The research was conducted in fulfillment of these four objectives, which are associated with the factors that could potentially influence an individual’s desire to buy a family takaful. Family takaful aims to protect heirs or beneficiaries of the insured against the unexpected turn of events that may jeopardize financial security. From the result above, attitude indeed plays an important role in triggering the intention to purchase. In simple words, the best portrayal of attitude among takaful agents, full disclosure of information about the family may indeed spark intention among customers to purchase. This is also true for the attitude shown by the settlers of Felda Keratong 1, which could help them to be more open to recommendations, leading to the intention to purchase. Attitudes associated with openness to suggestions, the urge to learn, and showing interest are positive attitudes that may lead to intention to purchase takaful. The findings showed that there is a positive correlation between individuals’ levels of knowledge and their intentions to purchase family takaful policies. Product knowledge is awareness of information related to a particular product [10]. A genuine experience with the product or one similar and information provided by takaful experts or by relevant sources may influence consumers’ decisions. Knowledge can further be increased by asking relevant questions to the experts, improving insight into the matter. The clearer the picture, the more likely consumer to decide to purchase a family takaful. According to the findings, the hypothesis that trusts positively influences individual intention is supported. This indicates that trust performs a role in the decision that consumers make regarding whether or not to make a purchase. Early trust is essential to user behavior because it marks the beginning of the trust-building process and because numerous factors have the potential to have an effect on it. This gives credibility to the statement made by Chen Corkindale [11], which asserts that trust
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Table 6 Summary of research objective, research questions and key findings Research objective
Research questions
1. To study the relationship between the attitude and people’s intentions to purchase family takaful schemes
1. What is the H1 : relationship between the attitude in people’s intentions to purchase family takaful schemes
Research hypothesis
2. To study the relationship between knowledge in the community of Felda Keratong 1 and people’s intentions to purchase family takaful schemes
2. What is the relationship between knowledge and people’s intentions to purchase family takaful schemes
3. To study the relationship between trust in the community of Felda Keratong 1 people’s intentions to purchase family takaful schemes
3. What is the H3 : relationship between trust in people’s intentions to purchase family takaful schemes
4. To study the relationship between religious belief in the community of Felda Keratong 1 and people’s intentions to purchase family takaful schemes
4. What is the relationship between religious belief in people’s intentions to purchase family takaful schemes
H2 :
H4 :
Result
Attitude has a Supported positive influence on people’s intentions to purchase family takaful schemes Knowledge have a positive influ-ence on people’s intentions to purchase family takaful schemes
Supported
Trust have a positive Supported influ-ence on people’s intentions to purchase family takaful schemes
Religious have a positive influ-ence on people’s intentions to purchase family takaful schemes
Supported
is a complicated and multi-faceted idea that encompasses a wide range of conditions that are in a state of constant flux. Hypothesis, religious belief positively influences individual intention in purchasing family takaful among Felda Keratong 1 settlers, is supported. This is agreed by Waseem et al. (2017) in their study on the religious aspect influencing contributions in takaful memberships. Since takaful prevents Muslims from illegal practices namely riba (interest), gharar (uncertainties), and maysir (gambling), religious belief does affect Muslim consumers to decide on takaful, and not conventional insurance. The majority of the settlers in Felda Keratong 1 are Muslims, and they tend to believe they should purchase takaful. Religious belief results in trust in family takaful among Muslim consumers. Religious belief too makes Muslims aware of their responsibilities to provide for the family, and ensure their welfare should death takes away the sole breadwinner.
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6 Conclusion People in Felda Keratong 1 are interested in buying family takaful in a big way, according to the results. To recap, the findings of this study shed light on the reasons that motivate residents in Felda Keratong 1 to buy family takaful. The purpose of this study is to examine the variables that motivate residents in Felda Keratong 1 to acquire family takaful insurance. Analysis of the data shows that there are positive correlations between the independent variables of attitude, knowledge, trust, and religion and the intention of individuals to acquire family takaful. Given its significance in ensuring a family’s financial stability, this issue merits more investigation in the future. Instilling the proper mindset, offering information in the best and easiest manner to understand, establishing trust in the process, and emphasizing the spiritual side of takaful should be at the center of takaful providers’ marketing efforts. In this study, it is suggested that, for the sake of long-term economic stability, future research should add consumer health knowledge, educational attainment, and disposable income to the factors that affect customer purchase intent. According to the research, all three of these things make people more likely to make a purchase. The propensity of takaful and insurance agents to make sales is another area that should be investigated in future research. The culture of takaful businesses could be looked at in the future as a second area to study. It is widely believed that takaful operators offer a wide variety of products, but in practice, agents typically only highlight a subset of these products to customers, typically those that require a higher monthly contribution, and thus discourage customers with lower incomes from purchasing insurance. As a further step, maybe raising agents’ consciousness of the need to protect all families, not just those with more disposable cash, above commissions would be a good idea. Highquality research results are provided to the end user thanks to the study’s use of a causal analysis technique, which allows the researcher to identify and assess the cause and effect of the variables within themselves. This research confirmed all four ideas. In order to ensure a better and safer future for their customers, takaful operators, and agents should work to change their mindsets by improving their education, expanding their information networks, and fostering an environment of trust and faith.
References 1. Abdullah, N. I. (2012). Analysis of demand for family takaful and life insurance: a comparative study in Malaysia. Journal of Islamic Economics, Banking and Finance, 113(470), 1–20. 2. Ajzen, I. (1991). The theory of planned behavior. Organizational behavior and human decision processes, 50(2), 179–211. 3. Ajzen, I. (2002), “Residual effects of past on later behavior: habituation and reasoned action perspectives”, Personality and Social Psychology Review, Vol. 6 No. 2, pp. 107–122. Factors that influence individuals’intentions. 4. Ajzen, I. and Fishbein, M. (1975), “Belief, attitude, intention and behavior: an introduction to theory and research”.
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5. Aziz, A. P. D. A. A. (2017). Leveraging on religious and ethical aspects in marketing takaful products-Malaysian experience. European Journal of Social Science Education and Research, 4(3), 57–62. 6. Aziz, S., Husin, M. M., Hussin, N., & Afaq, Z. (2019). Factors that influence individuals’ intentions to purchase family takaful mediating role of perceived trust. Asia Pacific Journal of Marketing and Logistics. 7. Aziz, S., Md Husin, M., & Hussin, N. (2017). Conceptual framework of factors determining intentions towards the adoption of family takaful-An extension of decomposed theory of planned behaviour. International Journal of Organizational Leadership, 6, 385–399. 8. Azman, M. N. S. N., Basri, N. S. M., Judi, N. F., & Bakar, S. H. A. (2022). The factors that influence individual’s intention to purchase family takaful among the community at Felda Keratong 1 (Bachelor’s dissertation, Universiti Malaysia Kelantan). 9. Bhatti, T., & Husin, M. M. (2019). An investigation of the effect of customer beliefs on the intention to participate in family Takaful schemes. Journal of Islamic Marketing. 10. Brucks, M. (1985), “The effects of product class knowledge on information search behavior”, Journal of Consumer Research, pp. 1–16. 11. Chen and Corkindale (2009) Towards an understanding of the behavioral intention to use online news services: An exploratory study. 12. Czellar, S. (2003), “Consumer attitude toward brand extensions: an integrative model and research propositions”, International Journal of Research in Marketing, Vol. 20 No. 1, pp. 97– 115. 13. Grabner-Kräuter, S., & Kaluscha, E. A. (2003). Empirical research in on-line trust: a review and critical assessment. International journal of human-computer studies, 58(6), 783–812. 14. Hassan, Rusni & Salman, Syed & Kassim, Salina & Majdi, Hafiz. (2018). Awareness and Knowledge of Takaful in Malaysia: A Survey of Malaysian Consumers. International Journal of Business and Social Science. 9. 45–53. https://doi.org/10.30845/ijbss.v9n11p6. 15. Jiang, P., & Rosenbloom, B. (2014). Consumer knowledge and external pre-purchase information search: A meta-analysis of the evidence. In Consumer Culture Theory: Emerald Group Publishing Limited. 16. Kim, K., & Prabhakar, B. (2000). Initial trust, perceived risk, and the adoption of internet banking. ICIS 2000 Proceedings, 55. 17. Morgan, R.M. and Hunt, S.D. (1994), “The commitment-trust theory of relationship marketing”, The Journal of Marketing, Vol. 58, pp. 20–38. 18. Sekaran, U., & Bougie, R. (2016). Research methods for business: a skill-building approach (7th ed.), United Kingdom: Wiley. 19. Van Deventer, M. (2015). Generation Y students’ perceived utility and trust in mobile banking. North-West University (South Africa), Vaal Triangle Campus.
Sustaining Commodity Technology Practise: Persuasive Packaging Approach for Fermented Dried Salted Fish of Ikan Bekok Tengku Fauzan Tengku Anuar , Nurul Syahida Mat Hussin, Salini Aina Mamat , Izati Nabila Marzuki, Md. Ariff Ariffin, Wan Ahmad Amir Zal Wan Ismail, Azwan Abdullah, Nurhanan Abdul Rahman, Hafizi Mat Salleh, Siti Asma Md. Rasdi, and Ren Chen Yang
Abstract The technology of cured fish that relies on recipes of local organoleptic preferences has gained popularity in local gastronomic products. In Malaysia, posthandling of catch has been processed into several products such as budu (fermented anchovies), belacan, cencalok (fermented shrimps), pekasam, ikan bekok (fermented salted fish), fish crackers, etc. As ascending demand, it has been recognised from domestic to global. These products have been packed with conventional methods to prevent stinky rotten smells. Besides, the unstructured promotion of local products turns to vanish the commodities’ identity with irresponsible claims. Therefore, this study aims to propose persuasive packaging for better storage, marketing, and commercialisation. This paper uses qualitative descriptive methods by reviewing documents on the fermented, dried salted fish technology, merging with the fieldwork observations, and interviewing the processor. Based on the outcome, salt and water were the main ingredients to cure ikan bekok. The processors tend to put the ready stock in the freezer, wrapped in plastic, or stored in containers. Once purchased, they T. F. T. Anuar (B) · N. S. M. Hussin · S. A. Mamat · W. A. A. Z. W. Ismail · A. Abdullah · N. A. Rahman · H. M. Salleh · S. A. Md. Rasdi Institute for Poverty Research and Management (InsPeK), Universiti Malaysia Kelantan, Kelantan, Malaysia e-mail: [email protected] T. F. T. Anuar · I. N. Marzuki · Md. A. Ariffin · R. C. Yang Faculty of Creative Technology and Heritage, Universiti Malaysia Kelantan, Kelantan, Malaysia W. A. A. Z. W. Ismail Faculty of Language Studies and Human Development, Universiti Malaysia Kelantan, Kelantan, Malaysia A. Abdullah Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Kelantan, Malaysia N. A. Rahman Faculty of Agro-Based Industry, Universiti Malaysia Kelantan, Kelantan, Malaysia © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_13
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are wrapped with newspaper and plastic bags. This paper proposes packaging that can enhance the conventional storage methods and sanitation quality, and be visually persuasive. In conclusion, the cross-sectional methods give a holistic approach to the technology. It has the potential to extend into the chain of systematic operations, methods of storage, and commercialization, as well as a convincing identity for local products. Keywords Commodity technology · Fermented dried salted fish · Ikan bekok · Brand · Packaging · Local products
1 Introduction 1.1 Future Sustainability Future sustainability on commodity technology practises is interested in technological transformation system to revitalise cured fish products and their production practises. Technological innovation can positively accelerate and enhance the evolution of a better sustainable food system [1]. Thus far, the understanding of local knowledge consists of practise and technologies related to commodity beliefs and daily activities [2]. Meanwhile, packaging can be interpreted as a combination of art, science, and technology that represents a brand. Therefore, this study aims to merge the technology practise with local knowledge of producing ikan bekok and designing the development of product packaging. Undeniably, these elements are interrelated as a strategy to enhance the quality of perishable products, which tends to seek market attention, constantly produce local products, and represent the local gastronomic commodity identity. Interestingly, the package food industry or durable food has experienced a surge in demand during the ongoing COVID-19 pandemic [3]. Insight package food products from local or Small and Medium Enterprises (SMEs) can get an advantage and wide market demand other than seasonal demand. As introduced, packaging plays a vital role as a tool of communication, product protector, and attraction for commercialisation purposes [4]. However, low-quality output or image of SME products impairs the actual quality of the taste due to the first consumer’s sight [5, 6]. Fortunately, the Malaysia Agricultural Research and Development Institute (MARDI) and Packaging Council of Malaysia (PACMA) are among several agencies that contribute to consulting and transforming SME products into appropriate standards to get marketable domestically and internationally. The influence can be derived from packaging, and it includes the packaging design [4], information display [7], font style and packaging materials [8], and introducing and reminding the local production into a broad market competition. Therefore, this study tends to approach local products of fermented salted fish or ikan bekok to be applied to a persuasive package design.
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This paper focuses on the handmade process of fermented salted, dried fish or ikan bekok by the Tumpat residents in Kelantan and the purposing of appropriate packaging for the product. ikan bekok is one of the authentic traditional dishes in the form of ‘ready to cook’; made, sold, and consumed by the locals, especially in Kampung Geting, Tumpat, Kelantan. ikan bekok undergoes the overnight fermentation process with salt water, rinsed thoroughly with clean water, and basked dry under the sun for approximately two hours. This is carried out as a community activity situated close to the shore of Pantai Sri Tujuh, and it was found that most of the family heads are fishermen and their spouses are the ones who do the processing (processors) of local products. Even though there is higher demand on the external market, there are several constraints to marketing the products due to solid scent and poor management of packaging. Thus far, ikan bekok has become the identity and icon recognised for gastronomic attention in Tumpat, Kelantan. It can contribute to sustaining local knowledge of the process and technology of fermented, salted, and dried fish. Therefore, it is very significant to study the technology practised by the locals, identify the packaging used, and propose persuasive packaging to enhance the quality during ikan bekok commercialisation.
2 Literature Review This literature review section prompts to introduce the topic of the local food preservation process, the technology preferences involved, and the packaging of perishable local products. Generally, it is a glance of concern related to the issue of sustaining the local commodity technology practises, indeed a wise choice in suggesting the persuasive packaging. This section consists of two (2) subtopics, discussing (1) technology properties in post-harvest handling of catch, and (2) the element of packaging inducement for perishable local products.
2.1 Food Preservation Approach and Technology Properties Involved in Post-Harvest Handling of Catch Food is a basic need for human beings. Consuming food is one of humanity’s most fundamental requirements. The fact that it imparts to has strong influences by religious, racial, and ethnic groups is what makes it significant. Then, there is trigger action for every region and its community to have their own authentic dietary habits based on their culture and accessibility to edible raw resources [9]. In the tropical climate region of the world, there are numerous discussions on the perishable products based on fisheries, that also aim to fulfil the daily need and contribute to stable commodities income [10]. The past study shows that there are several traditional processes to cure perishable products by salting, smoking, and drying [11]. Then,
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it comes with various intelligent technology approach and preparation like canning, sous-vide cooking, and many more [11]. Generally, technology includes the physical element of techniques, tools, and machines created by the human. The basic component of technology frequently relates to knowledge or technique and doing things [12]. Meanwhile, in traditional technology, the method usually uses the simple, cheapest, and most convenient tools invented by the surrounding as it was customised to occupy with daily routine or activities. The preservation of food activities carried out by the locals provides insight into the fact that knowledge and technology are naturally acquired via a lengthy period of experience, practices, and experimentation based on trial and error in order to preserve and provide shelf-life protection for food that is prone to spoilage. Therefore, the definition of technology in this paper refers to ‘a set of exploring activities including practises, process, and tools used to produce an output’. The recognition of this valuable traditional knowledge and technology significantly be an indication for today’s technology and machinery development. Through a survey of prior studies related to the perishable products inspired by local food consumption and its traditional making process, the collated details can be categorised into two, namely (1) the exploration approach and (2) the process that involves the post-harvest handling of catch. The exploration approach refers to the activities that involve either traditional or laboratory practises. Meanwhile, the process in post-harvest handling of catch can be categorised into five (5) elements for preparing the perishable products, which are (1) provision of raw material resources, (2) soaking, (3) rinse or drain, (4) storage, and (5) packaging.
2.2 The Packaging The preservation technology of ikan bekok or related to perishable products gains its popularity towards the study of enhancing every stage of the involved processes. The research is interested in traditional technology up to advanced technology, however, there are several obstacles for coastal and riparian communities, who are producing seafood-based products due to small capital, low technological investment, and low management of labour, skills, and finance [5]. In addition, it drives to lack emphasis on the quality of packaging elements for the produced products, thus affecting the consumers buying decisions [13]. Therefore, based on the elements of technology identified, the least possible investment appropriate for local and small business enterprise products might be its packaging. A survey has been conducted among the entrepreneurship in United States regarding packaging, and 80% agreed that packaging is one of the important elements to ensure the success of brands and products [14]. Packaging is a process or operation of wrapping, packing, or putting a product into a unit or container purposely for protecting the products from physical or biological damage. It is adequate for packaging to have three (3) key roles: ensuring the quality of the products, good sales appeal, and satisfaction to consumers. Packaging
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serves the purpose of preventing damage to the product, helping to sell the goods, and making it easier to utilize the product [15]. Besides, packaging also acts as marketing communication and first-sight attraction for consumers’ purchased desire [6]. Packaging would also play a critical role in preserving food production from primary packaging treatment until the secondary packaging treatment. Previous studies show that the main discussion on packaging is for shelf-life extension and attractive display (Table 1). Table 1 shows the summary of the packaging issues by a previous scholar that has been discussed by times. Therefore, by considering the closest and controllable Table 1 The extension and development of previous discussions on packaging issues Item
Category
Role play
Packaging issues
References
Packaging
Primary products packaging
Shelf-life extension
Modified atmosphere storage Vacuum packaging Ethanol vapour generators The use of oxygen absorbent-generators
[16, 17]
Active packaging
[18, 19]
Design elements for packaging Shape of packaging
[13, 20]
Interactive Packaging Augmented Reality (AR) Webcam-based augmented reality Smart phone/ tablet-based augmented reality
[21]
Smart packaging Animated graphics using lenticular labels Animated graphics using optical effects Colour change labels for freshness and ripeness alerts Electronic animated lighting effect on packaging Electronic animated graphic and sound on packaging Electronic animation with integrated wireless power
[21]
Packaging
Secondary products packaging
Appealing packaging
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factors in handling the end products, putting awareness about the packaging among local practitioners would give the concern on enhancing the quality of preservation and distribution of local products for domestic or international market demand. Packaging has a considerable influence on the consumer’s decision to purchase a product. Small and Medium Enterprises (SMEs) vigorously produce and have a high demand for authentically organoleptic local goods. Unfortunately, its market positioning is limited due to a lack of attention to packaging elements that can persuasively communicate the product’s quality, cleanliness, and shelf-life. According to Rundh (2016), packaging design should take into account the consumer’s mindset, the continuity of their daily activities, and the value they receive in return. Whilst, the packaging is also a way of non-verbal communication that represents the image, identity, and specific information for prospective buyers [23]. Therefore, the packaging concept for local product packaging has been determined to influence customers’ buying decisions. Consumers obviously prefer to purchase the items with attractive and timely packed products rather than customary packaging, which does not provide adequate information needed. As consumers are keen on the element that are embodied with the products, packaging design elements not only offer informative details on the food specifications, but they can also accelerate sales with attractive design innovations.
3 Methodology This study uses primary and secondary data to get adequate results in identifying the preservation technology of ikan bekok, which is traditionally produced and practised by the local community in the coastal area of Tumpat, Kelantan, Malaysia. The strategy of an ethnographic approach involving the participant observation and interviews was conducted starting from December 2019 until March 2021. A semi-structured interview protocol was used to facilitate the interview sessions with ikan bekok practitioners and the researcher also has personal visits to their workplaces. All the interviews were audiotaped and the process of making ikan bekok was photographed and videographed for documentation and analysis. Meanwhile, secondary information was collected from books, online databases, and reports. The use of multiple sources and methods was intended to increase the construct validity of this research. The data collection technique for this study was performed through purposive sampling by interviewing, observing, and participating with ikan bekok practitioners.
4 Analysis and Results Analysis and results consist of the descriptive results on proposing the persuasive packaging for ikan bekok.
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4.1 Packaging of Ikey Bekok Tumpat The packaging process and presentation may tend to influence the consumer’s purchase decisions up to the consideration towards long-time transmission and transportation, consuming time, hygienic, freshness, and its appeal attraction. This study emphasised three criteria which include (1) the packaging design, (2) the packaging materials, and (3) the packing operations, signifying the persuasive packaging for Ikey Bekok Tumpat that has been proposed and used by practitioners. Table 2 indicates the criteria and explanation of the practices and implementation of the criteria.
Table 2 The preferable criteria of the packaging for the local production of ikan bekok and its explanations Criteria
Explanations
1. Packaging design (see Figs. 1 and 2)
There are two (2) types of proposed packaging design for ikan bekok, which are (1) plastic pack and (2) wrapping paper Plastic pack boosts the transparent elements that is important to show the freshness of the products. This pack also provides the nutritious information and ingredients used for ikan bekok. It is suitable to pack up to 500 g to 1000 g ikan bekok per pack Meanwhile, wrapping paper for ikan bekok can be used to pack for closest residence or oversized fish. It also one of the alternatives used to replace the newspaper that priorly used
2. Packaging materials
Description: Printed Laminated 3 side-sealed bag Material: Nylon/LLDPE 90 µm Size: (W)220 mm x (L) 320 mm Printing: 7 colours
3. Packing operations (see The proposed plastic pack for ikan bekok is suitable for use with a sealing machine or vacuum sealing machine. However, this study Fig. 3) operationally prefers and suggests the use of vacuum sealing machine as it has more advantages The advantages of sealing vacuum packing operation are determined as it offers— (1) Freshness: to prevent ikan bekok from mouldy, slimy and bad odour (2) Quality: to keep ikan bekok flavour taste better (3) Protection: stay fresh for longer time, can avoid freezer burn, and prevent food from breaking (4) Hygiene and food safety: it helps minimise the risk of bacterial growth (5) Organise: More organise for storage
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Fig. 1 Plastic pack packaging design for local products that are purposely created to enhance the packing process of ikan bekok
Fig. 2 Wrapping paper with the brand of Ikey Bekok Tumpat is also used to promote ikan bekok instead of using newspaper
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Fig. 3 Ready to cook ikan bekok product in vacuumed plastic packed
4.2 Brand of Ikey Bekok, Tumpat The brand of Ikey Bekok Tumpat represents the concept of coastal community products for promotion and recognition exclusively from Tumpat, Kelantan, Malaysia. Ikey Bekok Tumpat means fermented dried salted fish produced in Tumpat. It uses a local dialect of ikey mean ikan or fish. The logo comes with an illustration inspired by yellow croaker fish and customised Myriad Pro font for Ikey Bekok Tumpat. Yellow croaker fish or locally known as Ikan Gelama Rampang has yellow corvina on its body and most of the practitioners used this croaker fish as the main source to process the fermented dried salted fish. Figure 4 shows the logo used as the Ikey Bekok Tumpat with the flat colour code. The brand and packaging play a significant role in optimising the values of gastronomic delight for wider market demand domestically and internationally. It is essential to establish a response, which entails providing the general public with authentic food and boosting the economy by mobilizing the provided resources with the intention of preserving local knowledge as its products and the associated process. Besides, the development and implementation of social enterprise products may alleviate the
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Fig. 4 Ikey Bekok Tumpat logo with its flat colour code used as a brand to represent Tumpat’s local product of ikan bekok
generational poverty trap. Therefore, the knowledge of packaging issues and local knowledge of ikan bekok process richly gives a positive impact on the involvement of communities’ awareness and willingness to invest in certain criteria and processes. It could lead to consistent product quality control and attractive packaging, as both act as potential marketing strategies to expand local products.
5 Conclusion In conclusion, this study states that appreciating local knowledge, embracing the technology, and controlling the products’ quality can give an impact on commodification with the potential to increase domestic economic growth and human capital. Through the traditional technological process of preserving fish, ikan bekok is practically produced by the coastal and riparian communities. Although there is a tremendous demand for local food nowadays, ikan bekok is still ambiguously identified due to small productions and less attractive on its labels. In this study, the list of technology for the traditional process of ikan bekok has been categorised into the following: (1) preparing raw materials, (2) soaking process, (3) drying process, (4) storage, and (5) packaging. Meanwhile, as ikan bekok represents the local gastronomic products of Tumpat, Kelantan, it is significant to propose persuasive packaging as a response to the problem of packaging the local products. Therefore, persuasive packaging provides the brand of Ikey Bekok Tumpat, which emphasised on three (3) criteria, namely (1) packaging design, (2) packaging materials, and (3) packaging operational process. Acknowledgements This research acknowledges the Malaysia Ministry of Finance for providing financial support under UMK—MoF Social Enterprise Project, Code: (R/MOF/A0200/00373A/ 003/2020/00733) collaborates with Universiti Malaysia Kelantan (UMK) and implemented under Institut Penyelidikan dan Pengurusan Kemiskinan (InsPeK).
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Testing the Predictive Power of Machine Learning Algorithms for Stock Market Movements Based on Air Pollution Data Kelvin Lee Yong Ming
Abstract Air pollution has seriously threatened the lives of mankind. Governments throughout the world are taking several steps to reduce the impact of air pollution. Several recent studies found that variations in air pollution adversely affect the stock market movement by using the conventional statistical model, such as the fixed effect model and quantile regression. This study attempts to narrow down the methodological gap by testing the predictive power of machine learning algorithms for Singapore stock market movements based on air pollution data. Specifically, this study tested five machine learning algorithms—(i) Random Forest, (ii) XGBoost, (iii) ADaBoost, (iv) Support Vector Machine, and (v) K-Nearest Neighbour. The input data for the prediction comprised the closing prices, and index for PM 2.5 and PM 10. The accuracy of prediction was further measured by using MAE, MAPE, MSE, and RMSE. The results indicated that XGBoost has the highest accuracy in predicting Singapore’s stock price movements. The findings also suggest that the 1 day average (value from the previous day) of the closing price, and the index for PM2.5 and PM10 are suitable for the prediction of stock market movements. These findings serve as a guideline for stock market prediction among market participants when considering air pollution. Keywords Stock Market · Machine Learning · Air Pollution · Digital Technology
1 Introduction Air pollution is a major environmental and public health issue, which requires further attention from the scientific community [15]. It heavily affects the amount of carbon dioxide in the atmosphere, affecting how ultraviolet radiation and photosynthesis combine to generate global warming [13]. Air pollution may occur due to particulate matter (PM), ground-level ozone (O3 ), carbon monoxide (CO), sulphur dioxide (SO2 ), and nitrogen dioxide (NO2 ) [6]. However, the two most frequently used K. L. Y. Ming (B) Taylor’s University, Subang Jaya, Malaysia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_14
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descriptors for particulate matter are PM2.5 and PM10 . Both simply refer to the mass of all particles with an aerodynamic diameter of less than 2.5 m and 10 m, respectively. Thus, the present study employs PM2.5 and PM10 as the proxy of air pollution. Previous studies also revealed that air pollution tends to adversely affect the stock market movements [8, 12]. However, the relationship between air pollution and stock market movements is inconsistent with the findings of previous studies as depicted in Figs. 1 and 2. Figure 1 illustrates the movements of the Straits Times Index (STI) over the period from 9 January 2018 to 5 September 2022. This study considered the STI movements as the proxy of Singapore stock market movements. Generally, the Singapore stock market experienced a downward trend from 2018 to November 2022 and rebound to the current level of about 3,200. Meanwhile, Fig. 2 depicts that Singapore’s PM2.5 and PM10 levels were consistently below the level of 100, thus indicating an acceptable or low risk of air pollution. Controlling air pollution is also highly related to sustainable development goals (SDG), specifically SDG 13. Achieving the SDG goals may assist to improve human life and reduce the potential costs of air pollution. Previous studies applied different statistical models to predict the impact of air pollution on stock market movements. For instance, the fixed effect model was used to explore the relationship between air pollution and stock market movements [8]. In another study, quantile regression was employed to estimate the impact of air pollution on the stock market under different market conditions [12]. Nevertheless, the stock market data are complex. In contrast, the use of machine learning algorithms tends to analyse complex stock market data easily and generate stock market predictions with higher accuracy [21]. Thus, this study addresses the gap by including the
Fig. 1 Straits Times Index (9 January 2018–5 September 2022). Sources https://www.wsj.com
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Fig. 2 PM2.5 and PM10 in Singapore (9 January 2018–5 September 2022). Sources https://aqicn. org/city/singapore/central/
historical closing prices of STI, PM2.5 and PM10 as the input data for five different machine learning models. The main aim of this study is to identify the suitable period of STI, PM2.5 and PM10 to be included in machine learning models. In addition, this study attempts to identify the best machine learning model for predicting the Singapore stock market movements.
2 Literature Review Air pollution is a constant threat to the life of mankind. Regardless of the time that an individual is exposed to air pollution, the probability of developing the related disease increases indirectly [17, 25]. On the other hand, previous psychological studies revealed that air pollution can lead to several side effects, such as anxiety and mood disorders [11, 20]. However, technological advancement allows individuals to access air pollution-related data easily through several websites [28]. Thus, the current growing environmental consciousness appears to have a greater influence on an individual’s mood and emotions [24]. To some extent, air pollution also affects investors’ moods, thereby causing them to trade irrationally [26]. With the rising severity of air pollution and people becoming more mindful of environmental protection, researchers are beginning to focus on the relationship between air pollution and the stock market [22, 23]. Previous studies almost reached a consensus that air pollution adversely affects stock market movements. In the context of developed countries, air pollution has been documented to adversely affect
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stock market returns [16]. Similar results were reported in developing countries, specifically in China [29]. Furthermore, investors become risk-averse when they are faced with air pollution [10], while fund managers may feel depressed and engage in inappropriate trading decisions [27]. A recent study also revealed that stock returns decline as air pollution increases [8]. The researchers also posited that the negative impact of air pollution was greater for the younger firms with low institutional ownership. On the other hand, another study provided evidence that the impact of air pollution on the stock market was greater during the bullish market condition [12]. Furthermore, air pollution tends to adversely affect financial analysts forecasting [7]. Notably, previous studies only applied conventional linear statistical models to analyse the impact of air pollution on the stock market. [9] argued that the assumptions and restrictions of these statistical models may cause the model to fail in capturing stock data features. [9] also suggested that the machine learning models could work effectively in stock market prediction since they lack any presumptions. Previous studies also successfully applied machine learning models to predict stock market movements. For instance, [14] used the AdaBoost, Random Forest (RF), and Support Vector Machine (SVM) to predict stock market movements in the Bombay Stock Exchange (BSE). The researchers included historical stock prices, commodity prices, and foreign exchange rates as the input features. The results indicated that the AdaBoost model had the highest accuracy of 76.79% in predicting stock market movements. Besides, [1] included historical prices and technical indicators as the input features for the prediction of 10 selected stocks. They also concluded that tree-based ensemble models, such as RF and XGBoost, had higher prediction accuracy than the other models. In summary, this study investigated the impact of air pollution on the stock market using conventional statistical models. Despite several studies predicting stock market movements by using a machine learning approach, only limited studies have attempted to include air pollution as the input feature. This study aims to fill the research gap by including the proxy of air pollution as the input feature. The predictive power of a few models is then tested. The next section further discusses the data and methodology applied in this study.
3 Data and Methodology This study considered PM2.5 and PM10 as the proxy of air pollution. The daily PM2.5 and PM10 of Singapore were collected from the website link: https://aqi cn.org. The Straits Times Index (STI) was also collected from Investing.com. The sample period was covered from 9 January 2018 to 5 September 2022. Thereafter, the historical prices of STI, PM2.5 and PM10 were included as the input features for prediction. Five different machine learning models, namely, (i) Random Forest (RF), (ii) AdaBoost, (iii) XGBoost, (iv) Support Vector Machine (SVM), and (v) k-Nearest Neighbour were then tested. The accuracy of different machine learning
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models was determined based on four metrics, comprising Mean Absolute Error (MAE), Mean Absolute Percentage Error (MAPE), Mean Square Error (MSE), and Root Mean Square Error (RMSE).
3.1 Types of Machine Learning Models Random Forest: Random Forest (RF) developed by [2] has attracted significant attention from researchers and is widely used in several studies. RF are normally robust to overfitting as each forest is only presented with a subset of all the available features [3]. AdaBoost: AdaBoost model combined multiple weak learners linearly to enhance the ability of leaned rewards [22]. Weighted majority voting is used in the AdaBoost algorithm to give the weak learner with a small learning error rate a larger weight, and simultaneously decrease the weight of the weak learner with a large learning error rate [4]. XGBoost: XGBoost model proposed by [5] is another type of gradient boosting method with excellent scalability. This method has a fast-learning speed and higher prediction accuracy in comparison to the existing tree-based algorithms [9]. Support Vector Machine (SVM) and K-Nearest Neighbour (KNN): SVM mainly used the concept of the margin, which is the smallest distance between the decision boundary and any of the samples [19]. Meanwhile, KNN is a method used to identify the k-nearest neighbour closest to the testing sample data. Specifically, the distance between every test data and training data was first measured. The prediction is the average of the k-nearest neighbours’ output value [18].
4 Result and Discussion This section compares the performance of the five different machine learning models. The accuracy of the prediction is then determined using four metrics, namely MAE, MAPE, MSE, and RMSE. Table 1 depicts the MAE, MAPE, MSE, and RMSE for the prediction. Generally, the prediction accuracy was higher when the closing prices, PM2.5 and PM10 from the previous day were used as the input data. Figure 3 further illustrates the prediction of stock market movements by using the previous day’s closing price, PM2.5 and PM10 as the input data. Consistent with [1], the XGBoost appeared to be the best prediction model. Among the five different models tested, the results indicated that XGBoost was the best prediction model for the STI. Furthermore, this study found that the proxies of air pollution and closing prices from the previous day were better input data in comparison to the previous day’s data. The research findings are also consistent
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Table 1 Mean Absolute Error, Mean Absolute Percentage Error, Mean Square Error, and Root Mean Square Error for Five Selected Prediction Models MAE RF
XGB
Ada
SVR
KNN
MAPE
MSE
RMSE
1 day
23.7502
0.0077
1055.7171
32.4918
2 days
23.3996
0.0077
1014.9668
31.8585
3 days
27.9238
0.0092
1623.7223
40.2954
4 days
29.5162
0.0099
1782.5818
42.2206
5 days
28.1876
0.0091
1346.4920
36.6946
1 day
21.7494
0.0071
797.3670
28.2377
2 days
29.5881
0.0098
1693.3532
41.1504
3 days
26.8656
0.0088
1315.3618
36.2679
4 days
31.3001
0.0101
1707.3226
41.3198
5 days
35.0788
0.0114
2488.2915
49.8828
1 day
22.6073
0.0074
954.5522
30.8958
2 days
30.3216
0.0101
1787.6611
42.2807
3 days
28.3291
0.0093
1405.1175
37.4849
4 days
32.2826
0.0104
1766.0745
42.0247
5 days
40.1393
0.0131
2670.9904
51.6816
1 day
204.0372
0.0722
86687.6354
294.4276
2 days
166.5904
0.0574
60627.3614
246.2262
3 days
194.9908
0.0693
82792.4343
287.7367
4 days
179.5113
0.0631
71352.0904
267.1181
5 days
184.1425
0.0651
73,935.8451
271.9115
1 day
22.2331
0.0075
1081.5333
32.8867
2 days
25.5209
0.0085
1368.0686
36.9874
3 days
27.1723
0.0089
1668.7107
40.8499
4 days
30.7944
0.0101
1700.7078
41.2396
5 days
34.9058
0.0116
2431.2371
49.3076
Notes RF refers to the random forest, XGB refers to the XGBoost, Ada refers to the AdaBoost, SVM refers to the support vector machine, and KNN refers to the k-nearest neighbour. MAE refers to Mean Absolute Error, MAPE refers to Mean Absolute Percentage Error, MSE refers to Mean Square Error, and RMSE refers to Root Mean Square Error. 1 day to 5 days refers to the n-days moving average of historical closing prices, PM2.5 and PM10. For instance, 2 days simply refer to the situation when the 2 days moving average of historical closing prices, PM2.5 and PM10 are included as input data for five different machine learning methods
with previous studies in which air pollution was useful in predicting stock market movements [16, 29]. Thus, controlling air pollution levels may help to improve stock market movements. Investors are recommended to prevent themselves from exposure to air pollution and observe the level before making any investment decision.
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Fig. 3 Actual and Predicted Movements of STI
The present findings reflect the importance to raise the public’s awareness of air pollution given its negative impact on human health and stock market movements. Controlling air pollution may assist to reduce or avoid some potential costs to the companies and boost financial performance. In addition, the SDGs goals can be achieved by controlling the air pollution level. Governments are encouraged to organise more campaigns to educate the citizens about the potential costs of air pollution. Likewise, it is highly recommended to implement more environmental policies to maintain the low air pollution level.
5 Conclusion Air pollution is currently a serious issue that needs to be addressed globally. Unlike previous studies, this study applied the machine learning approach to analyse stock market data. The machine learning approach was able to cope with the complex
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nature of stock market data. This study aimed to forecast the STI by including the closing prices of Singapore’s STI, PM2.5 and PM10 as the input data. First, five different periods of moving average were calculated for the closing prices of STI, PM2.5 and PM10. Resultantly, the previous day (or 1 day average) tends to produce the lowest MAE, MAPE, MSE, and RMSE. Meanwhile, this study also found that XGBoost was the best model for predicting STI movements in comparison to the other four models. These findings have several practical implications. First, investors planning to predict STI movements should use the XGBoost algorithms. Second, any future study attempting to investigate the impact of air pollution on the stock market is recommended to use the previous day’s PM2.5 and PM10 for prediction purposes. The present findings also underscore the importance of monitoring air pollution on the previous day given its predictive power for stock market movements. Third, this study also provides some insights to policymakers on the potential impact of air pollution on the stock market. Such insight can assist policymakers in formulating effective policies to reduce air pollution levels, thereby promoting a healthier and more sustainable investment environment for investors. Nevertheless, the limitations of this study are well-acknowledged. Studies may consider other potential factors, such as political factors and investment sentiments. This study is limited to a single context: Singapore Stock Index, STI. Thus, the generalisation of the results may improve by including samples from other markets. Acknowledgements This research was supported by Taylor’s University through the Centre for Industrial Revolution and Innovation (CIRI) Seed Funding (CIRI-SEED/1/2022/SOAF/002).
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27. Wu, Q., Hao, Y., Lu, J.: Air pollution, stock returns, and trading activities in China. Pacific Basin Finance Journal 51, 342–365 (2018). 28. Xu, M., Wang, Y., Tu, Y.: Uncovering the invisible effect of air pollution on stock returns: a moderation and mediation analysis. Finance Research Letters 39, 10166 (2021). 29. Zhang, Q., Zheng, Y., Tong, D., Hao, J.: Drivers of improved PM2.5 air quality in China from 2013 to 2017. PNAS 116(49), 24463–24469 (2019).
Development of a Waqf Capital Reporting Index (WCRI) for Online Waqf Disclosure Amira Jamil , Tahirah Abdullah , Siti Afiqah Zainuddin , Siti Salwani Abdullah , Siti Rohana Mohamad , and Nur Farahiah Azmi
Abstract The reporting system of Malaysian waqf institutions requires substantial attention and revision to keep up with technological advancement and shifting trends in global accounting and reporting practices. Traditional waqf reporting has shown to be less effective in dealing with recurring issues such as unproductive asset management and mismanagement. In general, one of the significant challenges waqf institutions faces is inadequate transparency in reporting. Following the integrated reporting framework, this study proposed the development of a waqf capital reporting index for the online disclosure of Malaysian waqf institutions. The study examined the standards and literature on financial and non-financial capital disclosure of information to develop the Waqf Capital Reporting Index (WCRI). The final seven categories and 36 items under consideration were developed into an instrument, the proposed WCRI, for assessing waqf institutions’ commitment to advancing the agenda of multicapital and integrated reporting. The index passed the validity, reliability, and expert-driven pre-test procedures. This study contributed to developing WCRI that may be ideal for waqf institutions to adopt in developing countries. It addressed the concerns of best practices for waqf institutions regarding accountability and online transparency. The study introduced the first multicapital reporting index designed for Malaysian waqf institutions. The index might serve as a model for adoption by waqf institutions in other developed and developing countries. Keywords Online disclosure · Reporting · Waqf · Integrated Reporting · Non-Profit Organisation
A. Jamil (B) · T. Abdullah · S. A. Zainuddin · S. S. Abdullah · S. R. Mohamad · N. F. Azmi Universiti Malaysia Kelantan, 16100 Kota Bharu, Kelantan, Malaysia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_15
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1 Introduction Waqf is an Islamic means to support the well-being of individuals and institutions based on the principles that emphasise fair distribution of wealth and zero-interestbased social financing through voluntary contribution. The system of waqf has consistently contributed significantly to the advancement of society from the first centuries of Islam. Muslims employ zakat and waqf to alleviate poverty and enhance social welfare. The Muslim community expects the waqf system to take on more responsibilities to solve contemporary socio-economic problems, especially in this post-COVID-19 era [3]. However, despite having accumulated waqf assets and capital worth billions in value, the potential of waqf is yet underutilised, particularly in terms of contributing to the welfare and progress of Muslim communities in a significant manner. With such a substantial value of assets and capital, waqf entities should be able to play important roles in strengthening the Islamic financial system and communities’ improvements. The lack of performance is generally attributable to ongoing operational challenges faced by most of the waqf institutions, which include issues of accountability including unproductive waqf asset management, mismanagement of waqf property, lack of standardisation and regulations, and many others [2, 18]. In this regard, improving the online transparency and corporate governance structure of the waqf institutions has become one of the most researched subjects to address low accountability concerns. To run a social welfare organisation, it is necessary to develop the confidence of all the concerned stakeholders. One of the most common methods is disseminating waqf information through publicly accessible platforms such as websites and social media [7]. Therefore, the present study attempted to develop a Waqf Capital Reporting Index (WCRI) for the online disclosure of financial and non-financial information. The reporting index provides an acceptable webreporting instrument that the users and regulators can use to assess and evaluate the adequacy of reporting practices and transparency of waqf institutions. Following the introduction, the remainder of the paper is organised in the following order. The second section provides an overview of the current reporting practices by waqf institutions and the needs of WCRI. The third section presents the proposed disclosure index’s development, and the last section concludes the paper.
2 Literature Review 2.1 Overview of Waqf Reporting in Malaysia At present, there are no specific comprehensive standards for waqf reporting. Thus far, the Accountant General’s Department of Malaysia (AGD) has issued Islamic Accounting Standards for Baitulmal, Zakat and Wakaf (PPIBZW) on 23 February 2021 [24]. This standard will be enforced on the institutions that govern Islamic
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resources including waqf on 1 January 2025. As for the current practice, the reporting framework for waqf is determined by the waqf institutions’ legal form and administrative structure. In Malaysia, waqf is predominantly capital administered by the State Islamic Religious Councils (SIRCs), a government agency authorised to administer waqf properties based on the state’s legislation and procedure. Most SIRCs used the Malaysian Private Entity Reporting Standards (MPERS) as their main guideline. Some of the SIRCs reported following the state directives on financial reporting, the Malaysian Department of Awqaf, Zakat and Hajj (JAWHAR) manual on waqf accounting and management called Manual Pengurusan Perakaunan Wakaf (MPPW), and the Malaysian Financial Reporting Standard (MFRS). To accommodate the rapid growth in waqf today, the SIRCs have appointed incorporated companies, registered non-profit organisations, and universities to independently manage waqf properties (Abu Talib et al., 2020). Waqf administered by the universities is bound to adopt the Malaysian Public Sector Accounting Standards (MPSAS) under the Universities and University Colleges Act 1971. In comparison, waqf corporation shall prepare and lodge financial statements following the Securities Commission or the Registrar of Companies, which must comply with MFRS. Waqf in the form of non-profit organisations shall comply with the requirements set by the Registrar of Societies. The absence of specific accounting and reporting framework for waqf institutions and the optional adoption of existing guidelines has resulted in the diversification of waqf accounting and reporting practice among the waqf institutions. Thus, variations in reporting practices may compromise the quality and comparability of information provided by the waqf institutions. Waqf institutions currently prepare their annual report based on the for-profit conventional financial reporting method (Raja Adnan et al., 2021), which is inadequate because the framework does not conform to the objectives of Islamic accounting [16]. In Islam, proper disclosures of information are vital to eliminate disputes and ensure fairness. The waqf institutions must comprehensively disclose the information to the stakeholders to provide evidence to the donors that they have managed the waqf capital efficiently and effectively. This is one of the ways for waqf institutions to discharge their accountability.
2.2 Online Disclosure and Public Accountability Information disclosure can enhance the role of corporate governance practices in satisfying stakeholders’ demands [13]. Accountability to stakeholders, particularly donors, is critical for all non-profit organisations (NPOs), such as waqf institutions, that seek to build legitimacy and attract charitable contributions by demonstrating their capacity to act in the best interests of the community [19]. Given that NPOs interact with a diverse set of stakeholders with differing information demands [23], the waqf institutions need to develop good corporate governance practices together with online information disclosure to mitigate the possible tensions between donors, managers, and public. The development of good corporate governance practice alone
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is insufficient to obtain a good financial position as there is a need to reduce the information asymmetry between the management and the stakeholders. Additionally, organisations must consider the communication channel used to disseminate the information. The expansion of Internet-based technologies has enabled organisations to directly reach a wide range of stakeholders timely and to give adequate information disclosure at a minimal cost. Several studies, mainly focusing on NPOs, have highlighted the impact of online appearance, communication, and disclosure in encouraging charitable contributions [10, 12, 22]. The web could become the public face of NPOs and a tool to manage inclusive and intensive stakeholders’ relationships, which is crucial for NPOs’ survival [19]. Nevertheless, to date, the number of studies focusing on the online disclosures of waqf institutions is somewhat limited, especially in the Malaysian context, due to the inadequate amount of information available and accessible to the public. According to Hairul-Suhaimi et al. [4], the websites of most of the waqf institutions in Malaysia were outdated and very limited. In addition, most of the information was not publicly available.
2.3 Need for a Waqf Capital Reporting Index (WCRI) Based on Islamic accountability, the waqf institution should be accountable to society as an Islamic organisation established to serve the public interest. The community has the right to know the effects of the organisation’s multicapital operation. Therefore, preparing transparent, comprehensive, and accessible disclosure online by the waqf institution is crucial to fulfilling this accountability and must not be limited to only financial information disclosure [1]. Thus far, AGD has issued PPIBZW on 23 February 2021 [24]. This standard is drafted for institutions that govern and manage Islamic resources including waqf and focuses on the reporting of financial information. Focusing on financial information disclosure alone is inappropriate for achieving Islamic socio-economic objectives for several reasons. First, the financial statements and information disclosure are mainly governed by a rule-based system and adopt an annual or short-term perspective [16]. Besides, conventional financial reporting is based on the perspective of capitalism and individualism [21]. It emphasises the profit maximisation goal and is motivated by the financial and capital considerations that focus only on the capital providers’ demands for information. The practice ignores the human, social, and environmental aspects, thus ignoring the primary principle of disclosure in Islam, which is to fulfil one’s accountability to Allah. The report preparation that stresses annual profits is also inappropriate as users of waqf reporting are more concerned about financial stability and performance and capital distribution to the beneficiaries rather than the amount of profit generated. Other than that, conventional financial reporting only focuses on disclosing financial information that is mainly retrospective and based on the institutions’ current and past performances. The current conventional financial reporting also fails to report on other crucial capital owned and utilised by the institutions other than financial
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capital. It focuses solely on financial information that cannot portray a comprehensive, realistic picture of the institutions’ performance, thus creating an information gap between the management and the stakeholders. Organisations operate using financial capital and other capital such as human, social, and environmental capital. Comprehensive disclosures of financial and non-financial information are necessary to convince donors and stakeholders of the need for continued support for the objectives [7]. Creating value for the socio-economic benefit of both present and future generations requires an integrated approach to managing, accounting, and reporting all the capital involved in waqf operations. Growing attention has been paid to capital reporting, and one of the latest initiatives is the International Integrated Reporting Framework (IR Framework) introduced by the International Integrated Reporting Council (IIRC). Capital is an accumulation of values that either increases or decreases because of institutional activities [6]. The capital possesses the potential to create values as well as serve as a source of competitive advantage for the institutions. Following the commercialisation of the concept of capital by the IR Framework, various stakeholders of for-profit and non-profit institutions have increasingly demanded information concerning capital in recent years [11]. This study focused on reporting four capitals consistent with the Maqasid Al-Shariah concept and relevant for waqf institutions, which will be further discussed in Sect. 3.2.
3 Development of the Waqf Capital Reporting Index The development of the index was initiated through a three-step phase, as illustrated in Fig. 1.
Fig. 1 WCRI development stages
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3.1 Step 1: Identification of Disclosure Items and Classifying the Items Into Sub-capital Initially, to identify the relevant disclosure items to be included in the WCRI, the study referred to the current reporting references by SIRCs, including the best practice of SIRCs, MPERS, MFRS, MPSAS, and MPPW. The international reporting framework and protocols were also reviewed, such as the exposure draft of Financial Reporting by Waqf Institutions as prepared by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), the International Integrated Reporting Framework, and the Sustainability Framework by the Global Reporting Initiative. The current research also reviewed prior studies on the waqf institutions, NPOs, non-governmental organisations (NGOs), charities, and local authorities to select the potential disclosure items to be included in the index (such as [5, 7, 8, 15, 17]). Based on the analysis of available reporting guidelines, standards, frameworks, drafts, and prior literature, some items were identified as relevant as parts of the waqf capital disclosure. This step was crucial to get an idea and to better understand the items as constructed in the prior reporting index studies. This step extracted a total of 45 items.
3.2 Step 2: Classification of Capital After the identification process, the initial 45 reporting items of information were classified and structured according to their categories. To date, waqf institutions tend to provide more financial information rather than information on non-financial capital [9]. An integrated strategy for managing, accounting, and reporting all the capital engaged in waqf activities is necessary to create value for the socioeconomic benefit of both the current and future generations. Although the concept of capital for integrated reporting is primarily designed for the private sector, it applies to waqf institutions [8]. With Maqasid Al-Shariah as its goals and objectives, the activities of waqf operations involve the utilisation of waqf capital, human capital, social capital, and environmental capital. Thus, the disclosure of waqf institutions should include the information of these four capitals to provide a comprehensive picture of the value creation process towards the achievement of Maqasid Al-Shariah. Table 1 illustrates the waqf capital reporting model for the waqf institutions.
3.3 Step 3: Expert-Driven Assessment of the Validity An expert-driven pre-test was conducted to assess the reliability and validity of the reporting items included in the index. A content validation form was prepared to
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Table 1 Validity of waqf capital reporting index Maqasid Al-Shariah
Capital
Description
Protection of religion
Human
People’s . capability and potential . motivation and commitment . innovation and learning
Protection of property
Waqf assets
Physical objects including . building . equipment . infrastructure (such as roads and bridges) Collection and distribution of waqf assets
Protection of future generations
Social
The relationship within institutions and between communities, stakeholders, and other networks includes . shared norms and common values . stakeholder relationship . institution’s legitimacy
Environmental
All environmental resources include air, water, land, mineral, and forests . Biodiversity and eco-system
Protection of life Protection of intellect
ensure the expert review panels had clarity of expectation and understanding of the task. The rating scale was provided so that the experts can give independent judgement on the relevance of each item. The rating criteria for measuring the “relevancy” (how important are the items to the disclosure categories) were 1 = item is not relevant, 2 = item is somewhat relevant, 3 = item is quite relevant, and 4 = item is very relevant. The experts were also encouraged to provide written comments to improve item clarity in the targeted reporting categories. All comments were considered to refine the items. The content validation form was sent to the panel of experts individually via e-mails in August 2019. These panel experts were professionals with research experience in the waqf and non-profit institution field. At the end of September 2019, five experts (N = 5) returned the form and rated the content validity of each item in the questionnaire. The experts were (1) Director of International Research Centre of Islamic Economics and Finance, Kolej Universiti Islam Antarabangsa Selangor, (2) Associate Professor of Modern College of Business and Science, Oman, (3) Associate Professor, (4) Senior Lecturer of Universiti Teknologi MARA, Puncak Alam Campus, and (5) Associate Professor of International Islamic University Malaysia. The involvement of five experts for content validation was acceptable as the minimum number was 2 and did not exceed 10 [20]. The content validity index (CVI) was computed by dividing the number of experts giving either a 3 or 4 by the total number of experts [25]. A rating of either 3 or 4 meant that the item was relevant or clear. Various prepositions of I-CVI value guidelines were established by the previous studies such as Lynn [14], who proposed that I-CVI
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should be more than 0.78. In contrast, Polit et al. [20] suggested that the I-CVI value should be more than 1 to be retained. However, Zamanzadeh et al. [25] indicated that I-CVI higher than 0.79 was considered appropriate. Meanwhile, the item with I-CVI value between 0.7 and 0.79 needed revision, and the item with I-CVI less than 0.7 should be eliminated. This study adopted the I-CVI value proposed by Zamanzadeh et al. [25] and used Microsoft Excel to compute the I-CVI of each item. The disclosure index with the initial reporting items of 45 was divided into seven categories. The first four categories represented waqf capital, which was collection, asset and property, investment and development, as well as distribution. The next category was human capital, social capital, and environmental capital. Based on the rating scale given by the expert review panels, as illustrated in Table 2, nine items were deleted from the index because the I-CVI scores for each item were less than 0.7, as per the suggestion by Zamanzadeh et al. [25]. Some items were restructured and rephrased based on the feedback and suggestions received. Finally, at the end of the content validation process, the Waqf Capital Reporting Index (WCRI) had 36 items.
4 Conclusion This paper provides a recommendation for online disclosure practices through the development of the WCRI for waqf institutions. The combination of the capital concept as introduced by the Integrated Reporting (IR) Framework and Maqasid AlShariah suggested the disclosure of comprehensive and interconnected information about the capitals with the performance of the organisations to explain value creation. It did not only focus on reporting financial information but also on other non-financial information to increase its usefulness to a wide range of stakeholders, particularly donors and regulatory authorities. The Islamic approach for waqf capital reporting reverses the profit-maximisation goals of conventional reporting to achieve socioeconomic objectives parallel to those of waqf institutions. This is consistent with the growing demand for more integrated information on both financial and non-financial performances to support decision-making. Hence, the development of WCRI is very timely for the waqf institutions to assist in transparency and accountability through a holistic disclosure for the stakeholders. It serves as an introduction to the integrated waqf reporting system [16] that could provide support for improving financial growth, waqf management efficiency, stakeholders’ satisfaction, quality improvement, and trustworthiness, and it needs further research and studies. Further research may use the WCRI to measure the extent of online information disclosure of waqf institutions and to extend the index to measure the quality of disclosure. Besides, future research may examine the determinants of information disclosure.
1
1
1
1
1
Methods of waqf collection such as through collection centres, online payment, bank transfers
Amount of waqf collection
Comparison of collection amount with prior years
1
Management, maintenance, renovation, and other cost associated with waqf assets and property
1
1 1
1
Value (historical and current)
Functionality or current condition 1
1
1
A detailed list of waqf assets and property
Waqf Capital (Asset and Property)
0
Classification of waqf collection 1 based on types such as waqf Khas or waqf general
1
1
2
Expert agreement
1
1
Waqf collection strategy and future planning
Waqf Capital (Collection)
Disclosure Item
Table 2 Waqf capital reporting model
1
1
1
1
1
1
1
1
1
3
1
1
1
1
1
1
1
0
1
4
1
1
1
1
1
1
1
0
1
5
1
1
1
1
1
1
1
0.4
1
I-CVI
Verdict
✓
✓
✓
✓
✓
✓
✓
Accepted ✓
Revised
✓
(continued)
Deleted
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2 1
1
1
Expert agreement
1
1
1
1
Returns generated from the waqf investment and development
Criteria to assess beneficiaries of waqf capital
A detailed description of beneficiaries
Amount of waqf capital distributed
Waqf Capital (Distribution)
1
Investment and development progress
1
1
1
1
1
1
1
1
1
Current value
1
1
The total amount of waqf investment and development made
Classification
1
1
Policies of investment and development of waqf capital
Waqf Capital (Investment and Development)
Action undertaken to prevent intrusion of waqf asset and property
Disclosure Item
Table 2 (continued)
1
1
1
1
1
1
1
1
1
1
3
1
1
1
1
1
0
1
1
1
1
4
1
0
0
1
1
0
0
1
1
1
5
1
0.8
0.8
1
1
0.6
0.8
1
1
1
I-CVI
✓
✓
✓
✓
Accepted
Verdict
✓
✓
✓
✓
✓
Revised
✓
(continued)
Deleted
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1
1
1
1 1
1
1
Benefits or impact of waqf capital 1 on the beneficiaries
1
0
0
Rate of employees’ turnover
Diversity and equal employment opportunity policies for all applicants and employees 1 1 1 1
1
1
1
1
0
Remuneration scheme
Employees’ benefits and assistance
Training and development programs for employees
Level of employees’ satisfaction and motivation
Occupational health and safety
Employees’ profiles such as number of employees, classification by gender or position
Human Capital
Channel of waqf distribution to the beneficiaries such as through activities or direct cash
2
Expert agreement
1
Disclosure Item
Table 2 (continued)
1
1
1
1
1
1
1
1
1
1
3
1
1
1
1
1
1
1
1
1
1
4
0
1
1
0
0
0
0
1
1
1
5
0.6
1
1
0.8
0.8
0.6
0.6
1
1
1
I-CVI
✓
✓
✓
✓
✓
✓
✓
Accepted
Verdict Revised
✓
✓
✓
(continued)
Deleted
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1
0
1
0
0
Environmental policies or concerns for the environmental sustainability
Environmental management, systems, and audit
Environmental Capital
Award and recognition
1
1
1
1 1
1
1
Waqf awareness
Involvement in local community activities
Public sponsorship
1 1
1
1
Stakeholder networks
Collaboration, alliances, or partnerships
Relations with the media
1
0
Stakeholders’ complaint
1
1
1
1
1
1
1
Donors’ loyalty 1
2
1
Expert agreement
Stakeholders’ satisfaction
Social Capital
Career opportunities
Disclosure Item
Table 2 (continued)
1
1
1
1
1
1
1
1
1
1
1
1
1
3
1
1
1
1
1
1
1
1
1
1
1
1
1
4
1
0
1
1
1
1
0
1
1
0
1
0
0
5
0.8
0.6
1
1
1
1
0.8
1
1
0.6
1
0.8
0.6
I-CVI
✔
✔
✔
✔
✓
✓
✓
✓
✓
✓
Accepted
Verdict Revised
✔
✓
✓
(continued)
Deleted
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1
Initiatives to reduce the usage of 0 resources (e.g., paper, energy) and any recycling initiatives
Final index disclosure items
1
0
Initiatives to mitigate the environmental impacts
1
2
0
1
Expert agreement
Pollution from activities and operations
Disclosure Item
Table 2 (continued)
1
1
1
3
1
1
1
4
1
1
0
5
0.8
0.8
0.6
I-CVI
36
✔
✔
Accepted
Verdict
6
Revised
9
✔
Deleted
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Acknowledgements A special appreciation to the authors from University Malaysia Kelantan for their cooperation and dedication in publishing this article. We are also grateful for the financial support from Universiti Malaysia Kelantan under the UMK Fundamental (UMK-FUND) Grant Scheme: R/FUND/A0100/01049A/001/2022/01105.
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Successful Factors of Online Business in Fashion Industry Noraishah Kamarolzaman , Hairiani Abdul Hamid , Rohani Jangga , and Zurina Omar
Abstract This research emphasises the determinant factor of a successful online business in fashion industry. The purpose of this study is to establish the relationship between successful online business and all its independent variables, which are online trust, website quality and content, and brand awareness. The findings were established and collected through questionnaires that were distributed through online platform, such as WhatsApp, Facebook, and other social media. The respondents of the questionnaire were selected through convenience sampling, and the questionnaires were distributed to 200 respondents. This study used quantitative research method, and all the data analysis was run by using SPSS. The findings indicate that all of the three independent variables, online trust, website quality and content, and brand awareness are significant towards the dependent variables. Moreover, online trust data showed to be the biggest variable, which contributes to the major determinants factor to a successful online business. Keywords Online business · Fashion industry
1 Introduction The incredible technological evolution has made major changes to the structure of the business. In particular, the Internet has become an important alternative method of distribution of goods and services [13]. Online business, also known as e-business, is defined as a business management practice with the use of the Internet and digital technologies. It is an online activity that brings employees, partners, vendors, and customers together while promoting growth as its primary goal [9]. Online business offers companies with many ways to enter audiences that had never been reachable before the Internet era. The online business will, therefore, build substantial value and produce incremental revenue through the virtual marketplace. N. Kamarolzaman (B) · H. A. Hamid · R. Jangga · Z. Omar Universiti Teknologi MARA, Cawangan Johor Kampus Segamat, 85009 Segamat, Johor, Malaysia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_16
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Despite the fact that the online business has previously been thoroughly investigated, there is still a substantial development potential. However, there is no promise that companies will be successful in marketing their products and services over the Internet. Many companies have now realised that it may seem easy to set up computer networks within the organisation and develop a website, but it is actually much harder to develop a profitable online customer order business. This paper is broken up into several topics, including the objectives of the study, literature review, research findings, and conclusion.
2 Objectives of the Study This study focuses on one of the boutiques in Malaysia that sell Muslimah designer clothing. The sales come from walk-in customers and through online. However, the sales through online are less than that by walk-in customers. The success of an online business depends on every industry. Different industries will have different success factors for online business. However, the development and effective implementation of online business are very challenging issues. Studies also indicated that significant attention must be given to topics such as policy formulation and collaboration with stakeholders participating in the electronic market cycle [11, 15]. Therefore, the objectives of the study are: 1. to identify factors that determine the successful of online business in fashion industry; and 2. to recommend strategies to improve the company online business sales in fashion industry.
3 Literature Review 3.1 Successful Online Business According to [16], online business introduces new challenges that include a multidisciplinary environment which must be in balance, as there are complementary factors that must be understood that integrated from each area as a prerequisite for success. Just like a traditional physical store, it is not only the sales dimension that is inferred in online business but also a whole set of standards that must be adequately secured and regulated. The website is a medium with its own features, and any aspect must be thoroughly thought out so that the final product is as expected. In addition, it has been observed from previous research that the key problems online retailers facing today are the implementation of superior customer care support
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[1], the reduction of perceived risks and the growth of consumer interest in online shopping, the implementation of good website architecture and the reduction of returns [3]. To overcome this situation, online fashion retailers need to understand the critical areas that they need to focus on to implement a successful business plan.
3.2 Online Trust Trust provides strong contribution to the success of online transactions. Online trust needs to be established when personal data and personal financial information are exchanged during online ordering. Online trust aims at understanding the threats or benefits of online transactions [18]. To demonstrate consumer trust, contentment, and buy intent, business owners should be aware of the requirements to secure online transactions while also providing consumers with privacy policies [14]. Ling et al. [12] stated that multiple studies have found that if higher online trust from customers will indicate in higher online customer purchase intentions. Once the company gain higher result of customer online purchase intention, it will lead to business sales which directly support the determinants factor to a successful online business.
3.3 Website Quality and Content The design of the website needs to contain all aspects of user experience on the website, such as searching for information, order processing, personalisation, and product selection [4]. According to [8], the website’s architecture should also demonstrate how well it can direct people and how easy it is to use. Along with that, [10] agreed that the website layout should, therefore, be accessible and presentable, and the operating system should be visually attractive to attract customer to buy and support the online business of the company. Furthermore, [7] stated that graphic design is a significant feature of website design, especially for the fashion retail website, as fashion is a commodity that requires sensory assessment and a range of visual presentation techniques to target online customers. On the other hand, the quality of the product was considered to evaluate the quality of the website and to assess the variables associated with its performance. The performance of the web can be determined on the support of consumer satisfaction when browsing. Past studies have highlighted the significant effect of service quality on consumer satisfaction, resulting in their purchasing decision [2]. The success of online business can be evaluated towards the customer satisfaction attributes. Moreover, the online response time indicates the effectiveness of the website management programme. With a 24-hour availability, past researchers reported that the online business website is open all day and there is no off-hour. The total time required by the webpage to refresh or adjust and switch from various search results is the speed
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of page loading. All these variables are also measured as the quality and content of the website.
3.4 Brand Awareness Consumers used trusted corporate and brand names in internet transactions product details during an online shopping [20]. In addition, [5] reported that there is a significant impact of brand orientation on the customer’s intent for an online purchase. If the purchase intention of the consumer has been established, the brand should also lean towards the determining factor to a successful online business. The principle of internet commerce does not truly change; to complete an online purchase, consumers must first be motivated. In the online business pattern, the idea does not really shift; to shop online, consumers need a drive to finalise their order. It is not enough to believe that a brand is just a nice phrase or a sleek logo, that all contact with the environment needs to be well thought out, and that customer care and consideration need to be observable to create a meaningful relationship with them. As [6] mentioned it, this involves two aspects, one behavioural and the other emotional and mental. The first involves repeated purchases, but the second is the most important because it embraces the preferences of the brand.
4 Research Framework During this study, online trust, website content, and quality and brand awareness served as the three main independent variables as an input in determining its factors towards dependent. While the majority of discussions in the literature review show that the aforementioned independent variables have frequently been used as presumptions to prove their relationship, the dependent variable will instead be a successful online business. This study, therefore, proposes the following framework, as illustrated below (Fig. 1).
5 Research Methodology and Findings The researcher used quantitative method by using questionnaires. In this study, the researcher had distributed the questionnaires through Google Forms and other online platforms, such as the social media and WhatsApp. A total of 200 questionnaires were distributed to respondents who have had experience on using online website to buy clothing or any fashion-related apparel. The data were analysed using Statistical Package for Social Sciences (SPSS).
Successful Factors of Online Business in Fashion Industry
Independent variables
181
Dependent Variables
Online Trust
Successful Online Business
Website Quality and Content
Brand Awareness Fig. 1 Research framework on the determinants factors of successful online business in fashion industry (Adapted from [17, 19])
5.1 Findings In this section, the researcher used several types of analyses, such as descriptive analysis, regression analysis, and Pearson’s correlation analysis. Table 1 shows that the value of mean for successful online business is 3.0790, the value of mean for online trust is 3.1840, while the mean value for website quality and content is 2.8400, and lastly, the value of mean for brand awareness is 2.9760. From the abovementioned table, it shows that most of the respondents agreed that all the variables of a successful online business, such as online trust, website quality, and content and brand awareness, are important and relatable to the dependent variable of a successful online business. The above table also shows that the highest mean value is derived from the online trust variable at as high as 3.1840, while the lowest mean value came from website quality and content at 2.8400. Table 2 shows that online trust has that particular level of correlation with a successful online business, which is represented by n = 0.840. The above table also shows that website quality, content and brand awareness, and customer preference have a moderate positive linear relationship with the successful online business that is represented at values as high as n = 0.644 and n = 0.665, respectively. Table 1 Descriptive statistics N
Minimum
Maximum
Mean
Standard deviation
Successful online business
200
1.80
4.00
3.0790
0.45186
Online trust
200
2.00
4.00
3.1840
0.52948
Website quality and content
200
2.00
3.60
2.8400
0.33789
Brand awareness
200
1.40
4.00
2.9760
0.53896
Valid N (listwise)
200
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Table 2 Pearson’s correlation analysis
Successful online business
Pearson correlation
Successful online business
Online trust
Website quality and content
Brand awareness
1
0.840**
0.644**
0.665**
0.000
0.000
0.000
200
200
200
1
0.580**
0.580**
0.000
0.000
Sig. (two-tailed) Online trust
Website quality and content
N
200
Pearson correlation
0.840**
Sig. (two-tailed)
0.000
N
200
200
200
200
Pearson correlation
0.644**
0.580**
1
0.500**
Sig. (two-tailed)
0.000
0.000
N
200
200
200
200
0.665**
0.580**
0.500**
1
Sig. (two-tailed)
0.000
0.000
0.000
N
200
200
200
Brand awareness Pearson correlation
0.000
200
Based on the result above, it shows that all the independent variables have a positive relationship with the dependent variable. The result shows that the strongest determinant factor to a successful online business would be online trust, with a correlation factor of n = 0.840, while the weakest determinant factor to a successful online business was website quality and content and brand awareness with a correlation factor of n = 0.644. According to Table 3, the value of R2 is 0.770 (77.0%). This means that only 77.0% of the changes in the dependent variable can be explained by all independent variables chosen. The remaining 23% cannot be explained. In other words, there are other factors which are important in explaining the determinant factors of a successful online business in fashion industry in which they have not been considered in this study. Table 3 Regression analysis Model
R
R-squared
Adjusted R-squared
Standard Error of the Estimate
1
0.879a
0.773
0.770
0.21692
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Table 4 Result of hypotheses Result of hypothesis
Findings
H1: There is a significant relationship between successful online business and online trust
All hypotheses were accepted (Because p-value is less than 0.05)
H1: There is a significant relationship between successful online business, and website quality and content H1: There is a significant relationship between successful online business and brand awareness
Based on Table 4, it shows that all the independent variables have significant relationship with dependent variable. Online trust, web quality and content, and brand awareness are the factors that determine the success of an online business.
6 Conclusion From the findings, it can be concluded that all the independent variables, such as online trust, website quality and content, and brand awareness, are important factors of a successful online business. It is suggested that online trust can affect and attract more consumers because most of the respondents are workpeople. This means that online trust is exposed via an online business through feedback that has been shared on popular applications, such as Instagram, Facebook, and Twitter. It will, therefore, enhance the success of an online business and increase the sales of the company. Second, by believing in the customer, they will feel safe using and making purchases from online businesses. Customers may buy the fashion product because of the website attractiveness, quality, and the content provided by the company, whether it is size measurement, choices of colour, or the catalogue picture quality. In other words, if online retailers can design their store layout using well-organised contents, the purchasing power of their customers will increase, leading to a successful online business. As for the quality, it includes website load page and payment process, among others, all of which can aid customers in making transactions via the website. To gain some awareness of the brand, the company can also hire celebrities and social influencers to promote the product. Moreover, most customers tend to only buy known brands online or any brands that they have previously bought at brickand-mortar shops to ensure the quality of the products.
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References 1. Cao, Y., Ajjan, H., & Hong, P: Post-purchase shipping and customer service experiences in online shopping and their impact on customer satisfaction: An empirical study with comparison. Asia Pacific Journal of Marketing and Logistics (2018). 2. Chen, C. D., & Cheng, C. J.: Understanding consumer intention in online shopping: A respecification and validation of the DeLone and McLean model. Behaviour & Information Technology (2009) 3. Ganguly, B., Dash, S. B., Cyr, D., & Head, M.: The effects of website design on purchase intention in online shopping: The mediating role of trust and the moderating role of culture. International Journal of Electronic Business (2010). 4. Ha, S., & Stoel, L.: Consumer E-shopping acceptance: Antecedents in a technology acceptance model. Journal of Business Research (2009). 5. Jayawardhena, C., Tiu Wright, L., & Dennis, C.: Consumers online: Intentions, orientations and segmentation. International Journal of Retail & Distribution Management (2007). 6. Kassim, N., & Abdullah, N. A.: Customer loyalty in e-Commerce settings: An empirical study. Electronic Markets (2008). 7. Kim, M., & Lennon, S.: The effects of visual and verbal information on attitudes and purchase intentions in internet shopping. Psychology and Marketing (2008). 8. Kim, S., & Stoel, L.: Apparel retailers: Website quality dimensions and satisfaction. Journal of Retailing and Consumer Services (2004). 9. Lai, J., Kan, C., & Ulhas, K. R.: Impacts of employee participation and trust on E-business readiness, benefits, and satisfaction. Information Systems and e-Business Management (2012). 10. Lee, G., & Lin, H.: Customer perceptions of E-service quality in online shopping. International Journal of Retail & Distribution Management (2005). 11. Lee, S. C., Pak, B. Y., & Lee, H. G.: Business value of B2B electronic commerce: The critical role of inter-firm collaboration. Electronic Commerce Research and Applications (2003). 12. Ling, K. C., Chai, L. T., & Piew, T. H.: The effects of shopping orientations, online trust and prior online purchase experience toward customers’ online purchase intention. International Business Research (2010). 13. Mainetti, L., Paiano, R., Bolchini, D., & Pandurino, A.: Dialogue-based modelling of rich internet applications: The Rich-IDM approach. International Journal of Web Information Systems (2012). 14. Ranganathan, C., & Ganapathy, S.: Key dimensions of business-to-consumer web sites. Information & Management (2002). 15. Sauer, C., & Willcocks, L.: Establishing the business of the future:. European Management Journal (2003). 16. Shahabuddin, S.: Supply chain management and its effect on company’s performance. International Journal of Logistics Systems and Management (2011). 17. Sharma, H., & Aggarwal, A. G.: Finding determinants of e-Commerce success: A PLSSEM approach. Journal of Advances in Management Research (2019). 18. Teo, T., & Liu, J.: Consumer trust in e-Commerce in the United States, Singapore and China. Omega (2007). 19. Thamizhvanan, A., & Xavier, M.: Determinants of customers’ online purchase intention: An empirical study in India. Journal of Indian Business Research (2013). 20. Ward, M. R., & Lee, M. J.: Internet shopping, consumer search and product branding. Journal of Product & Brand Management (2000).
The Mediation Effect of Consumer Behaviour on the Relationship Between COVID-19 and E-Business in Malaysia Nik Noorhazila Nik Mud , Mardhiah Kamaruddin , and Norfazlirda Hairani
Abstract COVID-19 has been a worldwide pandemic that has altered billions of people’s lives worldwide and disturbed consumer buying behaviour. This study aimed to investigate the prevalence of e-business in Malaysia and examine the mediation effects of consumer behaviour on the relationship between COVID-19 and the application of e-business in Malaysia. This study employed the Theory of Planned Behaviour as an underpinning theory to explain consumer behaviour during this pandemic. This study also conducted a cross-sectional study via an internet survey, and 384 respondents participated using the convenience sampling technique. The data were analysed and interpreted using the statistical package SPSS. The findings of this research reveal a partial mediation of consumer behaviour between the relationship between COVID-19 and the application of e-business. The direct effect of variable COVID-19 on the e-business application was still significant after the mediator variable, consumer behaviour was entered. These two factors, which affect the market’s overall demand, are the key determinants of online business. Customers have turned to e-business applications precisely because of this. Keywords COVID-19 · E-Business · Consumer Behaviour · Mediation Effect · E-Commerce
1 Introduction COVID-19 was declared a Public Health Emergency of International Concern by the World Health Organisation on January 30, 2020. Numerous economists have expressed concern that COVID-19 will significantly negatively influence the global economy [1, 2]. The decline in demand for goods and services is mostly to blame for the economic damage [3]. This suggests that either consumers are scarce or have drastically lowered their consumption of products and services [4]. The COVID-19 pandemic has made a tremendous impact across the globe. It is clearly reflected in N. N. N. Mud (B) · M. Kamaruddin · N. Hairani Universiti Malaysia Kelantan, Kota Bharu, Malaysia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_17
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the ongoing lockdowns, the closing down of almost all shops, restaurants, and public transportation, the surge in unemployment, etc., all culminating in severe economic depression [5]. There is also a decline in demand for new automobiles and oil due to the movement control order by the government [6]. Consumers’ buying patterns have shifted globally in less than a month since the pandemic virus breakout [7]. The coronavirus impacts the whole e-commerce world; it has changed the nature of business. According to research, 52% of consumers avoid going to brick-and-mortar shopping areas and crowded areas. Different types of items are affected differently by the coronavirus, which means that certain products are significantly impacted by COVID-19 while others are not as significantly impacted [8]. Since this infection, e-commerce sales are up because fewer people are going out, keeping social distance, and shopping online. E-businesses are struggling and finding it challenging to sell online due to issues with sourcing their business products [8]. Many sectors in the South Asian region deal with China, such as instruments, machinery, and equipment related to communication and technology that will affect its neighbouring countries’ businesses [9]. Any disruptions in these sectors will affect other countries’ businesses. Similarly, the Malaysian market depends on China’s products, which will highly impact Malaysia’s economy. Moreover, the lockdown has also obstructed the import and export facilities in the country. Global trends are significantly altered by the coronavirus. In every industry, change has happened quickly. It has altered consumer behaviour, the nature of commerce and trading, and even the manner of life. Therefore, this study aims to determine e-business applications due to COVID-19 and investigate the direct and indirect (or mediator) relationships between COVID-19 and e-business applications through consumer behaviour.
2 Literature Review 2.1 E-Commerce Trends and Practices in Malaysia E-commerce is an online business or marketing activity that involves the purchase or sale of goods over the Internet. It also refers to any internet transaction (goods and services) [10]. In Malaysia, e-commerce is not a recent development. In actuality, it dates back to the early 1990s, when the Internet first appeared. With the debut of Lazada and Zalora, two sizable online shopping platforms, Malaysia’s e-commerce industry took off in 2012. E-commerce in Malaysia only began to take off a decade ago and has grown steadily and strongly. The development of technology followed closely behind the growth of e-commerce. Early in the new millennium, there was a rise in the availability of internet connections and computers in homes and workplaces, speeding up Malaysia’s e-commerce expansion. Additionally, there was a significant influx of new players selling appealing goods on internet marketplaces (e-commerce, 2020).
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Fig. 1 The history of E-commerce in Malaysia (Source www.sterrific.com.my)
There were fresh sets of e-commerce infrastructure for several platforms in the late 2000s. These innovations were favourably received and quickly rose to the top of the list of online markets used worldwide. Figure 1 shows the history of e-commerce in Malaysia. For the first time ever, global B2C e-commerce sales crossed US$1 trillion at the end of 2014, and every continent experienced double-digit growth. The COVID19 pandemic was also a blessing in disguise for Malaysia’s e-commerce market in 2020, contributing up to 37% growth [11]. Compared to other Southeast Asian nations, Malaysia’s e-commerce was one of the ones that was expanding the fastest, particularly in the years before the rise of the Internet [12, 13]. Since the introduction of eBay in Malaysia in 2004 [14–17], other online marketplaces such as Shoppe, Lazada, PGmall, and others have emerged. Malaysia’s e-commerce market is reportedly worth US$4.3 billion as of right now. Malaysia’s e-commerce has developed so much during 2020 via 11.11 sales that this country came in fourth place globally for online purchases. Numerous causes have contributed to this rise. The most obvious is the convenience of online shopping. Customers have the chance to compare prices, which increases their financial value. By 2024, the Compound Annual Growth Rate (CAGR) predicts that this will have doubled to $8.1 billion [16, 18, 19]. Malaysia has seen the emergence of numerous e-commerce trends. One of these is a rise in the diversity of goods and services on sale. These trends can be seen in Malaysia’s ten biggest e-commerce sites, as shown in Fig. 2. Malaysian e-commerce is concentrating on modernising its e-commerce infrastructure to conform to more established online business models, including product availability, payments, delivery, and regulatory requirements [13, 16, 18, 19]. The COVID-19 pandemic has also accelerated Malaysia’s e-commerce growth as more people are switching from conventional offline to online shopping [11, 20].
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Fig. 2 The history of E-commerce in Malaysia (Source www.sterrific.com.my)
2.2 COVID-19 and the Application of E-Business Coronavirus is considered one of the most infectious diseases, mainly after infecting humans with severe acute respiratory syndrome. The disease has evolved into a pandemic public health crisis because of its extensive spread in many nations. The pandemic of COVID-19 is accelerating the transition towards digital commerce in a very significant manner. COVID-19 has been identified as an independent variable in this particular study. Since COVID-19, the economy of the country and the entire world has been profoundly impacted [21]. People in the country have increased the restrictions placed on individuals and businesses due to this specific pandemic. The COVID-19 pandemic has forced the nation’s retail outlets to remain closed. This situation has been identified as an unparalleled disruption for many businesses. When a number of major cities declared themselves to be self-isolated, lockdowns and subsequent social distancing have been directed towards the restriction of the activities of the user. Malaysians’ daily lives have become increasingly integrated with e-commerce since the COVID-19 outbreak. The epidemic has significantly altered how daily life is lived. More people in Malaysia avoid congested places due to the different movement control orders. This includes typical brick-and-mortar stores and shopping centres. The migration of consumers to online shopping platforms is a big trend. Several studies have discussed the impact of COVID-19 on e-businesses. A study by [22] found that retail sales of e-business show that COVID-19 has a significant effect on e-business because the sales are expected to increase by 2023. The result is similar to a study [24]. This study’s data analysis illustrates the positive impact of COVID-19 on e-business in Pakistan and consumer buying behaviour to a greater extent. However, these results contrast with a study by [23] investigating the consequences of the Coronavirus (COVID-19) on e-businesses in Pakistan. This research survey shows that COVID-19 has a negative impact on e-business in Pakistan. Small and medium enterprises (SMEs) and local companies in Pakistan incurred huge losses due to the lockdown and lack of facilities; some small-scale businesses were
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permanently closed due to COVID-19. Due to a lack of government support and awareness, e-business also faces these terrible conditions in Pakistan, and many ebusinesses import products from China. The reason assumed was that COVID-19 harshly affects Pakistani e-businesses.
2.3 Consumer Buying Behaviour Pattern and Application of E-Business The behaviour of the customer is considered the mediator variable. The main reason behind its independence is how the population will respond to the particular COVID19 pandemic [24]. As per the significant impact of this pandemic, customers would take necessary precautions and be more likely to act accordingly. As a result, Malaysian customer behaviour has a significant impact on the demand for e-business activities. The customers’ purchase behaviour would be affected due to the lockouts in the nations since there would be a lack of availability of products and services in the various outlets and stores. The customer should depend mainly on the e-commerce platform to fulfil the necessities required for their survival [25]. According to [26], the closure of countries will influence customer purchasing behaviour due to the lack of availability of products and services in various stores. Customers should rely primarily on e-commerce platforms to meet the essential requirements needed for their survival.
2.4 Conceptual Framework Based on Fig. 3, the pressure brought on by the COVID-19 pandemic severely restricts the e-business industry. An e-business application is chosen as the dependent variable because COVID-19’s expansion and consumers’ behaviour concerning this worldwide issue substantially impacted the demand for a specific online platform increases [27]. These two factors, which affect the market’s overall demand, are the key determinants of online business. Customers have turned to e-business applications precisely because of this.
2.5 Research Hypothesis The hypotheses are prepared, enabling the researcher to meet the research objectives. H1 COVID-19 has a significant effect on consumer behaviour in buying products or services via the application of e-business. H2 COVID-19 has a significant effect on the application of e-business in Malaysia.
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Mediator Consumer Behaviour
Independent Variables COVID – 19
Dependent Variables Application of E-Business
Fig. 3 Conceptual framework of a mediator effect
H3 Consumer buying behaviour has a significant effect on the application of ebusiness in Malaysia. H4 Consumer behaviour mediates the relationship between COVID-19 and ebusiness.
3 Theoretical Background The Theory of Planned Behaviour (TPB) was used to evaluate the impact of the COVID-19 pandemic on consumers’ behavioural intention to purchase products. TPB takes into account more than just attitudes towards specific behaviours. In this study, the concept of TPB is used for measuring the consumers’ behavioural intention to purchase products due to the uncertainty of the COVID-19 pandemic. TPB suggests that there are three basic factors that influence an individual’s intended behaviour, namely: attitude, subject norms, and perceived behavioural control. Attitude towards the behaviour refers to the degree to which a person has a favourable or unfavourable evaluation of a specific behaviour, while the other two of the three TPB pillars, subjective norm and perceived behavioural control, describe changes in consumer behaviour due to a crisis, which impacts the purchase intention or behaviour [27]. Several possibilities were looked at to better comprehend this new purchase behaviour phenomenon. After thoroughly assessing the literature, the best theory to support this study is the Theory of Planned Behaviour (TPB). [30] proposed the theory of planned behaviour, an extension of the theory of reasoned action [28], to understand and predict consumer behaviour. This author states that individual behaviour and intention are determined by her/his specific behaviour. Individual subjective norms and attitudes further determine the intention. According to [29], the theory of planned behaviour mainly focuses on factors that affect the individual’s actual behavioural choices. This theory categorises behavioural intention-influencing factors into three categories: the negative or positive attitude regarding the target behaviour, perceived behaviour control, and subjective norms. An attitude represents a person’s positive or negative evaluation of a relevant behaviour and a person’s salient beliefs regarding the perceived outcomes of that behaviour. According to [30], a person’s perception
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of whether significant referents approve or disapprove of behaviour refers to the subjective norm.
4 Methodology 4.1 Research Design This study aimed to analyse the relationship between the three main study variables— the COVID-19 effect, the application of e-business, and customer behaviour— by developing a model that embodies these three factors. In order to understand consumer purchasing behaviour in Malaysia during the COVID-19 outbreak, this study was designed and conducted through a quantitative method. Descriptive statistics (such as frequency, percentage, and mean) were performed using the Statistical Package for Social Science (SPSS). The reliability of the questionnaires was assessed and found satisfactory.
4.2 Sampling Technique The convenience sampling technique was employed, and 384 respondents were selected as samples. This sample size was obtained using tabulation by [30], with maximisation of the 384 sample size and 212,257 consumer spending population in Malaysia (Statistics Department of Malaysia, 2020). Following the recommended guidelines by [31], this study collected information from 384 respondents, comprising of 160 males (41.7%) and 224 females (58.3%) among online business consumers who were familiar with and exposed to online purchases of products or services. The targeted respondents ranged in age from 20 to 60 and came from a variety of associations, government, academic institutions, and private industries. They occupied positions and had access to and complete knowledge of online purchasing.
4.3 Pilot Test The pilot study was conducted with 30 respondents, and the results are displayed in Table 1. Based on the findings’ summary of each variable, all values of Cronbach’s alpha shown in Table 1 were acceptable, ranging from 0.65 to 0.88. The values had fulfilled the acceptable value of Cronbach’s alpha, which was greater than 0.6. As such, all items in the questionnaire would be used for further data collection.
192 Table 1 Cronbach’s alpha result in the pilot study
N. N. N. Mud et al.
Variable
Number of items
Cronbach’s alpha value
COVID-19
5
0.75
Consumer behaviour
5
0.65
Application of e-business
5
0.88
4.4 Instrument The questionnaire was adapted from various sources, such as the application of ebusiness [32], the COVID-19 effect on e-business [26], and consumer behaviour [33]. The survey questionnaire was designed with a Likert scale ranging from 1 (strongly disagree) to 6 (strongly agree) to gather data from the respondents. The first section of the questionnaire dealt with asking for demographic information like gender, education level, job status, and practice of online purchasing. The second section of the questionnaire consisted of multiple items representing all the study’s constructs. A pilot was performed with 10 respondents to evaluate the respondents’ understanding of the questions before the actual data collection process. Then, the questionnaire was constructed using Google Forms and distributed via social media (e.g., Facebook, Twitter, and WhatsApp) to reach out to the respondents. It took about three weeks to complete the data collection. Finally, the data were analysed using the statistical software SPSS.
5 Data Analysis 5.1 Descriptive Statistics Socio-demographic of E-Business Retailers in Malaysia Table 2 shows the demographics of e-business retailers in Malaysia. Half of the respondents were 31–40 years old (53.4%), followed by respondents aged 41– 50 years old (24.0%). The Malay ethnic group led with 53.1%, followed by Chinese (32.6%) and Indian (14.1%). Most of the respondents were married and had an income range of RM1,001 to RM3,000. Perception on the COVID-19 towards the E-Business Application Table 3 shows the mean (SD) of respondents’ perception of the impact of COVID-19 on e-business applications. The average score for all items showed a high scale, indicating a positive perception of the impact of COVID-19 on the e-business application.
The Mediation Effect of Consumer Behaviour on the Relationship … Table 2 Respondents’ demography
Variable
193
n (%)
Age 20–30 years old
86(22.4)
31–40 years old
205(53.4)
41–50 years old
92(24.0)
> 50 years old
1(0.3)
Gender Female
224(58.3)
Male
160(41.7)
Race Malay
204(53.1)
Chinese
125(32.6)
Indian
54(14.1)
Others
1(0.3)
Marital status Divorced
57(14.8)
Married
231(60.2)
Single
96(25.0)
Income level 0.00), and RR (β = 0.018, p < 0.00). Therefore, all variables are supportive and positively related to the OP except RR.
5 Conclusion From the results analysis, HR, OR, and RR, as well as the relationship between IT, influence the OP. This result is supported by the study by Lai et al. [8] and Brah and Lim [14]. They found that the use of information to improve logistics performance and IT will enable the management to keep track of inventory at all points along the supply chain, including several warehouses in numerous nations. Furthermore,
0.803
0.772
0.248
0.766
Operational performance
Organisational performance
Relational resources
Human resources
Information technology
Human resources
\
0.641
0.801
0.811
Information technology
Table 3 Discriminant validity-correlation between latent variables
0.365
0.843
Operational performance
0.810
Organisational performance
Relational resources
308 N. I. A. Nordin et al.
Effect of Information Technology to Resources and Operational …
309
Table 4 PLS results for structural model and hypothesis testing
HR
Original sample
Standard deviation
t-statistic
Hypothesis
P-values
Decision
0.141
0.052
2.728
H1
0.007
Supported
0.170
0.059
2.863
H2
0.004
Supported
0.040
0.034
1.171
H3
0.242
Not sup ported
IT OP OR IT OP RR IT OP
Table 5 PLS result for endogenous latent construct R2 and Q2
Endogenous latent construct
R2
Q2
Effects size
OP
0.708
0.146
Medium
(Q2 )
Note Assessing predictive relevance value of the effect size: 0.02 = Small, 0.15 = Medium, 0.35 = Large
relational resources include things like close links to trading partners, cooperation, collaboration, information sharing, trust, relationship orientation, and relationship networks. Relational resources, according to Chapman and Ward [12] and Murphy and Poist [11], should work together across stakeholder groups. Thus, RR is not significant with the IT to impact the OP for the LSP. Organisational resources and IT are important and scarce on their own, but when combined, they become unique and non-transferable [32]. In conclusion, IT is important to improve the OP in the LSP; without IT, HR, and OR, it cannot achieve the target for the operation. Future studies should focus on investigating other firms’ resource capacities and performance metrics, as well as expanding this study to other countries and areas.
References 1. Coyle, J. J., Bardi, E. J., Langley, C. J.: The management of business logistics: a supply chain perspective. South-Western/Thomson Learning (2003). 2. Cui, L., Hertz, S. Networks and capabilities as characteristics of logistics firms. Industrial Marketing Management, 40(6), 1004–1011 (2011). 3. Hertz, S., Alfredsson, M.: Strategic development of third party logistics providers. Industrial marketing management, 32(2), 139–149 (2003).
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Adoption of Technologies and Innovations for Sustainable Rice-Paddy Farming in Kelantan Nur Naddia Nordin , Nur Haiza Nordin , Nur Ilyana Amiiraa Nordin , Siti Zamanira Mat Zaib , Nurul Hafizah Mohd Yasin , Nur Faiz Nordin , and Fadhilahanim Aryani Abdullah
Abstract Paddy production is an important sector for the country as it ensures food security. The National Agrofood Policy (NAP), 2011–2020, emphasises the importance of increasing domestic rice production to ensure an adequate rice supply. Meanwhile, NAP 2.0 (2021–2030), which is expected to be launched in 2021, will focus on addressing issues of productivity, production costs, and dependence on the labour force. This policy will include efforts to modernise the agricultural sector in line with the development of technology and the Industrial Revolution 4.0. Integrated agricultural technologies of a “high-tech” nature will be integrated into the sectors below NAP 2.0 as part of the emphasis on technology and applications. Rice production is a nation’s staple food source, so adopting advanced technology in agricultural production is crucial, especially in developing countries like Malaysia. In addition to ensuring the sufficiency of the national food supply and its sovereignty, consistent yields and returns can also improve the living standards of current rice entrepreneurs as well as attract new ones, especially from the younger generations. Therefore, this study was conducted to assess the level of acceptance of technology and innovation among rice farmers in Kelantan. Using SmartPLS analysis, the sample size is 45 farmers in Kelantan. As a result of the study, it was found that farmers are generally eager to adopt MARDI and KADA technology and innovations. Keywords Technology · Innovation · Acceptance · Rice paddy farming
N. N. Nordin (B) · N. H. Nordin · N. I. A. Nordin · S. Z. Mat Zaib · N. H. Mohd Yasin · F. A. Abdullah Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Kota Bharu, Malaysia e-mail: [email protected] N. F. Nordin Faculty of Hospitality, Tourism and Wellness, Universiti Malaysia Kelantan, Kota Bharu, Malaysia © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_27
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1 Introduction The rice paddy sector is of strategic importance to Malaysia as it guarantees the country’s food security. Malaysia’s total population was 32.6 million in 2019 and 32.7 million in 2020; the number is estimated to increase to 41.7 million in 2040. According to Onumah et al. [22], the average Malaysian consumes 80 kg of rice per year, or RM 44 per month, and the total domestic rice demand by Malaysians in 2019 is 2.608 million metric tons. Total rice production in 2019 was 1,876,922 metric tonnes, which can only accommodate 72% of local demand. To accommodate this excess demand, rice needs to be imported from rice-exporting countries, mainly Thailand, Vietnam, and Pakistan. The emphasis on increasing domestic rice production to ensure the adequacy of rice supply is stated in the National Agrofood Policy (NAP), 2011–2020. Meanwhile, Malaysia’s National Agrofood Policy 2021–2030 (NAP 2.0) has been formulated with the vision of developing a sustainable, resilient, and technology-based agro-food sector to drive economic growth, improve people’s well-being, and prioritise food security and nutrition. The three main principles of sustainable development (economic, social, and environmental) stated in the policy are in line with the national development agenda and global goals as aspired in the Shared Prosperity Vision 2030 (SPV 2030) and Sustainable Development Goals 2030 (SDG 2030), respectively. Policy will include modernising the agricultural sector in line with technological developments and Industrial Revolution 4.0. The emphasis on the use of technology and applications in the sector below DAN 2.0 will take into account the integration of modern agricultural technologies of a “high-tech” nature. Local rice production needs to be increased to ensure that the country’s rice supply is adequate. Instability of supply and demand due to the growing quantity of traded rice in small international markets causes rice prices to tend to experience volatility. In this regard, efforts should be focused on strengthening the country’s rice industry through increased rice productivity. Due to an increase in the number of residents, rice consumption in 2020 will be 2.69 million metric tons, up from 2.30 million metric tonnes in 2010. Several strategies have been implemented, including the Strategies for the Rice Paddy Industry 2011–2020, which aim to increase rice paddy productivity and quality in Malaysia. The production of rice in Malaysia shows an increase in production, however, at a meagre growth rate. The state of Kedah is the main producer of rice in Malaysia, and Kedah’s nettle is the main contributor to rice production in Malaysia, which would be 58% in 2020. The average rice yield (kg/ha) for the state of Kedah is also 4,994 kg/ha, compared to other rice-producing states like Kelantan (4,694 kg/ha), Johor (3,692 kg/ha), Perak (3,998 kg/ha), and Terengganu (4,550 kg/ha). The average difference in these outcomes is seen where MADA takes the initiative, effectively increasing the production of rice for their nets. Among them is the Paddy Estate Project, under the National Key Economic Area (NKEA) EPP-10 programme, and the Large Scale Paddy Cultivation Programme (PPSB) in 2020. MADA focuses on the use of IR4.0 technology such as GIS for the system to make warning decisions
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as a step forward through the 12th Malaysia Plan. Early on, the right agricultural technology allowed for more efficient farm management and the development of new farmers from the younger generation. Various efforts have also been made by the Board through Kemubu Agricultural Progress (KADA) to assist farmers in improving rice production in Kelantan. Nonetheless, due to factors such as planting rice twice a year, a lack of water supply, a lack of technology in paddy cultivation, and the attitude of farmers, the rate of rice production in Kelantan is low. According to Adam Smith, a scholar of modern economics, production depends on several main factors, among which are labour, capital, and technology. Thus, technology in paddy cultivation in Malaysia is seen as one of the requirements to ensure the adequacy of rice supply in the future, alongside labour. On the other hand, labour productivity is influenced by several factors, among which are attitude, ability, and expertise. Attitudes become the main factor that leads to improved productivity results. Among the factors influencing attitudes are age factors, lack of information or information that does not arrive, and demographic factors. Therefore, the main objective of this study is to examine the acceptance of technology and innovation in rice cultivation in Kelantan in order to increase rice production in Kelantan.
2 Literature Review Malaysia has concentrated on rice paddy production policies, given that rice is the country’s main crop and food staple. Malaysia continues to take proactive and progressive measures to promote the development of the rice paddy and latency sectors throughout the 11th Malaysia Plan (2016–2020) and National Agro-Food Policy (2021–2030). The effects of climate change, however, are estimated to be worsening the rice crop system and increasing the production of paddy crops, contributing to food security in the future. Therefore, various solutions are necessary to overcome this problem. Among them is applying technological innovation to the production of the rice paddy crop. Technological advancement and innovation are two synonymous terms, having the same purpose, which is to facilitate the production process or improve efficiency in production, which brings benefits to the individual or group that uses the innovation. Innovation can take the form of tools, but new ideas or practices are also defined as innovation [18]. Innovation can also be recognised as “something real” or “something unreal.” In the context of rice farming, “something real” conveys objects that can be held, touched, on seen like machines, steel, seeds, etc., whereas “something unreal” conveys concepts that cannot be held, touched, or physically observable, such as planting methods, management practices, and so on. The continuation of new agricultural innovations distinguishes between modern and traditional agricultural systems [23]. The creation of an innovation is not only aimed at simplifying the production process; it also aims to increase the agricultural production to meet the requirements, thereby guaranteeing food safety.
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In addition, one of the objectives of agricultural innovation is the reduction of production costs [23]. The unbalance between population growth and food production led to the development of periodic agricultural advances, so that efforts to boost agricultural production depend on more than just the size of the agricultural land [24]. Thus, the initiative to introduce agricultural technologies is periodically undertaken to fulfil these objectives. One of the innovations in rice cultivation that can increase rice production without the use of synthetic materials in addition to reducing the cost of rice production is the System of Rice Intensification (SRI), which was first introduced in Kedah in 2010 and has successfully increased the production of rice products in Kedah. The SRI method is said to boost rice production even when water is scarce [8]. SRI is a system that is formed by several combinations of rice cultivation methods resulting from the farmer’s own creativity and innovation. This statement is in line with the opinion of Uphoff [27], which says the SRI method is the method of farming developed as a result of innovation by farmers who are out of the habit of rice cultivation and where this methodology has advantages in increasing land productivity, labour, water, and capital on a simultaneous basis. The SRI method is also agreed upon as a new methodological development in lieu of new agricultural technology [3]. According to Uphoff [27], the practice of the SRI method involves a change in field management, i.e., soil, water, and nutrient management. A 50–100 percent increase in rice yield is now possible thanks to changes in field management. Based on past studies conducted in most rice planting areas in India, Indonesia, and Timor Leste, the SRI method has shown success in increasing rice production in addition to reducing the use of subsequent inputs, thereby reducing production costs as reported by Luh and Bambang [16] and Noltze et al. [20]. Apart from SRI, the Selangor government, in collaboration with FGV, introduced Smart Sawah Berskala Besar (SBB) to farmers outside the area in Selangor in an effort to empower the rice paddy industry in the state. The hypotheses of this study are as follows: H1: There is a positive relationship between attitude and the use of technology innovation in rice cultivation in Kelantan. H2: There is a positive relationship between subjective norms and the use of technology innovation in rice cultivation in Kelantan. H3: There is a positive relationship between perceived behaviour control and the use of technology innovation in rice cultivation in Kelantan. According to Jaffar and Musa [14], the Theory of Planned Behaviour (TPB) is one of the most influential and general frameworks in the study of forecasting behaviour from a variable attitude. TPB consists of three constituents: (a) behavioural attitudes; (b) subjective norms; and (c) the influence of behaviour felt that connects beliefs and actions [28]. As outlined in TPB, three types of beliefs that influence human behaviour are beliefs about possible behavioural effects (behavioural beliefs), perceptions of others (normative beliefs), as well as influences that lighten or hinder the behaviour (control of trust). Normative beliefs influence perceived behaviour by
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causing subjective norms or perceived social pressure, whereas behavioural beliefs shape attitudes and positive or negative behaviour [4]. Attitude, subjective norms, and planned behavioural control both contribute to the expansion of behavioural goals referred to as “instant behavioural antecedents” [1].
Attitude H1 Subjective Norm
Planned Behavioural Control
H2
Technology innovation acceptance in paddy cultivation in Kelantan
H3
3 Methodology Farmers in Kelantan were the analysis unit in this study, which used facility sampling methods to select participants. According to Kumar et al. [15], facility sampling is a process that involves collecting data from a specific population that researchers can easily access. In general, sampling techniques that are based on the conceptual framework are unlikely to be appropriate for studies that investigate the influence of theory [13, 19]. Therefore, this study used this method because it fits the context of the study. Data collection was done using online and face-to-face surveys; however, to reduce the possible risk of low rates of return, researchers decided to interview farmers in Kelantan face-to-face. In addition, to minimise the variance of the general method (CMV), some procedural solutions were also implemented. First, a description of the research project was written in the questionnaire to outline the purpose and importance of this study to society. In addition, the respondents were given instructions on how to respond and were assured that all answers and personal information would be treated with complete confidentiality. In addition, their participation in the study was voluntary, and they were also encouraged to answer all questions honestly because questions have no correct or incorrect answers. Based on the recommendations in Mackenzie and Knipe [17], different scales were used to measure variables using a five-point Likert scale. The analysis employed the table developed by Green [7] and was performed before data collection to identify the minimal sample size required to achieve sufficient statistical strength in order to explain the relationship in the model, as recommended by Hair et al. [10]. To analyse the data, SmartPLS software version 3.2.8 was used to experiment on complex models involving latent variables. The software is suitable to be used as a tool as it can better explain the
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underlying constructs, including relationships between variables. SmartPLS is also suitable for data that does not meet the normal distribution.
4 Results and Analysis 4.1 Demographic Profile The demographic background of the respondents, consisting of 45 farmers in Kelantan, is shown in Table 1. Table 1 Respondents’ demographic profile Demographic
Frequency
Percent
40
89
1. Gender
Male
5
11
2. Age
31–40 year
15
33
41–50 year
25
56
Female
51 year and above 3. Race 4. Residence/district
8
18
Malay
40
89
Others
5
11
Tumpat
30
67
Pasir Mas
10
22
5
11
Wakaf Bharu 5. Income
6. Duration work as farmer
7. Used a technology
RM1,000 and below
0
0
RM1,001–RM2,000
0
0
RM2,001–RM3,000
10
22
RM3,001–RM4,000
15
33
RM4,001–RM5,000
18
40
RM5,001 and above
2
4
Less than 1 year
2
4
1–2 years
7
16
2–3 years
12
27
4 years and above
24
53
Yes
8
18
No
37
82
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4.2 Measurement Model Based on Anderson and Gerbing [2], an approach called the two-step approach has been introduced in this study, which evaluates the calculation model and the structural model. Firstly, the associations between the items and constructs were measured based on the measurement model. Secondly, the association between the independent and dependent constructs was measured in the structural model. The convergent and discriminant validity conditions must also be met in the measurement model. Table 2 depicts the measurement model for this study. Convergent validity is used to measure the extent of consensus between various items measuring the same concept. Firstly, to determine the convergent validity of each construct in the measurement model, the study tested the loading values as well as composite reliability (CR) and the average variance defined (AVE). According Table 2 Convergent validity Construct
Indicator Loadings Cronbach’s Composite AVE alpha reliability
Attitude (A)
A1
0.858
A2
0.809
A3
0.921
A4
0.855
A5
0.874
A6
0.851
S1
0.890
S2
0.843
S3
0.879
S4
0.901
S5
0.831
S6
0.826
PB1
0.890
PB2
0.854
PB3
0.904
PB4
0.889
PB5
0.867
Technology and TN1 innovation TN2 acceptance (TN) TN3
0.843
TN4
0.834
TN5
0.843
Subjective norm (S)
Planned behavioural control (PB)
R2
Composite reliability
0.942
0.967
0.734 0.789 0.934
0.956
0.921
0.765 0.754 0.989
0.921
0.945
0.832 0.729
0.921
0.934
0.987
0.832 0.891
0.931
0.932 0.876
Source Authors’ estimates based on survey data
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Table 3 Discriminant validity (HTMT) Indicator
A
A
0.859
S
PB
S
0.716
0.876
PB
0.709
0.537
0.861
TN
0.781
0.682
0.880
TN
0.896
to Hair et al. [10], to ensure the presence of convergent validity in the model, the loading and AVE values should be greater than 0.5, and the CR value should be at least 0.7. As can be seen in Table 2, the loading, AVE, and CR values exceeded the suggested values; hence, the convergent validity of each model is deemed sufficient. The loading values were recorded to range from 0.768 to 0.945, specifically from 0.722 to 0.803 for AVE and from 0.922 to 0.945 for CR. Therefore, these findings suggest that convergent validity is achieved. After achieving the criteria for convergent validity, discriminant validity was further achieved by testing the presence of discriminant validity in the model using the correlation criteria of the heterotrait-monotrait (HTMT) ratio in deciding whether all constructs in the established model varied from other constructs. Consequently, each construct was unique and not described in the model by other constructs [9]. In line with the recommendation in Henseler et al. [12], all HTMT scores were smaller than the threshold score of 0.90 (Table 3). Therefore, this shows that the model has fulfilled the suggested criteria and that all structures of the analysis were validated via discriminant validity.
4.3 Structural Model Analysis Mardia’s multivariate skewness and kurtosis were evaluated, as recommended by Hair et al. (2017) and Cain et al. (2017). Because the obtained data did not have Mardia’s regular multivariate kurtosis (β = 62.566, p < 0.01), the path coefficients, standard errors, t-values, and p-values for the structural model were recorded using a 5,000 sample re-sampling bootstrapping procedure, as suggested in [11], which also criticised the fact that a p-value is not a good criterion for evaluating the validity. Table 4 lists the parameters that the current used to put its hypotheses to the test. To test the hypotheses’ acceptance, the three variables—attitude, subjective norms, and planned behavioural control—were tested with the dependent variable. The results show that the R2 was 0.756, indicating that 75.6% of the independent variables influenced the dependent variable. The results for the std beta and p-value for each variable are as follows: attitude (β = 0.675, p < 0.00); subjective norms (β = 0.629, p < 0.05); and perceived behavioural control (β = 0.716, p > 0.170). Therefore, H1 and H2 are all positively related to the use of technology and innovation in rice cultivation in Kelantan.
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Table 4 Hypothesis testing direct effects Hypothesis
Relationship
Std Beta
Std Error
t-values
p-values
f2
VIF
Results
H1
TN → A
0.675
0.156
3.139
0.000
0.074
1.000
Supported
H2
TN → S
0.629
0.109
5.219
0.005
0.525
1.000
Supported
H3
TN → PB
0.716
0.075
9.490
0.170
0.870
1.000
Not supports
Note A 95% confidence interval with a bootstrapping of 5,000 was used
5 Discussion and Conclusion This study aims to investigate the factors that influence the use of technology and innovation in rice cultivation in Kelantan. According to the findings and results, variables such as attitude and the subjective norm to use technology influence technology and innovation in Kelantan rice cultivation. The variable of perceived behavioural control has a minimal influence on the technology and innovation in rice cultivation in Kelantan. This is due to the high cost of technology having the greatest influence on how people perceive behavioural control. The technology is not available to all farmers. According to Nordin et al. [21], technology is important in raising individual income and living standards. Besides that, the skill to use the technology also influences the PB, and this effect on the PB is not significant for the use of technology and innovation in paddy cultivation. In conclusion, the need for technology and innovation in rice cultivation in Kelantan is very much needed to increase paddy production, increase food security, and achieve the national policy. The policy will include modernising the agricultural sector in line with technological developments and Industrial Revolution 4.0. In addition, “suitable technology needs” refers to those that match technological capabilities with job requirements, that is, those that support duties [26] and [5]. A TTF model was presented in Goodhue and Thompson [6], which expands on TAM by taking tasks’ effects on technology use into account [25]. Agricultural advances have occasionally become necessary due to the imbalance between the rising population and food supply, and efforts to boost agricultural production now rely on other factors as well. To accomplish these objectives, agricultural advances have been periodically introduced. Acknowledgement Geran Penyelidikan Universiti Malaysia Kelantan (UMK FUND) Teknologi Dan Inovasi Dalam Penanaman Padi Di Kelantan R/FUND/A0100/01695A/001/2022/01038
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The Important of Digital Payment on Tax Compliance Behavior of Assessment Tax: Case of Tumpat District Council Nur Haiza Nordin , Nur Naddia Nordin , and Nur Ilyana Amiiraa Nordin
Abstract The objective of this study is to investigate the relationship between services quality, infrastructure, customer satisfaction, and digital payment towards the perception and attitude of payment assessment tax in Tumpat Kelantan. This study is a quantitative research. As study refers to a specific period of time, then a cross sectional data collection with a survey technique through questionnaires to the tax payers will be conducted. Multi-stage random sampling is utilized to choose the respondents. There are 18,350 holdings for district council Tumpat. The sample size is set at 500 respondents, which exceeds the maximum sample size for a population of 18,350 respondents as suggested by the Krejcie and Morgan Table, which is 154 respondents. The PLS-SEM will employ to analyze the objectives of this research. The results were found that the digital payment and services quality is positive influence for the perception and attitude of customer to paying assessment tax. Online payment is most important factors influence the paying assessment tax. The indicator infrastructure and customer satisfaction of customer is not significant to the perception and attitude of customer to paying assessment tax. The hypothesis 2 was rejected. To increases the paying assessment tax, government needs to take an action to increase the infrastructure in this area and provide a camping and customer satisfaction program to this society in this area. Keywords Assessment tax · Services quality · Infrastructure · Customer satisfaction Tumpat District
1 Introduction Taxation is one of the important instruments that serves as a major contributor to the income for a country. The rationale for the imposition of taxes is to enable a government to finance the expenditure and development of its country and at the N. H. Nordin (B) · N. N. Nordin · N. I. A. Nordin Faculty of Entrepreneurship and Business, University Malaysia Kelantan, Kota Bharu, Malaysia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_28
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same time balance the income gap between the high-income group and the lowincome group [17]. Despite knowing that the main purpose of taxation is to benefit all parties, there are certain parties who are found trying to avoid or escape from paying taxes that have triggered tax non-compliance [18]. Based on the Economic Report 2019 from the Ministry of Finance Malaysia, the source of revenue or income of the federal government is from direct taxes, indirect taxes, and other receipts. Normally, the direct tax contributes to more than 50% of the total revenue received by the federal government. Statistics show that the total revenue received in 2019 showed an increase of 46.8% compared to 2009. However, the source of revenue for federal and state/local governments is from different sources of revenue. The local government is acquiring autonomous power over its revenue as well as from other superiors. The Local Government Act 1976 (Act 171) has given legal authority to local authorities (LA) to collect revenue from certain sources. Section 39, Local Government Act 1976 has stipulated that the revenue for each local authority shall consist of the following revenue: (1) tax revenue i.e., property tax/assessment tax; (2) non-tax revenue i.e., service charges and fees, licenses, and revenue proceeds or charges to be paid; (3) non-revenue receipts accrued to the local government from the federal or state government or statutory bodies, other authorities or from any other source as a contribution, endowment, and others. The total revenue received increased, with the total revenue received for the state of Pahang showing a 17.3% increase in 2018, a 6.5% increase, the Negeri Sembilan received a 2% increase in revenue in 2018 and Malacca 8.7%. The state of Pahang achieved the highest revenue growth as a result of the tax assessment received in 2018 increasing by RM26.14 million or 18.5% compared to 2017. According to the Local Government Act 1976, the assessment tax is an annual tax imposed on property held under the local administration area. Tax Assessment is a major contributor to local revenue incurred on holdings such as residential houses, commercial properties (shops, factories, hotels, and so on), industrial properties (factories, ports, etc.), and land. The Malaysian National Audit Department’s report (MNAD) states that the assessment tax arrears in Malaysia are at an alarming rate. According to the MNAD report, the assessment tax statistics and assessment tax arrears for all local authorities in Malaysia for the period 2011–2014 were high. The cumulative assessment tax arrears refer to the amount of assessment tax revenue that cannot be collected by the Local Authority each year. Statistics show that 50% of the outstanding assessment tax arrears for 2011 is followed by 43% for 2012, 42% for 2013, and 41% for 2014. The MNAD report also states that the performance of the assessment tax collection is unbalanced between local authorities. There are local authorities with low current revenue collection and high accumulated assessment tax arrears that exceed 100% of the current year’s assessment tax. As the assessment tax is very important as the main source of revenue for the state government, the management of this assessment tax must be taken into account and scrutinized. Based on the report from the AGD, the problem of assessment tax arrears should be taken seriously by all local authorities throughout the country. The state of Kelantan is no exception to this problem of arrears of assessment tax. In 2019, the total arrears of assessment tax for all local authorities in Kelantan was
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RM59.7 million which is more than the total revenue from assessment tax collected is RM57.06 million. Based on the financial statements for 2019, the total income from assessment tax for 12 local authorities is RM178.37 million and the assessment tax arrears amount to RM45.5 million which is 25.5% of total income. The following is the percentage of arrears compared to local government revenue for 12 local authorities in Kelantan; Machang District Council (RM4.95 million/59.9%), Pasir Puteh District Council (RM5.68 million/47.4%), Bachok District Council (RM2.46 million / 39.7%), Dabong District Council (RM0.86 million/32.2%), Council Pasir Mas District (RM4.29 million/30.9%), Ketereh District Council (RM2.44 million/24.5%), Kuala Krai District Council (RM2.92 million/24.4%), Kota Bharu Municipal Council (RM16.44 million 23.1%), Council Tumpat District (RM5 million/10.6%), Gua Musang District Council (RM1.84 million/14.9), Tanah Merah District Council (RM1.34 million/9.3%) and Jeli District Council (RM0.13 million/3.3%). Statistics show that there are five local authorities that have assessment tax arrears exceeding 30% of annual income, namely DC Machang, DC Pasir Puteh, DC Bachok, DC Dabong, and DC Pasir Mas. For the Tumpat District Council (MDT), the issue of assessment tax arrears needs to be addressed so that the local authority’s financial position is more stable. Current data until December 2019 shows that the assessment tax arrears for MDT is RM 5.47 million. Where the current income from the assessment tax collected is RM978,950 compared to the total actual income that should be received is RM2,015,033.53. This situation shows that, in 2019, the total uncollected assessment tax is RM2.014 million which makes the total assessment tax arrears for MDT increase to RM5,476,257.83. There are 18,350 holdings under local authorities Tumpat, of which 80% of the holdings are from residential property, 13.7% are from business, and the rest holdings are from Federal Government Vocational School, State Government Vocational School, Statutory Body SMK, special property, factories, and financial institutions. Sources from MDT stated that 80% of the arrears (RM5.476 million) were from residential holdings. A total of 14,473 holdings are from residential houses, where if they continue to avoid paying this assessment tax will cause income for MDT will continue to decline in 2020, and this situation can affect the development planning of Tumpat District Council area as well as the provision of public facilities. Therefore, the problem of assessment tax arrears needs to be taken seriously to further strengthen the current financial position of the relevant local authorities. The objective of this study is to investigate the impact of digital payment, services quality, infrastructure, and knowledge towards the customer satisfaction of payment assessment tax in Tumpat Kelantan. The structure of this paper is following with the literature review, methodology, results and analysis, and conclusion.
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2 Literature Review As compared to income tax, research on assessment tax in Malaysia is limited. In relation to factors considered to influence tax collection, the study by Buang [3] involved all local authorities in Malaysia and found that perceptions of tax unfairness between payers and local authorities, current market conditions, payer attitude, and level of enforcement by local authorities affect tax collection assessment. His study, however, does not specifically state what forms of enforcement actions affect the collection of tax assessments. Recent studies in various fields have shown that factors that influence adherence to behavior are influenced by both internal and external factors [2, 14]. Internal factors refer to individual factors such as attitude and morals/ ethics, while external factors include environmental factors such as economic agents, laws, enforcement, and so on. Many empirical findings show the relationship between attitude and intent. In the field of taxation, Bobek [1] found that the more positive the taxpayer’s attitude toward tax payments, the better the intention to execute the tax act. Meanwhile, Witte and Woodbury [24] show that attitude plays an important role in an individual’s tax compliance behavior. In addition to behavior, subjective norms are also seen to influence behavior. Referring to the theory of Planned Behavior, subjective norms refer to the influence of social factors or reference groups that are closely related to an individual and are likely to influence the decisions to be made. This reference group includes parents, spouses, friends, teachers, business partners, and more. Many previous studies have clearly shown that subjective norm variables influence behavior intentionally. For example, a study conducted by Hanno and Violette [10] found that subjective norms positively influence taxpayers’ behavioral intentions. A study from Zainol et al. [25] found that variables of attitude and subjective norms positively and positively influence behavioral intention. Subjective attitudes and norms explain 64% of the variance in tax compliance behavior. Findings from Zainol et al. [25] also show that in the zakat environment as well, this subjective norm also affects the intention of conducting zakat compliance. In addition to the planned behavior theory, past research also shows that Basic Resource Theory can also be used as a measurement of the problems of this study. Where this theory refers to the variables of organizational factors as well as human resources. A study from Razlan et al. [20] on all 99 local authorities in Peninsular Malaysia found that there were three factors that contributed significantly to the assessment tax arrears. The first factor is the establishment of a special department/ division of assessment tax arrears, both the local authority category itself, and the third level of the UN’s reliance on assessment tax revenue. Studies suggest that each local authority needs to restructure by establishing a special section of assessment tax arrears and focusing on more effective enforcement actions. The study by Soeb et al. [22] involved all local authorities and focused on tax collection performance for the period 2004–2007. He noted that one of the causes of the tax assessment arrears was the weakness in tax administration and administration by the local authority
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itself. The study, however, did not elaborate on aspects of management and administrative weaknesses. Although there are laws and policies such as AKT 1976, MS ISO 9000, Quality Management and Quality (TQM), Client’s Charter, etc., the issue of collection of current revenue and arrears is still ongoing and burdensome. Department structure and governance play a role in the efficiency and effectiveness of the management of an organization and institution. In order for an organization to function efficiently and effectively, an organization must have sufficient human resources, skills, and commitment to responsibility and organization. A study from Lee [16] focused on factors contributing to the tax collection problem at the Manjung District Council, Perak. The findings of the study suggest five ways in which local authorities can help solve the problem of assessment tax arrears, such as improving tax collection methods, enforcing laws, verifying homeowners addresses, improving services provided to the public, and improving ways to bill and notice. The study by Ismail [12] also involved all local authorities showing that local authorities are supported by good governance and good legal provisions and taxation processes. In addition to planned behavior theory and Basic resource theory, Preventive economic theory is also seen to affect taxation arrears. Where, according to this theory, there are hundreds of variables, the first is that campaigns and promotions are often seen as important factors in helping to address the problem of assessment tax arrears. The study of Ismail [12] found that property owners do not know they can be subject to legal action if they fail to pay the assessment tax. This is due to the lack of promotion on tax assessment. The delivery of messages and information is extremely important, as studies from Castro and Scartascini [4] found that one of the most effective methods of preventing real estate tax evasion is through the delivery of messages and information on actual penalties and penalties and administrative and legal actions to be taken by the local government if it fails to comply with the tax. The second variable in the theory of preventative economics is that enforcement action is seen as an important factor in helping to address the problem of tax assessment arrears. The 1976 Act provided for several sections to guide the local authorities in taking enforcement action. Sections 147, 148, and 151 of the AKT 1976 provide for actions that may be taken by the Local Authority. The study from Sidek [21] states that although the local authority is authorized to take enforcement action, it seems that the action taken is ineffective and the property owner is not afraid of the action that could be taken. If this is not addressed promptly in an effective manner, the amount of tax arrears will continue to rise and adversely affect the finances and service delivery of local services to the local community. Figure 1 shows the conceptual framework for this study. The objective of this study is to investigate the relationship between services quality, infrastructure, and customer satisfaction towards the perception and attitude of payment assessment tax in Tumpat Kelantan.
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Services Quality
Infrastructure
Perception and attitude
Customer Satisfaction
Digital payment Fig. 1 Conceptual framework
3 Methodology This study is a quantitative research. As study refers to a specific period of time, then a cross sectional data collection with a survey technique through questionnaires to the tax payers will be conducted. Multi-stage random sampling is utilized to choose the respondents. In the first stage, state is randomly select. Then, follow by choosing district and residential areas in the next stage. There are 18,350 holdings for district council Tumpat. The sample size is set at 500 respondents, which exceeds the maximum sample size for a population of 18,350 respondents as suggested by the Krejcie and Morgan Table, which is 154 respondents. This larger size is needed to overcome the problem of the possibility of the subject not returning the questionnaire to the researcher. This size also fits Roscoe’s rough rule stipulation that sample characteristics should exceed 30 but less than 500 for most studies. The PLS-SEM will employ to analyze the objectives of this research.
4 Results and Analysis 4.1 Demographic Profile The questionnaire was distributed to the 154 respondents. From the descriptive analysis, the respondent is balance between male (51.3%) and female (48.7%), majority age of the respondent is between 30–49 years. For the race, total Malay answer questionnaire is 55.2% and the rest between Chinese (27.9%) and Indian (10.4%) and other (6.5%). Around 55.5% respondent income between RM4001-RM5000 and 31.2% for income between RM2001-RM3000. For the occupation, total respondent has a business 30.5%, self-employed 26%, government staff 24%, private staff 22.1%, 10.4% as a housewife, and 6% is disabled person.
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4.2 Measurement Model Vinzi et al. [23] and Hair et al. [7] both followed the protocols for testing the psychometric features of the multiple item scales utilised in the reflective research approach (2014). Uni-dimensionality, convergent validity, composite reliability (also known as Dillon Goldstein’s rho), average variance extracted (AVE), and discriminant validity are used to test the measurement model. The outcomes for the measurement model for every variable are displayed in Table 1. To measure the degree of agreement among several items measuring the same idea, convergent validity is utilised. First, the study investigated the loading values, composite reliability (CR), and average variance to determine the convergent validity of each construct in the measurement model (AVE). According to [8], the loading and AVE values should be larger than 0.5 and the CR value should be at least 0.7 in order to guarantee the presence of convergent validity in the model. The loading, AVE, and CR values exceeded the recommended values, as shown in Table 2, hence the convergent validity of each model is regarded sufficient. Therefore, these findings suggested that convergent validity is achieved. After achieving the criteria for convergent validity, discriminant validity was further achieved by testing the presence of discriminant validity in the model using the correlation criteria heterotrait-monotrait (HTMT) ratio in deciding whether all constructs in the established model varied from other constructs. Resultantly, each construct was unique and not described in the model by other constructs [8]. In line with [11] recommendation, all HTMT scores were smaller than the threshold score of 0.90 (Table 3); therefore, this shows that the model has fulfilled the suggested criteria and that all structures of the analysis were validated via discriminant validity.
4.3 Structural Model Analysis We used a 5,000-sample re-sample bootstrapping approach to record the path coefficients, standard errors, t-values, and p-values for the structural model, as recommended by Hair et al. [9]. In addition, Hahn and Ang [6] suggested utilizing a combination of metrics, including p-values, confident ratios, and effect sizes, to assess the validity of the hypotheses. Table 4 provides a description of the variables we utilized to evaluate the developed hypotheses. First, we tested the effect of four variables on the perception and attitude to tax assessment and the results for R2 is 0.676 (Table 4) which indicates that all three variables explain 67.6% of the variance in perception and attitude. The variable digital payment and services quality is positively related to the perception and attitude to pay assessment tax. For the infrastructure and customer satisfaction is negative related to the perception and attitude.
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Table 1 Homogeneity and uni-dimensional of measurement variables Construct
Outer loading
AVE
Composite reliability
Cronbach’s alpha
Digital payment
0.761
0.840
0.947
0.938
0.752
0.912
0.919
0.667
0.929
0.941
0.698
0.942
0.939
0.728
0.928
0.916
0.893 0.920 0.861 0.830 Perception and attitude
0.615 0.771 0.922 0.850 0.789 0.721 0.809
Service
0.885 0.861 0.885 0.767 0.872 0.840
Infrastructure
0.738 0.870 0.873 0.624 0.873 0.717 0.834
Customer satisfaction
0.872 0.798 0.758 0.882 0.872 0.845 0.885 0.683 0.840 0.719 0.912
***
Significant level 1%
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Table 2 Discriminant validity-correlation between latent variables Digital payment
Perception and Service attitude Quality
0.819
0.831
Infrastructure
Customer satisfaction
Digital payment Perception and attitude Service quality
0.783
0.825
Infrastructure
0.788
0.801
0.839
Customer satisfaction
0.815
0.766
0.601
0.882
Table 3 PLS results for structural model and hypothesis testing Original sample
Standard deviation
t-statistic
Hypothesis
P-values
Decision
Digital payment Perception and attitude
0.189
0.085
2.841
H1
0.000
Supported
Service quality perception and attitude
0.138
0.065
2.867
H2
0.000
Supported
Infrastructure perception and attitude
0.187
0.053
2.342
H3
0.067
Not supported
Customer satisfaction perception and attitude
0.027
0.048
1.849
H4
0.045
Not supported
Table 4 PLS result for endogenous latent construct R2 and Q2
Endogenous latent construct
R2
Q2
Effects size
Perception and attitude
0.676
0.154
Medium
(Q2 )
Note Assessing predictive relevance value of the effect size: 0.02 = Small, 0.15 = Medium, 0.35 = Large
5 Conclusion From the analysis, it was found that the factors such digital payment and service quality are influence the paying assessment tax, but for the infrastructure and customer satisfaction does not influence the perception and attitude towards the payment assessment tax. A digital payment is one that is made via digital methods. Both the payer and the payee send and receive money using digital methods in digital payments. Another name for it is electronic payment. The digital payments do not include any hard cash (currency notes). Digital payment transactions are done entirely online. It is a quick and practical method of payment. Result indicates that
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the Digital revolution has made the cash less transaction an easy one [5]. The cashless economy initiative, according to Kumari and Khanna [15] will have a substantial positive impact on developing economies; as a result, the cashless system will be beneficial in the battle against corruption and money laundering. Due to its speed and affordability, digital payments have a lot of potential in rural India, according to Ravi [19] research. Additionally, he claimed that NPCI had created new payment applications that could be used by all phones, even those without internet, and that they were assisting rural India. He also emphasized the benefits of the new digital payment system, such as the decrease in transaction costs, the creation of an IT act in support of the system, the potential for ICT development in India, and the simplicity of day settlement for business owners and small shops. Then, the results for service quality were support by Ismail [13] by good governance and good legal provisions support the taxation processes. For the recommendation, government need to improve the infrastructure and give the customer satisfaction to the customer they need to pay the assessment tax trough the campaign and related program. This will increase the customer satisfaction and knowledge among customer to paying assessment tax. Besides that, for the infrastructure, the rate of return from infrastructure investments would dramatically increase over time if half of the additional tax revenues were given back to private investors in infrastructure. Infrastructure investments would draw dependable and long-term private investors like pension funds and insurance funds.
References 1. Bobek, D. D.: Tax fairness: How do individuals judges fairness and what effects does it have on their behavior. (Doctoral dissertation thesis). University of Florida, Gainesville (1997). 2. Bobek, D. D., Hatfield, R. C.: An investigation of the theory of planned behavior and the role of moral obligation in tax compliance, Behavioral Research in Accounting, 15, 13–38 (2003). 3. Buang, A.: Analysis of factors that contribute to the accumulation of uncollected rates in Local Authorities in Malaysia. Universiti Teknologi Malaysia. (2000). 4. Castro, L., Scartascini, C.: Tax Compliance and Enforcement in the Pampas. Evidence from a Field Experiment. IDB Working Paper, 472. (2013). 5. Fransicka. A.M., Sahayaselvi.S.: X International Journal of Research. Vol4, issues 12. Pp 2101–2111(2013). 6. Hahn, E. D., Ang, S. H.: From the editors: New directions in the reporting of statistical results in the Journal of World Business. Journal of World Business, 52(2), 125–126 (2017). 7. Hair Jr, J. F., Sarstedt, M., Hopkins, L., Kuppelwieser, V. G.: Partial least squares structural equation modeling (PLS-SEM): An emerging tool in business research. European business review. (2014). 8. Hair Jr, J. F., Sarstedt, M., Ringle, C. M., Gudergan, S. P.: Advanced issues in partial least squares structural equation modeling. saGe publications (2017). 9. Hair, J. F., Risher, J. J., Sarstedt, M., Ringle, C. M.: When to use and how to report the results of PLS-SEM. European business review, 31(1), 2–24 (2019). 10. Hanno, D. M., Violette, G. R.: An analysis of moral and social influences on taxpayer behavior, Behavorial Research in Accounting, 8, 57–75. (1996).
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11. Henseler, J., Ringle, C. M., Sarstedt, M.: A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43, 115–135 (2015). 12. Ismail A.: Pematuhan Pembayaran Cukai Pintu di Majlis Perbandaran Sibu. Thesis. Universiti Teknologi Malaysia. (2008). 13. Ismail A.: Developing A Sustainable Tax Effciency Model To Reduce Property Tax Noncompliance. University Teknologi Malaysia. (2015). 14. Jackson, B. R., Milliron V. C.: Tax compliance research: Findings, problems and prospects. Journal of Accounting Literature, 5, 125–65. (1986). 15. Kumari, N., Khanna, J.: Cashless Payment: A Behaviourial Change To Economic Growth. International Journal of Scientific Research And Education, 5(07) (2017). 16. Lee H. W.: Rates collection in Manjung Municipal Council. Universiti Teknologi Malaysia. (2009). 17. Lymer, A., Oats, L.: Taxation: Policy and Practice. 16th ed. Birmingham: Fiscal Publications. (2009). 18. Natrah S.: Tax Non-Compliance Behaviour: Taxpayers View. Procedia - Social and Behavioral Sciences, 65(ICIBSoS), 344–351. https://doi.org/10.1016/j.sbspro.2012.11.132 (2012). 19. Ravi, C. (2017). Digital payments system and rural India: A review of transaction to cashless economy. 20. Razlan A. R., Rosiati R., Mohd Rizal P. Hubungan antara factor institusi dan tunggakan cukai taksiran Pihak Berkuasa Tempatan (PBT) di Semenanjung Malaysia. Asian Journal of Accounting and Governance, 8:153–163. (2017). 21. Sidek, H.: Ketua Setiausaha Negara. Utusan Malaysia (2008). 22. Soeb P, Martin, D., Wan Zahari, W. Y.: Property Tax Management Model of Local Authorities in. Chinese Business Review 10(1). (2011). 23. Vinzi, V. E., Trinchera, L., Amato, S.: PLS path modeling: from foundations to recent developments and open issues for model assessment and improvement. Handbook of partial least squares, 47–82 (2010). 24. Witte, A. D., Woodbury, D. F. The effect of tax laws and tax administration on tax compliance: The case of the U.S. individual income tax. National Tax Journal, 38(1), 1–13 (1985). 25. Zainol, B., Kamil, M. I., Faridahwati, M. S.: Predicting compliance intention on zakah on employment income in Malaysia: An application of reasoned action theory. Jurnal Pengurusan, 28(Julai), 85–102 (2009).
Technology in Food Production Affecting the Demand for Smoked Food Purchases in Malaysia Nur Haiza Nordin , Nur Naddia Nordin , Nur Ilyana Amiiraa Nordin , Siti Zamanira Mat Zaib , Nur Faiz Nordin , and Norzalina Zainudin
Abstract The purpose of this study is to see the factors that affect the demand for the purchase of smoked food in Malaysia. To evaluate the results, 450 samples were gathered and analysed using the Smart-PLS-Structural Equation Modelling (SEM) approach. Technology in food production is important to ensure the taste of food and the texture of food is good, and increase the demand for the smoked food. In the smoked food production, technology equipment such as a smoker digital electric is the technology used to cook smoked food. Besides, the other factors such as price of goods, taste, and preference (health food), availability goods, price of other goods, and number of consumers all play a role in the demand for smoked food. The result revealed that all direct relationships were supported by the data. The study will help food providers and food suppliers to increase their food supply for the smoked food. For the recommendation, the study needs to use a large sample size to see the relationship between the variables. The sample can be applied in focus study such as restaurants and hotels to examine the behaviour of the consumer demand for this food, and consumers’ characteristics, and it is also applicable to other types of food. The finding can be used as a benchmark to the food industry to do the innovation for this food preparation. Keywords Technology production · Food demand · Price factor · Non-price factor · Smoked food
N. H. Nordin (B) · N. N. Nordin · N. I. A. Nordin · S. Z. Mat Zaib Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Kota Bharu, Malaysia e-mail: [email protected] N. F. Nordin · N. Zainudin Faculty of Human Ecology, Universiti Putra Malaysia, Serdang, Malaysia © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_29
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1 Introduction Nowadays, the consumption of smoked food is becoming popular. This type of food is safe when it is made from fresh raw material, free from toxins, parasites and chemical ingredients. There are some factors that influence consumers to choose smoked food. Studies by [21, 23, 24] found that the important factors such as sensory appeal, healthiness, convenience, and price had an impact on food choice. Besides, the selection of food is considered a complicated process involving the product, customers, and setting of consumption. In terms of the products, intrinsic and extrinsic qualities are important for customers, where everything needs to be based on knowledge, beliefs, and attitude, and the consumptions are based on occasions and culture environments. In the selection of food, customers play an important role as one of the factors that determine the market success [13]. The other factors such as ideological motives, interest in health, sensory pleasure, weight loss, price, convenience, or familiarity can also impact food selection and said that consumers must, without a doubt, deal with safe food production techniques and processes as technology advances. The process of making smoked food is using the food technologies, and consumers are concerned about the food technologies [4]. They tend to choose food that is safe for them. Nowadays, there are ongoing works using modern food technology that developed new methods and techniques to make food safer while being able to sustain the food supply. Thus, the perception and acceptance of consumers of food technology are important. But, consumers’ preferences and acceptance are constantly changing, where in the 1970s and early 1980s, consumers quickly became convinced that additives were toxic and should be avoided, and by the mid-1990s, consumers were more interested in organic and natural foods as they began to be aware about the chemicals’ potential benefits. Studies by Brockman and Beeren stated the awareness of consumers about the benefits of additives, assuming that additives are not good and should be minimise in food. According to Varela and Fiszman [25] demographic factors such as age, gender, income, and number of the children also influence the person’s risk perception. Other studies by Johanson et al. found that the ideas, attitudes, and food knowledge influence product culture background, early eating patterns, and the constant flow of food information in daily life. Hence, the goal of this research is to look into the elements that influence the demand for smoked food in Malaysia. The structure of this article is followed by the literature review section, research methodology, results and discussion, and conclusion and recommendation.
2 Literature Review The first model for the food choice is proposed by Randall and Sanjur [16], where the study explains the three elements consisting of product, consumer, and environment. The f choice is using the buyer behaviour model such as consumer decision process
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model and the Howard-Sheth model of buyer behaviour [19]. Besides, according to Erokhin [7] the benefits of contemporary technology on food outweigh the drawbacks. Research can occasionally help to address negative effects, such as the recent rise in food demand brought on by an expanding human population. Food preservation, flavouring, colouring, and food fortification are all categories of modern technology that have their own strengths and effects in ensuring that the demand for food can be met. As the population rises, global food demand is also increasing. According to the United Nations’ Food and Agriculture Organisation (FAO), by 2030, the total world grain output will increase to 2.1 billion tonnes, but the total grain demand will increase to 2.7 billion tonnes, making it a problem that the world has to face. Even though the population growth was slower, by 2050, the global food production must increase by at least 50 percent. To increase food production, it needs to expand in investment for agricultural supporting domestic producers, encouraging climate-friendly technologies, recovering damaged farmland, and enhancing post-harvest storage, and supply chains are among the policy alternatives being pursued by countries. Steptoe et al. [21] found that to increase the volatility of agricultural production, it is necessary to ensure soil degradation, loss of groundwater and other natural resources, as well as obvious repercussions of climate change in shifting weather. According Deshingkar et al. [5] the behaviour of consumer food purchasing has changed with the increases in per capita disposable income, global interaction, information and communication technologies, urbanisation, education, and health awareness, a shift in household income groups, and changes in lifestyle and family structure. Besides, the factors influence consumer purchasing behaviour such as cultural, psychological, and economic and lifestyle influence the behaviour on purchasing for food and grocery products. For the demand of high value products such as fruits, vegetables, milk, meat, eggs, and fish, it is influenced by the sustained economic expansion and increased urbanisation [5]. The most important factor that influences the purchasing of food is household income, where the increase in household income especially for lower and middleincome households have a major impact on the food purchasing because they spend a bigger proportion of their income to buy food [8]. For the middle-class and urban consumer, if their income increases, they spend more of their income on upgrading and diversifying their diets to include high-value products such as fruits and vegetables, eating out more frequently, and consuming more processed and convenience foods. The important preferences of food such as food product selection, convenience, freshness and product quality are important to ensure high demand from the consumer [1]. Besides the household income, the characteristics of the packaged food product are also important in determining consumer purchase behaviour. Consumers are willing to buy food at the supermarket and hypermarket [20, 22, 29]. According to Rimal et al. [17] and Yeung and Morris [30] people today are more concerned about the nutritional diet, health, and food safety issues and would ensure food that they buy is classified as high-quality food.
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Daily or regular purchases from neighbourhood marketplaces known as “mom and pop businesses” characterise food purchase trends in emerging nations such as India [26]. They also examine the habits of consumers to purchase food and grocery items. Social-demographic factors can influence the purchasing behaviour of food. It includes gender, age, educational attainment, and income, which play a significant effect in defining global food consumption patterns. Price elasticity, or the relationship between the price of a food and demand for that food, have been studied extensively, but there have been few attempts to synthesis this literature. There has been no comprehensive examination of empirical evidence on the relationships between food prices and demand on a global scale to date, and no study has investigated whether these relationships differ among different income groups within the same country. In both laboratory and intervention settings, lowering the price of healthier foods while raising the price of less nutritious alternatives has been demonstrated in shifting consumers’ purchase toward healthier food options.
3 Methodology This study used a questionnaire, which was distributed to the respondents via Google Forms. Using the non-probability sampling method, the total data collected was 450 from all the consumers in Malaysia. This questionnaire was distributed from February until April 2020. The questionnaire consisted of three sections. The first section consisted of general demographic questions for classification purposes. The second section consists of a factor of demand for smoked food, and the third section consists of questions for the demand of smoked food. The questionnaire was measured by using a five-point Likert type scale, ranging from 5 (strongly agree) to 1 (9 strongly disagree). Partial Least Squares was used to analyse the data and structural equation modelling technique (SEM) was used to analyse the methodology of the study. According to Hair et al. [10] using PLS-SEM can maximise the explained variance of the endogenous latent variables. We used Smart-PLS software 3.1 version to estimate the parameters in our research model, with the number of bootstrap samples being 5,000 and all containing 450 cases.
4 Results and Analysis 4.1 Demographic Profile The questionnaire was distributed to 450 respondents. From the survey total, male respondents were 52% and female 48%. Approximately 60% of respondents are single, while the remaining are married. There are various levels of education
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for respondents. A total of 21% indicated that they had a household income of RM1,001–RM2,000, 22% indicated an income of RM2,001–RM3,000, 22% indicated an income of RM3,001–RM4,000, and 17.3% indicated that they had income more than RM4,001. Among the respondents, 24.9% were 19–29 years old, 33.1% were 25–29 years old, 14.4% were 30–34 years old, 11.1% were 35–99 years old, 6.7% were 40–44 years old and 45–49 years old, respectively, and 17% were more than 50 years old. Finally, about 23.1% of the respondents stated their occupation as government employees, 22.7% were students, nearly 13% were workers, 7.6% were housewives, and the remaining 2% were unemployed (Table 1).
4.2 Measurement Model The procedure to test the psychometric properties of the multiple item scales using reflective research model was implemented by following Vinzi et al. [28] and Hair et al. [11]. The measurement model is tested using unidimensionality, convergent validity, composite reliability (also called Dillon Goldstein’s rho), and average variance extracted (AVE) and discriminant validity. Table 2 shows the results for the measurement model for all variables. In line with [10] recommendation, a normality test has been carried out before examining the measurement model. The WebPower software was also used to calculate multivariate skewness and kurtosis and the results revealed both Mardia’s multivariate skewness (β = 10.308, p < 0.01) and multivariate kurtosis (β = 97.402, p < 0.01). This indicates the non-normality encompassed within the data, including its significant application for regression analysis via SmartPLS. Convergent validity is used to measure the extent of consensus between various items that measure the same concept. First, to determine the convergent validity of each construct in the measurement model, the study tested the loading values, composite reliability (CR) and average variance defined (AVE). According to Hair et al. (2017), to ensure the presence of convergent validity in the model, the loading and AVE values should be greater than 0.5and the CR value should be at least 0.7. As can be seen in Table 2, the loading, AVE, and CR values exceeded the suggested values; hence, the convergent validity of each model is deemed sufficient. The loading values were recorded to range from 0.714 to 0.958, specifically from 0.653 to 0.889 for AVE and from 0.882 to 0.941 for CR. Therefore, these findings suggested that convergent validity is achieved. After achieving the criteria for convergent validity, discriminant validity was further achieved by testing the presence of discriminant validity in the model using the correlation criteria Hetrotait-Monotrait (HTMT) ratio in deciding whether all constructs in the established model varied from other constructs. Resultantly, each construct was unique and not described in the model by other constructs [10]. In line with Henseler et al. [12] recommendation, all HTMT scores were smaller than the threshold score of 0.90 (Table 3); therefore, this shows that the model has
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Table 1 Descriptive statistic of respondents
Frequency
Percent
Male
233
51.8
Female
217
48.2
17
3.8
Gender
Education level Elementary education
39
8.7
247
54.9
Master
78
17.3
Doctor of philosophy
59
13.1
Others
10
2.2
19–24
112
24.9
25–29
149
33.1
30–34
64
14.4
35–39
50
11.1
40–44
30
6.7
45–49
30
6.7
More than 50
17
3.8
Married
180
40
Single
270
60
Secondary education Undergraduate
Age
Marital status
Income Under 1,000
78
17.3
1,001–2,000
95
21.1
2,001–3,000
243
22.0
3,001–4,000
100
22.2
78
17.3
More than 4,001 Occupation Government
104
23.1
Official
65
14.4
Worker
57
12.7
Retired
23
5.1
Self-employed
56
12.4
Housewife
34
7.6
102
22.7
9
2.0
Student Unemployed
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Table 2 Homogeneity and unidimensional of measurement variables Construct
Item
Outer loading
AVE
Composite reliability
Cronbach’s alpha
Technology production (TP)
T1
0.938
0.917
0.951
0.892
0.889
0.941
0.878
0.661
0.886
0.827
0.653
0.882
0.824
0.871
0.931
0.853
0.790
0.918
0.865
Price of good (P) Taste and preferences (healthy food) (T)
Number of consumer (C)
T2
0.910
T3
0.921
T4
0.893
A1
0.928
A2
0.958
B1
0.848
B2
0.799
B3
0.714
B4
0.822
C1
0.761
C2
0.855
C3
0.790
C4
0.832
Price of other goods (PO)
E1
0.924
E2
0.942
Availability of product (A)
F1
0.819
F2
0.899
F3
0.944
***
Significant level 1%
Table 3 Discriminant validity-correlation between latent variables TP
A
C
A
0.819
C
0.828
0.838
P
0.750
0.837
0.943
PO
0.782
0.700
0.812
P
0.933
fulfilled the suggested criteria and that all structures of the analysis were validated via discriminant validity.
4.3 Structural Model Analysis We evaluate multivariate skewness of Mardia (multivariate skewness and kurtosis, as indicated by Cain et al. [3] and Hair et al. [10]. The findings showed that the data we obtained were not regular multivariate kurtosis of Mardia (β = 62.566, p < 0.01), so
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Table 4 PLS results for structural model and hypothesis testing Original sample
Standard deviation
t-statistic
Hypothesis
Decision
Price of goods
0.353
0.080
4.434
H1
Supported
Taste and preferences
0.321
0.085
3.762
H2
Supported
Number of consumers
0.385
0.083
4.652
H3
Supported
Price of other goods
0.375
0.089
4.197
H4
Supported
Availability of product
0.351
0.084
4.166
H5
Supported
Table 5 PLS result for endogenous latent construct R2 and Q2
Endogenous latent construct
R2
Technology production
0.769
Q2
Effects size
0.152
Medium
(Q2 )
Note Assessing predictive relevance value of the effect size: 0.02 = Small, 0.15 = Medium, 0.35 = Large
we recorded the path coefficients, the standard errors, t-values, and p-values for the structural model using a 5,000-sample re-sample bootstrapping procedure following the suggestion on Hair et al. [11]. Hahn and Ang [9] also criticised that p-value is not a good criterion for evaluating the validity of the hypotheses and proposed using a mix of metrics such as p-values, confidence ratio, and effect sizes. The description of the parameters we have used to test the hypotheses formed is shown in Table 4. First, we tested that the effect of 3 variables on the food demand R2 is 0.769 (Table 5), indicating all variables explain 76.9% of the variance in food demand. Technology production attained (β = 0.086, p < 0.00), price of good (β = 0.080, p < 0.00), taste and preferences (β = 0.085, p < 0.00), number of consumers (β = 0.089, p > 0.00), price of other goods (β = 0.089, p > 0.00), and availability of product (β = 0.084, p > 0.00). Therefore, all variables are supportive and positively related to the demand for the smoked food.
5 Conclusion The aim of this study is to explore the factors affecting the demand for the purchase of smoked food. From the results, it shows that all the factors are important to the demand for smoked food in Malaysia. The most important factor that influences the demand for smoked food is the price of food itself. From the results and analysis, all the factors for price factor and non-price factors such as technology production, taste and preferences, number of consumers, price of other goods and availability of product influence the demand for the smoked food in Malaysia. These results
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are supported by Deshingkar et al. [5] and Vepa [27] because the factors influence the behaviour of consumer food purchasing disposable income, global interaction, information and communication technologies, urbanisation, education, and health awareness, as well as a shift in household income groups and changes in lifestyle and family structure. Besides, the factors of taste and preferences for the healthy food also affect the food demand for smoked food. This result is supported by Yeung and Morris [30] and Rimal et al. [17] in which people today are more concerned about their nutritional diet, health, and food safety issues and would ensure that food they buy is high-quality food. For the recommendation, the study needs to use a large sample size to see the relationship between the variables. Besides, sample can be applied in focus study such as restaurants and hotels to examine the behaviour of the consumer demand for this food, characteristic of consumer, and to other types of food. These findings can be used as a benchmark to the food industry to do the innovation for food preparation.
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13. Hernandez-Carrion, M., Varela, P., Hernando, I., Fiszman, S.M., Quiles, A.: Persimmon Milkshakes with Enhanced Functionality: Understanding Consumers’ Perception of the Concept and Sensory Experience of a Functional Food. LWT—Food Science and Technology, 62, 384–392. https://doi.org/10.1016/j.lwt.2014.10.063 (2014). 14. Hussien, M. H., Miskon, M. I., Kamaruddin, A. F., Ishak, N.: The Impacts of Modern Technology on Food. Nova Journal of Medical and Biological Sciences 05(01) (2015). 15. Quagrainie, K. K., Unterschultz, J., Veeman, M.: Effects of product origin and selected demographics on consumer choice of red meats. Canadian Journal of Agricultural Economics/Revue canadienne d’agroeconomie, 46(2), 201–219 (1998). 16. Randall, E., Sanjur, D.: Food preferences–their conceptualization and relationship to consumption. Ecol Food Nutr 11(3):151–161 (1981). 17. Rimal, A., Fletcher, S. M., McWatters, K. H., Misra, S. K., Deodhar, S.: Perception of food safety and changes in food consumption habits: a consumer analysis. International Journal of Consumer Studies, 25(1), 43–52 (2001). 18. Sehgal, R., Khanna, P., Malviya, M., & Dubey, A. M. (2021). Shopping safety practices mutate consumer buying behaviour during COVID-19 pandemic. Vision, 09722629211010990. 19. Sheth, J.N.: Models of buyer behavior: conceptual, quantitative and empirical. Marketing Classics Press, Decatur (2011). 20. Silayoi, P., Speece, M.: Packaging and purchase decisions: An exploratory study on the impact of involvement level and time pressure. British food journal. (2004). 21. Steptoe, A., Pollard, T.M.,Wardle, J.: X Development of a Measure of the Motives Underlying the Selection of Food: The Food Choice Questionnaire. Appetite, 25, 267–284. https://doi.org/ 10.1006/appe.1995.0061 (2011). 22. Stewart-Knox, B., Mitchell, P.: What separates the winners from the losers in new food product development? Trends in food science & technology, 14(1–2), 58–64 (2003). 23. Tobler, C., Visschers, V.H.M., Siegrist, M.: Eating Green. Consumers’ Willingness to Adopt Ecological Food Consumption Behaviors. Appetite, 57, 674–682. https://doi.org/10.1016/j. appet.2011.08.010 (2011). 24. Van Birgelen, M., Semeijn, J., Keicher, M.: Packaging and Proenvironmental Consumption Behavior: Investigating Purchase and Disposal Decisions for Beverages. Environment and Behavior, 41, 125–146. https://doi.org/10.1177/0013916507311140 (2009). 25. Varela, P., Fiszman, S.M.: Exploring Consumers’ Knowledge and Perceptions of Hydrocolloids Used as Food Additives and Ingredients. Food Hydrocolloids, 30, 477–484. https://doi.org/10. 1016/j.foodhyd.2012.07.001 (2013). 26. Veeck, A.,Veeck, G.: Consumer segmentation and changing food purchase patterns in Nanjing, PRC. World Development, 28(3), 457–471 (2000). 27. Vepa, S. S.: Impact of globalization on the food consumption. Globalization of food systems in developing countries: impact on food security and nutrition, 83, 215. (2004). 28. Vinzi, V. E., Trinchera, L., Amato, S.: PLS path modeling: from foundations to recent developments and open issues for model assessment and improvement. Handbook of partial least squares, 47–82 (2010). 29. Wells, J. A., McClendon, C. L.: Reaching for high-hanging fruit in drug discovery at protein– protein interfaces. Nature, 450(7172), 1001–1009 (2007). 30. Yeung, R. M., Morris, J.: Food safety risk: Consumer perception and purchase behaviour. British food journal. (2001).
Work-Related ICT Use Outside Work Hours and Work-Family Balance: Mediating Effect of Work-Family Conflict and Moderating Effect of Integration Preference Azimah Ahmad and Mohd Nazri Zakaria
Abstract In modern society, work is facilitated by new communication technologies that make it possible for everyone to communicate about work issues outside from traditional working hours. The COVID-19 pandemic has speeded the adoption of digitalisation and information and communication technology (ICT) tools are becoming an increasingly important part of the workforce. While more employees use ICT outside of regular working hours and premises, existing research on the effects of technology on individuals and families remains inconclusive. This paper examined the relationship between work-related ICT use outside work hours and workfamily balance while considering work-family conflict as a mediator and integration preference as the moderator. Questionnaires were distributed to 800 non-academic employees in Malaysia’s public higher education institutions who were selected using the stratified sampling method. The findings stated that using work-related ICT outside work hours is positively connected to work-family conflict; however, the effect is mitigated for employees who prefer to integrate their work and family lives. Moreover, work-related ICT use outside work hours was shown to exert an effect on work-family balance through work-family conflict. The results may help the higher authorities of public universities in Malaysia to better understand the impact of expectations regarding staying connected to work even outside of work hours. Keywords Work-related ICT use outside work hours · Work-family balance · Work-family conflict · Integration preference
A. Ahmad (B) · M. N. Zakaria Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, 16100, Kelantan Kota Bharu, Malaysia e-mail: [email protected] M. N. Zakaria e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_30
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1 Introduction The increasing work demands and rapid technological advancements are propounded to have despised the barrier between workers’ jobs and their personal time [1], subsequently imposing a significant challenge to the achievement of work-life balance. The use of information and communications technology (ICT) has added more flexibility to employees’ lives, and it enables them to stay connected to work even after being away from the workplace. Increasing the use of ICT at home not only facilitates the swift and frequent exchange of information among employees without the need to be physically present at the workplace but also allows them to work outside regular working hours. Moreover, the COVID-19 outbreak has caused many employees to experience forced digitalization that requires them to work from home and move to the virtual sphere. In a recent survey by Randstad Malaysia (2021), 49% of respondents in Malaysia want job flexibility to accommodate commitments outside of work, and 88% indicated that the pandemic had empowered them to improve their workfamily balance. An increasing amount of studies demonstrates that the use of ICT can improve the interface between work and family roles, resulting in better integration between the two [2, 3]. Previous studies have examined how using ICT outside work hours impacts workfamily conflict [4]. Recent literature has begun to examine how using work-related ICT outside of work hours might benefit personal and family life [5, 6]. However, within Malaysia, there needs to be more understanding of the effect of work-related ICT outside work hours and its relationship to work-family conflict and work-family balance. Therefore, the central aim of this study is as follows: (i) to examine the effect of work-related ICT use outside work hours on work-family balance considering indirect effects through work-family conflict and (ii) to determine whether the integration preference plays a role in the influence that using work-related ICT outside of work hours has on work-family conflict. The research model is presented below (see Fig. 1).
Fig. 1 Research model
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2 Literature Review 2.1 Work-Family Balance (WFB) Work-life balance refers “to the accomplishment of role-related responsibilities that are negotiated in work and non-work domains” [7]. It is seen as the pace at which people may satisfy their needs and wants in both their professional and personal lives. One study by Wajcma et al. [8] holds the view that technology use increases employees’ ability to balance work and family, specifically for managers and professionals, compared to other occupations. This view is supported by Towers et al. [9] who stated that ICTs (i.e., mobile technologies) influence work-life balance, which is connected to work outside the confines of the workplace. Recent research has revealed that using work-related ICT outside of normal work hours is associated with a better work-family balance [10, 11]. These findings are further supported by previous studies in various contexts, which proposed that the use of technology after work hours affects work-family balance [10, 12]. It shows that after-hours work connectivity makes people feel of having a good balance between work and family. This is different from previous studies, which focused mostly on the negative implications. Thus, employees who use their technology tools for work purposes outside of normal work may have the flexibility to balance between work and family, which is associated with improving work-family balance levels. The above discussion hence suggests the following hypothesis: Hypothesis 1: Work-related ICT use outside work hours is positively related to work-family balance.
2.2 Work-Family Conflict (WFC) According to Greenhaus and Beutell [13], “work-family conflict is defined as a specific form of inter-role conflict in which the role pressures from the work and family domains are mutually incompatible in some respect” (p. 77). They reported that work-family conflict comprises three dimensions: time-based WFC, strain-based WFC, and behavioural-based WFC. Previous research has indicated that workrelated use of ICT outside work hours is associated with work-family conflict [1, 14]. However, some authors are mainly interested in work-related ICT use on timebased and strain-based WFC [2, 3]. First, there may be time-based conflict because employees who use ICT outside of work hours may have less time for other responsibilities and obligations in the family, such as spending quality time together or keeping up with the household. Second, employees may experience strain-based conflict if they use ICT outside of work hours and can no longer participate in their
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family roles. This study, therefore, expected a significant relationship between workrelated ICT and work-family conflict. The following hypothesis is proposed based on the discussion: Hypothesis 2: Work-related ICT use outside work hours is positively related to work family conflict.
2.3 Work-Family Conflict (WFC) and Work-Family Balance (WFB) Work-family balance is defined as “the absence of work-family conflict”, while others have defined it as “the combination of low levels of work-family conflict and high levels of work-family facilitation or enrichment” [15]. According to Carlson et al. [16], there is a direct relationship between work-family conflict and work-family balance. Other research found that work-family conflict is negatively associated with work-family balance among professionals and managers in Canada [11]. The findings indicated that employees in managerial or professional positions experience more work-family conflict. This is further supported by Sarwar et al. [17] who demonstrated a negative association between WFC and WFB among university academics, and that academics experience more difficult work-family balance than those in other professions. Since work-family conflict negatively affects work-family balance, increased WFC will lead to reduced WFB [18]. It indicates that confronting difficulty in satisfying the needs of a work role due to the conflict resulting from the demands of the family role could damage the ability to meet job-related expectations and achieve a work-family balance. Therefore, it is hypothesised that: Hypothesis 3: Work-family conflict is negatively related to work-family balance.
2.4 Work-Family Conflict (WFC) as a Mediator Several studies have attempted to utilise work-family conflict as a mediator in their research [19, 20]. Thus far, no recent studies have reported that work-related ICT use outside work hours is associated with work-family conflict, which is related to work-family balance. A study by Lee et al. [21] argues that work interference with family plays a mediating role to the relationship between workplace or family experiences and the perception of balance. The findings revealed that work-family conflict mediates the relationship between married women’s work-family experience and perceptions of role balance. Furthermore, work-family conflict has been reported to partially mediate the relationships between work and family variables and satisfaction outcomes [22]. For instance, recent evidence from Wayne et al. [23] supports that
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work-family conflict mediates the relationship between work resources and workfamily balance. In summary, these arguments and empirical evidence indicate that work-family conflict is a mediator to the relationship between work-related ICT use outside work hours and work-family balance. As a result, the following hypothesis is proposed: Hypothesis 4: Work-family conflict mediates the relationship between work-related ICT use outside work hours and work-family balance.
2.5 Integration Preference as a Moderator Numerous studies have shown that employees who use work-related ICT outside of normal work hours may blur the lines between their professional and personal lives. Other researchers have discovered that conflicts experienced varies depending on integration preference [23, 24]. According to a study by Gadeyne et al. [1], the effect of employees’ integration preferences on the relationship between work ICT use outside of work hours and work-family conflict is determined by the employees’ preference to integrate their personal and professional lives. Those having a stronger integration preference may have less work-family conflict than those with a segmentation preference [24]. This is because integrators may be better at balancing the needs of their various roles in life, thus weakening the relationship between work-related ICT use outside work hours and work-family conflict. The following hypothesis is proposed considering previous findings and the effects of integration preference in influencing work-related ICT use outside work hours and work-family conflict. Hypothesis 5: Integration preference moderates the relationship between workrelated ICT use outside work hours and work-family conflict.
3 Method 3.1 Procedure and Participants The data were collected from non-academic employees of public higher education institutions in Malaysia. The sampling frame included 20 public universities with more than 7,000 employees. Stratified random sampling was chosen since each unit has an equal chance of selection. The researcher contacted eligible participants via email to complete an online survey questionnaire. A total of 690 respondents from public universities participated in this research. They were primarily female (63.9%), married (79.6%), bachelor’s degree holders (58.8%), and between the ages of 31–45 (67.7%).
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3.2 Measures Work-related ICT use outside work hours. This variable (α = 0.864) was measured with five items of information and communication tools were assessed as representative of the ICTs commonly used by the employees [1, 25, 26]. The respondents rated their probability of using each ICT tool from “1 = Never” to “7 = Always”. A sample of the items is “How often they used ICTs for work outside of normal work hours in a week.” Work-family balance. This variable (α = 0.96) was measured with the 6-items version of the Work-Family Balance Scale adopted from Grzywacz and Carlson [7]. A sample of the items is “I am able to negotiate and accomplish what is expected of me at work and in my family.” This measure used a 7-point interval scale ranging from “1 = Strongly disagree” to “7 = Strongly agree”. Work-family conflict. This variable (α = 0.94) was measured using nine items adopted from Carlson et al. [27]. It consisted of three dimensions: time-based WFC, strain-based WFC, and behavioural-based WFC. The items were rated based on a 7-point interval scale ranging from “1 = Strongly disagree” to “7 = Strongly agree”. Integration preference. This variable (α = 0.703) was measured using the 4-items version of the Boundary Management Preference Scale adopted from Kreiner [28]. Examples of the items are “I don’t like to have to think about work while I’m at home” and “I prefer to keep work life at work.” All items were rated on a 7-point Likert scale ranging from “1 = Strongly disagree” to “7 = Strongly agree”.
4 Findings 4.1 Inference Statistics The average variance extracted (AVE), composite reliability (CR), mean (μ), and standard deviation (SD) for each construct are summarised in Table 1. Table 1 Means, standard deviations, and validity of the constructs Construct
CR
AVE
Mean
SD
Work-related ICT use outside work hours
0.954
0.912
4.292
1.006
Work-family conflict
0.965
0.903
3.5752
1.4848
Work-family balance
0.880
0.595
5.4984
1.1831
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4.2 Hypotheses Testing Confirmatory factor analysis (CFA) was conducted to evaluate and validate the measurement model of the study. To evaluate model fitness, this study used chisquare/df, RMSEA, CFI, IFI, and TLI to represent parsimonious, absolute, and incremental fit. The chi-square/df is deemed satisfied as the value is less than 3.0 and the RMSEA is less than 0.08. When the values estimated are more than 0.95, it proves that the CFI, IFI, and TLI show a good fit [30]. The results also showed that the CFA satisfied the recommended threshold values (chi-square/df = 1.517, RMSEA = 0.028, CFI = 0.988, IFI = 0.988, and TLI = 0.986). Structural equation modelling (SEM) was used to test the research hypotheses. Table 2 and Fig. 2 show the standardised and unstandardised estimates. Figure 2 also illustrates the outcome for R2 values, indicating that the model explains approximately 0.4, or 40%, of the data. According to path coefficient estimations, workrelated ICT use outside work hours and work-family conflict have a positive and statistically significant (p < 0.05) effect on work-family balance. Whereas, workrelated ICT use outside work hours had a significantly positive effect (estimate = 0.297, p < 0.001) on work-family balance, thereby supporting Hypothesis 1. Meanwhile, work-related ICT use outside work hours was found to have a significantly positive effect on work-family conflict (estimate = 0.562, p < 0.001), thereby supporting Hypothesis 2. In addition, the results indicated that work-family conflict positively affected work-family balance (estimate = 0.217, p < 0.001), hence supporting Hypothesis 3. Moreover, the mediation effect was determined to be statistically significant when the method proposed by Hayes and Preacher [31] was used. The bootstrapping method was utilised in this study to validate the existence of indirect and direct effects between the constructs. Table 3 shows the beta estimate of the direct and indirect effects of using ICT for work outside work hours on work-family balance. It was found that work-related ICT use outside of work hours was positively and significantly associated with work-family conflict (β = 0.562, p < 0.001), and there was Table 2 Results of path coefficients Estimate
Hypotheses
S.E
C.R
P
Results Significant
H1
Work related ICT Use
→
Work family balance
0.297
0.052
5.725
***
H2
Work related ICT Use
→
Work family conflict
0.562
0.044
12.870
***
Significant
H3
Work family conflict
→
Work family balance
0.217
0.045
4.810
***
Significant
Note *** Indicates a p-value of 0.001
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Fig. 2 Structural model
Table 3 Bootstrapping result for the mediating effect of WFC
Indirect effect
Direct effect
Bootstrap estimate
0.122
0.32
Bootstrap p-value
0.000
0.001
Result
Significant
Significant
also a statistically significant effect between work-family conflict and work-family balance (β = 0.217, p < 0.001). On the other hand, significant direct and positive relationship was reported between work-related ICT use outside work hours and work-family balance (β = 0.32, p < 0.001), hence suggesting a partial mediation. It suggests that the effect of work-related ICT use outside of work hours on workfamily balance was mediated by work-family conflict, which confirmed Hypothesis 4. This study used the chi-square difference test to determine the significance of the categorical moderators. This is because it is important to know how the moderator affects each group. Both moderating effects were significant because the chi-square value for constrained and unconstrained models exceeded 3.84, as depicted in Table 4. A moderator is deemed statistically significant when the value of the chi-square difference is above 3.84 [29]. Thus, it can be concluded that integration preference moderates the effect of work-related ICT use outside work hours and work-family conflict, subsequently approving Hypothesis 5. To identify the different groups of low and high integration preference, this study compared the standardised regression weight and p-value for both groups. As indicated in Table 5, the low integration
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Table 4 Moderating role of integration preference between WRICT and WFC Group Lower form
Upper form
Value
Constrained
Unconstrained
Chi-square difference
Result Significant
Chi square
181.669
98.184
83.485
Degree of freedom
61
60
1
Chi square
115.708
73.384
42.324
Degree of freedom
61
60
1
Significant
Table 5 Regression weight on WRICT and WFC WRICT → WFC
Estimate
S.E
C.R
P
Result
Low integration preference
0.490
0.047
10.390
***
Significant
High integration preference
0.412
0.075
6.811
***
Significant
preference had a higher standardised estimate (β = 0.490) than the high integration preference (β = 0.412). Hence, the low integration preference dominates the relationship.
5 Discussion of the Findings Previous studies have shown that the use of work-related ICT beyond the work hours has a detrimental impact on the family domain [4, 32]. According to the Boundary and Border Theory, employees have varying degrees of maintaining work-family boundaries depending on their ability to integrate or separate between domains to attain work-family balance. Thus, it can be assumed that work-related ICT use outside work hours is associated with work-family conflict and work-family balance. This study examined the role of work-family conflict as a mediator between work-related ICT use outside of work hours and work-family balance, as well as the influence of integration preference as a moderator. The results demonstrate that employees will experience augmented work-family conflict as they frequently engage in workrelated ICT use outside work hours. Surprisingly, such increase in work-family conflict has a beneficial influence on the overall work-family balance. Additionally, the results indicate that work-related ICT use outside work hours will reduce work-family conflict among those with high integration preference because it allows for more flexible and permeable boundaries between roles. Overall, the findings show that integration preference moderates the relationship between work-related ICT use outside of work hours and work-family balance through the mediating role of work-family conflict.
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5.1 Practical Implications Changes in work, technology, and social demographics influence work-family outcomes. Our study shows that work-related ICT use outside work hours positively influences work-family balance; thus, organisations need to consider both strategies to minimise conflict and achieve a positive work balance. The results of this study also suggest that employees can use communication technology for their benefit. Although employees are highly engaged in work-related ICT use outside of work hours, it helps them to achieve a work-family balance. The rapid technological revolution also brings employees to work remotely and have flexibility, and they can remove the limit between work and personal life. These findings urge higher authorities of the public universities in Malaysia to be concerned about employees’ use of workrelated ICT outside work hours with practical guidelines on how to achieve a good work-family balance. The management should also be aware of their employees’ different needs and preferences when it comes to combining or separating work and family life. This will help employees to meet their individual boundary preferences.
5.2 Limitations and Future Research There are some limitations to the research. First, the data were gathered through a survey involving a random sample of non-academic staff from Malaysian public higher education institutions. The findings were based on a survey conducted by the management officers and professionals from non-academic staff in Malaysia. As mentioned by Stadin et al. [33], managerial and professional workers are reported to frequently use the internet compared to other occupations. Therefore, the results cannot be applied to other populations. Second, the study adopted a cross-sectional design and thus unable to articulate causal relationships. Also, the results of this study are supported by the work-related ICT use outside work hours during the COVID-19 pandemic; thus, further research needs to be conducted on the impact of workrelated ICT use outside work hours on work-family outcomes in the post-COVID-19 pandemic period not only in Malaysia but also in other countries.
6 Conclusion This paper reports evidence from an empirical study that looked on ICT use outside of work hours and the conflicts that it might cause between work and family. The findings indicate that work-family conflict significantly affects work-related ICT use outside work hours and the degree of work-family balance. When employees have a strong preference for combining their work and family lives, the use of work-related ICT outside of work hours has lessened the impact on work-family conflict. Such
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findings build on prior studies and contribute to a better understanding on the use of ICTs for work purposes after hours and its relationship with work-family balance. Overall, our findings demonstrate the significance of examining how work-family boundary management influences work-family balance.
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Live Streaming Commerce: A Systematic Review and Implication for Future Research Linlin Zhang
and Jasmine A. L. Yeap
Abstract The popularity of live streaming commerce has developed extensively during the recent few years, making live streaming commerce a popular marketing channel for companies and thereby attracting more and more industrial and academic attention. However, the scholarly work on live streaming commerce remains partial and fragmented. Thus, a comprehensive and thorough overview of this topic is needed. Therefore, this paper identified the key themes and concepts by conducting a systematic literature review. The analysis of 45 high-quality peer-reviewed academic journal articles provided a thorough understanding of the topic, summarising and analysing the mechanisms underlying live streaming commerce. Based on the analysis, the main definitions and theories related to live streaming commerce were identified, and three main research themes were presented. Based on this research, future studies should explore more diverse topics about live streaming commerce. Keywords Live streaming commerce · Systematic review · Live streaming market · Digital marketing
1 Introduction Online shopping has become the preferred shopping method, especially after the breakout of COVID-19. Meanwhile, live streaming has become an international phenomenon and has created a new social commerce method [13]. By fostering authenticity, visualisation, and interactivity, live streaming commerce has surpassed traditional e-commerce [30]. Live streaming commerce has enabled e-commerce to evolve from a product-focused environment to one that is social, hedonistic, and customer-focused [30]. According to research from the China Internet Network Information Center [5], 617 million people in China use live streaming services, accounting for 62.4% of all Internet users. According to Coresight Research, the live streaming market in the L. Zhang · J. A. L. Yeap (B) School of Management, Universiti Sains Malaysia, 11800 USM Penang, Malaysia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_31
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US is expected to reach $11 billion by the end of 2021 and $25 billion by 2023. Parallel to the growing usage of live streaming commerce among practitioners, live streaming commerce has motivated a growing body of research [4, 24, 28, 31]. However, considering the business is just emerging, the research is still in the nascent stage, and most studies currently focus on the features of live streaming and consumer motivation and intention [4]. Why live streaming commerce is so efficient and how businesses can use live streaming commerce to achieve ideal outcomes are now significant topics for both researchers and practitioners. Therefore, there is a need for a more thorough and detailed understanding of the live streaming business. The goal of this study is to fill in the gaps by conducting a systematic literature review on live streaming commerce to identify major research themes and suggest future research directions.
2 Background Live streaming has been becoming increasingly popular since 2011, and live streaming commerce represents the delivery of e-commerce operations through live streaming activities. Live streaming commerce includes more social characteristics than typical e-commerce does, allowing for real-time engagement and reducing the psychological distance between viewers and the streams [12]. Regarding academic studies towards live streaming commerce, while studies on tipping behaviour and gifting behaviour are important for live streaming platforms to evolve and achieve further development, more research should be conducted to explore the live streaming commerce that entails physical products since companies and retailers are using or expected to use live streaming as their new market channels [28]. Considering the increasingly fierce competition in the business world, companies strive to attract more consumers; therefore, they are increasingly concerned with how to efficiently adopt live streaming and achieve ideal outcomes. As a result, in order to assist businesses and researchers, this study focuses solely on the live streaming commerce involving physical products.
3 Research Methodology According to Busalim and Hussin [3] and Webster and Watson [29], the systematic literature review can be used to assess theory development and indicate research areas that need more exploration. The fundamental approach to systematic reviews is PRISMA, which specifies a minimal set of things that should be considered during the review process. As for the database selection, the selection process concluded with the selection of the ISI Web of Science database. Meanwhile, to ensure the high quality and completeness of the article, Scopus was also used to select articles. Both databases
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are the most-used databases in socio-economic disciplines and maintain consistency with prior systematic reviews in the realm of business and marketing [6, 27]. Peerreviewed journal publications, according to Mihalache and Michalache [22], are regarded as validating knowledge and having a high level of influence. Literature was retrieved in the first week of October 2021, and the items published and indexed until February 2022 were considered. Considering the topic is mainly focused on “live streaming,” therefore, the final searching strings are “Live streaming” combined “market,” “commerce,” “sell,” “customer,” “purchase,” “consumer,” and “business.” Boolean operators were used during the searching stage. Considering the article aims to study the commercial aspect of live streaming that entails physical products, studies that only explore tipping or gifting behaviour on live streaming platforms are not included. The initial stage yielded 564 hits in the Web of Science and 684 hits in Scopus. The total hits from those two databases are 1,248. The selection was restricted to articles published in journals listed on the Social Science Citation Index (SSCI) and Science Citation Index Expanded (SCI-Expanded). Based on the screen criteria (see Fig. 1), the final number of publications relevant to address the study’s question totalled 45.
4 Short Descriptive Analysis Considering that live streaming was only developed in the last few years, research into the live streaming business is still in its early stages [4]. In the recent five years, from 2017 to 2021, research about live streaming commerce published increased rapidly, from three articles in 2017 to 20 articles in 2021, and nine new articles were published until February 2022. This recent explosion mirrors the popularity of live streaming commerce. Based on the increased rate of the published article numbers, it is reasonable to expect an increase in the number of research publications in 2022. Based on the 45 articles reviewed, most articles are empirical studies (n = 38), accounting for 84% of the total articles, while theoretical papers only represented 16% (n = 7). Meanwhile, 84% of empirical studies used quantitative research methods (n = 32), 8% used qualitative research methods (n = 3), and the remaining 8% used a mixed-methods approach (n = 3). Based on the above analysis, the current trend to study live streaming commerce places an emphasis on theory testing rather than theory building. As for the data collection methods used in quantitative research and mixed research, surveys were the most popular, accounting for 91% (n = 32), with secondary data accounting for 9% (n = 3). Only two articles used multiple data collection methods, such as using both secondary data and experiment. In terms of theories used in the live streaming studies, the theories used by researchers to explore the live streaming commerce, Stimulus-organism-response theory (SOR theory) was identified as the most frequently used theory (n = 8), Social presence theory used by three articles, while other theories such as Celebrity endorsement theory, Attachment theory, Perceived value theory, Relation marketing theory,
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Fig. 1 Research methodology
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signal theory, Trust transfer theory, Social technical theory, Para-social relationship theory, and Flow theory were each used twice. Other theories such as planning behaviour theory and IT affordance theory are only used once, but they do provide some innovative and special perspectives to study live streaming commerce. Meanwhile, in the field of live streaming commerce study, many scholars choose to use more than one theory to conduct their research (n = 16). It is reasonable since live streaming commerce can be studied from different disciplinary perspectives. These multidisciplinary theories are coming from various research fields, which would provide a more diverse and novel perspective for researchers to explore live streaming commerce, and future research should try incorporating more solid theories to dig into this area.
5 Discussion There are three research themes that have been classified for further analysis: (1) Live streaming commerce and consumer behaviour, (2) Operational issues in live streaming commerce, and (3) Streamers and live streaming outcomes.
5.1 Live Streaming Commerce and Consumer Behaviour Among the chosen articles, the most frequently studied theme focused on live streaming commerce and consumer behaviour. Social factors are explored by scholars to study consumers’ buying intentions in live streaming commerce. For example, social capital and social presence are proven to be linked to consumer purchase intention [2, 33]. As for the technical factor and purchase intention, Addo and Fang [1] confirmed the positive relation between consumer engagement and followership on purchase intention. Sun et al. [28] found IT affordance is critical in live streaming commerce, and Ma et al. [21] suggested that interactivity, visualisation, entertainment, and professionalisation all play significant roles in consumer behavioural responses and have a variety of psychological explanations. In terms of the relationship between customer engagement and trust in live streaming commerce, Wongkitrungrueng and Assarut [31] found that utilitarian and hedonistic values had an indirect impact on customer engagement through customer trust in sellers and products. Besides trust in products and trust, researchers such as Li et al. [16] proved that both platform trust and celebrity trust serve as important factors in consumers’ adoption of live streaming commerce. However, the study suggested that celebrity trust is more important than platform trust. Focusing on gender differences, Zhao and Bacao [35] proved that consumers’ live streaming commerce engagement and immersion are significantly moderated by gender. Qiu et al. [26] suggested that the celebrity effect has a positive impact on customer trust.
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Zhang et al. [34] emphasised that trust can be improved through live interactivity and technical enablers and proved the moderate effect of live genre between trust and continuance intention, which proves that consumers’ trust towards fixed brand streamers and third-party streamers is different. As for the impulsive purchase behaviour, perceived enjoyment positively affects impulsive purchase, but perceived usefulness does not have the same function [15]. The streamer’s characteristics and the exterior design of live streaming platforms have an impact on consumer impulse purchases [9, 23]. The information content of live streaming platforms has a positive impact on customer impulse purchases, which is mediated by psychological distance.
5.2 Operational Issue in Live Streaming Commerce The second research theme is related to operational issues in live streaming commerce. Gong et al. [9] studied the effects of live platform exterior design, and their results suggested live streaming platforms should pay more attention to the exterior design and more pleasant exterior clues should be created. Lv et al. [20] proposed a live streaming information dissemination model, and they found that the reputation environment is an important factor because high-reputation environments can hasten the spread of live streaming information more than low-reputation environments. Liu and his colleagues [18] developed two decision models for retailers, offering the optimal decision of pricing and live streaming efforts, as well as whether to sell products on a single online store or multiple online stores and live streaming rooms. Jiang and Cai [14] developed a supply chain pricing model that included online influencers as well as retailers. Jiang and Cai [14] conducted research that explored the difficulties in coordinating supply chains for logistical services as well as how a cost-sharing mechanism affected decisions that were crucial for live streaming e-commerce supply chains. There are some studies that focus on live streaming commerce in specific industries [36], and many researchers used data from the fashion industry to analyse live streaming commerce [10, 24, 31]. Live streaming commerce is an effective method to optimise Chinese farmers’ income, and the mechanism of random reward maximises farmers’ income from live streaming sales [25]. As for the tourism industry, Xie et al. [32] identified a marketing framework for tourism e-commerce live streaming and tested the framework through a questionnaire survey.
5.3 Streamer and Live Streaming Commerce One of the most special aspects of live streaming commerce is streamers, and the relationship between streamers and platforms has been explored. For example, both
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streamer trust and platform trust will impact a user’s intention to use a certain platform; however, the result showed that the streamer trust is far more important than the platform trust [16]. The platform should manage their income-sharing rate because if they do, their efforts to suggest streamers will reduce, which will result in a decline in both the platforms’ and streamers’ earnings [17]. Streamers tend to have different characteristics; hedonic value is positively related to beauty, expertise, humour, and passion, while utilitarian value is positively related to warmth and expertise [11]. Those characteristics contribute to the popularity of streamers, which would lead to watching intention. Expertise, trustworthiness, and attractiveness of live streaming influencers positively affect consumer trust [26]. As for streamers, live content-product fit contributes to a positive hedonic attitude towards the content of streamers, which enhances purchase intention [24]. The information content of live streaming streamers triggered several researchers’ interest, such as Gao et al. [8], who confirmed that live streaming information completeness and currency exerted significant effects on consumers’ perceived persuasiveness. Luo et al. [19] found that appeals to personality in language have the biggest positive impact on sales volume, whereas appeals to logic have the opposite effect. Apart from the information content and linguistic skill, they also advised that different linguistic styles should be employed for different product types.
6 Future Research Directions and Conclusion According to the descriptive and thematic analysis, some research gaps can be identified, and thus, the following research directions are provided. More theories should be used to study live streaming commerce in the future. For example, social psychology theories such as self-congruity theory can be used to explore the congruence between consumers and live streamers and the impact of the congruence on viewers’ attitudes and purchase intentions [26]. More culturerelated theories should be used to explore the cultural impact on live streaming commerce since current research mainly studies the Chinese market and very few researchers explore live streaming commerce in the western world. Considering that live streaming commerce is a sub-theme of e-commerce, technologically related theories should be used to investigate the technological factors related to live streaming commerce. Future studies should strive to improve the theoretical tools and introduce more cross-disciplinary theories, including social science, technology, and psychology, to the live streaming commerce setting. Most of the current research uses empirical data collected in China; future researchers should expand their research field to other countries and other platforms, for example, Instagram and Facebook. Currently, surveys are the top-choice research method; however, more research methods should be used to explore live streaming commerce. Experiments and secondary data should be encouraged to be used in the future to investigate the actual consumption behaviour of live streaming commerce. The current research on live streaming commerce is limited; many topics
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can be studied in the future. Besides customer engagement, consumer attitude, and consumption, future researchers can and should explore the ethical issue related to live streaming commerce, since viewers tend to be influenced by the streamer and the consequence should be studied. Customer satisfaction should also be investigated in the future since consumer satisfaction stands for the long-term development of the industry. Meanwhile, the current research mainly discussed fashion products on live streaming commerce; more industries should be investigated, and more categorisation of products should be explored, for example, the automobile and technological products. This research has some limitations, for example, in terms of time scale, it only covers the period from 2017 to February 2022; however, this is primarily due to the subject’s relative newness. Hopefully, future research will reflect on the above issues, providing more context for studying live streaming commerce and better assisting practitioners in their use of live streaming commerce.
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32. Xie, C., Yu, J., Huang, S., Zhang, J.: Tourism e-commerce live streaming: Identifying and testing a value-based marketing framework from the live streamer perspective. Tourism Management, 91, 104513 (2022). 33. Xu, P., Cui, B., Lyu, B.: Influence of Streamer’s Social Capital on Purchase Intention in Live Streaming E-Commerce. Frontiers in Psychology, 12, 748172 (2022). 34. Zhang, M., Liu, Y., Wang, Y., Zhao, L.: How to retain customers: Understanding the role of trust in live streaming commerce with a socio-technical perspective. Computers in Human Behavior, 127, 107052 (2022). 35. Zhao, Y., Bacao, F.: How Does Gender Moderate Customer Intention of Shopping via LiveStreaming Apps during the COVID-19 Pandemic Lockdown Period? International Journal of Environmental Research and Public Health, 18(24), 13004 (2021). 36. Zhu, L., Liu, N.: Game theoretic analysis of logistics service coordination in a live-streaming e-commerce system. Electronic Commerce Research. 7, 1007 (2021).
Impact of Elements of Accounting Information Systems on Sustainability of Microfinance Institutions in Ghana: A Conceptual Perspective Godsway Seth Jokinson Djokoto, Solomon Gbene Zaato, Ahmad Ridhuwan Abdullah, Nur Izzati Mohammad Anuar, and Noorul Azwin Mohammad Nasir
Abstract This paper seeks to propose a framework for assessing the impact of the elements of Accounting Information Systems (AIS) on Sustainability of Microfinance Institutions (MFIs). All MFIs are supported by AIS for improved performance. However, the level of support provided by each element of AIS has not been identified in a single study. Microfinance (MF) serves the poor-unbanked living on less than daily income of USD2, but its sustainability is uncertain. The study reviews the literature on the six elements of AIS and measures three components of sustainability. The study is anchored on systems theory and other theories, stressing on factors enhancing optimal sustainability while avoiding systems suboptimality. A mixed research method is adopted, collecting data from 400 respondents for an analysis using SmartPLS. The study reviews the assertion that, in reality, a holistic system measures the collective performance of the six elements of AIS. Meanwhile, a reductionist system measures the individual performance of the six elements of a system. Keywords Accounting information systems · Microfinance institutions · Systems theory · Sustainability
1 Introduction All over the world, there is an increasing reliance on information technology and systems to improve financial performance and operational sustainability of businesses [1, 2]. Accounting Information Systems (AIS) provide the elements for input
G. S. J. Djokoto · S. G. Zaato (B) · A. R. Abdullah · N. I. Mohammad Anuar · N. A. Mohammad Nasir Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Kota Bharu, Malaysia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_32
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gathering and reporting of financial transactions [3]. The contribution of microfinance (MF) is huge because of its capacity of serving the financially illiterate and unbanked communities [4] but it is bereft with sustainability uncertainty [5]. The aim of this study is to provide context to its findings and contribute towards the existing body of knowledge, in order to facilitate informed decision-making. The study theoretically contributes to filling gaps in the body of knowledge by throwing more light on the existing and advance theories. The study practically assists in providing real-world results from actual findings and set new agenda for the application of AIS in the MF industry. Obviously, the key objective of the elements of AIS is to generate daily data and/or information-related activities of a firm for timely decision-making [6]. However, most Microfinance Institutions (MFIs) are unable to provide information that help in making decisions on their survival because of deficient AIS. These deficiencies also lead to delays, distortions, and misrepresentations of information on financial statements and reports [6]. Prior studies indicated that there have not been enough studies on the elements of AIS on sustainability of MFIs, and there is a need to narrow the empirical gap on the subject area and to expand and test the knowledge in the Ghana perspective. Again, previous studies on AIS were either quantitatively or qualitatively conducted. However, the current study seeks to apply a mixed approach. The study set to investigate specifically the individual impact of software, hardware, data, people, procedure, and internal controls of AIS on the sustainability of MFIs. In Ghana, the MF subsector is divided into many categories [7], and the study will be restricted to only the 137 registered and regulated deposit-taking MFIs. The study is likely to be limited by the sample size of eligible MFIs, and data for the study will be collected from only four regions. The principal theory for the study is anchored on a system theory. The study also adopts positivism paradigm of research. The theory posits that the totality of a system is greater than the sum of its parts [8]. In other words, the combined functioning of all subsystems produces a complete total, which is equal to one whole, and the non-functioning of one subsystem results in a system suboptimality [9]. The system theory will be supported by the sustainability theory [10], the contingency theory [11], and A Statement of Basic Accounting Theory, or also referred to as ASOBAT [12]. The system theory should be viewed from two perspectives: the holistic perspective and the reductionist perspective [13]. The current study seeks to adopt and expand the assertion that in the real-world context, there is the holistic view, where the six elements of AIS must be taken as a complete system in the measurement of their contribution to sustainability of the MFI on one hand, and in the reductionist view in the other hand, where the individual six elements of AIS can be broken, and their contributions to the sustainability of firm can be measured.
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2 Accounting Information System Concept Accounting information system is a set of interrelated elements (software, hardware, data, people, procedures, and internal controls) that interact to achieve a common goal [14] of processing accounting transactions for decision-making [15]. The categorisation of the elements of AIS gives users the opportunity to understand the entire operation of a system to be able to identify any suboptimality arising for appropriate remedies [15]. An AIS can be classified into four categories, namely, processing mode, systems objective, interaction with environment, and information systems by age. The processing mode consists of online real-time and online batch systems. The system’s objective consists of transactions processing, decisions processing support, and experts’ systems. Interaction with environment can either be an open system allowing interactions between its internal elements and the environments or closed system where an interaction is shielded from the outside environments, and the interaction only happens within the specific systems. Finally, the information systems by age category is classified by manual systems, legacy systems, and integrated systems, all of which are built on a source and turnaround documents [15]. The six elements of AIS are as follows.
2.1 Software Element Software element is a computer program that assists users in recording and reporting an organisation’s transactions. Accounting software is composed of various applications configured into a computer for processing, saving, retrieving, restoring, reporting, and analysing the accounting data and invaluable resources for modern business operation. Different accounting software have different applications and uses [16], for instance, Oracle, Infomis, Dbase W, Sage, Microsoft Dynamics NAV, and Linux. The quality of decision-making is dependent on the reliability, relevance, and security of data input into the software. In the deployment of software, it is important to consider where to host the data, the pricing, and the required after-sales services.
2.2 Hardware Element No accounting information runs in a vacuum. It must run within an infrastructure. Hardware refers to equipment and tools including computers, storage devices, printers, servers, routers, and backup power supply. There are five main hardware components of a computer system: input, processing, storage, output and communication devices. A server, which is the primary computer in the network, stores
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and transfers data to and from connected computers and acts as a “clearing house” for all Internet data travelling to and from the network. It is important to consider cost, storage capacity, speed, memory, replaceability, scalability, upgradability, and compatibility of the intended software when planning to install a hardware [17].
2.3 Data Element Commonly, the terms “data” and “information” are used interchangeably. However, in this study, a distinction between “data” and “information” is provided for meaningful discussions. Accounting data is the raw facts, figures or events that take place for a given reason within a period, while information is the data that has been processed into a meaningful context for decision-making [18]. Data is obtained from the daily activities of a firm, for instance, deposit by clients, withdrawals by clients or number of credit applications. A meaningful AIS hinges on the data that is electronically or manually processed depending on the capacity and capability of the organisation for an output [18]. Data processing could also be done by deterministic processing, probabilistic processing, self-organising processing, online processing, offline processing, and batch and real-time processing systems. A concise, accurate, timely, relevant, and reliable data [18] must be in a structured database [3].
2.4 People Element People element is also referred to as the human element. The people are the users of the system, and they could be internal or external users. Professionals who use an organisation’s AIS include accountants, business analysts, consultants, managers, auditors, and chief financial officers. AIS facilitates information to the external users of the organisation when required [3]. For instance, consultants use the data and/ or information in an AIS to analyse the capital structure and adequacy of a firm by looking at the financial data available and projects into the future. A people element must be user-friendly and improve economics, efficiency, and effectiveness of the operation of the firm.
2.5 Procedure Element Procedure element refers to laid down instructions, guideline, rules, and regulations on running a system. Procedures are the methods and techniques used for collecting, storing and restoring, retrieving, and processing of data [3]. Procedures are written or unwritten, electronic or manual, internal or external to the systems and are required to be followed consistently to attain the needed information. A good procedure must
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meet the 7-C framework: correctness, completeness, clarity, consistency, contextual, control, compliance of action. A procedure must be designed to function efficiently, effectively, and economically while incorporating sufficient controls to mitigate any risks of loss.
2.6 Internal Control Element Internal control element is a process formulated and implemented by an authority charged with governance and management, designed to provide assurance on set of objectives and goals. The main objectives of internal controls are to safeguard assets and resources of a firms; to check the accuracy and reliability of information; to promote operational efficiency, effectiveness, and economy; and to ensure adherence and compliance to standard procedures. Internal control is a process, not an event, that should be an integral part of the main operating systems. The five elements of an internal control framework are control environment, risk assessment, control activities, information and communication, and monitoring, which must be present in a sound, controlled business.
3 Microfinance Concept The concept of MF has become accepted globally as a tool for financial inclusion and poverty alleviation in developing countries [19] and practised particularly in Asia, Africa, and Latin America. Despite its importance, it is faced with a lot of operational risks and productive sustainability [20]. Studies have sought to understand how MF contributes to local entrepreneurship [21] and poverty alleviation [22] and to set the criteria for measuring its performances [23]. The studies have identified two ways of measuring performances of MFIs: performance of entrepreneurs as borrowers and performance of MFIs as lenders. However, there is doubt that MF promotes sustainable entrepreneurship [23]. In practice, managing MF is more complex and riskier than running other financial institutions, and practitioners who stick to using universal banking operating models in MF are easily challenged by the MF market forces, leading to their early exit. Studies have shown that, apart from governance and regulatory challenges, in very impoverished and severe illiteracy cases, some micro-borrowers use the loans to satisfy their immediate personal needs rather than investing in value-creating activities [24]. This creates repayment delinquencies that affect the future sustainability of the MFIs.
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3.1 Overview of Microfinance in Ghana Empirical evidence suggests that the first Credit Union in Africa was probably established in northern Ghana in 1955 by the Canadian Catholic Missionaries who came to Ghana. These missionaries introduced the concept of self-help to their converts to communally save and take small loans from their groups to engage in petty-trading or farming. Thrift (susu-savings), which is one of the current MF schemes in Ghana, is believed to have originated from Nigeria into Ghana in the early 1900s. The MF concept has emerged gradually bigger in different forms and sizes and is still undergoing its modern-day reforms as a result of the various financial sector policies and programmes such as the provision of subsidised credits, the establishment of rural and community banks (RCBs), the liberalisation of the financial sector, and the promulgation of Provisional National Defence Council (PNDC) Law 328 in 1991, which allowed for the establishment of different types of non-bank financial institutions. The aim of MF is not only to provide micro-capital to the poor as ammunition of combatting poverty at individual level but also as a development tool for financial inclusion and rural industry development at institutional levels [25]. In 2011, the Bank of Ghana (BoG) categorised MF by the capitalisation requirements, activity levels, location, and institutional association. This categorisation makes it easy for policy formulation, monitoring, and supervision of the industry. The categorisation also provides the opportunity for the individual associations to measure and peer-review themselves and provides the avenue for individual members to do intra- and intercompany transactions. In 2019, the BoG revoked the licenses of 347 MFIs as a part of the financial sector clean-up, which started in 2017, due to weak corporate governance, high non-performing loans, inadequate capitalisation, inadequate business recovery and continuity plans, unnecessary market competitions, financial and accounting malpractices, and capital diversions.
3.2 Microfinance Activities or Operations Generally, MF involves two main activities: in-bound activities and out-bound activities. This activity categorisation is the creation of the researcher for the purpose of the study. In-bound activities include capital injection, deposit mobilisations (normal savings), thrift (susu-savings) and investments, collection of loans repayments, inwards fintech funds, collection of insurance premium, leasing for insurance, and leasing firms. However, a good amount of this mobilisation leaves immediately, limiting liquidity retentions and turnover. Out-bound activities include capitalisation drawings by shareholders, revenue expenditure, credit granting, deposit withdrawals by clients, redemption of investments, outwards fintech funds, payment of insurance, lease benefit claims on behalf of insurance, and lease firms. These activities mirror each other directly, and any significant mismatches in any of the activities normally create a challenging situation for the MFIs.
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4 Sustainability of Microfinance Institutions Sustainability issues are complex in nature [26], and it is one of the major problems facing many institutions including MFIs across the world [27]. Business sustainability is the increase in productivity or reduction of consumption of productive resources without compromising product or service quality, competitiveness or profitability while helping to save the environment [28, 29]. Fortunately, from [30], John Elkington provided the Triple Bottom Line (TBL) framework in the 1990s, which was tested and accepted in 1998 for measuring the total performance or sustainability of a firms, which includes not only the profitability, but the environmental and social variables [31]. The increasing global awareness of environmental and social challenges on society, business, and governments supports the acceptability and application of the TBL to measure the impact and provide corrective remedies for the future survival of entities [32]. There is evidence that the MF subsector is growing more rapidly than the traditional banking subsector [5]. However, there is also evidence that the MF industry tends to be less profitable than other financial sectors. Although the MF industry is growing faster than other industries, its profitability is low, and its longterm viability and sustainability is far from certainty [33] because their operations are costly and risky in many developing nations including Ghana [34], which in turn affect their future sustainability. The TBL model is malleable to the changing needs of different users because there is no one-line composition of the variables for calculating or reporting their impact. The three dimensions of measuring sustainability are discussed below.
4.1 Economic Dimension Economic dimension is also referred to as the profitability dimension, and is easily measured in monetary terms. This dimension looks at income, expenditures, taxes, profits, business climate, percentage of firms in each sector, firm sizes, job creation and growth, and unemployment rate, among others. However, in measuring sustainability of MFIs, the following variables such as volume and value of credit granted, non-performing loans, volume and value of mobilisations, client size, labour iteration or turnover, and number of years in existence are considered. Studies revealed a positive relationship between quality of loan disbursed and sustainability and timely processing of MFIs [19]. Reporting and performance monitoring systems, loan disbursements, loan design and type, loan portfolio management, corporate governance, commercialisation, and over-indebtedness are the factors that economically affect the sustainability of MFIs [14]. Timely loan disbursement motivates employees and clients hence building long-term relationships [35]. Nonetheless, it is essential that the loan’s quality is such that the interest rate is affordable for the borrower [36].
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4.2 Environmental Dimension Environmental dimension represents activities that influence an improvement or destruction to the natural and physical environment. To avoid the complexities of individual measuring and reporting formulae, the Global Reporting Initiative (GRI) metrics are mostly recommended. These metrics include variables such as waste controls, energy controls, water controls, air quality controls, built environment controls, land use and natural habitat controls, and transportation. Generally, availability of long-range trends analyses for each of the variables helps organisations identify the policy impacts they have on their operating area. However, in the case of MF, longevity of a business simply means the length of time the business has been existing. Although business longevity does not necessarily mean ensuring an organisation exists beyond its first-generation ownership, there is an element of how long the business has been existing. Corporate governance is another measure of sustainability of MFIs, which is a broader stakeholder approach to corporate governance laced with board independence, transparency, and gender equality. This measure helps MFIs to manage the trade-off between outreach and financial sufficiency [37].
4.3 Social Dimension Social dimension is also referred to as the human dimension, as it refers to activities that affect the lives of the individual. The objective of the social dimension is to measure the long-term survival of a business within a society. The GRI guideline is also mostly used to measure variables such as rate of unemployment, rate of female labour participation, median household income, rate of poverty and population growth, rate of home ownership, rate of population with secondary education, rate of commuting time, rate of insecurity per capita, rate of reproductive health and mortality, rate of financial inclusion, and rate of life expectancy. It is observed that firms that promote gender diversity and equality perform better. Hence, women employees are considered most loyal, skilled, and high performers [38]. This situation reduces the level of non-performing loans, which contribute to the survival of the MFIs. The higher the percent of females on the boards of firms, the higher the chances of influence to societal issues, hence higher chances of sustainability [39].
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Fig. 1 Romney et al. (AIS) and Elkington [12] (TBL model)
5 Conceptual Framework The study integrates the TBL model and AIS concept to form a new conceptual framework to identify the related impact among the dependent and independent variables (see Fig. 1). The study will adopt a five-point Likert-scale question ranging from strongly disagree to strongly agree. The Likert-scaled questions will be distributed to the respondents, collected, and analysed. Below is the conceptual framework of the study.
6 Research Methodology A mixed research method is adopted in a descriptive design format. This design does not control or manipulate any variables but only observes and measures the variables. The study proposes to use the SmartPLS instrument for the data analysis. Primary data for the study will be collected using questionnaires from 400 respondents, and secondary data will be gathered from published reports and journal articles. The data will be analysed using the SmartPLS, where all the six elements of the independent variables will be statistically tested for significance, which should not be less than (0.05). The population for the study will be the entire registered and regulated 137 MFIs with the BoG. MFIs in the Greater Accra, Ashanti, Western, and Northern regions are the targeted population for the study. Using purposive sampling technique in selecting the sample size for the study, 60 MFIs specifically 25 from Greater Accra, 15 from Ashanti, 10 from Western, and 10 from the Northern regions will be measured. About 400 respondents are expected to respond to the questionnaires and interviews.
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These respondents include board of directors, management members, staff, staff of regulators, and some clients.
7 Conclusion The significance of MF cannot be overrated as alluded by various authorities in society, business, and government, locally and globally, as one of the most important tools for poverty alleviation to build local capital and for financial inclusion. AIS provides the interactive vehicle in which the MF runs. However, literature indicates that most of the MFIs are struggling for survival because of their inability to systematically use the elements of AIS to attain their sustainable goals. Available literature also indicates that MF is growing so rapidly. However, its future survival or sustainability is uncertain. Therefore, the current study seeks to investigate the impact of the elements of AIS individually and collectively, considering the holistic and reductionist approach to measure the significance of the elements on the survival of the MFIs. The study seeks to use SmartPLS to analyse the data from expected 400 respondents in the four regions of Ghana to form the generalisations. The study is likely to be limited by the sample size of the eligible MFIs, but the results will form a good ground for contribution to the body of knowledge in the fields and areas of study, which practically provide alternative and smart tools and reasoning for measuring the elements of AIS, and provide some bases for policymakers in the regulation and supervision of the MF subsector and to some extent similar financial subsectors.
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Refining Pawah System Using Mudarabah Concept Nur Hasyirah Mohd Marzuki, Siti Nurzahira Che Tahrim, and Mohd Zulkifli Muhammad
Abstract Pawah system, an informal agreement between breeder of livestock (entrepreneur) and capital provider, has been practiced from generations to generations in Malaysia. However, it is not realized that mudarabah (profit sharing) is embedded in pawah system. On the other hand, mudarabah is also facing some problems to be implemented in the Islamic banking context. Thus, the objectives of the study are to analyze the similarities between pawah and mudarabah in terms of concepts and features, and to investigate how the pawah system can be refined using mudarabah concept. The qualitative method was adopted where the data were collected to the present study by in-depth interview and library research. By the end of this study, it is found that the involved parties understand and know the concept, features and challenges of pawah and mudarabah; however, they did not know how to use the concept and features of mudarabah concept in pawah system properly. Also, mudarabah can be embedded in pawah system through mudarabah concept by introducing mudarabah concept in pawah system such as fixed-lock system. The result of this study attempts to put forward suggestions in improving the pawah system using mudarabah concept and propose ideas of having pawah system using mudarabah concept between the entrepreneur and capital provider. Keywords Pawah · Mudarabah · Individual · Animal breeding · Digital technology
1 Introduction Animal breeding industry in Malaysia has been the backbone of agriculture for years. It helps two billion people and supports the human life of 59% smallholder farmers globally (World Bank 2021). At the present time, animal breeding is one of the fastest growing agricultural subsectors in developing countries, making its shares of N. H. Mohd Marzuki (B) · S. N. Che Tahrim · M. Z. Muhammad Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Kota Bharu, Kelantan, Malaysia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_33
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agricultural gross domestic product (GDP) 43% (World Bank 2021). Animal breeding systems are divided into two systems, which are breeding system in a shelter, and letting go the animal to have food by their own within one time in one place. Animal breeding in Malaysia has been practiced since sixteenth century using the pawah system (Nelly et al. 2017). However, the farmers do not realize that pawah system is embedded in mudarabah concept, which has been introduced since the period of Prophet Muhammad S.A.W., as mudarabah is the most compatible for profit-and-loss sharing business. Pawah is defined as dividing the profit gained from animal breeding between the capital provider and the entrepreneur (Kamus Dewan Edisi Keempat 2009). The capital provider is the one who will provide the capital in a form of buying an animal and asks the breeder of livestock (entrepreneur) to take care of the animal; therefore, once they gain the breeding, it will be divided between both parties. The first born child of the animal will be the capital provider’s share and the next child of the animal will be the entrepreneur’s share. Pawah system has been practiced over a long period of time. Thus, the allocation of animals is divided fairly and in accordance with the pre-agreed terms of the business agreement. Hence, the agreement must be mutual between two parties to avoid any misunderstanding in the transactions of partnership between the capital provider and the breeder (entrepreneur) to look after the animals. Next, mudarabah is a contract between parties who are involved in a business transaction, where the capital provider provides the capital and the entrepreneur provides expertise and is involved in the business management. At the end of the business, parties will share the profit [27, 34]. Both the capital provider and the entrepreneur will share the business profits upon the agreed ratio between both parties. However, if the business fails, the losses are borne by the capital provider, while the entrepreneur would bear losses in time and effort which has been contributed during the business transaction. The pawah system and mudarabah exhibit similarities in which two parties, namely, the capital provider and the entrepreneur, participate. They agree to share profits and the capital provider bears the losses, while the entrepreneur endures the loss of time and effort expended during the transaction. However, the generations do not realize that mudarabah has been embedded in pawah long ago. It is important for future generations to recognize that the concept of mudarabah is inherent in pawah. This is because pawah can be enhanced to incorporate the genuine practice of mudarabah, which is not entirely feasible within financial institutions (Tahrim et al. 2018). Also, mudarabah always focuses on the financial institutions and it is less accepted by the public due to its asymmetric information issues that lead to agency problems, such as moral hazard and adverse selection [1, 13, 17]. The study has two objectives: the first is to examine the similarities in concepts and features between pawah and mudarabah, while the second is to explore ways to enhance the pawah system through the application of mudarabah at the individual level. The rest of this paper proceeds as follows: Sect. 2 discusses on the research method of the study, while Sect. 3 highlights on the similarities between pawah
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system and mudarabah concepts, reintroduce mudarabah concept in pawah system, and the implications and recommendations of pawah system using mudarabah concept.
2 Research Method This study used primary data collection. The required data were collected by having an in-depth interview with the informants. It was conducted on the farmers who are practicing pawah system. This study is a case study with an emphasis on analysis using qualitative method. Primary data was collected through in-depth interviews with six informants, three capital providers and three entrepreneurs. The interviews were conducted in Tumpat, Kelantan. The in-depth interviews can help the researcher with the information that is significant for the study. Information retrieved was because the pawah system is still being practiced these days. In addition, theme analysis was done by using ATLAS.ti software to obtain four themes of the study and presented in the results and discussion.
3 Results and Discussion 3.1 Similarity Between Pawah System and Mudarabah Concept Mudarabah is defined as an agreed contract approved by sharia, whereby one party, the capital provider, gives the capital while the other party, the entrepreneur, gives the entrepreneurship and effort to run the business. The profits from the business are shared by the two parties as indicated by sharing proportion. All the losses are born by the capital provider if it is not due to the entrepreneur carelessness. In contrast to the agreement, the entrepreneur is obligated the entire business, thus the capital provider is not permitted to interfere (Diaw and Mbow 2011). Therefore, mudarabah is a contract which involves two parties to earn profits and the profits will be shared according to agreed ratio, where one party will provide investment capital and another party will work on the investment capital in the business. However, if the business suffers losses at some point, the one who provides investment capital would lose the money and another party would lose the efforts and time while running the business. Shafiai and Moi (2015) stated that pawah is a system where the landlord and farmer agree to share the crop according to an agreed proportion, for instance, sharecropping in livestock, paddy fields, etc. In addition, pawah also known as profit sharing system from the agricultural activities, animal farming and others between capital provider and farmers (Dewan Bahasa dan Pustaka 2015). Hence, it can be concluded
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that profit sharing contract, such as mudarabah, can be adapted in pawah farming system once related terms, rights, and responsibility of the capital provider as well as profit distribution, risk, and cost are assessed. The distributions for this farming are estimated from the breeding produced upon on the consent of both parties during the agreement. If the capital provider asks the entrepreneur to breed the female breed, the first and second cow would be returned to the capital provider while the third one would be the entrepreneur’s. Then, the fourth and fifth children will return to capital provider and the sixth cow becomes the entrepreneur’s and so on. Therefore, both mudarabah and pawah have similarities of concept which involve two parties: capital provider and the entrepreneur and profits are shared upon the agreement between two parties. Moreover, mudarabah can be adapted into pawah as the entrepreneurs and capital provider have been practicing this concept without realizing the true mudarabah concept and do not realize mudarabah concept is embedded in the pawah system. Thus, by approaching pawah as the resemblance of mudarabah can help to reintroduce and improve pawah using mudarabah. Moreover, most of the previous studies discussed the similarities between financial institutions and entrepreneur, whereas this paper focuses on individual transaction level between a single capital provider and entrepreneur. The introduction of the real mudarabah can help both the capital provider and the entrepreneur to stay competitive in livestock industry. Besides that, recent study suggests and recommends new initiatives for capital provider and the entrepreneur to sustain in livestock pawah, which is to reintroduce the real mudarabah concept by using pawah system [28]. The real mudarabah contract involves one-to-one relationship, where the contract can be reintroduced, reapplied, and reused by the capital provider and the entrepreneur in performing business transactions together. As per the mutual agreement between the parties, proportions of profit and loss, either having profits or losses, during the business cycle.
3.2 Reintroduce Mudarabah Concept in the Pawah Systems Previous studies have identified several reasons why entrepreneurs often fail to recognize the embedded mudarabah concept in pawah. These include a lack of awareness of mudarabah among individuals [1, 34] (Yanaga 2002), with most mudarabah concepts being primarily focused on financial institutions. As a result, moral hazards and adverse selection pose significant risks for financial institutions, necessitating close monitoring. Furthermore, financial institutions may be reluctant to engage in this high-risk business to prevent losses [20, 21] (Nur and Nur 2018). However, by fostering trust between both parties during the transaction, the risks of asymmetric information can be minimized. A recent study [28] recommends entering pawah system through mudarabah concept at an individual level, the pawah system received high attention from the entrepreneurs and the capital provider. The unused land can be utilized for the breeding animal as for the entrepreneurs [2]. The animal breeding can be raised
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on the unused land, and it can help both the capital provider and the entrepreneur in the form of animal breeding. It can also help the entrepreneurs with the opportunity to promote and reintroduce mudarabah concept through pawah system. Based on the previous studies, generally, there are ways on how to adopt mudarabah under the pawah system. Firstly, improving the pawah system through mudarabah concept by having an in-depth knowledge and understanding is the basic of pawah system that need to be accepted by the capital provider and the entrepreneur. Therefore, it is proven that majority of the entrepreneurs and capital providers have the knowledge on how the pawah system works. Indeed, it is related to Allah from the Surah An-Nisa, ayah 162 (4:162), which stated that if someone is full of knowledge, he will be cleverer in making decision and more faithful, apart from receiving big reward in the afterlife. Moreover, understanding of the pawah system is crucial. New ideas and suggestions that are easier to understand can be accepted to improve the system itself [31]. The level of understanding in basic knowledge of breeding and pawah system needs to be explored and learned by the capital provider and the entrepreneur. The informants exhibit a low level of awareness regarding the significance of the pawah system. To ensure that they possess adequate information and a proper understanding of the procedure, there is a need to increase awareness. This can be accomplished by reintroducing the authentic mudarabah concept into the pawah system and by practicing it at the individual transaction level. For example, it could involve one-to-one participant interactions or transactions between the capital provider and the entrepreneur, which would serve to enhance the accuracy and Sharia compliance of the pawah system. It can be adopted, as mudarabah is famous with its transparency when dealing in business transactions. When investigating the possibility to refine pawah using mudarabah, knowledge and practice are the main hindrance. From the theme analysis, the informants’ level of knowledge and acceptance to practice mudarabah in pawah transactions can be grouped into four categories. First, the capital provider and entrepreneur must know and practice the actual mudarabah concept in pawah system. Next, they practice the pawah system but do not know they are actually following the real mudarabah concept. Then, they do know the real mudarabah concept but do not practice and follow the concept in pawah system. Finally, both informants do not know and do not practice mudarabah concept under the pawah system.
3.3 The Implications and Recommendations of Pawah System Using Mudarabah Concepts As discussed above, before pawah system becomes an alternative to profit-and-loss sharing contract, the capital provider and the breeder of livestock (entrepreneur) need to truly understand the features and concept of pawah and mudarabah. Nonetheless, pawah system is still widely used. Even so, entrepreneurs could try to improve and
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use the correct way of adopting the pawah system through mudarabah concept. The need of promoting of pawah system has to be intensified to ensure that the capital provider and the entrepreneur truly understand the importance of pawah system in mudarabah concept. Pawah system has its own history and uniqueness,; therefore, the efforts in that direction need to be cultivated and nurtured in every capital provider and the entrepreneur. Managing the risks associated with profit and loss sharing is crucial; hence, there is a need to take necessary measures to mitigate them. One of the most significant factors in mudarabah is monitoring, which makes risk management a top priority, especially when it comes to the possibility of the livestock falling ill. Thus, there are a few recommendations in this study, as shown below, and the summary of the research study is concluded in Framework 1. Recommendation 1: The entrepreneur has suggested that reducing the risk of animal breeding can be achieved through proper care, such as administering medicine and monitoring the animals three times a day in case of sickness. This approach can benefit both the capital provider and the entrepreneur by avoiding potential losses that could result from sick animals. Additionally, by creating a supportive and confident business environment, it can encourage more entrepreneurs to participate in the community. This, in turn, could generate new ideas to enhance the pawah system through the mudarabah concept without violating any prohibited elements of Islamic contract in individual transactions. The current pawah system does not monitor closely the condition and business transaction of the livestock. Mudarabah, which puts high importance of asymmetric information, requires close monitoring activities of the entrepreneur. Pawah can be improved by adopting this mudarabah concept and placing better monitoring system of the livestock. Therefore, below recommendation in this study. Recommendation 2: Entering pawah system through mudarabah concept at individual level as it is easier to monitor the transaction between two parties involved. It can help to minimize and reduce the asymmetric information in the business transaction. As previous studies, asymmetric information is found in every Islamic transaction and caused low level of interest among the involved parties [23, 7]. Therefore, refining the pawah system through mudarabah concept can help the transparency of the business, which can also help the Islamic financial to grow tremendously. In addition to mudarabah, the study has gathered other recommendations from the informants that are noteworthy and should be mentioned as part of the additional recommendations. Additional Recommendation 1: A fixed-lock system is recommended by the entrepreneur to have a maximum profit which means breed the animals for commercial. It is a place like one stop center for pawah where the capital provider and the entrepreneur can meet and have business transaction. Technology is also one of the important elements that can be used to improve pawah system. Meanwhile, by using the latest technology or digital technology [35–38], such as tagging system on the breeding, the animals can be created to monitor the process of the breeding. For instance, a barcode tagging attached to the animals can be scanned which would show how old the animals are, who the owners are, and so forth. The utilization of digital technology enables real-time access to everything, making it easier to obtain
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Result
Pawah & Mudharabah
1. Features & Challenges
1. Use & know of pawah & Mudharabah
2. Concept & features of pawah & Mudharabah
2. Use & do not know of pawah & Mudharabah
3. Pawah can be improved through Mudharabah concept
3. Do not use & know of pawah & Mudharabah 4. Do not know & do not use of pawah & Mudharabah
Recommendations 1. reintroduce the real Mudharabah 2. entering pawah transaction at individual's level 3. fixed-lock system eg tagging, record by usng digital technology 4. umbrella system
Fig. 1 The result of pawah system can be improved through mudarabah concept
information. At the same time, it can attract more entrepreneurs to be in the community once they gain the support from the community itself. By doing so, mudarabah will be used among the capital provider and the entrepreneur as the replacement of profit and sharing loss concept in conventional financial contract. Therefore, Islamic financial contract can grow in future as mudarabah concept is reintroduced back to pawah system. Hence, as the main role support of profit loss and sharing business, the community of entrepreneurs must keep the effort to enhance pawah system through mudarabah concept in individual-level transactions. Additional Recommendation 2: An umbrella system like a center where a group of people breed animals for sales. Besides that, the implementation must be in a systematic system and a very well-planned procedure for this to happen. For this to be successful, security system is also needed to avoid the moral hazard, apart from involving asymmetric information between parties and keeping the business transparent. By having this security system, it can help to minimize the risk of the involvement of prohibited elements in Islamic contract. Therefore, cooperation among parties involved is necessary to encourage the community to keep using pawah system through mudarabah concept. The capital provider and the breeder (entrepreneur) play an important role to entrust this implementation to the new capital provider, community, and financial institutions to improve the pawah system through mudarabah concept at individual level. Hence, the mudarabah concept can be reintroduced and reused in the Islamic economy, leading to its tremendous growth in the future (Fig. 1). Hence, the summary of the research study is shown in Framework 1.
4 Conclusion There are a few recommendations which have been said in this research by the researcher with the hope to ensure the entrepreneurs, capital provider, community, and also the government to be aware on the importance of mudarabah concept in the pawah system on individual perspective. A few types of pawah systems that have been practiced may not all be sharia-compliant; however, by adapting mudarabah
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concept, the compliance of sharia can be measured. Pawah system indeed has the specialty and uniqueness in Islamic financial, as it was also used during the Prophet Muhammad S.A.W. period. Therefore, they have been practicing one of the principles of maqasid al sharia, which is to take care of the property and to guarantee peace and well-being of capital providers and entrepreneurs. The objective of this study is to analyze the similarities between pawah system and mudarabah concept, and it is found that the similarities between mudarabah concept and pawah system that it is a transaction between two parties involved, and the profit will be shared among those parties upon the agreed profit ratio. The next objective is how pawah system can be improved through mudarabah concept, which is answered in this study through the reintroduction of mudarabah concept through pawah system at an individual transaction level. Furthermore, the study recommends implementing the fixed-lock system and umbrella system to enhance the pawah system through the mudarabah concept. It has been demonstrated that mudarabah is an integral part of the pawah system. The use of pawah system by adopting mudarabah concept on an individual level of transaction has become an expectation of the researcher, as they have been practicing this in daily activity and aid in the use of the real pawah system through mudarabah concept. Hence, this can enhance transactions that are sharia-compliant. Transaction with full sharia compliance can avoid the riba, gharar, and maysir. The study suggests promoting acceptance of transactions among entrepreneurs, capital providers, communities, and government to collaborate for mutual benefits in the future. The mechanisms used are suitable and appropriate for the capital provider and the entrepreneur, where they need to be implemented immediately to ensure reintroducing mudarabah contract in the Islamic financial economy. The effort is not only beneficial to one party but to all entrepreneurs, capital providers, the community, as well as the government. Thus, all parties must work together and agree to continue this pawah system in future.
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Determinant Variables Behind Speed Limit Management, Driving Licensing Mechanism Improvement, and Automotive Sales’ Promotion Based on Braking Performance Don Gaspar Noesaku da Costa
Abstract Speeding is the factor that is usually associated with fatal accident. However, riders have the tendency to exceed their vehicle’s regulated speed. On the other hand, braking capability is believed to have an essential influence in traffic accident occurrences. Unfortunately, the braking capability has not been accommodated properly in the accident risk management, such as speed limit determination. This paper focusses on the possibility of developing speed limit determination based on rider’s braking capability. The parameters used in the analysis of the speed limit determination were the safety factor and the margin of safety due to the differences in braking capability. All the input data were collected based on a literature review. The study’s findings indicated that it is worthwhile to look into using riders’ braking skills, which could provide a minimum margin of safety as a basis for determining speed limits, as well as driving licensing and vehicle braking performance. The government, regulators, authorities, and producers need to improve the speed limit management, driving licensing mechanism, and vehicles’ decelerating tools. Keywords Braking capability · Driving licensing mechanism · Safety factor · Speeding behaviour · Speed limit
1 Introduction Riding a vehicle exceeding the regulated speed and/or in an inappropriate speed choice (speeding) is a risk factor for fatal accident [1, 2]. However, the high tendency of motorcyclist’s speeding behaviour and index fatality remains relatively constant. The consistent tendency of motorcyclist’s fatality index happens not only in Indonesia [3, 4] where motorcycles are their primary mode of transport, but also in Europe D. G. N. da Costa (B) Faculty of Engineering, Study Programme of Civil Engineering, Universitas Katolik Widya Mandira, Jalan San Juan No.1, Kupang, East Nusa Tenggara Province, Indonesia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_34
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Union countries [5]. It is predicted that the tendency would occur continuously, particularly in Indonesia, if the mobility and the safety performance are still unbalanced. The prediction was built on the previous report, which said that speeding behaviour was not only triggered by time saving [2, 6, 7], but also enjoyment of the sensation devices [7–9]. On the other hand, field observations revealed that very few speeding behaviours resulted in crash. A previous study at an un-signalised intersection reported that a risky situation occurred in every 5 min due to a critical crossing gap choice, while an incident occurred in almost every 10 min. The risky conditions and/or incidence occurred when there was no traffic management officer. Therefore, the number of risky events due to speeding was around 60 times/day or 1.800 times/month, and half of them ended up with incidence. When the data was compared with the number of accidents obtained from the annual accident report of the local police station for the last 5 years, it was discovered that there was around one accident/month. People in general believed that the number of accident was relatively low, so it might be assumed that the low accident frequency would lead to a negative perception of accident risk [4]. The negative perception arose due to riders being overconfident about their braking capability to avoid a fatal crash [7]. These phenomena indicated that mobility aspect (speed choice), braking capability, and accident risk should all be considered when determining the speed limits. Although it is obvious that braking capability could be improved [10] and speeding was the primary cause of fatal accident [1], speed limit determination has thus far been based solely on the effect of road function classification, traffic composition, and road environment characteristics [1, 2]. Meanwhile, the speed limit violence and/or the speeding behaviour imply that the regulated speed limit is assumed to be incompatible with the riders’ mobility needs. Therefore, this paper focusses on determining braking capability and speed limit that are suited not only for a minimum margin of safety criteria but also concurrent road user’s mobility needs, such as time travel. It is hoped that the minimum margin of safety is appropriate for riders’ braking capability and their trip purposes, so that the needs should be incorporated into the speed limit management guidance. Accordingly, previous studies have reported that novice braking capability could be increased by up to 2.09 m/s2 (Std. Dev. 1.12; max. 4,95) [10]. The finding confirmed the result of another previous research conducted by Bartlett et al. [11], who reported that the increase of braking capability was influenced by the types of braking and braking system (anti-lock braking system (ABS)). Furthermore, a 5 km/h reduction in speed could lessen the likelihood of a fatal crash by up to 20% [1]. Moreover, the braking distance equation proposed by AASHTO 2011 Edition revealed that braking force influenced the reduced impact speed. Therefore, it is thought that the actual margin of safety due to the differences in braking capabilities could be used as a basis for determining an appropriate speed restriction as well as improving riders’ braking capability in each study area. Implicitly, the use of margin of safety as a safety indicator has been started when AASHTO 2004 and 2011 Editions recommended the use of a reaction time of 1 s
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to determine a minimum stopping sight distance (SSD) at a particular road geometry and/or traffic conditions [12, 13]. In normal conditions, the reaction time was 2.5 s. The analogous result is that the margin of safety concept could also be used in a braking capability term because previous studies have reported that it could be greater than 4.5 m/s2 [14], such as 6 m/s2 [15] or even 7.72 m/s2 [10]. However, for a braking distance calculation device, the use of braking deceleration rate of 3.4 m/s2 to accommodate the variation in road surface conditions and braking capabilities of all riders was recommended [12], including older riders (above 65 years old) numbered by up to 4% of riders’ population in the United States of America. This was much different with the conditions in Indonesia as well as other developing countries. The predicted consequence is that the speeding behaviour occurs due to the incompatibility between the existing speed limit signs and riders’ mobility needs. To avoid crash, each rider should have an appropriate braking capability. Although braking capability could be increased, this aspect has not been considered to be the basis of accident risk management. However, although ABS has been introduced to increase vehicle decelerating performance, not every vehicle is equipped with such a tool due to its high installation cost. This study was thus undertaken to bridge this gap. Therefore, since adequate time and space are required to react and brake safely to avoid a crash, the risk indicator used was based on the stopping sight distance characteristics, and its management recommendation was based on speed choices and braking capability that fulfilled the criteria of minimum margin of safety.
2 Study Design (Method) The data was collected from the previous studies, including the daily favoured speed, perception reaction time, vehicle speed before braking (approaching speed), and braking deceleration rates due to engine brake force as well as braking force. In this case, all data were taken from the similar object studies or works, such as motorcyclist reaction time, their daily favoured speed choice, and their braking capabilities. Based on the data, a minimum SSD was calculated using Eq. (1). Equation (1) was built based on an assumption that before barking, riders would usually decrease their vehicle initial speed (V 0 ) using engine brake force or downshifting (a1 ) so that the braking distance was a function of a vehicle speed before braking or approaching speed (V 1 ), instead of a design speed, as recommended by AASHTO 2011 Edition. The value of decreased speed varied, depending on speed choice and gear transmission position [20] as well as the distance between the vehicle and the obstacle (the duration of downshifting) [16, 17]. V2 1 min SSD = 0.278 V0 ∗ t − a1 · t 2 + 0.039 1 2 a2
(1)
Equation (1) showed that a minimum SSD was a function of reaction and down V2 shifting distance 0.278 V0 ∗ t − 21 a1 · t 2 and braking distance 0.039 a12 , where
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since the downshifting process usually occurred instantly, so that the reaction time was very small. Hence, it was defined as the total time needed since riders recognised the presence of hazardous object and/or conditions, and then applied downshifting until start to brake. This minimum SSD model was different with the AASHTO 2011 Edition model, because the current model accommodated the effect of a decrease in approaching speed (V 1 ) due to the use of engine brake force (a1 ). Besides, the braking deceleration rate (a2 ) used was obtained from a hard braking capability, instead of a comfortable braking deceleration rate, as recommended by AASHTO 2011 Edition, i.e. 3.4 m/s2 . The use of different braking capability was because when road surface was dry, riders tend to exceed their vehicle speed above the regulated speed limit. This could be understandable as the speed limit sign was determined based on all riders’ braking capability, including the older riders (above 65 years old), on wet conditions. Subsequently, with the obtained minimum SSD, the accident risk could be predicted because the accident risk was a function of accident probability and its possible consequences [16, 18]. The accident probability arose when there was a hazardous object and/or situation. In this study, the hazardous situation was determined based on the safety factor (SF), i.e. a ratio of available SSD to minimum SSD. If the ratio was less than 1.0, then it was referred to as the presence of an accident probability. The smaller the safety factor, the higher the accident probability level, as stated in a Likert scale, i.e. at a range of 1–5 (from very low level to very high level). In the case of accident risk at an un-signalised intersection, the available SSD was determined based on the average critical crossing gap choices of the exiting-entering vehicles from-to a minor road [19]. Furthermore, according to the braking distance model, as can be seen in Eq. (1), the decrease of impact speed (V 2 ) for each braking capability level (a2 ) along the braking distance path (S) was simply calculated using the following equation: S=
V12 − V22 or V2 = a2
/
V12 − 2a2 S
(2)
This impact speed value was determined to be the basis of the accident consequences assessment. According to the curve correlation between the impact speed and fatal crash probability [1], if the impact speed was greater than 50 km/h, then the fatal accident probability was around 80%. Therefore, fatal probability was directly influenced by a speed choice, braking capability, and/or the distance between the vehicle and victims. According to those considerations, the speed management criterion was stated as the speed and braking capability, which suited to the achievement of a minimum margin of safety conditions. The margin of safety was calculated using Eq. (3). In this study, the term of MS was stated as the effort needed to increase the capacity of a safety system. Margin of safety = Safety Factor−1
(3)
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3 Result and Discussion 3.1 Reaction and Braking Distance Characteristics Previous studies found that motorcyclists usually passed through an un-signalised intersection at a speed range of 50–60 km/h. In addition, they also decreased their speed at around 8 km/h (mean 8; std. dev. 2,2; α 5%) with an average deceleration rate of 1.73 m/s2 [4]. Another study found that the deceleration rate for light vehicles due to engine brake force was between 0.8 and 1.6 m/s2 [20]. Furthermore, the relapse time due to reaction and downshifting process for motorcyclist who rode at 60 km/h in an expected conditions was 0.68 s [21], and motorcyclists’ maximum braking capability when riding at a speed range of 50–60 km/h in dry conditions was in average 7.72 m/s2 [10]. Moreover, in unexpected conditions, the reaction time was 1.35 times greater than in expected conditions. Table 1 indicates the difference of reaction time due to the differences in reaction and downshifting times. It was found that although the reaction and downshifting distance was not influenced by engine brake force, as shown in Fig. 1, it was thought that the reduced speed due to the engine brake force might decrease the approaching and impact speed as well as fatal crash probability [1], depending on the reaction and downshifting time or distance. Therefore, the different braking and shortened distances due to the differences in braking capabilities, the accident risk was different for each rider’s categories, as shown in Tables 2 and 3. The differences in braking capabilities might be influenced Table 1 The characteristics of reaction distance Speed (km/h)
Reaction and downshifting time (s)
Engine brake deceleration rate (m/s2 )
Current reaction and downshifting distance (m)
Reaction distance of AASTHO model (m)
Shortened distance (m)
60
2.5
1.73
36.3
41.7
5.4
60
2
1.73
29.9
33.4
3.5
60
1.5
1.73
23.1
25.0
1.9
60
1
1.73
15.8
16.7
0.9
60
0.5
1.73
8.1
8.3
0.2
Fig. 1 The effect of engine brake force to reaction and downshifting distance
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Table 2 The characteristics of braking distance Approaching speed (km/h)
Mean braking distances based on braking capabilities (m) Below average (4.5 m/s2 ) Moderate (6.0 m/s2 )
Above average (7.72 m/s2 )
32
8.9
5.2
5.2
42
15.3
11.5
8.9
52
23.4
17.6
13.7
62
33.3
25.0
19.4
Table 3 The difference of shortened distance due to differences in braking capability Speeds (km/h)
Min. SSD* (m)
Shortened distances (ShD) (m)
V0
V1
1
2
3
1–2**
2–3
1–3
70
62
46.1
37.8
32.3
8.3
5.5
13.8
60
52
34.4
28.5
24.6
5.9
3.9
9.8
50
42
24.3
20.5
18
3.8
2.5
6.3
40
32
16
13.8
12.3
2.2
1.5
3.7
1 = riders below average braking capabilities category (4.5 2 = moderate (6 m/s2 ), 3 = above average (7.72 m/s2 ) ** = the different SSDs between riders with below average and moderate braking capabilities, and so on *
m/s2 ),
by speed choices, distance to obstacle, vehicle braking system, and riding experience (riding frequency and/or duration of riding) reflected in their types of braking. Subsequently, by using a reaction time of 0.68 s and an engine braking deceleration rate of 1.73 m/s2 as well as varying braking deceleration capabilities (riders with a below average, average, and above average braking deceleration rates of 4.5 m/s2 , 6 m/s2 , and 7.72 m/s2 , respectively), the minimum SSD was calculated based on various speed choices (40–70 km/h). Table 3 shows the varying shortened distances due to the differences in braking capabilities. The awareness of braking capabilities, represented in the believing of avoiding crash ability due to their braking capabilities (56%), was predicted to be the triggering factor of riders’ speeding behaviour [4].
3.2 Accident Risk As previously mentioned, accident probability was defined to be the ratio of an available SSD to a minimum SSD, while its consequence was determined based on the impact speed values. For an un-signalised accident risk cases, the available SSD was stated as an average critical crossing gap choices, i.e. approximately 20 m [4]. Therefore, when the exiting and entering crossing activities occurred concurrently,
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traffic and geometry delays increased, potentially slowing the crossing speeds. Consequently, if the approaching speed of the upcoming vehicles was 50 km/h average, then only riders in the moderate and above average braking capability categories, i.e. 6 m/s2 and 7.72 m/s2 , respectively, had the possibilities to avoid crash (SF ≤ 1.0), as shown in Table 4. Besides, based on the given margin of safety, to avoid crash riders in the below average capability category should increase their braking capabilities by braking 4,5 25% from 6,0 − 1 or 1.5 m/s2 (from 6.0 to 4.5), to obtain a shortened distance by 4.4 m (from 18% × 24.3). On the other hand, a previous study reported that a decrease in speed of 5 km/h could reduce a fatal crash probability by up to 20% [1]. Therefore, from the results of simulation, it was found that the reduced speed of 8 km/h due to a deceleration rate of 1.73 m/s2 [4] gave a possibility to novice riders to utilise their maximum braking capabilities so that it could reduce the impact speed at a range of 10–15 km/h, depending on the predicted crash points (braking distance) as shown in Fig. 2. A prior study, on the other hand, reported that riding experience, particularly involvement in an incidence, was a triggering factor of speeding behaviour [9]. Based on the experiences, riders tended to increase their acceptance level of risk. The risk tolerance was indicated from their believing in avoiding crash ability due to their braking capabilities [7]. Table 4 Safety factor and margin of safety for various speed choices Speed (km/ h)
Min. SSD*
CGA
V0
V1
1
2
3
70
62
46.1
37.8
32.3
60
52
34.4
28.5
24.6
50
42
24.3
20.5
40
32
16
13.8
Safety factor*
Margin of safety*
1
2
3
1
2
3
20
0.43
0.53
0.62
−0.57
−0.47
−0.38
20
0.58
0.70
0.81
−0.42
−0.30
−0.19
18
20
0.82
0.98
1.11
−0.18
−0.02
0.11
12.3
20
1.25
1.45
1.63
0.25
0.45
0.63
Fig. 2 Effect of deceleration to braking distance and impact speed
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However, this perception may not be correct because earlier research found that braking deceleration varied greatly, ranging from 4.5 to 7.72 m/s2 [10, 14, 15]. In addition, it is thought that most of the riders had inadequate information about their actual maximum braking deceleration rate. As a result, a perception cannot be employed as a risk trigger variable and/or accident risk management parameter. Rather, it must be empirically evaluated using an experimental model.
3.3 Resume Regardless of the needs of an empirical experimental model development, the results of this study showed that for a daily favoured speed of 60 km/h, an average reduced speed of 8 km/h due to a deceleration rate of 1.73 m/s2 and the use of hard braking capabilities might provide an average shortened distance of 9.7 m (Fig. 3) and reduce the impact speed as well as fatal crash probability by 5–10 km/h (Fig. 2) and 20–40%, respectively, which was in accordance with a previous study [1]. Therefore, riders’ perception such as a believing that their braking capability could avoid them from a fatal crash was only true as long as they had a minimum braking capability, which was suited to each speed choice as shown in Table 4, and vice versa. However, a prior study discovered that, of the 82% of riders who usually exceeded their vehicle speed above their daily favoured speed, 41% selected it for time saving and 19% for a sensational seeking device [7]. The consequence was clear, i.e. those mobility and enjoyment needs should be balanced with their abilities to avoid crash.
Fig. 3 The effect of deceleration rate to the minimum SSD and impact speed
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The result of this study strongly indicated that the balancing factor was the braking capability. From the traffic policy stand point (government), it is worthwhile to consider improving speed management guidance, in accordance with the spirit of the second pillar of the Indonesian National Road Safety Master Plan of 2011–2035 [22]. From the institutional perspective (regulators and authorities), improving riders’ braking ability during the driving licensing testing is essential. Finally, from the automotive business perspective (producers), it is necessary to deal with a reasonable cost for safety vehicles (equipped with the ABS technology).
4 Conclusion The result of this study strongly indicated that the impact speed obtained from a reduced speed during downshifting could reduce the impact speed and fatal crash probability by 5–10 km/h and 20–40%, respectively, suggesting that the use of braking capability should be considered a mandatory variable or criterion in the accident risk management, particularly in a speed limit determination. In addition, since braking ability could be improved, it is recommended (1) to publicise the role of braking system manufacture in producing shorter braking distance by introducing and promoting ABS in all types of vehicles and (2) to improve the driving licensing mechanism by introducing a proper method for increasing braking ability.
References 1. GRSP.: Speed management: a road safety manual for decision-makers and practitioners. Global Road Safety Partnership, Geneva, Switzerland (2008). 2. DaCoTA.: Speed and speed management (2013). www.dacota-project.eu. 3. Susilo, Y. O., Joewono, T. B. & Vandebona, U.: Reasons underlying behaviour of motorcyclists disregarding traffic regulations in urban areas of Indonesia. Accid. Anal. Prev., 75 (2015). https:/ /doi.org/10.1016/j.aap.2014.12.016. 4. da Costa, D. G.N., Malkhamah, S. & Suparma, L. B.: A systematic approach in developing an accident risk reduction scheme. 6th International Annual Engineering Seminar. 13–18 (2016). 5. Joshi, S.: Understanding risk taking behaviour within the context of PTW riders. Paris, (2012). 6. Schroeder, P., Kostyniuk, L. & Mack, M. 2011 National survey of speeding attitudes and behaviours. Washington DC (2013). 7. da Costa, D. G.N., Malkhamah, S. & Suparma, L. B.: Motorcyclist risk taking behaviour. Proceeding of the 19th International Symposium of FSTPT, Islamic University of Indonesia, 11–13 October 2016, 77–85 (2016). 8. Wong, J. T., Chung, Y. S. & Huang, S. H.: Determinants behind young motorcyclists’ risky riding behaviour. Accid. Anal. Prev., 42(1), 275–281 (2010). https://doi.org/10.1016/j.aap. 2009.08.004. 9. Chen, C. F. & Chen, C. W.: Speeding for fun? Exploring the speeding behaviour of riders of heavy motorcycles using the theory of planned behaviour and psychological flow theory. Accid. Anal. Prev., 43(3), 983–990 (2011). https://doi.org/10.1016/j.aap.2010.11.025.
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10. Winkelbauer, M. & K. Vavryn, K.: Braking performance of experienced and novice motorcycle riders. Results of a Field Study (2015). 11. Bartlett, W., Baxter, A. & Robar, N.: Motorcycle braking test: I.P.T.M. data through 2006. Accid. Reconstr. J., July–August, 19–21 (2007). 12. AASHTO.: A policy on geometric design of highways and streets, 2011 6th E. Washington DC: American Association of State Highway and Transportation Officials, (2011). https://doi. org/10.1029/2004JC002361. 13. Elizer, M., Gresham, P. & Smith, P.: 2011 AASTHO Green Book (2012). 14. Fambro, D., Fitzpatrick, K. & Koppa, R.: NCHRP report 400: Determination of stopping sight distance. Washington DC: National Academy Press (1997). 15. Malkhamah, S., Tight, M. & Montgomery, F.: The development of an automatic method of safety monitoring at pelican crossing. Accid. Anal. Prev., 37(5), 938–946 (2005). https://doi. org/10.1016/j.aap.2005.04.012. 16. da Costa, D. G.N., Malkhamah, S. & Suparma, L. B.: Use of the safety factor and margin of safety in motorcyclist accident risk management. Int. J. Technol., 4, 737–750 (2018). 17. da Costa, D. G.N., Malkhamah, S. & Suparma, L. B.: Use of systematic approach in accident risk analysis for motorcyclists: A conceptual idea, 50(5), 607–623 (2018). https://doi.org/10. 5614/j.eng.technol.sci.2018.50.5.2. 18. Nassar, S. A.: Integrated road accident risk model (ARM). University of Waterloo, (1996). https://doi.org/10.3102/00346543067001043. 19. da Costa, D. G.N., Malkhamah, S. & Suparma, L. B.: Accident risk management strategy at un-signalized intersection. E3S Web of Conferences, 76, (2019). https://doi.org/10.1051/e3s conf/20197603011. 20. Lee, J.: Vehicle inertia impact on fuel consumption of conventional and hybrid electric vehicles using acceleration and coast driving strategy vehicle inertia impact on fuel consumption of conventional and hybrid electric vehicles using acceleration and coast driv. Virginia Polytechnic Institute and State University (2009). https://doi.org/10.4271/2009-01-1322. 21. Davoodi, S. R., Hamid, H., Pazhouhanfar, M. & Muttart, J. W.: Motorcyclist perception response time in stopping sight distance situations. Saf. Sci., 50(3), 371–377 (2012). https://doi.org/10. 1016/j.ssci.2011.09.004. 22. Pemerintah Republik Indonesia.: Rencana umum nasional keselamatan (RUNK) jalan 2011– 2035. Jakarta (2011). https://doi.org/10.1017/CBO9781107415324.004.
Mapping Sustainability Risk of Sarong Supply Chain: Evidence from SMEs Industrial Cluster in Indonesia N. A. Mahbubah, M. Nuruddin, S. S. Dahda, D. Andesta, E. Ismiyah, D. Widyaningrum, M. Z. Fathoni, M. D. Kurniawan, A. W. Rizky, E. D. Priyana, Moh. Jufriyanto, Hidayat, and Y. P. Negoro
Abstract The ability to adapt to a turbulent business climate needs to be maintained to sustain business continuity. Sarong, one of the traditional clothing products, has been recognised as one of the national competitive advantages in terms of entry. The majority of sarong business operators belong to the category of small and medium enterprises. Establishing a sarong industry cluster is one of the government’s strategies to improve business continuity and elevate SME entrepreneurship. The rapid business fluctuations and the many actors involved in the sarong business process require a comprehensive approach to distinguish business risks along the sarong industry supply chain. This study aimed to map the sustainability risks along the supply chain of the sarong business process. Supply chain operations reference was used as a research approach. Risk events were identified based on planning, sourcing, manufacturing, shipping and return factors. Seventeen respondents were involved in this study, and the data was collected from January to June 2022. The classification of risk agents based on people, planet and profit sustainability was mapped. The results of this study identify the entities along the supply chain upstream, midstream and downstream of the sarong industry cluster. The results also identified 42 potential risk events and 22 potential risk agents. Social factors ranked highest as the cause of risk, followed by economic and environmental factors along the supply chain of the sarong industry. Keywords Risk · SCOR · Supply chain · SMEs · Sarong
N. A. Mahbubah (B) · M. Nuruddin · S. S. Dahda · D. Andesta · E. Ismiyah · D. Widyaningrum · M. Z. Fathoni · M. D. Kurniawan · A. W. Rizky · E. D. Priyana · Moh. Jufriyanto · Hidayat · Y. P. Negoro Industrial Engineering Department, Engineering Faculty, Universitas Muhammadiyah Gresik, Jl. Sumatera 101 GKB, Gresik, Jawa Timur, Indonesia 61121 e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_35
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1 Introduction Business sustainability with regards to profit, planet and people has been a challenge for enterprises of varying sizes, ranging from micro and small to medium and large [1, 2]. Maintaining profit while sustaining the business’s social and environmental aspects is challenging and contains complex adaptive problems [3, 4]. Developing countries, in nature, have drawbacks regarding sustainability practices through the business supply chain [5]. However, enterprises in developing countries also conduct best practices in terms of sustainability practices [2, 6]. Like many developing countries worldwide, Indonesia has been widely dependent on small and medium-sized enterprises in providing job availability and entrepreneurs [7]. SMEs in nature have limited resource availability. This business is experiencing problems in the supply chain. Supply chain complexity can affect SMEs’ upstream and downstream supply chains. In addition, SMEs in Indonesia have also utilised the Internet of Things as a digital technology platform, even though they are still in the infant stage [7, 8]. Collaboration between stakeholders and government initiatives are the primary keys to the success of SMEs in Indonesia in transferring digital technology [9]. Sarong as a traditional clothing product has been recognised as one of the national competitive advantages. Small and medium enterprises are well known among sarong business operators. Establishing the sarong industrial cluster is one of the government’s strategies to enhance business continuity. With a superior product empowerment programme in every village, the government has launched a sarong industry cluster in Gresik and two other areas in East Java. Gresik is one of the regencies located in East Java Province, which is famous for the tradition of making sarong using Non-Machine Weaving Tools (ATBM). Sarong products from Gresik have a local and international market share. The demand for sarong is not only from within the country but also from abroad, which has increased significantly. The foreign market share is the destination market because it has a significant economic added value. Even though the sarong industry cluster in Gresik has received facilities and assistance from the government, the presence of the industrial cluster is still at an early stage. Limitations in recruiting human resources result in unskilled labour, lack in product quality and less awareness in occupational safety and health. Another problem identified is complaints from the neighbours around the industry related to the sharp scent in the yarn dyeing process and dye waste resulting from the dyeing process. There is currently no treatment for the SME of sarong weaving for waste. So, the liquid waste from the dyeing process is only disposed of in the sewer. The results of the Environmental Agency lab test regarding textile dye waste for woven sarong SMEs are explained as follows. The waste resulting from the dyeing process of the Sarong Weaving UKM contains several test parameters that exceed the standard limits of the Environmental Impact Management Agency (BAPEDAL), including BOD levels of 1222 mg/L, COD levels of 2560 mg/L, TSS levels of 105 mg/L, for
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Cr levels. The total is less than the MLD (Method Limit Detection) as the levels are too low, so they cannot be detected. In contrast, the total ammonia levels are 10 mg/L, and the M/L levels are 4.1 mg/L. These problems are complex and interrelated in the industrial supply chain. Each problem has the potential for loss. In other words, they always create a risk in every process. To sustain the uncertain business environment, business owners must therefore implement supply chain risk management. This study aimed to map sustainability risks along the supply chain of the sarong business process. Since the early 2000s, supply chain risk management has been a popular topic of discussion in the field of supply chain management [6]. The development of supply chain risk identification is not limited to the risk of economic factors [10, 11]. However, it has progressed in examining the risks of social and environmental factors [10, 11]. Sustainability risk is a risk classification approach based on the agenda of sustainable development goals by the United Nations [5]. The development of other triple bottom line implementations does not only occur in developed countries but has experienced a shift in how the triple bottom line is implemented in developing countries [2]. Furthermore, green supply chain risk management is a science that is developed after profit sustainability and is then continued with social sustainability to become an approach to managing a sustainable business [6, 11, 12]. Textile and apparel is an industry that involves chemicals and large amounts of human resources [1, 4]. The shift in the location of the business was originally from developed to developing countries. Sustainability practices in the textile and apparel industry have become consumers’ focus, especially consumers from developed countries [13, 14]. Previous studies have mapped the identification of risks along the supply chain, for example, in the aquaculture, textile, apparel and service industries [13, 15, 16]. The implementation is not limited to the developed countries only but has also penetrated developing countries and various business scales. The ability of a business to map business risks in the supply chain stream has been proven to impact formulating strategies to minimise business risk positively. The identification of risks along the supply chain of an industry can be classified into various categories. The first category is the classification of risk identification based on internal and external factors. Supply Chain Operation Reference (SCOR) is one approach used in determining risk factors along the supply chain flow [17]. Green Supply Chain Operation Reference (GSCOR) has been further developed in risk identification by adding environmental factors other than economics as a factor to identify events and risk causes [18]. Managing sustainability risks along the industrial supply chain has been transferred from big companies to small and medium-scale businesses [9, 10, 19]. SMEs have limitations in the availability of resources; however, empirical evidence shows that incorporating social and environmental factors has positively impacted and elevated business profit [2, 19]. Risk mapping based on social and environmental factors other than economic factors in developing countries is one of the types of research to fulfil the empirical evidence of the existing research. Although the development of supply chain risk identification has been mapped in previous studies, no robust method can be used as a reference for risk mapping by considering the sustainability factor. This study
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offers a novelty by adapting the GSCOR in risk classification based on visualisation of an industry’s supply chain. The real-world case of this research study is one of the novelties in adding business sustainability practices in small and medium-sized enterprises.
2 Material and Method The subject of this study was a cluster of SMEs in Sarong, located in Gresik city, East Java Province, Indonesia. The seventeen respondents included ten SME owners, three industrial cluster organisation administrators, two local government officers and two experts. The data collection was based on a purposive sampling approach. The respondents in the study fit the category of experts in their respective fields. The data was collected from January to June 2022. The stages of this research were divided into four. In the first stage, a walk-through survey was conducted in several companies that were parts of the sarong industry cluster. Furthermore, data and information from the stakeholders of sarong industry were verified. This activity resulted in a visualisation mapping of the sarong supply chain configuration and classifying actors involved along the sarong supply chain streams. The second stage was determining environmental, economic and social sustainability criteria using SCOR [16]. Determination of risk events and risk agents based on SCOR was also carried out based on empirical studies conducted by Pailin et al. [15] and Karningsih et al. [16]. Brainstorm results with selected respondents were then used to map the risk events and agents. The last stage was to identify the relationship between risk events and agents based on the classification of three sustainability criteria: profit, planet and people sustainability. The mapping of the risk identification system was then analysed on how to implement the sustainability practices along the supply chain of the sarong industry cluster in a developing country.
3 Results and Discussion 3.1 Sarong Supply Chain Configuration The configuration of the sarong industry supply chain is illustrated in Fig. 1. The sarong industry supply chain configuration generally consisted of upstream, midstream and downstream supply chains. Furthermore, there were four suppliers’ entities on the upstream. The sarong supply chain configuration consisted of three parties: upstream, midstream and downstream. Furthermore, the upstream supply chain consisted of raw materials distributors and water supply from public water in three stages. The first stage was the stage for making patterned yarns as weft. This process was related
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Manufacture
Upstream
Dyeng yarn
Spinning
drying
Downstream
binding
Drawing patterns
Coloring patterns
Yarn suppliers Put in skoci to spinning pattern yarn
Chemical dye suppliers
Winding
Loosing tied
Drying
Basic dyeing
Binding
Distributors Dyeng yarn
Sewing
Plastics stickers, and starch suppliers
Drying
Spinning
Quality Control processing
Washing
Labelling and wrapping
Pressing
Cleaning
Drying
Ironing
Big-sized Apparel Enterprises
Weaving 1 Weaving 2
Water supliers
Middlemen Finishing
Fig. 1 Sarong supply chain configuration
to thread arranged horizontally, which converted the width of the fabric. The weft stage started with colouring, drying, spinning, binding, drawing patterns, colouring patterns, tying, basic colouring, opening ties, winding and spinning yarns. After that, the second process was making bum or warp threads, namely threads arranged vertically, which would become the length of the fabric. The bum was used as the basis of the woven sarong. After finishing the weaving, the third stage was the sewing process. After sewing, the sarong was sent to the quality control process and was washed, dried, ironed and pressed. After that, it was labelled and wrapped. The downstream supply chain consisted of three entities: distributors, intermediaries and big-sized sarong enterprises.
3.2 Risk Events and Risk Agent Identification The results of the brainstorming with the participants, i.e. the stakeholders involved in the sarong industry were then tabulated in the form of risk events in Table 1. The code numbering used a nominal data scale, and there was no value or ranking of the enumeration in each code. For example, code E1 was the first sequence of potential risk events. Table 1 shows that the total number of potential risk events was 42. The code number E started from number 1 to number 42. Breakdown risk events were divided into five SCOR categories: plan, source, make, delivery and returns. Furthermore, 7 potential risks were identified in the plan category, 8 potential source risks were identified, followed by the make category with 18 risk events. Furthermore, the total number of categories of delivery and returns was five for the former, followed by
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Table 1 Risk events No
Risk event
Code
Plan 1
Error planning raw materials and the amount of the budget E1
2
Unscheduled purchase of raw materials
E2
3
Determining the number of raw materials to be purchased was not precise
E3
4
Method of selecting raw materials did not comply with environmental requirements
E4
5
Unpredictable number of productions
E5
6
Sudden changes in production planning
E6
7
No standardisation in recruitment planning and employee criteria
E7
Sudden changes in the prices of raw materials and manufactured goods
E8
Source 8 9
Supplier delays in the delivery of raw materials
E9
10
Mismatch in the delivery of raw materials
E10
11
The lack of environmental performance-based supplier selection criteria
E11
12
The difference in the quality of raw materials between ordered and delivered
E12
13
Supply of raw materials was obstructed
E13
14
No information on raw materials that harmed humans and the environment
E14
15
Price inclined by suppliers without prior notice
E15
Make 16
Employees did not obey work rules
E16
17
Employee salaries did not match regional minimum wage standards
E17
18
Inadequate employee skills
E18
19
Dirty and dusty working conditions
E19
20
Employees were not included in workers’ insurance plan according to government regulations
E20
21
Employees did not use personal protective equipment
E21
22
End-goods did not meet quality standards
E22
23
The delay in processing was more than the standard three days
E23
24
The production process was delayed because the thread breaks during the weaving process
E24
25
Wage payment system based on the amount of piecework
E25 (continued)
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Table 1 (continued) No
Risk event
Code
26
The quality of the dye was not constant
E26 E27
27
Yarn density level was not up to standard
28
There was no standardisation of waste management due to E28 the impact of silk yarn fibres
29
There was no standard operating procedure for treating chemical waste resulting from the colouring process
E29
30
The length of the sheath was not up to standard
E30
31
The process of implementing non-standard work between employees
E31
32
The amount of dye was not suitable
E32
33
The disposal of dyeing process waste did not comply with environmental standards
E33
34
Exposure to chemicals caused side effects of respiratory problems
E34
Delivery 35
Fictitious orders affected delivery delays
E35
36
Late payment of goods by distributors and middlemen
E36
37
Delivery delay during peak season
E37
38
Product delivery miscalculation to customer
E38
39
Delay in delivery due to damage during logistics process
E39
Return 40
Return of raw materials that did not meet the criteria to the E40 supplier
41
Customers returned the goods due to differences from the specifications
E41
42
Non-standard procedure on return product
E42
three for the latter. In the next stage, the results of risk agent identification are shown in Table 2. Table 2 shows the twenty-two risk agents identified from the brainstorming session with the sarong industry stakeholders. In addition, the risk agents used a nominal scale code A. Overall, there were code scales of A1–A22 following the number of risk agents.
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Table 2 Risk agents No
Risk agent
Code
1
Failure to forecast production costs and the number of production materials due to not applying the forecasting method
A1
2
Uncertainty in the number of demands
A2
3
The sudden request for end goods by distributors and middlemen
A3
4
Broken production equipment
A4
5
Limited skilled labour
A6
6
Raw materials depended on a limited number of suppliers
A7
7
There were no contracts and criteria in the selection of suppliers
A8
8
Lack of supervision of the production process
A8
9
Human error
A9
10
Disobedient workers
A10
11
Workers did not conduct occupational health and safety practice
A11
12
Limited numbers of personal protective equipment availability
A12
13
There was no environmental audit from the government agency
A13
14
There was no occupational health and safety audit from the government agency
A14
15
There was no regulation for SMEs in managing waste treatment
A15
16
There was no occupational health and safety training for SME employees
A16
17
There were no regulations for SMEs in implementing sustainability
A17
18
Peak demanded due to seasonal factors
A18
19
There was no company policy regarding eco packaging
A19
20
The employees did not aware of the dangers of waste in the production process
A20
21
The company did not implement an environmental management policy
A21
22
There was no requirement regarding sustainable product from overseas buyers
A22
3.3 Supply Chain Risk Identification System Based on the results of the identification of risk events and risk agents, the next step was to identify risk factors by adapting the SCRIS approach. Figure 2 illustrates the results of the SCRIS map with three categories: people, planet and profit sustainability. The relationship between risk events and risk agents was a cause–effect relationship.
3.4 Discussion The supply chain visualisation of the sarong industry cluster can be seen in Fig. 2. Furthermore, there were three streams and entities involved the upstream, midstream and downstream. Suppliers of yarn, chemical dye, water, starch and packaging were
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Economy
E1
E2
E3
E5
A3
A2
A1
E6
E7
E8
E9
A4
E10
E11
A6
E12
E13
E15
A7
E16
E21
E22
E23
A8
E25
E26
E27
A18
E30
E35
E36
E38
E39
E40
E41
E42
Social
A5
E4
E7
E11
A9
E14
E15
E16
A10
E17
E18
A11
E19
E20
E21
A12
E22
E23
A14
E25
E26
E27
A16
E28
E29
E30
A17
E31
E32
E33
A21
E34
E35
E36
A22
E38
E40
E41
E42
Environmental
A13
E4
E11
A15
E14
E15
A17
E17
A19
E19
E20
A20
E21
A21
E28
A22
E29
E33
E34
Sustainability classification A E
Risk Agent Risk Event
Causal link
Fig. 2 Supply chain risk identification system
upstream entities. Furthermore, the weaving and finishing production processes were parts of the manufacture. The weaving process using a non-machine loom created values for the sarong product. Furthermore, there were sarong distributors, intermediaries and large-scale companies producing sarong downstream. The results of this sarong supply chain visualisation mapping were in line with the research conducted by Taylor et al. [6], Nuss et al. [14], Karningsih et al. [16] and Warasthe et al. [20] in terms of the configuration of supply chain streams. The difference in the visualisation of the previous research was that the visualisation objects came from different industries and had different business scales from the objects observed in this research. In addition, the SCOR-based risk events mapping based on triple-bottom-line sustainability indicators were broken down as follows. The environmental risk event code identified in plan E4 shows non-compliance with environmental criteria such as social sustainability in the selection of raw materials, as well as with employee criteria in recruitment planning under code E7. The source activity identified E11 and E14 as parts of the planet criteria and E14 as social criteria. Furthermore, there were ten social criteria for the making process, namely E16, E17, E18, E19, E20, E21, E25, E29, E31 and E34. Meanwhile, E28, E29, E33 and E34 were included in the category of social factor in the risk event. In the delivery factor, there were three social risk events namely E35, E36 and E38. Finally, there was one category of social sustainability, namely E42. The results of the risk agents mapping showed that eight factors caused profit sustainability risk, namely A1, A2, A3, A4, A6, A7, A8 and A18. The 11 risk agents for social sustainability risk were A5, A8, A9, A10, A11, A12, A14, A16, A17, A20 and A22. The seven causes of risk based on environmental sustainability were A13, A15, A17, A19, A20, A21 and A22. The results of mapping risk events were in alignment with the research conducted in the aquaculture and textile industries in developing countries [6, 14–16, 20]. Although there were similarities with previous studies, the results of risk mapping in this study had differences in the classification of risk factors based on people, profit and planet sustainability because previous studies were only based on economic sustainability practice. The results of this study had business implications in terms
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of how sustainability practices are implemented in a prominent industrial cluster in a developing country.
4 Conclusion and Future Works The conclusion of this research is described in three points as follows. The potential risk events and risk agents were obtained from previous research and interviews with stakeholders. The SMEs sarong industrial cluster stakeholders were expert respondents in the efforts to confirm the potential risk events that were identified, as well as the addition of several potential points that were also identified. From the results, there were forty-two potential risk events. As for the plan activities, there were seven identified risk events, eight identified risk events in source activities, ten in make activities, five in delivery activities and three in return activities. Out of the 42 risk events, seven activities were related to green factors. The absence of an environmental audit by a government agency (code A13), regulations for waste treatment training (code A15), specific guidelines for SMEs to implement social and environmental sustainability (code A17) and a company policy on ecofriendly packaging (code A19) are notable gaps. There are eight factors that pose a risk to profit sustainability, namely the failure to forecast production costs and materials (code A1) due to a lack of forecasting methods, uncertainty in demand for sarongs (code A2) and seasonal fluctuations in consumer demand (code A18). In addition, there are ten risk agents related to social sustainability practices, such as the limited availability of skilled labor (code A5), minimal supervision in the production process (code A8), human error (code A9), undisciplined workers (code A10), workers ignoring occupational safety and health (code A11), lack of personal protective equipment (PPE) availability (code A12), the absence of OHS audits from government agencies (code A14), no OHS system training for SME employees (code A16), lack of special regulations for SMEs to implement social and environmental sustainability (code A17), employees’ unawareness of waste dangers in the production process (code A20) and no requirements for sustainable product information from overseas buyers (code A22). This study was the initial stage of the main framework to mitigate the supply chain risk of the sarong industry cluster based on a sustainability practices approach. The limitation of this study was that there was no stage for calculating the risk values and for assessing the mitigation actions to eliminate the risks based on social, environmental and sustainable practices in developing countries such as Indonesia. Future works can focus on risk assessment in each sustainability category and determine the best mitigation strategy to eliminate uncertainty along the supply chain of the sarong industry in a developing country such as Indonesia.
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Audience Value of Social Media Influencers Tam Y. L. Adeline and Nur Thara Zainal
Abstract The rapid growth of influential marketing prompts further research to understand the importance of social media influencers (SMIs) towards social media users. SMIs utilise the self-branding strategy to create a distinctive public identity. It is believed that the development of SMIs’ personal branding is influenced by the social media audiences’ perception towards their identities. Therefore, this study aims (i) to explore the perceived values of SMI that are appreciated by the audiences, and (ii) to determine SMI values that are most important to social media audiences. This was achieved through a quantitative research guided by the Theory of Consumption Values. The data were collected from 82 respondents via an open-ended questionnaire and analysed using content analysis. The results identified six value components, namely, functional, emotional, social, epistemic, personal (conditional) and aesthetic values. It was found that most social media audiences highly appreciate the personal, aesthetic and emotional values of SMIs over other value components. This study also proposed a user-perceived value model that is relevant to understand SMIs and provides theoretical and practical implications for both brand marketers and content creators on social media. Keywords Perceived value · Social media influencer · Digital marketing · Theory of consumption value
1 Introduction Influencer marketing has been growing rapidly in the past decade and recorded a significant increase in revenue from merely $1.7 billion in 2016 to approximately $16.4 billion in 2022 [1]. Such trend suggests that more brand marketers are willing T. Y. L. Adeline (B) · N. T. Zainal Universiti Malaysia Sabah, Kota Kinabalu, Sabah, Malaysia e-mail: [email protected] N. T. Zainal e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_36
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to spend a substantial budget on influencer marketing to reach their target market. Influencer marketing is a type of social media marketing that involves endorsements and product placements from social media influencers (SMIs). Also known as social media celebrity or online micro celebrity, these SMIs become famous through selfbranding strategy on social media and play a significant role in inducing consumers’ purchasing behaviour, much like traditional celebrities do with their fans [2]. A keyword to note from the concept of influencer marketing is self-branding, which is the process through which people create a distinctive public persona for financial gain and/or cultural capital [2]. According to Gorbatov et al. [3], one of the core features of self-branding is person-centric in which a personal brand is built around a set of individual characteristics, such as attributes, values and beliefs, that are unique and desirable by the target audience. They stated that social media audiences’ perceptions of influencers’ identities are crucial in developing SMIs’ personal branding. Their identities are also reflected in the contents generated and are constantly posted on social media to gain visibility and popularity [4]. Many believe that popular and well-known SMIs are often persuasive, recognised, and admired for their styles and opinions [5]. They provide marketers with the opportunity to effectively promote products online. To create a successful SMI-product partnership, marketers needed to select SMIs who are attractive, likeable and compatible with the advertised brand in the eyes of the audiences [5]. Knowing how social media audiences perceive SMIs’ identities will thus assist marketers in choosing the most suitable SMIs for their products. Similar to commercially branded products, SMIs who practise the concept of selfbranding also deliver values to the target audiences, who will then appreciate the values when consuming the SMIs’ creative contents [4]. To attract a larger audience, it is crucial for SMIs to provide interesting contents by understanding consumers’ perceived value through marketing and consumer research. To date, there is limited research on consumer value in the SMI context, with the exception of Lou and Kim [4] who reported on the importance of informative and entertainment values for content creation; however, only entertainment value was found significant in the study. Past studies [6–10] confirmed that SMI characterisations are important to social media audiences. Among the characterisations examined were trustworthiness [6– 9], attractiveness [6–8], authenticity [10], perceived expertise [6, 8], credibility [9] and social presence [11]. However, these studies only considered a few individual characterisations and overlooked the importance of identifying every significant SMI characterisation appreciated by audiences. This study, therefore, attempts to examine the perceived value of SMI that social media audiences, particularly those in Malaysia, considered to be important. The purpose of this study is (i) to explore the perceived values of SMI that are appreciated by the audiences, and (ii) to determine SMI values that are most important to social media audiences.
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2 Literature Review 2.1 SMI Characterisations SMIs extensively utilise the self-branding strategy to build a distinct persona that is perceived as important by social media audiences. The self-branding strategy allows SMIs to build and promote themselves in the same way that a brand of a marketed product does, in which each SMI is a collection of attributes that are offered to the consumers [12]. These attributes are individual characterisations such as traits, values and beliefs that are presented in the SMIs’ social media contents. However, the success of SMI depends on the social media audiences’ perceptions of influencers’ identities [3]. Several past studies [4, 6–11] had examined SMIs’ characterisation, including trustworthiness, attractiveness, authenticity, perceived expertise, credibility, physical attractiveness and social presence. Trustworthiness is the degree to which the audiences believe that the SMIs’ claims are valid [6]. Karaila [7] pointed out that trustworthiness includes five traits, namely, dependable, honest, reliable, sincere and trustworthy. Meanwhile, perceived expertise is the SMIs’ level of perceived understanding, skills and knowledge [6]. Some SMIs may not have professional qualifications; however, they are still able to share certain information or knowledge in a subject area with the audiences. Additionally, SMIs’ credibility is crucial in determining the extent of their persuasive power [4]. Some researchers conceptualise credibility as a two-dimension construct, which consists of trustworthiness and expertise [4, 6]. SMIs’ expertise and knowledge of a subject will provide audiences with a favourable opinion towards a product whilst their trustworthiness will prompt the audiences’ belief in the information provided [4, 6]. This is in line with past studies which reported that trustworthiness, perceived expertise and credibility positively predicted audiences’ purchase intention [6, 8, 9]. Furthermore, authenticity refers to displaying some aspects of SMIs’ real personality [10]. Past studies found that authenticity is positively correlated with wordof-mouth and purchase likelihood of products endorsed by SMIs. This is because when interacting via social media, most audiences would feel more comfortable if they perceive a real person on the other end. Hence, the social presence of SMIs is important to the audiences. Whereas, social presence describes the degree to which media users perceive an SMI as psychologically present and intelligible [11]. It has been reported to be positively related with the trustworthiness and brand attitude of the audiences. Several researchers also suggest that the prominence of SMIs can be influenced by the aspect of attractiveness, particularly if they demonstrate traits like entertaining, likeable, confident and listen to feedback [7]; however, existing evidence on the notion remains inconsistent. For instance, attractiveness was found to positively impact word-of-mouth and purchase intention in Karaila [7] but insignificantly related to purchase intention in Koay et al. [8]. Meanwhile, Masuda et al. [6] pointed
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out that both physical attractiveness and social attractiveness positively influence the trustworthiness and perceived expertise of SMIs.
2.2 Consumer Value Marketing and consumer research posit that every product has its own value in the eyes of the users. Similar notion applies in influencer marketing where audiences (i.e. targeted users) will appreciate the SMIs’ values when consuming their social media posts. In this study, consumer value is defined as being ‘ultimately determined’ and ‘created’ by the ‘audiences’ during the consumption experience, thus exemplifying the value-in-use concept [13]. Studies in influencer marketing confirmed that consumers’ perceived value is positively related to audiences’ purchasing intention [14]. Consumer value is believed to be underlined by the Theory of Consumption Values and comprises the interrelated dimensions of perceived values, functional, emotional, social, epistemic and conditional values [15]. Functional value (FV), which can be determined from a product’s qualities (reliability, durability and pricing), is the perceived value for a product’s functional, utilitarian or physical performance [15]. Meanwhile, social value (SV) is defined as the perceived utility derived from a product’s ability to improve its association with one or more specific social groups and social self-concepts [15]. Whereas, the utility derived from feelings or various affective states that are either comforting or disturbing is referred to as emotional value (EV) [16]. Whereas, epistemic value (EPV) refers to a product’s capacity to arouse curiosity, provide novelty and satisfy a desire for knowledge [15]. Finally, conditional value (CV) arises from a specific situation or set of circumstances faced by a consumer [15]. Nevertheless, past studies [4, 9] have only tested two value dimensions, namely information value or information quality and entertainment value. Both studies examined the values against purchase intention, yet the results were inconsistent. Lou and Kim [4] found that both entertainment and information value are directly/indirectly related to purchase intention; however, it contradicts the findings by Saima and Khan [9]. On the other hand, Kowalczyk and Pounders [10] examined the effect of audiences’ emotional attachment and found that it is significantly associated with their word-of-mouth and purchase likelihood. This subsequently suggests that emotional value is also valued by audiences.
3 Research Methodology The investigation on audiences’ perceived values of SMI in this study was conducted through quantitative research using an open-ended questionnaire. The respondents were interviewed face-to-face in groups of five to ten, with each interview session
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lasting between ten and twenty minutes. Only two questions were asked: (1) ‘Who is/are the SMI they followed?’ and (2) ‘Why do you like him/her?’. Information regarding the respondents’ gender and age were also collected. The interviews focused on the second question to determine the respondents’ perceived values towards the respective SMIs. They were encouraged to use three words or phrases to express their perception. All responses were recorded and transcribed for further analysis. The respondents of this study were young adults who followed any SMIs. Purposive sampling was used to identify and recruit these respondents. The primary reason for recruiting young adults is that they are more likely to actively follow SMIs and view the contents published on their social media platforms like Facebook, Instagram, TikTok and YouTube as compared to older age groups. The interview data were collected from 82 respondents until it reached saturation. All data were analysed using content analysis and coded under the value dimensions. Values that were not part of the five value dimensions were categorised and coded as additional value dimensions. For example, the ‘aesthetic value’ dimension was created to reflect the SMIs’ physical attractiveness appreciated by the audiences.
4 Results and Discussions This study involved a total of 82 respondents whose age ranged between 20 to 30 years old and comprised 62% female and 38% male young adults. Six value dimensions emerged from the findings, namely, functional value (FV), emotional value (EV), social value (SV), epistemic value (EPV), conditional value (CV) and aesthetic value (AV). In this study, conditional value (CV) referred to the SMIs’ charismatic personal attributes that were appreciated by the audiences.
4.1 Conditional Value (CV) CV, which is a personal value in this study, represents a charismatic personal attribute of SMIs that audiences perceived as important and will strengthen their perception of other value dimensions. It captured the highest number of quotes from the audiences with 107 terms/phrases collected. Among the important terms used by the respondents to describe an SMI were humble (n = 26), hardworking (n = 12), independent (n = 7), kind (n = 7) and positive (n = 7). The unexpected results suggest that the audiences’ perception of SMI is not well understood. Further details of the findings are summarised in Table 1 and visualised in Fig. 1a. Nevertheless, limited studies [8, 17] have tested these attributes. For instance, Koay et al. [8] pointed out that confident is one of the traits of SMIs’ attractiveness. Meanwhile, Duffy and Pooley [17] concluded that SMIs’ bio should emphasise the traits of humble, hard work, skills and/or talent in achieving success in life. This
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Table 1 Audiences’ perceived value towards SMIs Emotional value
Conditional value
Aesthetic value
Terms/phrases
F*
Terms/phrases
F*
Terms/phrases
F*
Humble
26
Funny
23
Fashionable
8
Hardworking
12
Entertaining
11
Beauty (beautiful)
8
Independent
7
Comedian
3
Pretty
4
Kind (heart)
7
Relax
3
Body
2
Confident
6
Heart-warming
2
Positive
4
Intelligent
3
Determination
3
Smart
3
Generous
2
Brave
2
Total
107
Total
46
Total
28
Epistemic value
Social value
Functional value
Terms/Phrases
F*
Terms/Phrases
F*
Terms/Phrases
F*
Creative
8
Friendly
10
Cooking-skills
2
Inspiring
7
Informative
2
Motivating
4
Knowledgeable
2
Inspiration
2
Recipes
2
Workout
2
Total
22
Total
16
Total
18
Note Contains terms/phrases that were disclosed twice or more only F* —Frequency of terms/phrases disclosed
will subsequently reflect that their audiences are also concerned with hard work and personal intelligence as portrayed in one’s talent or skills. Besides, characterisations such as kind (heart), confident, positive, intelligent and determination are perceived as significant in self-branding [18].
4.2 Emotional Value (EV) EV is perceived as the second most important value dimension that is appreciated by audiences with 46 respondents disclosing terms/phrases related to emotion. It was found that most respondents preferred SMIs who are funny, entertaining and comedic. The finding is supported by Lou and Kim [4], Karaila [7], and Kowalczyk and Pounders [10] who reported that audiences appreciate emotional values, particularly
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Fig. 1a. Conditional value.
Fig. 1c. Aesthetic value.
Fig. 1e. Social value.
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Fig. 1b. Emotional value
Fig. 1d. Epistemic value.
Fig. 1f. Functional value.
Fig. 1 a Conditional value. b Emotional value. c Aesthetic value. d Epistemic value. e Social value. f Functional value. * Note All figures were developed using WordClouds.com
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comforting values such as fun, entertaining and relax, that would entertain them. Further details regarding the results are available in Table 1 and Fig. 1b.
4.3 Aesthetic Value (AV) Our results showed that the majority of respondents appreciated the AV dimension, particularly in terms of SMIs’ fashionable sense (f = 8) and physical attractiveness. This is in line with past research [6, 7] which reported that physical attractiveness, such as beautiful (f = 8), pretty (f = 4), and nice body (f = 2), are among the reasons that prompt audiences to follow an SMI. In addition, the findings suggest that audiences appreciate the fashionable sense of SMIs. Zietek [19] pointed out that visual language is important for creating unique SMI contents; hence, fashionable sense may contribute towards highly attractive contents. Further details regarding the results are presented in Table 1 and Fig. 1c.
4.4 Epistemic Value (EPV) A total of 22 respondents had disclosed values under the EPV dimension, which was concentrated into three terms, namely, inspiring or inspiration (f = 9), creative (f = 8) and motivating (f = 4). The term ‘creative’ is believed to reflect innovative and is supported by Huang et al. [20] who reported that innovation competency is indeed an important characterisation of SMIs. Gorbatov et al. [3] also pointed out that creative is one of the important skills required for self-branding and it can strategically turn SMIs’ competitive differentiation into compelling narrative and imagery in order to achieve personal success. The result is also consistent with Jin et al. [11] who posit that SMIs are the ‘sources of inspiration’, and hence, audiences expect them to bring inspiration to them. Meanwhile, both motivating and visionary have also been reported as among the characteristics found in personal brand [18]. Further details regarding the results are presented in Table 1 and Fig. 1d.
4.5 Social Value (SV) The results further revealed that SV is another dimension of characterisation appreciated by the audiences. Several respondents (n = 10) mentioned the word “friendly” to describe their main reason to follow an SMI. Such finding is unexpected because, to the best of the authors’ knowledge, no past studies to date have looked on the aspect of SMIs’ friendliness. Further details of the results are available in Table 1 and Fig. 1e.
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4.6 Functional Value (FV) The FV dimension had the lowest disclosed terms/phrases as evidenced by the respondents’ responses regarding cooking skills, informative, knowledgeable, recipes and workout, each was mentioned twice. Many audiences perceived FV as important and directly related to the SMIs’ contents. For example, audiences would expect that SMIs whose contents are focused on cooking to possess good cooking skills and recipes as opposed to the workout steps provided by SMIs who post contents related to physical activities. The finding is aligned with past studies [9, 11] advocating that SMIs serve as a source of information for their respective audiences and provide them with quality information within a specific area. Further details regarding the results are presented in Table 1 and Fig. 1f. This study also found that certain characterisations that were tested in past studies, such as trustworthiness [6–9] and authenticity [10], were not appreciated by the respondents. Hence, it is critical to understand SMIs’ values from the audiences’ perspective before testing the effectiveness of SMI on the audiences’ attitudes and behaviours. .
5 Theoretical and Practical Implications This study contributes to the influential marketing literature by adapting the Theory of Consumption Value to understand SMIs’ values from the audiences’ perspective. It addresses several gaps in the literature by examining the perceived value of audiences and identified six value dimensions. The findings also suggest that past studies have overlooked several important characterisations of SMIs whilst other important characterisations are not valued highly by many audiences. In marketing practices, marketers should know the value of every SMI perceived by audiences before deciding one that is most suitable for the product promotion strategy. The findings reported in this provide marketers with valuable insights and knowledge to understand SMI and make the best decision. Meanwhile, both new and existing SMIs also need to know their audiences’ expectations to be able to arrange the best self-branding strategy. This study can thus provide them with the necessary information to plan for their future self-branding strategy.
6 Conclusion More brand marketers are now willing to spend a substantial budget on influencer marketing. This study serves as a theoretical and practical contribution to the body of knowledge by providing valuable information and insight that can help SMIs to
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increase their efficacy and attract the audiences’ interest as well as for marketers to choose the right SMIs that can best benefit their promotions on social media. However, one limitation of this study is that the perceived values identified were not tested against the audiences’ attitudes or behaviours, which can be made as a focus in future research. Besides, some respondents might not disclose their actual reason for following an SMI due to recall biases, which might affect the findings. Thus, future research can explore other data collection methods (e.g. experiment, questionnaire) to gauge the most reliable data from the respondents.
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17. Duffy, B. E., & Pooley, J.: Idols of promotion: The triumph of self-branding in the social media age. ACM International Conference Proceeding Series, Part F1296 (2017). 18. Kondor, A., Takács, V., & Takács, I.: Empirical investigation of chief executive officers’ personal brand. Periodica Polytechnica Social and Management Sciences, 26(2), 112–120 (2018). 19. Zietek, N.: Influencer marketing: The characteristics and components of fashion influencer marketing (2016). 20. Huang, G. I., Liu, J. A., & Wong, I. A.: Micro-celebrity restaurant manifesto: The roles of innovation competency, foodstagramming, identity-signaling, and food personality traits. International Journal of Hospitality Management, 97(July), 103014 (2021).
Herb-Based Products and Entrepreneurship During the COVID-19 Crisis: A Systematic Literature Review and Research Agenda Asanah Asanah Radhi, Fadhilahanim Aryani Abdullah, Nur Amiera Zaidi, Rozidaini Mohd Ghazi, Nik Raihan Nik Yusoff, and Ikarastika Rahayu Abdul Wahab
Abstract COVID-19 first emerged in Wuhan, China, in late 2019 before spreading as a worldwide pandemic that resulted in millions of deaths. Those infected with the COVID-19 virus were reported to develop a mild to severe respiratory illness and recover without any special care. Some people believe that a specific natural product might be effective for treating COVID-19 based on the general concepts from previous experiments. Many herbs are thought to help treat illnesses, including the pandemic’s consequences, and enhance overall health and well-being. The linked literature concentrated on the impact of COVID-19 towards entrepreneurs in the herb-based products industry, government activities, support for the industry and the sector’s transition towards digitisation, novel concepts and fresh market approaches. Herb-products entrepreneurs face many obstacles, but the crisis may also present them with opportunities. Previous studies have demonstrated that COVID-19 can lead to dramatic improvements in the entrepreneurship of herb-based products, although further study is required to address unresolved questions. Keywords Herbs sector · COVID-19 · Crisis · Entrepreneurship · Herbal medicine A. A. Radhi (B) Faculty of Bioengineering and Technology, Universiti Malaysia Kelantan, Kampus Jeli, 17600 Jeli, Kelantan, Malaysia e-mail: [email protected] A. A. Radhi · F. A. Abdullah · N. A. Zaidi Faculty of Hospitality, Tourism, and Wellness, Universiti Malaysia Kelantan, Kampus Kota, Pengkalan Chepa, 16100 Kota Bharu, Kelantan, Malaysia R. Mohd Ghazi · N. R. Nik Yusoff Faculty of Earth Science, Universiti Malaysia Kelantan, Kampus Jeli, 17600 Jeli, Kelantan, Malaysia I. R. Abdul Wahab Faculty of Agro-Based Industry, Universiti Malaysia Kelantan, Kampus Jeli, 17600 Jeli, Kelantan, Malaysia © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_37
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1 Introduction The proclamation of the COVID-19 pandemic in March 2020 and the subsequent worldwide lockdown put in place to handle it has significantly impacted businesses in several sectors. Pandemics are not a recent occurrence that solely affects modern societies; they have been documented since antiquity [1]. Like other economic sectors, the recent COVID-19 pandemic has negatively impacted global entrepreneurship and the economy. The establishment of tight quarantine restrictions has significantly curtailed the economic operations of many nations in the near term with high unemployment rates and company failures being propounded as the long-term impacts of the pandemic [2]. Despite the fact that COVID-19 dramatically affects the global economy, regional and international laws, human social interactions, and mentalities [3], several experts are of the opinion that it presents some significant opportunities for business owners to be inventive in their fields. Previous studies claimed that the size and duration of the COVID-19 crisis have created unique difficulties for businesses in adjusting to the new environment, primarily in handling uncertainty [4]. Thanks to the pandemic, entrepreneurs that make products using herbs now have an opportunity to satisfy not only the needs of local customers but also those of international corporations. While the COVID-19 crisis undoubtedly led to a challenging situation, it also provides new business opportunities for those who manufacture herbal products. The purpose of this research is to investigate the entrepreneurship of herb-based goods during the COVID-19 pandemic outbreak. The aim is to broaden the current knowledge of COVID-19’s implications on the herb-based goods industry, which is currently narrow. This comprehensive assessment of the literature also adds to the academic and policy conversation on the new trends and problems facing the herb-based goods industry and entrepreneurship during times of uncertainty. Because the field of study is ongoing and extensive, this literature evaluation contributes aids in looking back and forth by setting a future research agenda. The second section of this paper outlines the theoretical foundation of the relationship between COVID-19 and the entrepreneurship of herb-based goods. The third section describes the techniques and strategies used to conduct the review. Meanwhile, the fourth section presents and discusses the results followed by the fifth section that focuses on concluding the observations and suggesting prospective research topics for future investigation.
2 Theoretical Background Over the past three decades, there has been significant growth in the usage of herbal medicines and supplements with at least 80% of individuals using them for some aspect of primary healthcare [5]. The use of phytonutrients and herbal medicines,
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sometimes referred to as nutraceuticals, is expanding worldwide as more people use these products to treat various medical conditions under various national healthcare systems [6]. There has been a definite rise in public interest and acceptance of natural medicines in industrialised and developing nations over the past ten years with herbal remedies now sold in food and grocery shops and drugstores. Malaysia is among the nations that emphasise on the growth of entrepreneurship. Entrepreneurship in the herbal sector has expanded significantly in Malaysia and potentially impacted the country’s agricultural sector significantly [7]. More importantly, it has been demonstrated that small and medium-sized businesses are guaranteed success using marketing concepts, tactics, and principles. According to an estimation from the Ministry of Entrepreneur and Cooperative Development, the domestic herbal market in Malaysia was valued at RM32 billion in 2020 [8]. Additionally, alterations in lifestyle, a focus on health, and the growing cost of synthetic medications are the main drivers behind the growth of herbal business in Malaysia. This owes to the fact that herbal medicines are less expensive, more culturally acceptable, more suited to the human body and have fewer side effects; subsequently prompting considerable demands for primary healthcare in underdeveloped nations. Due to the rising demand for healthy functional foods, herbal supplements, energy drinks, and herb-based cosmetics, the Malaysian herbal sector has been expanding rapidly and receives support from the government [9]. The local herbal industry has a long history where in earlier times, the old Tanah Melayu was established partly because of the trade in flowers and herbs. The variety and extensive usage of herbs and flowering plants have led to significant growth in the market for herbal goods in recent years. The recent COVID-19 pandemic has significantly impacted the entrepreneurship of herb-based products. The consequences of the economic crisis and the pandemic on demand and income are comparable, even though they are not the same. The pandemic crisis has forced many stakeholders to reconsider the role of agriculture, its essentiality, and how it may remain so while simultaneously improving the environment, regulating the climate and fostering sustainable growth. The government of Malaysia has mentioned herbs as a possible source of economic growth for the country. The early 2011 Economic Reform Plan had included the herbal industry as one of the initial entry point projects (EPP 1) under the New Key Economic Area (NKEA). Moreover, ethnic diversity and traditional medical practices have been crucial aspects in developing nutraceuticals in Malaysia. As a result, herbs entrepreneurship (i.e. selling herbs) is a task that takes time to complete, particularly as the pandemic has shifted it from interpersonal interactions to digital ones [10]. Conversely, COVID-19 may spark many instances of the original community and business responses. Need is a significant driver of creativity in small businesses. For instance, several creative and digital businesses are taking advantage of the chance presented by the sharp increase in online sales. In addition, some businesses might see an increase in demand or find complementary or alternative goods and markets, which might call for innovation in their working methods, goods and services.
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Researchers believe that one of the IR4.0 technologies is the smart grid, which intends to control the distribution practices for generation, storage, consumption, and elastic demands [11]. Therefore, proving the value of social investments is of increasing relevance to governments, businesses, investors, non-governmental organisations (NGOs) and the general public. Both for-profit and non-profit organisations are eager to highlight the value for money in their procedures, guidelines, projects and initiatives. The emphasis on financial gain must be balanced with social considerations to achieve sustainability. Entrepreneurs that make products using herbs may view the pandemic as a potential for continued advancement. Subsequently, entrepreneurship has the potential to transform the society towards sustainability.
3 Methodological Approach To date, limited studies have assessed pertinent research papers and created an agenda for future research on herb-based products entrepreneurship. Therefore, systematic review was selected as a methodological strategy to further our understanding by examining theoretical and empirically based [12], presenting research findings derived systematically, categorically arranging literature reviews and establishing connections between the thematic areas of study of published papers [13]. The publications under investigation were exclusively selected from peer-reviewed journals to prevent sanctioned research from being included [14]. The most popular databases for literature search are EBSCO, Emerald, Elsevier, ScienceDirect, Scopus, Web of Science and Wiley. We used an array of keywords that were combined in various ways in line with our research objectives. For a more in-depth analysis, the AND and OR operators were utilised. Our specific combination included ‘herb entrepreneurship’ OR ‘herb-based’ OR ‘herb-based product’ OR ‘herbal sector’ AND ‘COVID-19’ AND ‘pandemic’. Each author contributed a piece to this study and all pieces were compared to the findings of their analyses. After a preliminary search in the electronic databases, 122 results were discovered (through title and abstract). We then employed the method depicted in Fig. 1 and determined the trustworthiness of the outcomes in terms of their importance for the literature review, resulting in a final tally of 9 pertinent studies.
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Fig. 1 CONSORT diagram for the screening and selection processes of the included studies
4 Analysis and Findings 4.1 Impact of COVID-19 on Herb-Based Products Entrepreneurship COVID-19 has changed not only the customers’ attitudes regarding herbal goods but also the overall perception regarding the entrepreneurship of herb-based products. It calls for a permanent and unwavering attitude as a component of one’s character. Self-efficacy and attitude towards entrepreneurship are essential determinants of entrepreneurial intention and success in business [15]. Numerous entrepreneurial activities, such as the desire to start a new firm, professional achievement and enhancing the entrepreneurial environment, are directly influenced by personality qualities [8]. However, more attention needs to be invested in evaluating the mindset and entrepreneurial efficacy among Malaysian herb-based product entrepreneurs. A significant barrier for entrepreneurs during COVID-19 is the need for knowledge of scientific knowledge in the herbal entrepreneurship industry. Thus, a structured programme would affect various human characteristics, such as values and attitudes, personal goals, creativity, and a propensity for taking risks, which are usually associated with an entrepreneurial bent. However, supply and demand interruptions have
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decreased a company’s turnover with serious financial ramifications for linked businesses and families due to its inability to supply the latter with its products [10]. In addition, the sales of supplements, such as vitamin C for immune support, have spiked during the quarantine despite a decline in the activity of herb-based products.
4.2 Role of Government Measures and Support Towards Herb-Based Products Entrepreneurship Among the key competitive advantages that can be utilised by local herbal businesses include Malaysia’s biodiversity, the availability of fertile soil for growing high-value herbal products and the ecology that can sustain the sector. To advance swiftly and compete with other economies that have made outstanding accomplishments, the herbal industry must adopt modernisation while also experiencing a strong upswing. The government has established new regulations to ensure that the herbal industry is growing and has a promising future. It includes six initiatives that will be implemented through a series of cohesive projects. For Malaysian herbal products to penetrate the foreign export market for nutraceuticals and botanical medicines, swift actions must be done to improve the product quality and strengthen marketing activities. Numerous policies and programmes have been implemented to help the local herbal sector, including fundamental elements and marketing plans in almost every long term.
4.3 Shift of Herb-Based Products Entrepreneurship Towards Digitisation, Innovative Ideas and New Market Solutions For herbal goods to successfully enter the global market, the marketing techniques must be updated to incorporate connections to foreign markets. It is advantageous to switch from the entrepreneurship of herb-based products to digitalisation as an innovation and a new marketplace platform to achieve global environmental and commercial sustainability [16]. Governments, researchers and industry players must agree on a set of uniform standards and laws that the industry must abide by to guarantee the moral application of all AI technologies. Furthermore, all stakeholders like researchers, professionals and institutions must be intrinsic to all people to manage social transformation in the face of the digital revolution while establishing a network of public–private partnerships [17]. For instance, the government must initiate the construction of centres of excellence for herbal research, each of which will supervise projects in pre-clinical research, standardisation, product development, crop production and agronomy. These centres of excellence will also manage intellectual properties associated with research findings, manage and coordinate all research
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and developments among research institutions, and establish collaborations between regional and international institutions. Additionally, Malaysian herbal products can be marketed as premium niche goods to boost the customers’ trust in home-grown herbal products; nevertheless, fundamental requirements for usage, such as efficacy, safety and quality, must be satisfied. The government may work with foreign authorities when the standard is implemented to make it simpler for Malaysian herbal goods to be registered in international markets. As a result, herb-based products from Malaysia can be exported internationally.
5 Conclusion Although COVID-19 produced a challenging climate for herb-based products and the entrepreneurship industry, it also offered numerous business opportunities. In a market where industries equipped with new technology and digital components were preferred in competition, COVID-19 is believed to have improved the short supply chains in the herb-based products industry. The pandemic experience also impacted these crucial factors, but it showed that blockchain technology was more effective in emergencies. Considering this, both institutional framework and governmental backing are crucial in safeguarding herb-based products operations and encouraging entrepreneurial activities in the sector for the market’s ongoing supply. Many governments have intervened and provided cash to support the sector. In addition, entrepreneurs who sell herbal products must adapt to new digital technologies and developments to work more effectively under challenging conditions. Our findings also highlighted some intriguing directions and areas of study for future research in herb-based products, namely: (a) The impact of COVID-19 on entrepreneurial activities concerning the adaptation of new digital technologies and new market solutions; (b) Government support measures and funding during COVID19; (c) COVID-19 crisis as an opportunity for a transition to sustainable herbbased products entrepreneurship and (d) Permanent changes caused by COVID-19 to entrepreneurial activities and the market. As previously indicated, various research fields require further investigation because the COVID-19 pandemic has shown the sector’s faults and capabilities. It includes the need to alter the process of making herbal products. The cultivation of herbs has become a lucrative global industry; however, Malaysia’s herbal industry is still growing and may require some time to compete with larger competitors like China and India. Nevertheless, the government’s continued efforts have produced a forward-thinking and vibrant sector by guiding seasoned business professionals towards lucrative and long-term projects. It is hoped that the local herbal industry will expand more quickly and improve the welfare and economy of the country. Acknowledgements Universiti Malaysia Kelantan supported this work under the UMK Community Impact Research Grant (UMK-COM)—R/COM/A1300/00258A/003/2021/00990.
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Mediation Impact of Socio-Technical Lean Implementation on Critical Success Factor and Service Quality Performance Mas Ayu Diana Mohd Fauzi, Razli Che Razak, and Nurul Syaqirah Zulqernain
Abstract There is a noticeable scarcity of theoretical models in the existing literature on service quality performance that establishes the core constructs of critical success factors towards service quality performance as well as the factors that can facilitate both variables. The objective of this paper is to bridge the gap by presenting a theoretical framework that can recognize and put into practice socio-technical lean services, with the aim of establishing their interconnection and influence on the performance of service quality. It also synthesises information to propose recommendations based on a literature review of the service quality critical success factor and performance, lean services and other relevant academic literature. The article clarifies and accentuates the potential impact of lean service in mediating critical success factors of service quality and quality performance in courier service. A conceptual framework is developed with several propositions to establish the relationships between the constructs based on the appropriate literature, the socio-technical system theory and the resource-based view theory, testing the source of the organisation and its quality performance. Based on previous research, three suggested variables, namely organisational culture, leadership and financial capability have been identified as the critical success factors. This paper covers a gap in the literature by placing socio-technical lean service as a mediator for organisational culture, leadership, financial capability and their relationship with service quality performance. Keywords Critical success factor · Service quality performance · Socio-technical lean services
M. A. D. Mohd Fauzi (B) · N. S. Zulqernain UiTM Machang Kelantan, Machang, Malaysia e-mail: [email protected] R. Che Razak Universiti Malaysia Kelantan, Kota Bharu, Malaysia © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_38
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1 Background There is a severe need to initiate a new model for improving service quality performance in the service area, especially courier service. According to Business Dictionary [1], courier service is a ‘fast, door-to-door, local or international, pickup and delivery service for high-value goods or urgently required documents’. There is a serious need for theoretical models that pave the way for rigorous, deductive research examining the various aspects of lean service, particularly its impact on performance [2]. When other services like hospitals and retail have applied quality techniques like lean service, courier service still seems to be left behind. Courier service companies seem to have been left behind in embracing the transformational effects of lean principles, as most are still operating and based on traditional routine methods of servicing clients [3]. Applying lean services in the courier industry to improve quality performance will put this industry in good shape since lean practices affect other service sectors like hospitals and hotels. Research also reiterated that lean significantly and positively impacted every service quality dimension in a hospital, including tangibility, reliability, responsiveness, assurance and empathy [4]. There are a lot of social and technical lean techniques borrowed from manufacturing companies that can be applied in the service sector. Among the examples are 5S (sort, set, sweep, standardise and self-discipline), visual control and autonomous maintenance. They are vital tools for lean implementation that can be applied before operation manager can measure their quality performance in measurable service quality dimensions as mentioned above [5]. Therefore, lean has allowed a favourable impact on the overall quality performance of the services and all individual service quality performance. Over the last 30 years, lean practices have grown in noteworthy interest. The concepts and methodologies of lean have been broadly spread and adopted in the manufacturing and service sectors [6]. However, only a handful of authors focused their research interest on this area, despite the rapid development of the express branch and how service quality has become one of the critical priorities of courier operators [3]. Recent literature has not managed to elaborate further on the set of factors determining courier service quality. Elements chosen are on a heavier note towards the type of provided service, the segment of customers and the geographical and cultural area [7]. In that sense, lean means creating more value for customers with fewer resources [8].
2 Problem Statement The global courier market was valued at $306 billion in 2018 and was recently forecasted to increase 8–10% annually, reaching $400 billion by 2024 [7]. During the same valuation year, a growth of 7.9% or RM115.5 billion was recorded in the Malaysian e-commerce industry, which equalled approximately to 16.6 million
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consumers, compared to RM107.1 billion in 2017. The expanding number of activities has also bloomed in other sectors, including courier services [9]. There are 122 courier service providers in Malaysia, resulting in fierce competition between them. Local courier services are especially tricky to survive though the COVID-19 pandemic in 2020 has caused rapid growth in e-commerce, thus driving the demand for courier services. The President of the Association of Malaysian Express Carriers (Amec) highlighted that the local courier companies were losing out because foreign companies were throwing large amounts of money to win the market share, which was merely a one-sided fight [10]. The key to remaining stable and competitive in the market will always be the quality of the service itself. However, with the price war in the market to sustain the business, quality has not become the foremost priority. As of the end of 2019, MCMC received 2,102 complaints from postal and courier services users. The number was an increase of 70% from 1,235 cases in 2018 [9]. The easiest way to get out of this problem is to reduce related costs such as training costs for employees, reducing employees and reducing employee payments to reduce the price of the service. The reduction shall severely affect the quality of services due to the inability of the existing workers to cope with the heavy workload coupled with dissatisfaction due to the payment not being worth it. A domino effect will occur when old, experienced workers quit their jobs, replacing inexperienced workers who do not have enough training. However, the emphasis on quality care must be sustained in this sector. Service quality performance needs to be improved to maintain customer loyalty and satisfaction. Research done in Pos Malaysia proved that service quality elements were positively associated with customer satisfaction (Omar Ali & Abd Hakim Amir, 2020). Using quality tools management such as social lean and technical lean to enhance the success factors of quality performance is the main idea of this paper in improving service quality performance. Although many references have discussed the aspects of enhancing the quality services, no research paper makes lean a mediating factor in linking quality success factor to quality performance. There is a need for further research on building a relationship between lean principles and the transportation industry, especially in the courier sector, which plays a vital role within the ecommerce platform [3]. This paper emphasises three crucial critical success factors as independent variables; the previous researcher as discussed below highlighted them as factors contributing to success in the courier industry.
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3 Research Objectives The main objective of this study is to propose a lean socio-technical theory as a mediator between three critical success factors, namely organisational culture, leadership and financial capability with service quality performance. To achieve the research objective, this study will investigate the following objectives: 1. To examine the relationship between critical success factors and service quality performance. 2. To examine the relationship between critical success factors and lean implementation. 3. To examine the relationship between lean implementation and service quality performance. 4. To examine the mediating effect of lean implementation towards the relationship between critical success factors and service quality performance.
4 Research Questions 1. 2. 3. 4.
Do critical success factors influence service quality performance? Do critical success factors influence lean implementation? Does lean implantation influence service quality performance? Does lean implementation mediate the relationship between critical success factors and service quality performance?
5 Literature Review 5.1 Leadership In explaining the leadership variable, the researcher refers to a study by Beugré et al. [11], who stated that businesses are not able to strategies the business without leaders, specifically transformational leaders who are developing and encouraging innovation through the right organisational culture and then increasing the employee’s involvement in making decisions effectively. This is because the organisation needs committed leaders who motivate their employees to obtain the organisational goals due to unstable situations and environmental changes [12, 13]. One of the most critical elements of leadership is the capacity to practise on the employees. Managers must view the organisation and management as a system to determine success in every business. They should be able to evaluate employees’ behaviour via their chosen leadership style, examining current business conditions, nature of work, job descriptions and characteristics of their workers [14]. The desire for change is the critical motivation for leadership [15]. Many transformational leaders use change and transformation strategies to generate imagination and invention to surge convergence,
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expand teamwork and eventually boost the drive among the employees [16]. The transformational theory explains that a leader’s behaviours change the employees’ values, needs, preferences and goals and lead them to do things exceeding their power [17, 18]. Therefore, they use idealised influence, inspirational motivation, intellectual stimulation and individualised consideration to achieve the expected outcomes through their employees [19, 20]. Moreover, transformational leadership acts as an example for employees who can internalise the values of the work consistent with the leader’s mission by enhancing what is right or wrong in providing the services [21]. Hence, transformational leadership positively correlates with all service quality dimensions [22]. A study by Lee et al. [23] shows three crucial influences in determining service quality: the intellectual motivation of transformational leadership, the job satisfaction of the team leader and the team performance. Farazmand and Lebasi [24] agreed with Lee et al. [23] and reiterated that the dimensions of transformational leadership positively impact service quality through team performance. Thus, improved performance positively impacts service quality [15]. The proper implementation of leadership behaviours improved the lean system’s success and validated achieving high sustainability in performance (Usmani et al., 2019). Findings by Razalli et al. in 2017 [25] showed that the level of leanness was relatively high among the GLCs in Malaysia, while the lean management practice was significantly related to organisational performance. Therefore, these hypotheses are proposed: H1: Leadership is positively related to service quality performance. H2: Leadership is positively related to the success of lean implementation.
5.2 Organisational Culture In constructing the theoretical framework, the organisational culture variable has been chosen. According to Hofstede [26], culture refers to the norms and values that direct an organisation and set employee expectations. This variable has also been defined as the fundamentals of values, beliefs and principles that represent the foundation for an organisation’s management system and the set of management practices that reinforce those principles [27]. Besides that, organisational culture, also known as corporate culture, includes an organisation’s attitudes, experiences, beliefs and values. Deshpande’ and Webster [28] defined organisational culture as the shared values and beliefs that assist people in understanding organisational functions and thus deliver norms and behaviours for the organisation. From this definition, an organisation’s member can refer to these values and standards to form guidelines and set expectations based on a variety of behaviours that lead an organisation’s direction [29]. While investigating critical success factors for lean implementation, organisational culture was found among the essential critical success factors [30]. The literature review found a significant correlation between a
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construction company’s organisational culture and quality performance [31]. Specifically, it can also be related to service culture, a customer-centric culture that focuses beyond customer expectations and creates the best customer value over developing service and performance competencies. Current papers also highlighted culture’s impact on performance and quality management selection, like lean implementation. Gambi et al. [32] agreed that better performance can be seen after selecting several different quality management methods based on the characteristics of each firm’s culture. To implement effective lean strategies, organisations need to alight the policies and procedures that align with lean techniques. By aligning values and beliefs with each company’s policies and procedures, an organisation’s members become more effective in their work [33]. A similar outcome has been found by Sahoo [34], who justified that there are significant and direct effects on the operational performance of Indian manufacturing SMEs upon the construct of lean practices and organisational culture. The research showed the mediating impact of organisational culture on sustaining lean processes within small–medium manufacturing business setups [34]. Leisen et al. [35] further agreed that organisational culture could improve marketing effectiveness and more significant strategic alliances. Therefore, these hypotheses are proposed: H3: Organisational culture is positively related to service quality performance. H4: Organisational culture is positively related to the success of lean implementation.
5.3 Financial Capability It is imperative to ensure that a company has good financial standing before any quality improvement initiative is undertaken. To ensure that all improvement efforts achieve success, the improvement needs should be accompanied by good plans for infrastructure and rewards. The cost to start lean implementation, for example, hiring a consultant to demonstrate the right way, can be very expensive. According to research done in Canada a decade ago (2012–2014), the total cost to implement lean, including hiring consultants and staff, over 2 years was around $44 million to $49.6 million to train health workers in Saskatchewan, Canada. Consultant costs accounted for close to 50% of the total. The estimated cost of lean events alone ranged from CAN $16 million to $19.5 million, with Rapid Process Improvement Workshops requiring the highest input of resources [36]. Thus, financial capacity is a critical success factor in determining successful projects [37]. On the other hand, financial capability is a must in a bid to improve service quality as it involves cost. Cost of quality is a financial measure of an organisation’s performance, helping to enhance the various costs to achieve the best at a more reasonable price. Prevention and appraisal costs must be increased to cut the internal and external failure costs [38]. Rewards and compensation are essential to financial capability to ensure lean implementation success [39]. Various researchers on strategy
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implementation have recognised the need for financial resources. However, there is some controversy surrounding the role of monetary rewards in lean systems. Many lean advocates are against monetary incentives, which are seen as ineffective and counterproductive. However, other advocates agree that compensation programmes are critical tools for reinforcing the knowledge, skills and behaviours needed in lean systems [40]. However, financial capability has been proven to positively affect lean implementation in logistic companies [37]. Therefore, these hypotheses are proposed: H5: Financial capability is positively related to service quality performance. H6: Financial capability is positively related to the success of lean implementation.
5.4 Lean Implementation This paper examines lean implementation through the lens of social lean and technical lean perspectives. The concept of socio-technical lean services is regarded as straightforward and sophisticated since it encompasses both work tasks and people as an interdependent system. The utilization of the lean methodology is an effective means of analysing the connections between people and technologies in workplaces. This approach is particularly relevant in contemporary studies where numerous students and devices are connected to the internet for learning purposes. The two main areas are social issues related to people and organisations (relationships, rules, etc.) and technical issues related to tasks and technologies (procedures, resources, etc.). Previous researchers have rarely discussed lean and performance, especially in the service area. Alsmadi et al. [41] were the first ones to survey the lean–performance relationship in services. Alsmadi et al. [41] further discussed the positive relationship between lean practices and firm performance in the manufacturing and services sectors. This previous research highlighted that the degree of effect on performance was identical between the two sectors. Besides technical services like using 5S and Visual Stream Mapping, soft lean practices are rarely discussed in implementing lean. The business organisation should consider soft lean practices within lean management literature when implementing lean [42]. The extant literature on lean service reveals a noticeable lack of theoretical models establishing the core constructs of lean service, their interrelation and the impact on organisational performance [2]. Meanwhile, the most current literature discusses designing a new key performance index on the lean method that can lead to determining and reducing all different forms of existing wastes that are expected to improve the existing processes, enhance performance, increase time efficiency and improve work accuracy [43]. Hence, these hypotheses are proposed:
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H3: Lean implementation mediates leadership to service quality performance. H4: Lean implementation mediates organisational culture to service quality performance. H5: Lean implementation mediates financial capability to service quality performance.
5.5 Service Quality Performance Considering current trends in the Courier, Express, and Parcel (CEP) market and the academic output concerning courier service, it can be concluded that measuring the courier service quality is still a relevant part of management science and needs further research [44]. The satisfaction and loyalty of customers are directly influenced by service quality, and indirectly affected through customer satisfaction [45]. Courier service providers must identify and understand various antecedents of customer loyalty as it ensures higher profit through enhanced revenues and reduced customer acquisition cost [46]. In the courier services industry, one of the crucial factors contributing to customer satisfaction is the quality of services provided. Correlation analysis showed strong positive and significant relationships between all dimensions of Logistics Service Quality (LSQ) and customer satisfaction [47]. Service quality must meet customer needs [48]. To meet the dynamic requirements of organisations, logistics service providers focus mainly on service quality [49].
6 Conceptual Framework The present study undertook a review of literature, drawing upon relevant constructs from previous research such as organizational culture, leadership, financial capability, lean implementation and service quality performance. Then, the structural model will be confirmed using Structural Equation Model analysis. Figure 1 shows the proposed theoretical framework.
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Leadership
Organizational Culture
Technical & Social System of Lean
Service Quality Performance
Financial Capability
Fig. 1 Proposed theoretical framework
7 Proposed Research Methodology This study follows a quantitative methodology research process: 1 Research Design Stage 1: Preliminary Study and Extensive Literature Review • Using purposive sampling, interviews will be conducted with 5–10 Chief Executive Officers of courier services to get preliminary data about service quality performance in their organisation. Stage 2: Instrument Development and Validation • The instrument will be developed based on the information from the preliminary interview, extensive literature review and underpinning theory. • A pre-test will be conducted through online surveys with industry and academic experts in related fields to assess the face and content validity. • A pilot test will be conducted to refine the questionnaires and check the instrument’s reliability and consistency. Stage 3: Data Collection, Confirmatory Analysis and Hypotheses Testing • A primary survey will be conducted, and the data will be analysed using IBM Statistical Package for the Social Science (SPSS) software version 26.0. • Pearson correlation analysis will be used to explore the significant statistical relationships between critical success factors, lean implementation and service quality performance. • For analysing the mediation effects between lean implementation and critical success factors and service quality performance, the PROCESS procedure by
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Andrew F. Hayes will be used for the bootstrapping analysis for mediation in this study. 2 Sampling Design • The unit analysis for this study is the managers of a courier service company in Malaysia representing their companies. The samples for this study are from the managers of courier service providers in Malaysia. • This study will be conducted using the census method since, all over Malaysia, only 122 companies are running their business in Malaysia. • For the survey, we will use a census method where all the Chief Executive Officers will answer the questionnaires on behalf of their companies.
8 Conclusion This study highlights a gap in the literature by identifying socio-technical lean service as a mediator for organisational culture, leadership, financial capability and their relationship with service quality performance. The conceptual framework will be tested by conducting quantitative research and by using a census method where all the Chief Executive Officers from all courier service companies in Malaysia will answer the questionnaires on behalf of their company. The data collected will be analysed using SPSS software version 26.0. Pearson correlation analysis will be used to explore the significant statistical relationships between critical success factors, lean implementation and service quality performance. Meanwhile, the researcher will use the process procedure by Andrew F. Hayes to analyse the mediation effects between lean implementation and critical success factors, and thus service quality performance. Subsequently, all results will be discussed in the following research.
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25. Razalli, R., & Ahmad, Hartini, & Arshad, Darwina. (2017). The mediating role of quality leadership in lean practices and GLCs performance. International Journal of Supply Chain Management, 6, 291-299. 26. Hofstede, G. (1980). Culture’s consequences: International differences in work-related values. Sage, Beverly Hills, CA. 27. Denison, D.R. (1990). Corporate Culture and Organizational Effectiveness, Wiley, New York, NY. 28. Deshpande´, R., & Webster, F.E. (1989). Organisational culture and marketing: Defining the research agenda. Journal of Marketing, 53(January), 3-15. 29. Beitelspacher, L. S., Richey, R. G., & Reynolds, K. E. (2011). Exploring a new perspective on service efficiency: Service culture in retail organisations. Journal of Services Marketing, 25(3), 215–228. doi: https://doi.org/10.1108/08876041111129191 30. Dora, M., et al., (2013). Operational performance and critical success factors of lean manufacturing in European food processing SMEs, Trends in Food Science & Technology (2013), http://dx.doi.org/https://doi.org/10.1016/j.tifs.2013.03.002 31. Willar, D., Trigunarsyah, B., & Coffey, V. (2016). Organisational culture and quality management system implementation in Indonesian construction companies. Engineering, Construction and Architectural Management, 23(2), 114–133. https://doi.org/https://doi.org/10.1108/ ECAM-02-2015-0026 32. Gambi, L. do N., Gerolamo, M. C., & Carpinetti, L. C. R. (2013). A theoretical model of the relationship between organisational culture and quality management techniques. Procedia Social and Behavioral Sciences, 81, 334–339. https://doi.org/10.1016/j.sbspro.2013.06.438 33. Denison, D.R., & Mishra, A.K. (1996). What is the difference between organisational culture and organisational climate? A native’s point of view on a decade of paradigm wars. Academy of Management Review, 2(3), 619-54. 34. Sahoo, S. (2022). Lean practices and operational performance: The role of organisational culture. International Journal of Quality and Reliability Management, 39(2), 428–467. https:/ /doi.org/https://doi.org/10.1108/IJQRM-03-2020-0067 35. Leisen, B., Lilly, B., & Winsor, R.D. (2002). The effects of organisational culture and market orientation on the effectiveness of strategic marketing alliances. Journal of Services Marketing, 16(3), 201-22. 36. Sari, N., Rotter, T., Goodridge, D., Harrison L., & Kinsman, L. (2017). An economic analysis of a system wide lean approach: Cost estimations for the implementation of lean in the Saskatchewan healthcare system for 2012-2014. BMC Health Serv Res, 17(1), 523. doi: https:/ /doi.org/10.1186/s12913-017-2477-8. PMID: 28774301; PMCID: PMC5543735 37. Punnakitikashem, P., Buavaraporn, N., & Chen, L. (2013). An investigation of factors affecting lean implementation success of Thai logistics companies. Strategy and Innovation, 1–10. 38. Das, Subrata. (2008). Importance of cost of quality in apparel sector. Asian Textile Journal, 17, 57-58. 39. Bhasin, S. (2011). Measuring the leanness of an organisation, International Journal of Lean Six Sigma. 2 (1), 55-74. 40. Ledford, (2012, March 13). Do monetary rewards reinforce lean systems? Industry Week. https:/ /www.industryweek.com/22031216 41. Alsmadi, M., Almani, A, & Jerisat, R. (2012). A comparative analysis of Lean practices and performance in the UK manufacturing and service sector firms. Total Quality Management & Business Excellence, 23(4), 381–396. 42. Mamat, R. C., Md Deros, B., Ab Rahman, M. N., Omar, M. K., & Abdullah, S. (2015). Soft lean practices for successful lean production system implementation in Malaysia automotive smes: A proposed framework. Jurnal Teknologi, 77(27), 141–150. https://doi.org/10.11113/jt. v77.6910 43. Alalawin, A., Qamar, A. M., AlAlaween, W. H., Bentahar, Y., Al-Halaybeh, T., Al-Jundi, S., & Tanash, M. (2022). Aligning key performance indicators with lean management in the service sector: A case study for a Jordanian telecommunication company. Cogent Engineering, 9(1). https://doi.org/10.1080/23311916.2022.2124940
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Malaysia Health Tourism SME’s Innovation Performance in the Relationship with Innovation Capability and Competency Fadhilahanim Aryani Abdullah, Nik Maheran Nik Muhammad, Rikinorhakis Redzuan, and Lu Man Hong
Abstract Malaysia provides top-notch medical tourism services, as evidenced by the numerous international awards it has won. However, corporate institutions like private hospitals and five-star hotels dominate the health tourism market in Malaysia. There aren’t many successful tourist SMEs. In addition, the Ministry of Health Malaysia is now the sole organisation in charge of the whole area of health tourism, making it difficult for other tourist SMEs to collaborate with one another to support the growth of the sector. One of the major shortcomings is that most tourism SMEs do not prioritise innovation and digital adaptation capabilities because they require more knowledge, expenses, and long-term commitments. As a result, this study will pinpoint the innovation capability variables that affect performance as well as the significance of digital adaptation skills in the Malaysian health tourism sector. This study is quantitative in nature and is based on a straightforward random selection of business owners in Malaysia’s health tourism sector who are identified as responders by the Malaysian Health Tourism Council (MHTC) and the Ministry of Tourism, Arts, and Culture (MOTAC). All respondents were surveyed as part of the study. The results demonstrated that innovation capability had a significant impact on innovation performance using the current statistical system. Keywords Innovation capability · Innovation performance · Innovation competency
F. A. Abdullah (B) Faculty of Hospitality, Tourism and Wellness, Universiti Malaysia Kelantan, Kota Bharu, Malaysia e-mail: [email protected] N. M. Nik Muhammad · R. Redzuan · L. M. Hong Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Kota Bharu, Malaysia © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_39
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1 Introduction The launch of the national tourism policy 2020–2030 aimed to boost Malaysia’s tourism sector’s competitiveness in a world that was becoming more uncertain and competitive by boosting revenue, securing partnerships and investments, empowering local communities, and ensuring the sustainability and resilience of the sector based on the National Tourism Policy in 2020. The National Tourism Policy in 2020 adds value to the existing tourist experiences through product creation, enhancing enablers, and removing barriers in accordance with United Nations Sustainable Development Goals (SDG) strategic orientations to encourage innovation and competitiveness. Therefore, they are introducing health and wellness tourism as one of the niche tourism areas that has the enormous potential to position Malaysia as a global brand to take advantage of the country’s untapped potential as a top retirement destination as well as the country’s dominant position in the world of medical tourism. The top countries for US medical tourists were India, Thailand, Mexico, the Philippines, Korea, Taiwan, Malaysia, and Singapore, according to a Deloitte report on health-care tourism in the USA conducted in 2008. These nations are already able to draw millions of medical tourists each year [1, 2]. Malaysia is the eighth-ranked medical tourism destination in the world, with total expected profits of USD 318 in 2017 and USD 350 million in 2018. The top 10 places for wellness include Malaysia. This reflected the fact that with such great potential, Malaysian companies involved in the health and wellness tourism sector must adhere to the established policies and improve the adoption of new technologies to remain resilient and competitive in the market. Various metrics have been employed by many academics to identify innovation performance and adoption in the organisation. These metrics have produced useful results, including innovation, a firm’s organisational culture, strategy, structure, systems, behaviours, and processes, competitive advantage, improved financial performance, and enhanced organisational learning [1]; firm-specific elements [3]; competitive advantage in a market economy [1, 3]; and capability were top priorities. The proficiency and aptitude of all businesses involved in this industry should be recognised, notwithstanding the industry’s promising future and contribution to the nation. Since wellness and medical tourism are the two major categories that contribute to this business, there is a significant difference between the performance and sustainability of the enterprises involved. Due to today’s competitive and dynamic market, businesses constantly confront obstacles on both the inside and outside. Every company’s performance and sustainability can be improved by implementing innovation. Leading managers now use a variety of innovative models to maintain competitive advantages as innovation activities have gotten more difficult. Adopting tactics like acquiring outside technology and utilising internal technology can significantly boost a company’s performance in terms of innovation. Thus, the purpose of this study was to identify the factors of innovation competency and innovation capability that contributed to innovation performance in the Malaysian health tourism industry.
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2 Literature Review 2.1 Innovation Performance in the Malaysian Health Tourism Industry The idea of health tourism was initially presented in Malaysia in 1998. The National Committee for the Promotion of Health Tourism in Malaysia was founded by the government to promote the benefits of Malaysia’s medical services and hospital infrastructure. Additionally, the Ministry of Health, the Ministry of Culture, Arts, and Tourism, and the Ministry of Trade between Nations and Industry will all work together to promote the industry overseas on behalf of the government (Ministry of International Trade and Industry). The health tourism business, particularly medical tourism, has expanded since its establishment in 1998. In contrast to the typical extent of a company’s level of innovation in the economy, there is growing discussion about tourism as an innovative field [4, 5]. Several factors, including patents owned by businesses, process innovations, and especially research and development (R&D) expenditures, may be used to study the relationship between innovation and corporate performance. Indeed, the effectiveness of innovation has a favourable impact on organisational expansion and profitability. Besides, financial performance measurements may be used as the foundation for company performance evaluations. Thus, innovation output, profitability, and growth are referred to as innovation performance in this study [4, 5].
2.2 Innovation Competency Competence is defined as “good performance in a range of real contexts based on the integration and activation of knowledge, standards, methods, procedures, talents and skills, attitudes, and values” [6]. In 2018, the European Qualifications Framework for Lifelong Learning added responsibility and autonomy to the definition of competence, which is defined as “the demonstrated ability to use knowledge, skills, and personal, social, and or methodological abilities in work or study situations, as well as in professional and personal development.” The tasks that an organisation excels at performing are known as organisational competencies. An organisation’s ability to build and deploy unique resources more quickly than its competitors indicates how capable it is of innovation [7], and this capability results from the presence of a clearly defined learning philosophy, a strategic direction, and a trans-functional adaptation focused on innovation. Hence, the ability of an organisation to act and respond creatively in response to various key situations, issues, or activities that call for creative thinking and responses and may arise in a specific setting is known as innovation competence since innovation competencies include knowledge, abilities, and attitudes, as well as patterns of personal competences and how they interact to produce results [6, 7]. According
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to previous research, in order to achieve innovative performance, the three components of innovation orientation and their influence on organisational skills must be examined collectively. Organisational competencies are a result of a strong innovation orientation and consist of abilities or pursuits that improve and gain value over time [6, 7]. Innovation competency often relates to individual capacity, collective adaptability, professional ability, and innovation ability. According to the literature, organisations must carefully develop and accumulate the key competencies needed to implement an innovation orientation over time in the areas of resource allocation, technology, markets, human resources, and operations. Each of these key competencies reflects the entire organisation and impacted by the general knowledge structure, which is innovation focused. In accordance with the preceding, the hypothesis is as follows: H1: There is a significant and positive relationship between innovation competency and innovation performance in Malaysia’s health tourism industry.
2.3 Innovation Capability Globalisation and competition have forced businesses to innovate to thrive and prosper [8]. Companies in the competitive market of today must constantly develop new solutions to satisfy shifting client wants in this rapidly changing environment [2, 8]. Innovation is acknowledged as a crucial component for long-term business success and competitive advantage in SMEs. In other words, the capacity of a company to develop an idea into a new product or service with economic value is known as innovation capability. It also refer to the capacity to continually turn information and concepts into new services, procedures, and systems for the benefit of the business and its stakeholders. Business innovation capability refers to the ability to create new and distinctive values by converting new concepts into integrated, formed, and reconfigured competence to address problems arising from rapidly changing environments. To support or enable the firms to innovate, this will include investment, financing, structure, culture, human resources, and system. To become lucrative and lasting, organisations strive to establish a competitive edge. The secret to sustainability and growth is the capacity to develop novel goods and services. The need for business innovation is increased by the quickening development of quality control systems, the pretentiousness of consumers, competition from non-traditional sources, and the emergence of hybrid industries. Several factors, including patents held by businesses, process innovations, and especially R&D spending, may be used to study the relationship between innovation and corporate performance [2, 8]. According to [9], who established a link between innovation activity and company performance, organisational human capital and organisational culture boost a business’s capacity for innovation. Companies that are innovative perform better than their rivals, particularly those that can use innovation to set their goods and services apart. Prior studies have consistently emphasised that the sector
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Fig. 1 Research framework
and size of the organisation, as well as the business profile and philosophy used, are all factors that influence innovation. Thus, the hypothesis is stated as follows: H2: There is a significant and positive relationship between innovation capability and innovation performance in the Malaysian health tourism industry. Figure 1 shows the relationship between the determinants factors of innovation competency and innovation capability towards innovation performance. This framework was used for this research.
3 Methodological Approach A survey was distributed to respondents through Google Forms for this study. When employing the non-probability sampling method, 250 questionnaires were given to the Malaysian tourism industry as part of this study. 222 questionnaires were gathered overall. Nine questionnaires in total had incomplete answers, so they were excluded from the analysis. As a result, 213 questionnaires in total were used and examined. The distribution of this survey will take place from February to April 2020. The questionnaire was graded using a six-point Likert scale, with denoting “strongly agree” and 1 denoting “strongly disagree.” Using partial least squares and structural equation modelling to analyse the data. According to [10], PLS-SEM may maximise the explained variance of the endogenous latent variables. Using SmartPLS software, version 3.1, 5,000 bootstrap samples with 121 instances each were used to estimate the parameters in our study model. For the purpose of this study, one exogenous variable and the variable that affected software quality were operationalised and used to collect data.
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Four independent (exogenous) variables and indicators, including problem-solving, cooperation, communication, and the creation of digital content were identified for this research study.
4 Analysis and Findings 4.1 Analysis with SmartPLS A model of the main design change elements impacting building projects was created using the SmartPLS technique and SmartPLS 3.1. The validity and reliability of the model were then assessed. While the reliability was assessed using composite reliability and Cronbach’s alpha, the validity was assessed using convergent and discriminating validity. The leasing factor >0.7, the loading factor >0.5, and the average derived variance (AVE) > 0.5 are the basic requirements for convergent validity, but the leasing factor of 0.6– 0.7 is still adequate for exploratory work [10]. A clever PLS measurement model for design adjustments is shown in Table 1. The statistics for the load factor, Cronbach’s alpha, composite reliability, and AVE are shown in Table 1. Within the current study’s range, AVE will be greater than or equal to 0.5, and composite reliability will be above average, as recommended by [10]. Table 2 also shows the discriminant validity. A structural model was examined using SmartPLS after the measurement model had been evaluated. Both direct and indirect effects were examined to accomplish this. The hypothesis was confirmed when the route coefficient and the value “t” were considered. Table 2 shows the discriminant validity result based on the HTMT value. According to [11], the value of HTMT should not be greater than 0.90 to prevent multicollinearity issues among constructs. Thus, the range of the HTMT value in this study was between 0.809 and 0.888, which was below 0.90, and this explained that there were less multicollinearity issues among all constructs.
4.2 Path Coefficient This study used a resampling of 5,000 samples. To record the path coefficients, standard errors, and t-values for the structural model, this study used a 5,000-sample re-sample bootstrapping procedure. A variety of metrics, including the t-value and standard beta value, should be used to assess the validity of the hypotheses. Table 3 provides further information on the factors that were used for hypotheses testing in this study.
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Table 1 Measurement model Constructs
Item
Loadings
CR
AVE
Innovation Performance (IP)
DV1
0.859
0.924
0.655
DV2
0.832
DV3
0.866
DV4
0.767
DV5
0.741
DV6
0.753
DV7
0.808
DV8
0.836
ICAPIS2
0.800
0.939
0.6704
ICAPIS3
0.771
ICAPIS4
0.862
ICAPIS5
0.847
ICAPIS6
0.919
ICAPIS7
0.833
ICAPIS8
0.835
ICAPIS9
0.837
ICAPID1
0.840
ICAPID2
0.915
ICAPID3
0.931
0.939
0.6704
ICAPID4
0.922
ICAPID5
0.878
ICAPID6
0.846
ICAPS1
0.870
ICAPS2
0.821
ICAPS3
0.848
ICAPS4
0.882
ICAPS5
0.861
ICAPS6
0.837
ICOMO1
0.853
0.930
0.724
ICOMO2
0.874
ICOMO3
0.877
ICOMO5
0.801
ICOMO6
0.861
ICOMO7
0.896
ICOMS1
0.786
ICOMS2
0.872
Innovation Capability (ICAP)
Innovation Capability (ICAP)
Innovation Competency (ICOM)
(continued)
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Table 1 (continued) Constructs
Item
Loadings
ICOMS3
0.909
ICOMS4
0.875
ICOMS5
0.898
ICOMS6
0.897
ICOMS7
0.886
ICOMS8
0.907
ICOMS9
0.900
ICOMK1
0.839
ICOMK2
0.866
ICOMK3
0.851
ICOMK4
0.824
ICOMK5
0.831
ICOMK6
0.842
ICOMK7
0.881
ICOMK8
0.878
ICOMK9
0.865
ICOMK10
0.853
CR
AVE
Table 2 Discriminant validity (HTMT ratio) ICAP
ICOM
ICAP
0.822
ICOM
0.888
0.833
IP
0.816
0.826
IP
0.809
Table 3 Path coefficients Hypothesis
Relationship
Std Beta
Std Error
t-values
H1
ICAP > IP
0.406
0.116
3.512
H2
ICOM > IP
0.330
0.143
1.824
5 Discussion The study’s main goal was to identify the factors of innovation capabilities and competencies that contribute to innovation performance in Malaysia’s health tourism industry. Thus, the data findings indicated that both hypotheses suggested in this study were accepted. To begin with, the first findings revealed that innovation capabilities are positively and significantly related to innovation performance in Malaysia’s health
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tourism industry. Thus, this finding aligns with the view from [6] and [7], which stated that organisational competencies are a result of a strong innovation orientation and consist of abilities or pursuits that improve and gain value over time. This explained that it is essential to produce unique and original consumer value if you want to keep a competitive edge in the Malaysian health tourism industry. To be competitive, owners must maintain their current capabilities while developing new ones, because innovation is the creation of something novel that consumers will find valuable. Finally, the second set of findings indicated that there is a positive and significant relationship between innovation competencies and innovation performance in the Malaysian health tourism industry. This result is supported by the study from [2, 8], who justified that the need for business innovation is increased by the quickening development of quality control systems, the pretentiousness of consumers, competition from non-traditional sources, and the emergence of hybrid industries, especially in the service sector.
6 Conclusion This study has the potential to provide significant insights to certain parties regarding the importance of innovation competencies and capabilities in innovation performance, particularly in the Malaysian health tourism industry. Practically speaking, this study is capable of helping Malaysia’s growing health tourism sector. First, the research emphasises the value of innovation in fostering organisational improvement. A strong component, innovation, may help the business develop, pursue, and put new concepts and procedures into practice. It is vital to comprehend its significance inside the company. Additionally, this research might give government organisations, private organisations, and policymakers the chance to comprehend the critical elements of innovation and establish new guidelines for aspiring or inexperienced health tourism entrepreneurs. Acknowledgements This work was supported by Universiti Malaysia Kelantan.
References 1. Phanpanya, K., Leelapattana, W., Thongma, W., & Waiapha, Y. (2020). Tourism service factors affecting health tourism service innovation in Mae Hong Son Province. International Journal of Innovation, Creativity and Change, 11(7). 2. Sari, Y., Mahrinasari, M., Ayi, A., & Marselina, M. (2019). Model of improving tourism industry performance through innovation capability. Journal of Environmental Management and Tourism, 10(4 (36)), 852–863. 3. Mawarni, G., Moutinho, N., Fernandes, P. O., & Nunes, A. (2022). Factors affecting the adventure tourism development index: A worldwide analysis. Advances in Tourism, Technology and Systems (pp. 371–383). Springer.
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4. Ngeoywijit, S., Kruasom, T., Ugsornwongand, K., Pitakaso, R., Sirirak, W., Nanthasam-roeng, N., . . . Kaewta, C. (2022). Open innovations for tourism logistics design: a case study of a smart bus route design for the medical tourist in the City of Greater Mekong Subregion. Journal of Open Innovation: Technology, Market, and Complexity, 8(4), 173 5. Satta, G., Spinelli, R., & Parola, F. (2019). Is tourism going green? A literature review on green innovation for sustainable tourism. Tourism Analysis, 24(3), 265–280. 6. Huang, G. I., Liu, J. A., & Wong, I. A. (2021). Micro-celebrity restaurant manifesto: The roles of innovation competency, foodstagramming, identity-signaling, and food personality traits. International Journal of Hospitality Management, 97, 103014. 7. Ibrahim, R. B. M., Abraham, A. V., & Mohd, W. A. A. B. W. (2021). Evaluation of small and medium sized enterprise innovation performance growth in Malaysia. International Journal of Business and Management, 13(10), 161–161. 8. Hurtado-Palomino, A., De la Gala-Velásquez, B., & Ccorisapra-Quintana, J. (2022). The interactive effect of innovation capability and potential absorptive capacity on innovation performance. Journal of Innovation & Knowledge, 7(4), 100259. 9. Yodchai, N., Ly, P. T. M., & Tran, L. T. T. (2021). How the creative mindset affects entre-preneurial success in the tourism sector: the mediating role of innovation capability. International Journal of Contemporary Hospitality Management, 34(1), 279–298. 10. Hair Jr, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2016). A primer on partial least squares structural equation modeling (PLS-SEM). Sage Publications. 11. Henseler, J., & Chin, W. W. (2010). A comparison of approaches for the analysis of interaction effects between latent variables using partial least squares path modeling. Structural Equation Modeling, 17(1), 82–109.
Digital Economy: Improving Logistics Performance in Asian Countries Nur Naddia Nordin , Nur Haiza Nordin , Nur Ilyana Amiiraa Nordin , Nur Faiz Nordin , and Norzalina Zainudin
Abstract The main objective of this paper is to determine the role of the digital economy as an absorptive capacity in moderating logistics performance and economic growth in Asian countries. This study utilised panel data from 15 selected Asian countries over the period of 2007 to 2020. This study employed the Dynamic Ordinary Least Square (DOLS) estimation technique to analyse the data. The main finding of this study indicates that digital economy plays a significant role in the logistics performance-growth link in Asian countries. The finding also indicates that, by incorporating the role of the institution in the digital economy, the institution had a moderating effect on the digital economy to enhance logistics performance, which can boost economic growth. Keywords Digital economy · Logistic performance · Institution · Growth
1 Introduction Global connectivity and data flows are expanding at an unprecedented rate. The so-called fourth industrial revolution, which is characterised by the complete digitalisation of all assets and their integration into a digital ecosystem, is centred on this [1]. It represents the fourth major shift in contemporary manufacturing after the lean revolution in the 1970s, outsourcing in the 1990s, and automation in the 2000s (Germany Trade and Invest). Asia–Pacific continues to be amongst the regions of the globe with the fastest economic and connectivity growth. Asia has the most internet users in the world in 2017 with 1.9 billion active users.
N. N. Nordin (B) · N. H. Nordin · N. I. A. Nordin · N. F. Nordin Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Kota Bharu, Malaysia e-mail: [email protected] N. Zainudin Faculty of Human Ecology, Universiti Putra Malaysia, Seri Kembangan, Malaysia © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_40
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Cross-border data access, consumption, and exchange are essential for economic development in the digital age. Data and the international flow of that data are essential to all aspects of manufacturing, services, agriculture, and retail. Cross-border economic activity has been made possible by increased global connectivity, which has allowed for direct or indirect participation in international markets by people, small businesses, and start-ups through the usage of large-scale data infrastructure like the cloud. At its core, the digitalisation of economies and global commerce should increase productivity and efficiency [2]. By increasing access to information, the Internet boosts productivity and enables markets to function more effectively. Greater organisational efficiency is the outcome of the free flow of data, which reduces transaction costs and removes geographic obstacles. Increased connection speeds up the exchange of ideas and makes it possible for users worldwide to take advantage of new research and technology, which leads to the creation of new enterprises. By eliminating entrance barriers and making it possible for small and medium-sized firms to reach larger audiences, expanding internet access can also increase market efficiency [3]. Global data flows are also altering the nature of international trade, providing businesses with fresh avenues for participation in the global economy through direct customer sales and integration into global value chains. Global data flows, which amounted to $2.8 trillion in 2014, enhanced global Gross Domestic Product (GDP) by 3.5 per cent beyond what would have occurred in the absence of them, according to McKinsey and Company [4]. The economic activity produced by the billions of daily online interactions between people, businesses, devices, data, and processes are known as the “digital economy.” The backbone of a digital economy is hyper connectivity, or the growing interconnectedness of people, businesses, and machines because of the Internet, mobile technologies, and the Internet of Things (IoT). The phrase “digital economy” refers to any business dealings conducted online. It is often referred to as the web economy or the internet economy. Technological improvements and the process of globalisation are integrating digital and conventional economies. The digitisation of transportation and logistics systems (TLS), together with digital economics and logistics, are part of business process innovation which have shown increased efficiency. The implementation of the Industry Revolution 4.0 concept, together with the development of new engineering ideas, models, and architecture, will determine the direction of digital technologies in the future of the transportation sector and related sectors. The development of highly effective TLS is one of the most significant areas of growth, along with digital technology, according to an evaluation of the structural components of the Russian Federation’s transportation infrastructure. The objective of this study is to examine the role of the digital economy as an absorptive capacity in moderating logistics performance and economic growth in Asian countries. Using the Dynamic Ordinary Least Square (DOLS) estimation technique, the framework of this study used various indicators gathered from the World Bank from the year 2007 to 2020. The paper is organised as follows. In Sect. 2, the past literature is discussed. Section 3 covers the model definition, data description, and econometric analysis
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used in the study. The specifics of the findings and comments are presented in Sect. 4. Finally, in Sect. 5, we present our findings and policy suggestions.
2 Literature Review The effectiveness of logistics plays a significant role in the industrial and economic development of nations. This research aims to focus on policymakers’ options for enhancing national logistics performance considering Industry 4.0. Correlations and multiple regression analyses were used to analyse the influence of digitalisation on logistics performance. The empirical study expands on the dimensions and indicators of the World Bank’s Logistics Performance Index (LPI) and the Digital Economy and Society Index (DESI). The findings suggest that for the purpose of facilitating the improvement of logistics performance, governmental policies should focus on delivering sound framework conditions for the creation of human capital (i.e. ICT specialists), sustainable usage of internet services (e.g. professional social networks, online sales, etc.), integration of digital technologies (e.g. Big Data, Cloud computing, etc.), and digital connectivity (i.e. fixed broadband and 4G coverage) [5]. As a result, we feel that, based on a careful review of the literature, there is a significant need for more studies on how digitalisation affects logistics performance at the national level or macro logistics level. The creation of cutting-edge digital technologies and the expanding application of information and communication technology (ICT) across all economic sectors have long been focal points of the European Union’s (EU) policy. To achieve economic congruence across the EU’s varied member states, the EU offers extensive financial assistance for topic-related initiatives through several financing programmes. In this context, as industries and economies work to accomplish their intended digital transformation, digital readiness becomes the most crucial component to consider. In the past, studies have examined the effects of digital technologies on business logistics performance (also known as micro logistics) [6, 7] as well as the connections between competitiveness and logistics performance [8], trade and logistics performance [9], environment and logistics performance (Liu et al., 2018), and incoterms clauses and logistics performance. As a result, based on a thorough examination of the literature, it is our understanding that the influence of digitalisation on countrylevel logistics performance (i.e. macro logistics level) has not been explored, which clearly indicates a research need. Because of this, the EU offers extensive financial assistance for efforts connected to the issue through several financing schemes that aim to bring the diverse EU member states’ economies closer. As a result, the EU makes for an intriguing research topic because its member states continue to show significant diversity in their rates and levels of economic development, reliance on transportation, and use of ICT across various economic sectors [10]. Consequently, there is a significant disparity in the level of digitalisation within the EU [11–13]. In this regard, the current study aims to look at the relationship
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between the EU member states’ digital and logistical performance. Therefore, the current study’s objective is to examine the impact of digital performance on European nations’ logistical performance. One of the primary forces behind the economic development of nations and regions is the efficiency of logistics [14]. On the other hand, it is comparatively unexplored to examine the current beneficial requirements for the development of transportation and logistics. In this context, and given that logistics plays a crucial cross-industry role, it is worthwhile to investigate how digitalisation affects the efficiency of logistics in supporting economic growth. Gaining competitive advantages are made possible by integrating digital technology into various logistical activities in an acceptable way [15, 16]. Digital technologies influence and support the logistics industry across a wide range of activities, from optimised resource planning and warehouse management systems to intelligent transportation systems, whilst at the same time, placing an increasing emphasis on information and data security [17, 6, 14]. Digital technologies that are thought to accelerate or facilitate Industry 4.0 in the manufacturing industry are typically referred to as enabling technologies. Therefore, present research efforts aim to identify cutting-edge technologies that are anticipated to aid the digital transition most effectively in the context of the logistics sector’s digital transformation. For instance, [18] stresses that the judicious application of enabling technologies such as cloud computing, wireless/mobile communication technologies, and IoT is crucial for the advancement of multimodal transportation. Similar information was gathered by the study of [19], which sought to identify enabling technologies related to the fourth industrial revolution that can be considered as most pertinent for a successful supply chain integration of businesses. These technologies include Industrial IoT, cloud computing, big data analytics, etc. In response to this, [20] evaluated how the broad use of digital enabling technologies, such as IoT, big data analytics, robots, etc., may impact the organisation of activities within global value chains. [21] spoke more broadly on the advantages of Industry 4.0 in the context of logistics management. The writers emphasised the need for flexible connections between goods and services across networks, such as the Internet or blockchain technology, which enables decentralised governance of value networks. They provide proof that the potential for automated, self-optimised production of goods and services, including delivery without human interaction, or self-adapting production systems based on transparency and predictive analytics, exists thanks to digital connection. [22] emphasises that IoT is crucial for the logistics and transportation industries since the integration of appropriate solutions provides operational data on the whereabouts and condition of objects. By reducing costs owing to shorter logistical process cycles, this knowledge may be used to improve services and customer satisfaction. Similarly, [17] emphasised that IoT may address significant logistical challenges including transparency difficulties (i.e. supply chain visibility) or integrity management in supply chains (i.e. the correct items at the proper time, location, amount, and costs). Other researchers, such as [23], went further and proposed cases of specific use, such as an IoT-enabled real-time status sensing model for logistics vehicles for better logistical services, which enabled the reduction of logistics costs through optimised fuel consumption and improved utilisation rate.
Digital Economy: Improving Logistics Performance in Asian Countries Fig. 1 The conceptual framework
Logistic Performance
▲
463 Economic Growth Asian
Digital economy Digital economy x LPI
Another research group investigated the ways digital technologies improved the standard of logistical services. For instance, [24] studied how innovative technology applications affected client acceptability, perception of quality, and happiness with logistical services. Their findings showed a substantial relationship between future purchase intentions, the use of information technology, perceived quality of the logistics service as well as customer satisfaction levels [25, 26]. The effect of logistics service quality on customer satisfaction and loyalty in an omni-channel retail environment was the subject of a related study by [27]. According to their findings, there are three aspects of logistics service quality, namely condition, availability, and timeliness. Each has a unique effect on client satisfaction and loyalty. Several studies examined the effects of various digital technologies on the performance of logistics at the company level (i.e. micro logistics level) by summarising the results from the performed literature review. Consequently, it can be said that various IT applications have provided businesses with a sustainable way to enhance their logistical performance [28]. In addition to previous examples, another research showed a favourable correlation between logistics service providers’ readiness to employ Radio-Frequency Identification (RFID) technology and supply chain performance [7]. In contrast, it was also discussed in recent studies that, when viewed holistically, the digitisation of businesses’ entire performance processes which includes planning, procurement, manufacturing, delivering, and return, will lead to better logistics systems with optimised workflows and shorter lead times [6]. Figure 1 shows the conceptual framework of this study.
3 Methodology To examine the impact of the digital economy on the logistics performance-growth link, this study followed a model similar to others [5]. The externalities associated with logistics performance were modelled as follows: G D Pi,t = β0 + β1 D E i,t + β1 L Pi,t + β3 X i,t + μi,t
(1)
where X is a control variable. Equation (1) serves as a baseline model for estimation purposes.
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The objective of the study was to determine whether the logistics performancegrowth link in Asian countries was dependent on logistics performance. Equation (2) presents the integrated model with the interaction term LPI × DE. G D Pi,t = β0 + β1 D E i,t + β1 L Pi,t + β3 X i,t + θ1 (L P1 x D E)i,t + μi,t
(2)
where θ1 is the coefficient of the interaction term between digital economy and logistic performance. The coefficient shows the effect of the digital economy on economic growth depending on the level of logistics performance. If the coefficient of the interaction term is positive, it indicates that the logistics performance in Asian countries that are supported by digital economies will be able to increase the countries’ economic growth. The data set is based on 15 selected Asian countries over the period of 2007 to 2020. The dependent variable is measured using real GDP per capita. The important variables in this study are digital economy and logistics performance. Digital economy refers to an economy that is based on digital computing technologies, although it is increasingly perceived as conducting business through markets based on the Internet and the World Wide Web. The digital economy is also referred to as the Internet Economy, New Economy, or Web Economy. According to the OECD Digital Economy Outlook 2020, the digital economy is measured by information and communication technologies (ICT), and the Internet. Thus, we employed three indicators of digital economy, i.e. (1) Internet users, (2) fixed broadband subscribers, and (3) users of computer, communications, and other services. The study’s explanatory variables were Foreign Direct Investment (FDI), institutions, population growth, physical capital, and human capital. These variables are factors of economic growth theoretically related to FDI. A proxy for physical capital was utilised in this study, which is the ratio of gross fixed capital formations to GDP. According to [29], birth weight is a measure of human capital. The growth rate of the population was used to determine population growth. The World Development Indicators (WDI) database was used to obtain the information. Data on the effectiveness of governmental institutions, the rule of law, and the standard of regulations were taken from Worldwide Governance Indicators (WGI). For standardisation, all variables were transformed by applying the natural logarithm (Table 1).
4 Results and Discussion Having established that each of the variables was integrated of order one (1), the panel cointegration test suggested by [30] was employed. The results showed strong evidence in supporting the conclusion made earlier as the null hypothesis of no cointegration was rejected at a 1% significance level in all cases. The next step of the analysis involved examining the coefficients of the variables of interest using Dynamic OLS Estimation. The results revealed that the digital economy played a significant role on economic growth in Asian countries (Table 2).
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Table 1 Summary of data Variable
Measurement
Source of data
Growth
GDP per capita
World Development Indicators (WDI)
Institution
Rule of law
Worldwide Governance Indicators (WGI)
Population growth
Population growth rates
WDI
Physical capital
Gross fixed capital formation to GDP
WDI
Human capital
Life expectancy at birth
WDI
Logistics performance index
Overall score of logistics performance
WDI
Digital economy
Internet usage
WDI
Fixed broadband Usage of Computers, communication and other services
Table 2 Results of dynamic OLS estimation
Variables
Coefficient
DE-I
0.0633***(0.0000)
DE-B
0.0425**(0.0351)
DE-C
0.1047***(0.0000)
LPI
0.2877**(0.0387)
PC
−0.0334**(0.02470)
PG
5.2358***(0.0001)
HC
0.1045**(0.0470)
ROL
0.2547***(0.0002)
Note GDP = Gross Domestic Product, DE-I = Digital Economy (Internet Usage); DE-B = Digital Economy (Fixed Broadband); DE-C = Digital Economy (Computer, Communication, and Other Services); LPI = Logistic Performance Index; PC = Physical Capital; HC = Human Capital; ROL = Rule of Law
The next step of the analysis examined the role of absorptive capacity in the digital economy-growth link because the impact of logistics performance on growth depends on the level of technology in host countries. Specifically, the main objective of this study was to examine the role of the digital economy in moderating the impact of logistics performance on economic growth. The result is presented in Table 3. To test this hypothesis, interaction specification was estimated. Having the interaction specification in the estimation between digital economy and logistics performance, the results showed that logistics performance played a significant role in boosting
466 Table 3 Estimation of long run coefficients
N. N. Nordin et al.
Variables
Coefficient
DE-I
0.3091***(0.0000)
DE-B
0.3592**(0.0000)
DE-C
0.1577***(0.0000)
LPI
0.3757***(0.0000)
HC
0.2548*(0.0702)
ROL
−0.2578(0.2226)
RQ
−0.6833***(0.0000)
GE
−0.0176(0.1514)
LPI × DE-I
0.8758***(0.0000)
LPI × DE-B
0.3151**(0.0293)
LPI × DE-C
0.2854*(0.0500)
Note GDP = Gross Domestic Product, DE-I = Digital Economy (Internet Usage); DE-B = Digital Economy (Fixed Broadband); DE-C = Digital Economy (Computer, Communication, and Other Services); LPI = Logistic Performance Index; PC = Physical Capital; HC = Human Capital; ROL = Rule of Law
Asian economic growth. The coefficient of the interaction term involving internet usage was 0.8758 at a 1% significance level. The second interaction involving fixed broadband usage indicated a positive and significant effect at 0.3151, which was lower than internet usage. The third proxy for digital economy was the usage of computers, communication, and other services. The coefficient value was 0.2854 at a 10 per cent significance level. Thus, the findings indicated that the digital economy played a significant role in moderating the effect of logistics performance on Asian economic growth.
5 Conclusion The results showed that the function between logistics performance and the digital economy had a significant impact on economic growth. For the Asian nations under consideration, the performance of the digital economy and logistic performance are crucial to growth [31]. The development of the digital economy in host countries has a bearing on the impact of logistics performance on Asian economic growth. These results are in line with the emerging belief that the digital economy requires an absorptive ability to fully benefit from logistics performance [19, 5, 22]. This study provided empirical evidence that the level of digitalisation in Asian nations is the origin of the establishment and growth of the economies’ ability to conduct logistics. The study demonstrated that specific digitisation elements have a
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considerable impact on a country’s logistics performance. A high degree of technological and digital preparedness are needed to deploy Industry 4.0 components in logistical procedures. This insight was obtained from the performance of the Asian nations for two indices, i.e. DE-I and LPI. In a broader sense, the usage of Internet services and the integration of digital technologies influence the efficacy of logistics and efficiency of logistical services. The findings also showed that government policies must place strong emphasis in providing fundamental conditions for digital transformation in business and society, such as human capital and ICT knowledge. To enhance a nation’s logistics performance, the government should advance digital connections by supporting fixed broadband and 5G coverage.
References 1. Hofmann, E., & Rüsch, M. (2017). Industry 4.0 and the current status as well as future prospects on logistics. Computers in Industry, 89, 23–34. 2. Bernard, A. B., Redding, S. J., & Schott, P. K. (2007). Comparative advantage and heterogeneous firms. The Review of Economic Studies, 74(1), 31–66. 3. Deloitte, B. (2014). Comparative study on EU Member States’ legislations and practices on food donations. 4. Manyika, J., Lund, S., Bughin, J., Robinson, K., Mischke, J., & Mahajan, D. (2016). Independent-Work-Choice-necessity-and-the-gig-economy. McKinsey Global Institute. 5. Moldabekova, A., Philipp, R., Reimers, H. E., & Alikozhayev, B. (2021). Digital technologies for improving logistics performance of countries. Transport and Telecommunication, 22(2), 207–216. 6. Kayikci, Y. (2018). Sustainability impact of digitization in logistics. Procedia Manufacturing, 21, 782–789. 7. Lin, C. Y., & Ho, Y. H. (2009). RFID technology adoption and supply chain performance: an empirical study in China’s logistics industry. Supply Chain Management: An International Journal. 8. Ekici, S. ¸ Ö., Kabak, Ö., & Ülengin, F. (2019). Improving logistics performance by reforming the pillars of Global Competitiveness Index. Transport Policy, 81, 197–207. 9. Gani, A. (2017). The logistics performance effect in international trade. The Asian Journal of Shipping and Logistics, 33(4), 279–288. 10. Kos-Łab˛edowicz, J., & Urbanek, A. (2017). Do Information and Communications Technologies influence transport demand? An exploratory study in the European Union. Transportation Research Procedia, 25, 2660–2676. 11. Cruz-Jesus, F., Oliveira, T., & Bacao, F. (2012). Digital divide across the European Union. Information & Management, 49(6), 278–291. 12. Greco, S., Ishizaka, A., Tasiou, M., & Torrisi, G. (2019). On the methodological framework of composite indices: A review of the issues of weighting, aggregation, and robustness. Social Indicators Research, 141(1), 61–94. 13. Noussan, M., & Tagliapietra, S. (2020). The effect of digitalization in the energy consumption of passenger transport: An analysis of future scenarios for Europe. Journal of Cleaner Production, 258, 120926. 14. Ole´sków-Szłapka, J., & Stachowiak, A. (2018, September). The framework of logistics 4.0 maturity model. In International conference on intelligent systems in production engineering and maintenance (pp. 771–781). Springer, Cham. 15. Bhandari, R. (2014). Impact of technology on logistics and supply chain management. IOSR Journal of Business And Management, 2(17), 19–24.
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Systematic Mapping Study and Literature Review on Organisational Agility Octaviandy Giri Putra and Amalia Suzianti
Abstract Agility is a fundamental feature for an organisation that is required to cope VUCA era as an opportunity. Though the agility concept was developed dominantly in information technology industries, many sectors have already applied this concept as well. The importance of agility in the VUCA era could be represented by the growth rate of research studies within the last decade. The urgency of the agility concept leads organisations to recognise what should be prepared immediately to be agile. The purpose of this study was to deliver a systematic mapping study and a literature review on organisation agility. Multiple analysis methods were used to derive the comprehensive findings and research deficiencies in organisation agility. The study started with identifying relevant publications in the Scopus database. The keywords “organisation agility” and “agile organisation” were used to harvest the total 413 publications. Some inclusion-exclusion criteria were applied to derive the final 119 publications to be reviewed. VOSviewer was utilised for visualising and analysing publication trends, then completed a detailed review of all complete 119 publications. The results showed that the organisation agility research areas were vast and had connections with many things where the research areas could be clustered into four. The previous studies highlight the limited focus on assessing organizational agility maturity in current conditions, and future research on how evaluating agility maturity based on organizational requirements will be a good opportunity. Keywords Agility · Agile · Organisational agility · VUCA · Scopus database
O. G. Putra (B) · A. Suzianti Department of Industrial Engineering, Faculty of Engineering, University of Indonesia, Depok, Indonesia e-mail: [email protected] A. Suzianti e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_41
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1 Introduction The organisational agility study first appeared in the early 1980s [1] and significantly increased with the emergence of the agile manifesto in 2001 [2]. Currently, the studies are still growing due to the importance of agility for an organisation within the Volatility, Uncertainty, Complexity, and Ambiguity (VUCA) era. Agility is defined as the capability to develop and quickly apply flexibility, nimbleness, and dynamic ability that is considered an organisation’s core characteristic [3, 4]. Since changes are unavoidable things, agility is a fundamental feature as an organisation needs to cope with and change VUCA as an opportunity [5]. The agility concept was developed in many organisations specifically in the information technology (IT) industry. Ordinarily, IT is considered an instant and appropriate solution for organisations to cope with massive changes [6]. However, agility study has been evolving rapidly not only in IT, but also in other sectors in line with the growth of agility needs for an organisation. Currently, everyone mentions agility frequently, and it becomes a well-known expression to utter a quick reaction in resolving a problem. The importance of the agility concept leads organisations to recognise what should be prepared immediately to be agile. Generally, the organisation’s agility level is defined by the organisation’s agility maturity [7–9]. It is categorised as a quantitative concept, thus an organisation could assess its agility level followed by organisational strategies to enhance the agility level. An organisation could derive agility maturity by considering agility drivers, agility enablers, and agility capabilities within certain agility dimensions [1]. However, previous studies have revealed that organisational agility has a strong relationship with many variables. Hence, organisational agility studies have wide research scopes with lots of definitions and dimensions [10–13]. Organisational agility research is one of the popular research topics based on Scopus data. Nevertheless, there are very limited studies discussing on mapping of organisational agility [14–16]. The objective of this study was to deliver a systematic mapping study and a literature review on organisational agility. The previous studies mainly focused on agility frameworks and concepts lacked comprehensive mapping in identifying the gaps in organisational agility studies. Therefore, a mapping study is urgently needed to establish a comprehensive discussion that could describe where the organisational agility studies should be focused on. Many studies that used bibliometrics analysis have been reported. Most of the studies used descriptive analyses that could describe the current research trends. This paper presents the current research trends and is completed with visualisation and literature review analysis that could show the research deficiencies in organisational agility. It would be a great benefit for researchers as well as industries. In the research area, the current work would complete previous studies on organisational agility topics. Meanwhile, for industries, this study would provide an analysis of what industries should do to accelerate the implementation of organisational agility. To implement the purposes and to derive the benefits, a suitable tool called VOSviewer was applied and combined with a common descriptive statistics tool. The
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tool presented a visualisation map based on bibliometrics using a specific algorithm [17]. The results showed a relationship between organisational agility with several related factors that would be a comprehensive analysis for researchers and industries.
2 Organisational Agility Organisational agility is defined as the capability of an organisation to implement flexibility, nimbleness, and dynamic ability [4]. Organisational agility is structurally conceptualised by Walter’s organisational agility framework, as shown in Fig. 1 [1]. The framework is a result of a systematic literature review of previous organisational agility frameworks. In Walter’s framework, organisational agility is built by four categories: agility drivers, agility enablers, agility capabilities, and agility dimensions [1]. All those categories are linked to each other, which eventually would affect the organisation’s agility level. Agility drivers and agility enablers affect agility capabilities. Subsequently, agility dimensions are influenced by agility capabilities. Ultimately, all of them would affect the organisation’s agility.
Fig. 1 Organisational agility framework [1]
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2.1 Agility Drivers Agility drivers are explained as factors that drive an organisation to be agile. Generally, agility drivers in an organisation comprise two categories: internal drivers and external drivers. The internal drivers encompass changes in production variables, workforce expectations, continuous improvement strategy, Mergers and Acquisitions (M&A) strategy, performance evaluation, competition strategy, and organisational structure [18–20]. Meanwhile, the external drivers involve customer needs, competition, market changes, technology innovation, social factors, competitiveness, product customisation, and third parties [7, 9, 21, 22].
2.2 Agility Enablers Agility enablers elaborate on factors that support an organisation to be agile. This kind of research is the most popular one in organisational agility research. Organisational agility could be linked with anything that is expected to enable it. The circumstances create a great variety of enablers that have been identified in previous research, like information systems [23–27], knowledge management [28], human [29, 30], technology [31], competitiveness [31], digitalisation [32], knowledge transfer [33], business process [34], and marketing sensitivity [7].
2.3 Agility Capabilities Agility capabilities are defined as factors that an organisation should recognise and own to be agile. This factor, like agility enablers, was specified differently in each previous research. Responsiveness, competency, flexibility, and speed were first defined as agility capabilities [9]. Moreover, the culture of change was included in the following research [8]. Subsequently, various considerations like agile values, technology, workforce, management of changes, collaboration and coordination, and flexible structures were inserted to complete attributes of agility capabilities [35].
2.4 Agility Dimensions Agility dimensions are arguably not fully recognised by researchers as one of the organisation’s agility categories. The dispute occurred due to the unclear function of agility dimensions [1], and it also could be considered as agility capabilities [9]. Generally, agility dimensions are defined as an organisation’s basic foundations to derive competitiveness. The capability could be considered as a should-have item
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for an organisation, such as management agility, product-design agility, processingmanufacture agility, partnership-formation agility, and the integration of information systems [36].
2.5 Agility Maturity A formal term for organisational agility level is agility maturity. Organisational agility is a capability of an organisation that could be assessed by some approaches. The approaches from previous studies that had been identified were the quantitative method, qualitative method, as well as mixed method. Some methods that have been applied are as follows: fuzzy [31, 37–42], Analytic Hierarchy Process (AHP) [38], goal program-ming [38], questionnaire [9, 35, 43], Quality Function Deployment (QFD) [40], business process review [34], and path analysis [44]. Each method describes clear information on the agility maturity level of an organisation. Hence, all methods could be an alternative to assessing an organisation’s agility maturity level.
3 Methods A systematic literature review was performed to achieve the purposes of this research. The literature review helped the researcher derive the topics’ frameworks and limitations that would benefit developing the following research [45]. The current work followed the guidelines of established systematic literature reviews within the literature. The research questions to address in this mapping were as follows: 1. What are the connections between organisational agility research areas? 2. What are the current research focus areas of organisational agility studies? 3. How do the positions of organisational agility maturity study?
3.1 Selection of Database and Data Collection Process The research started with selecting an appropriate research database. The database must have high-quality and complete data from scientific publications. The current study was focused on Scopus as a database. Scopus is one of the most comprehensive publication metadata [46]. Generally, the Scopus database could already describe the big picture of a research topic [46] and provide peer-reviewed journals to ensure the quality of published journals.
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The searches were full-text searches to identify the related titles, abstracts, and keywords. The initial filter setting in Scopus was based on (TITLE-ABSKEY (“organisational agility” OR “agile organisation”) AND (agile AND agility)). The setting covered all possible topics about organisational agility and its related topics in a total of 413 publications.
3.2 Inclusion and Exclusion Criteria The initial results harvested 413 publications, which included journals, conference papers, proceedings, books, and book chapters. Conference review and editorial notes were also included to have all related keywords considered in this systematic literature review. Several exclusion and inclusion criteria were developed to derive comprehensive data gathering to identify the relevant results. The 413 harvested publications were filtered using the inclusion and exclusion criteria using the steps described in Fig. 2. All the criteria were applied sequentially. Eventually, the filtering process resulted in 119 articles (summarised in Appendix A) being included in the mapping study using VOSviewer and continued with a detailed literature review of all complete articles.
Fig. 2 Flowchart of filtering process
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4 Results and Discussions The extracted and sorted literature was analysed with descriptive statistics and visualisation. The descriptive statics and visualisation assisted in understanding the ongoing studies concerning organisational agility in the last eleven years (2011–2022). The analysis comprised five parts: research publication trend, geographical contribution, research subject area, research cluster, and publication polarisation.
4.1 Research Publication Trend The research publication trend showed that there was a sharp increase from 2011 to 2022 with a peak in 2021 as 18 articles were published, as shown in Fig. 3. An exception happened in 2015 with only 2 articles published. The number of publications in 2020 was 15 articles, showing a decrease compared to the previous year, which was during the pandemic. This was the most possible reason since everyone was still trying to adapt to the new normal. However, the number of articles in 2021 and 2022 slightly increased and represented a positive trend in organisational agility research in the last eleven years. The situation was allegedly related to the increased agile development implementation [14, 47] as well as an increased awareness of the level of agility needs in an organisation [34, 41]. Meanwhile, from the perspective of publication type, as shown in Fig. 4, most of the publications were journal articles with a 59% share, followed by conference papers with a 34% share. Moreover, reviews, book chapters, notes, and others in total had only about a 7% share.
Fig. 3 Research trends from 2011 to 2022
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Fig. 4 Last 11 years (2011–2022) publication type
A journal article publication needs more review process than a conference paper. Some steps must be completed before an article is published in a journal. A journal article should be more comprehensive and must pass a demanding peer-review stage for quality assurance purposes. Since journal articles took the lead by publishing about 70 articles (58.8%), it could be implied that organisational agility study was a high concern for many researchers.
4.2 Geographical Contribution Since organisational agility is considered a modern company’s core characteristic [41], some countries focus on it extensively. The number of developed studies in certain countries could represent how they are concerned about organisational agility issues. As described in Fig. 5, the USA (20 articles) led the studies regarding organisational agility, followed by India (15 articles), Germany (10 articles), Australia (8 articles), the UK (7 articles), Indonesia (6 articles), and Iran (6 articles). Other than these, China, France, and the Netherlands were in the last positions with five articles each.
4.3 Research Subject Area The literature review showed how organisational agility was a general issue currently managing organisations. As shown in Fig. 6, the subject area was spread out to more than ten different areas. Business management, computer science, engineering, and
Systematic Mapping Study and Literature Review on Organisational Agility
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Fig. 5 Contribution by country
Fig. 6 Organisational agility subject area
decision science were the top four areas leading to the domination of organisational agility implementation.
4.4 Research Cluster and Polarisation Research cluster analysis is arguably a quite different way to analyse the connectivity of the research focuses with another topic. In the organisational agility study, four
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O. G. Putra and A. Suzianti
Fig. 7 Organisational agility research cluster and polarisation map
clusters were identified using VOSviewer. Organisation agility, agile manufacturing, agile software development, and workforce agility were this study’s four clusters, as shown in the red circles of Fig. 7. However, there was an additional related cluster named dynamic capabilities, which had many studies and a quite robust relationship with agility. The blue circle in Fig. 7 shows some related variables that described dynamic capabilities including agility. The cluster representation in Fig. 7 is a proven match with previous studies [11, 16] that mentioned four typical clusters in the organisational agility study. Moreover, a detailed review of all complete articles showed that the concepts, variables, and attributes from those four clusters were quite similar. Hence, the derived clusters were a big picture of organisational agility studies that could complete each other theoretically and practically. Polarisation mapping using VOSviewer, as shown in Fig. 7, convinced the generality of the agility study. The word “organisational agility” or “agile organisation,” “work agile manufacturing,” “agile software development,” and “workforce agility” as dominant keywords were polarised extensively. Based on the detailed literature review of all complete articles, it was found that most studies were about seeking a relationship between organisational agility with a particular variable. Organisational agility could be associated with many variables, e.g., knowledge management, leadership, learning, maturity assessment, culture, dynamic capabilities, and innovation. Polarisation mapping in Fig. 7 is strictly strengthening the literature review that was conducted. Another rationale for the polarisation being spread out extensively was due to the type of organisational agility studies. In addition to the relationship study, the agility studies were also focused on agility frameworks and/or concepts. Building a framework means identifying all connected elements and all attributes of each element. The scope looks vast when all those elements and attributes have been
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built into a framework. With many built frameworks in the reviewed articles, it was reasonable that the polarisation mapping connected to organisational agility encompassed many linkages.
4.5 Detail Literature Review Mapping A detailed literature review was conducted on the 119 selected publications, as listed in Appendix A. The review outputs were summarised considering the type of research, research category, research object, methodology, and type of agility study, as shown in Fig. 8. Based on the map, the previous studies in agility were mostly empirical research that primarily focused on relationship analysis between organisational agility and certain dependent variables. Moreover, most of the object studies were in the IT industry. Furthermore, agility studies had lots of methodologies including quantitative, qualitative, and mixed methodologies. The review showed that the number of research on agility maturity was still limited. Organisational agility maturity represents the organisational agility [43]. An organisation’s agility level could be estimated by focusing on the organisation’s agility maturity. Unfortunately, the existing agility maturity studies mainly focused on assessing the agility maturity level of the existing organisation condition. This circumstance has consequences in that the assessment would just be a common measurement that provides information on the current maturity level. However, the agility maturity assessment would be more valuable if it could estimate organisational Various Firm
3, 7, 8, 10, 34, 44, 46, 51, 60, 64, 71, 94, 115
Automotive
70, 107
Bank
33, 86
Clothing
Military
Conceptual & Empirical
SME
49, 117
Telecommunication
9, 43, 96
22, 45, 81, 93, 110
Oil & Gas
104
36
Railway
114
Dairy
42
MNE
29, 35
Food
79
Ceramic & Tile
77
Government
Consumer Goods
69
Venture Capital
50
Start-up
Pharmaceutical
16, 19, 25, 28, 41, 56, 58, 61, 62, 72, 80, 82, 83, 84, 88, 90, 95, 97, 98, 100, 102, 105, 116 37, 38, 40, 68, 85, 101, 103, 118
Manufacturing
78
Healthcare
Information Technology
Industries
University
30, 66 1, 39, 108 27 26, 29, 33
15, 16, 18, 24, 28, 36, 38, 44, 61, 68, 75, 87, 94, 95, 118
Empirical 1, 2, 3, 7, 8, 9, 10, 12, 17, 19, 22, 27, 29, 30, 33, 34, 35, 37, 40, 41, 42, 45, 46, 49, 52, 56, 60, 62, 64, 66, 70, 71, 72, 77, 78, 79, 80, 81, 83, 85, 86, 88, 90, 93, 96, 97, 98, 100, 101, 103, 104, 107, 108, 112, 113, 114, 115, 116
Conceptual 4, 5, 6, 11, 13, 14, 20, 21, 23, 25, 26, 31, 32, 39, 43, 47, 48, 50, 51, 53, 54, 55, 57, 58, 59, 63, 65, 67, 69, 73, 74, 76, 82, 84, 89, 91, 92, 99, 102, 105, 106, 109, 110, 111, 117, 119
Type of research
Organization Agility
Methods
Questionnaire
Conceptual Study
Maturity Assessment 2, 34, 37, 42, 45, 66
Framework Development
Agility Study
Relationship Study 1, 3, 8, 9, 10, 14, 19, 22, 27, 28, 29, 30, 35, 36, 38, 39, 40, 41, 43, 49, 53, 54, 55, 58, 59, 60, 62, 68, 69, 72, 73, 77, 81, 83, 86, 90, 91, 93, 94, 95, 96, 98, 100, 104, 105, 112, 113, 114, 115, 116
37
34
Q-Sort
36
EDITTDA Method
61
Cluster Analysis
95
Critical Realist
27
Graph Theory
Business Process Analysis
117
AHP
Case Study Analysis
13, 16, 18, 31, 47, 48, 61, 79, 87, 106, 117, 118
Goal Programming
Performance Analysis
Interview 4, 5, 6, 7, 11, 12, 15, 17, 20, 21, 23, 24, 25, 26, 32, 33, 44, 46, 50, 51, 52, 56, 57, 63, 64, 65, 67, 70, 71, 74, 75, 76, 78, 80, 82, 84, 85, 88, 89, 92, 97, 99, 101, 102, 103, 107, 108, 109, 110, 111, 119
27, 28, 29, 30, 31, 38, 49, 52, 56, 58, 61, 64, 68, 70, 77, 83, 85, 86, 100, 104, 108, 113, 115, 118
33, 44, 50, 66, 71, 75, 78, 87, 96, 112, 117 49, 52, 61, 70, 76 43, 44, 52, 55, 71, 82, 97, 101, 105
QFD
79
SEM
1, 28, 64, 72, 86, 90, 112
Total interpretive structural model (TISM)
5, 81
Factor Analysis
MICMAC
5, 81
Path Analysis
Qualitative Analysis
Literature Review
Fig. 8 Organisational agility literature review research map
34, 41, 43, 46, 60, 72, 80, 82, 84, 110 4, 6, 20, 21, 23, 25, 26, 32, 39, 54, 63, 65, 67, 74, 91, 92, 106
107 37, 114
Fuzzy PLS
3, 70, 95 93 2, 34, 40, 43, 103 28, 72, 98, 116
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agility based on organisation needs. Thus, an organisation could focus on a certain agility factor without trying to fulfil all the agility factors.
5 Conclusions The purposes of the current systematic literature review were to derive connections between organisational agility research areas, to define research focus areas of organisational agility studies, and to explore the positions of organisational agility maturity studies. A total of 413 publications were first considered. After applying the inclusion and exclusion criteria, 119 publications were finally reviewed. All filtered publications regarding organisational agility within 2011–2022 were mapped to answer the purposes of this study. The results of this study showed that the top four organisational agility research subject areas were business management, computer science, engineering, and decision science. Organisational agility research areas were vast and could be linked with many things. Furthermore, the research areas could be clustered into four: organisational agility or agile organisation, agile manufacturing, agile software development, and workforce agility. To answer the first research question, the derived clusters were a big picture of organisational agility studies where each concept and variable could complete each other theoretically and practically. As the answer to the second research question, the results also showed that most organisational agility studies focused on finding the relationship between organisational agility and particular variables. Moreover, the second most studied topic was the development of organisational agility concepts and frameworks. Based on publication types, 60% of documents were journal articles. The number showed that many researchers were concerned about organisational agility issues. Therefore, the quality of publications must be maintained by publishing them in reputable journals. At the same time, the geographical analysis indicated that the USA and India were the two countries most concerned about agility. This circumstance was in line with the growth of the information technology industry in both countries as the sector that applied the most agile concepts in the industry. Meanwhile, to answer the third research question, it could be implied that the previous studies about organisational agility were still limited in the last eleven years, especially about organisational agility maturity. Moreover, the previous studies on organisational agility maturity were limited to only discussing the assessment of the organisational agility maturity level of the existing organisation’s condition. Future research assessing agility maturity based on organisation needs will be more valuable. This kind of study would give a focus and appropriate recommendation for an organisation to be agile easier. Lastly, the result of this study has emerged as an enormous opportunity for the researchers to explore the studies on organisational agility more deeply. Moreover, this literature review proved that comprehensive research mapping and literature review could be used to evaluate the existing research activities. Multiple analyses
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481
completed with visualisation and literature review analysis could show the research deficiencies and potential research gaps in organisational agility.
Appendix A List of Selected Publications Related to Organisation Agility No
Author(s)
Year
Title
Method
1
Wibowo et al.
2022
The Approach of Social Innovation Agility: A Dynamic Capability Strategy
Quantitative
2
Subramanian et al.
2022
Assessment Framework for Agile HRM Practices
Quantitative
3
Sheng et al.
2022
Operational coordination and mass Quantitative customization capability: the double-edged sword effect of customer need diversity
4
Saarikallio et al.
2022
Quality culture boosts agile Qualitative transformation—Action research in a business-to-business software business
5
Rane et al.
2022
Developing strategies to prioritise and Mixed mitigate the risks occurring in project management practices for an agile organisation - a perspective of Industry 4.0 technologies
6
Kirilmaz
2022
Management of Agile Organizations and Agile Teams
Qualitative
7
Ling et al
2022
Agility of facilities management organizations during the COVID-19 pandemic: lessons learnt for future pandemics
Mixed
8
Alamsjah
2022
Ambidextrous Leadership of Publicly Listed Companies during Turbulent Times: The Importance of Agility and Alliance Capability
Mixed
9
Susanty et al.
2022
Achieving an agile organisation in an Indonesian telecommunications company: investigation on leadership impact and mediation variables
Mixed
10
Zieba et al.
2022
The impact of knowledge risk management on sustainability
Quantitative
11
Grover
2022
Digital agility: responding to digital opportunities
Qualitative
12
Strode et al.
2022
Tensions in Organizations Transforming to Agility
Mixed (continued)
482
O. G. Putra and A. Suzianti
(continued) No
Author(s)
Year
Title
Method
13
Furda et al.
2022
Information Technology Architects in Agile Organizations
Qualitative
14
Morawiec et al.
2022
Knowledge Management Significance in Agile Organization in Lights of COVID-19 Pandemic Changes
Qualitative
15
Levallet et al.
2022
Uncovering a new form of digitally-enabled agility: an improvisational perspective
Mixed
16
Ranjitha et al.
2022
An Unique ‘Assessment Framework’ for Agility in Software Development Projects
Mixed
17
Mohagheghi et al.
2021
Organizational implications of agile Mixed adoption: A case study from the public sector
18
Tanaka et al.
2021
A distributed large-scale agile software Mixed development for multiple products and its practical evaluation
19
Mangalaraj et al.
2021
Digital Transformation for Agility and Mixed Resilience: An Exploratory Study
20
Kavitha et al.
2021
Agile Practices in Human Resource Management
Qualitative
21
Alsaqaf et al.
2021
Analyzing SAFe Practices with Respect to Quality Requirements: Findings from a Qualitative Study
Q ualitative
22
Tamtam et al.
2021
COVID-19 experience in Morocco: Modelling the agile capabilities of Moroccan Clinics
Mixed
23
Guo et al.
2021
Enterprise Architecture and Agility: A Systematic Mapping Study
Qualitative
24
Poth et al.
2021
Teamwork quality in technology-driven product teams in large-scale agile organizations
Mixed
25
Gutiérrez et al.
2021
Knowledge Sharing in Agile Settings: State of the Practice of Organizational Training
Qualitative
26
Walter
2021
Organizational agility: ill-defined and somewhat confusing? A systematic literature review and conceptualization
Qualitative
27
Kim and Lee
2021
The Venture Firm’s Ambidexterity: Do Mixed Transformational Leaders Boost Organizational Learning for Venture Growth? (continued)
Systematic Mapping Study and Literature Review on Organisational Agility
483
(continued) No
Author(s)
Year
Title
Method
28
Chatterjee et al.
2021
Adoption of artificial intelligence-integrated CRM systems in agile organizations in India
Mixed
29
Bouguerra et al.
2021
How do agile organizations contribute to environmental collaboration? Evidence from MNEs in Turkey
Mixed
30
Rahoo et al.
2021
Examining the Relationship of Knowledge Management with OrganizationAgility in General Administration of Libraries
Mixed
31
Uluda et al.
2021
Evolution of the Agile Scaling Frameworks
Mixed
32
Revutska et al.
2021
Agile approach in human resource management: Focus on generation Y
Qualitative
33
Korpivaara et al.
2021
Performance Measurement in Scaled Agile Organizations
Qualitative
34
Masilamani et al.
2021
Assessment of Organizational Agility in Software Projects
Quantitative
35
Dühring et al.
2021
The Triple Role of Communications in Qualitative Agile Organizations
36
Geiger et al.
2020
Establishing the Foundations to Measure Organizational Agility for Military Organizations
37
Patel et al.
2020
Designing of an agility control system: Quantitative a case of an Indian manufacturing organization
38
Tamtam et al.
2020
Agile workforce assessment
Mixed
39
Safitri et al.
2019
How IT Support a Government Organization’s Agility to Respond Citizen’s Changing Needs?:Literature Review
Qualitative
40
Tamtam et al.
2020
A Framework for Measuring Workforce Agility: Fuzzy Logic Approach Applied in a MoroccanManufacturing Company
Quantitative
41
Geiger et al.
2020
Exploring knowledge management in agile software development organizations
Qualitative
42
Ur Rehma et al.
2020
Assessment of Supply Chain Agility to Quantitative Foster Sustainability: Fuzzy-DSS for a Saudi Manufacturing Organization
43
Annosi et al.
2020
Learning in an agile setting: A multilevel research study on the evolution of T organizational routines
Mixed
Qualitative
(continued)
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O. G. Putra and A. Suzianti
(continued) No
Author(s)
Year
Title
44
Gerster et al.
2020
How Enterprises Adopt Agile Forms of Qualitative Organizational Design: A Multiple-Case Study
Method
45
Tamtam et al.
2020
Organizational Agility Assessment of a Moroccan Healthcare Organization in Times of COVID-19
Quantitative
46
Horlach et al.
2020
Everyone’s Going to be an Architect: Design Principles for Architectural Thinking in Agile Organizations
Qualitative
47
Alsaqaf et al.
2020
Analysing Large-Scale Scrum Practices with Respect to Quality Requirements Challenges
Qualitative
48
Winska et al.
2019
Software Development Artifacts in Qualitative Large Agile Organizations: A Comparison of Scaling Agile Methods
49
Yazdanjooei et al.
2020
Establishing Agile Organizations Mixed Through Information Technology Services Perceptions on The Quality of Information Technology Services (In Small and Medium Industries of The Alborz Province)
50
Crick et al.
2020
Microfoundations of Organizational Qualitative Agility: A Socio-Technical Perspective
51
Pulakos et al.
2019
What leads to organizational agility: It’s not what you think
Qualitative
52
Oliva et al.
2019
Barriers, practices, methods and knowledge management tools in startups
Mixed
53
Joiner
2019
Leadership Agility for Organizational Agility
Qualitative
54
Tshabalala
2019
Impact of Agile misconceptions towards organization technology competitiveness
Qualitative
55
Oliva et al.
2019
The integration between knowledge management and dynamic capabilities in agile organizations
Qualitative
56
Tshabalala et al.
2019
Maximizing the Organization’s Technology Leverage through Effective Conflict Risk Management within Agile Teams
Mixed
57
Holbeche
2019
Designing sustainably agile and resilient organizations
Qualitative
58
Patil et al.
2019
Modelling the Enablers of Workforce Agility in IoT Projects: A TISM Approach
Mixed
(continued)
Systematic Mapping Study and Literature Review on Organisational Agility
485
(continued) No
Author(s)
Year
Title
Method
59
Dubinsky
2019
Agile Exponential Software Organizations
Qualitative Mixed
60
Demigha et al.
2019
Agile and Organizational Learning
61
Nawaz et al.
2019
EDITTDA Approach for Agile Human Mixed Resource Performance in Bangalore Software Industry
62
Mihardjoa et al.
2019
Towards Co-creation Strategy and Organizational Agility based on Customer Experience Orientation to Shape Transformational Performance
Mixed
63
Demigha et al.
2019
Knowlede Sharing in an Agile Organization
Qualitative
64
Asil et al.
2019
Design and Implementation of Strategic Agility Evaluation Model with Structural Equation Modelling Approach
Mixed
65
Poth et al.
2019
Lean and agile software process improvement in traditional and agile environments
Qualitative
66
Gunsberg et al.
2018
Applying an organisational agility maturity model
Qualitative
67
Holbeche
2018
Organisational effectiveness and agility Qualitative
68
Muduli et al.
2018
Psychological Empowerment and Workforce Agility
Mixed
69
Rialti et al.
2018
Ambidextrous Organization and Agility in Big Data Era: The Role of Business Process Management Systems
Qualitative
70
Qamar et al.
2018
Can Lean and Agile organisations Mixed within the UK automotive supply chain be distinguished based upon contextual factors?
71
George et al.
2018
The amorphous nature of agile: no one Qualitative size fits all
72
Kosasi et al.
2018
Improving organizational agility of micro, small, and medium enterprises (MSME) through digital marketing strategy
Mixed
73
Rebentisch et al.
2018
Defining agile culture using topic modelling
Qualitative
74
Erdem et al.
2018
Systematic mapping study on process mining in agile software development
Qualitative
75
Yürüm et al.
2018
A comprehensive evaluation of agile maturity self-assessment surveys
Qualitative (continued)
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O. G. Putra and A. Suzianti
(continued) No
Author(s)
Year
Title
Method
76
Žitkien˙e et al.
2018
Organizational agility conceptual model
Qualitative
77
Tooranloo et al.
2018
The relationship between organisational agility and applying knowledge management
Mixed
78
Wang et al.
2018
The co-evolution of IT competence, Qualitative organisational agility and entrepreneurial action: A case study of entrepreneurial e-tailers
79
Nejatian et al.
2018
A hybrid approach to achieve organizational agility: An empirical study of a food company
Quantitative
80
Carew et al.
2017
Anti-patterns in Agile Adoption: A Grounded Theory Case Study of One Irish IT Organisation
Qualitative
81
Patri et al.
2017
Modelling the Enablers of Agile Performance in Healthcare Organization: A TISM Approach
Qualitative
82
Crick et al.
2017
Business processes in the agile organisation: a socio-technical perspective
Qualitative
83
Gren
2017
The links between agile practices, interpersonal conflict, and perceived productivity
Mixed
84
Pries-Heje et al.
2017
The SAFe way to the agile organization Qualitative
85
Dev et al.
2017
Effective human utilization in an Mixed original equipment manufacturing (OEM) industry by the implementation of agile manufacturing: A POLCA approach
86
Hamad et al.
2017
Does organizational agility affect organizational learning capability? Evidence from commercial banking
Quantitative
87
Jovanovi´c et al.
2017
Towards the development of a sequential framework for agile adoption
Qualitative
88
Kuusinen et al.
2017
Knowledge sharing in a large agile organisation: A survey study
Mixed
89
Appelbaum. et al.
2017
The challenges of organizational agility
Qualitative
90
Lowry et al.
2016
Creating agile organizations through Quantitative IT: The influence of internal IT service perceptions on IT service quality and IT agility (continued)
Systematic Mapping Study and Literature Review on Organisational Agility
487
(continued) No
Author(s)
Year
Title
Method
91
Jia et al.
2016
A commentary on: “Creating agile organizations through IT: The influence of IT service climate on IT service quality and IT agility”
Qualitative
92
Vassiliou et al.
2016
Mission success: Assured communications and agile organizations
Qualitative
93
Bahrami et al.
2016
The Mediating Role of Organizational Learning in the Relationship of Organizational Intelligence and Organizational Agility
Mixed
94
Nold et al.
2016
The performance triangle: a model for corporate agility
Mixed
95
Wendler
2016
Dimensions of organizational agility in Quantitative the software and it service industry: Insights from an empirical investigation
96
Evbota et al.
2016
Scaling up the planning game: Qualitative Collaboration challenges in large-scale agile product development
97
Skorecka
2016
Agile Enterprise: A Human Factors Perspective
98
Mao et al.
2015
How the effects of IT and knowledge Quantitative capability on organizational agility are contingent on environmental uncertainty and information intensity
99
Tolf et al.
2015
Agile, a guiding principle for health care improvement?
Qualitative
100
Singh et al.
2014
Agile knowledge management: a survey of Indian perceptions
Mixed
101
Gren et al.
2014
Work motivational challenges regarding the interface between agile teams and a non-agile surrounding organization: A case study
Qualitative
102
Bakalova et al.
2014
Standards compliance helps value creation in agile projects
Qualitative
103
Raj et al.
2014
Application of hybrid MCDM techniques for prioritising the gaps in an agile manufacturing implementation project
Quantitative
104
Yusuf et al.
2014
A study of the diffusion of agility and cluster competitiveness in the oil and gas supply chains
Mixed
105
Tuan et al.
2013
Combining maturity with agility Lessons learnt from a case study
Qualitative
Mixed
(continued)
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O. G. Putra and A. Suzianti
(continued) No
Author(s)
Year
Title
106
Wendler
2013
The Structure of Agility from Different Qualitative Perspectives
Method
107
Raj et al.
2013
A mathematical model to evaluate the Quantitative role of agility enablers and criteria in a manufacturing environment
108
Zyngier et al.
2013
Patterns of Knowledge Management leadership and delegation: Supporting an agile organization
109
Choi et al.
2013
The impact of SOA implementation on Qualitative IT-business alignment: A system dynamics approach
110
Teoh and Chen
2013
Towards a strategic process model of Qualitative governance for agile IT implementation: A healthcare information technology study in China
111
Izadpanah et al.
2012
Agility reaching in governmental organizations and their achievements
Qualitative
112
Kharabe et al.
2012
Is implementing ERP like pouring concrete into a company? Impact of enterprise systems on organizational agility
Quantitative
113
de Oliveira et al.
2012
Forecasting project performance Mixed considering the influence of leadership style on organizational agility
114
Maymand et al.
2012
Strategies for increasing the key capabilities of organization agility (Case study: Tehran Urban and suburban Railway Co.)
Quantitative
115
Chung et al.
2012
Knowledge creation and financial firm performance: Mediating processes from an organizational agility perspective
Mixed
116
Chen and Siaus
2011
Impact of business intelligence and IT Quantitative infrastructure flexibility on competitive performance: An organizational agility perspective
117
Lemrabet et al.
2011
Business-it alignment and organisation Mixed agility enabled by bpm and soa approaches interplay
118
Yauch
2011
Measuring agility as a performance outcome
119
Krouwel et al.
2011
Combining DEMO and normalized Qualitative systems for developing agile enterprise information systems
Mixed
Mixed
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Role of Finance in Moderating Technology, Innovation, and Engineering Effect on Economic Growth in Malaysia Nur Faiz Nordin , Nur Naddia Nordin , Nur Haiza Nordin , Nur Ilyana Amiiraa Nordin , and Norzalina Zainudin
Abstract A financial indicator has been a significant factor for countries to sustain long-run economic growth. To achieve economic growth, countries need to be supported by financial development. Countries with a good financial system can attract inflows of foreign investment that can gain advanced technology, improve the quality of infrastructure, involved actively in Research and Development (R&D), and innovative activity, especially for developing countries that lag behind the developed countries. Innovation is a major driver for businesses with strong engineering capabilities. Engineering will play crucial roles in managing the spending, guiding the initial scoping, informing decision-makers, managing projects, prioritising maintenance, and ensuring taxpayers get value for money. This study aimed to examine the role of finance in moderating the impact of technology, innovation, and engineering on economic growth in Malaysia. The estimation data was from 2000 to 2020. The empirical analysis involved the estimation using Autoregressive Distributed Lags (ARDL) approach. The empirical results revealed that finance played an important role in moderating engineering activity in influencing Malaysia’s economic growth. This suggests that Malaysia with a better financial system can further enhance its engineering activity and eventually the economic growth in long-run. Keywords Finance · Engineering · Innovation · Technology · And growth
1 Introduction The allocation of resources is more efficient when the financial system is wellfunctioning. Financial intermediaries might help entrepreneurs expand their business by offering lower interest rates and easier borrowing terms because they can N. F. Nordin · N. N. Nordin (B) · N. H. Nordin · N. I. A. Nordin Faculty of Entrepreneurship and Business, University Malaysia Kelantan, Kota Bharu, Malaysia e-mail: [email protected] N. Zainudin Faculty of Human Ecology, University Putra Malaysia, Seri Kembangan, Malaysia © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_42
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evaluate the investment projects. By evaluating the risks associated with different investment opportunities, financial intermediaries can determine whether the funds should be allocated to these opportunities. By assessing the risks associated with different investment opportunities, financial intermediaries channel funds to the most promising ones. Consequently, the economy may experience an expansionary effect because of improved investment quality. Due to their ability to acquire relevant information quickly, financial markets can serve as a better resource allocation channel than financial intermediaries for funding new innovative investment projects. As financial intermediaries become more widely available, monitoring costs may decrease. A proper financial arrangement will reduce monitoring costs with the assistance of financial intermediaries. Consequently, corporate controls are improved, and economic growth may be positively influenced. As an important role of finance on growth, the neo classical growth theory also stresses the physical capital, or also known as physical infrastructure, which plays a vital role in economic growth. There are two categories of physical infrastructure, which are economic infrastructure and social infrastructure. Pioneer economists [1] have listed economic infrastructure to include telecommunications, roads, electricity, and irrigation, whilst social infrastructure to include sewage systems, hospitals, and school facilities. The development of infrastructure capital indicates an improvement in long-term economic growth [2]. Other key components to sustain economic growth are technology and innovation, which are complementary factors [3, 4]. Innovation may affect economic development through infrastructure development [5, 6], and technology and innovation are the engines for economic growth [7]. Thus, infrastructure development should be weighted more on policy development. A good development infrastructure has often been seen to attract foreign investors, attract business activity, and increase productivity [8], besides reducing the poverty rate [9] and enabling environmental sustainability. The impact of the engineering sector on the economy is even more significant when considering how it can accelerate business growth, improve public sector efficiency, create jobs, develop innovations, conduct research, and stimulate economic growth. The engineering industry is one of the foremost innovators, investing heavily in research and development (R&D). Engineers will be at the forefront of this growth as a country transition from manufacturing to a knowledge-based economy over the next few years, and innovation will certainly be the biggest opportunity for our nation. Engineering entails the planning, construction, and maintenance of public infrastructures such as roads, trains, ports, water, electricity, and gas. Engineers design and create goods, processes, and systems that benefit the nation. As a part of their role, engineers also assess feasibility, design structural and systemic requirements, control damage and maintain systems, and monitor and address quality and safety concerns. Whether tackling everyday problems or extraordinary challenges, engineers develop real-world solutions.
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Innovation is a major driver for businesses with strong engineering capabilities. Companies with existing engineering know-how are the first ones to approach. In the innovation process, engineers are ideally placed to use their knowledge of mathematical and physical theories to manage the long- and short-term benefits and risks. They are central to the commercialisation process of R&D. Using their technical expertise and systematic thinking, they come up with innovative solutions to old problems. Their skills and know-how enable businesses to disseminate new technologies and create new products, procedures, and services. These factors can differentiate one business from another, which ultimately determines the success of a business. Engineering will play a crucial role in managing this spending, guiding the initial scoping, informing decision-makers, managing projects, prioritising maintenance, and ensuring taxpayers get value for money. Engineering decisions ensure that infrastructure is used more effectively, resulting in better-valued outcomes that meet community needs. Whilst public agencies and private consultants contend that fewer engineers in the government sector contribute to waste, engineers already play an essential role in the delivery and management of infrastructure. Despite the difficulty of putting a dollar figure on the value that engineering provides to the public sector, it is possible to evaluate the present level of waste that occurs due to the lack of engineering investment in the public sector. The ability to innovate is largely determined by our engineering capabilities. In the coming years, innovation will become increasingly important as our industries and companies compete in a more diversified and globalised economy. A strong engineering skill base and our innovative capability are essential for our successful transition to a knowledge-based economy. A great deal of our nation’s prosperity and economic strength have already been contributed by engineers. Innovation will increase this contribution significantly in the coming decades as the importance of innovation grows. Innovation and science are critical for every nation to establish new sources of growth, retain high wages, and seize opportunities for economic growth. Research and innovation are drivers of both productivity and economic growth as the United States demonstrates with half of the economic growth in the last 50 years attributed to scientific research. In achieving economic development, it is not enough with the development of infrastructure only. Instead, better conditions of the transportation system, digital infrastructure, communication infrastructure, knowledge dissemination, education, training, R&D, and development of human capital are a must to boost the country’s productivity. To achieve these, engineering appears to be an important sector to develop and shape those economic indicators in achieving long-run economic growth. Thus, the main focus of this study was to empirically examine the role of finance in moderating the impact of technology, innovation, and engineering on economic growth in Malaysia. Using Autoregressive Distributed Lags (ARDL) approach, the framework of this study used various indicators of technology, innovation, and engineering. The estimation data were examined for short run and long-run from 2000 to 2020 to provide a different analysis. The sources of indicators of technology, innovation, and engineering were gathered from the World Bank.
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The rest of this paper is organised as follows. Section 2 provides a discussion on the past literature. The model specification, data description, and econometric analysis used in the present study are discussed in Sect. 3. The details of results and discussions are presented in Sect. 4. Finally, in Sect. 5, we present conclusion, limitation of study, policy recommendation, and recommendation for future study.
2 Literature Review To promote economic growth, the financial system of a country is crucial. It distributes money (such as credit and loans) to the many economic agents who require it for beneficial purposes. A financial system is a collection of different organisations, markets, tools, and operators that collaborate to deliver financial services within an economy. Numerous empirical studies have demonstrated the link between long-term economic growth and financial development [10–15]. However, it is unclear how access to finance impacts growth. It is obvious that having access to outside funding may help with capital formation. On a larger scale, however, historians have determined that invention and technological advancement are the primary factors behind material growth over a long period of time [16]. Given the significance of technical progress for growth, it is crucial to investigate whether financial development influences growth by encouraging new-to-firm innovation and raising efficiency in emerging nations. If the financial system plays a significant role in providing funds to businesses that are inventing or reorganising their operations to make them more efficient, such an effect would develop. Below, we further discuss whether having access coming from external finance is linked to better rates of innovation. Financial markets and financial institutions are important elements of innovation ecosystems [17]. An innovation ecosystem consists of the following elements: actors (government, universities, industry, entrepreneurs, financial system, customers, and civil society), capital (financial assets given by some actors), infrastructure (physical and technological conditions), regulations (laws and norms that outline the innovation ecosystem), knowledge and ideas, and capital (intentional thoughts that spur innovation actions) [18]. Strong financial institutions offer efficient services that account for inter-regional disparities in growth [11]. Effective financial markets are necessary to make funds accessible for private-sector investment from sources including loans from a solid banking sector, well-regulated stock exchanges, venture capital, and other financial products to create a successful innovation ecosystem. By supporting early-stage entrepreneurs, venture capital plays a significant part in innovation financing. For instance, there is a complementary link between public support of university research and venture capital in encouraging innovation and the formation of new enterprises [19]. This suggests a significant relationship between public research funding and
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private financial intermediation in fostering entrepreneurship and innovation. Moreover, well-organised financial markets have a greater impact on innovation in developing nations than in industrialised nations, as well as in markets with stronger shareholder protection and less creditor protection [11]. Additionally, nations with stronger capital markets than money markets have better success spurring innovation [11].
3 Methodology This study used the Autoregressive Distributed Lag (ARDL) approach to capture the role of finance in moderating the influence of technology, innovation, and engineering on economic growth in Malaysia [20]. The method was chosen because it was suitable in research with a limited number of samples. The ARDL approach was used to estimate long- and short-term associations [21]. In examining the linkages between finance, technology, innovation, and engineering, we formulated the impact of finance as follows: GDPt = β0 + β1 Fint + β2 Innot + β3 Techt + β4 Engt + μt
(1)
To examine the moderating effect of finance, the following model was used: GDPt = β0 + β1 Fint + β2 Innot + β3 Techt + β4 Engt + β5 Fint xInnot + β6 Fint xTecht + β7 Fint xEngt μt
(2)
The description of the variable, its measurement, and the hypothesised relationship with the dependent variables are presented in Table 1. Table 1 Variables in the study Variable
Abbreviation
Measurement
Sources
Economic growth
GDP
Calculated using the actual GDP’s yearly percentage change
World Development Indicator (WDI)
Finance
Fin
Foreign direct investment
WDI
Innovation
Inno
Innovation index
WDI
Technology
Tech
Research and development (R&D)
WDI
Engineering
Eng
The quality of infrastructure
WDI
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4 Result and Discussion The ADF test was used to execute a unit root test prior to predicting the long-run relationship. This was done to meet the prerequisite requirement set out by [20] that the dependent variable either be non-stationary or include a unit root at I(1) and be stationary at I(0). The results of the unit root test are shown in Table 2. To ascertain if there was a cointegration between economic development and the independent variables, this study used the bound testing methodology suggested by [20]. The Wald test’s F-statistics were computed, and they were compared against crucial values [22]. All the models’ reported F-statistics exceeded the upper bound critical value (Table 3). As a result, the findings showed that the independent and dependent variables in the models had a cointegration. At a 1% level of significance, the model under test was proven to be significant. Table 2 Unit root test
I. ADF test (level) ADF (1)
No intercept and no tend
Intercept but not a trend
Intercept and a linear trend
GDP
2.1453
−0.3722
−1.6781**
FIN
0.3356
−1.8677
−3.8911
INNO
0.7654
−1.3422
−2.7845*
TECH
0.5671
−2.0891
−3.7811*
ENG
2.9811
0.6281
−1.6711
I. ADF test (first difference) ADF (1) No intercept and no tend
Intercept but not a trend
Intercept and a linear trend
dGDP
−1.9811**
−2.8911***
−3.6711***
dFIN
−3.9734**
−4.0190***
−4.7813***
dINNO
−2.9898***
−3.1098***
−3.8911***
dTECH
−3.9871***
−4.1099*** − 4.5671***
dENG
−2.5615**
−3.1763***
−3.8711***
*, ** and *** indicates the respective 10%, 5% and 1% significant level
Table 3 Bound test
Critical value (%)
Lower bound value
Upper bound value
Computes F-statistics 7.8241
1
4.823
6.412
5
3.912
4.124
10
2.776
3.371
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The findings of this study are shown in Table 3 above, and the derived F statistic of 7.8241 surpasses the upper boundaries at 1% significance levels, demonstrating a long-term association between the variables. Long-run ARDL model with error correction and hypothesis test for direct effect The results of the bound test for cointegration showed a long-term association between the variables and are co-integrated. After that, equations for the long-run and short run were created together with the adjustment term. Automatically selected optimal delays were made using the Akaike Information Criterion (AIC) information criterion. The long-run ARDL model estimates were selected based on the Schwarz Bayesian Criterion (SBC) lag-length selection criteria. Table 4 is a summary of the regression results. Short-run ARDL model with error correction and hypothesis test for direct effect The error correction model, or ECM, was used to investigate the model’s short run dynamics. The GDP adjustment in period t was a portion of the inaccuracy in period t − 1 if the ECM coefficient was between 0 and −1. In this instance, in response to the changes in the exogenous variables, the ECM led the GDP to monotonically converge to its long-run equilibrium path. The GDP would diverge if the ECM was either positive or less than −2 [23]. As demonstrated in Table 5, the ECM was negative and statistically significant, suggesting that the long-run equilibrium was possible. This indicated that the path to equilibrium was followed monotonically by the error correcting process. Moderating effect of finance on the relationship between technology, innovation, and engineering on economic growth In long-run (Table 6), the interaction between finance and engineering was found to be highly significant at 1 per cent compared to the interaction estimation of finance and innovation, which was significant at 5 per cent significant level and finance and technology significant at 5 per cent significant level. The short run (Table 7) result also showed a significant effect of finance and engineering at 1 per cent. Technology, innovation, and engineering were all important on economic growth when they were Table 4 Estimated long-run coefficient Variable
Coefficient
t-statistics
Standard error
p-value
Intercept
−2.8991
−0.6702
0.2312
0.0188
GDP
0.3561
0.6346
0.5611
0.0005
FIN
0.0891
0.4090
0.2178
0.0003
INNO
0.6780
1.1936
0.5680
0.0018
TECH
0.2844
0.3602
0.7894
0.0035
ENG
0.8755
1.9178
0.4565
0.0002
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Table 5 Estimated short run coefficient Variable
Coefficient
t-statistics
Standard error
p-value
Error correction term (−1)
−0.4511
−0.6702
0.3119
0.0000
ΔGDP
0.7811
0.8687
0.8991
0.0008
ΔFIN
0.2981
0.3762
0.7922
0.0001
ΔINNO
0.8911
4.1254
0.2160
0.0000
ΔTECH
0.5629
0.6956
0.8092
0.0000
ΔENG
0.9572
1.2082
0.7922
0.0005
Table 6 Estimated of moderating effect on long-run coefficient Variable
Coefficient
t-statistics
Standard error
p-value
Intercept
−2.8991
7.6513
0.3789
0.0067
GDP
0.5432
9.5131
0.0571
0.0007
FIN × INNO
0.3781
0.6439
0.5872
0.0345
FIN × TECH
0.2461
0.3674
0.6698
0.0172
FIN × ENG
0.6719
2.9902
0.2247
0.0008
Table 7 Estimated of moderating effect on short run coefficient Variable
Coefficient
t-statistics
Standard error
p-value
Error Correction Term (−1)
−0.907
3.5457
0.2558
0.0009
GDP
0.0124
0.4881
0.0254
0.0047
FIN × INNO
0.1478
5.1319
0.0288
0.0104
FIN × TECH
0.2548
0.4563
0.5587
0.0045
FIN × ENG
0.5876
1.3095
0.4487
0.0000
supported with good finances. However, the coefficient of engineering was higher, indicating that with the role of finance, the impact of engineering on economic growth in Malaysia indicated a higher variation (0.6719) compared to the effect of innovation (0.3781) and technology (0.2461). This moderation finding was further supported by [24], where they proved the important role of infrastructure (in this study, a proxy for engineering) on economic growth.
5 Conclusion and Recommendations It was hypothesised that there was a significant effect of finance with the relationship between technology, innovation, and engineering on economic growth in Malaysia. From the results with or without the moderation effect, engineering played a crucial
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role on economic growth. However, innovation and technology also indicated positive and significant effects on the economic growth in Malaysia but with a smaller coefficient value. Thus, the government should encourage more engineering activities by allocating more budget to finance engineering. Policy makers should regulate the engineering sector to make it more develop to capitalise on the positive effect on economic growth. The government should provide a better financial system on engineering to boost Malaysia’s economic growth. Malaysia will be a developed country in a short time if the country is able to achieve a growing economy with double digits even more than that.
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16. Demirgüç-Kunt, A., & Maksimovic, V. (1998). Law, finance, and firm growth. The journal of finance, 53(6), 2107–2137. 17. Demirhan, D., & Babacan, Ö. (2016). The role of financing in innovation ecosystems: a panel data analysis. Ege Stratejik Ara¸stırmalar Dergisi, 7, 93–104. 18. Mokyr, J. (1990). Punctuated equilibria and technological progress. The American Economic Review, 80(2), 350–354. 19. Samila, S., & Sorenson, O. (2010). Venture capital as a catalyst to commercialization. Research Policy, 39(10), 1348–1360. 20. Nordin, N., Nordin, N., Nordin, N.I.A., Nordin, N.F. (2023). Assessing the Spillovers Effect of Infrastructure and Innovation on Economic Growth. In: Alareeni, B., Hamdan, A. (eds) Innovation of Businesses, and Digitalization during Covid-19 Pandemic. ICBT 2021. Lecture Notes in Networks and Systems, vol 488. Springer, Cham. https://doi.org/10.1007/978-3-03108090-6_30 21. Lokshin, M., & Yemtsov, R. (2005). Has rural infrastructure rehabilitation in Georgia helped the poor?. The World Bank Economic Review, 19(2), 311–333. 22. Martinus, K. (2012). City infrastructure supporting innovation. International Journal of Knowledge-Based Development, 3(2), 126–156. 23. Rajan, R., & Zingales, L. (1998). Financial development and growth. American Economic Review, 88(3), 559–586. 24. Narayan, P. K. (2005). The saving and investment nexus for China: evidence from cointegration tests. Applied economics, 37(17), 1979–1990.
A Bibliometric Analysis of Social Media Influencers Studies: What Does the Future Hold for Businesses During and After COVID-19? Purnomo M Antara , Nadhrathul Ain Ibrahim, and Rosidah Musa
Abstract Since the advent of social media platforms, the marketing world has changed dramatically. In some places, the rise of social media has shaped the roles of social media influencers. This paper aims to perform a bibliometric analysis to explore the studies on social media influencers in the Web of Science (WoS) database. This study also aims to evaluate the current status of social media influencers’ research on a person’s behaviour and the opportunities for businesses to sustain the market during and after the COVID-19 pandemic. A total of 817 journal articles from the ISI WoS database were analysed. There is a growth in publications related to this topic, and it is expected that the trend will keep increasing this year. This study is expected to give a clear picture of the current trends amongst social media influencers. This paper recommends future studies focussing on TikTok influencers since the number of TikTok users in Malaysia has increased significantly. Keywords Social media influencers · Bibliometric · COVID-19
1 Introduction Nowadays, social media is not unusual in people’s daily lives. The emergence of social media platforms such as Facebook, Instagram, Twitter, and TikTok makes them significant for both individuals and business entities. It can be seen that the marketing world has changed dramatically in the years since the advent of social media platforms. The usage of social media platforms helps businesses reach as P. M. Antara (B) Faculty of Business and Management, Universiti Teknologi MARA (UiTM) Cawangan Negeri Sembilan Kampus Rembau, Rembau, Malaysia e-mail: [email protected] N. A. Ibrahim School of Business and Accounting, SEGI College, George Town, Penang, Malaysia R. Musa City Graduate School, City University, Petaling Jaya, Selangor Malaysia, Malaysia © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_43
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many potential customers faster than traditional platforms [1]. The emergence of social media platforms creates opportunities not only for business owners but also for individuals. Individuals, specifically social media users, can use social media platforms to help business owners or brands promote products and services. Using social media platforms such as Facebook, Twitter, Instagram, TikTok, and others creates an opportunity for an individual to build their audience and influence without geographical boundaries [2]. According to Jin et al. (2019), individuals with specific interests and expertise act as social media influencers and can use social media platforms to help businesses promote their products and services. Social media influencers are “individuals who have built a large social network of people who follow them and are considered reliable tastemakers in numerous niches” (De Veirman 2017). Trends show that current marketers rely significantly on social media influencers to promote or share product and service information on social media platforms [3, 4]. The trends will likely to increase over the years. These trends create interest amongst scholars to study topics more related to social media influencers [1, 5–8]. Therefore, this paper aims to identify the common points and prospective topics in social media influencers’ research and see potential areas to be studied further. This study employs bibliometric analysis to achieve its stated objectives. Bibliometric analysis is a statistical methodology for the quantitative analysis of research publications on a specific topic using mathematical approaches [9]. The bibliometric analysis enables us to empirically document the volume, intellectual structure, and knowledge-development directions in the topic studied (Maier, 2020). Therefore, the following research questions are addressed: 1. 2. 3. 4.
What are the trends of published articles on social media influencers’ topics? What are the most productive journal and research areas on this topic? What are the most frequently addressed research topics in the domain? What are the recommendations for future research?
2 Literature Review 2.1 Social Media Growth Social media platforms are now evolving to meet more than just consumers’ wants and needs. Around 59% of the world’s population globally uses social media (Global Web Index [GWI], 2022). The number of social media users was 4.62 billion in January 2022, compared with 4.2 billion in 2021 (Smartinsignth 2022). According to the report by GWI (2022), people spend around 2 h and 29 min daily on social media. The world’s most-used social media platform is Facebook, followed by Instagram (Hootsuite, 2022), and the fastest-growing social media network platform in 2021 is TikTok, with an 18.3% growth rate (eMarketer, 2021). According to the survey conducted by GWI in 2022, 27% of consumers discover new brands or products
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through social media advertising. This indicates a sizable market to be exploited. It is because 43% of consumers search for information about products or brands through social networks. The brand and product owners are encouraged to incorporate their digital marketing strategy with social media. Collaboration with social media influencers may be needed to capture social media market share [10].
2.2 Social Media Influencers’ Impact Towards a Person’s Behaviour Social media influencers are not only celebrities. Freberg et al. (2010) explain that social media influencers can be independent third-party endorsers who shape audience attitudes through blogs, tweets, and other social media. They can include opinion leaders, celebrities, and social leaders (Harifawati et al. 2019). Saito et al. [11] said that any social media user with a high engagement rate with their followers could be an opinion leader. With the ability to influence others to buy or consume products, the opinion leader becomes the best candidate to promote brands or products (Harifawati et al. 2019). Meanwhile, celebrities are usually people who are role models for others (Muda et al. 2014). Celebrities usually become well-known in society through their achievements or success in specific fields (Harifawati et al., 2019). On the other hand, a social leader can be someone who is influential in their social network (Gulamali & Persson, 2017). As cited in Harifawati et al. (2019), the leader and follower of a social leader are both members of the same entity, connected and bonded in a community with a collective identity (Epitropaki et al. 2016). Despite the fact that research on the roles of SMI in influencing consumer behaviour is still limited, previous studies have found that social media influencers significantly influence consumer behaviour when purchasing or consuming a product or service (Harifawati et al. 2019). This preliminary study aims to conduct a bibliometric analysis of the social media influencers study to get general views and ideas on the research focus for SMI.
3 Methodology Bibliometrics is a method of exploring and analysing large volumes of scientific data [12]. One of the reasons scholars use the bibliometric method is to uncover the emerging trends in publications on a specific topic, including to gain an overview, identify knowledge gaps, derive novel investigation ideas, and position a contribution to the field [12]. This study employs the bibliometric method to identify the common points and prospect topics in social media influencers’ research and see potential areas to be studied further. Data needed for bibliometric analysis was extracted from the ISI Web of Science (WoS) through the Universiti Teknologi MARA Library e-database website on 15th August 2022. “Social media” AND “influencer*” were used as search
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terms. The search keywords only focus on title, keyword, and abstract and generate a total of 1244 published documents that have “social media influencer” in their title, abstract, and keywords. To offer better accuracy in determining the sample database, this study adopted four steps in the PRISMA approach guidelines by Moher et al. [13] to identify and extract the data for this study on bibliometric analysis. Figure 1 shows the PRISMA approach adopted by this study. The bibliometric analysis methodology was used to answer the research objectives. The data mining process was conducted on 15th August 2022 using the ISI Web of Science (WoS) database. First, the article related to social media influencers was identified. In this stage, only the title, abstract, or keyword containing “social media influencer” words have been searched in the ISI WoS database to narrow down the large volume of published articles.
Fig. 1 The PRISMA approach diagram adopted by this study
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The search identified 1244 documents from the ISI WoS database. Then another filter was added to the interrogation process. Only documents of the article type were included. As Maier et al. [14] suggested, peer-reviewed journal articles have better quality than other types of papers. The exclusion removed 262 documents, leaving a database of 982 articles. Then, we only included English-written articles and removed another 57 documents. Then, we decide to remove early access articles since there is no exact date of the article’s publication. The final number of published articles used for this bibliometric analysis was 817. The final database (n = 817) was then exported and analysed using the VOSViewer application. The free VOSViewer software was used to perform the data analysis for this bibliometric analysis. This software can display large bibliometric maps in an easy-to-interpret way [14]. In the first stage, the descriptive analyses were conducted using MS Excel, and a series of graphs were generated to analyse the evolution over time of the published papers on social media influencers. Then, in the next stage, the bibliometric analysis methodology was used to identify the most valuable papers and other analyses related to the study.
4 Results 4.1 Publication Trends in Social Media Influencers Studies This study reviewed 817 final ISI Web of Science databases pertaining to social media influencer publications. The first two articles were published in 2011 and described the social media influencer (Freberg et al. 2011) as well as the influence of social media influencers on corporate brand perceptions (Booth et al., 2011). As demonstrated in Fig. 2, the publication trends amongst social media influencers are increasing, particularly over the past four years, with more than 50 papers published. By looking at the current trends, the publication number is expected to keep increasing by the end of 2022.
400 260
300 200 100
205
160
2
2
7
7
5
17
26
41
2011
2012
2013
2014
2015
2016
2017
2018
85
0
Total
2019
2020
2021
2022
Expon. (Total)
Fig. 2 Number of publications on social media influencer studies in ISI Web of Science (WoS) 2011–2022
508 Table 1 The top 15 most productive countries in social media influencer publications
P. M. Antara et al.
Rank
Countries/Regions
1
USA
Record count 263
2
England
85
3
Australia
69
4
China
64
5
Spain
55
6
Canada
46
7
Germany
42
8
Netherlands
32
9
India
29
10
South Korea
29
11
Italy
25
12
France
24
13
Malaysia
22
14
Singapore
16
15
United Arab Emirates
16
It can also be seen that the USA is the most productive country in producing articles related to social media influencer studies, with 263 articles, as shown in Table 1. England then followed it with 85 articles.
4.2 Journal and Research Areas Analysis Based on the analysis conducted, Table 2 shows the top 10 journals that published social media influencer-related articles. The International Journal of Advertising shows the most published articles related to social media influencers, with 21 published articles. It was followed by the Social Media Society Journal with 20 publications and the International Journal of Environmental Research and Public Health with 16 published articles. Most of the journals were in the business, management, and marketing domains. In terms of the research area, business economics shows the most published articles on social media influencer topics in the WoS database (see Table 3). Interestingly, the topic related to social media influencers not only gained attention in business and marketing-related journals but also in public health journals.
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Table 2 Top 20 journals in social media influencer studies No
Journal titles
Number of published articles
1
International Journal of Advertising
21
2
Social Media Society
20
3
International Journal of Environmental Research and Public Health
16
4
Frontiers in Psychology
15
5
Sustainability
14
6
Computers in Human Behaviour
13
7
Journal of Business Research
13
8
Journal of Retailing and Consumer Services
13
9
International Journal of Communication
11
10
Journal of Research in Interactive Marketing
11
Table 3 Research area
Rank
Research areas
Record count
1
Business Economics
244
2
Communication
199
3
Computer Science
58
4
Psychology
57
5
Public Environmental Occupational Health
50
6
Social Sciences Other Topics
48
7
Environmental Sciences Ecology
38
8
Science Technology Other Topics
34
9
Information Science Library Science
33
10
Health Care Sciences Services
21
4.3 Citation Analysis (Most Cited Social Media Influencer Articles) Table 4 reveals the journal articles with the highest number of citations. The greater influence of a paper is usually based on the higher number of citations for the paper (Merigo, 2016, as cited in [14]. An article by De Veirman et al. [5] titled “Marketing through Instagram Influencers: The Impact of Number of Followers and Product Divergence on Brand Attitude” shows the highest citation with 401 citations. It was then followed by the article by Khamis et al. (2017) titled “Self-branding, microcelebrity, and the rise of social media influencers,” with 334 citations. An article by De Veirman et al. [5] focuses on the influence of Instagram influencers on brand attitudes, whilst Khamis et al. (2017) focus on the characteristics of social media
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Table 4 Top 20 most influential articles on social media influencer studies R
Article title
Authors, year
Journal
Citations
1
Marketing through Instagram influencers: the impact of a number of followers and product divergence on brand attitude
De Veirman et al. [5]
International Journal of Advertising
401
2
Self-branding, ‘micro-celebrity’ and the rise of Social Media Influencers
Khamis et al. (2017)
Celebrity Studies
334
3
Who are the social media influencers? A study of public perceptions of personality
Freberg, et al. (2011)
Public Relations Review 263
4
Celebrity vs. Influencer endorsements in advertising: the role of identification, credibility, and Product-Endorser fit
Schouten et al. [15]
International Journal of Advertising
221
5
Aren’t These Just Young, Abidin [16] Rich Women Doing Vain Things Online?: Influencer Selfies as Subversive Frivolity
Social media + Society
183
6
Visibility labour: Engaging Abidin (2016b) with Influencers’ fashion brands and #OOTD advertorial campaigns on Instagram
Media International Australia
163
7
Mapping and leveraging Booth and Matic [17] influencers in social media to shape corporate brand perceptions
Corporate Communications
140
8
Measuring social media influencer index-insights from Facebook, Twitter and Instagram
Arora et al. [18]
Journal of Retailing and Consumer Services
126
9
Authenticity under threat: When social media influencers need to go beyond self-presentation
Audrezet et al. (2020)
Journal of Business Research
126
10
Instafamous and social media influencer marketing
Jin et al. (2019)
Marketing Intelligence and Planning
122
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Fig. 3 Keyword co-occurrence analysis
influencers. Most of the top 10 articles on social media influencers focus on both areas of interest.
4.4 Keyword Analysis (Co-occurrence) The VOS viewer software generated six clusters for the keyword occurrence analysis, as depicted in Figure 2. The analysis of keyword co-occurrences makes it possible to identify the term combinations that authors use most frequently [14]. This allows us to identify trends and patterns in the social media influencer research topic. This study can uncover subjects that influencers regularly research on social media and emphasise their relationships. According to Zupic and Cater [19], the frequent cooccurrence of words in the same document indicates that the concepts behind those words are tightly related (Fig. 3). From the total of 817 documents analysed, the co-occurrence analysis found 119 keywords with a minimum of 10 occurrences. In Cluster 1, 41 keywords were frequently used, including social media (401 times), Twitter (102 times), and communication (100 times). In Cluster 2, 33 keywords were frequently used, including impact (160 times), word-of-mouth (96 times), influencer marketing (93 times), social media influencers (74 times), and social media influencers (47 times). Besides, in Cluster 3, 19 keywords were frequently used, including influencers (119 times), Instagram (110 times), celebrity (57 times), and YouTube (42 times). Meanwhile, in Cluster 4, 12 keywords were frequently used, including model (39 times), persuasion knowledge (37 times), disclosure (32 times), responses (31 times), and adolescents
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(26 times). In Cluster 5, seven keywords were found to be frequently used, including engagement (39 times) and celebrities (23 times). Other than that, in Cluster 6, seven keywords were found to be frequently used, including social media marketing (24 times), intention (21 times), and customer engagement (15 times).
4.5 Discussion A bibliometric analysis was used in this study to find the most common findings and suggestions for the study of social media influencers. To achieve this, 817 articles published in the ISI WoS-indexed database were analysed. The results show that the trends in social media influencer publications keep increasing year by year and are expected to continue from 2022 on. It can also be seen that the USA is the most productive country in publishing social media influencers’ articles in the WoS database, with 263 publications, far ahead of the UK in second place, with only 85. It shows that there are many opportunities for researchers from other countries, especially Malaysia, to study more on this related topic. Malaysians are one of the most active users of social media. However, there are still limited studies on social media influencers that focus on the Malaysian context. As a result, there are numerous avenues for investigation within this research topic. The International Journal of Advertising has the most articles by social media influencers with 21, followed by the Social Media Society with 20 articles. Since this issue is gaining academic interest, there are several opportunities to publish articles in the journal. The business economy categories demonstrate the greatest interest in publishing articles written by social media influencers, followed by the communications categories. Not only do social media facilitate contact between individuals [20], but they also facilitate the promotion of product and service brands [21]. Hence, additional research is required, particularly regarding the influence of social media influencers on customer behaviour. In terms of most-cited articles in social media influencers’ publications, De Veirman et al. [5] were the most-cited authors, with 401 total citations in the WoS database. They were followed by Khamis et al. (2017), with 334 citations. Most of the articles focus on the influence of social media influencers on brands or behaviours and the characteristics of social media influencers. Therefore, there is a potential use of social media influencers to help promote a brand or influence purchasing behaviour. As GWI (2022) suggested, it is a good opportunity for brand owners or businesses to incorporate social media into their digital marketing strategy. The keyword analysis then generated 251 keywords with at least five occurrences each. The term “social media” appears most frequently in the paper concerning social media influencers. In the keyword research, we discovered various social media platform terms, including Instagram, Twitter, and Facebook. Despite this, other social media platforms continue to attract new users, including TikTok, which has the greatest user growth (eMarketer, 2021; GWI, 2022). There is a need to investigate
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the impact of social media influencers on other social media platforms, particularly TikTok influencers, on human behaviour, particularly consumer behaviour. In fulfilling the gaps identified from the bibliometric analysis, we suggest that future research focus on TikTok influencers and how the influencers could affect a person’s behaviour, especially in adopting specific products promoted by the influencers. According to Hani et al. [22], social media celebrities may influence a person’s purchase behaviour. Social media celebrity endorsement is an effective form of marketing in eliciting action or a purchase decision in a person, particularly in the i-Generation [10].
5 Conclusion The purpose of this paper is to present an overview of social media influencer research and the number of publications on the topic. Analyses were conducted on 817 journal articles from the ISI WoS database. There has been an increase in the number of publications on this topic, particularly over the past four years, and it is anticipated that this trend will continue in the coming year. Clearly, the United States has numerous articles regarding social media influencers, whereas Malaysia does not. As a result, Malaysian researchers may have an opportunity to submit publications on social media influencer-related topics. This study is expected to provide the researcher with an insight into social media influencer trends. Future researchers should concentrate on TikTok influencer studies, as the number of TikTok users in Malaysia has increased substantially and the introduction of TikTok for businesses can be beneficial to Malaysian business owners.
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Salient Beliefs Elicitation on Intention to Consume Halal Products Amongst Muslim Urban Millennials (MUMs): The Way Forward for Sustainability in the Halal Industry Purnomo M Antara
and Rosidah Musa
Abstract The halal industry is becoming a competitive economy. The Tajdid lifestyle behaviour adopted by young Muslims through the consumption of halal products contributes to increasing trends in the halal economy. Understanding the Muslim Urban Millennials’ (MUMs) behaviour could help halal businesses design an effective communication strategy to sustain the market. However, the salient beliefs that form attitudes, perceived norms, and self-efficacy amongst MUMs towards halal product consumption remain vague to date. In bridging this gap, this study aims to identify a set of MUMs’ salient beliefs towards halal product consumption using the Integrative Model of Behavioural Prediction (IMBP). This paper used eight openended questions to identify the salient outcomes, normative, and efficacy beliefs. A systematic survey using an online web-based questionnaire was employed and participated by 87 MUMs using purposive and snowball sampling. The results showed that 1096 beliefs were elicited. A line-by-line analysis was conducted to code and categorise the beliefs into appropriate themes. The final set of salient beliefs was determined using the trade-off approach and integrated into the IMBP construct as the proposed conceptual framework. The final set of salient beliefs was suggested in developing the IMBP questionnaire on halal product consumption amongst MUMs. The results suggest that businesses or marketing managers should create effective marketing campaign strategies and design interventions that can change or reinforce the behaviour of MUMs towards halal products. This study also offered essential theoretical insight into the elicitation of salient beliefs using the IMBP approach. Keywords Sustainability · Halal · Tajdid lifestyle · Integrative model of behavioural prediction · Salient beliefs P. M. Antara (B) Faculty of Business and Management, Universiti Teknologi MARA (UiTM), Cawangan Negeri Sembilan, Kampus Rembau, Rembau, Malaysia e-mail: [email protected] R. Musa City Graduate School, City University, Petaling Jaya, Selangor, Malaysia © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_44
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1 Introduction Halal is no longer emerging as a new growth sector but a competitive economy [1]. Malaysia’s halal market is expected to grow to USD 113.2 billion in 2030 compared to USD 68.4 billion in 2018 [2]. The increasing trends in the halal economy are driven by young Muslims who assert their values [3]. Based on the ranking by the Global Islamic Economy Indicator (GIEI), Malaysia has maintained its top position for eight consecutive years. It was estimated that the halal economy in Malaysia would contribute 11% of the total Gross Domestic Product (GDP) in 2030 worth RM 266 billion, compared to only 7.4% in 2018 [2]. Halal industry players in Malaysia are expected to move into high-value sectors such as Islamic fashion, medical tourism and halal medical devices. It can be achieved “by continuously pushing the boundaries of knowledge, exploring new frontiers and influencing consumer trends, with a strong willingness to invest in innovation and new product development” ([2], pp7). The growth of the halal industry was also contributed by the growth of the Muslim population and rising incomes amongst Muslim consumers. With the Muslim population in Malaysia reaching over 17 million people [4] and more than 40% of the workforce being millennials [5], it seems to give Muslim millennials more power to determine what products they need and what they do not. The power of demand fuels business entities to create products and services based on the values of young Muslims [3]. The Islamic lifestyle adopted by young Muslims through the consumption of halal products contributes to increasing trends in the halal economy. Consumption is not a lifestyle, but a method for maintaining a lifestyle [6]. Islam is a way of life and should be a lifestyle for every Muslim. The halal concept includes all daily life activities approved by Shariah [7]. The Islamic lifestyle is not limited to consuming halal food but also adopting Islamic financing, Islamic fashion, and Shariah-compliant entertainment [8]. Islam is a religion that guides human behaviour in all aspects of life [9]. Muslims should ensure that their daily consumption follows Shariah guidelines, from the ingredients of food and beverages, cosmetics, medical drug, sports and recreation activities, clothes, sources of income, and financing [8]. A Muslim cannot choose a specific aspect of their lifestyle to be halal. All their consumption in daily life should be halal [9]. On the other hand, Malaysia is leading the halal food, Muslim-friendly travel, Islamic finance, pharmaceutical, and cosmetic sectors. However, this is not the case for the fashion, media, and recreation sectors [10]. According to Jaffar and Musa [11], religious obligations have the most potent effect on attitudes. However, some Muslims are trying to avoid Islamic-related products or brands. For example, even though there is a selection of Islamic banking products in the market, some Muslims seek to avoid Islamic financing products [12]. They believe the Islamic banking system does not differ from the conventional banking system [13]. “Even though most of the population in Malaysia are Muslims, the total funds deposited into the Islamic banking system remained insignificant compared to conventional banks” [14]. With a Muslim population of more than 18 million in Malaysia, reaching the 20% target market share should be possible if all Muslims adopt Islamic products and
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services. When it comes to personal decision-making, several factors affect people’s behaviour in the adoption of halal products [15, 16]. This situation leads to another critical situation that needs to be understood. It is also found that Muslim teenagers in Malaysia are not sensitive towards halal status (Abdul Kadir, 2011). Thus, there is a need to explore Muslims’ behaviour towards halal product consumption, especially amongst millennials. Understanding the Muslim Urban Millennials’ (MUMs) behaviour could help halal businesses design an effective communication strategy to sustain the market. This study attempts to examine the salient beliefs held by Muslim millennials in Malaysia. We could unravel the effect of the salient beliefs on the millennial generation’s behaviour of consuming halal products. Even though extensive literature have examined the consumer’s behaviour in adopting halal products, minimal studies have examined the salient beliefs for consuming halal products. To the researcher’s knowledge, previous studies overlooked the examination of the salient beliefs for halal product consumption amongst MUMs. Although past studies had contributed valuable insights in examining consumer behaviour towards consuming halal products, none of the studies had adopted the Integrative Model of Behavioural Prediction (IMBP) as the basis of the theoretical framework in the context of halal product consumption amongst MUMs. Several empirical studies used the Theory of Reasoned Action (TRA) and the Theory of Planned Behaviour (TPB). The application of reasoned action-based theories requires salient belief elicitation. However, previous studies overlooked the employment of a systematic elicitation survey. Identifying salient beliefs about halal product consumption through the elicitation survey is important. Sutton et al. [17] said, “In spite of the importance of salient beliefs in the TRA/TPB, the elicitation stage has received relatively little attention from readers.” Previous researchers have less intention to systematically identify the relevant salient beliefs when applying the reasoned action approach [18]. This study attempts to examine the behaviour of MUMs towards consuming halal products in their daily life. This study also attempts to identify the salient beliefs held by the MUM generation towards halal product consumption. This study applied a systematic elicitation survey to elicit the salient beliefs using the Integrative Model of Behavioural Prediction.
2 Literature Review 2.1 Integrative Model of Behavioural Prediction (IMBP) We applied the Integrative Model of Behavioural Prediction as the theoretical foundation to examine the MUMs’ behaviour towards halal product consumption. According to Fishbein and Ajzen [19], as quoted by Yzer [20], behaviour is “an action directed at a target, performed in a certain context, and at a certain point in time.” There are many behavioural theories not discussed in this study. However, we discuss the main behavioural theory applied in this study, i.e. the Integrative Model
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of Behavioural Prediction (IMBP). Behavioural theory in the social sciences field can be defined as a systematic explanation for observations related to a particular aspect of life (Babbie 2010). Fishbein and Ajzen introduced the Integrative Model of Behavioural Prediction (IMBP) in 2000. This theory evolved from the Theory of Reasoned Action [19, 21] and the Theory of Planned Behaviour [22]. The theory is not limited to predicting health behaviour and can be applied to the prediction of any behaviour [23] of a target population [20]. In the IMBP theory, behavioural intention is a function of three perceptions: attitude, perceived norm, and self-efficacy. Attitude can be defined as a person’s evaluation of how favourable or unfavourable his or her performing a specific behaviour would be. Perceived norm is defined as the social pressure expected in performing a specific behaviour, which includes the injunctive norm and the descriptive norm. An injunctive norm is the extent to which important social networks are expected to support the person performing the behaviour. On the other hand, a descriptive norm is the extent to which members of those networks perform their behaviour. Perceived norm is the totality of these two normative perceptions. Self-efficacy reflects the extent to which a person feels capable of effectively performing the behaviour [20]. Attitude, perceived norm, and self-efficacy represent various specific beliefs about a specific behaviour. Yzer [20] mentioned that attitude is a function of very specific beliefs about the likelihood of performing the behaviour having specific outcomes. On the other hand, the perceived norm is a function of beliefs about expected support from specific members of important social networks (injunctive norm beliefs) and beliefs about the extent to which these specific individuals act on the behaviour themselves (descriptive norm beliefs). Both normative beliefs will be multiplied with the motivation to comply with those referents. The third is self-efficacy, a function of perceived capability in specific challenging or facilitating conditions called efficacy beliefs. Furthermore, the background element is another variable added to the IMBP. According to Yzer (2010), variables other than intention and its proposed antecedents can be associated with behaviour. Gender, personality traits, skills, culture, and any possible factors may be included. The literacy level could also be a factor that affects behaviour [24]. The IMBP proposes that variables indirectly influence behaviour but may be included as a possible source of beliefs. The model positions these variables as background variables. These variables are not expected to be constantly on the same path in the model. It shows the flexibility and adaptability of the IMBP to different cultures and contexts.
3 Methodology In applying the theory of IMBP, salient beliefs that influence the behaviour of the MUM generation towards halal products and services adoption need to be identified through an open-ended questionnaire amongst the study’s population. An online elicitation survey was employed to elicit the salient beliefs of this model. The salient beliefs elicited include outcome beliefs, normative beliefs, and efficacy beliefs. Even
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though many variables may influence the behaviour, only certain variables may be considered to predict the behaviour in the dedicated population [19, 21]. Then, the third step in applying the IMBP is to determine which salient beliefs should be addressed. To determine which salient beliefs should be addressed, an analytical approach can be used. The salient beliefs elicited in Step 2 should be chosen based on the target population’s most important and appropriate representation. The literature suggested four approaches in choosing the final set of salient beliefs. The approaches are: (1) including a specific number of most frequently mentioned beliefs (e.g. 12 most frequently mentioned beliefs), (2) including beliefs that achieve a particular percentage (e.g. choose beliefs that were mentioned by at least 10% of respondents), (3) including beliefs necessary to account for a certain percentage of all beliefs mentioned (e.g. 75% of beliefs mentioned by all respondents), and (4) trade-off approach. Then, the final set of salient beliefs will be used to propose a conceptual framework of the Tajdid lifestyle behaviour based on the IMBP approach before the questionnaires are established. However, this paper is only focussed on salient beliefs elicitation and the method for choosing the final set of salient beliefs associated with the Tajdid lifestyle behaviour.
3.1 Procedure and Participants This study is focussed on MUMs in Malaysia as the target population. However, there is no official number of MUMs in Malaysia. So, this study implemented a purposive sampling method to choose the participants or respondents. The respondents were chosen based on a set of criteria such as being Muslim, living in an urban area in Malaysia, and being a millennial. An open-ended online questionnaire was used as a data collection method to elicit the salient beliefs amongst MUMs.
3.2 Measure Eight open-ended questions were used in this elicitation survey. Table 2 shows the questions used in the survey. The “advantages” and “disadvantages” questions were asked to MUMs to elicit their outcome beliefs. Then, the “approve” and “disapprove” questions were asked to elicit their injunctive norm beliefs. The “referent use” and “referent does not use” questions were asked to MUMs to elicit their descriptive norm beliefs. Lastly, the “easy” and “difficult” questions were asked to elicit the efficacy beliefs of MUMs.
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Table 1 Defining the behaviour criterion Criteria
Item
Action
The consumption
Target
Halal products (food, Islamic finance, fashion and entertainment)
Context and time
Daily life (as a lifestyle)
Table 2 Open-ended questions used to identify salient beliefs No
Question(s)
Q1
What do you see as the advantages of using Islamic/halal products and services?
Q2
What do you see as the disadvantages of using Islamic/halal products and services?
Q3
Please list the individuals or groups who approve or think you should choose Islamic/ halal products and services
Q4
Please list the individuals or groups who disapprove or think you should not use Islamic/ halal products and services
Q5
Please list the individuals or groups who are most likely to use Islamic/halal products and services
Q6
Please list the individuals or groups who are least likely to use Islamic/halal products and services
Q7
Please list any factors or circumstances that would make it easy or enable you to use Islamic/halal products and services
Q8
Please list any factors or circumstances that would make it difficult or prevent you from using Islamic/halal products and services
Source Adapted from Yzer [20]
3.3 Analysis Descriptive statistics was implemented to analyse the research questions. As suggested by Ajzen and Fishbein [25], Fishbein and Ajzen [19], Francis et al. [26], and Leeuw et al. [27], line-by-line content analyses were conducted to find emerging themes from the responses. All salient beliefs were subsequently categorised into themes. The coding system was used to differentiate the “advantages”, “disadvantages”, “approve”, “disapprove”, “referent use”, “referent does not use”, “easy”, and “difficult” questions. The number of responses was recorded to choose the most reported salient beliefs.
3.4 Results This section presents the results of the elicitation survey.
Salient Beliefs Elicitation on Intention to Consume Halal Products … Table 3 Respondents’ demographic profile
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Demographic
Items
Frequency
Percentage (%)
Gender
Male
21
24.14
Female
66
75.86
87
100
Total
Profile of Respondents Table 3 shows the summary of the participants’ demographic information. The sample comprised of 21 men and 66 women, and all respondents are the sample that represented the population of MUMs. Three filter questions were asked to check whether they were qualified to answer the questionnaire. The filter questions include religion, living area, and age range. Total Number of Responses Table 4 shows the total number of beliefs mentioned by MUMs. A total of 1096 beliefs were identified from 87 respondents. The “advantages” question had the highest number of beliefs mentioned with 217 beliefs (mean = 2.49), followed by the “difficult” question with 214 beliefs. The “easy” question captured 183 beliefs, followed by “referent use”, “disadvantages”, “approve”, “referent does not use”, and “disapprove” questions with 171, 120, 114, 70 and 7 beliefs mentioned respectively. The following subsection will present the total beliefs identified for each category of beliefs (i.e. outcome beliefs, normative beliefs, and efficacy beliefs). Responses for “Advantages” and “Disadvantages” Questions Table 5 shows the distribution of beliefs identified for the “advantages” question. 217 beliefs were identified from the elicitation survey. Five beliefs were unclassified and one respondent did not list any beliefs. The beliefs were categorised into seven Table 4 Descriptive statistics for identified beliefs from open-ended questions
Type of beliefs
Total beliefs
Mean beliefs per respondent
Outcome beliefs
Advantages
217
2.49
Disadvantages
120
1.38
Injunctive norm beliefs
Approve
114
1.31
7
0.08
Descriptive norm beliefs
Referent use
171
1.97
Referent does not use
70
0.80
Efficacy beliefs
Easy
183
2.10
Difficult
214
2.46
1096
12.59
Disapprove
Total
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themes. The theme “feel more religious” had the highest number of mentions (i.e. 44 mentions). Other themes included “safe to use”, “fair and equitable”, “many choices”, “value for money”, “profitable”, and “easy to get” with 41, 40, 37, 20, 20 and 15 mentions respectively. Table 5 also shows the distribution of respondents’ beliefs for the “disadvantages” question in the elicitation survey. 120 beliefs were captured and categorised into seven themes. “No difference” had the highest number of mentions (i.e. 30 mentions). “Not profitable” was the second highest theme with 22 mentions, followed by “expensive”, “not up to date”, and “not suitable” with 21, 19, and 18 mentions respectively. “Not interested” and “high risk” had five mentions respectively. Five other mentions were unclassified, and 15 respondents did not list any beliefs. Responses for “Approve” and “Disapprove” Questions Table 6 shows the number of beliefs identified for the “approve” and “disapprove” questions. The elicitation survey identified 114 beliefs for the “approve” question. The beliefs were categorised into three themes which were “family”, “close friend”, and “preacher” with 42, 40, and 32 mentions respectively. For the “disapprove” question, 7 beliefs were identified and categorised into two themes. The themes “close friend” and “family” had four and three mentions respectively. 83 respondents did not list any beliefs. Responses for “Referent Use” and “Referent Does Not Use” Questions Both questions captured a total of 241 beliefs as shown in Table 7. The beliefs were categorised into four themes which were “celebrities and influencers”, “family”, “close friends”, and “preacher.” For the question on “referent use”, 171 beliefs were mentioned, with “preacher” showing the highest number of mentions (i.e. 47 Table 5 Results of the “Advantages” and “Disadvantages” questions (Q1 and Q2) Disadvantages
Advantages Code
Beliefs
No
%
Rank
Code
Beliefs
No
%
Rank
A
Feel more religious
44
50.57
1
AA
Expensive
21
24.14
3
B
Value for money
20
22.99
5
BB
Not up to date
19
21.84
4
C
Profitable
20
22.99
5
CC
No difference
30
29.89
1
D
Safe to use
41
47.13
2
DD
Not suitable
18
20.69
5
E
Many choices
37
42.53
4
EE
Not profitable
22
25.29
2
F
Fair and equitable
40
45.98
3
FF
High risk
5
5.75
6
G
Easy to get
15
17.24
7
GG
Not interested
5
5.75
6
H
Unclassified
5
5.747
n/a
HH
Unclassified
I
Not listed
1
0.115
n/a
II
Not listed
5
5.75
n/a
15
17.24
n/a
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Table 6 Results of the “Approve” and “Disapprove” questions (Q3 and Q4) Belief
Approve Code
Disapprove No
%
Rank
Code
No
%
Rank
Family
A
42
54.02
1
AA
3
3.45
2
Close Friend
B
32
36.78
3
BB
4
4.60
1
Preacher
C
40
45.98
2
CC
0
0.00
Unclassified
D
3
3.45
DD
0
0.00
Not listed
E
3
3.45
EE
83
64.37
mentions). “Close friend”, “celebrities and influencers”, and “family” followed with 46, 41, and 37 mentions respectively. For “referent does not use”, 70 beliefs were mentioned, with the highest being “celebrities and influencers” with 25 mentions. “Family” and “close friend” followed with 23 and 22 mentions respectively. Responses for “Easy” and “Difficult” Questions The “easy” question recorded a total of 183 beliefs as shown in Table 8. The beliefs were categorised into five themes, the highest being “halal certification” with 43 mentions. “Low cost”, “availability online”, “product knowledge”, and “practicability” followed with 41, 39, 38, and 22 mentions respectively. The “difficult” question recorded a total of 214 beliefs which were categorised into six themes. The highest was “no product knowledge” with 44 mentions. Other identified themes were “high cost”, “halal certification issue”, “unavailable online”, “not practical”, and “not up to date” with 41, 39, 33, 32, and 25 mentions respectively. Number of Beliefs based on the Rules for Choosing the Final Set of Salient Beliefs Table 9 shows the study’s final set of salient beliefs based on the four rules. Rule number one identified 12 outcome beliefs, four perceived norm beliefs, and six efficacy beliefs. Rule number two identified ten outcome beliefs, four perceived Table 7 Results of the “Referent Use” and “Referent Does Not Use” questions (Q5 and Q6) Not Use
Use Belief
Code
No
%
Rank
Code
No
%
Rank
Family
A1
37
42.53
4
AA1
23
26.44
2
Close friend
B2
46
52.87
2
BB2
22
25.29
3
Celebrities and influencers
C3
41
47.13
3
CC3
25
28.74
1
1
Preacher
D4
47
54.02
DD4
0
0
Unclassified
E5
2
2.30
EE5
2
2.30
Not listed
F6
5
5.75
FF6
44
50.57
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Table 8 Results of the “Easy” and “Difficult” questions (Q7 and Q8) Difficult
Easy Code Beliefs
No %
A
Availability online
39
44.83 3
AA
Unavailable online
33
37.93 4
B
Low cost
41
47.13 2
BB
High cost
41
47.13 2
C
Halal certification
43
49.43 1
CC
Halal certification 39 issue
44.83 3
D
Practicability
22
25.29 5
DD
Not practical
32
36.78 5
E
Product knowledge 38
43.68 4
EE
No product knowledge
44
50.57 1
25
28.74 6
Rank Code Beliefs
No %
F
Unclassified
2
2.30
FF
Not up to date
G
Not listed
2
2.30
GG
Unclassified
3
3.45
HH
Not listed
2
2.30
Rank
Table 9 Number of Final Salient Beliefs based on the Four Rules No
Rule
Outcome beliefs
Perceived norm beliefs
Efficacy beliefs
1
12 most frequently mentioned beliefs
12
4
6
2
All beliefs mentioned by at least 10% of respondents
10
4
6
3
75% of beliefs mentioned by all respondents
9
4
5
4
Trade-off approach
5
4
4
norm beliefs, and six efficacy beliefs. Rule number three produced nine outcome beliefs, four perceived norm beliefs, and five efficacy beliefs. However, rule number four, which is the trade-off approach, only identified five outcome beliefs, four perceived norm beliefs, and four efficacy beliefs.
4 Discussion In this paper, we aim to elicit the salient beliefs of MUMs towards adopting the Tajdid lifestyle through the daily consumption of halal products. We used questionnaire forms with eight open-ended questions to elicit the salient outcome beliefs, normative beliefs and self-efficacy beliefs on the Tajdid behaviour amongst MUMs. Although there are several approaches in determining the final set of salient beliefs using reasoned action theory, the trade-off approach is most appropriate for implementation. The trade-off approach by Herath [18] chooses the most significant and
Salient Beliefs Elicitation on Intention to Consume Halal Products … Table 10 Final set of salient beliefs for the daily consumption of Halal products amongst Muslim Urban Millennials
Beliefs
Outcome beliefs
Normative beliefs
Efficacy beliefs
No
Items
1
Feel more religious
2
Safety
3
Fair and equitable
4
Many choices
5
No difference
1
Family
2
Close friends
3
Preacher
4
Influencers and celebrities
1
Halal certification
2
Availability online
3
Cost
4
Product knowledge
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salient beliefs for each outcome, normative and efficacy beliefs. Applying the tradeoff approach in determining the final set of salient beliefs for the daily consumption of halal products by MUMs eliminates the error of including non-salient beliefs into the final set. The final set of salient beliefs for consuming halal products amongst MUMs is shown in Table 10. First, the attitude of MUMs towards the intention to consume halal products is formed by five important outcome beliefs. The findings show that MUMs feel more religious when consuming halal products since they adhere to their religious obligations. In line with Jaffar and Musa [11], religious obligation has the most compelling effect on attitudes towards adopting halal products. The greater the adherence to Islamic principles, the more favourable their attitudes are towards adopting halal products. Safety is also one of the paramount consents for consuming halal products. In addition, MUMs feel that using halal products is a fair and equitable choice. Having more choices or available substitutes is another salient outcome belief of MUMs towards halal product consumption. However, the findings show that MUMs perceive that halal products are no different from others. In line with Kontot et al. [13], some people feel that Islamic banking products are not different from conventional banking products. Second, the perceived norms of MUMs towards the intention to consume halal products are formed by four important normative beliefs. The findings show that family and friends are a substantial factor in forming the perceived norms of MUMs. Previous studies also identified family and friends as possible influencers of a person’s behaviour. Other salient normative beliefs for MUMs to consume halal products are established by preachers or faith leaders and influencers or celebrities. Since adherence to religious obligations are important to MUMs, faith leaders could significantly influence MUMs’ intention to consume halal products. Additionally, influencers and
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celebrities play an important role in influencing young people [28]. Celebrity endorsements on social media are effective forms of marketing to evoke action or purchase decisions from young people [29]. Third, the self-efficacy of MUMs and their intention to consume halal products is formed by four salient efficacy beliefs. The findings showed that halal certification makes it easy for MUMs to consume halal products. In line with Bashir (2019), halal certification could encourage a person’s purchase intention. Halal certification is an indicator that helps a consumer choose halal products in the market. Online availability is another factor that eases the consumption of halal products amongst MUMs. Since millennials live in the digital technology era, the availability of halal products online makes it easier for them to purchase and consume them. The price of halal products could be another factor for MUMs’ intention to consume halal products. Halal product knowledge is also important to MUMs. Bashir (2019) and Jaffar and Musa [11] found that knowledge and awareness contribute to positive intentions to consume halal products. We subsequently discuss our findings and identified the critical implications for marketing theory and practise. First, to the best of our knowledge, this study is an empirical study to identify salient beliefs that form attitudes, perceived norms, and self-efficacy of MUMs towards halal product consumption. The study makes a related theoretical contribution. Our findings showed that attitude towards halal product consumption amongst MUMs is formed by five salient outcome beliefs. Perceived norms of MUMs are formed by four normative beliefs and the self-efficacy of MUMs is formed by four efficacy beliefs. These findings should contribute to the body of knowledge. We provide insight on how to understand MUMs’ behaviour for adopting the Tajdid lifestyle of consuming halal products by identifying the salient beliefs held by MUMs. We propose the final set of salient beliefs be integrated into the Integrative Model of Behavioural Prediction to allow researchers to understand and predict the behaviour of the target population. Figure 1 shows the proposed conceptual framework after integrating the final salient beliefs into the IMBP construct. In designing effective marketing messages that could predict, change, and reinforce the behaviour to adopt the Tajdid lifestyle, it is important to identify which outcome, normative and/or efficacy beliefs are best addressed in the message. One way to do it is to convert the salient beliefs into quantitative questions and integrate them into a questionnaire [20]. Using regression analysis, we could determine whether attitude and/or perceived norm and/or self-efficacy will affect the intention towards halal product consumption amonstg MUMs. Then, we will focus on the fundamental salient beliefs to be addressed to change or reinforce the behaviour of the target population. For example, if attitude is the only factor affecting the intention to consume halal products, we need to analyse which outcome beliefs are most important. Once we have identified the most salient outcome beliefs, we can design a suitable marketing communication message for advertisements and others.
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Fig. 1 Proposed conceptual framework for an integrative model of behavioural prediction of Tajdid lifestyle amongst Muslim Urban Millennials
5 Conclusion The elicitation of salient beliefs for consuming halal products amongst MUMs is crucial to predict, change, and reinforce their behaviour towards the Tajdid lifestyle. The adoption of the Tajdid lifestyle could encourage the development of the halal economy through the consumption of halal products. This study proposed the integration of the elicited salient beliefs into the IMBP construct to determine the most effective message when designing marketing communication messages. The research findings serve as a platform to understand the behaviour of MUMs in adopting the Tajdid lifestyle through the consumption of halal products. Identifying their salient beliefs contribute to the body of knowledge by integrating these salient beliefs into the IMBP construct. The findings can help strengthen the halal economy by assisting the formulation of effective marketing communication strategies by halal businesses. However, this study is limited to broad areas of halal product consumption. The results may differ in more specific lifestyle products such as food, pharmaceuticals, cosmetics, fashion, finance, media, travel, and entertainment. Future research should observe more specific halal products and services consumption behaviour to establish individual differences across the halal context. We also encourage researchers to expand our study in other settings. Since our study is focussed on the millennial generation, future research may examine other generational groups, especially the post-millennial generation or iGeneration. The iGeneration is tech-savvy and born in the era of smartphones. They will be the future demand setters.
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References 1. Masood, A. and Rahim, A. A. (2019). Halal Economy and Industrial Revolution 4.0: The New Frontier for Islamic Revival in Uzbekistan. Halal Journal, 3(2019), 25–39. 2. HDC. (2020). Halal Industry Master Plan 2030: Prominent, Visible, and Globalised Halal Malaysia. Retrieved 1 March 2021 from https://www.hdcglobal.com/wp-content/uploads/ 2020/02/Halal-Industri-Master-Plan-2030.pdf 3. Thomson Reuters and Dinar Standard. (2016). State of the Global Islamic Economy Report 2015/16 Report. Thomson Reuters and Dinar Standard, New York City. 4. DOSM, 2015). Population Distribution and Basic Demographic Characteristic Report 2010. Department of Statistics Malaysia Official Portal. Retrieved 5 May 2017 from https://www. dosm.gov.my/v1/index.php?r=col-umn/ctheme&menu_id=L0pheU43NWJwRWVSZklWd zQ4TlhUUT09&bul_id=MDMx dHZjWTk1SjFzTzNkRXYzcVZjdz09 5. DOSM, 2021). Current Population Estimates, Malaysia, 2021. Department of Statistics Malaysia Official Portal. Retrieved 1 July 2021 from https://www.dosm.gov.my/v1/ in-dex.php?r=column/cthemeByCat&cat=155&bul_id=ZjJOSnpJR21sQWVUcUp6ODRudm5JZz09&menu_id=L0pheU43NWJwRWVSZklWdzQ4TlhUUT09 6. Jensen, M. (2007). Defining Lifestyle. Environmental Sciences, 4(2), 63–73. 7. Latif, I. A., Mohamed, Z., Sharifuddin, J., Abdullah, A. M., and Ismail, M. M. (2014). A Comparative Analysis of Global Halal Certification Requirements. Journal of Food Products Marketing, 20, 85–101. 8. Abdullah, A., Zubairi, S. I. and Ghani, M. A. (2007). Halal food: Scenario and current status in Malaysia. 10th ASEAN Food Conference 2007, KLCC, Malaysia, 21st–23rd August 2007. 9. Mutmainah, L. (2018). The Role of Religiosity, Halal Awareness, Halal Certification, and Food Ingredients on Purchase Intention of Halal Food. Journal of Islamic Economic, Finance and Banking, 1(1), 33–50. 10. Dinar Standard. (2020). State of the Global Islamic Economy Report 2020/21 Report: Thriving in Uncertainty. Dinar Standard, Dubai. 11. Jaffar, A. and Musa, R. (2016). Determinants of Attitude and Intention towards Islamic Financing Adoption among Non-Users. Procedia Economics and Finance, 37(2016), 227–233. 12. Obeidat, Z.M. (2016), “Human Capital investment and training in Islamic banking industry in Jordan Islamic bank for finance and investment”, European Scientific Journal, 12(10), 90–103. 13. Kontot, K., Hamali, J., & Abdullah, F. (2016). Determining Factors of Customers’ Preferences: A Case of Deposit Products in Islamic Banking, 224, 167–175. 14. Ahmad, N., & Haron, S. (2002). Perceptions of Malaysian corporate customers towards Islamic banking products & services. International Journal of Islamic Financial Services, 3(4). 15. Antara, P. M., Musa, R., & Hassan, F. (2016). Theorising attitude towards islamic financing adoption in an integrative model of behavioural prediction: A proposed conceptual framework. Journal of Administrative and Business Studies, 1(1), 35–41. 16. Ali, M. A., Rahman, M. K., Rahman, M., Albaity, M., and Jalil, M. A. (2015). A Review of the Critical Factors Affecting Islamic Market Mechanisms in Malaysia. Journal of Islamic Marketing, 6(2), 250-267. 17. Sutton, S., French, D. P., Hennings, S. J., Mitchell, J., Wareham, N. J., Griffin, S., Hardeman, W., & Kinmonth, A. L. (2003). Eliciting salient beliefs in research on the theory of planned behaviour: The Effect of Question Wording. Current Psychology: Developmental, Learning, Personality, Social. 22, 234–251. 18. Herath, C. S. (2010). Eliciting Salient Beliefs are Critical to Predict Behavioural Change in Theory of Planned Behaviour. E-Psychologie. 4(3), 24–36. Retrieved 5 August 2020 from https://bit.ly/3cGuqU9
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Measuring the Reliability of the Sustainable Performance Instrument in ISO 14001-Certified Manufacturing Firms in Malaysia Samihah Ahmed, Mohd Rafi Yaacob, and Mohd Asrul Hery Ibrahim
Abstract This study aimed to examine the reliability of the instrument used to measure the sustainable performance of ISO 14001 firms in Malaysia, using 25 certified firms as a pilot sample. In general, the reliability of the research instrument is essential to ensure the internal consistency of the scale, which contributes to the credibility of the research. The SPSS reliability test was used to measure scales of items for every variable of the sustainable performance questionnaire, which will serve as the research instrument in the actual research. The results of the test showed a very high reliability of the instrument, with the Cronbach’s alpha (CA) value above 0.8. The high reliability of the items in the research instrument proves the high consistency of the scores generated by the instrument, rendering it highly reliable to measure the sustainable performance of firms. Keywords Reliability · Sustainable performance · ISO 14001 · Manufacturing firms · Malaysia
1 Introduction Sustainability is essential and has been recognised worldwide as an indicator of the well-being of a firm’s or a country’s natural environment, economy, and people. The emergence of the concept of sustainable development (SD) or sustainability has had a global influence on the concept of business, policies, and practises [7]. Hence, the performance indicator of countries or firms has shifted from merely economic focus to sustainable concepts, emphasising three main pillars that have been widely used as measurements of sustainable performance, namely: economic, environmental, and social. The concept of sustainable development is not new in Malaysia. It first was used as the fundamental indicator of the country’s development approach in the 1970s to S. Ahmed · M. R. Yaacob (B) · M. A. H. Ibrahim Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Kota Bharu, Malaysia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_45
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eliminate poverty by improving the life and social well-being of the people, providing equal access to education, and taking care of the natural environment. In 2009, Malaysia introduced the New Economic Model which emphasised three goals: highincome status, inclusivity, and sustainability. These goals are in line with the 17 Sustainable Development Goals (SDGs) that specify the three components of SDGs, namely economy, environment, and social (SDGs Voluntary Report, EPU 2017). The manufacturing sector is a vital sector of Malaysia’s economy. Since 1980s, it has contributed to the country’s gross domestic product (GDP), export market, as well as employment creation [11]. In 2019 this sector contributed MYR194.4 billion or 21.3% of the country’s GDP, making it the second-largest contributor after the service sector (Press Release, Department of Statistics Malaysia, 23 July 2020). Despite that the sector benefits the economy, it also contributes to environmental degradation, pollution, and waste generation in Malaysia as well as in other developing countries [2, 4]. With the gravitation of the technology through IR4.0, the growth of the manufacturing sector should be proportionate with the improvement of environmental quality. This can be achieved by better waste reduction and maximising the use of energy and resources. Hence, countries, especially developed countries, have harnessed environmentally friendly technology to improve the environmental quality of their countries. On the other hand, the use of environmentally unfriendly technology in developing countries leaves much to be desired. An environmentally unfriendly manufacturing industry contributes to environmental degradation, in Malaysia [4]. Currently, many manufacturing firms in Malaysia are yet to implement sustainable practises in their operations [11]. To support the growth of sustainable manufacturing, green technology has been identified as a catalyst for sustainable economic growth [10]. Such technology offers a viable and practical solution and balances economic development and accountability towards the environment. Opportunities presented by the development and production of green technology include the increase in economic activities in various sectors, the creation of jobs, and the attraction of foreign investment. Also, green technology can mitigate and address environmental degradation generated by environmentally unfriendly economic activities. In sustainable performance research, there have been volumes of literature discussing the topic, but a limited number of empirical studies have considered the three indicators: economy, environment, and social, in a single study [5, 12]. Most of the literature focussed on economic performance [16], or the combination of these two indicators: economy and environment [6], environment and social [9], or social and environmental [8]. The aim of this research was to measure the reliability of the measurement instrument of sustainable performance in ISO 14001-certified manufacturing firms in Malaysia. The itemised scale of the constructs of the research questionnaire, which is the instrument of the study, was adopted and adapted from the extensive search of relevant literature, using environmental performance indicators as keywords. In addition, interviews and engagement sessions with three expert panels in sustainable
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development pertaining to manufacturing firms from local public universities and a practitioner who had many years of experience in green technology were conducted to consult for opinion and expert guidance. The four constructs of sustainable performance were identified and used in the study, consisting of two economic performance constructs, one environmental performance construct, and one social performance construct.
2 Reliability of Research Instrument In general, reliability means the ability of a measuring instrument to provide accurate and consistent results, hence ensuring consistent measurement across time and the various items in the instrument. Reliability also indicates the stability and consistency with which an instrument measures the concept of the interest of a study and in turn helps to assess the effectiveness of the instrument [14]. There are four approaches to measuring reliability: (i) test-retest reliability, (ii) internal consistency reliability, (iii) split-half reliability, and (iv) equivalent-form reliability. Test-retest reliability is applied using the same respondents and measurements but managed at two separate points in time. On the other hand, internal consistency reliability measures the total score of the instrument and it focuses on the internal consistency of the set of items creating the scale. Meanwhile, split-half reliability is a method to measure the degree of internal consistency by checking one-half of the results of a set of scaled items against the other half. On the other hand, equivalent-form reliability is a method that measures the correlation between alternative instruments designed to be as equivalent as possible and administrated to the same group of subjects [17]. In this study, the first approach, internal consistency reliability was used to measure reliability, judging from its popularity in quantitative research and its availability in SPSS. The commonly accepted rule for describing internal consistency is Cronbach’s alpha [14]. As cited in Pallant [14], Cronbach’s value should be above 0.7 to be acceptable and considered high reliability. Cronbach’s alpha ranging from 0.8 to 1.0 is considered very good [13], whilst Cronbach’s value below 0.6 is deemed low, indicating that the study’s instrument is not reliable due to inconsistencies in the research instrument.
3 Pilot Test A pilot test is conducted to determine a scale’s internal consistency, stability, and reliability [19]. In this study, once the questionnaire was ready, after careful deliberation and due care not to miss the compulsory items, questionnaires were distributed to the management of ISO 14001-certified manufacturing firms using conventional mail and web-based survey tools. The list of the firms was referred to the Federation of
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Malaysian Manufacturers Directory 2019. The manufacturing firms with ISO 14001 certification were selected due to their environmental initiatives and implementation of good environmental practises [10]. After two weeks, follow-up phone calls were conducted to increase the response rate. The four constructs for sustainable performance consist of: (i) (ii) (iii) (iv)
economic performance construct (economic outcomes), consisting of 4 items, economic performance construct (operational outcomes), consisting of 8 items, environmental performance construct, consisting of 7 items, and social performance construct, consisting of 4 items. A 5-point Likert scale, ranging from extremely low to extremely high, was used for the measurement.
Once the identified firms were selected, questionnaires were distributed to those in the top and middle management positions, including the owners, chief executive Officers (CEO), managing directors, general managers, senior managers, senior executives, and senior engineers. A total of 40 questionnaires were distributed to selected participants in mid-2019. Prior to the COVID-19 pandemic, the combination means of emails and hard copies of the questionnaires were hand-delivered to firms in the Klang Valley where the majority of ISO I4001-certified firms in Malaysia concentrated. The same questionnaire was emailed to respondents using the standard email and a web-based tool was also attached to the email. After two weeks, the response was follow-up with a phone call and social media such as Facebook and LinkedIn to increase the response rate. The firms were asked the time that they were required to answer the questions. Based on the feedback, respondents took an average of 25 min to answer the question, which was deemed suitable. The respondents were also asked to comment and give suggestions for improvement of the instrument. After three months, the researchers received good feedback. A total of 25 firms, an equivalent of 62.5% of delivered questionnaires, were answered. The feedback received from the firms was analysed using a descriptive statistics technique and a reliability test using SPSS version 22.
4 Findings and Analysis—Reliability of Research Instruments The finding of this study was to determine the reliability of the questionnaire for the measurement of sustainable performance in ISO 14001-certified manufacturing firms. The validity of the items in the questionnaire used correlated item-total correlation. This value indicated the degree to which each item correlates with the total score. The Cronbach’s alpha (CA) value was then used to obtain a reliability index for related constructs. Table 1 shows the constructs for economic performance (economic outcomes). The correlation number of each item with the total score reached between 0.791 and 0.941, whereas the total value of the CA was 0.946.
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Table 1 The values of the construct of the economic performance (economic outcomes) Construct
Item
Corrected item- total correlation
CA if item deleted
CA
Economic performance (economic outcomes)
1
0.882
0.925
0.946
2
0.791
0.953
3
0.941
0.912
4
0.884
0.925
Table 2 shows the constructs for economic performance (operational outcomes). The correlation value of each item with the total score reached 0.690–0.925, whereas the total value of the CA was 0.956. Table 3 shows the constructs for environmental performance. The correlation value of each item with the total score reached 0.547–0.969, whereas the total value of the CA was 0.959. Table 4 shows the constructs for social performance. The correlation value of each item with the total score reached 0.722–0.872, whereas the total value of the CA was 0.926. Table 2 The values of the construct of the economic performance (operational outcomes) Construct
Item
Corrected item-total correlation
CA if item deleted
CA
Economic performance (operational outcomes)
1
0.690
0.958
0.956
2
0.805
0.951
3
0.922
0.944
4
0.925
0.944
5
0.738
0.955
6
0.869
0.947
7
0.890
0.946
8
0.823
0.950
Table 3 The values of the construct of the environment performance Construct
Item
Corrected item-total correlation
CA if item deleted
CA
Environmental performance
1 2
0.959
0.944
0.959
0.944
0.946
3
0.916
0.948
4
0.910
0.948
5
0.969
0.943
6
0.758
0.961
7
0.547
0.974
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Table 4 The values of the construct of the social performance Construct Social performance
Item
Corrected item-total correlation
CA if item deleted
CA 0.926
1
0.807
0.909
2
0.722
0.924
3
0.809
0.908
4
0.832
0.905
5
0.872
0.895
5 Conclusion This study aimed to examine the reliability of the instrument used to measure the sustainability performance of ISO 14001-certified manufacturing firms in Malaysia. The results showed the correlated item with a total correlation larger than 0.30. This indicates a high validity value, as suggested by most researchers in the literature. The CA value that exceeded 0.60 concludes that the items had good internal stability and consistency. According to the literature, the satisfaction with life scale has good internal consistency with an alpha coefficient of 0.85. In this study, the CA coefficient was 0.946 for the economic outcome, 0.956 for the operational outcome, 0.956 for environmental performance, and 0.926 for social performance. The instrument to measure sustainable performance has the value of the correlation and CA has a very high value of the instrument’s reliability. The high reliability of an instrument is vital in quantitative research because it is deemed reliable to measure the research’s intention. In the current pilot study, small data were used, giving confidence to further research that uses bigger data to get accurate results. For the practical application, this study contributes to new knowledge in terms of instrument reliability and actual implementation of sustainable performance, which is the sustainability concept that has been adopted in manufacturing firms. The manufacturing firms which previously focussed on their economic growth have recently adopted environmental and social factors to achieve sustainability. Acknowledgements This research is funded by Malaysian Technology Development Corporation (MTDC), under Education Assistance Programme.
References 1. Abdul-Rashid, S. H., Sakundarini, N., Raja Ghazilla, R. A., and Thurasamy, R. (2017). The impact of sustainable manufacturing practices on sustainability performance. International Journal of Operations and Production Management, 37(2), 182–204. https://doi.org/10.1108/ IJOPM-04-2015-0223.
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2. Carvalho, N., Chaim, O., Cazarini, E., and Gerolamo, M. (2018). Manufacturing in the fourth industrial revolution: A positive prospect in Sustainable Manufacturing. Procedia Manufacturing, 21, 671–678. https://doi.org/10.1016/j.promfg.2018.02.170. 3. Cohen, J. W. (1988), Statistical power analysis for the behavioral sciences, Ed. Second, Hillsdale, Lawrence Erlbaum Associates, New Jersey. 4. Ghazilla, R. A. R., Sakundarini, N., Abdul-Rashid, S. H., Ayub, N. S., Olugu, E. U., and Musa, S. N. (2015). Drivers and barriers analysis for green manufacturing practices in Malaysian smes: A preliminary findings. Procedia CIRP, 26, 658–663. https://doi.org/10.1016/j.procir. 2015.02.085. 5. Gong, M., Simpson, A., Koh, L., and Tan, K. H. (2018). Inside out: The interrelationships of sustainable performance metrics and its effect on business decision making: Theory and practice. Resources, Conservation and Recycling, 128, 155–166. https://doi.org/10.1016/j.res conrec.2016.11.001. 6. Habib, M. A., Bao, Y., and Ilmudeen, A. (2020). The impact of green entrepreneurial orientation, market orientation and green supply chain management practices on sustainable firm performance. Cogent Business and Management, 7(1), 1–21. https://doi.org/10.1080/23311975.2020. 1743616. 7. Hall, J. K., Daneke, G. A., and Lenox, M. J. (2010). Sustainable development and entrepreneurship: Past contributions and future directions. Journal of Business Venturing, 25(5), 439–448. https://doi.org/10.1016/j.jbusvent.2010.01.002. 8. Hamann, R., Smith, J., Tashman, P., and Marshall, R. S. (2017). Why Do SMEs Go Green? An Analysis of Wine Firms in South Africa. Business and Society, 56(1), 23–56. https://doi.org/ 10.1177/0007650315575106. 9. Hosseininia, G., and Ramezani, A. (2016). Factors influencing sustainable entrepreneurship in small and medium-sized enterprises in Iran: A case study of food industry. Sustainability (Switzerland). https://doi.org/10.3390/su8101010. 10. KeTTHA. (2017). Green Technology Master Plan 2017–2030. Retrieved from https://www. greentechmalaysia.my/about/green-technology-master-plan/. 11. Ngu, H. J., Lee, M. D., and Bin Osman, M. S. (2020). Review on current challenges and future opportunities in Malaysia sustainable manufacturing: Remanufacturing industries. Journal of Cleaner Production, 273(July), 123071. https://doi.org/10.1016/j.jclepro.2020.123071. 12. Nor-Aishah, H., Ahmad, N. H., and Thurasamy, R. (2020). Entrepreneurial leadership and sustainable performance of manufacturing SMEs in Malaysia: The contingent role of entrepreneurial bricolage. Sustainability (Switzerland), 12(8), 3100. https://doi.org/10.3390/ SU12083100. 13. Nunnally, J. C. and Bernstein, I. R. (1994), Psychometric theory, Ed. ke-3, McGraw-Hill, New York. 14. Pallant, J. (2013). SPSS Survival Manual 5th Edition. 15. Pavot, W., Diener, E., Colvin, C. R., and Sandvik, E. (1991). Further Validation of the Satisfaction With Life Scale; Evidence for the Cross-Method Convergence of Well-Being Measures. Journal of Personality Assessment. https://doi.org/10.1207/s15327752jpa5701_17. 16. Soto-Acosta, P., Cismaru, D. M., V˘at˘am˘anescu, E. M., and Ciochin˘a, R. S. (2016). Sustainable entrepreneurship in SMEs: A business performance perspective. Sustainability (Switzerland), 8(4). https://doi.org/10.3390/su8040342. 17. Sundaram, V. P. K., Chandaran, V. G. R., Atikah, S, B., Rohani, M., Nazura, M. S., Akmal, A. O., Krishnasamy, T. (2016). Reseach Methodology: Tools, Method and Techniques (First Prin). Selangor: Malaysia Logistics and Supply Chain Association (MLSCA). 18. Stoner, J., Perrewe, P. L. and Hofacker, C. (2011), “The development and validation of the multidimensional identification scale”, Journal of Applied Social Psychology, Vol. 41 No. 7, pp. 1632–1658. 19. Uma Sekaran and Roger Bougie. (2016). Research Method for Business: A Skill-Building Approach (7th Edition).
“Tok Peraih”—The Myth of Entrepreneurial Leadership Among Malay Women in the East Coast of Peninsular Malaysia Mohd Rafi Yaacob, Mohd Shukran Ab Majid, Mohd Nor Hakimin Yusoff, and Hassanuddiin Hassan
Abstract Over the years, women have made themselves outstanding in the manoeuvrability and dynamism of the business world. Explicitly and implicitly, the notion of involvement among women in business is deemed to be extraordinary and welcomed with open arms by many. After all, women know their livings are the uppermost of achieving superiority by the means of business as well as life beyond businesswoman or the vivid cases of good living. Unlike other branches of knowledge, Entrepreneurial Leadership is a new concept, and it has been largely dictated based on man-related leadership and entrepreneurship in big business, Western society, and its hegemony. However, among women, although this is yet very paramount, it has not been refined according to their nature, mindset, presence in the market, and involvement with their business fraternity and stakeholders around them. This is especially true in the context of developing countries and specific regions or areas. Against this backdrop, this study closely wishes to determine the base of entrepreneurial leadership among women entrepreneurs in the East Coast of Peninsular Malaysia, using Tok Peraih as the case. As the said title symbolises the point maker among businesswomen as they furnish their exemplary achievement within the local business community and market vicinity, they are known as the point makers and the market controllers. The finding notifies that entrepreneurial leadership is not nonsensical myth, and it is a well-known fact that those women are predominantly people albeit being surrounded by facts of male domain enterprises. Their existence, role, and achievement command for deeper explanation. Keywords Tok Peraih · Entrepreneurial leadership · Women entrepreneurship
M. R. Yaacob (B) · M. S. Ab Majid · M. N. H. Yusoff · H. Hassan Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Kota Bharu, Malaysia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_46
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1 Background of the Study The study of entrepreneurship has changed the mind and concept of why and how entrepreneurship is relevant to the creation of a successful business path. The venture to new entrepreneurial leadership has struck the business magnitude to be sound far and aloud by the meniscus of touch and perseverance for innovation and exploration. Harper [4] opined entrepreneurs as the people who defy simple categorisation and stereotyping, for him entrepreneurs are explorers that showed great ability to successfully confront and weather challenges and take risks to achieve their dreams. The entrepreneurship movement entails a passage of determinants for a venture, the meaning terms to display about huge involvement, the starting point on how business is first made, and how it is renewed and moves ahead for new scope of strategic exploration. The starting point for many entrepreneurs is quite and tremendous with fraught challenges and many things unsettled including resources. As Harper [4] outlined with a few words of venture reasoning; start in a garage, drop out of college, get a marginal grade on your business plan while in college, be irrelevant, notice that the world does not operate with banker’s hours, get turned down for funding more than 100 times. The strange factors for entrepreneurship create monumental issues on how entrepreneurial leadership verifies straight movable trends. This logic is tremendous. It would sustain the effect of myth or reality check whether these issues may determine the stand of women to behave regularly or not in their businesses. These businesses can start from illogical things, and these things become logical when they stage a fruitful episode. It is rather a myth that accurately responds to the truest entrepreneurship values. The motive of this study is to evaluate the concern among entrepreneurs with the strategic mind of women entrepreneurs. As much of the behavioural conclusion on why and how women put their business location by the niche of small business management emancipation, the diction to succeed by gender specialty “women are the heart of human world” is the truth with certain exceptions. Women entrepreneurs retain their relevancy through business aptitude, and the passage to equivocal the movement that any tendency for leadership is very clear. The logical issue of whether those relevancies will pave out any shortcomings, irregularities, and the notion is a timing factor. It is always enterprising to forever notice that women’s involvement in businesses is above expectation, within the economic conundrum and the sensation goes to oppose that self-explained business cannot match further with the current requirements. Enterprise is subject to market equilibrium, and the framework to subject the women entrepreneurs is much a deliberation on how enterprise management strategy wishes to locate sensible small business management. Arguably, women entrepreneurs are the brainchild of the sensitive atmosphere including their socio-culture, where the domain of male entrepreneurs explicitly and implicitly triggers a normative and formative influence and pronounces to surrounding that activate women into a slew of business ventures that might suit
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their roles and nature. Entrepreneurship senses create an intuitive effect for women to liberalise themselves from male-dominated activities; the venture to any of the business with the spiritual conclusion of entrepreneurial leadership effect. Hisrich et al. [6] elaborated on cognitive adaptability which is reflected in an entrepreneur’s meta-cognitive awareness, that is, the ability to reflect upon, understand and control one’s thinking and learning. This metacognition describes a higherorder cognitive process that serves to organise what individuals know and recognise about themselves, their task, their situation, and their environment to exploit and promote effective and adaptable cognitive functioning in the face of feedback from the complex and dynamic environment. Like men entrepreneurs, women entrepreneurs elaborate cognitive sense in seemingly saturated business behaviour, but the latter mathematics’ figurations always closely adapt to factors within and without enabling them to find niche and successfully penetrate the market. It is noted that the beginning of trade within transnational civilisation involved women but the calculation tries to demean that the myth between business atmospheres is quite hazy. Women are traders by course of various challenges and tribulations, and the notion hitherto is about exquisite; the consequences when they successfully deal with and weave all important parties involved in the transaction.
2 The Meaning of Tok Peraih “Tok Peraih” is a local jargon synonymous with enterprising effect for strategic entrepreneurial leadership accomplishment. After all, the name comes from the combination of two words; ‘Tok’ in Kelantan and Terengganu, which is a short form of ‘Datuk’ translated as the grandfather, referring to someone who is older as well as someone who is respected due to his or her knowledge, and the word “Peraih” comes after the English word “Enterprise”. Simply put, Tok Peraih means someone associated, especially women who have business acumen and play important roles in a fresh or wet market. In Asia, a wet market or a fresh market is a market selling fresh meat, fish, and produce, and here women play a major role in business activities available. Enormously, wet market traders are almost women with similar discipline and frugality, and the metadata are the same as the other one. The myths are to zeroing any assumption that entrepreneur leadership among women are minorities in concept. Tok Peraih signifies power, value, and networking. It dictates adhesive and talkative enterprise which emancipate the knowing of business playmaker, networking, entrepreneurship conviction, and the most is the local market coverage.
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3 Contextual Leadership Upon Women Entrepreneurs Women entrepreneurs tend to operate smaller businesses. They use less finance and operate in more competitive industry sectors with lower returns and survival rates, and they undertake more household duties in addition to their business activities (Parker 2009). Women entrepreneurs are regarded as themselves to complement the tenet of family obligation and they chart the possibilities and meaning of entrepreneurship as a breed of real life’s accomplishment. The case is well-defined for women in Asian countries, African continent or Latin America. It shows that women’s entrepreneurship is not only solely dependent on business, but also the factor of self-living and self-improvement. Studies by Cowling [1] indicated interrelated family issues such as marriage, household production, and child-rearing affect women’s entrepreneurship. The presence of children and marital status tended to be more influential on the female labour market decision suggesting that variables and time allocation might be the key to understanding more about the female labour market decision. It is noted that women with childcare or eldercare responsibilities have a higher propensity to become self-employed. Previous research on women’s leadership style has shown that, while men and women lead in similar ways, there are also demonstrated differences in style by gender. Women have been shown to be transformational as opposed to transactional, and more participative and democratic in their leadership style than are many men [3]. Bancroft (1995) reported that women adopt a holistic, process-oriented approach that is inclusive and collaborative. Hence women’s voice has been largely ignored in organisational research. Organisations created and built by women may reflect their values and socialisation. In previous studies that regard social role theory, Diekman and Eagly [2] argued that women’s feminine social role expectations and masculine expectations as a leader are in binary opposition resulting in role incongruity. As Rosener (1990, cited in Moore et al. [8]) noted, women “are far more likely than men to describe themselves as transforming subordinates’ self-interest into concern for the whole organisation.” A female team leader in organisations is, therefore, likely to view her position in terms of supporting team members to assist in reaching their performance goals and go about this by employing a participative leadership style that ultimately results in leading in a different way. As entrepreneurs, women take similar initiatives, critical to the creation of a climate of trust. Construction of a trust climate involves many elements: each employee’s personal propensity to trust their past experiences, and based on continuous observations of the owner’s behaviour and information shared among workers, individual perceptions of the owner as an advocate who will reciprocate trustworthy behaviours (Drath et al. 2008, cited in Moore et al. [8]). The woman business owner tends to be continually cognizant of her actions and the ramifications of practises and behaviours that impact employees because she knows it is through their experiences that they perceive the firm’s overall fairness (Brockner et al. 2007, cited in Moore et al. [8]). As Morrison and Robinson (1997, cited in Moore et al. [8])
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described, the result is likely to be better performance outcomes because in a hightrust climate people show increased levels of loyalty, satisfaction, and engagement, and the resulting cooperation and free exchange of information leads to quicker and better decisions. Omwenga et al. [9] touched on the role of networks towards the performance of women entrepreneurs. The point of Boyd (2005, cited in Omwenga [9]) showed that networks have long been hailed as essential to the survival of female-run establishments. It has been found that support from personal network improves the survival, growth, and performance chances of new ventures. Mutuku et al. (2006, cited in Omwenga et al. [8]) emphasised that help and emotional support from a spouse are more important for the success of women entrepreneurs. Hin et al. [5] expressed that women entrepreneurs were found to prefer a more people-oriented style with soft skills personal approach and empowerment of staff. They also found that women seemed to have a complementary leadership style in certain situations where blends of feminine and the respondents preferred to analyse the situation before deciding on the most appropriate way to lead or manage the situation. This also implied that women entrepreneurs are practising more situational leadership. Kazumi [7] narrated that women entrepreneurs start-up their own businesses based on their experiences, usually related to their personal life. So, women entrepreneurs have the tendency to hire female employees who understand the feeling or needs of female customers. These programmes considering female employees will be necessary to obtain successful performance for the woman entrepreneur. Hence, the leadership style of a woman entrepreneur should be high consideration and various psychological studies in the entrepreneurship area indicated that entrepreneurial characteristics related to masculinity like initiative-taking, accomplishment, and relative risk. Its most obvious contention was the following: gendered attitudes to entrepreneurs make women invisible.
4 Research Design-Qualitative Study Qualitative research was designed to reveal a target audience’s range of behaviour and the perceptions that drive it with reference to specific topics or issues. It used in-depth studies of small groups of people to guide and support the construction of hypotheses. The results of qualitative research were descriptive rather than predictive. Qualitative methods for this research were based on open interviews and observation. Interviews were made at the business places of the respondents while observation took the time and action of the researcher to analyse the common and specific situation regarding the research question. Four respondents were chosen, and they comprised rice grocer, cloth merchant, salted fish seller, and keropok (fish crispy) and vegetable distributor. They operated their businesses in a wet market in one of the East Coast States in Peninsular Malaysia.
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The interviews were conducted back in 2014. Observations were made, and they enhanced the background point of the research. As with other qualitative studies, this research was not without limitations. This research may give assumptions at a certain juncture but did not truly examine the situation. The assumption was to complement variables pertaining to truth and examples of correct and incorrect variables. The interviews were based on judgement within time, and the timing and biases may cause the research facts to be questioned. It was the case that information may not be genuine, and the facts may be debatable and the lining to findings may be intertwined. It shows jargon absoluteness. This limitation also incurred researchers’ self-weaknesses. As many things to vehement and any interrupted focus may deviate researchers’ minds to observe or to question the right questions, and thus the produce did not relate much to the correct findings. These weaknesses may decrease the appropriateness of the research tools.
5 Exploring the Myth and Answer Interviews and observations made for this research obtained meaningful data, and the results were tremendous as they explained the fact that surrounded the entrepreneurs’ leadership issues with regard to women Tok Peraih. The functioning focus was to answer the research question highlighted above. Leadership things were questionable for the cases, as the respondents would relate some subjective facts that regarded their leadership credentials. The interviews with Respondent 1, the vegetable and keropok seller (fish crispy) distributor, had established a finding that leadership among women was partial in fact. The factors were normative, but relatively they showed that any consideration to the leadership of women Tok Peraih to the least and last had the inclusive influence of their husbands. Respondent 1 who succeeded for many years as entrepreneur still laid grasping the helping hand from her husband for the sake of business manoeuvrability. The starting facts as they operated the business in the context of husband-wife sharing; vegetables under the hand of the wife and keropok and salted fish under the hand of the husband, but they shared the same operation mechanism, and profits were accumulated into one coffer. It was normal for a traditional business entity as they regarded the business account as one and accessible to families, and they did not have any current account for the business (in this case). The important point in the case of leadership was about perseverance and willingness for challenge and great concern for frugality. As the starting share of the business was amounting to RM1,000, the concern between the woman and his husband was the challenge of well-expansion and making a profit for future years. The business survived with a magnitude of expansion and stability, establishing the status as Tok Peraih for all sorts of vegetables and salted fish and keropok. Another important fact about Respondent 1 was her ability to stand still with her own financial standing, i.e., without a banking loan. Her business was quite progressive but she had shown acumen to be a good money handler without relying
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on a bank loan or government institution. It showed the character of leadership, as she managed the enterprise will self-financing and concrete obligation without burdening the business with loan repayment and interest rate. In addition, an interview with Respondent 2 gave a more in-depth conclusion to the entrepreneurship leadership of women Tok Peraih. The longing years as an entrepreneur had given the respondent certain entrepreneurship values to magnify and modify the business entity. The constraint was subjected to certain woman’s representation as decision makers towards business programming. It looked like so many things could be done, but it took thinking and innovation. The competency to make the right decisions was a little bit of a problem. Though the husband was in the family, Respondent 2 did not share the business with her husband as he operated a full-time barber shop. The many years of entrepreneurship had made Respondent 2 face the problem alone, and for the sake of help, she hired an assistant to assist her. Her husband did not interfere, and she solely managed the business with the help of her assistant. At this juncture, the respondent managed to engrave her own leadership style, as such conviction made her stay still with the sales, but conclusively women’s leadership was not straight as they feel low in certain circumstances. Respondent 2 used to be a distributor of salted fish, but she stopped it due to payment failure. This case was quite a frustrating for her, and within the emotion, women cannot bear something that affected their business income and saving. The factors of business challenge determined variation in Respondent 2’s business path. As a woman who used the business for the sake of living, she showed a great consciousness to be frugal, and despite having a business, she deeply focused on her children’s education development. This motherly feeling touched the concept of multiple roles of work of labour whereby human being utilised themselves with roles to consolidate their moment of living. Respondent 2 developed a motherly love of leadership, and it was very interesting to relate to entrepreneurial leadership values. Respondent 3 was adaptive and conscious as an entrepreneur, and she developed her entrepreneurial leadership with many cases and a history of achievement. At the age of fifty-nine with twenty years of entrepreneurship experience, she determined the business future with patience and hopefulness. She obeyed the business rule patiently, and her husband only assisted her to be a driver, and he then left her alone to be with the operations. She started from Pasar Tani (Agriculture Market) for ten years in Jerteh town and then switched to owning chains of textiles stores throughout Jerteh, Pasir Puteh, Tanah Merah, and Kota Bharu. She produced the fruits of perseverance as the business bloomed and made her to be a well-known woman Tok Peraih among the local communities. Her humble exposure and strand of management ability showed her leadership values, and she refused to be named a millionaire for her own reason. Her husband neither did nor verily influenced her business as he was readily involved in local activities of transacting cattle for meat. Respondent 3 also managed the business with her children’s and workers’ assistance in certain localities. She made her business open as a textiles distributor for Pasar Tani operators and other clothes retailers. Her business items were always in demand due to her easy negotiation and fair price. She took the things fresh from Kuala Lumpur and distributed them readily with good offers.
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Respondent 4 was rather passive as her life to be a single mother for many years had turned her to be a passive entrepreneur. She did not show leadership strength and looked regressive. She had two compartments for selling rice and other food items, and the place was strategic, but she did not take the space accurately. Her twenty years of accomplishments as an entrepreneur seemed to be lower due to the hardship of living alone as her children stayed far from her home. The subjects of business were as much to gain for her daily requisition. When asked if she could be called Tok Peraih, she declined as her state of business was not profitable. However, she showed signs of perseverance as the business started with an capital of RM1,000 and she managed to stand still for the business though it was not proven well to profitability. She showed certain traits of entrepreneurs with patience, and she was willing to do new things to meet her business ends. She tried another business by selling items to the like of medicine and other small household items. She explained that, because of her age, she did not have enough strength to weigh the gunny sack of rice, so it may be more logical for her to try selling lightweight and reasonable business items.
6 Conclusion This research subjectively identified that women Tok Peraih had their own leadership skills that were accomplished through the nature of the women themselves. They had the inner motherly strength that comparatively differed from male entrepreneurs. The logic was whenever comparison may touch on the issue of leadership values, women Tok Peraih were mild to leadership motion as they by hard or soft still obliged to their husbands or families’ directives. The essences of women Tok Peraih were sanguinity, patience, and perseverance in their entrepreneurship presentation. They had their own roots of background that differentiated their entrepreneurship upbringing, but nature more or less had the same path as women entrepreneurs have all the above qualities to achieving entrepreneurial motives. This research validated that the abnormality of entrepreneurial leadership values among women Tok Peraih was not an issue of conception, but it streamed to the nature of business, which sometimes differed from mainstream business in the normal market. Women Tok Peraih operated their business according to implicit household demands; thus it made definite variables that looked abnormal to certain business spectrums. The case of conception was to really understand the existence of women Tok Peraih and their vast contribution to entrepreneurship development that was based on “local” variations. Entrepreneurship leadership among women Tok Peraih may be or logic as myth. However, to apprehend the overall factors, their longing for historical move-over in the business arena needs to be investigated. The best question for future study is “Why do they exist?”.
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References 1. Cowling, M (2010), Entrepreneurship, Gender and Job Creation: European Dynamic, In: Brush, C.G, Bruin, A.D, Gatewood, E.J and Henry, C (ed), Women Entrepreneurs and The Global Environment for Growth, A Research Perspectve, Edward Elgar, Cheltenham, UK. 2. Diekman, A.B. and Easly A.H. (2000). Stereotypes as Dynamic Constructs: Women and Men of the Past, Present and Future. Personality and Social Psychology Bulletin, 26(10). 1171–1188. 3. Eagley, A.H. and Johnson, B.T. (1990). Gender and Leadership Style:A Meta-Analysis. Psychological Bulletin. 108(2), 233–256. 4. Harper, S.C (2005), Extraordinary Entrepreneurship: The Personal’s Guide to Starting and Exceptional Enterprise, John Wiley and Sons Inc., Hoboken, New Jersey. 5. Hin, C.W, Isa. F.M and Hashim, N, (2012), A Qualitative Study of Innovativeness, Strategies and Leadership Styles of Successful Women Entrepreneurs in Malaysia, Knowledge Management International Conference (KMICe) 2012, Johor Bahru, Malaysia, 4–6 July 2012. 6. Hisrich, R.D, Peters M.P, Shepherd, D.A (2010), Entrepreneurship, Eighth Edition, McGrawHill-Irwin, United States of America. 7. Kazumi, T and Kawoi, N. (2017) Institutional Support and Women’s Entrepreneurial Selfefficacy. Asia Pacific Journal of Innovation and Entrepreneurship. Vol. 11(3). 8. Moore, D.P, Moore J.L, Moore, J.W, (2011), Women Entrepreneurs Style of Transactional Leadership and Performance Outcomes: An Interactive Approach to Building a Climate of Trust, USASBE_2011_Proceedings-Page0062. 9. Omwenga, J.Q, Mukulu, E and Kanali, C, (2013), Towards Improving the Performance of Women Entrepreneurs in Small and Medium Enterprises in Nairobi County, Kenya: Policy Recommendation, International Journal of Business and Social Science Vol. 4 No. 9; August 2013.
Asiatic Clam (Etak) in Cambodia: An Exploratory Study of Social Economy and Business Activities Mohd Rafi Yaacob, Zulhazman Hamzah, Mohd Nazri Zakaria, Aweng Eh Rak, Rooshihan Merican, and Abdul Rahim Merican
Abstract Kelantan is renowned for its heritage and is named the cradle of the Malay culture in Malaysia. Due to its geography near Southern Thailand and Indochina, it shares many similarities in terms of social culture, including foods with people of the said places. Eating etak as a snack is common amongst Kelantanese, but not many Malaysians have known or heard of the clam, let alone taste it. Judging from the geographical background of Kelantan and its close relationship with its neighbouring countries, an academic guess was made that etak is also consumed in Thailand, Cambodia, Laos, and Vietnam. The purpose of the current paper was to answer the proposition based on the short trip to Cambodia. In general, Cambodians eat etak as their favourite snack. Hence, Cambodians are similar to Kelantanese that they favour eating etak, but the former prefers sundried, while the latter prefers eating smoked etak. Culturally, Cham and Kelantanese are similar in many ways, including clothes, foods, and manners. Physically, both are of small stature, with brown skin, black jet hair, and a small, beautiful nose. The researchers observed the source of the supply of etak and the clamming process in Tonle Sap Lake. Judging from the ample supply of etak from this lake, and its texture, size, colour, and information gathered on the ground, the clams imported to Kelantan via Thailand, may originate from this lake. Keywords Etok · Cambodia · Kelantan · Social economy · Business activities
M. R. Yaacob (B) · M. N. Zakaria · R. Merican · A. R. Merican Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Kota Bharu, Malaysia e-mail: [email protected] Z. Hamzah · A. Eh Rak Faculty of Earth Science, Universiti Malaysia Kelantan, Kota Bharu, Malaysia © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_47
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1 Introduction Kelantan is renowned for its heritage and is named the Malay culture cradle in Malaysia. Its foods are widely known and sought after amongst local and international tourists. Due to its geography near Southern Thailand and Indochina, it shares many similarities in terms of social culture, including foods with people of the said places. Etak is a common snack amongst Kelantanese, but many Malaysians may have known the food, let alone have tasted this unique food of Kelantan. There are two varieties of etak eaten as snacks amongst its populace, namely: etak salai (smoked clam) and etak jemur matahari (sundried clam). The former is a popular snack amongst Kelantanese and available along roadside stalls, especially in Kelantan’s floodplain area. However, etak is not only available in Kelantan. It is an Asiatic clam that thrives in rivers and lakes in the tropical regions of Asia. Kelantanese pronounces it as etok. Judging from the geographical background of Kelantan and its close relationship with its neighbouring countries, the researchers made an academic guess that etak is also consumed by people in the north. To find the answer to this proposition, the current research involved ‘Developing Business Model for Sustainability of Etak Salai, the Heritage Food of Kelantan’ in Thailand, Cambodia, Laos, and Vietnam. But nevertheless, the purpose of the present paper was to answer the proposition based on a trip to Cambodia. This exploratory study in nature adopted observation as a method of investigation. The observation was on whether etak is consumed by Cambodians. Amongst others, also observed was the social economy of the country as well as the availability and the presence of etak in the street of Phnom Penh, the capital city. As wet market has been an indicator of the ingredients of the foods available on tables, research was also conducted in main wet markets to find etak. Furthermore, a daily trip to Tonle Sap, the largest freshwater lake in Southeast Asia and the main source of supply of the said clam, was also conducted. This exploration was guided by a young Muslim Cham who was able to speak the Kelantanese dialect fluently, as he stayed in Kelantan for a few years when he was a student in a religious school in Kelantan. Since English was not widely spoken by people in the street and the researchers could speak Khmer, his help was significant. He also arranged local transportation to travel to Tonle Sap Lake and around Phnom Penh, the Capital City of Cambodia. His arrangement and presence in the field facilitated and offered great help in the investigation of this elusive clam. Prior to this exploratory study, knowledge about the consumption of etak mainly in Kelantan and outside Malaysia was patchy and limited. This exploration would be an eye opener as it sheds light into the consumption habit of this clam and business activities related to it in Cambodia, where Cambodians are culturally and ethnically close with Malays, and amongst the Malays, Kelantanese is the nearest and share a lot of commonalities.
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2 Cambodia, the Chams and Asiatic Clam (Etak) in Brief Geographically, Cambodia is bounded on the north and northwest by Laos and Thailand, on the east by Vietnam, and on the southwest by the Gulf of Siam. Kelantan is the nearest state of Malaysia to Cambodia (refer to Map 1) [2]. Cambodia consists of the fertile and alluvial plain of Mekong, the mighty river that has its source in the Tibetan Plateau. This river flows through Cambodia from north to south and periodically floods the country. The capital of Cambodia, Phnom Penh, is situated along the bank of the said river. The climate of the country is tropical, and part of the land is covered by dense forests. Cambodians for many centuries have dwelled on the banks of the Mekong River. They convert and clear forests to fertile rice fields. Tongle Sap, also known as the Great Lake, is the largest lake in Southeast Asia. During the flood season, the Mekong River overflows into the lake which serves as a reservoir for the river. The current population of Cambodia is close to seventeen million. Khmer ethnicity dominates the total population with 90%. The Cham is a minority ethnic of Cambodia, making up approximately a quarter of a million in number. The Chams, physically small in stature, with dark brown skin and straight black jet hair, are mostly Muslim, the descendants of sea-faring Austronesian or Malay people from the Islands of Southeast Asia. A long time ago, their ancestors built a powerful empire called Champa in Indochina, but now, the majority of Chams live in Kampong Cham Province. Many of them are farmers, and recently many have served in the government. The Asiatic clam is a species of freshwater clam native to Eastern Asia. This species thrives in the Mekong River and Tonle Sap Lake in Cambodia. The clam spreads throughout the world, as far as North America, and it is known as invasive species. In Wikipedia (en.wikipedia.org/wiki/Cambodia), it is reported that the species is consumed in Japan, China, and other countries in Asia. They feed primarily on algae or phytoplankton as well as organic matter in the sandy or muddy bottoms of streams, lakes, or canals (Fig. 1).
3 Research Method—Exploratory Study Through Field Observation According to a well-known American sociologist, Esterberg [5], observation is the heart of qualitative research to understand social life. Unlike other methods, observations need to be in natural settings in which social life takes place to observe what people really do [1]. The non-participative observation was chosen as the method of the present study and was justified based on several reasons. First, this study was an exploratory study, where the purpose was to get an early insight into the understanding of the interest. Second, this study was conducted with time limitations because it was only a few-day visit, hence it was impossible to
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Fig. 1 Map 1: Cambodia, its neighbouring countries, and Kelantan
conduct a thorough investigation. Third, was the language barrier. English was not widely used by the public in Cambodia. Other instruments such as surveys were only possible in the Khmer language, which required time and local people for translation purposes. There were three ways data were captured during the field observation: writing field notes, taking photos, and shooting short videos. Writing things down in the field helped the researchers to refer to and to remember things around them because it was impossible to remember all things observed. Field notes were the researchers’ writing records of what was observed [3]. According to Esterberg [5], writing makes meaning. The researchers organised their thought and make sense of what they were observing by writing to actively engage in an active process of interpretation and sense-making. At the same time, they made judgements about what was important in the observed setting. This process was emphasised by Emerson et al. [4] and Esterberg [5].
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Taking photos in the field is proven essential for social researchers. With the help of smartphones, the researchers snapped as many pictures as possible and later selected the ones to use. Notes-taking could record feelings and opinions of objects of their interest without photos that researchers could miss. Moreover, shooting videos in real settings in the field is made easier via smartphones. Videos can capture moving objects and activities to be shared with other people what is being experienced in the field.
4 The Exploration of Its Findings In the first meeting with the guide, information on etak from Tonle Sap Lake was retrieved. The researchers left the accommodation in the capital city to the north. To immerse and acquaint themselves with the local culture, the researchers had beef noodles and black coffee for breakfast, as suggested by the guide. The Mekong River originates from the Tibetan plateau and flows parallel to the main road. Water on the surface of the river shining and glimmering was reflected in the stream of rays of the morning sun. Later, the views changed when the journey reached rural settings. On the right and the left were vast views of dried brown rice fields with stubbles, void of vegetation except for palm trees. A herd of yellow–brown cows and bulls, a similar breed in Kelantan grazed in the distance. New buildings along the roadside were under construction during the visit. Passing a few villages, there were similarities in the type of terracotta and thatched roof stilt wooden houses, about eight feet above the ground with wooden window shutters. Orchard fruits, including mango and coconut trees, surrounded houses. Then the researchers had the opportunity to observe Cham’s houses when the van stopped in a village to wait for a man familiar with the Muslim community who lived in Tonle Sap Lake. Underneath one of the houses was a big earthenware, clothes hanging on the washing line, and a bamboo bench. Such a panorama transported the researchers back to Kelantan in the 1960 and 1970s, where kids played kites in the rice fields after crop harvesting seasons and where kids climbed and descended on the wooden ladders of their grandparents’ houses made partly of bamboo and wooden wall (Fig. 2). For an exploratory study, experience and opportunities to discover sociocultural and economic conditions of Cambodia were prominent. On the journey to the famous Tonle Sap Lake, the researchers dropped by a local Islamic school or institution that was in its last preparation, as the host, to accommodate a big congregation of Tabligh throughout Asia. A brown skin elderly bearded gentleman with a checkered red and white turban, similar to what Kelantanese men usually wear on their heads, stopped the van. The similarities in physical appearance, clothes, and culture between Kelantanese and Muslim Chams are not surprising because this minority ethic of Cambodia is associated with Kelantan. Universiti Malaysia Kelantan city campus is situated in Pengkalan Chepa. ‘Chepa’ refers to Cham or Champa. In English, it is literally translated as the Port of Champa, referring to the Port of Cham, a place where people came to trade with locals in
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Fig. 2 Photo 1: the physical appearance and clothing of a Muslim Cham
the past. A brief stop here enriched the knowledge about this community, reflecting the culture and reigniting the memories of Kelantan in the formative years of the researchers’ life. The researchers were elated to see etak or Asiatic clams on the wooden push carts in front of the busy main wet market in Kampong Channang City, the capital of Kampong Channang province in Central Cambodia. It proved that etak, the popular snack in Kelantan, was also consumed by people in the north, including Cambodia. The researchers approached the two push carts of sundried clams and observed them from a short distance. The owners were middle-aged women, wearing colourful round hats and flowery shirts sitting next to the carts, which on top of it was etak, laced and sprinkled with red chillies. Soon a female customer who rode a black motorcycle stopped and bought a small plastic bag of spicy-chilli-flavoured clams, at the same time she sampled in her mouth and tasted one or two while talking with the vendor before disappearing from the sights. Soon, other customers came and bought her clams. In Kelantan, etak salai or smoked clam is popular, but in this city, the sundried clam is the favourite of many customers. Sundried clams are naturally cooked when they are left under the scorching hot sun, for approximately after three to four hours. Since clams are mussels that can be eaten raw, it doesn’t require proper cook on a hot fire. Apart from the chilli flavour, customers could choose plain clams, salty clams, and spicy lemon clams. As for Kelantanese, there is uncertainty and doubt about the halal status of the sold sundried clams.
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The researchers arrived at the riverbank of Tonle Sap and found all sorts of rubbish: plastic bags, aluminium cans, empty bottles, and papers. While this place seemed to be deserted after vendors and customers who came here in the morning already dispersed, sheds of various sizes and selling varieties of foods and drinks were haphazardly built and occupied the area. Wooden shops built on stilts were situated on the edge of the water with a motorcycle shop that used wooden planks as a platform to connect the shop with the dried ground. Colourful long tail boats, overwhelmingly made of wooden planks moored in the shallow water. On a long tail boat, an engine was attached at the stern above water and an adjustable long pole with a propeller. In Tonle Sap Lake, most landless people stayed in houses on stilts, but a few preferred to live on boats. Living on boathouses means easy for them to move and carry all their belongings, including their children and pets. They had no land, but boats and their precious possession could be inherited from their parents. They lived far from basic needs like running water and electricity which are considered a must for many. From the observation, suffice it to say people who lived in this lake were poor and lived in abject poverty. While waiting for a long tail boat to the nearby floating village, the researchers observed and snapped some photos relating to etak business, vendors, and their customers. Since sundried etak required heat, the vendor placed them evenly on the rectangular wooden table or on a round big steel plate under the hot sun. Customers who bought and consume etak came from all walks of life, ranging from children and teenagers to adults of both genders. A young lorry driver walked and ordered a small plastic bag of etak. A female vendor then scooped a tin can of etak, which cost him about KHR1,000, the equivalent of MYR1. From the observation, sundried etak was a popular snack amongst the community. Near the boats, a heap of gunny sacks full of etak was waiting to be transported. While the researchers came here mainly to observe the clamming activities of etak as the instruments of the research, they could not help but to observe the surroundings, after all, as social science researchers, their lab is in a natural setting. Describing views of the physical surroundings, human activities, as well as feelings of the researchers in the field, was paramount for the researchers (Fig. 3). Most people living in the floating villages of Tonle Sap Lake were fishermen of Vietnamese origin. There were a small number of Cham Muslims in Tonle Sap Lake, who lived in the Chhnok Tru floating village. Like other dwellers, most work as fishermen, earning a living from fishing. They built a small floating mosque for congregation prayer and conducted other activities like Qur’anic classes. Overhanging on the wall were the local times of five daily prayers and planks with the names of a few Malaysians who visited the place before. The bespectacled white hair and radiant face imam, in his late 50 s, who wore a white turban briefly informed that 97 families, about 400 Muslims stayed in the village. The visit would not be completed if the researchers did not personally see and noted down how etak was harvested in Tonle Sap Lake. Tonle Sap Lake was rich with aquatic life including fish, snails, and clams, which continuously provided food and livelihood for the local community for generations. Hoping on a bigger wooden
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Fig. 3 Photo 2: sundried clam (etak) on the shore of Tonle Sap Lake
boat, the researchers sailed to the vast open water, so big that hardly one could see land from both sides, indeed this lake itself is an ocean on its own. In the middle of the lake, two wooden boats and a score of fishermen clammed etak using nets. They dragged the nets to the bottom of the shallow lake. Clams that were trapped in the net were lifted and stacked on the wooden deck of the boat and transferred to an iron basket to sieve them accordingly. Baby clams, which were smaller in size, would be spared and released to the lake, and allowed to grow. After some time, the fishermen left and the researchers had photos, notes, and videos as evidence of the clamming activities. On the following day, the researchers visited the Russian Market, in the capital city, locally known as Phsar Toul Tom. The word ‘Phasar’ is synonymous with the Malay word for market. The market is named after Russia because in the 1980s many expatriates, especially from USSR, went there for shopping. Unlike the dry section, the wet section of the Russian market was livelier. Stacks of smelly dried freshwater fish neatly arranged on big bamboo trays were perhaps from Tonle Sap Lake. Unlike fish, crabs and prawns were preponderant items amongst sellers and customers, and only a few vendors of etak. Etak were displayed on a plastic basket or a steel bowl on the market floor. There were two types of etak; one was relatively bigger and darker, and the second was relatively smaller and yellowish. The former had likely thrived in muddy beds and the latter grew in a sandy riverbed. On the next day, the researchers observed the selling and buying of sundried clams around Phnom Penh. Looking and observing the different types of sundried clams spreading on pushcarts of women vendors and their customers at different
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Fig. 4 Photo 3: Sundried clam (etak) on a busy street in Cambodia
locations. The researchers could easily find and locate sundried etak carts in the capital, along the narrow and busy roads as well as in front of markets. There were different flavours of clams: chilli-hot, spicy, and ordinary. Small-statured women vendors wore big round hats to avoid the scorching sun as they needed to move their carts of merchandise from one place to another to ensure etak was always exposed and naturally cooked under the long exposure to the hot sun. As usual, empty tin can containers, a similar size to a can of sweated condensed milk, were used as a scale of measurement of price where a vendor scooped the preferred etak of their customers before putting them in small plastic bags. The researchers found people of all ages consuming sundried etak. Unlike here, etak in Kelantan is usually sold at specific venues on roadsides. However, in both places, vendors of etak were predominantly women (Fig. 4).
5 Conclusion A short visit to Cambodia, especially in the capital of Phnom Penh, Kampong Channang City as well as the great Tonle Sap Lake enriched the researchers’ knowledge and experience about Asiatic clam, which is locally known as Leah or Leas. Overall, Cambodians, similar to Kelantanese, eat the clam as a snack. The researchers found similarities between the two nations. Cambodians and Kelantanese favour eating etak, but the former preferred sundried etak and the latter prefer eating smoked etak. Culturally, both in many ways were alike. Physically, both were of small stature, with
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brown skin, black jet hair, and a small nose. Thus, one hardly differentiates between the two. Observing clamming activities at the source of supply of etak in Tonle Sap Lake provided some clues about sustainability and the amount of etak in the lake. Judging from the ample supply of etak from this lake, together with its texture, size, and colour, the clams that originated from this lake were imported to Kelantan via Thailand. The guess was supported by the fact that etak can still live without water for 24 h. Hence, it is possible for etak to be transported from Cambodia via Thailand to Kelantan. Importing etak from Cambodia shows a mismatch between local supply and demand. However, as long as the demand is there, supply will come, albeit far away and etak is an example of such.
References 1. Barry Smart, Kay Peggs and Joseph Burridge. 2013. Observation Method (Sage: London). 2. ‘Cambodia-wikipedia.’ In. 2021. en.wikipedia.org/wiki/cambodia. Accessed on 14 August. 3. Eckhardt, Jonathan T, and Scott A. Journal of management Shane. 2003. ‘Opportunities and entrepreneurship’, 29: 333–49. 4. Emerson, Robert M., Rachel I. Fret; and Linda L. Shaw. 1995. Writing Ethnographic Fieldnotes (University of Chicago Press: Chicago). 5. Esterberg, Kristin G. 2002. Qualitative Methods in Social Research (McGraw Hill).
Pathways Towards Sustainability: Mediating Role of Green Human Resources Management Practices on the Relationship Between Green Intellectual Capital and Sustainable Performance Among ISO 14001 Certified Manufacturers Hanieh Alipour Bazkiaei, Noor Ullah Khan, Mohd Nor Hakimin Yusoff, and Roselina Ahmad Saufi
Abstract Over the years, sustainability has become an integral issue for manufacturers, especially during and after the COVID-19 pandemic. Businesses are operating in a highly competitive environment and need to ensure sustainability. Green human resources management (GHRM) practices and green intellectual capital (GIC) are vital factors in explaining sustainable performance (SP). The aims of this study were to investigate the direct relationship between GIC and SP and to assess the role of GHRM practices as a mediator in the relationship between GIC and SP. Quantitative data was collected from ISO14001 certified Malaysian manufacturers using adopted questionnaires. The data was analysed using structural equation modelling (SEM) by SmartPLS 4.0. The findings indicated that GIC was positively related to SP, and GHRM practices partially mediated relationship between GIC and SP among the manufacturers. This study also discussed the vital implications for manufacturers to adopt GHRM practices to promote GIC and improve SP. Finally, this study highlighted some key limitations and recommendations for future research. Keywords Sustainable performance · Green intellectual capital · Green human resources management practices H. A. Bazkiaei (B) Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan (UMK), 16100 Pengkalan Chepa, Malaysia e-mail: [email protected] N. U. Khan · R. Ahmad Saufi Malaysian Graduate School of Entrepreneurship and Business (MGSEB), Universiti Malaysia Kelantan (UMK), 16100 Pengkalan Chepa, Malaysia M. N. H. Yusoff Universiti Malaysia Kelantan Entrepreneurship Institute (UMKEI), University Malaysia Kelantan (UMK), 16100 Pengkalan Chepa, Malaysia © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_48
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1 Introduction Asia now is facing increasing environmental challenges and resource limitations in the economy [1]. Increasing the awareness of environmental sustainability leads the region to experience changes, making urgent improving models of economic and societal growth [1]. These changes inspire firms to integrate their business models with environmental management. In Malaysia, the contribution of the manufacturing industry to sustain economic growth is around 23% share of the gross domestic product (GDP) [2]. Likewise, the 12th Malaysia Plan 2021–2025 targets to address recent issues for long-term sustainability. The manufacturing sectors are primarily responsible for environmental waste and pollution as their productions generate an imbalance between economic, social, and environmental performances [3, 4]. Similarly, growing environmental issues have forced them to implement an environmental management system (EMS) [5]. The main drivers for Malaysian manufacturers to implement EMS ISO14001 are the required GHRM practices and effective environmental regulations [6]. GHRM involves specific policies and practices of HR, which create balance among dimensions of sustainable performance (SP) [7]. Environmental implicit knowledge is a root for organisations to understand environmental issues. Therefore, green intellectual capital (GIC) is a key to manage the environmental problems in this present economy, which would attain sustainability through knowledge transfer and other initiatives [8]. Hence, to overcome the problems, this study examined the relationship between GIC and GHRM practices to explain SP among ISO14001 certified Malaysian manufacturing firms. In addition, the current study investigated the mediating role of GHRM practices on the relationship between GIC and SP.
2 Research Model and Theoretical Foundations The current study applied two main theories including Resource-Based View (RBV) and Ability, Motivation and Opportunity (AMO) Theory to hypothesise the research questions. The AMO Theory is one of the most commonly used theories to test the influence of GHRM practices on organisational performance in previous empirical studies [9]. This study also used the RBV approach [10] to clarify the relationship between GIC and SP. Based on these theories, using GHRM practices and GIC, firms can improve their SP as depicted in the theoretical framework of this study (see Fig. 1).
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Fig. 1 Research model
3 Hypotheses Development: Green Intellectual Capital and Sustainable Performance Green intellectual capital is the whole of intangible assets, capabilities, and relationships of the company lead to maintain the environment [11]. In the literature, the most accepted framework to measure GIC entails three components, namely green human capital (human resources), green structural capital (organisational values), and green relational capital (relationships). Moreover, GIC is the heart of internal resource improvements towards realising environmental issues [12]. Other than that, green human capital is related to employee’s commitment to environmental issues and plays important role to make sustainability [13]. The green structural capital defines the set of organisational culture and managerial philosophies, among others, in protecting the environment [11]. Green relational capital, which plays a key role in sustainable development, is the set of a company’s interactions with different parts about green innovation and business environmental management [11]. Therefore, the first hypothesis of this study is as follows: H1 : GIC is positively related to SP.
4 Hypotheses Development: Green Intellectual Capital and Green Human Resource Management Practices The GHRM practices are a research area of growing concern in the organisational studies and sustainable HRM perspective. Nowadays, this topic targets environmental awareness considering social and economic welfare for employees and the organisation. Moreover, GHRM is about a systemic alignment of typical HRM practices and environmental targets of organisation [14]. It is necessary to incorporate the research towards HRM practices and environmental issues [9]. GHRM practices include HRM practices that are environment-friendly and the protection of knowledge capital [15]. Different levels of an organisation can drive knowledge, and GIC can be a director force to form and implement GHRM practices in the firm [16]. Hence, the next hypothesis of the current study is as follows:
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H2 : GIC is positively related to GHRM practices.
5 Hypotheses Development: Green Human Resource Management Practices and Sustainable Performance Environmental performance is a firm’s capacity to decrease the rate of environmental issues [17]. Social performance refers to social practices performed by organizations and different stakeholders [18]. Economic performance is about the financial performance of firms using green practices to improve their place in a specific industry. Therefore, GHRM practices including green selection and recruitment, training and development, and assessment rewards are important for employees’ well-being and firms’ performance [19]. These practices, when aligned with environmental management, will assist firms to get SP [14]. On the other hand, traditional human resource practices just focused on the economy. Hence, GHRM practices create balance among economic, social, and environmental performances [20] and improve EMS [21, 22]. Therefore, the next hypothesis in this study is as follows: H3 : GHRM practices positively influence SP.
6 Hypotheses Development: Mediating Role of GHRM Practices on the Relationship Between Green Intellectual Capital and Sustainable Performance The indirect and positive influence of GIC on performance has been proven by some studies [23]. Incidentally, specific GHRM practices play mediating roles in the performance relation. This indicates that some benefits of GIC may indirectly affect firm performance by emphasising GHRM practices. The intangible resources rarely influence performance directly and immediately [24]. Instead, they have a typical influence on firms through a series of cause-effect relationships. Consequently, it is expected that those who hold GIC for SP are more likely to apply GHRM practices. So, it is worth evaluating the mediating role of GHRM practices on the relationship between GIC and SP. Therefore, the last hypothesis of this study is as follows: H4 : GHRM practices mediate the relationship between GIC and SP.
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7 Research Methodology This study attempted to investigate the direct relationship between GIC and SP and to assess the mediating role of GHRM practices in this relationship. Quantitative data was collected from ISO14001 certified Malaysian manufacturers, using adopted questionnaires designed with a 5-point Likert scale. In this research, GIC was measured by using three elements, namely green human capital, green structural capital, and green relational capital [11]. Using the scale developed by Jabbour et al. [25], the GHRM practices were measured with three dimensions namely green training and development, green recruitment and selection, and green assessment and rewards. Finally, SP was measured using three areas, namely economic, social, and environmental performances [26, 27].
7.1 Target Population and Sample Size There are around 2,700 manufacturers listed in the Federation of Malaysian Manufacturers (FMM) directory [28]. However, only 492 firms have the ISO14001 certification. Thus, this study selected a minimum sample size of 212 respondents among the managerial staff of ISO14001 certified manufacturing firms.
7.2 Data Analysis In this study, the data was analysed using Structural Equation Modelling (SEM) and SmartPLS 4.0. To test the research hypotheses, this study applied the quantitative method using a deductive approach according to positivist philosophy. Firstly, this study coded the data using SPSS 28. Then, it refined the data by different statistical processes like missing values identification, outliers, normality, linearity, homoscedasticity, and multicollinearity. Then, when multivariate analysis propositions were met, this study analysed the data using SEM applying SmartPLS 4.0 software, including the measurement and structural models’ analysis.
7.3 Company Background As for the descriptive analysis, the majority of the samples were in beverages, food, and tobacco industrial groups (24%), followed by electronics (18%), chemicals such as petroleum (16%), and fabricated metals (10%). Furthermore, less than 10% were from other industrial groups, namely transport (8%), machinery (8%), rubber (7%), plastic (6%), and others (3%).
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Table 1 Convergent validity Items loading
Composite reliability (rho_c)
Average variance extracted (AVE)
GHRM practices
GHRMP01 GHRMP02 GHRMP03 GHRMP04 GHRMP05 GHRMP06 GHRMP07 GHRMP08 GHRMP09 GHRMP10
0.704 0.720 0.742 0.806 0.775 0.753 0.733 0.761 0.768 0.741
0.928
0.564
GIC
GIC02 GIC03 GIC05 GIC07 GIC11 GIC12 GIC14 GIC15
0.774 0.795 0.770 0.713 0.753 0.732 0.711 0.704
0.909
0.554
SP
SP01 SP02 SP03 SP04 SP05 SP06
0.771 0.871 0.867 0.876 0.861 0.851
0.940
0.723
7.4 Measurement Model This study assessed the measurement model through convergent and discriminant validity. To confirm the measurement model, the evaluation of convergent validity was one of the vital stages. To establish convergent validity, three important standards need to be met, namely factor loading greater than 0.70, average variance extraction (AVE) greater than 0.50, and composite reliability (CR) greater than 0.70 [29]. Table 1 shows that all values of standardised factor loading were more than 0.70 with AVE greater than 0.50 and CR greater than 0.70. So, there was no violation of convergent validity proposition in the current study. Figure 2 displays the adjusted measurement model.
7.5 Discriminant Validity The conceptual distinction of two similar concepts from each other makes a discriminant validity proposition. In this study, two parameters were used to assess the
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Fig. 2 Adjusted measurement model
Table 2 Heterotrait-Monotrait ratio (HTMT)
GHRM practices
GIC
SP
GHRM practices GIC
0.727
SP
0.729
GHRM practices
0.751
GIC
0.661
0.745
SP
0.673
0.739
Table 3 Fornell-Larcker criterion
GHRM practices
0.794
GIC
SP
0.850
discriminant validity, namely Heterotrait-Monotrait Ratio and Fornell-Larcker criterion. The inter-construct correlation value lower than 0.85 establishes discriminant validity. It means that the inter-construct correlation values should be less than the diagonal value. According to the results, there was no discriminant validity issue in the model variables (Tables 2 and 3).
7.6 Structural Model and Direct Effects To attain the appointed research objective, the structural model was performed after validating the measurement model. Initially, the direct relationships (H1 , H2 , and H3 ) were tested. The results are displayed in Table 4. Thus, all hypotheses were supported (Fig. 3).
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Table 4 Direct effects Original sample
T statistics
P values
H1
GHRM practices -> SP
0.328
5.066
0.000
H2
GIC -> GHRM practices
0.661
17.022
0.000
H3
GIC -> SP
0.523
8.550
0.000
Fig. 3 Structural model
7.7 Structural Model and Indirect Effects The analysis of mediation path included the evaluation of mediating outcome of GHRM practices on the relationship between GIC and SP (H4 ). This study tested the indirect path using GHRM practices as a mediator variable between exogenous GIC and endogenous SP variables. The path coefficient value was 0.216, T value of 4.570 with a (P) 0.000 significance level. Hence, the mediation was confirmed. To assess the mediation type, the Variance Accounted For (VAF) was calculated and showed more than 20% (VAF = indirect effects/total effects = 0.216/0.739 = 29.22), which can be categorised as partial mediation.
8 Research Findings and Discussion The results of this study confirmed that GIC was positively related to SP. The GIC also showed a positive relationship with GHRM practices. Lastly, GHRM practices positively influenced SP. The results were supported by previous findings [30, 31]. Also, GHRM practices mediated the relationship between GIC and SP. Investing in GIC will not only make firms meet environmental principles, but it can also help them to gain consumers’ popular environmental consciousness and trade competitive advantage, which is vital for corporates in developing economies. Moreover, GIC is closely connected to GHRM practices. Hence, to expand insights towards the
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environmental viewpoint, this study found it important to investigate the contribution of GHRM practices specifically to implement GIC by observing SP. While fostering the economy, the manufacturers’ existence is highly subjected to their sustainability, which would be achieved through strong GIC. Although some studies have verified the positive effect of intellectual capital on a firm’s performance [12, 31], some have revealed a negative relationship. For example, a study found that human capital is negatively related to the firm’s performance within the South African context [32]. On the other hand, some other studies found no relationship between specific components of IC and performance [33]. The findings revealed that intellectual capital influence the firm’s performance indirectly via GHRM practices. It is concluded that the current study empirically established the mediating role of GHRM practices on the relationship between GIC and SP among ISO14001 certified Malaysian manufacturers.
9 Research Implications The 12th Malaysia Plan (2021–2025) is focused on fostering sustainability agenda and improving sustainable performance. It is important for firms to encourage employees to decrease the level of environmental problems [34]. This study results confirmed that GHRM practices explain the relationships between GIC and green behaviours in manufacturing organisations. The findings of the study made a noteworthy contribution to knowledge in the literature about GHRM practices, GIC, and SP. This study examined the mediating of GHRM practices on the relationship between GIC and SP among manufacturing firms with ISO14001 certification in Malaysia. The results of this study presented the guidelines for manufacturing firms to include green policies for environmental protection. The current study’s findings suggested that, to meet the targets of the 12th Malaysia Plan in 2025, it is required for firms in the manufacturing industry to apply GHRM practices effectively by adopting GIC to promote green growth and expand SP. This effort would lead to reduce the imbalance among economic, social, and environmental performances.
10 Limitations and Recommendations for Future Research This study had some limitations as well. Firstly, it represented only the HR managers’ viewpoint and was not generalised to all employees. The second limitation was that only Malaysian manufacturing firms with ISO14001 certification were targeted in this study. Thus, the results cannot be generalised to firms with no ISO14001 certification. The third limitation was the small sample size (n = 212). Although it was enough for the SEM analysis, the findings cannot be generalised to other scopes. Lastly, to measure the GHRM practices, only three GHRM practices were applied in this study. Therefore, it is suggested for future studies to investigate the model in the current
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study using a larger sample size and mix-method approach to explore the relevant themes of GHRM practices and SP. Future studies also need to investigate the current model in other industries and countries. For example, they can conduct comparative research between ISO14001 certified and non-certified manufacturing firms.
11 Conclusion In recent years, the manufacturing industry has become unavoidable, especially during and after the COVID-19 pandemic. Businesses are operating in a highly competitive environment and need to ensure sustainability. The manufacturing industry remains the main contributor to economic growth in Malaysia [2]. However, the activities and processes of manufacturing also generate negative environmental impacts. This study investigated the relationship between GIC and SP among manufacturers. Moreover, it tested the mediating role of GHRM practices on this relationship. The findings showed that GIC positively influenced SP, and GHRM practices partially mediated this relationship. This study also discussed the vital implications for manufacturers to adopt GHRM practices to boost GIC and improve SP. This study makes significant contribution to the body of knowledge and literature in the field of green HRM and green intellectual capital and also present implications and research agenda for future research.
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Study on the Socio-Demographics of Online Food Delivery: Foodpanda Customers and Its Association with the Frequency and Spending Patterns Norfazlirda Hairani , Mardhiah Kamaruddin , Nik Noorhazila Nik Mud , Sarina Ismail , and Md Zaki Muhamad Hasan
Abstract Food retailing in Malaysia is rapidly developing, and the scenario mainly affects the online food delivery market. This study aims to identify the sociodemographic characteristics of the customers who prefer Foodpanda services and their associations with frequency and spending patterns. It was conducted based on the descriptive analysis performed on 306 participants in Kota Kinabalu, Sabah. This study empirically indicates that the association between age, occupation, and frequency of using the Foodpanda service is P < 0.05. The findings benefited the retail players in understanding their target market. Hence, it provides recommendations for future studies in the retail industry. Keywords Foodpanda · Socio-demographics · Frequency · Spending patterns
1 Introduction Malaysia’s food retail sector was estimated at $18 billion in 2020 and is projected to grow 30% to $23 billion by 2025 [1]. The shift in the pattern of consumer lifestyles affects the landscape of food retailing in Malaysia. The scenarios like changes in lifestyle, disposable income, acceptance of online channels, convenience, and responsiveness led to the evolution of the food retail industry in Malaysia [2]. Hence, the scene opens up a door for online businesses, especially online food delivery, through the applications due to the convenience offered to the customers [3]. In Malaysia, many online food delivery companies exist, such as Foodpanda, DeliverEat, Uber N. Hairani (B) · M. Kamaruddin · N. N. Nik Mud · M. Z. Muhamad Hasan Fakulti Keusahawanan dan Perniagaan, Universiti Malaysia Kelantan, Kota Bharu, Malaysia e-mail: [email protected] S. Ismail Fakulti Perniagaan, Ekonomi, dan Pembangunan Sosial, Universiti Malaysia Terengganu, Kuala Terengganu, Malaysia © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_49
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Eats, Honestbee, Running Man Delivery, FoodTime, Dahmakan, Mammam, and Shogun2U. As cited in Allah Pitchay et al. [4], by 2026, the market for online food delivery will grow to more than USD 319.1 million due to the rising income per capita and customers’ preferences towards the services. Besides the variety of menus available to the customers, the convenience of the service makes it popular among the customers. The increase in smartphone penetration significantly impacts online food delivery in Malaysia, as online food delivery is based on the smartphone, and the customers only need to order the menus through it [5]. It eliminates unnecessary processes, significantly saving consumers’ time and energy [6]. Moreover, its convenience motivates consumers to switch from traditional food purchases to online food delivery. In 2012, Foodpanda was founded by Lukas Nagel and Rico Wyder in South East Asia and launched across Singapore, Malaysia, Indonesia, and Thailand. It has expanded globally with the efforts of Ralf Wenzel, Felix Ploq, and Benjamin Bauer. Foodpanda is a mobile delivery marketplace owned by a Berlin-based company named Hero SE. Foodpanda, or HelloFood, is one of the leading food delivery platforms and penetrates markets globally. Consumers prefer it because of its userfriendliness, high quality, and highly effective interface [7]. In fact, Foodpanda has cooperated with more than 45,000 food operators worldwide, and its business model is based on online-to-online (O2O) [8]. As the first food delivery company in Malaysia, which started in 2018, as per the citation in Deshpande et al. [9], approximately 75% of Malaysians prefer to use the Foodpanda application for food delivery. Numerous varieties of menus are provided by Foodpanda to their customers, as the company collaborates with more than 115,000 restaurants worldwide. Customers only need to order their preferred foods from local restaurants via the website or mobile application. Foodpanda’s mission is to connect food sellers with their customers while also providing delicious food and the convenience that the Foodpanda app provides. Foodpanda offers a variety of food categories and restaurant menus, and when a customer places an order, the system will process and send the order directly to the partner restaurant. Then, the delivery drivers will deliver the food, and the customers will receive a reminder to pick up the food and make the payment using cash or online banking [7]. In spite of changing consumer behaviour towards online food delivery services in Malaysia, studies that address online food delivery among urbanites still remain scarce in the existing literature [3]. In addition, research studies pertaining to Foodpanda are also limited in the Malaysian context, especially in East Malaysia. Hence, the objectives of this study are to identify the socio-demographic profile of Foodpanda customers in Kota Kinabalu and its association with the frequency of using Foodpanda services and customers’ spending patterns. By highlighting the sociodemographic profile and its associations, it can provide a clearer understanding for online food delivery service providers, especially Foodpanda, to comprehend their target market.
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1.1 Foodpanda: Online Food Delivery Foodpanda is the global leader in the online food delivery marketplace, with over a million customers. An empirical study showed that the critical success factors of Foodpanda are customer satisfaction and employee satisfaction [8]. User-friendly mobile applications and websites drive the success of Foodpanda, as the customer can browse numerous numbers of listed restaurants and order food without any difficulties. Besides, customers can track their orders either through the website or application. This is in line with Foodpanda’s objectives, which are to be the most convenient food delivery service. It is proven by the study which found that the consumers of Foodpanda are happy and satisfied with their services [9]. In order to be competitive, Foodpanda has invested a lot to ensure whether its platform is efficient and, most importantly, meets the customers’ needs and wants. In 2013, nearly $20 million was raised in initial funding from Rocket Internet and investment firm AB Kinnevik. In the same year, iMENA Holdings invested approximately $8 million, and another $20 million in the following year [10]. To sustain itself in the market, Foodpanda needs to adapt quickly to the changes in consumer behaviour [11]. The mushrooming of online food delivery services such as Uber Eats, GrabFood, and Eat Fresh has led to intense competition in the current market. Consequently, Foodpanda has expanded its platform to include grocery delivery and the ability for customers to place orders for self-pickup.
1.2 Frequency of Using Foodpanda: Online Food Delivery Online ordering of food saves both time and money [12]. In addition, an empirical study found that saving time is the most significant factor in ordering food online [13]. The conveniences offered in terms of saving time and cost, comprehensive product searchability, price comparison, real-time monitoring, payment flexibility, loyalty benefits, and quick delivery drive the consumer to buy food online [14]. Hence, behavioural intention, which is referred to as a kind of purchase intention, can be used to predict customer purchase behaviour. It will be a factor in whether the consumer makes another online purchase. Foodpanda provides a platform that encourages repeat purchases by saving consumers time while they browse menus [15]. A user-friendly system encourages consumers to order food through online food delivery on a regular basis. Hence, the convenience of using the app is positively related to consumers’ attitudes and their intention to use the system [16].
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1.3 Spending Pattern of Foodpanda Customer The spending pattern is related to spending behaviour via online purchases based on past experiences, even in purchasing food [17, 18]. Positive past experiences will lead to repeating the purchases automatically, and indirectly, it is involved with the habits of spending online [19]. In a study by Indriyarti et al. [18], the use of technology in buying must be based on consumer acceptance as per the Unified Theory of Acceptance and Usage of Technology. This can be seen when consumers buy food through online food delivery. Besides, performance expectancy and effort expectancy can also shape consumer spending patterns [20]. However, it is also influenced by social factors like online reviews and ratings [21].
2 Methodology 2.1 Socio-Demographic of Foodpanda Customer Table 1 shows the demographics of respondents in Kota Kinabalu among Foodpanda users. Most of the respondents were 18–25 years old (81.7%), followed by respondents aged 26–30 years old (14.4%). The Malay ethnic group dominates at 53.8%, followed by Chinese (26.1%) and Indian (17.2%). Based on occupation, students showed the highest frequency among the Foodpanda users in Kota Kinabalu, Sabah, with 306 respondents.
2.2 Spending Patterns of Foodpanda Customers Figures 1 and 2 show the respondents’ spending patterns based on their frequency of using Foodpanda and the amount of money they spent on Foodpanda. Most respondents used the service fewer than three times per week (75.9%). Two hundred twentysix respondents spend less than RM50 per week, and 154 respondents spend between RM50 and RM100 per week (Fig. 3).
2.3 Association Between Socio-Demographics and Frequency of Using Foodpanda Table 2 shows an association between age, occupation, and frequency of using the Foodpanda service (P < 0.05). The finding showed that 250 respondents, aged 18– 25, used Foodpanda less than three times per week. Twenty-four respondents, aged 26–30, used the Foodpanda service 3–6 times per week. Based on the occupation,
Study on the Socio-Demographics of Online Food Delivery: Foodpanda … Table 1 Respondents’ demographic profile
Variable
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n (%)
Age 18–25 years old 26–30 years old 31–40 years old >40 years old
313 (81.7) 55 (14.4) 11 (2.9) 4 (1.0)
Gender Female Male
207 (54.0) 176 (46.0)
Race Bajau Bajau Suluk Bisaya Bugis Chinese Cinokadazan Indian Kadazan Malay
1 (0.3) 2 (0.5) 1 (0.3) 1 (0.3) 100 (26.1) 1 (0.3) 66 (17.2) 2 (0.5) 206 (53.8)
Marital status Divorced Married Single
2 (0.5) 35 (9.1) 346 (90.3)
Educational level No Primary school Secondary school Diploma College University
12 (3.1) 2 (0.5) 30 (7.8) 43 (11.2) 15 (3.9) 281 (73.4)
Occupation Employed Homemaker Retired Self-employed Student Unemployed
54 (14.1) 7 (1.8) 2 (0.5) 7 (1.8) 306 (79.9) 7 (1.8)
only one respondent who was employed used the service more than six times per week. There was no association between gender and frequency of using Foodpanda (P > 0.05).
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Fig. 1 Malaysia online food delivery market, 2015–2025. Sources Adroit market research (2019)
Fig. 2 The frequency of using the Foodpanda service among the respondents
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Fig. 3 The amount of money spent on Foodpanda services among the respondents Table 2 The association between the socio-demographics and the frequency of using Foodpanda among respondents in Kota Kinabalu, Sabah (n = 383) Variable
6 times/week n Total n (%) P-value (%) n (%) (%)
Age 18–25 years old 26–30 years old 31–40 years old >40 years old
250 (55.9) 31 (10.7) 6 (2.1) 4 (1.4)
61 (67.8) 24 (26.7) 5 (5.6) 0 (0.0)
2 (100.0) 0 (0.0) 0 (0.0) 0 (0.0)
313 (81.7) 55 (14.4) 11 (2.9) 4 (1.0)
0.002
157 (54.4) 134 (46.0)
48 (53.3) 42 (46.7)
2(100.0) 0 (0.0)
207 (54.0) 176 (46.0)
0.668
28 (9.6) 5 (1.7) 2 (0.7) 3 (1.0) 248 (85.2) 5 (1.7)
25 (27.8) 2 (2.2) 0 (0.0) 4 (4.4) 57 (63.3) 2 (2.2)
1 (50.0) 0 (0.0) 0 (0.0) 0 (0.0) 1 (50.0) 0 (0.0)
54 (14.1) 7 (1.8) 2 (0.5) 7 (1.8) 306 (79.9) 7 (1.8)
0.001
Gender Female Male Occupation Employed Homemaker Retired Self-employed Student Unemployed a
Fisher’s Exact Test
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Table 3 The association between the socio-demographics and the amount of money spent on Foodpanda among respondents in Kota Kinabalu, Sabah (n = 383) Variable
RM100 n (%) Total n (%)
P-value
194 (85.8) 27 (11.9) 3 (1.3) 2 (0.9)
118 (76.7) 26 (16.9) 8 (5.2) 2 (1.3)
1 (33.3) 2 (66.7) 0 (0.0) 0 (0.0)
313 (81.7) 55 (14.4) 11 (2.9) 4 (1.0)
0.023
117 (51.8) 109 (48.2)
88 (57.1) 66 (42.9)
2 (66.7) 1 (33.3)
207 (54.0) 176 (46.0)
0.530
30 (8.8) 7 (3.1) 1 (0.4) 4 (1.8) 190 (84.1) 4 (1.8)
31 (20.1) 0 (0.0) 1 (0.6) 3 (1.9) 116 (75.3) 3 (1.9)
3 (100.0) 0 (0.0) 0 (0.0) 0 (0.0) 0 (0.0) 0 (0.0)
54 (14.1) 7 (1.8) 2 (0.5) 7 (1.8) 306 (79.9) 7 (1.8)
40 years old Gender Female Male Occupation Employed Homemaker Retired Self-employed Student Unemployed a
Fisher’s Exact Test
2.4 The Association Between the Socio-Demographics and the Amount of Money Spent on Foodpanda Table 3 shows no association between the gender of respondents and the amount of money spent on Foodpanda (P > 0.05). The amount spent on Foodpanda was found to be significantly related to age (P < 0.05). Of those who spent more than RM100 per week, 33.3% of respondents were aged 18–25, and 66.7% were aged 26–30. Most students (84.1%) spend less than RM50 per week.
3 Main Findings According to the findings of this study, age was significantly associated with the amount of money spent on Foodpanda (P < 0.05). From the result, 27.8% of the employed respondents frequently use Foodpanda’s services. It corresponds to the previous study, in which consumers’ positive attitude towards online food delivery was motivated by the desire to reduce traffic and time-consuming activities at the restaurant and save time by using the apps [4, 17]. Currently, Malaysia is in the digitalisation phase, so online food delivery will increase from time to time. Therefore, this study is one of the initial contributions to exploring the Malaysian online food delivery application segment. Hence, the body of knowledge generated in this study provides a new platform for future researchers
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to examine the factors that affect attitude and online food delivery applications such as Foodpanda. There are several practical contributions to this study. It contributes to the knowledge and skill set of online food delivery service providers and restaurant operators. The results will assist those parties in getting a deeper understanding of the target market in the East region, in particular. Furthermore, understanding that food delivery applications are widely popular nowadays can be beneficial in the start-up business of online food delivery, providing a new idea for those in this industry to gradually survive.
4 Limitations This study is limited to customers in Kota Kinabalu, Sabah, and does not delve into the other aspects that influence consumers’ preferences and acceptance of online food delivery services, specifically Foodpanda. Thus, future studies could investigate various components and extend research to other geographical regions in East Malaysia.
5 Recommendations for Further Study The outcome will be significant for online food service providers in terms of expanding their customer base. It will also provide competitive guidelines to local and international operators, particularly those interested in extending their online food delivery in East Malaysia.
References 1. Ngumbang, R., Retail Foods. 2022, United States Department of Agriculture: Kuala Lumpur. 2. Lagorio, A. and R. Pinto, Food and grocery retail logistics issues: A systematic literature review. Research in Transportation Economics, 2020. 3. Chai, L.T. and D.N.C. Yat, Online food delivery services: Making food delivery the new normal. Journal of Marketing advances and Practices, 2019. 1(1): p. 62–77. 4. Allah Pitchay, A., et al., Determinants of customers’ intention to use online food delivery application through smartphone in Malaysia. British Food Journal, 2022. 124(3): p. 732–753. 5. Pigatto, G., et al., Have you chosen your request? Analysis of online food delivery companies in Brazil. British Food Journal, 2017. 6. Dazmin, D. and M. Ho, The relationship between consumers’ price-saving orientation and time-saving orientation towards food delivery intermediaries (FDI) services: an exploratory study. Gsj, 2019. 7(2). 7. Sparta, J., S. Alsumait, and A. Joshi, Marketing habituation and process study of online food industry (A study case: Zomato). Journal of the Community Development In Asia (JCDA), 2019. 2(1): p. 40–46.
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8. Kamilah, N., et al., Factors affecting organizational success: A case study of Foodpanda. Journal of the Community Development in Asia (JCDA), 2020. 3(3): p. 58–69. 9. Deshpande, A., et al., Influence of strategic branding in soft drink market in Indian and Malaysian context: Study on Coca Cola to remain Top of the Mind Brand (TOMB). Asia Pacific Journal of Management and Education (APJME), 2020. 3(1): p. 82–93. 10. Suleiman, A.S., et al., The Performance of Foodpanda During The Pandemic: A Study of Consumers’ Perspective. Journal of the Community Development in Asia (JCDA), 2021. 4(3): p. 36–48. 11. Bloemer, J. and K. De Ruyter, On the relationship between store image, store satisfaction and store loyalty. European Journal of marketing, 1998. 32(5/6): p. 499–513. 12. Akroush, M.N. and M.M. Al-Debei, An integrated model of factors affecting consumer attitudes towards online shopping. Business Process Management Journal, 2015. 13. Khalil, N., Factors affecting the consumer’s attitudes on online shopping in Saudi Arabia. International journal of scientific and research publications, 2014. 4(11): p. 1–8. 14. Gupta, M., A Study on Impact of Online Food delivery app on Restaurant Business special reference to zomato and swiggy. International Journal of Research and Analytical Reviews, 2019. 6(1): p. 889–893. 15. Dachyar, M. and L. Banjarnahor, Factors influencing purchase intention towards consumerto-consumer e-commerce. Intangible Capital, 2017. 13(5): p. 946–966. 16. Yeo, S.F., et al., The role of food apps servitization on repurchase intention: A study of Foodpanda. International Journal of Production Economics, 2021. 234: p. 108063. 17. Yeo, V.C.S., S.-K. Goh, and S. Rezaei, Consumer experiences, attitude and behavioral intention toward online food delivery (OFD) services. Journal of Retailing and Consumer services, 2017. 35: p. 150–162. 18. Indriyarti, E.R., et al., Online Food Delivery App Distribution and Determinants of Jakarta’s Gen Z Spending Habits. Journal of Distribution Science, 2022. 20(7): p. 73–86. 19. Venkatesh, V., J.Y. Thong, and X. Xu, Consumer acceptance and use of information technology: extending the unified theory of acceptance and use of technology. MIS quarterly, 2012: p. 157– 178. 20. Tan, G.W.-H. and K.-B. Ooi, Gender and age: Do they really moderate mobile tourism shopping behavior? Telematics and Informatics, 2018. 35(6): p. 1617–1642. 21. Alalwan, A.A., Mobile food ordering apps: An empirical study of the factors affecting customer e-satisfaction and continued intention to reuse. International Journal of Information Management, 2020. 50: p. 28–44.
Development of a Causality Least Association Rules Algorithm Tool Using Rational Unified Process Methodology Zailani Abdullah, Fatihah Mohd, Amir Ngah, Ang Bee Choo, Nabilah Huda Zailani, and Wan Aezwani Wan Abu Bakar
Abstract Among the most crucial research areas in data mining is association rule mining (ARM). Rules are classified into two types: frequent rules and least frequent rules. Extracting the least association rules is more difficult and always leads to the “rare item problem” quandary. The rules with the fewest items are known as the “least association rules.” However, most data mining tools favour frequent association rules over the least frequent association rules. Furthermore, the process of extracting the least association rules is more difficult. Therefore, this paper proposes and develops Causality Least Association Rules Algorithm Tool (CLART) using the Rational Unified Process (RUP) methodology and the C# programming language. The results showed that CLART is workable, and the proposed algorithm also outperformed the existing benchmark algorithm. In addition, CLART is a dedicated tool that is freely available and can be used to extract the causality least association rules from the benchmarked datasets. Z. Abdullah (B) · F. Mohd Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, 16100 Kota Bharu, Kelantan, Malaysia e-mail: [email protected] F. Mohd e-mail: [email protected] A. Ngah · A. B. Choo Faculty of Ocean Engineering Technology and Informatics, Universiti Malaysia Terengganu, 21030 Kuala Nerus, Terengganu, Malaysia e-mail: [email protected] A. B. Choo e-mail: [email protected] N. H. Zailani Faculty of Social Sciences and Humanities, Universiti Kebangsaan Malaysia, 43600 Bangi, Selangor, Malaysia e-mail: [email protected] W. A. Wan Abu Bakar Faculty of Informatics and Computing, Universiti Sultan Zainal Abidin, 21030 Kuala Nerus, Terengganu, Malaysia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_50
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Keywords Least · Algorithm · Association rules · Rational unified process
1 Introduction Rational Unified Process (RUP) [1] is a kind of agile software development methodology. It was invented by the Rational Software Corporation, one of IBM’s divisions, in 2003 for an iterative software development process framework [2]. RUP is also referred to as a software engineering process that relies on a web-enabled, searchable knowledge base [3, 4]. Association Rule Mining (ARM) is among the most widely used algorithms in data mining. Today, ARM is still active and has attracted a lot of attention from researchers in the field of data mining [4–13]. ARM is typically used to reveal all association rules [14] with support and confidence values greater than predefined minimum support and confidence [15]. However, most of the algorithms indirectly ignore the occurrence of the least association rules. In other words, by using the typical minimum support in the algorithm, it will accidentally exclude the least association rules. The least association rule refers to an association rule forming between the least frequent items or among the least items. The presence of these items in relation to least association rules in some disciplines is extremely significant and necessitates close attention. For example, to identify relatively rare diseases, predict telecommunication equipment failure, find abnormal reactions in nuclear plants, and find associations between the least purchased items [16]. The Bayesian Network (BN) [17] is a graphical model that encapsulates probabilistic correlations between the relevant variables. BN comprises statistical techniques that blend together domain knowledge and data. Causal semantics in BN makes the encoding of causal prior knowledge extremely simple. Additionally, BN also uses probabilities to express the strength of causal linkages [18]. However, most of the existing data mining tools, such as WEKA [19], RapidMiner [20], H20 [21], etc., are focusing more on extracting the frequent association rules. In reality, the extraction of the fewest association rules is not simple and is frequently plagued by the problem of a computer’s memory overflow. This paper proposes an improved algorithm called Causality Least Association Rules, which is based on Apriori [22] and .Net Framework 3.5 [23]. Various ranges of predefined minimum support thresholds are employed to discover these rules. RUP methodology was employed rather than the typical Waterfall Methodology for developing the Causality Least Association Rules Algorithm Tool (CLART). The organisation of the paper is as follows. Section 2 explains work done by others. Section 3 highlights the basic concepts and terminology. Section 4 focuses on the methodology for developing the algorithm and its tool. Section 5 elaborates on the result and discussion, particularly the performance of the developed tool. Finally, the paper is concluded with a short summary in Sect. 6.
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2 Related Works As noted in the introduction, the Apriori algorithm is a fundamental and popular algorithm for ARM. This algorithm was proposed by Agrawal et al. [22]. It mines frequent item sets using prior knowledge of frequent item properties. In terms of execution, it uses a level-wise search, an iterative method that uses k-itemsets to examine (k + 1) items. Koh and Rountree [24] suggested a method to find the least rules with candidate itemsets that are between minimum and maximum support values. They developed an algorithm known as Apriori-Inverse to quickly discover sporadic rules with a number of variations, such as the rare connection of two frequent symptoms pointing to a rare disease. Koh et al. [25] proposed the RSAA algorithm to construct rules in which significant rare itemsets take part without any “magic numbers” given by the user. In this method, relative support (RSup) is used in place of minimal support. The support threshold is lowered by this method for items with a very low frequency and raised for things with a high frequency. WEKA (the Waikato Environment for Knowledge Analysis) is one of the most prominent open-source machine learning and data mining algorithms. It used Java programming by the University of Waikato, New Zealand. Another free and opensource tool for data and text mining is called RapidMiner. It is one of the most popular data science tools. H2 O is a piece of open-source software developed by the H2 O.ai Company. It provides heterogeneous, conventional analytics mechanisms.
3 Basic Concepts and Terminology 3.1 Association Rules The association rule is a statement of the form {X1, X2, …, Xn} => Y, meaning that if X1, X2, …, Xn are all found in the market basket, then there is a good chance of finding Y. The likelihood of discovering Y is called the confidence of the rules. Typically, only rules with confidence levels greater than a specific threshold are maintained. The association rule is a statement of the form {X1, X2, …, Xn} => Y, indicating that if X1, X2, …, Xn are all discovered in the market basket, there is a strong likelihood of finding Y.
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3.2 Apriori Algorithm Apriori [22] employed the large itemset property, whereby any subset of a large itemset must also be large. The large itemsets are also referred to as “downward closed,” because if an itemset satisfies the minimum support requirements, all of its subsets are also applied. The fundamental principle of the Apriori algorithm is the construction of candidate itemsets based on a specific size (n), followed by a database search to count them and evaluate whether they are large or not.
3.3 Bayesian Network The Bayesian Network (BN) [26] is a model that makes use of conditional probabilities among several variables. It is generally impossible to generate all conditional probabilities from a given dataset. Informally, the vertex set and directed edge set of BN serve as representations of an enhanced directed acyclic graph. An example of the five attributes of BN is shown in Fig. 1.
3.4 Least Association Rules In some cases, it may be very interesting to look for the fewest itemsets, that is, itemsets that do not appear frequently in the data. To extract the least association rules, they should at least comply with two requirements; first, it should be the minimal and simplest association rule set, and second, its predictive power should not be weaker than the complete association rules.
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4 Methodology The Relational Unified Process (RUP) [1] approach has been adopted for creating CLART. RUP is a well-defined system process, often used to develop software based on object-based and/or component-based technologies. RUP is among the modern process models derived from the Unified Modeling Language (UML) and Associated Software Development Process [27]. RUP divides software development into four stages: inception, elaboration, building, and transition. Each stage includes a single or more executable iterations of the software at that level of development.
4.1 Inception Phase The business case is established at the end of this phase. To demonstrate the primary functionalities provided by the causality least association rules, a basic use case diagram is created. Figure 2 depicts a use case diagram with one (1) actor named “User” and five (5) main use-cases: “load datasets”, “generate association rules using the Apriori algorithm”, “generate least association rules using RSAA”, and “analyse performance”. First, open the datasets, which are in text file format, as an input to generate association rules. Three algorithms are developed: Apriori, CLART, and RSAA.
4.2 Elaboration Phase The elaboration phase is where the developers examine the project more thoroughly. It involves an analysis of how the development of CLART workflow is performed. The basic data characteristics and restrictions that may occur during the development of an algorithm will be taken into consideration. All related diagrams, such as relational entity classes, diagrams, activity diagrams, basic GUIs, and Gantt charts, are produced to provide a clear perspective on the project. Figure 3 shows the activity diagram for generating association rules using a standard algorithm use case. An association rule is generated when it fulfils the minimum support and minimum confidence values. Users are required to determine what the minimum support and minimum confidence values are. The user needs to select the dataset for generating the association rules. All single items in the dataset are counted and then compared to the minimum support value threshold. The items that satisfy this threshold will be used in generating the association rules. Then, these association rules will be filtered by a minimum confidence threshold value. Figure 4 shows the activity diagram for generating the least association rules using the least Apriori algorithm Least items are generated once they satisfy the interval support, which includes minimum and maximum support. Items that fall within the
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uc Actors
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Generate least association rules using RSAA
Analyze performance
Fig. 2 Use case diagram
interval support range are considered the least. Least frequent items and frequent items are then joined together to form the desired association rules. Any association rule that fails to fulfil the minimum support and Bayesian network values will be pruned out. Figure 5 shows the activity diagram for generating the least association rules using RSAA. RSAA uses two supports: the first is to find the frequent item and the second is to find the least frequent item. An item’s support is compared to its first and second supports. The joining step is used to generate the least association rules, which are then compared to minimum and relative support.
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act Generate ARs using apriori
Specify user threshold minsup and min confience
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No Fulfill minsup value ?
Yes Generate association rules
No Fulfill min confidence ?
Yes Display association rules
Fig. 3 Activity diagram to generate association rules using standard algorithm
4.3 Construction Phase All codes are created in Microsoft C# at this point. A thorough model illustrating the fundamental workflow is produced. The model makes it very obvious how the Microsoft C# programming language is used to link and interact with the data and
588 Fig. 4 Activity diagram to generate least association rules using Least Apriori
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procedures in the causality least association rules algorithm. Figure 6 depicts the overall model of causality development using the least association rules together with the least Apriori algorithm.
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act Generate least ARs using RSAA
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No Fulfill minsup & rsup ?
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There are three (3) phases involved in the development of causality least association rules. Basically, it covers the generation of association rules based on three algorithms: the standard algorithm (Apriori), the Least Apriori algorithm, and the RSAA. The association rules are generated by comparing the first support, second support, and relative support. After the phases are completed, the performance (processing time) of three (3) algorithms is compared.
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Generate association rules Compare with BN value
Compare with relative support
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Fig. 6 An overview model of CLART
Phase 1 is to generate association rules using the standard Apriori algorithm. The association rule is generated by comparing the minimum support and minimum confidence, which are predefined by the user. Phase 2 is the development of causality least association rules using the least Apriori algorithm. Less frequently occurring but highly associated itemsets are generated. However, phase 3 is to generate the least association rules using RSAA. The association rules are generated by comparing the first support, second support, and relative support. After the phases are completed, the performance of two (3) algorithms is compared. An overview of the model is presented in Fig. 6.
4.4 Transition Phase In the final phase, the tool is developed. To make sure there are no defects or mistakes, the testing process will be run many times. Coding fixes will be made until all problems and errors have been fixed, if any are found during testing. Not only will the function be tested, but the user interfaces will also be considered and may be commented on and changed to meet the needs.
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5 Results and Discussion The experiments were run on a PC with the specifications of a Core i7-8565U processor, 12 GB of RAM, a 512 GB SSD, and the Windows 10 operating system. The characteristics of the Mushroom datasets used in experiments are shown in Table 1. Figure 7 shows association rules generated using the standard algorithm (Apriori). The processing time and number of rules generated are also shown. Figure 8 depicts the RSAA algorithm’s least association rules. The processing time and number of rules generated are also shown. The causality least association rules generated by the Least Apriori algorithm are shown in Fig. 9. The processing time and the number of rules generated are also shown. Figure 10 shows the overall result of the performance analysis according to the three (3) algorithms. The processing time and number of generated rules are also displayed. The processing time for both the Least Apriori algorithm and RSAA to generate association rules is significantly faster than that of the classical or standard algorithm (Apriori). Both the Least Apriori algorithm and the RSAA have the same Table 1 Characteristics of the mushroom datasets Size
No. of transaction
No. of items
Avg item per transaction
Min item in transaction
Max item in transaction
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Fig. 7 Association rules generated by Apriori algorithm
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Fig. 8 Least association rules generated by RSAA
Fig. 9 Causality least association rules generated by the Least Apriori algorithm
number of rules as the standard algorithm (Apriori). Although both algorithms share the same number of generated rules, the Least Apriori algorithm is faster at 3.23% than RSAA.
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Fig. 10 Overall performance result analysis
6 Conclusion This study proposed and developed the Causality Least Association Rules Algorithm Tool (CLART) using the Rational Unified Process (RUP) methodology. A comparative analysis has been carried out on these three algorithms’ performance. The results show that CLART can be used to extract the desired least association rules, and it also outperformed the existing benchmark algorithms, i.e., the standard algorithm (Apriori) and the RSAA. CLART is an open-source tool to extract the causality least association rules from benchmark datasets such as the UCI Machine Learning Repository, Kaggle, Google Dataset Search, etc.
References 1. Shuja, A.K, & Krebs, J.: IBM Rational Unified Process References and Certification Guide. Solution Designer, Pearson plc (2007). https://www.oreilly.com/library/view/ibm-rational-uni fied/9780131562929/. 2. Taft, D.K.: IBM Acquires Rational (2002). https://www.eweek.com/pc-hardware/ibm-acq uires-rational/. 3. Anwar, A.: A Review of RUP (Rational Unified Process). International Journal of Software Engineering 5(2), 8–24 (2014). https://www.cscjournals.org/manuscript/Journals/IJSE/ Volume5/Issue2/IJSE-142.pdf. 4. Kruchten, P.: The Rational Unified Process: An Introduction, Addison-Wesley Longman Publishing Co., Inc. (2003). https://books.google.com.my/books/about/The_Rational_Uni fied_Process.html?id=RYCMx6o47pMC&redir_esc=y.
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Exploring the Contents of Macro-Influencers’ Instagram Nabilah Huda Zailani, Shafizan Mohamed, Mohd Azul Mohamad Salleh, and Zailani Abdullah
Abstract Parasocial relationships are a very important topic because they offer significant benefits to followers who participate in them and are part of extending social networking strategies. Despite the increasing number of social media influencers on Instagram, little empirical research has been systematically examined on how macro-influencers use Instagram to establish parasocial relationships among followers. Therefore, this study employed a content analysis method to analyse 60 posts for each of the six macro-influencers’ Instagram accounts according to a systematic coding scheme. The results indicate that social media provides great opportunities for macro-influencers to market themselves in line with the increase in followers on their Instagram accounts. Keywords Parasocial relationship · Macro-influencer · Instagram
N. H. Zailani · M. A. Mohamad Salleh Faculty of Social Sciences and Humanities, Universiti Kebangsaan Malaysia, 43600 Bangi, Selangor, Malaysia e-mail: [email protected] M. A. Mohamad Salleh e-mail: [email protected] S. Mohamed Kuliyyah of Islamic Revealed Knowledge and Human Sciences, International Islamic University Malaysia, 53100 Kuala Lumpur, Gombak, Malaysia e-mail: [email protected] Z. Abdullah (B) Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, 16100 Kota Bharu, Kelantan, Malaysia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_51
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1 Introduction Macro-influencers are defined as having multiple followers of at least 100,000 [1]. An unofficial yet commonly used grouping assigns macro-influencers between 100,000 and 1,000,000 and says they have a larger audience in their accounts than microinfluencers [2]. Because of their popularity, they still need less time for collection and monitoring and have a lower chance of having bogus followers. They are average citizens who are renowned for their understanding of any specialised niche sector. This research study focuses on macro-influencers because they have a bigger audience than micro-influencers. A parasocial relationship is one of the communication mediums on social media platforms such as Instagram. The parasocial relationship is a one-sided interaction in which psychological energies, desires, and attention are extended to one person while the other, the individual, is totally unaware of the other side. The parasocial relationship originally originated [3] as a response from a social networking site consumer to a public media figure, so the consumer viewed the figure of the public media as an intimate relationship partner [4]. The current study investigated the concept of parasocial relationships in order to discover the relationship between mass media personalities (such as public figures) and viewers in order to comprehend the phenomenon of influencing. In the media and communication literature, the theory of parasocial interaction has been wellknown since the concept first appeared in Horton and Richard Wohl [3]. Social networking influencers display similar features to media figures, and their relationships with their followers may often contribute to pseudo-friendships [4]. Because of the partnership’s extreme existence with powerful supporters, the connection between these two is also far from mutual. However, scholars have suggested that parasocial literature also offers valuable insights into the interaction between power and followers. For example, unanswered fundamental questions involve which factor is linked to the parasocial relationship among macro-influencers and their followers. What makes followers continue to use parasocial relationships and maintain their status as followers on an influencer’s account? Therefore, this paper focuses on macro-influencers since they provide a special set of benefits specifically for a larger audience. The key benefits of collaborating with macro-influencers are a broad variety of viewers, which means more scope; time saved to pick and handle a greater range of influencers; a comparatively low chance of fake followers; and increased expertise. In summary, the objectives here are to find out the types of content that will influence the parasocial relationship and to identify the format of content that will influence the parasocial relationship. The rest of the paper is organised as follows. Section 2 discusses related works. Section 3 focuses on the methodology used. Section 4 elaborates on the result and discussion. Finally, the paper is concluded with a short summary in Section 5.
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2 Related Works 2.1 Parasocial Relationship Horton and Wohl introduced the phrase “psychological relationship experienced by an audience in their mediated meetings” in 1956 as parasocial interaction among public figures [3]. This applies to a specific instance of contact between customers and social network influencers, celebrities, or other entities across mediated networks. A parasocial relationship is related to a perception of engagement, a simulacrum for offering and taking conversation [3]. Parasocial interaction refers to the interaction that occurs most of the time one-sidedly between an audience member and a performance, a performer, an actor, a host, a member of the media, and so on [5–7]. Because of frequent communication, parasocial relationships are inextricably linked to a television figure [8]. Long-term audience involvement with a public figure has a significant impact on audience perceptions [8]. Users can associate with influences and their behaviours and actions through parasocial interactions [9].
2.2 Types of Content Many academics have observed that content form is concerned with customer involvement. According to Barger et al. [10], content, specifically, shapes the amount of interaction between users and the advertised content. Huang et al. [11] revealed the key driver in social network posting is more towards user perception of information, although Swani et al. [12] found the user to be more sensitive towards non-commercial sentiments. This may clarify Lee and Lee’s [13] results that brands promoted on social networking sites were more insightful, whereas advertisements appealed to low engagement with the products. They found that, compared to product group membership, social networking posts utilised common tactics, knowledge forms, and answer keys. The study did not, however, reflect on the effects of these basic marketing strategies. Researchers have no agreement on how to classify Social Networking Service (SNS) content. Three groups are suggested by Caseiro and Barbosa [14]: (1) publicity, services, or promotional campaigns; (2) information; and (3) offers, contests, or hobbies. This leads to identifying types of content that will influence the parasocial interaction of followers.
2.3 Formats of Content Content issues refer to the format of the content that will be displayed or the form of an image that is intentionally uploaded. Several media formats can be posted via Instagram: a single image, short videos (15 s), long videos (1 min), a GIF (graphic
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exchange format), or any media generated from integrated Instagram applications such as Boomerang and Layout [15]. The format, or whether it expresses itself through a picture, text, or video, is another crucial aspect to take into account. Sabate et al. [16] emphasise that advertised material can impact the effectiveness of the post. They discovered that visual content, such as photographs and videos, increased the number of likes because photos can be viewed much more easily than texts or videos. They further note that the amount of feedback is greatly influenced by photographs and publishing hours, whereas the usage of connections lowers this measure (idem). Because the comment phase takes more time to analyse openly and compose a viewpoint than clicking in one click, writing a statement is frequently associated with the various reasons caused by the context of the text. This led to determining what formats of Instagram content would influence the parasocial relationships of followers.
2.4 Parasocial Interaction Theory The purpose of the idea of parasocial interaction is to explain the form in which the individuals of the community are communicating. The target group is created through connections with public figures or personalities [3]. Typically, the word applies to one-sided interactions [17] and fictional partnerships [18]. Based on the degree to which all interactions become important to the lives of certain people in the audience, there is also a deficiency of actual interpersonal contact between public personalities and members of the audience [18]. Parasocial interaction has become a much more prominent concern these days due to the growth of social networking sites. Many studies have found that this phenomenon occurs more frequently in social media than in traditional media [19]. People who have a parasocial interaction with an event show the urge to look and to be in the “group” [20]. This may be very analogous to the partnership between social network consumers and online influencers. Public figures that are willing to communicate with their fans are more convincing than unknown public figures [21]. Instagram influencer interaction is bidirectional because users can add messages, and any comments made in response to them can address both the content and the author of the information. Therefore, two hypotheses are outlined: Hypothesis 1: There are significant links between types of content and parasocial relationships. Hypothesis 2: There are significant links between formats of content and parasocial relationships.
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3 Methodology 3.1 Research Design This study uses a content analysis method to gather all the information and reach its conclusion. Basically, it focuses only on analysing the content of macro-influencer Instagram accounts rather than obtaining data from respondents (questionnaires). This method has been chosen because, without intervening with the researcher, it can obtain all the details and thus prevent bias. In addition, when compared to the qualitative method, the time required to complete this study is not excessive. In terms of cost, since it is a quantitative method, this type of design is less costly to conduct compared to the longitudinal design. It also enables the researcher to analyse the data at any time. If the variables are defined and the theoretical structure is established, the next phase is to plan the analysis and obtain the necessary data to find an answer.
3.2 Sample and Duration This study chooses six Malaysian social media influencers’ Instagram accounts that have followers greater than 1,000, which are known as macro-influencers. The selected macro-influencers included 3 males and 3 females: Ahmad Akid, Mat Dan, Imran Aqil, Iman Abdul Rahim, Dena Bahrin, and Siti Hawa. These macroinfluencers’ Instagram accounts have been chosen mainly because their Instagram account meets the criteria of a macro-influencer, where their followers range from 100,000 to 1,000,000 [2], and because of their popularity, they need less time for promotion and monitoring and have a lower chance of having fake followers. The duration for collecting the data started on 25th December 2020 and included the most recent 60 Instagram posts by Ahmad Akid, Mat Dan, Imran Aqil, Iman Abdul Rahim, Dena Bahrin, and Siti Hawa. The content format and macro-influencer interactive strategies that influence the parasocial relationship of followers were coded. Finally, 10 recent comments from followers were analysed using a coding sheet to identify the parasocial relationships occurring on the macro-influencer’s post. Figure 1 presents one of the photos posted by the macro-influencer on Instagram.
3.3 Measurement and Instruments In this study, coding sheet was employed to assess the type of content microinfluencers post on their Instagram page and determined how the respond of the parasocial. In addition, it also observed the format of content used by macroinfluencers on their Instagram feed that influences parasocial relationships. Apart
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Fig. 1 Instagram image of Iman Abdul Rahim (@imanabdulrahim) on 31st December 2020
from that, this study also discovered what macro-influencer interactive strategy influenced the parasocial relationships of followers. From this method, the researcher can gather all of the content according to the three subsections that have been divided, which are types of content, formats of content, and macro-influencer interactive strategy with regard to parasocial relationships.
3.4 Data Collection This study used a coding sheet to gather and measure information on variables. There are three questions to be answered throughout this data collection: First, what types of content are posted by micro-influencers on Instagram, such as friends, family, food, selfies, and activities? It will also analyse which formats of content are there and what the macro-influencer’s interactive strategies are that will influence followers to create parasocial relationships. Therefore, sixty percent of content postings for each macro-influencer on Instagram will be recorded in coding sheet for the purpose of content analysis. Next is the type of posting that gets the most response, such as from followers, and how it is considered a parasocial relationship. Parasocial relationships can be evaluated by looking at the number of likes on their content feed posts and the number of people commenting.
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3.5 Validity and Reliability Evidence-based approaches ensure, in turn, the application of the results of wellestablished quality testing studies. It is also essential to be able to critique content analysis. Considerations are being provided for not only the findings of the analysis, but also for the objectivity of the testing. Rigor applies to the degree to which scholars have sought to increase the consistency of the findings. This is done in quantitative research through the assessment of validity and reliability. The degree of validity is classified as the degree above which the definition is precisely calculated in a quantitative study [22]. Reliability refers to the accuracy of measurement [22]. According to other definitions, reliability is the degree to which a process’s calculation yields reliable and accurate results [23].
3.6 Data Analysis After the researchers have collected the data, it will be analysed using a coding sheet and put into its respective categories. The method is to take the data directly from the Instagram accounts of six macro-influencers and put it into the categories according to the date and time to ensure that there are no mistakes in keying in the data.
4 Result and Discussion 4.1 Research Design The total number of Instagram posts that the researcher collected for this study was 60 posts for 6 macro-influencers. Furthermore, the study’s findings will examine the types of content, content format, and macro-influencer strategy in maintaining the parasocial relationship. To evaluate six macro-influencers’ Instagram posts, the types of content that influence parasocial relationships were categorised according to five categories: self-portrait (selfies), family, friends, food, and objects. Figure 2 presents the type of content of six macro-influencers’ Instagram posts for each category. To sum up, the six macro-influencers are likely to post more about their personal lives, like self-portraits (selfies) and family, than about food and objects. Posting their face in Instagram posts can create more parasocial relationships because it is more about human interaction compared to food and object posts, which is not something that can create parasocial relationships. The followers think they have some kind of relationship with the macro-influencers because they know all the updates about the macro-influencer’s life. Next, the findings for the category of content formats that will influence the parasocial relationship will be analysed according to four categories: unique photo,
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Fig. 2 Types of content of six macro-influencers
video, carousel, and IGTV. Figure 3 presents the format of the contents for each macro-influencer. Overall, the findings indicate that macro-influencers’ Instagram post exchanges have important implications for fostering parasocial relationships. First, the researchers identified a positive relationship between Instagram post interactions and parasocial relationships, which is consistent with the result from previous research [24]. Instagram’s technological features, such as interaction, the Instagram
Fig. 3 Format of content of six macro-influencers
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format, and the Instagram comment section feature, provide an ideal setting for the development of intimate and meaningful interactions between followers and macroinfluencers. Second, in parasocial relationships, this kind of content was discovered to have a significant role in mediating the interactions between macro-influencers and followers. This study’s findings support previous research on the effects of computermediated environments on interpersonal interactions. They show that self-disclosure is necessary for forming and maintaining “fake relationships” with celebrities on social media [25]. When macro-influencers post self-portraits and family pictures on Instagram, it exposes their followers to self-disclosure. The objective of disclosure acts is to maintain and develop the followers’ parasocial relationship.
5 Conclusion This study has generated a parasocial interaction theory of how the concepts of one-sided interactions occur among macro-influencers and audiences on social networking sites. This theory shows that Instagram content posting is the main reason for parasocial relationships to form. While aspects of the original concepts, such as self-disclosure, are included in the parasocial interaction theory, they take different forms and relate to each other in different ways. The type of Instagram post that influences the parasocial relationships among followers comes from self-portraits (selfies), family, friends, food, and objects. In contrast, the content format is influenced by unique photo, video, carousel, and IGTV. Macro-influencers’ 360 Instagram posts were split into type of content and format of content, but there is no obvious answer as to what form of content generates the greatest engagement. Self-portraits (selfies) were the most popular content format among macro-influencers; on average, a single photo was the most popular content format among macro-influencers.
References 1. Ismail, K.: Social Media Influencers: Mega, Macro, Micro or Nano. CMSWire.com (2018). https://www.cmswire.com/digital-marketing/social-media-influencers-mega-macromicro-or-nano/. 2. Berne-Manero, C., & Marzo-Navarro, M.: Exploring How Influencer and Relationship Marketing Serve Corporate Sustainability. Sustainability, 12(11), 4392, 1–19 (2020). https:// doi.org/10.3390/su12114392. 3. Horton, D., & Richard Wohl, R.: Mass communication and para-social interaction: Observations on intimacy at a distance. Psychiatry, 19(3), 215–229 (1956). https://doi.org/10.1080/003 32747.1956.11023049. 4. Bond, B. J.: Following your “friend”: Social media and the strength of adolescents’ parasocial relationships with media personae. Cyberpsychology, 19(11), 656–660 (2016). https://doi.org/ 10.1089/cyber.2016.0355. 5. Giles, D. C.: Parasocial interaction: A review of the literature and a model for future research. Media psychology, 4(3), 279–305 (2002). https://doi.org/10.1207/S1532785XMEP0403_04.
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Big Data Analytics Capability and Firm Performance in Retailing: A Systematic Review Haidong Zhang and Zailani Abdullah
Abstract Big data analytics refers to the process of discovering trends, patterns, and correlations in vast amounts of raw data. It is a very important field of study because it helps the organisation to identify new opportunities that are based on data-driven decision-making. However, a comprehensive review of big data analytics is still limited, especially with respect to China. Therefore, in this paper, we provide a systematic review of big data analytics and firm performance specifically in retailing in China. This review will help in easily understanding the correlation between both and also set a clear direction for carrying out future research in this area. Keywords Big data · Analytics capability · Retailing
1 Introduction The current business environment is very aggressive and thus requires retail enterprises to significantly improve their performance. In fact, the firm performance becomes quite crucial, and a strategic direction is critical to ensure retail enterprises can obtain their profit that is above the average. Generally, the term “firm performance” covers organisational performance, functionality, and outcomes of its operations that are usually difficult to exceed or duplicate and that are stronger in terms of long-term position compared to their rivals [1]. Global trends have shown that the development of domestic retail enterprises is mainly influenced by technology and innovation [2]. Indeed, modern corporate operations are also governed by new technologies and goods [3]. Through the growth of Information, Communication, and Technology (ICT), the continuation of the technology commercialisation platform, and the extensive inventive programmes, automation and innovation have H. Zhang · Z. Abdullah (B) Faculty of Entrepreneurship & Business, Universiti Malaysia Kelantan, 16100 Kota Bharu, Kelantan, Malaysia e-mail: [email protected] H. Zhang e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_52
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dramatically enhanced the productivity in China. In 2021, the government of China launched the Retail Enterprises China’s Master Plan (China’s 14th Five-Year Plan, 2021–2025) [4]. Five key variables have been identified to improve the retail enterprises’ performance. These variables include adoption of innovation and technology, human capital development, market access, legal and regulatory environment, and infrastructure. Therefore, with the recent development in China and the globally competitive environment, firm performance has become a key and detailed strategy in shaping the success of retail enterprises. For the past two decades, several updates and upgrades have been experienced in the digital wave, and now is the era of big data. In the era of big data, corporate performance targets and corporate goals become clearer. Due to the promise of significant business benefits from big data, many firms have started to invest in big data analytics. However, despite the increasing number of firms that are investing in big data analytics, only some have succeeded to translate the big data analytics investments into improving their business performance. This phenomenon is sometimes referred to as the information technology productivity paradox. As a result, it has triggered the big data analytics research community members to understand and untangle the ambiguous relationship between big data analytics and firm performance. Consequently, it has become one of the most surging and managerially relevant discussions within the big data analytics research literature in the last 10 years. However, the relevant research output has been labelled under separate concepts such as big data analytics, data analytics, business intelligence, and analytics. Echoing the opinions of some of the leading authors within the field, some researchers believe there is no need to separate the concepts from each other as standalone concepts [5]. Therefore, this study unifies all relevant concepts and subsets of literature under the umbrella term of big data analytics. By doing so, it has the potential to cover more relevant literature and conduct a more comprehensive literature analysis than some of the previous ones [6]. With respect to big data analytics and firm performance, there have been rapid increases in the studies in the last five years. By covering the relevant peer-reviewed studies from all subsets of the literature, this study has underlined two objectives. The first objective is to improve and update the current understanding of the relationship between big data analytics capability and firm performance. The second objective is to unify the relevant big data analytics literature that has been developing in several overlapping substreams. By achieving these objectives, it helps in understanding the current state-of-the-art in big data analytics and firm performance, as well as to enable the development of academic and managerial literature that is relevant for future research. This article is arranged as follows. After this introduction, this paper moves on to describing the methodological choices. Next, the findings are presented and discussed. Finally, the paper is concluded with the limitations, future research directions, and final remarks.
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2 Research Methodology The objective of this study was to present the current state-of-the-art of big data analytics and firm performance. The literature search was done based on the abstract and citation database. Several search criteria were deployed to retrieve the articles. First, in line with Mariani and Wamba [7], we developed multiple search queries entailing a combination of the focal keywords “big data” and “analytics” and “performance” with the retailing words “retail*”, “sales*” in the title, abstract, and keywords of the academic outputs. Second, only the published articles and articles in the press were included. Conference papers and book chapters were excluded. The retrieved documents had to be written in English. Second, as the data used for this study was collected between 2011 and 2021, the search was conducted from the beginning of the coverage of both databases up to 31st of December 2021. After eliminating some duplicated records and articles that were not directly related to the topic of the analysis and performance, the final dataset used for the analyses contained 6,136 papers from the Web of Science (WoS), with 173 papers specifically in retailing. These papers covered all the big data analytics and performance studies pertaining to the retailing settings, published and indexed over the period 2011–2021. After thoroughly screening the paper by abstracts, the number was successfully reduced to only 123 papers. At this point, a sizable portion of articles that dealt with a firm’s operational performance rather than its business performance was disqualified from moving further. Finally, after a quality assessment based on the full texts, the final number of articles included in the data extraction step was 41. The obtained result was then used to synthesise the data, and the results were then presented.
3 Results and Findings The systematic literature review process was based on the research keywords. As a result, 123 articles with respect to each defined research keyword were selected according to the inclusion–exclusion criteria. Table 1 shows the three screening stages of the articles. The content from these articles was extracted, and the proposed research article was organised into several sections: comprehensive overview of big data analytics capability in retailing domain, big data analytics capability, and performance in retailing. With the rapid growth of data, big data analytics capability and firm performance have given researchers an exposure to utilise them in a more noticeable manner for decision-making in several retailing applications. The trend of big data analytics capability and firm performance in the field of retailing domain for 2011–2021 is described in Fig. 1. Figure 1 shows the increasing tendency of doing innovative research studies (published in reputed journals) in the area of retailing big data.
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Table 1 Screening stages of the research articles Article selection based on search string
Electronic search
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Big data, analytics Big data, analytics, performance Journals
6,136
27,273
First screening with the retailing 558 words based on title/abstract/ keywords
21,137
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Second screening based on year 556 (2011–2021)
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Final abstracts screening
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Number of journal research articles 50 0
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Fig. 1 Trend of retailing big data research from 2011 to 2021
4 Big Data Analytics Capability Big data analytics capability is widely viewed as the ability to provide business insights to an enterprise by using data management, infrastructure (technology), and talent (people) capabilities to transform the business into competitiveness. Popovic [8] believed that the big data analytics capability of enterprises is reflected in data acquisition, processing, integration and transmission, analysis ability, and personnel. To date [9–11] have attempted to establish different dimensions of big data analytics capability. McAfee et al. [12] believed that technology infrastructure, people management, and enterprise decision-making are key capabilities across organisations in the context of the big data economy. Similarly, [10] identified analysis platform, organisational culture, and employee analysis skills as the core dimensions of big data analytics. Additionally, Davenport et al. [13] noted that in the big data environment, technology, personnel, and management are interconnected with one another, supporting the promotion of overall corporate performance. Management skill is crucial for optimizing decision models, and data science skills are crucial for comprehending, creating, and using analysis models, according to Barton and Court [11]. Finally, based on the above studies, Wamba et al. [9] summarised three dimensions of big data analysis capability: big data analysis management capability, big data analysis infrastructure capability, and big data analysis talent capability. The researchers also established a third-order conceptual model [9]. The existing literature also focuses on the study of strategically oriented big data analytics capability,
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that is, the analysis of creating sustainable value for business. For example, LaValle et al. [14] identified big data analytics capability as the ability to make decisions using big data, which is basically related to a firm’s business strategy. Schroeck et al. [15] used big data analytics to analyse real-time data with a focus on “competitive advantage” and “differentiation”. According to Kiron et al. [10], to gain a competitive edge, strategies and capabilities (such as data management, technology, and talent) should be coordinated to create an analytical environment. Despite using a different term, big data analytics capability is classified in the same way as big data analytics management capability, big data analytics infrastructure capability, and big data analytics talent capability in the pertinent literature. As for the research on big data analysis capability, Akter et al. [17] empirically studied big data analysis ability from the three dimensions of big data management ability, big data technology ability, and big data talent ability. At the same time, the moderating effect of business strategy matching analysis ability on big data analysis and enterprise performance has also been studied. Wamba et al. [9] empirically studied the partial mediating effect of process-oriented dynamic capability on the relationship between big data analysis, big data analytical capability, and enterprise performance. The ability of businesses to analyse big data was examined from three perspectives by Gupta and George [16], known as tangible assets (data, technology, basic resources), intangible assets (organisational learning intensity, datadriven culture), and human resources (technical skills, management skills). Indeed, they also proposed the possibility of combining these three factors. According to Mikalef et al. [5], seven resources are required for building big data analysis ability. They conducted a subject analysis study on the anachronous and business value of big data analysis ability. Through the investigation of six relevant enterprises, the study pointed out that big data analysis ability would be affected by tangible assets, human resources, and intangible assets and would affect the organisational ability (common capability and dynamic capability) of enterprises.
5 Firm Performance and Big Data Analytics Capabilities At present, the research on the impact of big data analysis on innovation performance mainly reflects the impact of big data analysis on the operational performance of a single enterprise. For example, Gupta and George [16] found out through empirical research that big data analysis ability played an important role in enterprise performance. Based on the empirical study of enterprises, Akter et al. [17] found that big data analysis ability played an important role in improving enterprise performance. The analysis of demand, inventory, and other data can enhance the operational performance of businesses and foster collaboration between them and supply chain node businesses. Dube et al. [18] believed that the ability of big data can extract information from massive data, prompt organisations to quickly perceive changes in the external environment, and make the organisational structure more agile and flexible, to get ahead
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of competitors and consolidate their market position. Gunasekaran et al. [19] found that big data capability can improve the transparency of the supply chain by reducing the possibility of distorted demand transmission within the supply chain, to further improve supply chain performance or enterprise performance, aiming to emphasise that big data capability can make information interpretation more accurate. There are four key conclusions from this review. First, there are indications of maturity and growing business management relevance in the literature on big data analytics and firm performance. The discussions of data analytics capabilities that are built on tangible, human, and intangible resources such as data, technology, and other basic resources, technical, and managerial skills for business analytics, as well as data-driven culture and intensive organisational learning, have been expanded in more recent research [16, 20, 21]. Second, the firm’s complementary resources and competencies have a significant impact on the relationship between big data analytics and firm performance [22]. In several articles under review, the research models were developed and empirically tested. They combined big data analytics with other valuable, uncommon, and difficult-to-replicate resources and capabilities, which were theoretically significant in translating big data analytics into improved firm performance. For instance, recent research emphasises the complementary roles of dynamic capabilities [9, 21], big data strategy alignment [19, 21], organisational culture [23, 24], information technology capital, educated employees, and high flow-efficiency production workplaces [22]. Big data analytics also enhances the performance of businesses through a variety of mediating outcomes including informational benefits [25], information quality [26], technological innovation [27], product and process innovation [27], dual innovations [28], and sustainable product development [29, 30]. Additionally, some studies examined how big data analytics can influence the relationship between a firm’s strategic actions and financial performance. According to these researches, big data analytics boosted a firm’s ability to generate business value through open innovation [31], business model designs [32], and supplier development [33]. Third, the findings also demonstrated that there are three main subgroups of the empirical study literature on data analytics and business performance: big data analytics, big data analytics, and big data intelligence and analytics. Strong evidence of the association among big data analytics capabilities including technological, human, and organisational elements, as well as various business performance outcomes has been produced by the existing research in the big data analytics subset [21]. The impact of various analytics methodologies such as descriptive, predictive, and prescriptive analytics on business performance is a topic of research in the big data analytics subset of literature [34, 35]. The focus of business intelligence and analytics literature is on data and its prospects for utilisation [30]. Thus, even though the three groups of literature have developed rather independently, they have all addressed the same topic, i.e., how organisations might use data to take advantage of economic opportunities and improve firm performance. Fourth, with the vigorous development and upgrading of digital technologies such as big data and artificial intelligence, many retail enterprises have emerged, whose success is due to the improvement of enterprise performance through innovative
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business models. In the new situation of a complex external environment and increasingly fierce resource competition, retail enterprises must re-examine their corporate performance and business model to obtain lasting competitive advantages [36]. At the same time, around the core issue of “retail enterprises to improve enterprise performance,” scholars have conducted intense discussions from different perspectives. An agreement that is widely accepted is that retail enterprises should integrate different resources to establish a connection between supply and demand on both sides. By doing this, they can meet the changing demands of people and attract more customers and partners. As the relationship between these parties grows in scale, it increases the likelihood of a network effect forming, leading to more channels for knowledge resource transfer, value-added benefits, and internet sharing. Ultimately, this enables the realization of the potential benefits of integrating resources within the retail enterprise [37]. Therefore, exploring the performance of retail enterprises from the perspective of knowledge has become a new approach to solving the innovation and development of retail enterprises under the background of digitalisation.
6 Discussions The goal of this study was to advance knowledge of the relationship between big data analytics and retail firm performance. According to the results, big data analytics capability is made up of both real and intangible resources. These include data and analytics technology, technical analytical abilities, big data analytics management, and a firm’s data-driven culture. As a result, businesses need to focus on all three resource areas in retailing. The absence of technical analytical capabilities, effective big data analytics management, or the firm’s data-oriented culture cannot be made up for by the best datasets or cutting-edge technologies or the opposite. The studied literature, however, reveals that organisations need complementary, wellsuited resources and capabilities to support their big data analytics competence to ensure better firm performance. The resources and capabilities of the firm must be modified to fit changing circumstances as the business environment and strategic goals of the firm often change. This also applies to big data analytics, which can only benefit a firm’s business if it can meet both its present and future business needs. Big data analytics and firm performance have a complicated and confusing relationship. In accordance with the resource-based perspective [38], companies are more likely to benefit commercially from big data analytics when they own or have access to valuable, uncommon, and hard-to-replicate resources that do so. Additionally, organisations require dynamic skills to benefit commercially from big data analytics, according to the dynamic capabilities idea [9, 39]. A number of the firm’s valued capabilities, including big data analytics, work together to create higher-order capabilities that give the target firm a competitive edge. However, the firm should be able to rearrange and refocus its capabilities by shifting business needs because of how tumultuous and dynamic the business environment is. This means that a firm must be able to recognise opportunities and dangers, grab chances, and transform
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the organisation, including big data analytics and the accompanying resources and competencies, to remain competitive in a highly dynamic business environment [40]. The relationship between big data analytics and corporate performance is complex and confusing. Moderate and mediate variables are worth studying and discovering. Besides big data analysis, enterprise performance can also be improved by adding more variables.
7 Conclusion This systematic review focuses on studying big data analytics and firm performance based on the defined keywords and related research aspects in retailing. The proposed study used a systematic literature review protocol and guidelines to review the systematic study of the past and the cutting-edge articles on big data analytics and firm performance in retailing. The purpose of the study was to explore the origins of big data analytics capabilities, and analysing the relationship between firm performance and big data analytics capabilities in retailing. It is expected that the present study will help the researchers to easily comprehend the overall context of retailing firm performance and big data analytics capabilities.
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The Impetus for Embracing Cyber Entrepreneurship Intention Among Small Businesses Hazrina Hasbolah , Syamsuriana Sidek , Norazlinda Mohamed Rosdi, Nurul Azwa Mohamed Khadri, Yusrinadini Zahirah Md. Isa@Yusuff, Zailani Abdullah, and Noorshella Che Nawi
Abstract Nowadays, the term cyber entrepreneurship, or an acronym for online business has sparked a tremendous phenomenon among small businesses. It can be seen by the blooming of popular fashion brands through a vast network of the Internet; preferably marketplaces, websites, and social media. Nevertheless, the adoption of cyber entrepreneurship among small businesses, particularly in Malaysia and Kelantan, is still in the infancy stage although the adoption of cyber entrepreneurship offers many benefits to companies. Hence, the main purpose of this study is to investigate the impetus that influences the entrepreneurs’ intention towards embracing cyber entrepreneurship by consolidating the Unified Theory of Acceptance and Use of Technology (UTAUT2). This study adopted a quantitative approach which was collected from 300 selected respondents consisting of small business entrepreneurs in Kelantan from various sectors such as services, manufacturing, construction, and agriculture. The finding from the study indicated that performance expectancy, effort expectancy, social influence, and facilitating conditions significantly influenced the intention of cyber entrepreneurship, while other factors, namely hedonic motivation, price value, and habit did not significantly influence. This study also tested the extended unified theory (UTAUT2) to measure the intention of cyber entrepreneurship as a business platform among small business entrepreneurs, providing a foundation for the design and the implementation that cope with the fourth industrial revolution. This study is essential to enhance the cyber entrepreneurship intention not only among small business entrepreneurs, but also among society and policymakers for the sake of Malaysia’s economic growth. Keywords Intention · Cyber entrepreneurship · Business platform · Small business · UTAUT2 H. Hasbolah (B) · S. Sidek · N. A. Mohamed Khadri · Y. Z. Md. Isa@Yusuff · Z. Abdullah · N. Che Nawi Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, 16100 Kota Bharu, Malaysia e-mail: [email protected] N. Mohamed Rosdi Faculty of Creative Technology and Heritage, Universiti Malaysia Kelantan, Kota Bharu, Malaysia © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_53
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1 Introduction The rapid changes in information and communication technology have sparked a tremendous phenomenon in cyber entrepreneurship (CE) specifically for online businesses. The advancement of technology brings vast changes that make businesses exposed to digitalisation and social media [25]. It can be seen in the blooming of popular fashion brands through a vast cyber network preferably marketplaces, websites, and social media [26]. Generally, in the mid 2000s, the movement towards new technologies has begun when the developments of the Internet and information technology triggered various models, innovations, and ecosystems of entrepreneurship. This movement is just the beginning of an enterprise, retail business, and small business innovation with very limited technology [15]. Reflecting the emergence of technology, information technology, and particularly the Internet, a new ecosystem of entrepreneurship, cyber entrepreneurs have been introduced into the twenty-first century [29]. It has been practiced with numerous related terms, namely online business, internet business as well as digital business [6, 7, 16]. Likewise, in entrepreneurship studies, cyber entrepreneurship is a modern and emerging concept [29]. The emergence of cyber entrepreneurship became the most important agenda for all countries around the world [5] in transforming the conventional way of conducting business among entrepreneurs [32] (Nambisan et al. 2017). Additionally, the dissemination of the new entrepreneurial ecosystem serves as a springboard for innovators and enterprises, particularly small businesses in shifting towards digital platforms [2]. It is an advantage, especially during the COVID-19 pandemic which affected various industries and trades including tourism and transportation. As reported in Internet User Survey 2018 held by the Malaysian Communications and Multimedia Commission, the percentage of online shoppers among Malaysian Internet users has generally increased from 48.8% in 2016 to 53.3% in the year 2018. As reinforced by Chan et al. [10], Internet-based entrepreneurship has gained popularity as a means of wealth creation and property acquisition in various aspects of the world today. Cyber entrepreneurship also is about creating a new e-commerce business and utilising internet technology to execute business activities have become a more common phenomenon [6, 28]. Indeed, cyber entrepreneurship terms are used to clarify the processes of selling products and services, as well as promoting them through online instruments which vary from an organisation that merely promotes products and services via electronic brochures and mails targeting both locally and internationally. Cyber entrepreneurship has a substantial potential to foster the growth of the economy, especially in a developing country like Malaysia that moving towards the fourth industrial revolution (IR 4.0) due to the numerous advantages of the Internet. Other than assessing products and services globally from remote locations physically, it also opens wider opportunities for Malaysian SME entrepreneurs in connecting to the new market. Nevertheless, in Malaysia, the adoption of cyber entrepreneurship among SME entrepreneurs is still in the infancy stage, especially due to lack of self-awareness. Alam and Ahsan (2007) also claimed that although the
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adoption of cyber entrepreneurship offers many benefits to companies, recent studies have shown that they are still reluctant to engage with cyber entrepreneurship. Apparently, the government has announced grants amounting to almost RM700 million allocated for all eligible entrepreneurship activities involving small and medium enterprises to adopt digitalisation. Additional RM70 million funds also have been allocated for cyber entrepreneurship platforms [20]. At present, there are limited practises of cyber entrepreneurship particularly in adopting ICT, Internet, and online technologies for commercial establishments, including SMEs, where Kelantan ranks at the bottom as compared to other states [18]. According to the SME Association of Malaysia (2021), only 26% of them picked digitalisation or e-commerce platforms as their secondary plan to survive during the post-pandemic era. The study of cyber entrepreneurship is in its infancy stage, with most studies focused on the facilitation of cyber entrepreneurial intention [9, 32]. Moreover, the number of studies examining this issue in the context of cyber entrepreneurship is a small fraction compared to those examining the antecedents of entrepreneurial intention. Therefore, this issue deserves greater attention to advance the academic understanding of cyber entrepreneurship. Thus, considering this issue, this research was designed to investigate the impetus that influences the entrepreneurs’ intention towards embracing cyber entrepreneurship among small businesses by consolidating UTAUT2 as well as to review the most recent literature on UTAUT2. Additionally, this study examined whether factors comprising performance expectancy, effort expectancy, social influence, facilitating condition, habit, price value, and hedonic motivation, can influence the entrepreneurs’ intention towards embracing cyber entrepreneurship among small businesses, hence making significant contributions to the UTAUT2. Moreover, this study also explored UTAUT2 in the context of cyber entrepreneurship among small businesses, thus proposing factors consisting of performance expectancy, effort expectancy, social influence, facilitating condition, habit, price value, and hedonic motivation, as the key impetuses to adopt cyber entrepreneurship.
2 Literature Review 2.1 Cyber Entrepreneurship Holeton [13] stated that William Gibson in his study defined the term cyber which refers to an environment where the activities of the business are conducted. According to Tseng et al. (2022), cyber entrepreneurship is a modern concept in entrepreneurship and a new type of activity that has been introduced depending on technology heavily to run the business [29]. Cyber entrepreneurship is a synonym for Internet entrepreneurship (Wang et al. 2020) and digital entrepreneurship [14]. Alternatively, Kollmann [14] calls it digital entrepreneurship where entrepreneurs commence their business based on innovative IT in the digital economy. Besides, it can be defined
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as any Internet-based business practise where entrepreneurs start their businesses online and conduct business transactions and exchange data using IT, especially over Internet platforms [17, 29, 32]. Compared with conventional entrepreneurship, engaging in cyber entrepreneurship is generally cheaper [9, 29, 32] (Tajvidi and Tajvidi 2021; Wang et al. 2020), less limited by geographical boundaries, easier to enter and exit (Tajvidi and Tajvidi 2021; Wang et al. 2020), and more IT-intensive (Tajvidi and Tajvidi 2021; Wang et al. 2020). Additionally, Wang et al. [32] further explained the term cyber entrepreneurship as starting a new e-commerce business via a platform that focuses on business activities for information sharing as well as promoting business activities through electronic media such as email, web portals, online banking, and many other payment gateways [11]. The Internet and Web expose extensive communication and transaction infrastructures that are reachable to all firms for growth opportunities and relational paybacks to entrepreneurial firms (Mullane et al. 2001; Raymond 2001).
2.2 Unified Theory of Acceptance and Use of Technology (UTAUT2) The UTAUT2 model is an extended theory of UTAUT which is one of the wellknown theories that have been extensively used regarding information technology [3]. Venkatesh et al. [31] added that 70% variance of this model explained the behavioural intention to use the technology but about 50% of the variance elucidated in technology adoption. In addition, many researchers argued that the UTAUT model is one of the models formulated by eight past theories, namely TAM (Technology Acceptance Model), TRA (Theory of Reasoned Action), TPB (Theory of Planned Behaviour), C-TAM-TPB which is developed by Taylor and Todd, MM (Motivational Model), Model of PC Utilisation (MPCU), SCT (Social Cognitive Theory), and DOI (Diffusion of Innovation) Theory [31]. The theory has been principally tested at the organisational and individual levels which were largely focused on user behaviour and direction to adopt new technology with the consideration of four key factors; performance expectancy, effort expectancy, social influencing, and facilitating condition [30]. These four factors have direct effects on behavioural intention and technology adoption substantially. However, due to the UTAUT model only distilling the critical factor primarily in organisational contexts, many studies have been conducted to improve the UTAUT model but still found some limitations. Thus, researchers extended with a new construct in UTAUT2 by integrating other three dimensions as follows: hedonic motivation, price value, and habit, as well as age, gender, and experience in moderating the effect [30]. Hedonic motivation is defined as the positive emotion or pleasure as well as immediate satisfaction that has been possessed and portrayed by an individual utilising the technology. Meanwhile, price value refers to the return on investment gained when they use information technology or the Internet of Things, while habit refers to the act of an individual towards any technological
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advancement and commonly repeats it [21, 22, 30]. Precisely, using the UTAUT2 model in this study with new construction and concept is extremely vital to expand the theoretical understanding of new technology preferably the advancement of the Internet of Things. Venkatesh et al. [30] defined performance expectancy as the degree of benefit to the users in performing their activities and affecting their performance when using the technology [4]. Chau (2010) added that it is perceived to be useful to achieve the outcomes in a user working environment and as a predictor for behavioural intention [19]. In several studies, performance expectancy is the same as perceived usefulness in the TAM theory of technology adoption. Effort expectancy is well defined as an individual who believes that his/her interaction with such technology is free from trouble or effort [30], which is associated with perceived ease of use (Davis et al. 1989) [4]. Thus, it is included as one of the predictors of behavioural intention [19]. Social influence is defined as the perception and pressure of a particular group that influences one individual’s decision towards the usage of technology [30], for instance, family and friends. Moreover, Alkhwaldi and Kamala [4] further discussed that social influence extends to which others believe that they should utilise a particular technology. In addition, facilitating condition is defined as resources and support available to perform a particular behaviour [4, 30]. Furthermore, Alghatrifi and Khalid [3] added that it is a degree to which technical infrastructure exists to support an individual’s use of technology. Facilitating condition in this study refers to the degree to which an individual believes that technical or infrastructure support can influence the intention and actual usage of the cyber entrepreneurship new technology. Typically, when the technical and infrastructure supports assist the technology usage, the facilitating conditions will directly affect the actual usage [30]. Meanwhile, hedonic motivation seems to be a vital determinant of technology acceptance and use [8]. The perceived enjoyment, fun, and pleasure from using technology have been found to influence the acceptance of technology when the technology is used directly [4, 30]. As a matter of fact, Mehta et al. [19] from their recent study of technology adoption in learning, added that hedonic motivation is linked to learner enjoyment, playfulness, and engagement with intrinsic and extrinsic motivations. Price value refers to the return on investment gained when they use information technology or the Internet of Things [21, 22, 30]. Furthermore, cost and pricing may have a vital impact on technology adoption decisions [19]. Therefore, one may consider technologies when it seems that the benefits are greater than the cost incurred [4, 30] (Zeithaml 1988). Lastly, habit refers to the extent that individual will automatically act with any technological advancement and commonly use it [21, 22, 30]. Before that, there would be automatic usage as well as prolonged adoption (Kim and Malhotra 2005; Limayem et al. 2007) [30] because of routine exposure. In addition, habit is a degree to which one believes that prior experience will automatically and unconsciously make them commit and behave towards a particular behaviour. It is also found to be a significant determinant of technology use since it may construct one behaviour changes to
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actual behaviour directly same as facilitating condition. Hence, the hypothesis can be formulated as follows: H1: Performance expectancy influences the intention to embrace cyber entrepreneurship. H2: Effort expectancy influences the intention to embrace cyber entrepreneurship. H3: Social influence influences the intention to embrace cyber entrepreneurship. H4: Facilitating condition influences the intention to embrace cyber entrepreneurship. H5: Hedonic motivation influences the intention to embrace cyber entrepreneurship. H6: Price value influences the intention to embrace cyber entrepreneurship. H7: Habit influences the intention to embrace cyber entrepreneurship.
3 Methodology This study is mainly focused on a quantitative approach. The primary data consisted of the business owner or owner-manager, also business representatives such as supervisors and managers. All samples consisted of small business entrepreneurs from various sectors such as services, manufacturing, construction, and agriculture. Samples were collected via face-to-face surveys using a similar set of structured questionnaires as the research instrument. Moreover, the questionnaire was provided in dual languages (Malay and English) to be responded appropriately due to the multi-races of Malaysian background. This questionnaire consisted of three main parts. Part A was about business and respondent background, Part B was about the level of intention towards the use of cyber entrepreneurship, and Part C was regarding driving factors on the use of cyber entrepreneurship. As mentioned in the literature review, this study adopted the Theory of Acceptance and Use of Technology 2 (UTAUT2). Consequently, all the research variables in this study mainly used constructs in UTAUT2. The dependent variable was the intention of cyber entrepreneurship, and the independent variables were performance expectation, effort expectation, social influence, facilitating condition, hedonic motivation, price value, and habit. All the items used a 5-point Likert scale that was modified from several studies such as Chang et al. (2019), Hasbolah et al. [12], Nordhoff et al. [23], Mamat et al. [18], and Venkatesh et al. [31]. Furthermore, the items were preliminarily validated through the results of the 30-pilot study nonrespondents to increase the validity of the questionnaire.
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In terms of sampling techniques, this study employed a purposive sampling technique that applied a strict rule to the selected respondents. The sample must follow these criteria: (1) Categorised as a small business where the number of full-time employees should be below 75 in the manufacturing sector and less than 30 in services and other sectors (see SME Annual Report, 2018/19). (2) Business operation for more than three years. (3) Representatives of the organisation such as owner, owner–manager, manager, supervisor or individual that can describe the business. The actual survey conducted was started in November 2019 and ended in early March 2020 due to Malaysian Movement Oder Control (MCO). The total of 332 questionnaires were returned, but only 300 questionnaires were adequate during the screening process as it is ultimately satisfied the Roscoe’s (1975) rule of thumb; a sample size between 30 and 500 is the most appropriate for social researchers. Hence, 300 samples were analysed to test descriptive analysis, validity, reliability, normality, and Multiple Linear Regression Analysis using IBM SPSS Statistics. The details of the results and the discussion are discussed in the next section.
4 Result and Discussion This section outlines the findings of this study. It starts with descriptive and frequency analysis which summarises the demographic characteristics of respondents and precisely layout the overall descriptive analysis of the model. This section also describes the validity, reliability, and normality tests. Finally, the end of the section generalises the overall results of pre-formulated hypotheses linear multiple regression analysis. The details of the section are underlined as following sub-sections.
4.1 Descriptive Analysis The summary of the sample background is presented in Table 1. As displayed, the sample of this study showed equal participation of males and females with the majority being married and aged between 21 and 50 years old. Results also showed that almost 50% of them have completed their studies at the secondary level until form 5, compared to the post-secondary level (27%), tertiary level (14.33%), postgraduate level (4%), and primary level (3.67%). Besides that, the respondents also have at least one year of business experience, with more than half of them having business experience of over 10 years.
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Table 1 Background of respondents Variables
Items
Frequency (n = 300)
Percentage (100.0%)
Gender
Male
150
50.0
Female
150
50.0
Marital status
Married
246
82.0
Single father/mother Age (years old)
5
1.7
Single
49
16.3
21–30
52
17.33
31–40
86
28.67
41–50
73
24.33
51–60
59
19.67
Above 60
30
10.00
Business
1–3
47
15.67
Experiences
4–6
70
23.33
(Years old)
7–9
25
8.33
Educational level
Primary
≥10 Secondary
146
48.67
81
27
43
14.33
Postgraduate
12
4
Services
Activities
Manufacturing
7
2.33
241
80.33
52
17.33
Construction
5
1.67
Agricultural
2
0.67
71
23.67
4,445 Ownership type
3.67
Post-secondary
Business
Per month (≈USD)
52.67
11
Tertiary a Others
Average sales
158
Sole proprietorship
1
0.33
91
30.33
259
86.3
Partnership
17
5.7
Private limited
24
8.0
Notes (1) a Others means non-schooling or completed studies in foreign country. (2) ≈ means approximately. (3) Conversion of USD1 = RM4.50. Source: Output based on 300 samples of this study
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Table 2 Descriptive analysis of the model Variables
Mean
Standard deviation (SD)
Cronbach’s alpha (α)
Skewness
Kurtosis
The intention of cyber entrepreneurship
3.8678
0.95257
0.958
−0.947
0.292
Performance epectancy
3.9393
0.79188
0.933
−0.742
0.391
Effort expectancy
3.7153
0.79658
0.882
−0.472
−0.170
Social influence
3.7900
0.73737
0.904
−0.880
1.001
Facilitating condition
3.7433
0.70913
0.846
−0.339
0.395
Hedonic motivation
4.0000
0.83502
0.963
−0.480
0.270
Price value
3.8673
0.85598
0.940
−0.832
0.644
Habit
3.7573
0.91252
0.934
−0.611
−0.235
Note Dependent variable is the intention of cyber entrepreneurship. Source Output was based on 300 respondents in this study
4.2 Validity, Reliability, and Normality Analyses The descriptive data shown in Table 2 indicates that hedonic motivation had the highest mean value, 4.00, while effort expectancy had the lowest mean value, 3.71. Most respondents agreed with the statement made in each item based on each variable, as all questions for each construct had a mean score above 3.00. All variables had standard deviations less than 1.00, signifying a small distribution of mean values. The results also suggest that respondents’ perceptions are consistent.
4.3 Multiple Linear Regression Analysis In this study, performance expectancy, effort expectancy, social influence, facilitating conditions, hedonic motivation, price value, and habit were employed as the independent variables in multiple linear regression to predict the outcome of intention to embrace cyber entrepreneurship. Multiple linear regression is the common technique to be employed if the set of independent variables consists of two or more variables related to one continuous dependent variable [1]. Seven constructs which consisted of performance expectancy, effort expectancy, social influence, facilitating conditions, hedonic motivation, price value, and habit as independent variables were analysed synchronously to investigate the entrepreneurs’ intention towards embracing cyber entrepreneurship as the dependent variable. The results of multiple linear regression analysis are shown in Table 3, where the Rvalue of 0.810 denotes a strong correlation relationship. Additionally, in statistics, the coefficient of determination known as R Square (R2 ) in the analysis model describes the proportion of variation in the dependent variable that is predictable from the independent variables.
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Table 3 Summary of multiple linear regression analysis of the model Hypothesis
Construct
Beta standardised coefficients
t-value
Sig. Value
Result
H1
Performance expectancy
0.320
5.080
0.000
Significant
H2
Effort expectancy
0.295
4.560
0.000
Significant
H3
Social influence
0.353
5.381
0.000
Significant
H4
Facilitating condition
0.147
−2.374
0.018
Significant
H5
Hedonic motivation
0.056
1.074
0.284
Not significant
H6
Price value
−0.036
−0.622
0.534
Not significant
H7
Habit
0.615
Not significant
0.029
0.503
R
0.810
R2
0.655
F
79.310***
Note Dependent variable is the intention of cyber entrepreneurship. Source Output was based on 300 respondents in this study
Based on the results in Table 3, the R2 value by the multiple linear regression model is 0.655, indicating 66% of the behavioural intention to cyber entrepreneurship variance was from performance expectancy, effort expectancy, social influence, facilitating conditions, and the remaining (34%) was from other factors that are not taken into consideration in this study. As shown in Table 3, social influence obtained the highest βeta value at 0.353, followed by performance expectancy (β = 0.320), effort expectancy (β = 0.295), facilitating condition (β = 0.147), hedonic motivation (β = 0.056), habit (β = 0.029), and price value (β = −0.036). The βeta values depicted that social influence was the strongest factor, while price value was the least factor impetus the entrepreneurs’ intention towards embracing cyber entrepreneurship among small businesses. All hypotheses were accepted as the results depicted that performance expectancy, effort expectancy, social influence, and facilitating conditions have significant relationships towards the intention of cyber entrepreneurship. Meanwhile, hedonic motivation, price value, and habit were depicted as not significantly influencing the entrepreneurs’ intention towards embracing cyber entrepreneurship among small business entrepreneurs. The findings supported the study by Alkhalaileh [5] that these independent variables play vital roles in turning cyber entrepreneurship into one of the most imperative agendas for all countries around the world.
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5 Conclusion This study has proven the empirical evidence regarding the extended unified theory (UTAUT2) to measure the intention of cyber entrepreneurship as a business platform among small business entrepreneurs, which provides a foundation for the design and the implementation that cope with the fourth industrial revolution. A comparison of the revenue generated by the Malaysian firms’ use of information and communication technology between the years 2015 (RM398.2b) and 2017 (RM447.8 billion) revealed a growing trend. This nature of the study is important to enhance cyber entrepreneurship not only among small business entrepreneurs, but also among society and policymakers for the sake of Malaysia’s economic growth. Comparing cyber entrepreneurship with the conventional company models, it has the benefits of cheaper start-up and operating costs and steadily developed into a more widely accepted and accessible form of entrepreneurship (Hasbolah and Abdullah 2021) [32]. Furthermore, cyber entrepreneurship as compared to conventional entrepreneurship offers more innovations and advancements, and prioritises profit-making through virtual platforms [6, 24]. In addition to its contributions, the delimitations are also highlighted in this study. It is quite difficult for the researcher to gain cooperation and support from the entrepreneurs of small businesses, and it is time-consuming during the data collection process. Yet, they also thought that answering the questionnaires would be wasting their precious time and invading their privacy which might lead to the rejection of answering the questionnaire. Nevertheless, by taking into consideration the delimitations, there are still many opportunities to expand for future study. Thus, future research could possibly use any other theory related to technology and includes any other additional variables linked to the cyber entrepreneurship intention that have the greatest impact on the cyber entrepreneurship adoption among small business.
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Factors Affecting Online Cash Waqf Adoption Among Muslim Donors in Kelantan Siti Rohana Mohamad , Nur Farahiah Azmi , Mohd Zulkifli Muhammad , Hasannuddiin Hassan , Amira Jamil , Siti Salwani Abdullah , and Tahirah Abdullah
Abstract Cash waqf is an important fundraising instrument in Islam. In line with the growing technology, the waqf institution implements various strategies that enhance exposures and acknowledgement of cash waqf. Thus, the purpose of this study was to examine the factors affecting online cash waqf adoption among Muslim donors in Kelantan. In achieving the objectives of the study, a quantitative approach was used. This study used the primary data collected via online structured questionnaire from a sample of 150 respondents. From the findings, the study concluded that four factors (i.e. perceived usefulness, perceived ease of use, perceived religiosity, and amount of information) were correlated with the inclination of online cash waqf adoption among Muslim donors in Kelantan. Overall, it is anticipated that these findings will enable the waqf institutions in Kelantan to devise efficient marketing strategies to attract more donors to contribute to cash waqf, thus ensuring the success of cash waqf in Kelantan. Keywords Perceived usefulness · Perceived ease of use · Perceived religiosity · Amount of information · Online cash waqf adoption
1 Introduction Waqf has an undeniable role in Islam. There is evidence that waqf has been playing a crucial role and is well established since the era of the Prophet Muhammad (PBUH). It has the capacity to help people through religious services as well as social and economic aids for the destitute and needy people with educational opportunities and environmental initiatives [23]. The waqf sector is becoming increasingly important in the framework of Islamic public financing instruments, providing many services S. R. Mohamad (B) · N. F. Azmi · M. Z. Muhammad · H. Hassan · A. Jamil · S. S. Abdullah · T. Abdullah Faculty of Entrepreneurship and Business, University of Malaysia Kelantan, City Campus, 16100 Kota Bharu, Kelantan, Malaysia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_54
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that are currently funded by the government, such as education, healthcare, food and shelter, and transportation infrastructure [14]. In fact, due to recent COVID-19 pandemic, waqf has also been used to provide medical supplies [5] and aid to those affected by the pandemic in many Muslim nations [1, 11]. Initially, waqf was limited to physical or immovable assets such as mosques, graves, and other buildings and land. This led to the misconception that only the wealthy or property owners could contribute to waqf [18, 22]. In contrast, the Islamic Fiqh Academy has recently expanded waqf’s remit by innovating and developing Shariah-compliant assets such as cash, services, and gains from new financial instruments including shares and sukuk [3]. Therefore, cash waqf has emerged to be implemented in Malaysia and other Muslim nations including Bangladesh, Egypt, and Syria, giving great potentials and benefits to communities [2, 8, 12]. The evolution and development of technology in recent years have allowed waqf institutions to provide online venues for waqf fundraising. The potential of online cash waqf is enormous, with the new generations being tech-savvy, they can transfer cash with a touch on their smartphones, whenever they prefer [4, 16]. Nowadays, people tend to do transactions online, and the online platforms have contributed a lot to economic structure since it promotes and attracts people to make immediate, hassle-free transactions. Consequently, the waqf administration is trying to entice more donors to make contributions via cash waqf due to its flexibility and efficiency. Online platforms have many advanced features that promote spread of information, payment channels, and cloud storage. Furthermore, with online cash waqf, people can take part in charitable giving whenever they wish to contribute with the hope of achieving blessings from Allah swt [27]. The primary aim of this research was to empirically examine the contributing factors to the online cash waqf adoption among Muslim donors in Kelantan, with the contributing factors forming the main questions in this study.
2 Literature Review This study used the Technology Acceptance Model (TAM). The model emphasises the significance of perceived usefulness and perceived ease of use, in explaining user behaviour across a wide range of user population and providing explanation on factors of technology acceptance [7]. According to Hong [9], perceived usefulness and perceived ease of use are two antecedents that shape an individual’s positive attitude to adopt the technology. Thus, this study attempted to empirically examine whether this theory was applicable to the online cash waqf, which in turn contributed to an improved online waqf system, attracting more donations to waqf cause (Fig. 1).
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Perceived of usefulness (U) Attitude toward using (A)
External variables
Behavioural intention to use (BI)
Actual system use
Perceived ease of use (E)
Fig. 1 Technology acceptance model
2.1 Adoption of Online Cash Waqf Cash waqf is often viewed as an alternative fund that serves as a financial instrument in the Islamic economy. Cash waqf returns may be used to fund development activities such as the construction of schools, mosques, and bridges or other basic infrastructures. It can also be utilised for providing food, education, health, maintenance, commercial activities, and social services. Islam encourages cash waqf contributions by urging Muslims to give a percentage of their money to charitable purposes [19]. Through cash waqf, people can take part in charitable giving whenever they wish to contribute voluntarily in exchange with blessings from Allah swt [27]. Because of the quick development and shifts in information technology, Tarsi [28] explained online waqf is a paradigm of waqf management over the Internet in which transactions are carried out online by accessing a waqf institution’s website. Likewise, online waqf refers to waqf transactions conducted online by anybody, anywhere [10]. It is significant because it makes it possible for people to conduct financial transactions in novel ways, such as through their phones, social media, and the Internet, as opposed to at a bank or a teller machine [13]. Due to the availability of online waqf, Muslims can now donate with more ease as they no longer need to spend time and money meeting with trustees before making a monetary contribution.
2.2 Perceived Usefulness Perceived usefulness is the extent to which an individual believes that employing an explicit method would enhance their work performance [7]. Among the most crucial factors of tendency to use certain technology is perceived usefulness, which has been established as a framework for measuring positive impact on users’ intention to adopt a technology [21, 29, 30]. Perceived usefulness was found to be one of the factors influencing online waqf acceptance among bank customers in Kota Kinabalu, Sabah [4]. The usage of technology aids individuals when completing specific tasks. According to Amin et al. [4], online waqf in Malaysia is also provided through mobile applications. Thus, it is believed that perceived usefulness can be used as a variable in the study of online waqf acceptance in Malaysia. Thus, the following hypothesis was formulated:
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H1: There is a significant relationship between perceived usefulness and online cash waqf adoption.
2.3 Perceived Ease of Use According to Davis [7], perceived ease of use is related to how clear, easy, and understandable a system is, thus the amount of mental effort required to operate it. A user-friendly and effortless system also enhances individuals’ confidence and promote dependency on it. Technology boosts performance of a system, requiring minimal effort from its users [4, 30]. Research has discovered that perceived ease of use influences users’ desire to use a technology [21, 29, 30]. Moreover, the perceived ease of use is high if operating the application or software can be quickly mastered. Therefore, the following hypothesis was proposed for this study: H2: There is a significant relationship between perceived ease of use and online cash waqf adoption.
2.4 Perceived Religiosity Waqf has an important role in Islam. Therefore, including perceived religiosity in the present study model is critical in understanding the interaction between waqf operations and Islamic religion. Islam is a religion that encourages its followers to perform good and honourable deeds. It directs the actions of every follower or believer in all circumstances, including maintaining good connections not only with God but also with other people. Majority of past research concluded that religiosity positively affects Malaysian intellectuals’ intention to engage in cash waqf [18, 25]. Furthermore, Mokhtar [15] reached a similar conclusion, stating that Muslims’ favourable views of cash waqf and online waqf were influenced by their religion. It shows how Islam emphasises helping the needy, in being close to the Almighty. Muslims’ philanthropic contributions are associated with the rewards promised by the Almighty. Muslims realise that improving the well-being of the society is part and parcel of being a devout Muslim. Their generous deed ensures Allah’s blessings for them in this life and the afterlife [26]. Contributing online cash waqf is a virtuous act that supports the development of the ummah while also performing a religious (Islamic) responsibility and gaining rewards from Allah. Thus, the following hypothesis was established: H3: There is a significant relationship between perceived religiosity and online cash waqf adoption.
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2.5 Amount of Information The amount of information accessible on online cash waqf is very important in influencing donor’s decision to contribute to cash waqf. Cash waqf is generally understood as a form of sadaqah that benefits the recipient in this world and the contributor or endower in the hereafter [24]. Previous research shows that individuals with greater information and knowledge are typically more confident in their decision-making abilities and less interested in the information and opinions of others [6]. Because of the widespread availability of the Internet these days, it is possible to persuade more people to make online contributions to cash waqf by sharing information through advertising on social media platforms like YouTube, Facebook, Instagram, Twitter, and blogs [4]. The social media and official website are used to relay information on the allocation of their funds, to allow access to regular financial reports, and to update on news regarding cash waqf. This information is especially important when donors are looking for information to help them make an online cash waqf contribution. Based on the discussion, the suggested hypothesis was as follows: H4: There is a significant relationship between amount of information and online cash waqf adoption. Figure 2 presents this research framework, which consists of the dependent variable and independent variables of the research. The dependent variable of the research is online cash waqf adoption, while the independent variables are perceived usefulness, perceived ease of use, perceived religiosity, and amount of information. This figure indicates the relationship between the factors that influence online cash waqf adoption among Muslims in Kelantan.
Perceived of Usefulness Perceived Ease of Use Online Cash Waqf Adoption Perceived Religiosity Amount of Information
Fig. 2 The relationship between the factors that influence online cash waqf adoption among Muslims in Kelantan
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3 Methodology Research methodology is a core element of any study. For this research, a quantitative data collection strategy was chosen. According to Neuman [17], the purpose of quantitative research is to test the relationship and the generalisation of the results. Statistical tests are used in the research to explain or find links between variables. As the purpose of this study was to determine the factors that influence online cash waqf acceptance, a correlational research approach was employed. For this study, questionnaires were used to collect data from respondents. For sampling method, convenience sampling was preferred to conduct the survey due to the unavailability of lists of financial institutions’ consumers. The target population was the consumers who owned smartphones or any Internet-related devices and an account in any financial institution. Due to several limitations that arose, a sample size of 150 respondents were selected to be recruited in the study. The results of this study were not suitable to generalise the entire population, but it may create a foundation for a larger study in the future. The questionnaire contained three section. Section A included demographic profile, Section B was related to online cash waqf adoption, and Section C included perceived ease of use, perceived usefulness, perceived religiosity, and amount of information. The questionnaire was administrated using Google Form and was sent to the respondents for a quicker response. In both Sections B and C, the respondents were asked to express their level of agreement to the items based on a five-point Likert scale (1 = Strongly Disagree, 2 = Disagree, 3 = Slightly Agree, 4 = Agree, 5 = Strongly Agree). Data collected from the questionnaires were compiled and analysed before relationships can be elicited. All the data were analysed by using Statistical Package for the Social Science (SPSS).
4 Results 4.1 Respondents’ Profile The information on demographic characteristics is displayed in Table 1. Out of the 150 respondents, 39.3% were male and 60.7% were female. Majority respondents were the 31–35 age groups, which were 52% of the total. This was followed by 24% aged 26–30 years old, 18.7% aged 36–40 years old, 5.3% aged 40, and above. Next, 53.4% of the respondents were degree holders, followed by 25.3% diploma holders and 16% of Secondary Education Malaysia (SPM) holders. Most respondents who answered the questionnaire were married (61.3%) or single (37.3%). In terms of monthly salary, 36% of the respondents were in the RM2,001–RM3,001 range, 33.3% in the RM3,001–RM4,000, and 22% were above RM4,001. The least percentage was those below RM2,000 range of income.
Factors Affecting Online Cash Waqf Adoption Among Muslim Donors … Table 1 Respondents’ profile
Number
639
Percentage
Gender Female
59
39.3
Male
91
60.7
Total
150
100.0
Age 26–30 years old
36
24.0
31–35 years old
78
52.0
36–40 years old
28
18.7
> 40 years old Total
8
5.3
150
100.0
Education background SPM
24
16.0
Diploma
38
25.3
Bachelor’s degree
80
53.4
Others Total
8
5.3
150
100.0
Marital status Single
56
37.3
Married
92
61.3
Divorced Total
2
1.3
150
100.0
Salary (RM) Below 2,000
13
8.7
2,001–3,001
54
36.0
3,001–4,000
50
33.3
Above 4,001 Total
33
22.0
150
100.0
4.2 Reliability Analysis Reliability indicates the degree to which it is free from bias, ensuring consistent measurement over time and across various items in the instruments. Cronbach’s alpha coefficient test was used to determine the reliability of the scales instrument used in this study. This construct was measured using five items in this study. Table 2 shows the independent and dependent reliability coefficients for this study based on the rules of thumb of Cronbach’s alpha. According to Sekaran and Bougie [20], the reliability of a variable construct is said to be good if it has a Cronbach’s Alpha value > 0.70. Table 2 also shows that all variables are highly reliable. In
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Table 2 Cronbach’s alpha value of variables
Variable
Cronbach’s alpha
No. of items
Online cash waqf adoption
0.818
5
Perceived of usefulness
0.867
5
Perceived of ease of uses
0.850
5
Perceived of religiosity
0.909
5
Amount of information
0.881
5
short, the findings of the reliability tests supported the appropriateness of the instruments used throughout this study, and the concept tested was suitable for the study. Therefore, the outcome of the instruments was suitable for a higher level of analysis.
4.3 Hypothesis Testing and Correlation Analysis According to Table 3, the positive value of correlation coefficient of perceived usefulness is r = 0.867** , p < 0.01 indicating that the relationship is strong. The positive value of correlation coefficient of perceived ease of use is r = 0.814** , p < 0.01, also indicating that their relationship is strong. Similarly, strong correlation was found for perceived religiosity (r = 0.794** , p < 0.01) and for amount of information (r = 0.821** , p < 0.01), indicating that their relationship is strong, according to the rules of Thumb of Cronbach’s alpha coefficient size. Table 3 Hypothesis testing and correlation analysis Hypothesis
Pearson correlation (r)
Result
H1
There is a significant relationship between perceived usefulness and online cash waqf adoption
0.867
Supported
H2
There is a significant relationship between perceived ease of use and online cash waqf adoption
0.814
Supported
H3
There is a significant relationship between perceived religiosity and online cash waqf adoption
0.794
Supported
H4
There is a significant relationship between amount of information and online cash waqf adoption
0.821
Supported
*
Correlation is significant at 0.01 level (2 tailed)
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5 Conclusion The dynamic transformation of waqf collection from traditional into an online-based system has gained attention worldwide due to its extraordinary potential to change lives and economies. This transformation can provide a Muslim society with secure and efficient access to fundraising instrument, simultaneously enhancing a Muslim’s socio-economic development to keep up with the Fourth Industrial Revolution. This study was conducted to identify the factors influencing online cash waqf adoption among Muslim donors in Kelantan. To sum up, the findings of this study showed that perceived usefulness, perceived ease of use, perceived religiosity, and amount of information had strong associations with online cash waqf adoption. As for future research, the hypothesis testing can be extended to other variables using other variables of TAM. The findings of this study may provide further insights into online cash waqf adoption especially to the Kelantan Islamic Religious Council (MAIK) and other waqf institutions. As for conclusion, the study helped MAIK to better understand the factors influencing Muslim donors’ online cash waqf adoption. Furthermore, constant communication through social media and website will not only gain donors’ attraction and promote regular contributions, but also enable the waqf institutions to establish good rapport with the public and attract more donors to increase cash waqf collection. This study’s questionnaires were posed to only 150 respondents and only Muslim donors, so the result might be limited to such a small size. Therefore, for future research, a greater sample size should be able to give better and more generalised result than this study.
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A Systematic Review of the Literature on Financial Well-Being of SMEs’ Owners Mas Azira Mohamed , Nahariah Jaffar , and Sellywati Mohd Faizal
Abstract SMEs’ financial well-being is vital to the country’s future development. Despite extensive research on the expansion of small-medium enterprises (SMEs), their financial well-being has remained untouched. A thorough overview of the literature on the financial well-being of small and medium-sized businesses is what this paper seeks to do. To advance scientific understanding of the financial well-being of small and medium-sized businesses, this research systematised a research protocol based on the works created by Kitchenham. This research did so in accordance with the methodological rigour necessary for a systematic literature review, which led to the creation of the research corpus. On Google Scholar databases, the researchers conducted searches. There were six articles in the study, covering all foreign publications between 2002 and 2022. These findings will get insights into SMEs’ financial well-being, which can be referred to in understanding and making improvements in the future. This chapter will provide a roadmap to conduct the research. Keywords Financial well-being · Literature review · SME · Systematic literature review · Well-being
1 Introduction Financial well-being is a critical research area that explores a consumer’s money management, spending, savings and investment behaviour. A nation’s capacity to raise its residents’ financial well-being is often used to gauge how economically successful that nation is. Well-being has grown to be a major issue for individuals from all socioeconomic backgrounds, according to Rahman et al. Since international leaders have repeatedly stressed the significance of well-being, it has been included in the post-2015 global development agenda [31]. The success of SMEs is necessary for the country’s future since they play a crucial role in the economy. According to M. A. Mohamed (B) · N. Jaffar · S. Mohd Faizal Faculty of Management, Multimedia University, 63100 Cyberjaya, Malaysia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_55
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Sisharini et al. [26], the well-being of SME company owners is a crucial component of the expansion of SMEs, which is why Sisharini et al. [26] supported this assertion. The COVID-19 crisis has impacted many aspects of financial well-being including among SMEs. Many businesses must go through digital business transformation to strive during the pandemic. The pandemic has led companies to complete their transformations much faster than before, despite the large scale of these transformations [34]. Thus, financial well-being of the business owner is important at this point to directly stimulate the development in the way the company is run. This issue is still understudied in the literature [4], despite a modest rise in research on well-being and its connection to corporate success [5]. Moreover, SMEs have a positive impact on the nation’s economic growth and would help Malaysian companies be more resilient in the face of a hostile and international business climate [19, 36]. Therefore, research into the factors that influence the financial well-being of SMEs is required. A thorough literature evaluation on the financial well-being of SMEs is lacking, despite the rising academic interest in financial well-being. Through this methodological literature evaluation, the researchers hope to close this gap in their knowledge. This systematic literature review identified six papers published between 2009 and 2022 using SME as the unit of analysis. This Systematic Literature Review (SLR) serves the objective of providing literature in the field of the financial well-being of SMEs and highlights research directions for researchers by emphasising the weak points of the existing financial well-being that require further study. The structure of this paper is as follows. An overview of the literature on SMEs and financial well-being is presented in Sect. 2. The review process used in this study is discussed in Sect. 3. The review protocol, inclusion and exclusion criteria, search strategy, selection procedure and metadata synthesis of chosen studies are all included in this section. Section 4 summarises the results and identifies the research gaps that need the scientific community’s attention.
2 Literature Review 2.1 Financial Well-Being The domain of well-being, which refers to happiness with life’s entire characteristics, includes financial well-being [10, 29]. The personal subcomponents of well-being, including the environment, housing, employment, health and leisure, include financial well-being [24]. However, academics have always considered financial wellbeing a subjective assessment [8]. Mokhtar et al. [17] also broadly defined financial well-being as an abstract concept explaining an individual or family’s financial situation. On the other hand, financial well-being is one of the subcomponents of personal well-being, and its definition has varied among researchers. The objective financial status is related to one’s financial well-being (i.e. income and wealth). However, subjective financial factors like perceived financial demands
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and financial conditions can affect financial well-being [8, 9]. Financial well-being is primarily influenced by a variety of variables, including financial behaviour as well as environmental and individual characteristics [9, 16, 25], financial education and financial counselling [9, 12, 12].
2.2 Financial Well-Being and SMEs Small and medium-sized businesses are crucial to the economy of the nation and are one of its driving forces. Most businesses, or 98.5% of enterprises in Malaysia, are SMEs, which also provide 37.1% of the country’s GDP and 66% of employment [27]. Therefore, favourable company development and long-term firm lifespan are quite important among SMEs. Nevertheless, despite these positive effects on the economy and people, Malaysia’s SME growth is still seen as slow and sluggish. This is illustrated by the employment contribution of SMEs to total employment, which increases annually by an average of 0.73% because of the expansion of SMEs in Malaysia [11]. Wiklund et al. [33] observed that SME owners’ wellness is one of the important features after reviewing the research on enterprises’ development [4]. In addition, financial well-being is one of the tools used to determine an individual’s financial health status. Individuals, particularly SME business owners, should strive for financial well-being since it will safeguard them from financial difficulty [6]. Financial well-being is significant since it has strong and positive links with other well-being, according to van Praag et al. [32]. As a result, this research acknowledges that in addition to the urgent need to expand SME enterprises, examining the financial well-being of SME company owners is essential to maximise the potential for their firms to flourish.
3 Review Methods This SLR attempted to find and present literature on financial well-being by developing research questions and choosing pertinent research papers. In conclusion, this review seeks: 1. To review the findings of the research conducted so far on financial well-being. 2. To highlight the research trends on financial well-being. 3. This paper will adhere to the ideas presented by Kitchenham [14]. The review procedure, inclusion and exclusion criteria, search strategy method, selection process and data extraction and synthesis processes are detailed after the suggested approach in the following subsections.
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3.1 Review Protocol This systematic research began with the creation of an extensive review process according to the concept, principles and metrics of the SLR by Kitchenham [14]. This protocol outlines the review context, search approach, data extraction, research questions and quality evaluation standards for the choice of study and data analysis. An SLR may be distinguished from a regular literature review or a narrative review by the review procedure [14]. Additionally, it improves review uniformity and lessens researcher bias. This is because researchers are required to offer a search strategy and the standards for including or excluding any papers from the review.
3.2 Inclusion and Exclusion Criteria By establishing inclusion and exclusion criteria, it is ensured that only publications pertinent to the research are included. The research articles on the financial wellbeing of SMEs that meet the requirements for this article are from journals, conferences, symposiums and seminars. In this Systematic Literature Review (SLR), we considered studies that were released between January 2009 and August 2022. A total of 1,340 research publications on the financial well-being of SMEs were found in the first search using the keyword (refer to Fig. 1 for a complete overview of the selection process). After carefully examining the articles, we eliminated those that did not explicitly address the financial well-being of SMEs. Nevertheless, we appeared in the search due to a keyword match. Additionally, papers were disregarded if there were duplicates, could not be found in full, or did not address any of the research topics in this paper.
3.3 Search Strategy As illustrated in Fig. 1, the search technique used both automated and manual searches. Finding the main research and gaining a wider viewpoint were both made possible by an algorithmic search. Due to the incorporation of new research, the researchers expanded the review. The manual search approach was used on the references of the studies found following the use of automated search, as advised by Kitchenham [14]. The search strategy helped define the proper search terms and locate the relevant databases to locate the necessary paperwork. Scopus, ScienceDirect and Google Scholar were used as the search databases for this investigation. The literature searches were completed on August 4 2022, and the publications were from peer-reviewed journals from the three databases. These diverse, globally renowned databases were searched to get pertinent information from publications. In addition to being an online academic citation index, ScienceDirect is
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Research financial well-being of SMEs
Database Scopus, ScienceDirect and Google Scholar Paper count: 1,340 Automatic search using search string. Paper count: 19
Studies duplicates - exclusion
Paper count: 18 Studies excluded based on title and abstract. Paper count: 13 Manual search in references Paper count: 6
Fig. 1 Process model for the systematic literature review
a repository of published scientific research run by publisher Elsevier. A worldwide database of peer-reviewed articles from across the globe is called Scopus [20]. Google Scholar does not include a publisher list, journal list, journal kinds, information about the timeframe or the refereed status of records, in contrast to the web of knowledge, ScienceDirect and Scopus. However, it is useful to cover citations not covered by other databases by utilising Google Scholar’s sophisticated search engine. Each database should be searched based on the search phrase, and the quantity of publications accessible, and their acquisition date should be noted. Although there is a wealth of literature available in magazine, working papers, newspapers, books and blogs, this study did not select any of these for this review article because the concepts discussed in these sources were not subject to review, making it impossible to reliably verify their quality.
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The title of the study and broad keywords obtained from the research questions were utilised to find relevant research publications. The goal of the article was to extract as many relevant articles from the keyword’s primary set as possible. The data analysis phase of the acquired research articles started once the main data were discovered using search terms, intending to evaluate their relevance to the research questions and inclusion and exclusion criteria of the study. Then all relevant research papers were stored in Mendeley, a programme for managing bibliographies, to be utilised for reference. Mendeley also assisted in locating studies that were duplicates. To make sure that the search had not overlooked anything, a human search was combined with an automated search. Forward and backward referencing were used to accomplish this. A spreadsheet was also used to extract the data after importing all the findings. To extract additional pertinent primary studies, primary studies were subjected to a procedure known as snowballing, which involved verifying the references of references to find more relevant literature. Then, Mendeley was updated with a set of primary research.
4 Study Selection Process The systematisation of a study process directed the systematic review, giving it credibility and decision-makers a basis of organised information [30]. A set of criteria that made up the study process was previously established to guarantee a systematic literature review. Figure 1 shows the flowchart with the SLR protocol stages employed in this study. For the study selection, a tollgate strategy was used [18]. As a result, we retrieved 1,340 research papers using automated search after doing keyword searches in all the relevant databases. Duplicate studies made up the majority of these 1,340 papers, thus they were removed. The remaining six papers were subjected to inclusion and exclusion criteria based on the study’s title, abstract, keywords and kind of publication. Therefore, 1,333 papers were eliminated, leaving only six studies on the financial well-being of SMEs. After the automated search phase was complete, we began a human search process to ensure the thoroughness of the search results. The remaining 18 papers were screened, and we checked the references for any pertinent research publications that the computerised search may have missed. For a detailed, step-by-step breakdown of the selecting procedure, see Fig. 1. We used special filters to extract the articles that were directly related to international magazine and focused on the subject. We made the decision to utilise solely English-language articles for the documents. Additionally, an “SME”, “MSME” and “entrepreneur” filter was used to focus the search on SME financial well-being. Following the application of these criteria, the bases included 18 items. The SCImago Journal Rank was then utilised to choose journals categorised in the first and second quarters of journal papers’ citations (Q1 and Q2). Following
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the application of these criteria, we discovered 19 articles about the financial wellbeing of SMEs. Following this procedure, the databases were left with 18 articles after the duplicate entries had been removed. Finally, we confirmed the publications’ conformity to the subject under investigation by reading the abstracts. Nine articles were produced from procedure.
5 Findings Most of the findings included in this study had been presented at prestigious conferences and in reputable publications. We thus thought that this systematic review may be utilised as a resource to identify current trends and to indicate research paths for more studies in the area of the financial well-being of SMEs, taking into account the quality of the research studies (Table 1). Chart 1 displays the breakdown of research articles by year of publication between 2009 and 2022. It is evident that, apart from 2009 to 2018, the number of publications related to technology adoption stayed constant at 0 paper, respectively. Between 2019 and 2021, the publishing rate climbed steadily (Fig. 2). The significance of researching the effects of the coronavirus pandemic on SMEs is principally supported by the fact that, in contrast to big corporations, SMEs are characterised by more constrained resources and structural aspects [7]. Most academics concurred that the underlying causes of the greatest susceptibility of SMEs during a pandemic are a lack of financial resources [35] and the potential for capitalising external financial resources. As a result, there is a need for research on SME financial well-being since, despite their significance, SMEs are very vulnerable. SME funding is heavily reliant on debt, particularly bank loans. Under normal conditions, common liquidity shortfalls may be addressed with working capital or short-term loans without jeopardising the viability of the company. Many models have been presented and investigated in earlier research to understand the independent factors that might affect SMEs’ financial well-being. Two papers reported financial literacy as an independent variable that considerably enhanced the financial well-being and had a favourable impact on financial wellbeing. Additionally, the adoption of Ar-Rahnu and Islamic microfinance was used in two articles, as shown in Table 2, to analyse the impact on SMEs. This is because debt, particularly for SMEs, can have a substantial impact on one’s financial wellbeing. Other than that, demography was mostly an important factor for one’s financial well-being. The effect of financial behaviour on financial stress levels may depend on demographic variables. Additionally, it could affect the degree to which stress, behaviour and literacy contribute to financial security [21]. In total, there were three articles that used demographic factor as a variable.
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Table 1 Research publications on financial well-being of SMEs No
Title of study
Authors & year
Population
1
Nexus between Islamic Microfinancing and Financial Well-being of Micro-entrepreneurs during the COVID-19 Pandemic in Malaysia
Azman et al. (2021) [2]
MEs in the Northern region of Peninsular Malaysia
2
The adoption of Ar-Rahnu and financial well-being of micro-entrepreneurs in Malaysia
Azman et al. (2020) [3]
Micro-entrepreneurs in Malaysia that used Ar-Rahnu
3
RICH with well-being: An entrepreneurial mindset for thriving in early-stage entrepreneurship
Lanivich et al. (2021) [15]
Entrepreneurs in the United States during 2017
4
Financial Literation: Determinants of Financial Well-Being in The Batik Small and Medium Industries in East Java
Sumani and Roziq (2020) [28]
SMEs Batik practitioners in East Java, Indonesia
5
Relationship between household financial well-being and sex of agripreneur along food security value chain for poverty eradication in Malaysia
Zainalaludin et al. (2019) [37]
Female respondents in fisheries and aquaculture community; Cameron Highland, Pahang among male tomato farmers; and Kuala Selangor, Selangor among male and female food and beverage micro-entrepreneurs
6
Financial literacy, cultural dominance and financial well-being of SME owners in Ghana: financial literacy, cultural dominance and financial well-being
Agyei et al. (2019) [1]
SME owners in a developing economy, Ghana
6 Conclusion It was observed that the research on the financial well-being of SMEs has been increasing, especially since 2019 onwards. Based on the findings of the evaluated publications, the findings of this literature review have provided insight into the status of research on the financial well-being of SMEs. The goal of this study was to provide a systematic review of the literature about SMEs’ financial well-being. We systematised a research protocol in accordance with the methodological rigour required by the SLR with the intention of advancing scientific understanding in the field of financial well-being, which led to the creation of the research corpus. The uniqueness of this research lied in the fact that it was the first comprehensive analysis of the literature on the financial well-being of SMEs. As a result, the scientific
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2.5
1.5
0.5
2008
2010
2012
2014
2016
2018
2020
2022
Fig. 2 Year of publications Table 2 Variables and journal list of paper No
Title of study
Journal
Variables
1
Relationship between household Jurnal financial well-being and sex of Pengguna agripreneur along food security value Malaysia chain for poverty eradication in Malaysia
Household financial well-being, sex of agripreneur, food security, poverty eradication, value chain
2
Financial literacy, cultural dominance and financial well-being of SME owners in Ghana: financial literacy, cultural dominance and financial well-being
Poverty & Public Policy
Financial literacy, cultural dominance, financial well-being
3
Nexus Between Islamic Microfinancing and Financial Well-being of Micro-entrepreneurs during the COVID-19 Pandemic in Malaysia
Jurnal Ekonomi Effect of Islamic Malaysia microfinance, financial well-being
4
The adoption of Ar-Rahnu and financial well-being of micro-entrepreneurs in Malaysia
International Journal of Academic Research in Business and Social Science
Ar-Rahnu adoption, financial well-being
5
RICH with well-being: An entrepreneurial mindset for thriving in early-stage entrepreneurship
Journal of Business Research
Financial well-being, job satisfaction, job security, resource-induced coping heuristic (RICH), autonomy
6
Financial Literation: Determinants of Journal of Financial Well-Being in The Batik Small Applied and Medium Industries in East Java Management
Financial literacy, financial Knowledge, financial attitudes, financial behaviour, financial well-being
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foundation for subsequent study may be provided through the systematisation of knowledge. The paper provides a thorough, organised assessment of the literature on its topic.
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Role of Engineering Technology on Logistic Performance in Promoting Economic Growth in Asian Countries Nur Naddia Nordin , Nur Haiza Nordin , Nur Ilyana Amiiraa Nordin , Nur Faiz Nordin , and Norzalina Zainudin
Abstract Engineering technology and logistic performance become key elements of sustainable long-run economic growth and have been explained in endogenous growth theory as a proxy of physical capital. The analysis draws engineering technology and logistic performance data for ten countries. The estimation data is from 2008 to 2020. The empirical analysis involved the estimation of the cointegration test, Dynamic Ordinary Least Square (OLS), and long-run estimation coefficient. The finding showed that the spillover effects of engineering technology indicated the highest effect on long-run economic growth, but the effect of logistic performance could not be denied due to a positive and significant coefficient. Thus, government and policymakers should play a significant role in shaping engineering technology to sustain economic growth. Keywords Engineering technology · Logistic performance · Asian countries · Growth
1 Introduction Engineering is a profession in which the mathematical and natural sciences are used with judgement to develop methods to efficiently use the resources and forces of nature for the benefit of mankind. This knowledge is acquired via study, experience, and practice. Engineers help build physical infrastructure including roads, bridges, water and energy supplies, and waste management systems. Additionally, they are in charge of the networks that make up our digital infrastructure, including our communications and navigation systems, which are essential to city life. In the fields of research, food production, and healthcare, engineers play a crucial role. By N. N. Nordin (B) · N. H. Nordin · N. I. A. Nordin · N. F. Nordin Faculty of Entrepreneurship and Business, University Malaysia Kelantan, Kota Bharu, Malaysia e-mail: [email protected] N. Zainudin Faculty of Human Ecology, University Putra Malaysia, Seri Kembangan, Malaysia © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_56
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constructing this infrastructure, engineering has contributed to economic growth in a way that is far wider and long-lasting. It is simpler for firms to trade their goods and hire more people when there are good transportation links. High-speed Internet can help a business expand its reach beyond local or national borders, boost productivity, and improve operational efficiency. Engineers offer ideas and alternatives that improve social value while reducing environmental harms. There are certain urgent concerns because of the detrimental consequences of pollution, resource depletion, fast population growth, and ecological destruction. As a result, engineers must increasingly incorporate objectives like poverty reduction, social justice, and local and global linkages. A mere environmental approach is no longer acceptable. As a result of globalisation, engineers have several opportunities to encourage change since they may impart their knowledge and best practises. Engineers are required to carry out their tasks within a larger context that considers social, ethical, environmental, and economic concerns. An engineer can achieve long-term sustainability in promoting economic growth Dodds and Venables [16]. They will support engineers in pursuing sustainability as a part of their professional obligations and making sure that this goal is incorporated into all engineering efforts and contribute to the sustainability of society both now and in the future. In order to contribute to the development of a more sustainable world, engineers have a duty to maximise the value of their labour. This calls for an awareness of what society expects and what is practical, as well as a realisation that these things evolve with time. Engineering technology, which is located at the end of the occupational spectrum closest to the engineer, is the area of technology that involves the application of scientific and engineering knowledge and methodologies together with technical abilities in support of engineering activities. Engineering technology is the use of science and engineering to solve a variety of issues in the actual world. The goal of applying engineering technology to logistics in industrial production management is to plan, account for, and lower logistics expenses, which now account for at least 15% of all engineering companies’ costs. Many scientists and experts believe that the use of the logistics concept of industrial production management, which necessitates the study of the “supply–production–sales” cycle of logistics process, may be a source of growth for engineering firms, Friedman and Malanina [9]. Thus, the main objective of this study was to examine the role of engineering technology on the logistic performance in boosting economic growth in Asian countries. Using a Dynamic Ordinary Least Square (OLS) estimation technique approach, the framework of this study used various indicators from 2008 to 2020 from the World Bank. The rest of this paper is organised as follows. In Sect. 2, the past literature is discussed. The model definition, data description, and econometric analysis used in the current study are all covered in Sect. 3. The specifics of the findings and comments are presented in Sect. 4. Finally, in Sect. 5, we present our findings and policy suggestions.
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2 Literature Review By growing digitalisation and automation of operations, the Fourth Industrial Revolution, commonly known as “Industry 4.0”, is changing the manufacturing sector. Information technology is intended to be merged with manufacturing and logistical operations in the Industry 4.0. According to Doh et al. [8], Logistics 4.0 encourages businesses to concentrate on man–machine interaction, information and communication technology (ICT) use of modern sensors, and lean management’s ability to enhance the company. Similar to this, Alias et al. [1] contended that the primary means of achieving smart systems in manufacturing firms are adaptable processes and supporting information systems. Additionally, researchers showed that engineerto-order supply chains can quickly recognise and respond to plan changes because to real-time data made possible by Industry 4.0 technology Dallasega et al. [6]. Similar to this, Dallasega et al. [7] noted that the Industry 4.0 principles affect how close players are to one another in supply chains for the building industry. Researchers believed that the integration of horizontal and vertical value chains in terms of digitising services, goods, and consumer connections can lead to Logistics 4.0, Kovacs [11]. According to Barreto et al. [3], Industry 4.0 entails vertical integration of subsystems within the plant to build a flexible and adaptive production systems, horizontal integration through networks to ease internal cooperation, and through-engineering integration across the whole value chain to enable product customisation, Lin et al. [12]. Two fundamental building blocks for engineering integration across processes are the horizontal integration of businesses and the vertical integration of production inside the plant. Many firms may carry out the various stages of the product life cycle. Most recent studies [2, 15] recommended combining time, quality, cost, and flexibility-based economic indicators to quantify logistics performance to reflect the varied implications of Logistics 4.0-related measurements on performance outcomes. Adopting and effectively utilising digital technology across a variety of logistical activities enables the achievement of competitive advantages [4, 5]. Digital technologies influence and support the logistics industry across a wide range of activities, from optimised resource planning and warehouse management systems to intelligent transportation systems, while at the same time placing an increasing emphasis on information and data security [3, 10, 14]. The modern mechanical engineering production complex development requires the adoption of logistical technology, Friedman and Malanina [9]. The use of logistics technologies is linked to the reduction of logistics expenses, which will free up some financial resources for building up the logistics infrastructure complex or funding technological advancements. The adoption of a logistics outsourcing approach in managing the external logistics of major engineering enterprises is taken into consideration as one of the promising technologies. The field of consulting services in the acquisition or development of logistics technologies, in organising the transportation of goods, including routing, handling, and monitoring of goods in transit, as well as
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in documentary registration in the process of international delivery of goods, should be taken into consideration as promising areas of integration of logistics companies with mechanical engineering enterprises. The possibility of deploying information logistics systems must be considered given that mechanical engineering businesses seek autonomous control over the intra-production logistics operations, Friedman and Malanina [9]. Such systems can be applied to mechanical engineering to transport, store, and handle inventories of raw materials entering manufacturing. Implementing information logistics systems in machine manufacturing has the following financial advantages: speeding up the logistics process, using less materials in the production process, and increasing the accuracy of information. The creation of the conditions of their choosing is a crucial component of management by information logistics systems implementation. It is crucial to consider technological innovation, the crucial period of the logistics process, and the functional area of management when selecting the information logistics system for a mechanical engineering firm. Transportation of material resources between production divisions of the mechanical engineering firm is considered in this instance as such functional area of management.
3 Methodology 3.1 Model Specification To examine the role of engineering technology in influencing the logistic performance on economic growth, this study employed the basic endogenous growth model, Y = K α H β A1−α−β L 1−α−β
(1)
where Y is output, K is stock of physical capital, L is labour, H is stock of human capital, and A is technology. To examine the impact of engineering technology and logistic performance on economic growth, we employed a similar growth model employed by Palei [15]. The model can be expressed as follows: Yi,t = β0 + β1 E N GTi,t + β1 L P Ii,t + β3 X i,t + μi,t
(2)
where Y is economic growth, E N GT is an indicator of Engineering Technology, L P I is an indicator of logistic performance, and X is a control variable. Equation (2) serves as a baseline model for estimation purposes.
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Table 1 Variables used Variable
Abbreviation
Measurement
Sources
Economic growth
GDP
It was calculated using the actual GDP’s yearly percentage change
World development indicator (WDI)
Engineering technology
ENGT
Research and development (R&D)
WDI
Logistic performance
LPI
Overall score of logistic performance
WDI
Human capital
HC
Life expectancy at birth
WDI
3.2 Data Description and Econometric Analysis The data set consisted of observation for 10 Asian countries. Data over 2008 to 2020 were analysed as a pooled data and panel data. The dependent variable of the growth was defined as the real GDP in US$ at the current time. The indicator of engineering technology was based on research and development (R&D) expenditure, and logistic performance index was based on the overall score of logistic performance. The control variable was human capital. The main source of data was from the World Bank. The description of the variable, its measurement, and the hypothesised relationship with the dependent variables are presented in Table1. For the econometric analysis, we estimated the panel data using Dynamic OLS as proposed by Pedroni [20] and Kao et al. [19]. According to Stock and Watson [18], using Dynamic OLS will correct the standard pooled OLS for serial correlation and endogeneity of regressors that are normally present in a long-run relationship. The data will test for unit root test and cointegration test.
4 Results and Discussion The empirical analysis employed panel estimation of the data. The data involved ten Asian countries involving unit roots test to evaluate the variables. The findings showed that, because the variable has a unit root, the null hypothesis cannot be ruled out. The null hypothesis can therefore be rejected after testing at the first difference when all the variables were stationary. As a result, it was determined that all the variables were integrated to order I(1). To further analyse the cointegration tests, it was established that all of the variables were integrated at I(1). Pedroni [20] and Kao et al. [19] were examined using two cointegration tests. Seven test statistics were performed in the Pedroni analysis based on cointegration within dimension. The result of the Pedroni cointegration test is presented in Table 2. To analyse the cointegration test, the next step was to confirm that all the variables were integrated at I(1). The test findings showed that the panel PP statistics, panel
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Table 2 Descriptive statistics Mean
GDP
ENGT
LPI
HC
12.0228
5.9156
5.4882
6.1614
Median
11.8754
5.7904
5.6387
6.1628
Maximum
13.3141
6.8305
6.8045
6.9070
Minimum
11.2869
4.3825
4.1106
5.4254
0.5525
0.5742
0.6280
0.3789
Std. dev
Note GDP = growth, ENGT = engineering technology; LPI = logistic performance; HC = human capital
Table 3 Results of cointegration test based on Pedroni
Test statistics
Intercept
Intercept + Trend
ZV
0.1575
−0.9847
Zρ
0.9430
2.3450
Zt
−3.5684***
−2.8392***
Z t∗
2.3552***
−3.0345***
z˜ ρ
−4.5237
3.4548
z˜ t
−3.6910***
−5.0036***
ADF statistics, group PP statistics, and group ADF statistics may all reject the null hypothesis that there was no cointegration. Therefore, it was reasonable to infer that the variables employed in this study were cointegrated. The cointegration testing was used to further support the outcome of the [20] cointegration test, as recommended by Kao et al. [19]. The findings in Table 3 demonstrated that there was significant evidence to back up the prior finding as the null hypothesis of no cointegration can be rejected at the 1% level. Having established that the variables were integrated of order one (1) and cointegrated, the next step is to examine the long-run relationship between variables using a dynamic OLS estimator. The results of estimating the baseline model including all variables are reported in Table 4. The results showed that the engineering technology and logistic performance played a significant role in economic growth. This finding was consistent with Freidman and Malanina [9] and Lin et al. [13]. The next step of analysis was to examine the role of engineering technology on logistic performance in influencing economic growth. The result is reported in Table 5 and supported with the value of marginal effect. The result indicated that between engineering technology and logistic performance, both variables indicated a positive and highly significant impact on economic growth. However, having tested the interaction variable between engineering technology and logistic performance, the coefficient value of the interaction indicated a higher coefficient value than the individual estimation coefficient of engineering technology on logistic performance. Thus, having the positive and significant effect of the interest variables, we employed
Role of Engineering Technology on Logistic Performance in Promoting … Table 4 Result of dynamic OLS estimation
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Variable
Coefficient
ENGT
0.5257
0.0066
LPI
0.4057
0.0150 0.4015
HC
0.5257
R-squared
0.9960
S.E. of regression
0.0380
Long-run variance
0.0018
p-value
Note ENGT = engineering technology; LPI = logistic performance; HC = human capital
a marginal effect, as proposed by Brambor et al. [17]. The results showed that engineering technology showed a positive and significant impact on long-run economic growth same with logistic performance, which was consistent with a study by Nordin et al. [13]. As we calculated the marginal effect, the coefficient value of interaction term was 0.5532, which was higher than engineering technology (0.5108) and logistic performance (0.4731). Thus, this result indicated that engineering technology played a very significant role in shaping the logistic performance, which was consistent with Barreto et al. [3], Kayikci [10], and Freidman and Malanina [9]. Table 5 Estimate of long-run coefficients
ENGT
0.4996 (0.0005)
LPI
0.3574 (0.0015)
HC
0.0296 (0.0018)
ENGT × LPI
2.9876 (0.0001)
Marginal effects (mean value) ENGT
0.5108
LPI
0.4731
HC
0.0856
ENGT × LPI
0.5532
Note ENGT = engineering technology; LPI = logistic performance; HC = human capital
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5 Conclusion The past researchers conducted extensive studies on the topic of economic growth, which has emerged as the most crucial economic issue. This problem has been thoroughly investigated using a variety of approaches. Economists have been studying the elements that affect growth and examining the strategies needed for countries to maintain and encourage sustained production growth over time. The function of IR4.0 in determining and developing the country’s growth rate is a current topic that academics have been debating. This study used dynamic OLS estimation techniques to estimate the panel data from 2008 to 2020 by looking at the 10 Asian nations. The results suggested that, when this variable interacted with logistic performance, the impact of engineering technology on long-term economic growth was greater. Our research therefore contributed to a new empirical finding: countries need to have advanced engineering technologies to increase logistic performance. The new endogenous growth hypothesis that emphasised the role of technology in the growth model was also supported by this observation. As a result, the government and policymakers should pay greater attention to the expanded role of engineering in the economy. The absence of long-term data series for all the nations is the study’s main drawback. The 13-year span covered by the current empirical investigation only included 10 nations. For future studies to have a more significant outcome, the researchers could broaden the engineering indicator employed, such as by using an engineering index where additional engineering components may be analysed.
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9. Freidman, O. A., & Malanina, Y. N. (2019, May). Logistics technologies in mechanical engineering complex: the prospects for outsourcing applying. In IOP Conference Series: Materials Science and Engineering (Vol. 537, No. 4, p. 042069). IOP Publishing. 10. Kayikci, Y. (2018) Sustainability impact of digitization in logistics. Procedia Manufacturing, 21, 782–789. https://doi.org/10.1016/j.promfg.2018.02.184. 11. Kovács G, Kot S. New logistics and production trends as the effect of global economy changes. Polish Journal of Management Studies. 14. 2. p. 115–126; 2016. 12. Lin, H. W., Nagalingam, S. V., Kuik, S. S., & Murata, T. (2012). Design of a global decision support system for a manufacturing SME: Towards participating in collaborative manufacturing. International Journal of Production Economics, 136(1), 1–12. 13. Nordin, N., Nordin, N., Nordin, N.I.A., Nordin, N.F. (2023). The Role of Logistic Performance on Foreign Direct Investment-Growth Link: Evidence from Asian Countries. In: Alareeni, B., Hamdan, A. (eds) Impact of Artificial Intelligence, and the Fourth Industrial Revolution on Business Success. ICBT 2021. Lecture Notes in Networks and Systems, vol 485. Springer. 14. Ole´sków-Szłapka, J., & Stachowiak, A. (2018) The framework of logistics 4.0 maturity model. In: International Conference on Intelligent Systems in Production Engineering and Maintenance, 771–781. Springer, Cham. https://doi.org/10.1007/978-3-319-97490-3_73. 15. Palei, T. (2015). Assessing the impact of infrastructure on economic growth and global competitiveness. Procedia Economics and Finance, 23, 168–175. 16. Dodds, R., & Venables, R. (2005). Engineering for Sustainable Development’. Guiding Principles (London: Royal Academy of Engineering). 17. Brambor, T., Clark, W. R., & Golder, M. (2006). Understanding interaction models: Improving empirical analyses. Political analysis, 14(1), 63–82. 18. Stock, J. H., & Watson, M. W. (1993). A simple estimator of cointegrating vectors in higher order integrated systems. Econometrica: journal of the Econometric Society, 783–820. 19. Kao, C., Chiang, M. H., & Chen, B. (1999). International R&D spillovers: an application of estimation and inference in panel cointegration. Oxford Bulletin of Economics and statistics, 61(S1), 691–709. 20. Pedroni, P. (1999). Critical values for cointegration tests in heterogeneous panels with multiple regressors. Oxford Bulletin of Economics and statistics, 61(S1), 653–670.
Transformation and Innovation in Education for Forward Industry
Effects of Digital Financial Literacy Towards Online Buying Behaviours Among Students During COVID-19 Pandemic Ahmad-Ridhuwan Abdullah , Zul Karami Che Musa , Siti Salwani Abdullah , Mohd Zulkifli Muhammad , Mahathir Muhamad , Mohd Safwan Ghazali , and Muhammad Naqib Mat Yunoh
Abstract The rapid growth and transformation of e-commerce businesses and online marketing activities have set a new culture on online purchasing behaviour. Although it is good for business and economy, excessive or uncontrollable online spending could harm any individual’s economic well-being, particularly among university students. Hence, this study investigates the influence of digital financial literacy among undergraduate students towards positive buying behaviour during the COVID19 pandemic. This research aimed to study the effects of digital financial literacy factors on online buying behaviours among Malaysian university students during the pandemic of COVID-19. It investigated the relationship between financial education, financial socialisation, financial attitude and financial knowledge with students’ positive buying behaviour. The quantitative survey data from 152 participants were analysed in SPSS version 26.0. The result showed the dimension of digital financial literacy, which consisted of financial education, digital and financial socialisation, financial attitude and financial knowledge had a strong positive impact on online buying behaviours during the COVID-19 pandemic. The findings thus showed that digital financial literacy was important, and the students should be equipped with the skill. The results highlighted the necessity of digital financial literacy skills in the modern world and raised awareness among students and educational institutions. Keywords Digital financial literacy · Online buying behaviour · Pandemic COVID-19 · University students
A.-R. Abdullah (B) · Z. K. Che Musa · S. S. Abdullah · M. Z. Muhammad · M. Muhamad · M. S. Ghazali · M. N. Mat Yunoh Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, 16100 Kota Bharu, Kelantan, Malaysia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_57
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1 Introduction The potential to deal with personal finances has become increasingly critical in today’s modern business environment. Students of higher learning institutions must invest in their future and education over a long time. They should also make quickterm financial savings and borrowing decisions such as tuition fees, food, accommodation, emergencies and transportation costs. In today’s market, students need to be more responsible for their financial well-being as they are exposed to various appealing digital advertisements as a result of the current business transformation. However, research shows that most people are unprepared to make sensible economic choices [1], which might result in negative buying behaviours such as compulsive buying disorder [2]. The ability to understand finance is referred to as financial literacy. It refers to gathering skills and expertise that help a man or woman make educated and powerful monetary decisions. Financial literacy is more than just a measure of facts; it reflects one’s ability to deal with money in a variety of contexts, including but not limited to earning, protecting and spending [3]. Those who lack economic literacy are significantly more likely to have debt issues, supporting the idea that financial literacy has substantial behavioural implications [4]. Furthermore, the fast development and complexity of the digital economy warrant researchers to study the digital financial literacy (DFL) domain in influencing students of higher learning institutions. Digital financial literacy provides a valuable defence against unforeseen life catastrophes or unexpected events [5]. Unexpected or unpleasant occurrences can strike anytime, leaving families with unplanned costs ranging from minor auto repair to major surgery. A prudent family will have an emergency fund ready to cover any sudden costs, rather than having to dip into other funds or postpone other responsibilities. The rise of the COVID-19 pandemic has caused economic repercussions. In the context of the ongoing COVID-19 pandemic and the booming of the digital economy, digital financial literacy is critical [5]. Many people and families are facing higherthan-normal levels of economic uncertainty. They may be unemployed or face unexpected medical expenses. Having a clear financial strategy, including emergency funds, is more important than ever. Furthermore, DFL helps to avoid financial scams and schemes. Those without a solid grasp of finances are an easy target for fraudsters and con artists, who may try to persuade them to make risky investments or purchase high-interest credit cards. It is critical to comprehend DFL among young people to build effective financial education programmes. As a result, it is important to study and identify strategies to increase DFL skills, particularly among university students. In a previous observation of the analysis of personal financial literacy amongst students, Chen and Volpe [6] concluded that students are lacking in personal finance knowledge. A number of studies have been conducted exclusively for university and college students and highlighted the low level of financial literacy, and research shows that people with higher education levels have higher levels of financial literacy [7–9].
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Therefore, it is necessary to investigate the factors within the DFL domain that influence buying behaviour during the pandemic COVID-19 crisis, focusing on a few factors, which are financial education, digital and financial socialisation, financial attitude and financial knowledge among university students. Thus, this study was conducted with the focus on the students at Universiti Malaysia Kelantan, one of the public universities in Malaysia, as the respondents to examine the influence of digital financial literacy factors towards positive online buying behaviours during the COVID-19 pandemic.
2 Literature Review 2.1 Digital Financial Literacy Researchers are currently debating the idea and meaning of financial literacy. Lyons and Kass-Hanna [10] argued that there is still no widely accepted definition for financial literacy. For example, according to Kirsch [11], literacy is a combination of skills, knowledge and techniques gained throughout one’s life in various circumstances and through engagement with peers and communities rather than just a capability formed during years of education. Mason and Wilson [12] provided another perspective, where they define financial literacy as the ability to gather, understand and analyse the data needed to make decisions while being conscious of the potential financial implications. Similar to financial literacy, the definition of digital financial literacy is still debated. Furthermore, Azeez and Akhtar [13] highlighted that there is no established definition of digital financial literacy. Therefore, as suggested by Lyons and Kass-Hanna [10], digital financial literacy can be defined by taking a combination of various elements of digital literacy and financial literacy. This study, in particular, took the three elements of digital financial literacy: financial education, digital financial socialisation and financial attitude.
2.2 Financial Education Financial education has attracted the attention of economic policymakers, practitioners and scholars in recent decades. Many studies have found that those with greater education levels, particularly those with a university or college diploma, are more financially aware [4, 14]. Lusardi and Mitchell [1] further added that there is a limited evidence that financial education is reliable. Subsequently, further examination is expected to fill the gap in the current writing. Raising financial literacy and fostering desirable financial habits through financial education is thought to improve financial capability of students. Many countries have successfully focused on increasing financial literacy among their citizens and
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are doing so by promoting financial education [15]. According to the theory of life cycle saving, students decide to seek financial education based on their own cost– benefit calculations of how it will enhance their later life outcomes [1]. Financial literacy through financial education is no longer a negotiable skill today. This is because financially literate people would be able to comprehend economic facts and decide wisely regarding financial planning, capital creation, debt and pensions [1]. Therefore, this study hypothesises that: H1: There is a significant positive relationship between financial education and online buying behaviours among students.
2.3 Digital and Financial Socialisation Digital and financial socialisation have been discussed extensively. Financial socialisation, according to Danes [16], involves gaining values, attitudes, standards, norms, information and behaviours that support one’s future financial security and financial success. This process is much more inclusive than learning to perform successfully in the market. What children learn about money from their parents will be linked to those children’s financial well-being in the present and the future. This is the central assumption of the theory put forth by Gudmunson and Danes [17]. Recent empirical evidence is provided by Vosylis and Erentait˙e [18], who showed that more favourable outcomes, such as better spending self-control, less impulsive buying and lower financial anxiety, are connected with teaching children about money management and being honest about family finances. Family is the major source of socialisation for their children, including digital and financial socialisation [19–21]. In the context of teaching, reinforcement and purposeful modelling, parents always influence their children overtly and cognitively. Families, especially parents, strongly influence a person’s financial behaviour and literacy. Children will inherently reflect their parents’ level of financial education, and they will try to imitate such behaviour. Drever et al. [22] provided an in-depth review and draw the conclusion that most children and young people are constantly apprenticing or gaining the skills, information and attitudes that will be crucial to their own future financial success. However, it should also be noted that digital and financial socialisation also occurs throughout life [16]. Therefore, this study hypothesises that: H2: Digital and financial socialisation positively influence online buying behaviours among students.
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2.4 Financial Attitude One individual’s proclivity or disinclination to deal actively with financial matters is an example of a financial attitude. Being financially responsible, including planning and maintaining a savings account, is crucial. According to Bhushan and Medury [15], if we want to increase the financial literacy of future generations, we must first work to change people’s attitudes towards money. This is important to make sure that any financial education programme produces the intended outcomes. According to Rai et al. [23], financial attitude can be referred to as one’s disposition towards financial matters. It is the capacity to make financial plans for the future. According to Ajzen’s theory of planned behaviour [24], attitude influences behaviour through a process of conscious deliberation and evaluation. Whether or not individuals perform an action involving financial matters such as controlling spending, paying bills on time or making financial plans for the future largely depends on their attitude. Aside from judgement, attitude can also refer to both positive and negative feelings about objects, people and events. Individuals’ financial behaviour or attitude will aid them in deciding their attitude and behaviour in financial matters such as financial literacy, personal financial budgeting or how they make individual decisions on the type of investment to be made. According to some research examining the relationship between financial attitude and financial literacy, a financial or money attitude influences human behaviour [25– 27]. Spinella et al. [25] showed that behaviours and attitudes related to personal finances were strongly correlated with compulsive buying. Another study by Aw et al. [26] also demonstrated that attitudes affected buying behaviours. They observed that people with a less responsible spending attitude are more likely to be involved in compulsive buying behaviour. Similarly, Talwar et al. [27] provided further support that financial attitude positively influenced the trading activity or behaviour of retail investors. Therefore, this study hypothesised that: H3: There is a significant positive relationship between financial attitude and online buying behaviours among students.
3 Methodology 3.1 Research Design and Conceptual Framework The focus of this study was to examine the relationships between financial education (FinEdu), digital and financial socialisation (DFinSoc) and financial attitude (FinAtt) with positive online buying behaviours, as shown in Fig. 1. The primary data were obtained using a survey questionnaire to obtain relevant data. This was because the secondary data were not employed in this investigation. This was a quantitative study in which the questionnaire was disseminated to the
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Digital Financial Literacy
FinEdu
DFinSoc
Buying Behaviour
FinAtt Fig. 1 Conceptual framework
respondents via social media platforms and administered electronically via Google Forms.
3.2 Sampling Technique and Sample Size This data collection method group comprised all students at the Universiti Malaysia Kelantan. The data were gathered using a survey method involving self-administered questionnaires. Due to time restrictions as well as other factors, the sample size for the survey was allocated to 152 respondents for whom non-probability facility sampling was employed, which involved picking the simplest and quickest random sampling unit acquired for the research sample.
3.3 Instrumentation The questionnaire was divided into two sections. Six demographic questions were included in Section A, in which the background information of the students were collected, namely their gender, age, ethnicity, income, academic programme and marital status. Section B contained the dependent variable, which was the online buying behaviours among students at Universiti Malaysia Kelantan, while the questions from Sections C, D and E included the independent variables, namely the financial education (Section C), digital and financial socialisation (Section D) and financial attitude (Section E). The perceptual measures that were rated with a 5-point of Likert scale were used in this study [28]. The Likert scale questions requested the respondents to identify the appropriate response on a 5-point Likert scale. The questionnaires were distributed online using the Internet-mediated surveys. The questions were published using Google Forms, and the link was spread via social media platforms. As a result, approximately 152 questionnaires were collected.
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3.4 Reliability, Validity and Data Analysis Reliability analysis using Cronbach’s alpha was used in this study to determine the acceptance and validity of the questionnaire. The acceptable reliability value was above 0.6. The dependent variable had a Cronbach’s alpha of 0.690, and the six items of the financial education and financial attitude had Cronbach’s alphas of 0.761 and 0.816, respectively. Cronbach’s alpha coefficients for five items of digital and financial socialisation were 0.780 and 0.705, respectively, and the result of Cronbach’s alpha coefficients for five items of the dependent variable was 0.724. Overall, all the data from the questionnaire were reliable and valid. Correlation analysis was used to establish a link between the variables.
4 Findings This study discussed the digital financial literacy variables that influenced positive online buying behaviours among university students. The respondents were selected among students in Universiti Malaysia Kelantan based on convenience sampling. The current study focused primarily on three factors: financial education, digital and financial socialisation and financial attitude. The variables were then tested with the Pearson correlation coefficient to test the significance and relationship of the independent variables with online buying behaviours. Table 1 shows the correlations between the independent variables and the dependent variable. Pearson’s bivariate correlation revealed that the DFL factors were associated with positive online buying behaviours. Financial education had the strongest positive relationship with the dependent variable (r = 0.780). This was a substantial positive correlation, indicating a strong association between financial education and positive online buying behaviours. The students’ positive online buying behaviours significantly increased when their financial education increased. The results also showed that digital and financial socialisation had a strong positive relationship (r = 0.637) with positive online buying behaviours. Similar to financial education, financial attitude also showed a strong positive relationship with positive online buying behaviours (r = 0.740). At the 0.01 level, all of the correlation coefficients were statistically significant. This signified that the probability of a random occurrence was extremely low in this case.
5 Conclusion and Recommendation This study aimed to examine the digital financial literacy factors that influenced the students’ positive online buying behaviours in Universiti Malaysia Kelantan during the COVID-19 pandemic. The study’s findings revealed that all the expected
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Table 1 Pearson correlation coefficient Buying behaviour
FinEdu
DFinSoc
FinAtt
Buying behaviour
1
0.781**
0.637**
0.740**
Financial education
0.781**
1
0.685**
0.710**
Digital & financial socialisation
0.637**
0.685**
1
0.678**
Financial attitude
0.740**
0.710**
0.678**
1
** Correlation is significant at the 0.01 level (2-tailed)
factors namely financial education, financial socialisation and financial attitude strongly influenced the online positive buying behaviours of the students of Universiti Malaysia Kelantan. This was because the students had a significant level of financial education, digital and financial socialisation and financial attitude, leading to increased positive online buying behaviours. In reality, the university must also play a significant role in improving the financial condition and in providing economic support. The study’s findings showed that students of Universiti Malaysia Kelantan were proficient in financial matters. It may be deduced that the students had a good understanding of digital financial literacy. However, this study found that during the COVID-19 pandemic, all variables had a strong positive significant link with positive online buying behaviours among Universiti Malaysia Kelantan students. Moreover, the majority of the students were from the family of lower income group (B40), which could also explain the reason they were careful in their spending behaviours. Further research needs to explore this to provide an overall picture of the students’ buying behaviours.
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Entrepreneurship Education Through Three-Dimensional Virtual Reality Technology in Learning Siti Hazyanti Mohd Hashim, Nurul Farhana Nasir, and See Tao Hoong Jyn
Abstract Virtual reality can enhance learning processes. The purpose of this article was to introduce college students to the development of three-dimensional virtual reality applications. The methodology used was the investigation phase, implementation phase, testing phase, and evaluation phase. The current research found that 86 per cent of students believed that applications for virtual reality were successful. In addition, post-test results indicate improved student learning outcomes. According to the current research, the implementation of virtual reality in the learning process depends on students’ user experience. Keywords Virtual reality · Entrepreneurship education · Teaching and learning
1 Introduction 1.1 Entrepreneurship Education Using Technology The education system and technology have affected people’s lives, working practises, attitudes, and professions by providing basic practical skills to develop humanity among people in local, national, and global societies [1]. Therefore, effective transfer of knowledge is needed to nurture a learning culture [2]. The right kind of formal online education must be made available in the educational system and educators must acquire adequate training in their professional areas. Recently, several educational policies have been introduced to improve education, particularly students’ learning and development [3]. By introducing innovation that S. H. Mohd Hashim (B) Department of Computing and Information Technology, Tunku Abdul Rahman University College, Kampar, Perak, Malaysia e-mail: [email protected] N. F. Nasir · S. T. H. Jyn Department of Accountancy and Business, Tunku Abdul Rahman University College, Kampar, Perak, Malaysia © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_58
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aims for efficiency and effectiveness, the rapid growth of technology and information in many areas of life, including entrepreneurship education, bridges the present and the future [4]. For example, higher education has a role in developing entrepreneurship education to increase student interest in entrepreneurship [5]. The advantage of information and communication technology includes speed to obtain information and facilitate learning to be more attractive, visual, and interactive [6]. Students can improve their thinking skills and gain broader and more in-depth insights [7]. One way to create new entrepreneurs is to motivate students through entrepreneurship education [8]. Therefore, it is urgent to guide college students to adhere to the ideal of innovation and entrepreneurship to cultivate the spirit of innovation and entrepreneurship as well as the morality of innovation and entrepreneurship.
2 Entrepreneurship Education and Virtual Reality These days institutes aim to serve society through education by teaching, research, and business technology to contribute to economic growth by establishing enterprises among students and educators [9]. One programme to enhance skills and competencies with significant consequences is entrepreneurship and enterprising education [10]. Technology in education is a theory-based curriculum where students integrate learning with computer hardware and software, creating a setting that helps close the skills gap between students studying science and business and those needed by workers in the twenty-first century. For example, due to the rapid advancement of information technology, including multimedia, virtual reality, and network communication technology, virtual simulation technology is the result of integrating simulation technology and virtual reality technology [12] as virtual reality (VR) technology helps students in business, science, and technology schools to understand enterprise [11]. Educators have alternatives because of the growing use of technology in education. They are also exposed to training in many different fields [13]. Nevertheless, virtual technology as a teaching platform in higher education is still in its infancy. Using 3D models and interactive 360° images, technology enables immersive learning in settings that are typically inaccessible to students on a physical level [14]. When used for training, VR technology can improve learning outcomes and decrease error rates while also saving time and money. Because of its immersive, imaginative, and interactive qualities, VR is increasingly common in education [15]. Immersion and presence can be regarded as two essential VR notions [15]. VR can also help develop manual skills and enhance spatial awareness of complicated items [16]. Numerous effects of VR on student performance and learning outcomes have been identified. However, this depends on how VR programmes are created and delivered [16].
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3 Methodology The research method consisted of four methodological phases (see Fig. 1). They are theoretical investigation phase, the implementation phase, the testing phase, and the evaluation phase.
3.1 Theoretical Investigation Phase In the theoretical investigation phase, a literature review was done to research the problem and develop a proposed solution. The main priority of the literature review is to find out previous research on VR in learning and entrepreneurship. The keyword used to search were ‘learning using virtual reality’, ‘entrepreneurship education’, ‘the benefit of using three-dimensional virtual reality in learning’, and ‘previous virtual reality applications for learning’.
3.2 Implementation Phase Phase two consisted of two sections which were learning design and VR development used for learning. In the learning design section, a flowchart was designed (see Fig. 2). Phase Phase 1 Phase 2 Phase 3 Phase 4
Fig. 1 The methodology phase
Research Activities
Theoretical investigation Implementation Testing
Evaluation
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Start
Play 3D virtual reality application
Record the feedback
End
Fig. 2 Flowchart of the VR application
3.3 Testing Phase In the testing phase, two activities were carried out which were selecting participants and the testing process of the VR application. The participant were students from Tunku Abdul Rahman University College Perak. Based on the binomial probability formula, six students were needed to use a VR application in their learning class. This experiment was a quasi-experimental design. During the testing process, five steps were followed. The first step was the setup of the VR room. Step two was the agreement with consent and photographic form. Step three included the use of a VR application. This was followed by step four which was the pre-test and post-test assessments. Finally, the fifth step was to answer a post-exposure questionnaire. During this phase, participants wore the oculus of VR to experience a three-dimensional learning environment (see Fig. 3).
3.4 Evaluation Phase After using the VR application, participants answered the post-exposure and usability test questionnaire. All the data were collected. The results were expressed in frequency and percentage. For the evaluation phase, there were six participants (refer to Fig. 4). For pre-assessment, students’ learning scores without using a VR application were recorded. After that, students used a VR application and relearned the same topic of business education. The differences between the pre-and post-assessment scores were analysed. The score intervals for the two tests were according to Table 1.
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Fig. 3 HTC vive oculus
Number of participants (n = 6)
Pre- test 1) Score of learning
Using 3D VR application
Post- test 2) Score of learning
Fig. 4 Evaluation process: pre-and post-assessment Table 1 Score interval
Scores
Criteria for interpretation
80–100
Excellent
66–79
Good
55–65
Fair
40–55
Poor
0–39
Very poor
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Fig. 5 The simulation of the VR application in entrepreneurship education
4 Result and Discussion 4.1 Design of Virtual Reality Application for Entrepreneur Education To develop a VR application, the software used was Unity 3D. The software languages were C++ and C. Figure 5 displays the environment that students experienced when using HTC vive oculus of VR application during their learning. From the environment, students were able to interact with the three-dimensional environment as they were required to virtually walk around the environment. The design was a business simulation for entrepreneurship learning. It was a computer-based learning simulation that involved players in realistic activities to acquire knowledge, improve negotiation skills, and promote good learning outcomes.
4.2 Usability Testing A test on the usability of the VR device was conducted to test whether it is suitable to be used in entrepreneurship education. It was tested on three male and three female
Entrepreneurship Education Through Three-Dimensional Virtual … Table 2 Participant’s personal information
Number
Percentage (%)
Male
3
50
Female
3
50
Participants Gender Age
685
21
2
33.33
22
2
33.33
23
2
33.33
Table 3 Result of pre- and post-assessments Categories
Pre-test Frequency
80–100
Excellent
0
Post-test Percentage (%) 0
Frequency
Percentage (%)
15
30
66–79
Good
5
10
25
50
55–65
Fair
20
40
10
20
40–55
Poor
15
30
0
0
0–39
Very poor
10
20
0
0
students of Tunku Abdul Rahman University College, Perak, aged between 21 and 23 years old. Table 2 displays the student’s personal information. After conducting the survey to see the effectiveness of using a three-dimensional VR application, pre- and post-assessments related to entrepreneurship education were conducted. The tests were related to entrepreneurship and entrepreneurial characteristics. Table 3 shows the results of the pre- and post-assessments. Based on the result, the three-dimensional VR application improved the outcomes of student learning. Therefore, the use of VR applications can increase motivation to learn entrepreneurship education. From the usability questionnaire result, students were confident to use VR as their learning tool. Although it was awkward to wear the HTC vive, all students interacted with the VR environment (see Fig. 6). When using the VR tool in learning, the result showed that only a student experienced difficulty, while the rest was good and felt easy (refer to Fig. 7). Figure 8 displays the rating of user-friendliness when using VR as a learning tool. A total of 50% rated ‘excellent’, 16.7% rated ‘best imaginable’, and 33.3% rated ‘good’.
4.3 Discussion According to the findings of the student feedback on their demands during their entrepreneurship education learning process, it was found that the diffusion theory of innovation has an impact on the reinvention of valuable learning. A total of 86% of
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Fig. 6 Interaction with the VR environment
Fig. 7 Feeling easy while using VR tools
Fig. 8 The rating for the user-friendliness of VR technology
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students rated the use of three-dimensional VR applications favourably. The effectiveness of VR technology as a tool in entrepreneurship education was shown by its user-friendliness rating. Students also viewed VR applications as the most exciting and easy to interact with. These results demonstrate that VR technology can boost student motivation to study by giving them contextual information about their learning environment. Our findings demonstrate that VR adds excitement and fun to educational sessions. On the other hand, VR can enhance the outcomes of student learning. In addition, the components of business simulation in this study allow for the uniqueness of VR to be seen. These elements affect how students emotionally adopt VR, indicating the impact of VR on students’ capacity for learning.
5 Conclusion The application of virtual reality technology in different industries will continue to advance. The results show that virtual reality could increase the effectiveness of a learning process. The findings of this study inform future researchers that virtual reality is an intriguing tool that can be used in teaching entrepreneurship.
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10. S. Debarliev, A. Janeska-Iliev, O. Stripeikis, and B. Zupan, “What can education bring to entrepreneurship? Formal versus non-formal education,” https://doi.org/10.1080/00472778. 2019.1700691, vol. 60, no. 1, pp. 219–252, 2020. 11. A. Al-Gindy, N. Yasin, M. Aerabe, and A. A.-C. Omar, “Integrating Digital Technology in Enterprise and Entrepreneurship Education,” Technol. Entrep. Educ., pp. 53–75, 2022. 12. Y. Wang, “Optimizing the Cultivation Path of College Students’ Innovation and Entrepreneurship Ability from the Perspective of the Internet,” Wirel. Commun. Mob. Comput., vol. 2022, 2022. 13. S. G. Fussell and D. Truong, “Using virtual reality for dynamic learning: an extended technology acceptance model,” Virtual Real., vol. 26, no. 1, pp. 249–267, Mar. 2022. 14. B. Marks and J. Thomas, “Adoption of virtual reality technology in higher education: An evaluation of five teaching semesters in a purpose-designed laboratory,” Educ. Inf. Technol., vol. 27, no. 1, pp. 1287–1305, Jan. 2022. 15. R. Villena-Taranilla, S. Tirado-Olivares, R. Cózar-Gutiérrez, and J. A. González- Calero, “Effects of virtual reality on learning outcomes in K-6 education: A meta-analysis,” Educ. Res. Rev., vol. 35, p. 100434, Feb. 2022. 16. C. P. Fabris, J. A. Rathner, A. Y. Fong, and C. P. Sevigny, “Virtual Reality in Higher Education,” Int. J. Innov. Sci. Math. Educ., vol. 27, no. 8, pp. 69–80, Oct. 2019.
Awareness of Islamic Financial Planning Among Science and Technology Students in Higher Learning Institutions Mohd Zulkifli Muhammad , Siti Nurzahira Che Tahrim, Tahirah Abdullah , Zul Karami Che Musa , Hanudin Amin , Mohd Nor Hakimin Yusoff , and Md Zaki Muhamad Hasan
Abstract Muslims are encouraged to plan their economic and financial affairs to attain the maqasid Shariah aims, which leads to al-Falah. Islamic financial planning is one of the methods for achieving this purpose. This research examined the awareness and comprehension of Islamic financial planning among Science and Technology students in higher learning institutions. It employed a qualitative approach via in-depth interviews and ATLAS.ti was used to analyse the data. Four themes emerged from the data: the concept and knowledge of Islamic financial planning, Islamic financial literacy, and awareness of Islamic financial planning. The findings revealed that most Science and Technology students recognise and employ the values of Islamic financial planning; however, some do not practice it due to a lack of exposure. This study provides valuable insights for future research on Islamic financial planning. Consequently, it aims to educate Muslims and encourages policymakers to acknowledge the necessity for Islamic financial planning, particularly among university students. Keywords Islamic financial planning · Understanding · Awareness · Knowledge · Science and technology students
M. Z. Muhammad (B) · S. N. Che Tahrim · T. Abdullah · Z. K. Che Musa · M. N. H. Yusoff · M. Z. Muhamad Hasan Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, City Campus, 16100 Kota Bharu, Kelantan, Malaysia e-mail: [email protected] H. Amin Labuan Faculty of International Finance, Universiti Malaysia Sabah, Labuan International Campus, Jalan Sungai Pagar, 87000 Federal Territory of Labuan, Malaysia © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_59
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1 Introduction Financial planning is crucial in a world where individual financial responsibility has increased and the market is saturated with various financial goods. The current global financial scenario necessitates one’s capability to comprehend fundamental economic concepts and manage day-to-day financial transactions. From a religious perspective, Islamic financial planning is as essential to a Muslim’s lifestyle as it is to the religion itself [29]. Aside from an awareness of the Islamic approach to economic life, the knowledge of financial concepts and risks as well as the motivation and selfassurance to apply such information can increase the likelihood of making a wise decision. Many believe that Muslims must endeavour to comprehend Islamic finance since it is a religious obligation and continuation of the conventional financial system is undoubtedly a sin [4, 25, 34]. Typically, university students have limited financial planning expertise and information. The majority of them are prudent with their spending as it is often limited to a certain budget [12]. The lack of information in financial planning may result in perilous circumstances among university students; therefore, financial education is essential to improve their budgeting skills [3]. Thus, the objective of this study is to determine the level of awareness and comprehension of Islamic financial planning among university students by focusing specifically on the Science and Technology students enrolled in Universiti Malaysia Kelantan. Such focus is deemed essential as the market for Islamic financial planning is enormous among university students, as evidenced by the rising number of enrolments in higher education institutions and the increasing expenses associated with attending university. This article begins with an introduction to the research before proceeding with a thorough review of existing literature related to the topic under investigation. It is followed by a discussion on the research framework and research methodology. Finally, Sect. 4 will present the results followed by a discussion of the findings in Sect. 5.
2 Literature Review 2.1 Concept of Islamic Financial Planning Islamic financial planning is a newly developed concept that relates to the conception, development, and delivery of customer-satisfying and competitive products and services at a profit to an organisation and its consumers according to Islamic principles and values [18, 19, 29]. It is defined as the process through which a person’s personal and financial objectives are attained by preparing and implementing a comprehensive financial plan. The notion articulated by Abdullah et al. [3] indicates that Islam is a complete and holistic religion that rules all personal, social,
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spiritual, and material elements in life and connects this worldly life to the afterlife [27]. According to Ahmad et al. [4], Islamic financial planning is a holistic process aiming to help individuals achieve their goals by acquiring, preserving, and distributing money following Islamic principles and values. As the Islamic financial sector expands, the concept of Islamic financial planning continues to develop with the introduction of private banking facilities and wealth management divisions in Islamic financial institutions [18].
2.2 Knowledge of Islamic Financial Planning Most individuals have a lack of knowledge about Islamic financial planning and cannot differentiate between Islamic and conventional financial planning, which is one of the numerous knowledge-related problems [6, 26]. Establishing financial education programmes as early as the primary school could offer youngsters with valuable insight and the opportunity to develop financial knowledge and abilities. The majority of previous research indicated that influential organisations, such as schools, families, and financial institutions, must take measures to promote financial literacy among pupils at an early age [34]. Financial information dramatically influences the economic decisions of others; hence, all stakeholders must contribute to the delivery of financial knowledge programmes. The outcome will encourage saving, knowing the level of risk, and determining the best strategy for utilising all assets after retirement [17].
2.3 Islamic Financial Literacy According to Albaity and Rahman [5] and Dinc et al. [15], financial literacy is a set of abilities and knowledge that enables individuals to make sound decisions regarding their financial resources. Many believe that students are impacted in various ways by their knowledge and comprehension of management, and that they must master money management skills such as sticking to a budget and controlling credit and debts. Past studies have reported the impact of variables such as financial knowledge, financial education, and financial decision on many facets of financial literacy [2, 14, 28]. Meanwhile, other studies have analysed the relevant aspects of financial literacy differently. It was reported that factors such as parental knowledge, pocket money, and education level impart a significant impact toward students’ financial literacy. Whereas, elements such as gender, age, and marital status have no bearing on the topic [9].
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2.4 Awareness of Islamic Financial Literacy The fields of consumer behaviour, motivation, and psychology are prominent to the body of knowledge regarding financial awareness [32]. Demographic factors such as age, gender, and degree of education have been reported to influence the financial literacy of the general population. Youths’ lack of awareness regarding financial planning concepts and solutions is indeed a disturbing trend in the present day. According to Biplob and Abdullah [9] and Kozup and Hogarth [21], young people must be supported from an early age through education policy and public media and advisory services to cultivate good personal finance knowledge and awareness. Researchers like Albaity and Rahman [5], Biplob and Abdullah [9], Dewi and Ferdian [14], and Dinc et al. [15] concur that students must be exposed to financial planning early in their education and life. This safely leads to a conclusion that Islamic financial planning education among students and young adults is vital at an early age.
2.5 Research Framework The following frameworks illustrate how the four issues converged to form the main topic regarding Islamic financial planning among Science and Technology students (Fig. 1).
3 Methodology 3.1 Research Design The present study employed an interview-based qualitative methodology. This type of research design describes an exploratory investigation to discover anything new or to clarify ambiguous problems in a specific circumstance, which explains why a particular subject of interest has not been researched in further detail [30]. It also helps to develop a more precisely defined or reformulated problem and propose a well-supported hypothesis [8]. In addition, this study also involved a descriptive investigation to describe a phenomenon, such as a present condition or a group’s characteristic within an organisation, by addressing the questions of which, what, where, when, and how. It serves a descriptive purpose that allows researchers to investigate why the observations exist and its implications [24]. The focus of this study was Muslim Science and Technology students from Universiti Malaysia Kelantan as they are more exposed to the current trends in technology, including the technology associated with banking and finance. The researchers also believe that young people who learn how to arrange their finances properly have a better chance of avoiding financial difficulties.
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Fig. 1 Research framework
3.2 Data Collection Method Primary Data Primary data refers to the original data that is acquired directly from the main source of information to serve a specific purpose [36]. The primary data of this study was collected through a survey and personal interview. Personal interview, also known as face-to-face survey, is commonly used when a study involved a specified target demographic. The objective of a personal interview survey is to gather responses from the research informants in order to acquire a more precise data [13]. It was used in this study to obtain additional knowledge from the informants as it allowed them to share their experiences regarding the topic. Secondary Data This study also involved the use of two types of secondary data, namely main resources and general resources. Among the main resources were the Quran, tafsir, Hadith, and syarah Hadith. The researchers had selected several Hadiths believed to be a legitimate hujjah for the topic under investigation by browsing through six renowned Hadith volumes (Sunan Sittah), namely Sahih Bukhari, Sahih Muslim, Sunan Abi Da’ud, Sunan al-Tirmidzi, Sunan al-Sughra (al-Nasa’i), and Sunan Ibn
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Majah. Additionally, Tafsir Ibn Kathir and Tafsir Al-Azhar were also considered as well-known secondary data sources. On the other hand, the general resources were journals, theses, books, monologues, newspapers, and websites. According to Basias and Pollalis [8], secondary data can be either internal or external to an organisation, and it can be accessed through the internet or by reading recorded or published materials. Also, secondary data that are available from public sources are easier to get. Researchers could also compare the information to what they already know [11].
3.3 Data Analysis Method The qualitative data required for this study was gathered through an interview. It was then analysed using content analysis and interviews via the ATLAS.ti Version 9 software, which is one of the powerful software commonly used for qualitative analysis. Content Analysis According to Kleinheksel et al. [20], content analysis allows researchers to investigate social communication artefacts that typically involve written documents or recorded transcripts of verbal dialogues. Mayring [22] defined content analysis as a technique for concluding by carefully and objectively analysing the distinctive characteristics of messages. In this perspective, any materials like photos or videotapes that can be transformed into text are amenable to content analysis. The objective analysis of messages can be performed using explicit rules known as selection criteria, which must be explicitly set prior to the actual data analysis [35]. Such technique can be done by methodically assigning codes in the form of numbers or words to particular textual characteristics. Researchers may already have a list of categories or read each transcript, allowing the categories to emerge from the data [10]. Meanwhile, interviews are believed to be an effective qualitative technique for discovering individuals’ perspectives by eliciting their personal feelings, opinions, and experiences. It was used in this study to learn how university students interpret the concept of Islamic financial planning. All interview sessions were recorded with the informants’ consent before it was transcribed and coded to identify any emerging themes [13]. In this study, in-depth interviews were conducted with six informants who were Science and Technology students enrolled in Universiti Malaysia Kelantan. This method allowed the informants to express their views on why Islamic financial planning knowledge is essential for them, subsequently providing an insight into their level of comprehension and awareness toward Islamic financial planning. The ATLAS.ti Version 9 software was used to analyse the data as it is proven to facilitate and ease the process of analysing data systematically. It is also capable of analysing a large amount of data while reducing the chance for errors. Additionally, the software
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allows for various media and results to be structured, searched, copied, pasted and merged rapidly; enabling researchers to be creative [16].
4 Findings and Discussion Figure 2 illustrates the ATLAS.ti network view of Islamic financial planning that was generated based on the interview responses involving six Science and Technology students enrolled in Universiti Malaysia Kelantan. This study had examined a total of three factors, namely Awareness of IFP, Understanding of IFP, and Knowledge of IFP. As shown in Fig. 2, there is a straight line connecting these factors, which signifies their close relationships. Meanwhile, the break lines indicate the significance of a weak link between the factors.
4.1 Awareness Our results indicate a high level of awareness and understanding toward Islamic financial planning among the Science and Technology students. This is evidenced by the fact that five out of six informants possessed the knowledge of Islamic financial planning. However, one informant was aware of Islamic financial planning but did not practice it. An identical response was given by four informants, stating that they were aware of Islamic financial planning in their lives. Nonetheless, Informant Two was not fully exposed to Islamic financial planning since the notion has not been commercialised promptly, thus preventing people from receiving adequate exposure to Islamic financial planning. Saputra and Rahmatia [33] and Ab Rahman et al. [1] stated that students should be exposed to financial planning early in their education and life as it will reduce their chance of succumbing to debts, bankruptcy, and the lack of retirement planning skills.
4.2 Understanding Based on their understanding of Islamic financial planning, Informants 1, 3, 4, and 6 described the scope of Islamic financial planning to include cash flow distribution, risk mitigation planning, Takaful, performing Hajj, and zakat responsibility. Meanwhile, Informant 2 had a limited grasp of Islamic financial planning. Hence, it can be concluded that the degree of Islamic financial planning knowledge among Science and Technology students is vital, given that Islamic financial planning knowledge is essential for setting financial goals, knowing one’s financial capacity, and differentiating between requirements and wants [33]. Furthermore, it is safe to conclude that all informants comprehended the significance of Islamic financial planning in everyday
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Fig. 2 Network view of Islamic financial planning
life. Md. Sapir @ Md. Shafik and Wan Ahmad [23] and Nga et al. [31] suggested that students’ financial literacy practices can enhance their comprehension of financial planning. All informants also agreed that Islamic financial planning is essential for the community and described it as a mean to safeguard their wealth. They were also aware that Muslims must organise their lives, including wealth management, according to Shariah principles as it will have repercussions not only in this world but also in the afterlife. Thus, the findings of this study have addressed the second research objective [23].
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4.3 Knowledge Our results further demonstrate that most informants are knowledgeable about Islamic financial planning while only a minority have a limited understanding. During the interview, the researcher inquired about the informants’ understanding of Islamic financial planning. This is because this research aims to determine whether the informants comprehend and are aware of Islamic financial planning. According to Basah and Tahir [7], it is a religious obligation for Muslims to manage their wealth following Shariah law. This argument is supported by the understanding that Islamic financial planning is a prerequisite to fulfil this religious obligation. If Muslims continue to consume conventional financial products without regard for the prohibitions on riba’, gharar, and maisir, then the Islamic financial system will never be developed. Furthermore, maintaining the conventional financial system is deemed a sin by many Muslims [6]. As a result, the acquisition of knowledge related to Islamic financial planning can assist the informants in achieving their financial goals and objectives through Shariah-compliant investments, tax and zakat planning, asset allocation, risk management, retirement, and estate planning. In addition, this study offers several findings that are lacking in previous research. Md. Sapir @ Md. Shafik and Wan Ahmad [23] posit on the necessity to provide students with greater practical exposure to financial planning at earlier stages of education and life; however, the concept itself has not been commercialised fairly recently because people could not receive adequate exposure to Islamic financial planning. The scope of Islamic financial planning, which includes cash flow distribution, risk management, network, Hajj, zakat obligation, retirement plan, and estate management, is one of the main findings in this study that has not been reported in previous studies [15, 18, 19].
5 Conclusion This study explored the awareness and comprehension of Islamic financial planning among Science and Technology students and determined whether they utilise Islamic financial planning in their daily life. The findings are believed to have successfully addressed the research questions and objectives. It is hoped that this study can shed some theoretical and practical insights on the topic of Islamic financial planning while serving as an aid for individuals, especially university students, in managing their finances in accordance with Islamic principles. Acknowledgements The authors also would like to thank the students, namely Nur Suhaida Bakar, Nur Syafiqah Asmarani, Nur Syamilah Idris, and Nur Syamimi Maamor for their tremendous assistance in completing this research.
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Technology Entrepreneurship and Commercialisation of Computing Artefacts in University Incubator Programme Tamrin Amboala, Mohd Zulkifli Muhammad , Haneffa Muchlis Gazali, Esmadi Abu Seman, Mohd Rushdan Yasoa’, and Soffri Yussof
Abstract There is a universal agreement that prototypes and products that start as research artefacts and end up on the market should be supported. However, the method and process for transferring academic computing research from universities to the industry are still determined since the success of the commercialisation of computerrelated research outcomes is disputed. This study investigated the commercialisation mechanism and processes for computing artefacts and products from universities to the market. The investigation was conducted in selected university incubations as case studies involving academics and key stakeholders. To explore the chosen examples in the university technology commercialisation projects, resource-based perspectives and capacities were utilised. Keywords Computing artefacts · Incubation programme · Resource-based perspective and capabilities · Technological entrepreneurship · Valley of death
1 Introduction Entrepreneurs are identified as individuals who seek to create wealth by creating services and products by associating all activities using resources that include capital, labour, and land [1] and, recently, from knowledge and technology [2]. T. Amboala · E. Abu Seman · S. Yussof Faculty of Computing and Informatics, Universiti Malaysia Sabah Labuan International Campus, Jalan Sungai Pagar, 87000 Federal Territory of Labuan, Malaysia M. Z. Muhammad (B) · M. R. Yasoa’ Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, City Campus, 16100 Kota Bharu, Kelantan, Malaysia e-mail: [email protected] H. M. Gazali Labuan Faculty of International Finance, Universiti Malaysia Sabah Labuan International Campus, Jalan Sungai Pagar, 87000 Federal Territory of Labuan, Malaysia © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_60
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There is evidence that the entrepreneurial quality of academics drives the research commercialisation of Higher Education’s (HE) Intellectual Property (IP) [3]. Entrepreneurs’ abilities to venture risks and exploit available but scarce resources are common characteristics. The characteristics of academic entrepreneurs do matter; these include high determination, moderate creativity, and independence [4, 5]. The reward for risk-taking definition can be traced way back to the twentieth-century Risk Theory [6]. This article highlights how academics with scientific knowledge and entrepreneurial and risk-taking capabilities successfully drive commercialisation. A selected case study in both Australian and Israelian universities conclude that the market players, funding agencies, and academics serve as the bearer of technological knowledge and thus they play important roles [7]. Three and eight incubators in Australia and Israel were investigated, respectively. Not only inefficient and ineffective commercialisation programme does not contribute to university technology transfer, worse, it uses up resources as well [8]. In fact, 75% of inventions and patents from universities, according to Markman et al. [2], are not licensed at all. These institutions face hurdles as the commercialisation process struggles and are complicated by problems in translating the research. Extensive research is required to shed light on academic entrepreneurial challenges, such as the ability to implement inventions beyond prototyping. According to survey research [9] undertaken in Europe, patent filings are not particularly profitable. Even though a small percentage of patent cases produce significant profits, most patents, on the other hand, lack the maturity necessary for commercialisation. The patents’ immaturities are prevalent in all discipline fields. As a result, scientific findings fall short of public and business expectations.
1.1 Resource-Based Theory and Capabilities in University Incubators Resources are essential for promoting the commercialisation of computing artefacts [10]. To ensure that the research has sufficient resources, these supports come from both public and private sources. Funding agencies, venture capitalists (VC)/firms, and consultants for research and development make up the conducive environment and further commercialisation. As centred locations, the incubators act as a foundation to achieve commercialisation missions. In this perspective, incubation is defined as a process and set of actions that work as a platform for the development of new ventures and IP licensing. Their roles are essential for the new spin-off companies to shape themselves and their artefacts maturity before entering the market. The term “incubator” is borrowed from life sciences as an overall denomination for organisations to nurture an environment that is conducive to the “hatching” and development of new firms [11]. The incubator facilitates identifying potential computing prototypes that can be nurtured into actual commercialised products. The university-supported incubation programme
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has a sound background in providing resources and facilitating infrastructures such as funding and expertise to assist innovative end-product development [12]. Despite the availability of support, an extended investigation is required to study whether the commercialisation aim is manifested. Case studies are undertaken to elucidate the roles, functions, and characteristics of incubation to promote the computer artefacts. Most of those studies previously did not integrate dynamic capabilities and resources [13] into a holistic entrepreneurial perspective. More extensive investigation to solve the marketability and commercial issues for the potential artefacts is produced from academic research.
1.2 Academics and Entrepreneurship An investigation to shed the attitude towards commercialisation is carried out in both physical science and engineering faculties in the United Kingdom [14]. Despite positive entrepreneurship attitudes among academics, these attitudes are not manifested in actual commercialisation initiative. This intrigues the issues on the commercialisation process, infrastructure, motivations, and any possible issues hindering the commercialisation endeavour. This article attempts to link the number of successful licensing and commercialisation with resources and capabilities. Furthermore, this article attempts to shed light on how these capabilities such as technological expertise, business, and marketing are translated into commercialisation [15]. Research translation performance is influenced more by individual academic entrepreneurial motives than institutional ones, according to an analysis of 675 patents granted in the States [16]. Despite institutional factors, entrepreneurial characteristics have a greater impact in driving technology into the market than institutional factors do. The effective university incubators provide direction for the academics who possess scientific expertise, entrepreneurial traits, and capabilities to exploit their computing artefacts as potential commercial objects. The perspective on resource-based capabilities as a method of competitiveness has garnered new interests [17, 18]. Grant [19] distinguished the capabilities from other ordinary tangible resources that determine the ability of individuals as the main competitive advantage that fosters commercialisation. Although tangible resources matter, the resources only impact a firm’s success if those resources are exploited with the right processes, functions, and roles that meet the commercialisation objectives. Wu et al. [16] categorised these resources as (1) individual academic researchers and (2) universities as institutions. This categorisation is based on the surveys in the States. The explanation further prevails that individual factors dominate the licensing of patents over institutional ones. These individuals from the second category possess extraordinary capabilities to communicate their artefacts to the market or those who may buy the artefacts. Hence, this highlights the importance of academic entrepreneurial capabilities apart from other resources and institutional factors. As a result, the artefacts are exploited and sold off as end products and services.
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The best strategy [20] to solve the commercialisation issues requires economic players’ engagement in commercialisation. Private entities are better off as they have the capacity and capabilities to commercialise the artefacts as marketable products in the market. The academics lack several explicit and implicit abilities necessary for the business, including requirement engineering, product design and development and manufacturing [20]. Therefore, to make up for the academics’ lack of experience in commercial endeavours, this article suggests these business and marketing talents and skills as the core component of the HE incubation programme. In addition, how these academics engage with the funding agencies, venture capitalists (VC)/firms’ commercialisation in central locations is also included in the discussion.
1.3 Gaps in the Literature—“Valley of Deaths” This article explains the successful university incubation of computing products. There is a huge paucity in the literature supporting the perceived effectiveness of technology transfer office services associated with licensing and commercialisation outcomes [9, 16]. Though Wu et al. [16] explained that the effectiveness depends more on the individual than institutional ones, the seamless process of incubating the research artefacts into full-fledged marketable end products remains unclear. The orientation of university technology transfer officers is mainly focussed on activities and tasks to assist with disclosure and patenting; they may be relatively ineffective sellers of patented inventions. Consequently, this affects the success of computing artefacts in actual commercialisations and translations. The existing loophole requires rigorous works and a concentrated focus on academic capabilities and the establishment of a university incubation cycle [21]. Although incubators in commercialisation are no longer a new concept, the approach that this article proposes is considerably novel. This article highlights the significant gap in Fig. 1 and how the gap is established. Figure 1 shows that two main Valleys of Death exist, “Valley of Death 1” and greater “Valley of Death 2”. All literature acknowledges the Valley of Death regarding how resources and capabilities are needed and deliberately allocated for commercialisation. The literature [4, 17, 19, 22, 23], does not address the two valleys as a continual that should be addressed as a seamless and integrated process phase. All the artefacts discussed in Table 1 at least have surpassed Technology Readiness Level (TRL) 8 or 9, thus they are sufficient to operate in the market. Nonetheless, once the artefacts surpass the Valley of Death 1, it means that the artefacts have just left the breading ground as research artefacts. More tasks, challenges, and resources await once the artefacts enter the Valley of Death 2.
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MARKET PHASE R&D&C Cost (Resources & Capabilities) escalate as technology gets closer to penetrate the market (commercialisation)
RESEARCH COMMERCIALISATION INCUBATION PHASE FACULTY RESEARCH PHASE Valley of Death 1 Research artefacts do not get funded (resources) for further prototypes/proof of concepts development
Valley of Death 2 Research artefacts do not get funded (resources) for further technology development & commercialisation
Fig. 1 Valley of Death 1 and Valley of Death 2 in university incubation programme
Table 1 The artefacts observed, incubators, and respondents in the research commercialisation project cases Artefacts
Incubator/research Source/roles centre academic (pseudonym) researcher (pseudonym)
1 Algorithm for Sharia-compliant E-commerce transaction
UMS-ITI (Malaysia)
TRN and MZM
2 A Method of online real-time monitoring of wear progression in the machining of a cutting tool using a statistical analysis method
MNU (Malaysia)
PJ
3 Augmented reality design to develop a proof of concept for video games
RAI (Australia)
FZ
4 Departure site platforms at railway level crossing
RAI (Australia)
BG
2 Research Aim This article attempts to elicit the commercialisation of computing-related artefacts in computing research outcomes that can potentially be exploited as commercial end products. The case study method was chosen due to its context-specific nature [24] of the issue where the commercialisation of computing artefacts took place. This article explains how and why computing research of few artefacts penetrated the market successfully. This article also incorporates an interpretive paradigm to explain the relationship among the stakeholders including the academics as
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nascent entrepreneurs and private firms in research commercialisation collaborations [25, 26].
2.1 Research Question This study investigated the influential roles in the commercialisation programmes from a resource-based and capabilities perspective. The HE incubators or research commercialisation centres were visited as research contexts. The computing artefacts that were exploited were concentrated. As in Table 1, the technology descriptions were recorded from the inventors directly. In addition, the individuals who were involved directly in the commercialisation were interviewed. All activities at these sites were observed, recorded, and analysed. IP serves as a bargaining tool between academics and VC/firms. As business entities, the VC/firms’ concern is whether the IPs have market potential, while the academics are driven by their research passion and hard work to produce the IPs as outcomes of their research. This study investigated how the HE incubators resolved the differences in expectations and sometimes conflicting commercialisation issues during the visits. In addition, this work investigated the functions, roles, and characteristics of commercialisation HE incubation programmes are regarding the successful commercialisation of computing products. In this article, incubation programme refers to a joint activity platform provided by the university, which enables the available information and knowledge produced in universities [27] to be exploited for commercialisation. University initiatives towards commercialisation include more than simply establishing dedicated technology transfer offices equipped with resources. Moreover, supportive policies, activities, and incentives are designed to support commercialisation activities [25, 28] with the necessary capabilities and experience [29] in a centralised location. As elaborated below, two main propositions serve as the basis for research investigation: (1) the level of technology and (2) the business and marketing capabilities. (1) Proposition 1 (2) The HE incubation model, which uses high-level technology, is more effective in commercialising the computing artefacts [5]. This study approached the technology descriptions of the artefacts directly from their respective academic respondents in Table 1. During the interviews and observations, the level of technology was assessed with the current technology trend in the market. The academics engaged in these incubators to pursue postinvention licensing and commercialisation opportunities for their computing artefacts. This proposition also defines the technology and support infrastructure provided by the university to enable the commercialisation objectives.
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(3) Proposition 2 (4) The HE incubation model, which has high business and marketing capabilities [5, 30], is more successful in commercialising the computing artefacts. This article uses a qualitative methodology to evaluate both the technology strategy and the marketing dynamism approach. A more comprehensive explanation of the components is provided, along with information about university policy and the Technology Transfer Office’s (TTO) involvement in the research translation programme. Integrating interviews with observations from incubator activity is carried out to gain deeper and richer insight [16].
3 Methodology This work adapted an explanatory case study [24], which was qualitative. This explanatory approach aimed to explain the research commercialisation context to relate the multiple interlink factors and relationships that had a relative impact on HE commercialisation success (or failure). Commercialising computing artefacts was an unstructured process involving a complex relationship among academics, TTO, and external entities such as VC/firms. Thus, it justified this approach. To understand the above process thoroughly, this article employs an interpretive technique. Interpretivism offers room for understanding the entire phenomenon [31, 32], the technological and, more importantly, the market components of university commercialisation. In addition, how the relationships, resources, and capabilities build up within the universities and the process designed to support commercialisation during the research collaboration engagement can be better understood. Teddlie [32] further described how this method was chosen due to the requirement to explore the respondents’ personal opinions, which would help explain any contradictions and expand the research findings upon which business functions, processes, and ideas will be built. Secondly, the method was vital for participant enrichment, giving them a voice through feedback beyond the model and assuring a more accurate assessment [18]. In addition, the method was employed to gain deeper insights into the contexts and relevant issues in computing artefacts commercialisation. Thus, this method was expected to produce a rich result that explained the successful commercialisation programmes. This explanation provides a comprehensive insight into the HE cases concerning the existing literature in computing-related innovation [33] and the ability of the academics to succeed both in the research and their ability to sell off their innovation as computing end products.
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3.1 Data Collection Method As presented in Table 1, the data were gathered from the selected sites. The entire business process in these sites, which involved a thorough examination, expanded from prototyping and proof of concepts and all related activities in the pre-commercialisation phase are recorded. The data collection method incorporated a case study analysis to obtain a rich set of data [34] and the surrounding issues and complexity of the HE commercialisation setting. This work attempted to dig in depth of rich data available during the data collection phase [24]. Multiple visits and observations were required and carried out back and forth to comprehend the issues in the university incubation programme. This work provided explanations and evidence for the commercialisation development of computing products. The HE incubation programme was the ideal case study site. As shown in Table 1, the data were collected from three university incubators, namely, UMS-ITI, MNU, and RAI (pseudonyms), and four computing-related artefacts were examined. All the artefacts were developed, and the academics had filed the IPs as the inventors. The technique outlined how the data were created and analysed based on the Interpretivism perspective, which used a qualitative method in the selected HE situations [24, 35]. The method also provided an explanation of why the interpretivism viewpoint was picked. Evaluation and decontextualisation were performed on each component of the qualitative data source. The inference drawn from the case study was then coded and analysed to provide answers to the research questions and their respective Propositions. An explanation of how the commercialisation objective was carried out and the reasons why the objective may succeed or fail were provided based on the interpretivism perspective.
3.2 Data Analysis The methodological approach enabled the data to be collected from multiple stakeholder perspectives [15], which was crucial in determining commercialisation success. The entrepreneur, for instance, defined success in market penetration, the university defined success based on the number of IP licensing, while the faculty regarded success in terms of funding received. The multiple perspectives were consolidated from both technological and market aspects. Specifically, the data generation was conducted from the sources explained below: (1) Interviews—semi-structured interviews for both entrepreneurial and nonentrepreneurial academics were conducted. There were also interviews conducted with seven TTO officers and the managers of three private firms that were active in the commercialisation of HE technologies. The purpose of the interviews was to determine whether the participants, particularly the academics, could carry out the commercialisation initiatives. The experience
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that the respondents had in carrying out the research development as well as any commercialisation and spin-off ventures enriched the analysis of the data. Interviewees from the TTO, academic institutions, and private companies provided a more comprehensive viewpoint. Participants—In HE cases, the participants were segregated based on two types of academics’ scientists, according to Ambos et al. [36]: • The academics who engaged in teaching and research (ordinary academics). • The academics who were actively involved in research commercialisation activities apart from teaching and research (entrepreneurial academics). The segregation was deliberately designed to understand the possibility of different results in the research translation between two types of researchers, both entrepreneurial and non-entrepreneurial ones. Both types of academics were subjected to the designed interviews. The information gathered from interviews was analysed to determine the level of commitment to commercialisation research as well as entrepreneurial motivation. The academics who engaged in entrepreneurial activity, as opposed to those who did not, were characterised earlier in the literature as having more incredible determination, greater capacity for creativity, greater capacity for creativity, and greater degree of independence [3, 6, 37]. Entrepreneurial academics were driven by their motivation and curiosity to strive to access available resources (funding) and both internal and external networks [1, 38]. Furthermore, entrepreneurial academics investigated how they played their roles in prototyping and during the Proof of Concepts phase before the products were pushed (pulled) to the market. Thus, the result differences confirmed how the entrepreneurial academics contributed and played their roles and functions in the translation of computing artefacts into commerciable products significantly. Apart from the HE, external firms such as (VC)/firms were also interviewed. Understanding their level of contribution and commitment was crucial to gain insights on these industrial players’ roles. The academics were involved in commercialisation activities, and how they collaborated with VC/firms as new and vital stakeholders had received scant attention in the literature, which was worth investigating [10, 39]. Thus, the levels of technology transfer and commercialisation activity at university incubators were explored, and the barriers and factors contributing to generating opportunities and associated supportive business systems and processes were further identified. Moreover, VC/firms were expected to have better commercial capabilities as business entities. They managed to develop IP into actual commercial products. Their engagements were motivated by the potential exploitation of these IPs. The VC/firms expected the university, through the TTO, to provide access to these potential IPs and to collaborate with the academics to develop and explore the potential market for these IPs as end products. The university can assess existing firms’ ability to successfully introduce new products by examining their track record [40]. The commercialisation was assisted by shaping the artefacts into full-fledged, ready-to-market products
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by the VC/firms. Their characteristics, roles, functions, and consequences of their engagements were essential but understudied, thus a cause for concern. (B) Observations—Activities in the HE incubators, as shown in Table 1, were also observed, specifically on how the facilities and supporting infrastructures had a relative effect on HE commercialisation. Observations can obtain first-hand feedback and the technology descriptions from the academic researchers, as identified by a pseudonym in Table 1. In addition, the observation complemented the previous interviews. As the interviews were carried out in formal session, the interviewees tended to feed the interviewer with filtered data that did not show the entire real picture. It was necessary to engage in observation to gain an understanding of the process of technological capabilities being matched with the market requirements. The matching process involved triangulating both the market and the technical aspects of the artefacts [13], thus providing richer understanding of the entire process. The technical challenge required scientific and technical expertise already present within the HE due to discoveries and research activities. However, this did not make the market any less challenging because overcoming it required private companies to advance the technology while adhering to various regulations before market entry. The triangulating process was more complex but exciting because it involved a technical approach to product development. Before the artefacts were released into the market, these activities, which included the design and development of the product, prototyping, proof of concept, and pilot testing, were carried out. Many days were spent travelling back and forth between these sites to record and gather the pertinent data for analysis. These observations guaranteed the collection of rich, comprehensive data adequately for drawing inferences from the site cases. (C) Thematic analysis—This study employed a thematic analysis incorporating an interpretive paradigm to identify meaningful and consistent patterns from each case in Table 1. The data collected from the interviews and observations were analysed thematically to provide answers and explanations to the research questions. The process continued iteratively until it reached theoretical saturation. Once this point was reached, incremental learning and improvement were minimum because the phenomenon had been observed in the past without experiencing many distinguishable shifts [41]. Saturation was achieved when the increment provided minimal or no improvements to the responses derived from the research questions. The results of those data collections were then compared whether a pattern available in the previous literature. The academics’ capabilities to engage in entrepreneurial endeavours and the capabilities of universities to recognise potentially profitable markets were essential to the success of HE commercialisation objective. The tasks called for an iterative process in experimental design and development, prototyping, and trial production, all of which expanded into a lengthy business process to match and adjust the technology to the market.
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According to Maine [13], triangulating activities involved technical and market challenges matching processes. Technical knowledge was available at the university through computing-related research. However, the challenge lied in utilising market players to assist academic research in pushing the technology forward. Market penetration was a challenging and complex task. Thus, the interactions between technical and market challenges would improve the commerciality of research artefacts even further. Academic entrepreneurs and university TTOs must push computing products through various regulations and organisational resistance—iterative, incremental, but rigorous matching of technical and market challenges. Because market penetration necessitated user acceptance, the users’ requirements must be refined during the incubation stage. While analysing universities’ research commercialisation and entrepreneurial activities, a few themes began to surface. The outcomes offered commercialisation to justify whether the university-supported incubation programme was worth the effort. Hence, the allocation of resources and commitment were rationalised. The results contributed valuable inputs to building a model for computing artefacts among university academics that would add valuable information to improve TRL to the academic research outcomes. All the artefacts observed and investigated had surpassed the prototyping level, and few of them such as artefacts number 3 and 4 demonstrated a market-ready level. Hence, the gap between prototyping for commercialisation and market uptake could be bridged.
4 Findings This explanatory study case prevailed the thoughtful inductive findings and valuable insight into issues in research commercialisation. This study discovered a massive gap between the researchers’ positive responses and successful commercialisation. This finding opened rooms for broad discussions on the actualisation of entrepreneurship and commercialisation in the academic context. According to the analysis, all the academics and non-academics agreed and had similar ideas on what it took for effective innovation in computing research. As a result, universities should emphasise the importance of appreciating dynamic academic talents in HE, such as tacit knowledge, expertise, and skills in commercialisation and licences, particularly among those who are entrepreneurial. The university commercialisation programme acted as a frontier to access the market. Still, because these capabilities were unique, the academics’ capacity to produce innovations mainly depended on the knowledge-sharing process across the commercialisation process flow. Academics and TTO respondents expressed their positive responses on the capabilities of business and marketing, entrepreneurship traits, ideas of the incubation process, infrastructure, and facilities. However, sharing similar thoughts and expectations about inventions did not manifest the artefacts beyond the prototype and lab phases’ proof of concept. Extensive works on an entrepreneurial and
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enterprising approach that concentrated more on translating computing into actual commercialisation were required. All respondents admitted that the path leading to the market was not straightforward [42]. More critically, maintaining the HE incubators involved enormous efforts that had been underestimated and demanded very high entrepreneurial qualities. Each academic in Table 1 anticipated their study to go beyond the traditional research activities. In contrast, only the academics in cases number 1 (TRN and MZM) and number 3 (FZ) matched the entrepreneurial traits by being diligently involved in the commercialisation, according to Table 1. These enterprising academics had convinced VC/ firms to pay attention to their artefacts and to effectively leverage their research influence among researchers. Only the academic in number 3 had their artefact converted into a real thing though. Academic number 1 had difficulties adjusting the artefact to adhere to the existing regulation. These findings clearly distinguished the border separating entrepreneurial academics from ordinary ones, as suggested by Ambos [43]. The entrepreneurial ones made an extraordinary effort to carry the artefacts beyond academic outputs. Despite their institutions’ subjective influence on commercialisation, their impact on the commercialisation journey was more influenced by individual academics’ efforts and characteristics [16]. Entrepreneurial capability matters and impacts the commercialisation progress, sophisticated capabilities, applied and specialised technologies, and financial resources are indeed required which are beyond the HE capabilities to cater. Based on the observation at the sites, as shown in Table 1, the VC/firms were more passionate about working with those entrepreneurial academic ones, especially on artefacts numbers 3 and 1. They were more pragmatic and resourceful in defining the end products of their artefacts. These academics were more dynamic and possessed the entrepreneurial commitment to identify potential markets crucially. Their capabilities were coupled with experimental development, design, prototyping, and trial production before their artefacts turned into end products. It took a lot of works practically on the ground to match the market demands with technical capabilities. The observations preceded how the facilities and programmes at the HE incubator supported the pre-commercialisation phase. As highlighted previously [26, 44, 45], faculty research’s diverse capabilities were unachievable and insufficient. Thus, an effective incubator usually had a diverse university-industry team to compensate for the HE’s lack of capabilities. The incubation welcomed cross-disciplinary collaboration for the academics and their artefacts to be scrutinised by the experts from various angles and disciplines. Comparatively, among all HEs listed in Table 1, only RAI (number 3) ideally matched the above incubation description that facilitated resources and capabilities needed as a breeding ground for the computing artefacts. For more than a century, RAI had a tremendous university-industry history of reputation. Sharing resources and capabilities with the industry were one of the main strategies to resolve resource scarcity. Decades of accumulated capabilities and experience were shared and passed through within the institution. Still, being a new HE did not mean that this capability was unachievable. There were many practices from RAI that can be learned by the
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new HEs. RAI was found to be more tolerant of failure than the rest of the HEs. For example, the academics who left RAI to pursue a commercialisation venture were still welcomed regardless of whether they succeeded in the commercialisation venture or otherwise. More market-oriented research products were more successful than technologyoriented ones. Although the incubator that offered a high level of technology was essential, the failure to align the artefacts to the market requirements did not attract private firms to work with the HE. Consequently, all these artefacts were perceived as immature or merely a product of academic exercise. It was proven by artefacts number 3, as shown in Table 1. The respondent (inventor) worked rigorously with the industry to fine-tune the artefacts. Since the resources for the commercialisation of artefacts were scarce, shaping the artefacts towards the market lessened the resource scarcity issue. Once the agreement to work out the artefacts with the industry was obtained, the resources were no longer the main issue. Consequently, leverage the resources, capabilities, and capacity in commercialisation as Mowery and Shane [40] proposed.
5 Conclusion 5.1 “Valley of Death” During observations, significant patterns described as the “Valley of Deaths” before the market were identified as the challenges that must be overcome. These “Valley of Deaths” were the main obstacles before the venture was profiting and characterised by negative cash flow [46]. The ability of the academics whether the artefacts will survive in the competitive market. As shown in Fig. 1, the phase is mapped between two main Valleys of Deaths named as Valley of Death 1 and Valley of Death 2. As the names imply, the incubation process in the greater Valley of Death 2 is more rigorous and challenging. As for the case studies, the academic entrepreneurs and commercial VC/firm partners were successfully brought together through practical incubation, which also linked the faculty research phase with the market. Even for those less entrepreneurial academics, this incubation phase was an opportunity to negotiate their artefacts licensing agreement with the VC/firms. The incubation assists the academics surpass both valleys and managing their artefacts to penetrate the market. Instead of developing the artefacts in isolation, those potential artefacts in HE incubators should be designed in a way that VC/firms can access them. The VC/firms assisted in providing faculty research resources and market penetration capabilities. Route for commercialisation is critical for new artefacts. Thus, accessibility and openness allowed sharing opportunities and resources for product development, which were scarce for knowledge translation [8, 47]. In addition, the private companies’ engagements provided marketing expertise and capacities in market penetration. Before the investigations, it was presumed that
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there was a one-way flow of scientific and technological knowledge from HE to the industry, which was proven otherwise. Contrary to previous literature [8], in fact, the multi-directional scientific knowledge flows between HE and industry benefited both parties, instead. The incubators succeeded in producing the artefacts close to the end products in the market and increased the maturity of TRL. From the site observation, a patterned surface defined how the HE incubation programme defined its intermediary roles in commercialising the academic artefacts. Different expectations and tensions among stakeholders, particularly between academics and VC/firms as the main stakeholders, did exist. Thus, the incubator served as an intermediate to address the issues with communication and conflicting expectations among these crucial players. Since HE technology was still in its infancy [9], Fig. 1 shows how efficiently incubation exploited the faculty research resources to create more fully developed products and artefacts that will appeal to the market’s target audience. The effective incubation connects both valleys in Fig. 1 and the bare research artefacts transform into marketable products. However, the demand for resources, the entrepreneurial commitments and capabilities, and the level of complexity were more crucial in the Valley of Death 2. Furthermore, the incubation procedure at this stage improves the market readability of research products while also facilitating and enabling research translation. The Valley of Death 2 was a transitioning phase that took and bridged the artefacts into the market. Surviving the Valley of Death 2 was the turning point whether their artefacts remained as research products or marketable products that further succeeded in the market. By locating all the incubators close to the private businesses, academia and industry can work together to promote the marketability of computing artefacts. Both partners benefited from the incubator’s infrastructure, facilities, and experience facilities and experience in the incubator. The artefacts were improved into marketable products due to the proximity of knowledge and personnel, training, and resource exchange [5, 11, 30]. Private businesses provided marketing tools and resources. Therefore, it was advantageous for computer research to collaborate with companies early in defining the market for the artefacts. This work highlighted the paucity in the previous discussions on how to push (pull) the artefacts and how the Valley of Death 2 signified the computing artefacts penetration in the market. In the greater “Valley of Death 2”, the level of complexity of the artefacts was more crucial and resources escalated. Hence, locating the incubator infrastructure accessible by the VC/firms assisted in building up the artefacts as end products, which were again not discussed in the literature. In addition, this study also highlighted how an effective university incubation process bridged these two valleys to enable the translation of the artefacts into fullfledged end products. As mentioned, the practical incubation successfully connected the research phase to the market phase, and the entrepreneurial academics were linked to industrial VC/firm partners. Moreover, this work highlighted its novelty because it put forward valleys as an integrated and deliberate process phase in promoting academic artefacts.
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Figure 1 frames the role of university incubation in generating synergistic operations by leveraging resources and capabilities from within the university and industry to support successful commercialisation.
5.2 Issues and Hindrance Initially, academics began formalising their research by sharing the research artefact and opportunities early among fellow academics. A few prototypes and artefacts were developed to penetrate the market. The prototype development phase was carried out iteratively before and after allocating the resources. More directed funding for translation and application was crucially needed. Most academics welcomed the HE initiatives towards commercialisation but were hardly active in any commercialisation of their research due to obvious reasons. For example, the academics were appraised based on research publications instead of commercialising the research outcomes. Hence, it could be theorised that those who succeeded, as in Table 1, were more internarial than the rest of the colleagues. University policy should not overly restrain academics, but the policy should encourage academic–industry collaboration and consider a broader range of incentives for promoting such interactions [27]. The willingness of VC/firms’ engagement is the indication of the potential artefacts in the market. Considering the constantly changing environment, positioning the incubator close to university research allowed the incubator to adapt less bureaucracy, which supported a more lean, agile, and adaptive incubation cycle. University is hierarchical in nature. Hence, adjusting the incubation process to suit the market practice is necessary to allow a contingency approach to enable the incubator to respond to events that require special processes that involve external parties. A formalised incubation programme allows for multi-directional information flows between academic research and market uptake. The interactions allow the incubator to react to the environmental market agilely. This work laid a foundation for future research and possible replication into different settings, cases, and contexts for academic technological entrepreneurship success. Thus, the study complemented the paucity of previous research on the roles of the incubation process in the successful penetration of computing artefacts in the market.
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Implementing Entrepreneurship Education in Chinese Higher Education Institutions: A Review Ren Zhiyi, Norazah Abdul Aziz, and Mohammed Hardy Rahim
Abstract At present, Entrepreneurship Education (EE) is not only a career path but a preparation for life. This article reviews entrepreneurship education policies and practices, the main issues, and the way forward for EE in Chinese Higher Education Institutions. Through an in-depth document analysis, the review begins with the origin of EE in China, followed by an analysis of the development of EE. The analysis also identifies the issues and problems relating to EE implementation in China. Critical analyses of issues pertinent to the implementation of EE lead to the discovery that, although EE has developed rapidly and attained significant achievements, provincial higher education institutions still have many handicaps in the implementation of EE and are supposed to be given more focus by the EE learners. Keywords Entrepreneurship education · Implementation · Policies · Challenges · Higher Education Institutions
1 Introduction With the Fourth Industrial Revolution approaching, entrepreneurship is gaining substantial interest from multiple stakeholders. Considered the key driving force in the global economy, entrepreneurship presents a positive and potential avenue for developing new markets with new products and technological advancements [1]. Currently, there is a consensus that universities, as the most important educational institutions, should offer students and society innovative and entrepreneurial R. Zhiyi (B) North China Institute of Aerospace Engineering, Langfang 065900, China e-mail: [email protected] N. Abdul Aziz · M. H. Rahim Universiti Teknologi MARA, 42300 Darul Ehsan, Selangor, Malaysia e-mail: [email protected] M. H. Rahim e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_61
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resources [2]. Numerous empirical studies have justified that entrepreneurship (at least in some aspects) can be taught and cultivated in universities [3, 4]. EE is recognised not only as one of the ways to enhance the skills and ability of job creation but also to help communities and promote an improved quality of life [5]. The history of Entrepreneurship Education (henceforth abbreviated as EE) spans over 50 years and could date back to the 1940s in the US. Harvard University and Stanford University started EE in 1947 and 1949, respectively. Subsequently, many developed countries began developing EE as a part of their professional education and gained fruitful educational achievement [6, 7]. China is no exception. Over the past decades, China has been making various efforts to enhance individuals’ entrepreneurial qualities, strengthening entrepreneurial spirit in the society and creating a good entrepreneurial environment [8] in higher education institutions (henceforth abbreviated as HEIs). Entrepreneurship Education has become one of the important and compulsory parts for college students.
2 Origin of China’s Entrepreneurship Education Entrepreneurship Education emerged for the first time in China in 1988. It was put forward by Hu Xiaofeng in March 1988. Hu Xiaofeng and his team members were the pioneer group that managed to explain and illustrate the concept of entrepreneurship education clearly and carried out some entrepreneurship education experiments based on their study achievements on the educational theory of Tao Xingzhi for the past decades [9, 10]. In A Brief Introduction to Entrepreneurship Education written by Hu Xiaofeng et al. (1989), the emergence of entrepreneurship education is believed to be an embodiment of the great educator Tao Xingzhi’s theory and practice of life education in the new era. The authors suggested that EE is not merely a simple educational means or method, but it should be put at the top of the educational system. Therefore, EE is intended to cultivate the intention and spirit of entrepreneurial life, to build a reasonable life, or to improve the quality of life [11]. Additionally, they also believe that the combination of science and technology, education, and economy is the first principle of EE, and this concept has positive inspiration for the implementation of EE in colleges and universities in China even now. Besides, Hu Xiaofeng and his team regard that it is the moral education, especially the cultivation of entrepreneurial consciousness [11]. Although their article was published early in 1989, its profound understanding and advanced insights of the above views still have great reference value for the current implementation of EE in Chinese HEIs.
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3 Developmental Stages of EE in China The Chinese HEIs have conducted various entrepreneurial activities in several stages to promote EE in China, and each stage has its own features. Based on the distinct features of the EE implemented, the development of the Chinese EE could be divided into four stages: the beginning stage, the exploration stage, the transformation stage, and the rapid development stage [12]. This section presents the features of each stage based on an analysis of primary documents such as government publications or official statements on entrepreneurship and significant entrepreneurial events.
3.1 Beginning Stage The beginning stage of EE featured entrepreneurial practice guidance to the students, and it covered the period before 2002. During the first stage, there were not any distinctive policies issued by the Chinese government to encourage HEIs to conduct EE. At that time, EE was initially conducted only by several universities in China that drew lessons from the practice of innovation and EE from Harvard University and Babson Business School. Its purposes then were mainly to nurture more entrepreneurs and to promote the development of the private economy in 1997. The universities consisted of Tsinghua University, Fudan University, East China Normal University, Wuhan University, Beijing University of Aeronautics and Astronautics, and Zhejiang University. Table 1 presents the significant events relating to the implementation of EE during the first stage. Table 1 Most influential events of EE implementation in the first stage Year
Events
1996 Entrepreneurial Management was offered to students by Lei Jiasu at Tsinghua University
Influence The first course related to EE in a Chinese HEI
1998 Tsinghua Entrepreneurial Plan Competition was held by Entrepreneurial Tsinghua University and a magazine in Shanghai, together Competition was held on a with several universities Chinese campus 1999 An Innovation and Entrepreneurship Management Class of The first class featured with Zhejiang University was jointly established innovation and entrepreneurship [13] 1999 “Challenge Cup”, an entrepreneurial competition The competition triggered a sponsored by the Central Committee of the Communist nationwide promotion of Youth League, etc. was firstly held in Tsinghua University EE in Chinese HEIs [14]
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Table 2 Main measurements and policies in implementing EE Year Main measurements and polices
Influence
2002 • EE pilot programmes were launched in Tsinghua University and other eight universities
• EE was officially encouraged to carry out in different ways [14]
2003 • The first training programme for EE teachers organised • It marked the official start by the Ministry of Education was held at Beihang of teaching activities of EE University. 180 teachers from more than 100 in China [14] universities across the country participated 2005 • Know About Business (KAB) was promoted at the • EE implementation was Chinese universities by the Central Committee of the conducted through the Communist Youth League (CYL) and All-China Youth international cooperation Federation for the first time [14] 2006 • The Ministry of Education approved Zhejiang University as a pilot institution for entrepreneurship management education programme
• The first master’s and doctoral programmes in entrepreneurship management were set up in China [15]
2008 • The Ministry of Education set up 32 experiment areas of talent training mode in innovation and entrepreneurship
• It achieved good, expected results
3.2 Exploration Stage The second stage, from 2002 to 2008, is characterised by various EE explorations of the entrepreneurial curriculum provision and mode. During this period, China’s Ministry of Education (MOE) began issuing several policies relating to EE and became involved in the administration of EE in higher institutions. This occurred upon realising the impact of EE in higher education institutions. The important events pertaining to the implementation of EE are presented in Table 2.
3.3 Transformation Stage During the third stage, from 2008 to 2010, the Chinese Ministry of Education and the Ministry of Finance set up the 100 Talent Training Mode Innovation Pilot Classes, distributed in 70 public higher institutions [16]. These pilot classes gave more attention to the entrepreneurial talent training mode of college students instead of students’ entrepreneurial practice as before. During this stage, another feature of entrepreneurial development was to create entrepreneurial institutions in the pioneer universities besides the pilot classes. In 2009, the first entrepreneurial institution, Shenzhen Institute of Innovation and Entrepreneurship of Tsinghua University, was founded. In the same year, the School of Management at Zhejiang University, together with the F.W. Olin Graduate School
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of Business at Babson College, and EMLYON Business School (France), jointly launched the “Global Entrepreneurship Management Programme”, which was the world’s first global master degree programme provided by three leading institutions in entrepreneurship. Subsequently, the School of Entrepreneurship and Innovation (SJTU) was set up in Shanghai in 2010. The third feature was that the government started to issue guidance documents to develop EE in China. In May 2010, the Ministry of Education issued the first document entitled The Opinions on Promoting Innovation and Entrepreneurship Education in Colleges and Universities to actively promote EE. The Ministry of Education also established the “Steering Committee for Innovation and Entrepreneurship Education of Higher Education”, which was comprised of well-known entrepreneurs, experts from enterprises and institutions, teachers from colleges and universities, and leaders from relevant departments. It provided guidance and consultation on entrepreneurship education for colleges and universities.
3.4 Rapid Development Stage The fourth stage refers to the rapid development stage of EE that occurred after 2010. With the concept of “employment driven by entrepreneurship” and “encouraging all people to make innovation” put forward by the Chinese government, and EE was gradually integrated into the university education system. At the same time, EE was no longer a skill education for a few students with entrepreneurial potential, but a quality-oriented education for all students and an important content to support widespread entrepreneurship. To further promote the popularisation and all-around development of EE in China’s HEIs, China’s Ministry of Education issued a series of documents and policies related to EE beginning 2012. Some of most representative ones are displayed in Table 3. In recent years, China’s policies and measures on EE have pushed the EE in HEIs to a comprehensive development stage, which was coordinated by the state and jointly promoted by HEIs, the government, and market forces. An EE system has been gradually established in HEIs, which integrates classroom teaching, independent learning, practice, guidance and assistance, and cultural guidance. The quality of talent training has been significantly improved. Students’ innovative spirit, entrepreneurial awareness, and innovation and entrepreneurship abilities have been enhanced. Moreover, there is a notable increase in the number of students engaged in entrepreneurship practice. Despite the heightening interest and rapid growth of EE in China, its implementation in HEIs is not without its challenges. The following section of this paper highlights some of the prominent issues relating to the implementation of EE as a part of the higher education learning in universities.
Key documents or activities
Measurements
Influence
• HEIs were encouraged to jointly • This document marked the beginning of the internationalisation of the build incubation bases, science, and EE implementation in China’s HEIs technology parks with countries along the Belt and Road • Overseas students who knew China well and were friendly to China were also welcomed to carry out entrepreneurship in China (continued)
2018 Action Plan of Scientific and Technological Innovation service for “Belt and Road” Initiative in HEIs
• It accelerated the implementation of widespread entrepreneurship and innovation
• Students involved in entrepreneurship were allowed to retain their school status or suspend their studies • All the HEIs were encouraged to carry out EE training programmes for students
• It promoted the scientific standardisation construction of EE in HEIs
2016 Guiding Opinions of the Ministry of Education on Deepening the Reform of Education and Teaching
2012 Basic Requirements for • The requirement to develop courses Entrepreneurship Education related to EE • Teacher’s training programmes for Teaching in Ordinary EE needed to be carried out Undergraduate Schools (Trial) vigorously EE was required to be implemented in the whole process of talent training
Year
Table 3 Documents and policies of EE implementation in the fourth stage
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Key documents or activities
2021 Guidance on Further Supporting Innovation and Entrepreneurship of College Students
Year
Table 3 (continued) Influence • This document was also the most complete policy document for EE implementation so far. It covered all aspects of the college students’ innovation and entrepreneurship and put forward the specific requirements for each related department
Measurements
• Enhancing the innovation and entrepreneurial ability of college students • Optimising entrepreneurial environment • Strengthening the construction of a service platform for innovation and entrepreneurship • Implementing fiscal and tax policies to support college students’ entrepreneurship • Strengthening financial policy support for college students • Promoting the commercialisation of college students’ achievements in entrepreneurship • Ensuring the success of national Entrepreneurship Competition • Strengthening information services on innovation and entrepreneurship for college students
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4 Practical Problems of Implementing EE in HEIs After more than 20 years of development and EE implementation in Chinese HEIs and the series of achievements attained by the universities, numerous challenges still exist in the implementation of EE, particularly in Chinese provincial HEIs. The CNKI, the largest Chinese journal database in China, was used as the search platform to obtain the literature and detailed information relating to issues and challenges to the implementation of EE. Keywords such as “EE in colleges and universities” and “problems” were used to filter the articles and narrow down the search parameters. Finally, a total of 14 articles were selected from the Core journals and CSSCI journals from 2017 to 2021 The current practical problems in EE implementation were carefully reviewed and categorised according to the following themes.
4.1 Misunderstanding of Entrepreneurship Education In HEIs, the ultimate objective of EE is to enhance students’ innovative spirit and entrepreneurial consciousness [17]. However, the current problems of some colleges, especially local colleges, are mainly reflected in some aspects. On one hand, education policymakers have a one-sided understanding of EE as the medium for training independent entrepreneurs and take it as the education objective. The emphasis of EE is on career planning and vocational skills, while competition-oriented EE focusses on business plan writing and oral defence skills. In this way, students’ innovative spirit and entrepreneurial consciousness cannot be effectively stimulated, and students’ entrepreneurial ability is not improved, which deviates from the main objective of EE [18]. On the other hand, students do not fully understand the true purpose of entrepreneurship education in scholarship, honorary titles, and other rewards. This issue has a negative influence on the improvement of students’ comprehensive abilities such as innovative thinking and entrepreneurial spirit. Most students engage in entrepreneurial activities mainly to win awards and gain bonus points. They believe participating in entrepreneurial project competition is to carry out innovation and entrepreneurship [19]. Moreover, students frequently change entrepreneurial projects according to the different themes of the competition, resulting in the low quality of the incubated entrepreneurial projects [19]. Therefore, the training goal of EE in colleges and universities needs to be changed from cultivating independent entrepreneurs who will start their own businesses after graduation or win awards in entrepreneurship competitions to enhancing the innovative spirit, entrepreneurial consciousness, and ability.
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4.2 Incomplete Entrepreneurship Curriculum System After years of practice and development, the current professional curriculum system in China’s universities is stable and perfect. Moreover, the curriculum setting and arrangement is also saturated. This poses difficulties in establishing a complete curriculum system for EE especially in fitting in innovation and entrepreneurship courses within the current curriculum HEIs [20]. At present, elective courses and general education courses such as career planning courses are open for students to enrol. However, the teaching activities are traditional and conducted in large classes, and the lecturers often lack entrepreneurial experience [18]. Therefore, the teaching content is mainly theoretical knowledge, such as entrepreneurial and employment skills. According to Zhang Xiaojuan, this is not the ideal method of EE implementation since it offers limited lectures on employment and entrepreneurship or merely the teaching of entrepreneurship skills based on theory [21]. Furthermore, it is hard for HEIs to integrate EE concept into professional courses due to the lack of actual entrepreneurial experience for professional teachers. Thus, the incomplete curriculum system has a direct and negative influence on the implementation of EE in China’s HEIs.
4.3 Insufficient Teachers for Entrepreneurship Education Teachers are one of the most critical factors in implementing EE in HEIs. The quality and the quantity of EE teachers allocated to a university determine whether EE can be carried out effectively [22]. At present, the number of teachers teaching EE is insufficient, and their content knowledge development is not attached enough importance in Chinese universities, especially ones located at the rural provincial level [23]. Innovation and entrepreneurship teachers generally include full-time teachers and parttime teachers in universities. The full-time teachers are composed of counsellors and economic management teachers, who generally do not have entrepreneurial experience or make little effort to research on how to teach entrepreneurial courses. Thus, what they teach the students mostly focusses on skills and competencies needed for the entrepreneurial competition, such as professional skills or business plan writing and speech presentation skills [18]. In other words, due to the lack of entrepreneurial experience, these full-time entrepreneurial teachers pay more attention to theoretical knowledge compared to practical skills. This makes it hard for students to cultivate the ideal entrepreneurial skills, spirits, and abilities. Meanwhile, the composition of part-time teachers is more complex. They generally come from social enterprises, investment institutions, and government departments. The class period for part-time teachers is not fixed, so they usually conduct their EE classes by providing relevant consultation or conducting mass lectures [20]. Although some part-time teachers have a lot of practical experience, they are unable to supervise students effectively
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due to time constraints. In conclusion, the quantity of EE teachers is insufficient, and the teaching quality cannot be guaranteed.
4.4 Unsynergetic Entrepreneurial Environment At present, although HEIs have realised the importance of building a practice platform and have set up business incubation bases on campus and practice bases off campus, respectively, they are not enough in terms of quantity and quality. On the one hand, because of the limitation of EE funding and teachers, the intake capacity of the campus business incubator base is limited and can only take in a small number of students to carry out the relevant EE practices. On the other hand, the off-campus practice base is jointly set up with local companies, with the help of the corresponding training resource and working environment. However, the enterprise usually makes profit as its main purpose. The supervisors provided by the enterprises cannot meet the students’ need for innovation and entrepreneurship practice. Thus, in most cases, the off-campus practice base becomes more like an internship related to the students’ major, resulting in poor outcomes for practical EE [18]. Additionally, the financial support for college students to carry out innovation and entrepreneurship in China mainly comes from the government or the university. The amount of funding is limited and cannot meet the needs of many students who lack social capital or private capital injection. Lack of capital causes many entrepreneurial ideas to be given up from the bud. Even if college students succeed in entrepreneurship, it is difficult to move forward due to funding deficiency [23]. Besides, college students’ entrepreneurship education is regarded as the one-side responsibility of HEIs, and the responsibility and role of the government and society are weakened or neglected. The guidelines and policies formulated by the government do not pay attention to the practical difficulties and appeals of college students in starting their businesses [20]. Therefore, the entrepreneurial environment for college students to start their businesses is not synergetic, which greatly affects the quality of EE.
5 Conclusions This paper reviews the foundation and development of EE in China. By analysing the achievements, current issues, and challenges in implementing entrepreneurship education in HEIs in China, some features and themes emerged and are summarised as follows. Firstly, not all HEIs benefit from entrepreneurial policies and measurements despite the importance to entrepreneurship education by the government. To encourage the HEIs to implement EE, the Chinese MOE has issued various related documents (up to 412) in the past 10 years. These documents, with the government’s guidance and guidelines, did facilitate the rapid development of entrepreneurship education. However, some universities, particularly rural provincial ones, found it
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difficult or impossible to carry out some of the policies and meet the requirements in a short period of time due to insufficient funding and professional teachers. Secondly, there is no holistic and suitable EE framework in most HEIs to guide the implementation of entrepreneurship education resulting in the polarisation of EE according to different universities. To meet the EE requirements of Chinese MOE as soon as possible, the HEIs usually adopt the most direct measurements to spur the development of EE. This utilitarian measure generally focusses only on some aspects of EE, such as EE course reform or entrepreneurial competitions, but not the important elements of EE. Moreover, EE should be conducted in the long run and under a holistic and systematic framework so that qualified entrepreneurial talents can be nurtured and cultivated. Although there are existing EE frameworks developed by HEIs that have ventured into EE earlier and gained experience through their cooperation with society and enterprises, most of these universities are researchoriented universities. Their successful experience and educational framework may not be suitable for local application-oriented universities. This, therefore, suggests the need for future research related to EE to prioritise and focus the research context on the local provincial application-oriented universities in China.
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Exploring the Implementation of Fintech Through Crowdfunding and an Appropriate Crowdfunding Model for Student Entrepreneurs Siti Salwani Abdullah , Dzulkifli Mukhtar , Azwan Abdullah , Ahmad Ridhuwan Abdullah , Tahirah Abdullah , Amira Jamil , Siti Rohana Mohamad , and Nur Farahiah Azmi
Abstract The purpose of this article is to explore the implementation of fintech through a crowdfunding platform as a new source of entrepreneurial finance for student entrepreneurs in Malaysian higher education institutions (HEIs). This study aims to better understand the mechanism underlying the new novel concept of online funding known as crowdfunding, which serves as a new entrepreneurial finance tool that enables entrepreneurs to access capital more easily. Although online crowdfunding is a relatively new form of financing for entrepreneurial individuals primarily student entrepreneurs in HEIs, it plays a critical role in closing the gap in entrepreneurial finance. Therefore, this article describes the new entrepreneurial finance source phenomenon and proposes a model that includes three major categories and types of crowdfunding, with a focus on HEIs setting. To begin, the study discusses the three categories of crowdfunding that are available and used in Malaysian HEIs: (1) philanthropy, (2) patronage, and (3) investment. Secondly, the study’s major findings are as follows: within the three broad categories of HEIs crowdfunding, there are four distinct crowdfunding models: (i) donation-based crowdfunding, (ii) reward-based or pre-purchased crowdfunding, (iii) lending-based crowdfunding, and (iv) equity-based crowdfunding. Thirdly, the findings demonstrate how HEIs choose appropriate crowdfunding models based on the characteristics of their crowdfunding community. This study will benefit the interest of the community of HEIs (i.e., implementers, students or beneficiaries, faculty, and alumni) in gaining a better understanding of crowdfunding for entrepreneurial activities. Future research could focus on different study contexts (for example, secondary education) in Malaysia or other developing countries. Keywords Crowdfunding · Entrepreneurial finance · Student entrepreneurs · Higher education institutions S. S. Abdullah (B) · D. Mukhtar · A. Abdullah · A. R. Abdullah · T. Abdullah · A. Jamil · S. R. Mohamad · N. F. Azmi Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Kota Bharu, Malaysia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_62
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1 Introduction While entrepreneurial finance is concerned with entrepreneurs’ financial decisions, corporate finance is concerned with the financial decisions made by large corporate organisations [1, 49]. According to Abor [1], entrepreneurial finance may be described as the examination of value and resource allocation in the context of new businesses. In addition, Mustapha and Tlaty [49] added entrepreneurial finance differs from traditional corporate finance since the challenges are more essential, requiring different contractual solutions than in larger, more mature organisations. Within the entrepreneurial finance literature, one of the most prominent areas of inquiry is the study of alternative sources of financing, which is a topic that has received a great deal of attention recently [17, 22]. This topic is not only restricted to the general group of entrepreneurs, but is also scrutinised by most entrepreneurs. Many scholars investigated the sources of financing available for entrepreneurs among early-stage entrepreneurs and start-ups in higher education institutions (HEIs). For example, Horta et al. [30] highlighted that funding is becoming more connected with performativity, evaluation, and competitiveness in today’s higher education systems, and universities are looking for new ways to support their operations. Man et. al [44] also examined new sources of financing, as current financial assistance is no longer sufficient to address the institutional challenges that result in the failure to carry out planned programmes. As numerous entrepreneurial businesses face difficulty in obtaining financing, this subject is being discussed more often, and it is a problem that is worsened in emerging markets [37]. For example, the study by Prijadi et al. [54] found that financing issues occurred in every stage of enterprise development, especially micro and small enterprises (MSEs) development in Indonesia. These circumstances, which can occur for several causes, are frequently the result of capital “supply-side” constraints and capital “demand-side” constraints [37]. According to Klonowski [37], capital constraints may arise from market shortages caused by financial institutions effectively “hoarding” capital while refusing to extend it to entrepreneurs. Capital providers may also lack a strategic focus on the entrepreneurial sector due to a general lack of expertise in the sector or an inability to appropriately analyse the risks in entrepreneurial enterprises [37]. As highlighted by many scholars, risks are among the most related barriers among early-stage entrepreneurs, MSEs, as well as start-ups [50, 56, 58]. This is due to the lack of good creditworthiness among entrepreneurs [25]. These include collateral disagreement, expensive operational costs, misapplication of disbursed loans, lack of business expertise and sufficient documentation, as well as problems determining creditworthiness [25]. Certain questions confront all entrepreneurs, including those with a higher educational level, such as how much money can be raised, how much money should be raised, when the money should be raised, what sources of funding should be approached, what is the start-up worth (i.e., what is its value), and how should funding contracts and exit decisions be structured. But, how should they go about obtaining funding? Entrepreneurs may consider friends and family, bank loans, government
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seed funding and grants, angel investors, venture capital firms, initial public offering (IPO), or another form of financing [1, 64]. Moreover, many countries struggled during this time due to the high expense of living, the COVID-19 pandemic’s consequences, and the years of lockdowns [4]. It appears that seed funding is the most severely impacted sort of entrepreneurial finance by the crisis as it often goes to the most nascent entrepreneurial start-ups suffering the most difficulties in acquiring finance [11]. This also happened to the entrepreneurs in HEIs. In the context of Malaysian HEIs, the government has laid out guidelines that encourage universities to generate their own income rather than relying on government funds. This is due to a decrease in government funding for universities because of the COVID-19 pandemic, as well as the country’s and the world’s economic problems. So, what is the best solution the government can recommend? Generally, small business ventures obtain their initial, and ongoing, financing from personal savings, their friends, and their families [16]. Aside from those resources, the government and entrepreneurs recognise that there is a need for a new fundraising alternative, such as crowdfunding. Although there is still a scarcity of funds, the crowdfunding ecosystem is becoming increasingly diverse, ranging from the most basic reward based on social lending to more advanced models that take fintech into account [52]. Crowdfunding is a new form of financing using technology via the internet and Web 2.0. It is categorised as financing technology (fintech). Fintech, also known as technofinance or financial technology, is the provision of financial services and products by means of information and communications technology (ICT) cutting-edge technological capabilities [52]. While electronic currencies like Bitcoin and crowdfunding are unique to this industry, the services offered by fintech are fundamentally those of traditional finance, ranging from simple transactions and payments through brokering and risk management [52]. In consideration of crowdfunding, it has been highlighted as playing a critical role in reducing gaps in entrepreneurial finance. However, several unresolved questions remain about the development of crowdfunding in HEIs [32, 46]. These include how HEIs choose the appropriate crowdfunding model to be used in their entrepreneurial activities. This study also looks at the different types of crowdfunding and explains which ones are best for student entrepreneurs in Malaysian HEIs. Based on the categories and types of crowdfunding models, this study describes the types of crowdfunding communities in Malaysian HEIs.
2 Literature Review Entrepreneurs face various challenges to entrepreneurship, particularly in funding their start-ups [58]. The availability of funds, in general, is considered one of the crucial factors to induce or support entrepreneurship [36]. When evaluating a financing source, there are two types of funding to consider: internal and external finance [51]. Internal funding is less risky and basically comes from salaries, family, and friends, while external funding is riskier and usually comes from venture capital,
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angel investor, microfinancing, and crowdfunding [67]. Most of the time, student entrepreneurs will have a problem to access these sources, especially external funding [63]. Moreover, entrepreneurs who possess only little funds are also at a disadvantage to get external funds such as bank loans because of information asymmetry and tight conditions imposed on them [35]. Because the availability of funds can negatively affect entrepreneurial inclination among potential entrepreneurs [58], this may lead to a shortage of entrepreneurs among graduates of HEIs. Basically, in the context of student entrepreneurs in HEIs, the sources of financing available to them are by referring to the seed and early-stage phases. Entrepreneurs in HEIs are primarily start-ups and early-stage entrepreneurs. Many scholars use the term “student start-ups” when explaining or discussing entrepreneurs among students in HEIs. Bregmann et al. (2016), for example, stated that student start-ups are an important component of overall university entrepreneurship. They emphasised that the determinants of this form of start-up, notably the importance of context effects, are yet unknown. However, it is highlighted that the researcher used the term student entrepreneur, representing all kinds of entrepreneurs in higher education levels, whether startups or nascent entrepreneurs. There is a distinct lack of research that focuses on student entrepreneurs at a higher educational level [45, 53]. Years ago, prominent scholars, Wat and Hawthorn claimed that it was feasible to distinguish between “business entrepreneurship” and “working in companies,” sparking a dispute about the difference between “business entrepreneurship” and “being enterprising” [53]. According to Peter and Lorraine [53], uncertainty around the terminology may have been advantageous at the time. It allowed HEis to apply the Enterprise in Higher Education policy to suit their needs. Meanwhile, Marchand and Sood [45] defined student entrepreneurs as individuals who manage a business on or near campus or lead a campus enterprise (volunteer group) while studying official university education courses. Entrepreneurs in HEIs are often associated with start-ups and early-stage groups with little capacity and are still in a new phase. They have constraints to access other financing such as large-scale debt and equity, especially financing sources found in the later stage and expansion phase, IPO, and the public market. Some constraints result in students’ entrepreneurs at HEIs having difficulty in obtaining funds, which makes them less interested in going further. Many scholars have supported this, and they further argued that entrepreneurs in HEIs have constraints in getting access to debt and equity financing. The essential difficulty factor of HEIs students is comparable to that of Anuar et al.’s study [5]. They discovered that a rigorous policy for entrepreneurs seeking financial aid as capital to launch a new firm stifles their growth. In their study on barriers to starting a business among tertiary students, Anuar et al. [5] discovered that the most microlevel element that may prevent students from starting their business is money. Furthermore, Ooi and Ahmad (2012) discovered these aspects in their study that investigated motives and barriers to becoming entrepreneurs among university students in Malaysian business start-ups. They emphasised that financial and operational issues had hampered students’ efforts to launch new businesses. The findings
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are nearly identical to those of Choi et al. [14], who emphasised the relevance of financial support from universities for entrepreneurial activities that had a major impact on the formation of new enterprises by university students. They discovered that variability in educational support offered by different universities moderated the effect. However, with the arrival of new financing options such as crowdsourcing, student entrepreneurs can pursue debt and equity financing, which can be found in crowdfunding models such as debt or lending-based crowdfunding and equity-based crowdfunding [14, 27, 48]. Following the Bank Negara Malaysia’s (BNM) policy support for alternative financing and the Securities Commission Malaysia’s (SC) introduction of regulatory frameworks for equity crowdfunding (ECF) in 2015 and peer-to-peer financing (P2P) in 2016, a vibrant crowdfunding environment has recently emerged in Malaysia [42]. Its findings indicated that crowdfunding has risen significantly in Malaysia after the implementation of the ECF and P2P regulatory frameworks, as well as the nomination by the SC of six platform operators for each in 2015–2016. Therefore, to achieve the national aspiration, there is also a movement to promote crowdfunding as another option to assist entrepreneurship activities in HEIs. It is essential to know what crowdfunding is and the concept of crowdfunding for HEIs as one of the new mechanisms that help student entrepreneurs get easier access to financing and promote entrepreneurship education. Despite this tremendous potential, start-up entrepreneurs remain wary of crowdfunding, particularly in underdeveloped countries [34]. There has been little research done to investigate the causes of start-up entrepreneurs’ aversion to crowdfunding [34]. Islam et al. [34] identified five challenges to crowdfunding inertia, namely a lack of crowdfunding know-how, a lack of government assistance, security vulnerability, reputation risk, and the unfavourable nature of crowdfunding. It is supported by Mokhtarrudin et al. [48], who discovered that relevant authorities provided insufficient help for marketing appropriate crowdfunding information to assist youth start-ups. According to the study, despite being the first ASEAN country to establish a legal framework for crowdfunding, policymakers have concentrated solely on crowdsourcing for investment purposes, which is irrelevant to the start-up category [48]. Crowdfunding arises from the broader concept of crowdsourcing, which occurs when a corporation outsources some business operations or activities, such as problem-solving and innovation projects, to the community via an open call, typically using a Web 2.0 platform [55, 59]. Crowdsourcing is distinguished by its open call style and large, undefined network of potential labourer’s [29]. According to Schwienbacher and Larralde [60], crowdfunding might be considered a subclass of crowdsourcing, which serves as a useful starting point for defining crowdfunding. However, to fully define it, some qualifications and clarifications are required [6]. Furthermore, because crowdfunding arises from the phenomenon of crowdsourcing [41], the issue of defining crowdsourcing is a recurring theme in crowdfunding research, with writers expressing a variety of views and perspectives regarding this new financial technology [62]. The situation necessitates an artificially limited definition of crowdfunding as a new field of study with evolving theoretical basis [47].
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Crowdfunding is expected to have a positive effect on student-led businesses, investors, and the national economy. There are, however, few comprehensive discussions of the impact of crowdfunding on entrepreneurial and innovation activity at the HEIs level [13, 65], as well as how crowdfunding should be structured and operated in the HEIs environment [32, 46]. Cornell [15] predicted that crowdfunding will have a positive effect on HEI entrepreneurship. The possibilities include providing seed financing to students and serving as a training platform for educators to teach their students entrepreneurial skills [15]. Seed financing is recognised as a significant source of funding for students. It is, however, negligible particularly for Malaysian universities. Limited access to financing for student entrepreneurs restricts their opportunity identification and exploitation, putting their innovative ideas and entrepreneurial ventures at risk [26]. For educators, crowdfunding may aid in planning and preparing students for the real world of entrepreneurship, including developing an obsessive online business pitch, communicating with potential customers or investors, and managing an entrepreneurship project [15]. Crowdfunding is still in its infancy. The most successful and appropriate crowdfunding model for a crowdfunding platform or platform operator has yet to be discovered by researchers [9]. Depending on the incentives offered to funders, crowdfunding can take different forms. Nonetheless, previous research has hypothesised that crowdfunding models can be classified as follows: (1) models based on donations; (2) models based on rewards; (3) models based on lending; and (4) models based on equity [23, 24]. The first two crowdfunding models emphasise patronage or community with no monetary or financial advantages, whereas the latter two emphasise extrinsic investment [8, 39]. Donation-based crowdfunding is considered the original model, followed by lending, reward, and equity-based crowdfunding. The first type of crowdfunding patronage model is donation-based, in which crowdfunders donate their money largely for social and philanthropic objectives with no expectation of a tangible return. Crowdfunding efforts are undertakings that are supported for free in exchange for emotional rewards such as appreciation from donors or the community. GoFundMe, a donation-based platform, for example, enables the concerned community to assist and support individuals, groups, and organisations. Crowdfunders donate their money with no expectation of receiving anything in return from the fundraiser other than a thank you note. Crowdfunders on another platform, ArtistShare, frequently receive a credit listing on the back of an album for their assistance in the making of an artist’s music. Philanthropists are crowdfunders who are inspired to aid social and charitable issues using donation-based crowdfunding platforms [8, 47]. Another crowdfunding technique that follows the patronage idea is reward-based crowdfunding. Crowdfunders are viewed as early customers of a business venture’s products or services in the reward-based crowdfunding model, with crowdfunders receiving only tangible incentives and no cash benefits [38]. In fact, the majority, if not all, reward-based platforms include a “term of use” that specifically stipulates that any potential entrepreneurs who want to raise funds on the platform must not provide any monetary or financial rewards to the crowdfunders. Instead, student entrepreneurs can provide several benefits based on funding levels, such as a basic t-shirt and a more
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advanced reward such as becoming a firm partner or local distributor for the business venture’s products or services. Most reward-based crowdfunding campaigns use the “pre-purchase” or “pre-order” strategy, which allows student entrepreneurs to take advantage of price discrimination by charging a lower price before the objects or services are fully distributed. Furthermore, the pre-purchase strategy allows for the coverage of some or all the early working capital in the manufacturing process by corporate activities [23]. Due to the ease of reward-based crowdfunding and its prepurchase method, the strategy appears to be effective for start-ups, current enterprises, and entrepreneurial individuals with creative ideas looking for funding alternatives [39]. Indeed, as of 2015 [8, 47], one of the sites, Kickstarter, was recognised as the most popular reward-based crowdfunding platform, with over USD2 billion raised from over 10 million users. The following crowdfunding idea is loan-based and focuses on investment. The lending-based crowdfunding approach, also known as crowdlending, peer-to-peer (P2P) lending, credit-based lending, debt crowdfunding, and social lending [21], enables business ventures and crowdfunders to establish debtor-and-lender relationships in the same way that traditional bank loans do [23]. The primary difference is that student entrepreneurs can utilise the platform to raise or borrow funds without providing collateral [15]. Lending-based platforms, like all crowdfunding models, offer matching activity between business initiatives and crowdfunders, but they are not often fund consolidators, as traditional capital providers are, because crowdfunders decide and send funds directly to business ventures [10]. Crowdfunders frequently base their funding selections on the platforms’ credit ratings and receive financial returns in the form of pre-determined interest payments in addition to the principal loan amount. However, lending-based crowdfunding systems can also be operated in such a way that lenders are reimbursed in full with no additional interest payments. Allison et al. [2] cited Kiva.org as an example of a platform for prosocial lending. The final type of crowdfunding is equity-based, in which funders are treated as investors, receiving equity holdings or similar consideration in exchange for their contributions [47]. Equity crowdfunding is heavily regulated [28], and its eventual uptake in comparison to other kinds of crowdfunding is questionable [47]. The reward-based and donation-based models have an advantage over the other three crowdfunding methods in that project owners and supporters have complete control over the platform (Beaulieu and Sarker 2013) [32, 47]. Because these types of crowdfunding models have little or practically no regulations, they are easier to administer and govern because project owners and supporters make most of the decisions (Beaulieu and Sarker 2013) [32, 47, 70]. On the other hand, it could be different in the case of HEIs crowdfunding because the entirety of the new form is based on its connection to the HEIs [32]. As a direct consequence of this, the ecology of the crowdfunding platform inside the parameters of the HEIs is more dynamic. Because of this, it is hoped that this study will shed light on the dynamics surrounding the creation of a platform ecosystem and the empirical phenomenon of crowdfunding as current trends of new entrepreneurial finance tools that assist student entrepreneurs in having easy access to financing within the context of an established organisation, which is HEIs. It seeks to contribute to
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a better understanding of the relationship between organisational control and the ecosystem of a platform, both theoretically and empirically, as well as the function of crowdfunding in enabling such an organisation to either distribute resources in a more efficient manner or obtain them from new sources. Specifically, it aims to contribute to a better understanding of the relationship between platform ecosystems and organisational control. This study also examines the usefulness of the crowdfunding community, which functions as a crowdfunder to aid entrepreneurs (specifically, student entrepreneurs) who are seeking finance. In the context of crowdfunding, the following is the evolving definition of community: Community within crowdfunding is the linking of people with a common cause or shared interest. This linking is expressed through emotional as well as behavioral investment. Community within crowdfunding can exist wholly online or online and offline over the timeline of a project. Community activity can contribute both financially and non-financially to projects [61]
According to Stiver’s [61] empirical research, a community can only be evaluated in the specific context of each project, and community examples correspond to the identification of the definition’s components. There is a wide range of literature on community evaluation, and several qualitative and quantitative metrics have been used to determine whether a community is thriving [33]. Shared context, cooperation, and communication are three of the most frequently cited qualitative indicators for gauging a community’s success [33]. Crowdfunding elements such as these are integral to the success of such initiatives [61]. Crowdfunding communities may consist of people who interact mostly online, offline, or in hybrid formats [61]. Crowdfunding communities, according to Stiver [61], can also exist outside of virtual spaces, including in real life (i.e., crowdfunders as offline volunteers). This is supported by a large body of research. For example, one study found that heavy Facebook users also had more robust offline relationships on campus [19]. Crowdfunding platform community demos show the benefits of both online and offline participation [61]. The crowdfunding community can also gain in several other ways besides financial ones [7]. The existing literature on online communities, however, suggests that crowdfunding could be used to leverage several non-monetary community benefits such as (i) relational benefits to the group (i.e., feelings of support), (ii) benefits of being online (i.e., geographic reach), and (iii) benefits to participants (i.e., empowerment) [33]. Despite this, there is a distinction between the current crowdfunding model, sometimes known as “standalone crowdfunding,” and crowdsourcing for higher education. Therefore, this research puts out a proposition. Proposition 1: The crowdfunding model in higher education institutions would be related to the nature of their community. As for this study, the researcher’s area of inquiry within entrepreneurial finance is related to the alternative sources of financing. Therefore, this study considers a theory related to the entrepreneurial finance issue, which is the Pecking Order Theory. By considering that sources of financing are fundamental to a student entrepreneur, the Pecking Order Theory is explained. The theory suggests that student entrepreneurs have two main options in determining their business financing methods, namely
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internal and external financing [51]. Drawing on the Pecking Order Theory, it is argued that the crowdfunding mechanism is listed as the “last choice” for many businesspeople—that is when they lack internal funds and additional debt capacity [67]. Thus, this study is underpinned by the Pecking Order Theory.
3 Methodology A suitable methodology and instruments for data collection and analysis were used to stimulate the study’s information requirements. Qualitative research, as a primary research method, enables researchers to paint detailed portraits of their subjects. To accomplish the study’s objective and purpose, a case study approach was used in conjunction with semi-structured interviews. Four in-depth case studies (face-to-face interviews using semi-structured interviews) were used to infer the theories (Pecking Order Theory and Asymmetric Information Theory) from practice by examining a new source of entrepreneurial finance for student entrepreneurs in higher education institutions. Thus, the sample for this qualitative data collection methodology was drawn from all four HEIs that were recognised as “the Most Entrepreneurial Public University, Private University, Community College, or Polytechnic” in the 2018 Ministry of Higher Education (MoHE) Entrepreneurial Awards (MEA 2018). The institutions were recognised in three distinct categories: public university, private university, and polytechnic. A total of twenty-three informants participated in the in-depth case study whereby they represented at least one to two implementers and two students (representatives for student entrepreneurs) for each HEI visited. The implementers were categorised into a director of entrepreneurship centre, a founder of social entrepreneurship, an assistant registrar, and a manager of entrepreneurship centre. The reason for categorising the implementers was to get a variety of views and perspectives from different levels of organisation chart and because of their experience in conducting entrepreneurial programmes. In addition, the students were among those who were still studying and actively engaged in business, as well as alumni who had been active in business since the time of their studies. Most alumni were running their businesses within the institutions and had a direct relationship with the implementers. The other four informants were among industry players, policy makers, and ministry officers. The main concern for interviewing three different groups of informants was to achieve multiple sources of information to form a data triangulation that could help to increase construct validity. According to Yin [68], case studies are preferable when the researcher wishes to expand and generalise theories (analytic generalisation) rather than simply identify frequencies (statistical generalisation). Similarly, Eisenhardt [18] asserted that there is no universal format for case study analysis. Typically, the procedure begins with the creation of a detailed description of each case, which serves as the basis for developing insights [18]. While Yin [69] made this point, qualitative data can be collected in a variety of ways. Thus, this study was based on the interviews conducted in the
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sampled HEIs. Thus, case study research is a broad research technique that encompasses the development of a theoretical model, the collection of data, the analysis of data, and the design of research models. As a result, the following procedure for analysing case studies is followed. Following the recording of the interview, it was transliterated and coded using ATLAS.ti, a qualitative data analysis software application. The transcripts were initially coded instinctively but were recycled as new codes evolved and improved accuracy. A cross-case analysis was conducted to determine whether the conclusions drawn from the individual case studies were consistent. ATLAS.ti has two primary advantages. To begin, it improves one’s ability to deal with a wide variety of related subjects with a high degree of precision and flexibility. Second, while coding the data, it enables the researcher to carefully develop the theoretical interpretation. This improves the accuracy of inductive and exploratory analysis. In the study, processing the data twice resulted in a complete understanding of each case. Additionally, a pattern matching technique was used as the primary mode of analysis to look for repeating patterns. The researcher was able to examine the patterns of outcomes for both dependent and independent variables generated by the study framework to determine whether a pattern could be used to make analytic generalisations. As a result, the analysis was chosen to assist the researcher in describing data trends and identifying any correlations between variables (themes). Due to privacy concerns, the researcher maintained the strictest confidentiality regarding the personal information of all four HEIs. As a result, the research conducted did not include the names of the HEis.
4 Findings Finding 1: Categories of crowdfunding and crowdfunding models Firstly, the article discusses the various types of crowdfunding models available and their implementation in Malaysian HEIs. Crowdfunding platforms fall into three distinct categories: philanthropy, patronage, and investment crowdfunding. Four crowdfunding models are included in this category: donation-based crowdfunding is classified as philanthropy, reward-based or pre-purchased crowdfunding is classified as patronage crowdfunding, and lending- and equity-based crowdfunding are classified as investment crowdfunding. The first model is donation-based crowdfunding, in which supporters donate funds voluntarily and with no expectation of receiving anything in return. The second type of crowdfunding is reward-based, also known as pre-purchased crowdfunding, which enables entrepreneurs to sell their product (or, more precisely, prototype) prior to its creation. In the study, the researcher discovered several HEIs that used a hybrid crowdfunding model, which is most similar to the donation and pre-purchased crowdfunding models. Sponsorship provided by certain parties, particularly collaboration partners, falls under the category of donation-based crowdfunding. While investing in prototypes provided by collaborators is classified
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Fig. 1 Crowdfunding model for HEIs
as pre-purchased crowdfunding, investment crowdfunding is classified as investment crowdfunding (Fig. 1). The next model of crowdfunding is based on lending. The lending-based crowdfunding model, also referred to as crowdlending/peer-to-peer (P2P) lending/creditbased lending/debt crowdfunding, or social lending, establishes a debtor–lender relationship between a business venture and crowdfunders, like that of a traditional bank loan. The only distinction is that student entrepreneurs can use the platform to raise or borrow funds without providing collateral. As is the case with all crowdfunding models, lending-based platforms facilitate matching between business ventures and crowdfunders, rather than acting as fund consolidators, as traditional capital providers do, whereby crowdfunders decide and provide funds directly to business ventures. Crowdfunders typically make funding selections based on a credit grade granted by the platforms and earn money through pre-determined interest payments in addition to the main loan amount. Lending-based crowdfunding systems, on the other hand, can be set up in such a way that lenders are reimbursed in full without incurring additional interest charges. The best illustration demonstrates a platform for prosocial lending. The final type of crowdfunding is equity-based, in which funders are treated as investors and are compensated with equity stakes or other forms of compensation in exchange for their funding. Equity-based crowdfunding is heavily regulated, and the approach’s eventual adoption in comparison to other forms of crowdfunding is uncertain. As a result of the case studies, HEIs collaborate with established crowdfunding operators to implement their crowdfunding platform, believing that risk-shifting to a third party is the best practice. Finding 2: Crowdfunding community in the context of Malaysian HEIs The case studies identified two distinct types of crowdfunding communities in the context of higher education institutions, namely (i) internal crowdfunding communities and (ii) external crowdfunding communities, based on the chosen crowdfunding model. The researcher described the relationship between crowdfunding and the crowdfunding community category practised in HEIs in this study. The case study discovered that the type of crowdfunding model chosen was determined by the types of crowdfunding communities involved. One of the primary reasons they chose
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the three crowdfunding models was that they catered to two distinct crowdfunding communities: internal and external communities. Based on Table 1, the first case study (HEI 1) found that they preferred to use both crowdfunding communities. It is because the community from both sides (internal and external) was willing to donate and invest in their project based on their needs and interests. The study also found that HEI 1 was the one that was very proactive in implementing online crowdfunding by using all three forms of crowdfunding: donation-based, reward-based, and equity-based. Meanwhile, three additional cases (HEI 2, HEI 3, and HEI 4) indicated that they felt more secure involving the internal crowdfunding community rather than the external community (people outside campus). Numerous points regarding external parties and funding must be emphasised. As a result, they preferred to start with the internal crowdfunding community and then involved external parties if additional funding was required. They would, however, accept anyone willing to assist in contributing funds if it met their needs. For instance, HEI 2 was more at ease in encouraging their internal crowdfunding community to raise funds for their civic crowdfunding initiative (i.e., launching crowdfunding to improve their basic facilities on the campuses). Similarly, HEI 4 encouraged its students to focus their fundraising efforts on the internal crowdfunding community for their social entrepreneurship project. The reason for this was to avoid the issue of power abuse in obtaining funds. Meanwhile, HEI 3 was more likely to delegate all decision-making to the students (student entrepreneurs) involved, allowing them to exercise their creativity in gaining trust to obtain funds from their internal or external crowdfunding community. According to the case studies, internal stakeholders directly involved with HEIs included the university’s seed fund committee, faculty members, staff, and other students and alumni interested in supporting their friends’ ventures. Meanwhile, external stakeholders such as venture capitalists, angel investors, and the public who were not directly involved with the HEIs were also potential supporters of the entrepreneurs’ projects and initiatives. External stakeholders, on the other hand, had a direct connection to HEIs, such as those who have a legal and mutual agreement to support the crowdfunding platform. External stakeholders that were frequently involved as actors in HEIs through strategic alliance initiatives provide both financial and non-financial benefits, according to the case studies. Among the stakeholders were government agencies, financial institutions, and private businesses. This study detailed the advantages they received from their stakeholders, colloquially referred to as the crowdfunding community. This study discovered that the crowdfunding community benefitted both financially and non-financially through a variety of different agencies. To illustrate the benefits of the crowdfunding community (whether internal or external) based on the parties that collaborate with HEI, the researcher classified the agencies according to their primary functions, including those that contributed financial resources, those that made policy, and those that contributed expertise. Banking institutions, for example, typically provided funding. In comparison, other government agencies (for example, the board of farmers’ organisations) contributed only expertise (as a mentor or executor) to the HEIs student entrepreneurs.
HEI 2 ✓ –
HEI 1 ✓ ✓
Types of crowdfunding community
Internal community
External community
Table 1 Types of crowdfunding community in Malaysian HEIs HEI 3 –
✓
HEI 4 –
✓
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5 Discussion These findings corroborated the study by Belleflamme et al. [7], emphasising the importance of community in determining the financial success of a project. Iriberri and Leroy [33], on the other hand, confirmed that existing online community research indicated a broad range of non-monetary benefits to the community that could be leveraged through crowdfunding. Additionally, as an implementer, HEIs’ goal is to engage as many members of the community as possible in HEIs’ crowdfunding. However, selecting a crowdfunding community is critical and should align with the HEIs’ crowdfunding platform implementation goals. Marta [46] and Ingram et al. [32] demonstrated that crowdfunding for a higher education institution had a specific focus and purpose: not only to raise funds for projects, but also to expose young alumni to higher education affairs to instil philanthropic values in the alumni. As Ingram et al. [32] pointed out, it is hoped that alumni donors or crowdfunders will continue to provide support and thus maintain a positive relationship with higher education. Maintaining relationships, as suggested, is critical to ensure good cooperation with outsiders, particularly past students, and to attract more significant contributions in the future. Thus, scholars explained that HEIs have collaborated with both their internal and external communities to ensure the success of their crowdfunding campaigns. This is also supported by Cho et al. [13], who indicated that universities were pursuing crowdfunding as a strategy for connecting non-traditional crowdfunders with outside alumni, including students. Prior studies also emphasised that there were limited studies that discussed the specific types of crowdfunding sources for HEIs. The scholars related these types of crowdfunding sources with the types of crowdfunding communities. For example, Man et al. [44] found the internal elements in the HEIs, are the same among the internal communities such as students, faculty, and staff. Their study discussed crowdfunding from an Islamic perspective considering the intentions of the internal crowdfunding community to support the crowdfunding projects, in the HEIs, due to the manifestation of the type of crowdfunding act, doing charity (sadaqah jariyah), for the longstanding Muslim unity. However, these case studies found that the crowdfunding platforms for HEIs were also aimed at obtaining funds above their limit by expecting the platforms to reach as many crowds as they could, including the external community. This study observed the idea that the community members were those people who had a close relationship with the HEIs as well as the community outside the HEIs. In addition, crowdfunding in HEIs could also categorise external sources of funds if they involve the participation of the public on a larger scale by encouraging the participation of the external crowdfunding community. The external crowdfunding community for HEIs is mostly their current collaborative partners as well as other public communities. Thus, this study viewed the idea that the community members were those who had a close working relationship with the HEIs. This was further explained by Cho et al. [13], who stressed that universities were exploring crowdfunding as a strategy to connect with non-traditional donors beyond the alumni. By
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examining the psychological perspective in their study, Cho et al. [13] also found that the motivations of the supporters to donate depended on their intention to support the university’s crowdfunding programme. The case studies were also in accordance with early observations by Xavier et al. [67], who reported crowdfunding was considered one of the external financing resources involving many types of investors. The study focused on equity crowdfunding and discussed crowdfunding from a financial perspective by considering the Pecking Order Theory, which also stresses that when entrepreneurs lack internal funds, or additional debt capacity, they tend to consider crowdfunding platforms as a “last resort”. Therefore, based on this discussion, it was concluded that crowdfunding is one of the new entrepreneurial finance sources that is categorised as an internal source of financing as well as an external source of financing by taking into consideration who the contributors are, and which groups of people will contribute to the HEIs’ crowdfunding project. Additionally, the size of the crowdfunding community is critical to the success of crowdfunding campaigns. A larger crowdfunding community will aid entrepreneurs in obtaining the funds. It also supports the argument by Belleflamme et al. [8] that if the platform already has a sizable number of participants or registered members (i.e., stakeholders), the likelihood of funding is increased. Additionally, Lehner [40] stated that opportunities must be communicated to many diverse individuals within the crowdfunding ecosystem. The author summarised the findings in a scheme of crowdfunding’s inner workings and then discussed them in a different context, that of social entrepreneurship, with a focus on opportunity identification. Because the opportunity is not limited to entrepreneurs, the crowdfunding community must recognise and evaluate it. The crowdfunding community members, which aspire to provide insightful support, will recognise the opportunity to assist entrepreneurs in need of initial capital, particularly student start-ups in HEIs. Bukhari et al. [12] added that the crowdfunding effort’s success was contingent on the culture of the crowdfunding community in which the initiative operates. Their study examined crowdfunding projects within a religious community context, utilising philanthropic crowdfunding platforms, demonstrating that the crowdfunding community valued entrepreneurs’ credibility as a critical factor in the crowdfunding’s success. According to the fundamental principle of philanthropic crowdfunding, those willing to contribute are those who have demonstrated a willingness to help others without expecting anything in return [31, 44]. According to the case studies, few HEIs engaged in philanthropic or donation-based crowdfunding to benefit many students on campus, particularly asnaf students. They primarily practised zakat and sadaqah through a crowdfunding model. These findings corroborated those of Man et al. [44], who discovered that philanthropic crowdfunding was frequently used to fund HEIs’ activities and programmes. They concurred that the primary goal of HEIs’ traditional crowdfunding model was to instil philanthropic values in their internal crowdfunding community. Additionally, the platform’s size would encourage more entrepreneurs to participate and launch crowdfunding campaigns, thereby promoting entrepreneurship activities within HEIs. However, the university’s administration was responsible for allowing external parties to participate in the crowdfunding platform. The external
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parties were frequently involved as actors in HEIs through strategic alliance initiatives, as revealed by the case studies. According to Sandhu et al. [58], entrepreneurs would face difficulties in the absence of social networks. Additionally, they reported that most business relationships in Asia were heavily reliant on social media, which was also evident in the Malaysian business environment. Indeed, Lehner [40] supported this. In the context of crowdfunding, crowdfunded initiatives rely heavily on networks, which are primarily connected via the Internet. However, involving external parties may require additional effort, particularly in terms of maintaining and strengthening the university’s relationship and governance aspects, as well as reducing any bureaucratic barriers to participation. The case studies corroborated the findings of Mokhtarrudin et al. [48], who indicated that the relevant authorities lacked the information necessary to facilitate crowdfunding as a new source of entrepreneurial finance. This was because of the ambiguous procedures imposed on various forms of crowdfunding. It is backed up by Saadat et al. [57], who found that the primary issue with the current crowdfunding scene in Malaysia (and globally) was its lack of regulation. Some of the crowdfunding projects have been exposed as fraudulent. According to Saadat et al. [57], without the ability to regulate crowdfunding projects, anyone can host any crowdfunding projects involving unethical or improper behaviour that may have a negative impact on the local society. Therefore, it is strongly recommended that the HEIs’ crowdfunding platform partner with individuals who have excellent credit (i.e., suppliers of materials for students’ projects, logistics companies to ensure a seamless product or reward delivery process, angel investors, venture capitalists, and other entrepreneurship-related agencies).
6 Conclusion The purpose of this paper was to investigate a novel source of entrepreneurial finance for student entrepreneurs in Malaysian HEIs. This study aimed to better understand the mechanisms underlying the new novel concept of online funding known as crowdfunding, which served as a new entrepreneurial finance tool that enabled entrepreneurs to access capital more easily. The elements of crowdfunding for higher education institutions, such as categories and types of crowdfunding models, were correlated with the availability of their crowdfunding community. To begin, the study discussed the various types of crowdfunding available and their practices in HEIs, including philanthropy, patronage, and investment. Second, the research’s primary findings were based on the three major categories of HEIs’ crowdfunding. Donation-based crowdfunding was one of four crowdfunding models. Patronage crowdfunding encompassed philanthropy, reward-based or pre-purchased crowdfunding, while investment crowdfunding encompassed lending- and equitybased crowdfunding. Thirdly, the findings demonstrated how HEIs chose appropriate crowdfunding models based on the characteristics of their crowdfunding community. As a result, this study supported Proposition 1: The crowdfunding model used by higher education institutions was related to the community’s nature. Whichever
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crowdfunding strategy an entrepreneur chooses, he or she must grasp who the crowdfunding community is. This is because the crowdfunding community will assist entrepreneurs in achieving their initial goals. The importance of selecting the appropriate crowdfunding model must be emphasised to ensure that the objectives can be met. Simultaneously, entrepreneurs must understand the crowdfunding community upon which they can rely to accomplish those goals. This study revealed how HEIs had successfully capitalised on crowdfunding with their ability to not only raise funds, but also to gain support (i.e., expertise, networking, and other non-financial support) from HEIs’ stakeholders. Higher education institutions were the best place for the application of crowdfunding because of the nature of the HEIs to receive many types of support from various stakeholders to run their entrepreneurship operations. For example, students, alumni, and staff were among the HEIs stakeholders that contributed to the entrepreneurship operations. This study revealed that the HEIs can integrate many types of crowdfunding members, who were also known as the crowdfunding community to form the best practices of the crowdfunding mechanism. As for this current study of crowdfunding in a general context, scholars only discussed the crowdfunding community without classifying it into specific groups. It is suggested that no works prior to this research had brought together the language and concept of community within crowdfunding with any detail Stiver [61] (Stiver et al. 2015). This study contributed to the body of knowledge of entrepreneurial finance research through its understanding of how the relationship between types of financial resources, whether in the category of internal financial resources if it involved the internal community of crowdfunding only or it was categorised as external sources if it involved the external community of crowdfunding, in the context of HEIs, can be integrated by looking through the lens of the Pecking Order Theory. This study has practical implications for stakeholders in HEIs. The study’s primary value was in providing useful information to stakeholders in HEIs, including implementers, students or beneficiaries, staff, alumni, industry players, and policymakers. The information provided was intended to increase awareness of crowdfunding as a new source of entrepreneurial finance for student entrepreneurs in Malaysian HEIs. As a result, identifying the elements that contributed to an understanding of crowdfunding categories, model types, and the relationship between the crowdfunding community in Malaysian HEIs can aid implementers and other stakeholders in their efforts to use crowdfunding as a source of financing for the sustainability and expansion of business ventures, particularly among high school students. Finally, defining the components of crowdfunding at the higher education level can aid in identifying current crowdfunding practices in Malaysian HEIs. Despite its intriguing empirical findings, the study has some limitations. On the one hand, the study excluded the entirety of Malaysian HEIs. Instead, this study selected only one institution from each category of HEIs (i.e., public university, private university, college community, and polytechnic). By involving many HEIs, the researchers may obtain more conclusive and comprehensive findings about the various crowdfunding models and community practices in Malaysian HEIs. These studies paved the way for future research in the field of entrepreneurial
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finance. To begin, researchers in other countries can replicate this study to assess the new entrepreneurial finance source for student entrepreneurs in HEIs. Additionally, researchers can conduct cross-country comparisons. Second, future researchers may wish to inquire about how universities can identify the most effective crowdfunding models for entrepreneurial activities and student entrepreneurs. This study also paved the way for fascinating future research with significant policy and management implications in a variety of contexts. Acknowledgements This study was supported and funded by the Fundamental Research Grant Scheme (FRGS), Ministry of Higher Education Malaysia [grant numbers: FRGS/1/2017/SS03/ UMK/03/7]. Any opinions, findings, and conclusions or recommendations expressed in this material are those of the author(s) and do not necessarily reflect the views of the Ministry of Higher Education Malaysia.
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Digital Wellbeing: Does It Matter in Malaysian Education? Aziman Abdullah , Nur Syuhada Mohd Zaidi , and Abdul Karim Asar
Abstract One of the key issues highlighted in the recent United Nation Education Summit is digital transformation of the education system. Malaysia, through its recent policy in Malaysia Digital Economy Blueprint (MyDIGITAL), has outlined its strategy to enable all school students at the primary and secondary levels to have access to digital learning experience individually. Meanwhile, at the tertiary level, it is compulsory for any academic programmes to integrate digital skills as a part of their programme learning outcomes based on the latest Malaysia Qualification Framework (MQF) since 2018. These national directive strategies require a wellbalanced approach towards sustainable and impactful digital learning experience when acquiring digital skills. However, many education institutions at the primary, secondary, and tertiary levels are struggling to embrace digital transformation. Therefore, this paper reviews the existing literatures on digital transformation in the context of Malaysian education systems to identify the missing component of digital wellbeing. It highlights the needs for the application of digital wellbeing for education systems towards sustainable development. Keywords Digital learning · Digital wellbeing · Digital transformation
A. Abdullah (B) · N. S. Mohd Zaidi Faculty of Computing, Universiti Malaysia Pahang, 26600 Pekan, Pahang, Malaysia e-mail: [email protected] N. S. Mohd Zaidi e-mail: [email protected] A. K. Asar Centre for Human Sciences, Universiti Malaysia Pahang, 26300 Kuantan, Pahang, Malaysia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_63
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1 Introduction In many cases, digital technology, particularly with the Internet, has the potential to increase productivity and quality in education systems. Therefore, United Nations (UN) reaffirms digital education as a public good [1]. In 2022, United Nation organised the UN Transforming Education Summit where they highlighted the critical needs to harness the power of the digital revolution to ensure quality education is provided as a public good and a human right [2]. On the other hand, technology and digital services have the potential negative impact on people’s emotional, physical, and social wellbeing. To attain digital wellbeing and mindfulness, it is essential to use the technology by being fully aware of the purpose, the good and the risk by getting the right balance when engaging with the digital technology. Therefore, it is critical to question how digital technology adoption in education affects the user’s digital wellbeing. Are we aware of the risk of abuse, misuse, and overuse of digital technology even in the context of education?
2 Literature Review 2.1 Digital Wellbeing There are various definitions of the term “digital wellbeing”. Paul Marsden, a psychologist specialising in consumer behaviour, wellbeing, and technology outlined 29 different definitions of digital wellbeing [3]. In the context of higher education, the Joint Information Systems Committee (JISC) in United Kingdom (UK) defines digital wellbeing “as a term used to describe the impact of technologies and digital services on people’s mental, physical, social and emotional health” [4]. According to JISC’s report on student and staff wellbeing [5], there are two perspectives on how digital wellbeing can be modelled, which are on individual and organisational model. On the individual model, there are four aspects of digital wellbeing from the JISC model, which outlines the first aspect as the personal awareness and capacity to change a user’s digital practices. The awareness enables the user to determine how technologies can be used to improve digital wellbeing by addressing the positive and negative impacts of technologies on their wellbeing. In other words, a fundamental element that governs the way how the user engages with technology is the awareness about the benefits and risks of using the technology. Next, on the organisational perspective, the orientation is more on the providers of digital systems, services, and content to assure they are well managed, supported, accessible, and equitable through user empowerment. In other words, the institution requires to have a proper operating and monitoring mechanism to manage healthy user engagement with digital technology. Joint Information Systems Committee reported that there are four principles aiming to tackle the challenges related with
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wellbeing in the higher education from the organisational perspective [5], which are whole population, whole life, whole curriculum, and whole community. Digital wellbeing is an emerging concept about the impact of digital technologies on human wellbeing. It is quite complex yet must be addressed since the benefits of digital technology adoption in every aspect of life are unquestionable. It becomes more significant when government, industry, and society at large are gearing towards digital transformation [6, 7]. In fact, many governments in the world have developed their policies and practices on digital education [8]. Therefore, this study furthers the review of related government policies associated with digital adoption in Malaysian education.
2.2 Malaysia Digital Economy Blueprint (MyDIGITAL) The Malaysia Digital Economy Blueprint (MyDIGITAL) is a government policy that plots the course of the development of the digital economy. The policy contributes to the development of the Malaysian economy as a foundation to promote digital transformation in Malaysia and to close the digital gap. The policy stands for the government’s hopes for success to make Malaysia a high-income and digitally driven nation. To achieve the aspiration, there are six thrusts where one of them is associated with digital education. There are six digital education initiatives, as shown in Table 1. While it is critical for education institutions at all levels including schools and universities to embrace digital transformation to move forward, the new MyDIGITAL policies are basically a continuity of the existing national education policies known as Malaysia Education Blueprint (MEB). MyDIGITAL addresses the significance of digital education in achieving the aspiration of Malaysia new digital economy.
2.3 Digital Education Policy in Malaysian Education Systems The use of digital technology in the Malaysian education systems is not a new government directive or policy. In fact, the concept of smart school [10] in 1999 starting with 87 schools as a pilot project was where the digital education started in Malaysia. However, the expansion of Internet coverage as well as new technologies such as web streaming, smartphone, augmented reality, Internet of Things (IoT), and the evolution of open-source software have rapidly catalysed the global policymakers to address the potential benefits of digital education. In fact, digital education has been declared as a public good instead of a privilege or exclusive by the Malaysia government in their latest education policies known as MEB. Table 2 shows the digital education initiatives in the Malaysian recent education policies.
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Table 1 Malaysia digital economy and initiatives of digital education MyDIGITAL thrusts [9]
Initiatives of digital education
i. Drive digital None transformation in the public sector ii. Boost economic competitiveness through digitalisation
None
iii. Build enabling digital infrastructure
None
iv. Build agile and competent digital talent
1. Introduce “My Device” programme to ensure all students in Malaysia can access digital learning 2. Introduce digital packages to ensure all schools in Malaysia have good connectivity 3. Adopt digital technology through collaboration with the private sector to enhance overall learning environment 4. All schools in Malaysia to be Digital Maker Schools 5. Introduce “My Digital Teacher” programme to encourage teachers to fully embrace the use of digital tools and technology 6. Expand an open-access knowledge bank to house teaching materials for educators
v. Create an inclusive digital None society vi. Build trusted, secure, and 1. Implement netiquette modules as part of national education ethical digital environment curriculum by 2025 with the objectives of instilling students with the appropriate netiquette
Table 2 Digital education in national policy of education Level
National policy
Digital education
Primary and secondary
Malaysia Education Blueprint [11]
• • • •
Tertiary
Malaysia Education Blueprint (Higher Education) [12]
• Digital skills through national adoption of MQF • Competently use a wide range of suitable digital technologies and appropriate software to enhance study, research, and/or work/practice
Internet connectivity: At least 10 Mbps 1 device/student (secondary) Leveraging ICT for learning At least one video conferencing facility to support distance learning • Providing network infrastructure and a learning platform through 1BestariNet • Delivering more ICT devices
2.4 Benefits of Digital Technology in Education Education today demands learners and educators to collaborate with the global community through digital technologies. The availability and the access to online
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Table 3 Benefits of digital technologies Digital technologies
Benefits in education Primary and secondary
Tertiary
Digital classroom
• Support multifaceted interaction [13]
• Support personalised learning experience [14]
Online collaborative tools
• Develop higher level of reasoning [15]
• Promote critical thinking [16]
Digital content
• Promote creativity [17]
• Empower student for curriculum co-creation [18]
Digital assessment
• Promote multimodality [19]
• Promote student success with learning analytics [20]
Assistive and accessibility tools
• Assist student with disabilities [21, 22]
platforms enable the educators to conduct classes, share educational resources, perform assessment, and manage the day-to-day activities of academic institutions. The global COVID-19 pandemic forces the institutions to adopt online teaching and learning. It is claimed that digital technologies have emerged as the saviour of education during the hard time of pandemic [13]. There are many studies in literature investigating the benefits of digital technologies in education. Table 3 shows a sample of existing studies based on the type of digital technologies and their educational benefits. Many studies justify the potential of digital technology in education to improve learning experience [23] and educational outcomes [24]. In contrast, the use of digital technology in education also has the potential to cause undesirable effects. In fact, studies have reported that many education institutions are struggling to embrace digital transformation [25] due to human factors apart from the financial and technological aspects. One of the human factors is the user behaviours such as abuse, misuse, and overuse of digital technology that lead to negative impacts on user wellbeing.
2.5 Abuse, Misuse, and Overuse of Digital Technology in Education Abuse of technology can be understood as an improper use of devices such as mobile phones, computer, and Internet to access illegal or inappropriate content, which may be counterproductive to students [26]. Examples include using mobile phones although it is not allowed such as during examination and recording a digital video in classes without consent, which could cause misunderstanding. A study [27] on 614 adolescents aged 13–18 attending secondary education in Spain indicated that there was a direct connection between smartphone abuse among teenagers with dysfunctional impulsivity, a tendency to act with less forethought than most people of equal ability when this tendency was a source of difficulty [28]. In the context of higher
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education, a study on 411 undergraduate students found that approximately half of the sample met criteria of Internet abuse [29]. Next, misuse of technology can be defined as using information or digital content from or to the Internet that is neither meant for student community nor for learning purposes [30]. This may be classified as unproductive or underproductive. For example, a literature revealed that 92% of university students admitted to texting while in class [31]. Such a behaviour is not only unproductive for learning but could also become a distraction to other students as well as the instructor. If the situation happened in a continuous manner, there could be a possibility to induce stress that leads to anxiety and depression when it comes to poor performance or attainment of the learning outcomes. Overuse of digital technology can be described from an addiction perspective. Technology addiction can be defined as an inability to control how individuals engage with technology because of emotional, psychological, social, environmental, and biological factors [32]. A direct indicator to measure overuse or technology addiction is based on the duration a user is engaged with technology. In India, a study revealed that the number of hours using mobile phones was a major factor for children to have visual acuity on eyes’ efficacy [33]. In the context of higher education, overuse of technology could disturb sleep quality, which may lead to mental illness such as depression [34]. Numerous studies have revealed the risks of abuse, misuse, and overuse of digital technology that affect the user wellbeing. Table 4 shows the existing studies that indicated the type of user behaviour with technology and how it is associated with potential risks on their wellbeing. These risks are segmented into two categories of education system. Table 4 Potential risks based on user behaviour with digital technology User behaviour
Potential risks according to categories of education system Primary and secondary
Tertiary
Abuse
• Dysfunctional impulsivity [27]
• Insults, harassment, coercion, or threats [35]
Misuse
• Cyberbully [36]
• Digital distraction [37] • Cyberbully [38]
Overuse or addiction
• Aggression [39] • Obesity [40] • Depression, anxiety, insomnia severity, and impulsivity [41]
• Depression, anxiety, and stress [42] • Obesity [43] • Poor sleep quality [44]
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3 Further Contributions Digital wellbeing in education is an emerging theory that integrates the theory of digital or computing with humanity. Computer scientists address this overlapping concept as humanities computing, which is also referred to as digital humanities [45]. While industry and community at large are widely adopting digital workplace and digital lifestyle, engaging with digital technology is inevitable. A proper understanding of healthy digital technology usage should begin within the education institutions. This is where this study contributes, i.e. by addressing the needs for digital wellbeing inclusion in Malaysian education system and policies. As a matter of fact, digital wellbeing should be a part of the quality standards in digital transformation strategy of education that is regularly audited or assessed since the digital technology itself is rapidly evolved. The inclusion of digital wellbeing can be modelled similarly like the ethical framework of artificial intelligence in education [46]. On a practical aspect, the contribution of this study can be evaluated on teaching and learning practices among educators and students in education institutions. Instead of actively promoting students to engage with digital technology, it is critical for the educators to ensure that the teaching and learning activities using digital technology will not harm the student’s wellbeing. Issues such as technostress and cyberbully when adopting digital technology should be carefully considered in digital education, not only the risks on the students but also on the educators and other stakeholders as well. For example, some studies [47, 48] reported the issues of unequal learning impact of COVID-19 on student learning. This paper highlights the need for a wellbalanced approach by evaluating the benefits and associated risks when adopting digital technologies in teaching and learning practice. This strategy is critical for Malaysia to move forward towards inclusive, sustainable, and impactful learning experience in digital education.
4 Conclusion Based on economy and education policies in Malaysia, digital education is the future and the way forward for social development. However, there is a glaring absence of focus on digital wellbeing in Malaysian education policies and research. Therefore, it is imperative that scholars and policymakers address digital wellbeing as a serious consideration in digital education for more inclusive, sustainable, and fulfilling MyDIGITAL aspiration. Further research to investigate digital wellbeing on unhealthy or unethical user’s behaviour through case studies can also be done in the future research. Acknowledgements The authors gratefully acknowledge the financial support from the Fundamental Research Grant Scheme with project reference FRGS/1/2021/ICT03/UMP/03/1 from the Ministry of Higher Education and Universiti Malaysia Pahang (RDU210155).
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University Entrepreneurship Education Strategies and Entrepreneurial Motivation: A Case Study in a Malaysian Private University Siti Zakiah Melatu Samsi , Law Kah Meng, and Hasmida Jamaluddin
Abstract This study investigates the influence of a university’s entrepreneurship education strategies on students’ entrepreneurial motivations. Using the Expectancy Theory of Motivation as the theoretical lens, the study demonstrates a positive relationship between entrepreneurship education and entrepreneurial motivation. Applying qualitative case study research approach, semi-structured interviews were conducted with academic staff and students at Multimedia University Malaysia. The objectives of this study were (i) to explore the university’s strategies in integrating entrepreneurship education into its teaching and learning and (ii) to determine how these strategies instil students’ entrepreneurial motivation. The results revealed that university strategies integrating hands-on entrepreneurship activities into the teaching and learning environment have imparted pertinent entrepreneurship-related knowledge and skills to students, thereby influencing them to be entrepreneurial. In conclusion, expectancy, instrumentality, and valence are the drivers of entrepreneurial motivation gained from entrepreneurship education at the university. Keywords Entrepreneurship education · Entrepreneurship · Entrepreneurial · Motivation · Expectancy Theory
1 Introduction Malaysian graduates are concerned about the country’s high unemployment rate in recent years. Despite the large number of graduates produced by Malaysia’s colleges and universities each year, only a low percentage of them are hired [1]. Self-employment is one way to reduce unemployment [2]. However, it is difficult to motivate graduates to become entrepreneurs as they expect to be hired either by S. Z. M. Samsi (B) · L. K. Meng · H. Jamaluddin Multimedia University, Melaka, Malaysia e-mail: [email protected] H. Jamaluddin e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_64
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public or private firms upon graduation [3]. Therefore, universities have the responsibility to design an interesting entrepreneurship curriculum as part of entrepreneurship education. The goal of entrepreneurship education is widely understood to be the dissemination of entrepreneurial knowledge, assessment of and strengthening of risktaking capacity, development of entrepreneurial competencies, and reinforcement of behaviour towards change [4]. It may foster economic growth, job creation, societal resilience, personal growth, and equity by equipping students with the needed information, skills, and incentives to thrive as entrepreneurs. This study aims to discover the university strategies for providing an impactful entrepreneurship education package, the student’s experience as part of the system, and how the strategies develop their desire to be future entrepreneurs.
2 Literature Review Entrepreneurship education is a strategic intervention that aims to increase students’ entrepreneurial behaviour by exploring their entrepreneurial potential [5] to enhance entrepreneurship knowledge and skills. As a result, entrepreneurship education has advanced as a means of educating, shaping, and developing students’ entrepreneurial competence through practical engagement and experiences gained during classes [3]. It can be defined as a collection of formalised lessons, training, and coursework that promote entrepreneurship awareness, business creation, or small business development [6], thereby assisting students to develop their entrepreneurial motivation, spirit, and abilities [7]. Entrepreneurship education is regarded as one of the most important factors influencing students’ career choices in the twenty-first century [8].
2.1 Entrepreneurship Education in Malaysia Entrepreneurship education is being introduced in Malaysia as part of the National Higher Education Action Plan to encourage innovation, spur economic growth, and provide job opportunities [9]. The government appears to start recognising the need to accelerate entrepreneurship education given Malaysia’s commitment to becoming a developed nation as announced in Vision 2020 policy [10]. All students enrolled at public and private universities in Malaysia are required to take entrepreneurship courses to raise awareness regarding the value of entrepreneurship education and the development of entrepreneurship among students to reduce unemployment in Malaysia and increase the proportion of entrepreneurs [11]. Universities play an important role in strengthening sustainable entrepreneurial societies and equipping them with the means to compete in a highly globalised market through entrepreneurship education [10]. As a result, local universities in Malaysia have established
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entrepreneurship centres to facilitate the incorporation of entrepreneurship education into their curriculum [11]. Curriculum plays a crucial role in determining the orientations and direction of activities undertaken by universities [12]. It also standardises the entrepreneurial learning experiences and practices offered to students [13]. Students’ perception of entrepreneurship and their awareness of other employment alternatives are shaped in significant part by entrepreneurship courses in higher institution education [8]. The curriculum may include lessons on how to handle case studies to solve real-life problems during class discussions so that students can understand entrepreneurial strategies and educate themselves about both successes and failures. It may also give students the chance to evaluate business concepts, develop operational plans, fund and launch ventures, and grow new businesses [14]. The core of an entrepreneurship curriculum is to reconstruct entrepreneurial-related knowledge and experiences and to allow learners to gain intelligence by understanding subsequent related knowledge and experiences [15]. Entrepreneurship courses provide students with strong mental motivation to grow their interests and passion for entrepreneurship [16]. Therefore, a comprehensive entrepreneurial curriculum should consist of concepts, attitudes, and skills that students can internally adopt as a part of an individualised process.
2.2 Entrepreneurship Motivation An individual’s motivation refers to the driving force for accomplishment towards a specific goal that is exemplified through their behavioural processes [16]. In other words, entrepreneurial energy is related to doing activities that contribute to satisfying needs and reducing imbalances by creating a business or an enterprise [3]. Simply put, motivation is driven by energy, direction, perseverance, and intention as human behaviours are partially predicted by goals and motives. This indicates a connection exists between behaviours, motivation, and intentions since motivation drives our actions [17]. It is part of the entrepreneurship motivational process of one’s selfencouragement and external or internal factors that enable the person’s desire to pursue entrepreneurial activities [3]. The knowledge acquired and skills developed during the entrepreneurship curriculum and course is expected to boost students’ motivation and attitude towards becoming entrepreneurs [3]. Students’ knowledge of subjects such as entrepreneurship during college affects their motivation, and if students possess high motivation in this area, it will eventually produce entrepreneurs who will ultimately reduce unemployment rates [16]. This is because a career path chosen by an individual is heavily influenced by entrepreneurial motivation [18].
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2.3 Theoretical Foundation According to the expectancy theory, three precursors encourage people to exert effort to achieve a goal, namely, Expectancy, Instrumentality, and Valence [19]. An individual’s expectation is their conviction that their efforts will pay off in the form of superior performance. The concept of instrumentality denotes the conviction that an action is required to achieve a particular objective or result. Finally, valence refers to the assessment of these objectives and results either positive, neutral or negative valence. The expectancy theory defines motivational force as a person’s effort to achieve a goal. According to the theory, a person will work hard to start a business if they believe it will help them attain their goals, such as making more money, being independent, gaining high social status, and so on. A previous study investigated the use of reward and punishment systems in the classroom to stimulate motivation and develop positive attitudes and behaviours among students based on Victor Vroom’s Expectancy Theory. A student’s motivation is determined by whether the teacher’s rewards or punishments are proportional to the expected score relative to the previous one [20] revealed that their study found that higher expectations led to higher motivation, which indicates that entrepreneurship education is beneficial to boosting entrepreneurs’ motivation among college students.
3 Methodology This study adopts a qualitative case study methodology and was conducted at a local private higher education institution. The data were gathered through semi-structured interviews with students and educators from the institution. The case study method enables an investigation of students’ and educators’ perspectives of entrepreneurship education in the institution, and their motivation to become entrepreneurs after taking entrepreneurship-related courses and participating in entrepreneurship-related activities. The interview questions were developed based on the research questions, and respondents were recruited using a purposive sampling method. Students from Multimedia University Malaysia’s Business Faculty who had taken any entrepreneurshiprelated courses and lecturers teaching such courses were approached and invited to participate as respondents. These groups of respondents were chosen to facilitate data triangulation and confirm the study’s rigour. Transcribed data were analysed using the thematic data analysis method in a reiterative process, which comprised reading, coding, theming, writing, and reflecting. Table 1 summarises the respondents’ details.
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Table 1 Respondents’ details N.
Respondent
Category
Background
Code 1
S1
Student
Female
2
S2
Student
Male Bc. of Business and Knowledge Management, Final year
3
S3
Student
4
S4
Student
5
S5
Student
Male Bc. of Business and Knowledge Management, Final year Male Bc. of Business and Knowledge Management, Final year Male Bc. of Business Administration (Marketing Management), Final year
6
L1
Lecturer
10-year teaching experience in the Faculty of Business
7
L2
Lecturer
More than 10-year teaching experience in Faculty of Business
8
L3
Lecturer
10-year teaching experience in the Faculty of Business
4 Findings The findings are presented according to the two research questions designed for this study: (i) What are the entrepreneurship education strategies employed at Multimedia University? and (ii) How do the entrepreneurship education strategies at Multimedia University encourage students to become entrepreneurs?
4.1 University Entrepreneurship Education Strategies To answer the first research question, the respondents were asked different questions based on their roles in the university: (i) Students: Can you explain how you learn entrepreneurship at this university? (ii) Lecturers: As a lecturer teaching entrepreneurship-related subjects, kindly share the steps taken by the university and your role as a lecturer. The data analysis revealed that Multimedia University has used multiple strategies to embed entrepreneurship in teaching and learning. The following themes were derived from the analysis: Class assignments and projects. Students enrolled in entrepreneurship-related courses are typically assigned business-related scenarios to familiarise them with the business world. The current entrepreneurship syllabus and assignment integrate the creative thinking curriculum with business idea generating contents and the case studies-based syllabus with an actual business set of circumstances questions. The
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current syllabus and assignment are associated with business idea creation projects and case study analysis questions by designing a solution to address certain real-life business difficulties based on various given scenarios. It is captured in the interview session as per the following quote: The assignments were mainly about scenarios or case studies that are related to businesses and need us to solve the problem using our creative thinking skills. I have also explored several assignments and activities during the classes in which we were asked to develop whole new business products (S1, Student) Some of the curriculums provided encouraging creative thinking through group assignments and activities during classes. I have gained exceptionally from many group assignments that required us to develop new business ideas and also improve the existing companies in terms of the business functions, management and marketing strategies using our creativity to link or combine ideas in better ways (S4, Student) Like my subject itself, fundamentals of business management. I am teaching this subject currently. We have integrated assignments like infographics for students to generate business ideas. Thus, it addresses the issue that we may lack entrepreneurs (L1, Educator) Aligning with the current trend in which developing a website is highly essential, I need them to create content for their business ideas with an online business. Their project demands they come up with a business plan with online content. That means they must prepare and pitch their business ideas and they have to show me the prototype of the website (L3, Educator)
Business Idea Competition. Business idea competitions have been embedded as part of MMU’s entrepreneurship curriculum. The goal of the competition is to teach students about entrepreneurship by inspiring them to come up with new business ideas and pitch the idea. Hence, students learn more about entrepreneurship from that process and gain valuable insights and experiences from participating in the competition, thereby enhancing their entrepreneurship skills. The competition itself is an experiential and interactive learning opportunity that benefits from the entrepreneurial knowledge gained by students from participating. The interview transcript illustrates this idea as follows: I have participated in a competition called Entrepreneur Showcase hosted by MMU. In this competition, we need to showcase our innovations by creating with a new product that is not yet existing in the markets (S2, Student) I saw the university banners advertising the competition, and my lecturers encouraged us to participate. So, the competitions are not restricted to students besides the faculty of business and I think it is great because students from different faculties can also have the opportunity to experience it (S5, Student) We have this competition called IBIC and this year we will be doing the same by inviting universities from other countries and MMU. Thus, we gather young entrepreneurs to pitch their ideas and have a group of talented experts to judge their business ideas. As a result, students will be able more informed that we can come up with new ideas to produce any goods or services in the future, which could also be a way of motivation for them (L1, Educator) I do encourage my students to participate in the competition and I have also been one of the organisers. I am part of the team from time to time, and I do strongly encourage students to
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participate in the competition. When they do have the ideas, I will let them check with me as well (L2, Educator)
Sandbox Programme. Students taking entrepreneurship-related courses such as E-Business, E-Commerce, and Introduction to Cyberpreneurship will be exposed to entrepreneurship experiences through a sandbox programme. Incorporated into the curriculum as a group assignment, the respondent described in detail how it provides students with real-world business experience through a drop shipping-like programme. The following quotes describe the sandbox programme: We need to set up an Instagram account to sell the products of Ilham Echenta and act as their drop shipper. Thereafter, we must follow up with the company’s main Instagram account to ensure that their latest products are updated in our newly created Instagram account. In this case, we must create our posts and captions. When a customer expresses an interest in our products, we will entertain them while first checking the products’ availability with the company before following up with the customers. When a customer decides to buy, we will send them payment information and ask for their shipping address. Once we have verified it, we will prepare a confirmation of the order purchased and send it to them, after which we will forward it to the company, who will then send them the final goods. Finally, we will receive a commission for each item sold. Thus, I believe that this real-life business experience is a valuable lesson for me to learn, especially since doing business online is a current trend (S5, Student)
Class Activities. Various class activities have been designed by lecturers to ensure that the goals of entrepreneurship education can be realised. The following student and educator quotes serve as evidence: I think the entrepreneurship curriculum that I have completed so far had provided vital knowledge relating to entrepreneurship, especially through the activities conducted during the classes. This is because these activities encourage us to come up with new solutions to specific business problems that have not been considered before (S2, Student) My courses provided several activities that helped to improve my creativity. Almost all subjects related to entrepreneurship require creativity to complete. Our task may include designing a brand-new product for a company or helping an existing company to solve the specific issues according to the scenarios given (S3, Student) Some of the assignments are really interesting because they give students the chance to explore real-world cases. In the exams, we don’t just ask theoretical questions, but rather we ask students to respond with their own creativity, to identify the problem and find a solution (L1, Educator)
4.2 Entrepreneurship Education Strategies and Entrepreneurial Motivation To answer research question 2 of this case study, a few questions were asked during the interview session: (i) “Do you think that the entrepreneurship course you are taking right now encourages you to be an entrepreneur one day?”
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(ii) “Do you think that the courses you have learned can provide you with practical skills and knowledge when you are planning to do your own business after graduation?” Expectancy, instrumentality, and valence are the three themes derived from the interview transcripts. Expectancy. Expectancy is related to perceived control, in that, people must believe they have some control over the expected outcome. The following quotes illustrate the students’ expectancy after taking entrepreneurship-related courses at the university: It provides the mindset that helps me in developing nimble thinking, which makes. me more confident to become an entrepreneur in the future (S2, Student) I believe with this knowledge and skills gained, if I wanted to start my own online business after graduation, I could easily do it since I have the necessary fundamentals and have gained experience during my course of study (S5, Student)
Instrumentality. The belief that a person will receive a reward if the performance expectation is met is referred to as instrumentality. The following quote is evidence of instrumentality: This is because being an entrepreneur gives me great independence and flexibility in terms of working. For me, I think working in an office is very boring given that I had to sit in a chair for at least eight hours a day staring at a screen. So, being an entrepreneur makes me feel independent because I can work as many hours or days. I am my boss and need to be responsible for my company’s success. Thus, the most important thing is I want to have a better quality of life to spend more time with my family by becoming an entrepreneur (S1, Student)
Valence. Valence is the degree to which the result is valued. The greater someone’s appreciation for a particular result, the greater their satisfaction with their efforts. These entrepreneurship-focused programmes teach me crucial life skills that will definitely help me in the future, especially to become an entrepreneur. This is because these skills include problem-solving, teamwork, and learning to accept failure as a part of the growth process (S1, Student) Like one of my friends who is also studying IT course here, found that participating in this competition helps him find his real passion in entrepreneurship. In other words, it is possible to motivate students to become entrepreneurs through entrepreneurship competitions (S4, Stu dent) I will feel passion and satisfaction to come up with my original ideas in the project and this sense of accomplishment motivates me to become an entrepreneur (S5, Student)
5 Summary In conclusion, the university’s efforts to create an entrepreneurial education system are crucial for fostering students’ enthusiasm and interest in entrepreneurship. Students’ entrepreneurial motivations have been aided by university-level strategies
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and the teaching and learning methods employed by the instructors in the classroom. Although the results of this case study cannot be readily generalised to the ability of all higher education entrepreneurship courses in inspiring students to be entrepreneurs, it can be an excellent example of a success story in the attempts to increase the number of job creators among graduates. Since this study is limited to university strategies, further research in the entrepreneurship education area is required to explore individual and environmental factors that may contribute to entrepreneurship motivation.
References 1. Tengku Amer Ikhmal Bin Tengku Kamarul Bahrim, Azahari HIBH, Zulkarnal NAAB, et al. High Rate of Unemployment Among Graduates in Malaysia. e-Journal Media Soc, 3, 1–15, (2019). 2. Sandhu, M. S., Sidique, S. F., & Riaz, S. Entrepreneurship barriers and entrepreneurial inclination among Malaysian postgraduate students. International Journal of Entrepreneurial Behaviour & Research, 17, 428–449, (2011). https://doi.org/10.1108/13552551111139656 3. Mahendra, A. M., Djatmika, E. T., & Hermawan, A. The effect of entrepreneurship education on entrepreneurial intention mediated by motivation and attitude among management students, State University of Malang, Indonesia. International Education Studies, 10, 61–69, (2017). https://doi.org/10.5539/ies.v10n9p61 4. Baskaran, S., Mahadi, N., & Abdul Rasid, S. Z. Entrepreneurial career choice: A study among MBA students from Universiti Teknologi Malaysia. International Journal of Academic Research in Business and Social Sciences, 10, 1318–1333, (2020). https://doi.org/10.6007/ija rbss/v10-i11/8255 5. Farhangmehr, M., Gonçalves, P., & Sarmento, M. Predicting entrepreneurial motivation among university students: The role of entrepreneurship education. Education and Training, 58, 861– 881, (2016). https://doi.org/10.1108/ET-01-2016-0019 6. Grivokostopoulou, F., Kovas, K., & Perikos, I. Examining the impact of a gamified entrepreneurship education framework in higher education. Sustainability, 11, 1–17, (2019). 7. Sui, F. M., Chang, J. C., Hsiao, H. C., & Su, S. C. A study on entrepreneurial education regarding college students’ creative tendency, entrepreneurship self-efficacy and entrepreneurial motivation. 2017 IEEE International Conference on Industrial Engineering and Engineering Management (IEEM), 850–854, (2017). https://doi.org/10.1109/IEEM.2017.8290012 8. Jena, R. K. Measuring the impact of business management student’s attitude towards entrepreneurship education on entrepreneurial intention: A case study. Computers in Human Behavior, 107, (2020). https://doi.org/10.1016/j.chb.2020.106275 9. Kamaruddin, H., Othman, N., Hassan, R., et al. The government’s role in the importance of entrepreneurship education amongst university students in Malaysia. Springer Proceedings in Business and Economics, 579–587, (2017). 10. Ahmad, S. Z., & Buchanan, R. F. Entrepreneurship education in Malaysian universities. Tertiary Education and Management, 21, 349–366, (2015). https://doi.org/10.1080/13583883.2015.110 6577 11. Rahim, H. L., Kadir, M. A. B. A., Abidin, Z. Z., et al. Entrepreneurship Education in Malaysia: A Critical Review. Journal of Technology Management and Business, 2, 1–11, (2015). 12. Rahimi, H., Amini, M., & Jahanbani, F. The place of entrepreneurial curriculum components in higher education. International Journal of Academic Research in Business and Social Sciences, 5, 263–279, (2015). https://doi.org/10.6007/ijarbss/v5-i9/1835
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13. Maxwell, O. A., Stephen, I. A., Hezekiah, F. O., et al. Entrepreneurship curriculum contents and entrepreneurial development of university students in Nigeria. International Journal of Entrepreneurship, 22, 1–9, (2018). 14. Love Moses, C., & Mosunmola, A. Entrepreneurship curriculum and pedagogical challenges in captivating students’ interest towards entrepreneurship education. Research Journal of Economics and Business Studies, 4, 1–11, (2014). 15. Olokundun, M. A., Moses, C. L., Iyiola, O. O., et al. Perceptions of students on entrepreneurship curriculum contents and open-mindedness: Implications for business idea generation of Nigerian university students. Academic Entrepreneurship Journal, 23, 1-17, (2017). 16. Hutagalung, B., Dalimunthe, D. M. J. F., Pambudi, R., et al. The effect of entrepreneurship education and family environment towards students’ entrepreneurial motivation. International Journal of Economic Research, 14, 331–348, (2017). 17. Kim-Soon, N., Ahmad, A. R., & Ibrahim, N. N. Entrepreneurial motivation and entrepreneurship career intention: Case at a Malaysian public university. In 24th International Business Information Management Association Conference - Crafting Global Competitive Economies: 2020 Vision Strategic Planning and Smart Implementation (pp. 1001–1011), (2014). 18. Qazi, W., Raza, S. A., & Shah, N. Factors affecting the motivation and intention to become an entrepreneur among business university students. International Journal of Knowledge and Learning, 12, 221, (2018). https://doi.org/10.1504/ijkl.2018.10013488 19. Geiger, M. A., Cooper, E. A., Hussain, I., et al. Cross-cultural comparisons: Using expectancy theory to assess student motivation: An international replication. Issues in Accounting Education, 13, 139–156, (1998). 20. Min, H., Tan, P. X., Kamioka, E., & Sharif, K. Y. Enhancement of study motivation model by introducing Expectancy Theory. International Journal of Learning, 6, 28–32, (2020). https:// doi.org/10.18178/IJLT.6.1.28-32
Intention to Use Cashless Financial Transactions Among University Students Nur Syafiqah A. Samad , Siti Fariha Muhammad , Azira Hanani Ab Rahman , Norzalizah Bahari , and Sulaiman Chindo
Abstract Cash money is gradually being displaced as the globe transitions into a new digital era with a variety of cashless methods. One of them is financial cashless transactions. Due to the advantages of a cashless transaction over a cash transaction, many businesses in Malaysia have begun to accept the cashless transaction as a viable alternative. However, some people including university students are among those who are still dubious about the cashless transaction because they believe that the transaction constitutes a security risk. Therefore, the purpose of this study was to determine the variables affecting university students’ intention to use cashless financial transactions. A total of 357 questionnaires in total were gathered. Data analysis was carried out using a multiple linear regression aided by the Statistical Package for the Social Science (SPSS). The result showed that convenience, social influence, and speed were the significant factors that influenced the intention to use cashless financial transactions. In conclusion, the findings of this study proved that the choice to use cashless financial transactions among university students was highly influenced by convenience, speed, and social influence elements. The discovery of this study will benefit the users, banking sectors, and government in planning a further improvement in cashless financial transactions. Keywords Cashless transactions · Convenience · Security · Social influence · Speed
N. S. A. Samad (B) · S. F. Muhammad · A. H. Ab Rahman · N. Bahari Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan City Campus, Kota Bharu 16100, Malaysia e-mail: [email protected] S. Chindo Faculty of Earth Science, Universiti Malaysia Kelantan Jeli Campus, Jeli 17600, Kelantan, Malaysia © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_65
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1 Introduction 1.1 Cashless Financial Transactions A cashless financial transaction is known as an electronic transaction payment (epayment) system that is tremendously used over the world [1]. A cashless financial transaction is typically carried out using a credit card or other digital financial instrument that is backed by a bank or another financial institution [2]. Online financial transactions between buyers and sellers that do not involve cash may be advantageous to both parties. According to [3], consumers will enjoy the independence of not having to carry cash in their pockets. With the simplicity of high-tech equipment, transactions may be completed conveniently through wireless technologies via mobile devices (smartphones). Additionally, using e-payments makes financial transactions easier and more precise for users. Several previous studies proved that cashless payment could generate finance and economics [4]. By using cards to conduct transactions, [25] found that the adoption of cashless transactions enhanced gross domestic product (GDP) and decreased social costs. It also increased financial inclusion through the acceptance of e-payments and facilitated trustworthy online transactions. Another study carried out by [5] established the statistical impact of adopting cashless payments on economic development and growth in emerging nations. Adopting a cashless economy strategy benefits developing economies greatly, increases financial stability in the nation, and reduces black money. These findings are supported by [6] from India. Their study found that cashless transactions will aid in the reduction of terrorism, black money, fake currency, and robberies of cash as well as the improvement of India’s economic growth. According to Bank Negara Malaysia (BNM), the development of electronic payments might result in yearly cost savings for Malaysia of up to 1% of GDP. It has been demonstrated that the rising use of electronic payments accelerates economic growth [4]. When employing cashless transactions, consumers’ spending behaviour is seen to be more impulsive. The adoption of cashless systems in society is a result of consumer behaviour. [26] mentioned that consumers prefer a technology that provides convenience and security options compared to physical cash. Digitisation offers a massive chance for creating a substantial financial revolution in the country [3]. Digital payment comes from various methods. As reported by Fintech Malaysia (2022), Fig. 1 shows the transaction value for various digital payment methods in Malaysia up to 2021, including e-money, Internet banking, financial process exchange (FPX), and mobile internet, which amounted to RM7.9 billion in total. This showed an increase of RM1.9 billion in the total transaction values from 2020. Clearly, as the globe transitions into a new digital era, cash money is gradually being replaced by a variety of cashless means. Cashless transaction usage becomes prominent in Malaysia. Most of the cashless transaction users are individuals from the middle-aged group (18–44 years old) [4]. [27] and [7] stated that age is a significant factor in banking penetration and in the
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Fig. 1 Transaction volume of digital payment methods in Malaysia from 2019 to 2021
choice of cashless payment. As expected, the oldest community is still comfortable using cash payments because cashless payments are inconvenient for them. However, some people, especially students remain sceptical about cashless financial transactions because they believe that cashless transactions pose a security risk [8]. They felt insecure to use cashless transactions in any payments. [9] concluded that most students and Generation Z used cashless financial transactions due to social influence. Social influence have a favourable impact that can affect the acceptance of cashless transactions. Most cashless financial transaction users range between 18 and 44 years old, and university students come from this age range. Jumba and Wepukhulu [8] stated that some students felt insecure to use cashless financial transactions. Hence, the factors that influence the students’ intention to use cashless financial transactions still need to be further investigated to ensure that the five-year Malaysian digitalisation plan in 2026 can be achieved. On the other hand, the findings from this study will help the respective industry to plan and design a cashless transaction system that can meet the user demand including students.
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2 Literature Review 2.1 Technology Acceptance Model The Technology Acceptance Model (TAM) developed by [10] has mostly been used extensively to analyse the users’ desire to adopt information technology (IT) [11]. Basically, TAM was used to predict people’s intentions to utilise cashless financial transactions, and two important variables—perceived usefulness and perceived ease of use—had an impact on people’s user intentions and behaviour [10].
2.2 Factors Influencing the Intention to Use Cashless or Other Digital Payment Users’ perceptions of how simple a system is are subjective. Information technology becomes more popular as it becomes simpler to use. According to [12], convenience is the amount of time and effort saved during the consumption of a good or service, as well as the accessibility of the right moment, place, acquisition, and execution. Mobile phones and other modern technology have made things portable and easily accessible. In Vietnam, [13] investigated the relationship between consumers’ views of convenience and their openness to experimenting with new technologies. [14] investigated the factors affecting consumers’ adoption of electronic payment methods and found that there were many variables affecting the consumers’ preferences and willingness to complete transactions using the most recent technology. The extent of use of IT is also subjectively perceived by users. More people adopt IT because of its increasing usefulness. The recognition influences mindsets and encourages behaviours [11]. Misbah [15] found that most of the earlier studies had demonstrated that the acceptability of e-wallets was positively influenced by security [16–18]. The finding was supported by [17]. They discovered that the respondents’ greatest concerns were safety and security. In addition, [17] also found that speed was another criterion that influenced the use of e-wallet due to the time-saving benefit and ease of access. In Cambodia, [19] stated that perceived transaction speed is an important variable to capture users’ intention to use mobile payment. They demonstrated statistically that users’ inclination to employ mobile payments and perceived transaction speed have a favourable and substantial link. In addition to safety and speed, some people are drawn to the people around them. This phenomenon is known as social influence (SI), and it refers to a person’s perception of whether peers and other influential people think they should engage in various behaviours. For example, the satisfaction of customers with mobile commerce may be affected by the opinions of friends, colleagues, family members, and other prominent members of society [20]. It refers to the question of whether or not most people find users’ behaviour when utilising new technologies to be acceptable. According
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to a study by [21], both social connections and intention to use mobile social applications have a substantial impact. San-Martin et al. [22] validated their findings in the context of mobile shopping. Recent research by [23] also provided empirical evidence that social influence had a favourable and significant impact on how often business owners used mobile commerce. This study examined how perceived usefulness and ease of use influenced participants’ intentions to use cashless financial transactions. In this study, convenience was categorised as perceived ease of use, while security, speed, and social influence were categorised as perceived usefulness. Hence, the following hypotheses were proposed: H1: Convenience influences the intention to use cashless financial transactions. H2: Security influences the intention to use cashless financial transactions. H3: Social influence influences the intention to use cashless financial transactions. H4: Speed influences the intention to use cashless financial transactions.
3 Methodology 3.1 Data Collection This study employed the quantitative method. Four hundred questionnaires were distributed to three public universities located in Kelantan, namely Universiti Malaysia Kelantan (UMK), Universiti Teknologi MARA (UiTM), and Universiti Sains Malaysia (USM). The data analysis included 357 complete responses out of 400 total respondents. Table 1 shows that most of the samples were female (55.5%). Most of the respondents were from Universiti Malaysia Kelantan, representing 54.3%. Furthermore, 44% of the respondents studied in their final year, i.e. Year 4. Most of them (31.1%) came from the East Coast Region. Table 1 also indicates that most university students started to use cashless financial transactions during the pandemic COVID-19, which was in 2020.
3.2 Research Questionnaire Design The questionnaire for the present study was designed in two languages, namely: Malay and English. A Likert scale with five possible responses—“strongly disagree” to “strongly agree”—was employed. Three sections made up the questionnaires. Questions about demographics were in Section A. Section B measured the intention to use cashless financial transactions, representing the dependent variable, while
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Table 1 Demographic profiles Profile
Classification
Frequency
Percentage
Gender
Male
159
44.5
Female
198
55.5
UMK
194
54.3
UiTM
129
36.1
USM
34
9.6
Year 1
50
14.0
Year 2
76
21.3
University
Year
State
Year 3
74
20.7
Year 4
157
44.0
Northern region
71
19.9
East coast region
111
31.1
Central region
70
19.6
Southern region
73
20.4
Sabah and sarawak Started using cashless financial transactions
32
9.0
2020–2021
194
54.7
2018–2019
94
26.3
2016–2017
53
14.5
2014–2015
16
4.5
Section C measured convenience, security, social influence, and speed, which were categorised as independent variables.
3.3 Statistical Technique The multiple linear regression aided by Statistical Package for the Social Science (SPSS) was used to determine the determinants that influenced the university students’ intention to use cashless financial transactions. A pilot test was conducted to ensure the reliability of the data. The scores for the intention to use cashless financial transactions, convenience, security, social influence, and speed were 0.778, 0.743, 0.754, 0.654, and 0.833, respectively, which were acceptable.
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Table 2 Descriptive statistics on the variables (N = 357) Observation
Mean
Std. Dev
Min
Max
Convenience
357
4.33
0.58
1
5
Security
357
4.20
0.75
1
5
Social influence
357
3.83
0.96
1
5
Speed
357
4.43
0.57
1
5
Intention to use cashless financial transactions
357
4.33
0.61
1
5
4 Results and Discussion 4.1 Descriptive Statistics of Variables The descriptive data shown in Table 2 indicate that speed had the highest mean value, 4.43, while social impact had the lowest mean value, 3.83. Most respondents agreed with the statements made in each item for each variable, as shown by the fact that all questions for each construct had a mean score of above 3.00. All the variables had standard deviations that were less than 1.00, indicating a small distribution of mean values. The results also suggested that the respondents’ perceptions were consistent.
4.2 Multiple Linear Regression Analysis In this study, convenience, speed, security, and social impact were employed as independent factors in the multiple linear regression to predict the outcome of intentions of cashless financial transactions. Multiple linear regression is a common technique employed if the set of independent variables has two or more variables related to one continuous dependent variable [24]. In this study, four constructs that consisted of convenience, speed, social influence, and security as independent variables were analysed concurrently to examine the behavioural intention to use cashless financial transactions as a dependent variable. The results of multiple linear regression analysis are shown in Table 3, where the R-value of 0.695 denotes a strong correlation relationship. Additionally, in statistics, the coefficient of determination known as R Square (R2 ) in the analysis model describes the proportion of variation in the dependent variable that is predictable from the independent variables. Based on the results in Table 3, the R2 value by the multiple linear regression model is 0.483, which indicates that 48% of the intention to use cashless financial transactions variance was from convenience, speed, and social influence, while the remaining 52% was from other factors that were not taken into consideration in this study. As shown in Table 3, convenience obtained the highest beta value (β) at 0.557, followed by speed (β = 0.229), security (β = 0.039), and social influence (β = 0.023).
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Table 3 Multiple linear regression analysis Variable
Beta value
Std. error
t-value
Sig
R
R square
Constant
0.655
0.230
2.843
0.005
0.695a
0.473
Convenience
0.557
0.052
10.635
0.000
Social influence
0.023
0.027
0.835
0.004
Security
0.039
0.044
0.874
0.383
Speed
0.229
0.056
4.072
0.000
The beta values depicted that convenience and social influence were the strongest and least factors, respectively, influencing the intention to use cashless financial transactions among university students. Based on Table 3, convenience, social influence, and speed offered a p-value of below 0.05 which offered a statistically significant test result, while security depicted a p-value of above 0.01 which depicted statistically insignificant test result. Therefore, convenience, social influence, and speed significantly influenced the intention of university students to use cashless financial transactions. On the other hand, security did not significantly influence the intention of university students to use cashless financial transactions. According to [24], most previous studies highlighted that convenience, speed, and social influence were the major factors that played a significant role in influencing users to use cashless financial transactions. This study also found the same finding and was supported by [9]. However, this study also found that security was not a significant factor in using cashless financial transactions among UMK students. The finding was supported by [8] and [24]. It might be conceivable in this study because the majority of the students stayed in a university hostel. In addition, the crime rate around these universities was not so high. Therefore, they were not exposed to criminal issues like being robbed or others. Hence, security was not a significant factor that led university students to use cashless financial transactions.
5 Conclusion Considering the government’s numerous efforts to ensure that this technology can be used to its full potential, it is necessary to determine the intention elements encouraging university students to use cashless financial transactions. Based on the findings, it can be concluded that university students had the intention to use cashless financial transactions due to the convenience, speed, and social effect of electronic payments. The results of this study are valuable for electronic payment players to recognise the features that influence the intention to use cashless financial transactions among their customers (in this case, university students), which can be considered to offer better services as required by the customers. The better services improved by the key players will indirectly increase the customers’ decision of using cashless financial transactions, which will embrace digital technology. In addition, the results of this
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study may serve as the foundation for public university administration in selecting the appropriate cashless vendors for a strategic partnership to implement cashless services in universities. The business sector, students, and other stakeholders can also profit from the findings of this study. However, there are still many opportunities for improvement in future studies. Future research may consider factors other than ease, speed, and social influence that influence the intention to use cashless financial transactions because, according to the findings, these characteristics only vary by roughly 48%, leaving 52% of other aspects to be measured.
References 1. Thirupathi, M., Vinayagamoorthi, G., & Mathiraj, S. P.: Effect Of cashless payment methods: A case study perspective analysis. International Journal of scientific & technology research, 8(8), 394-397 (2019). 2. Yakean, S.: Advantages and Disadvantages of a Cashless System in Thailand during the COVID-19 Pandemic. The Journal of Asian Finance, Economics and Business, 7(12), 385-388 (2020). 3. Tee, H. H., & Ong, H. B.: Cashless Payment and Economic Growth. Financial Innovation, 2(1), 4 (2016). 4. Ishak, N.: Overview of cashless payment in Malaysia. International Journal of Accounting, Finance and Business (IJAFB), 5(27), 11–18 (2020). 5. Kumari, N. & Khanna, J.: Cashless Payment: A Behavioural Change to Economic Growth. Qualitative and Quantitative Research Review, 2(2): 82–103 (2017). 6. Goel, R., Sahai, S., Vinaik, A., & Garg, V.: Moving from Cash to Cashless Economy: A Study of Consumer Perception Towards Digital Transactions. International Journal of Recent Technology and Engineering, 8(1), 1220-1226 (2019). 7. Huterska, A., Piotrowska, A. I., & Szalacha-Jarmu˙zek, J.: Fear of the COVID-19 pandemic and social distancing as factors determining the change in consumer payment behaviour at retail and service outlets. Energies, 14(14), 4191 (2021). 8. Jumba, J., & Wepukhulu, J. M.: Effect of cashless payments on the financial performance of supermarkets in Nairobi County. International Journal of Academic Research Business and Social Sciences, 9(3), 1372-1397 (2019). 9. Rahadi, R., Nainggolan, Y., Afgani, K., Yusliza, M., Faezah, J., Ramayah, T., & Angelina, C.: Towards a cashless society: Use of electronic payment devices among generation Z. International Journal of Data and Network Science, 6(1), 137-146 (2022). 10. Davis, F.D.: Perceived Usefulness, Perceived Ease of Use, and User Acceptance of Information Technology. MIS Q. 13, 319–340 (1989). 11. Weng, F., Yang, R. J., Ho, H. J., & Su, H. M.: A TAM-based study of the attitude towards use intention of multimedia among school teachers. Applied system innovation, 1(3), 36 (2018). 12. Roy, S. K., Shekhar, V., Lassar, W. M., & Chen, T.: Customer engagement behaviours: The role of service convenience, fairness and quality. Journal of Retailing and Consumer Services, 44, 293-304 (2018). 13. Liu, G. S., & Tai, P. T.: A study of factors affecting the intention to use mobile payment services in Vietnam. Economics World, 4(6), 249-273 (2016). 14. Bezhovski, Z.: The future of the mobile payment as electronic payment system. European Journal of Business and Management, 8(8), 127-132 (2016). 15. Misbah, N. B.: Factors Affecting the E-Wallet Adoption in a Cashless Society (2020). 16. Kabir, M. A., Saidin, S. Z., & Ahmi, A.: Analysis of factors that influence electronic payment adoption. Journal of Engineering and Applied Science, 12(3) (2017).
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17. Batra, R. & Neha Kalra, N.: Are Digital Wallets the New Currency? Apeejay Journal of Management and Technology. Vol 11, No 1 (2016). 18. Taheam, K., Sharma, R., & Goswami, S.: Drivers of digital wallet usage: Implications for leveraging digital marketing. International Journal of Economic Research, 13(1), 175-186 (2016). 19. Do, N., Tham, J., Khatibi, A., & Azam, S.: An empirical analysis of Cambodian behaviour intention towards mobile payment. Management Science Letters, 9(12), 1941-1954 (2019). 20. Isaac, O., Abdullah, Z., Aldholay, A. H., & Ameen, A. A.: Antecedents and outcomes of internet usage within organisations in Yemen: An extension of the Unified Theory of Acceptance and Use of Technology (UTAUT) model. Asia Pacific Management Review, 24(4): 335–354 (2019). 21. Hsiao, C. H., Chang, J. J., & Tang, K. Y.: Exploring the Influential Factors in Continuance Usage of Mobile Social Apps: Satisfaction, Habit, and Customer Value Perspectives. Telematics and Informatics, 33: 342–355 (2016). 22. San-Martin, S., Prodanova, J., & Catalan, B. L.: What Makes Services Customers say “Buy it with a Mobile Phone? Journal of Services Marketing, 30 (6): 601–614 (2016). 23. Samad, N. S. A., Abdullah, F. A., Yaziz, M. F. A., & Bahari, N.: The Factors Influencing the Usage of Mobile Commerce among Rural Entrepreneurs in Peninsular Malaysia. International Journal of Interactive Mobile Technologies, 16(20) (2021). 24. Abdullah, N., Redzuan, F., & Daud, N. A.: E-wallet: Factors influencing user acceptance towards cashless society in Malaysia among public universities. Indonesian Journal of Electrical Engineering and Computer Science, 20(1), 67-74 (2020). 25. Rashmi, S. B.: Cashless Transaction - A Literature Review. International Journal of Management, Technology and Engineering, 2249 – 7455 (2018). 26. Singh, N., Sinha, N., & Liébana-Cabanillas, F. J.: Determining Factors in the Adoption and Recommendation of Mobile Wallet Services in India: Analysis of the Effect of Innovativeness, Stress to Use and Social Influence. International Journal of Information Management, 50, 191–205 (2020). ´ 27. Swiecka, B., Terefenko, P., Wi´sniewski, T., & Xiao, J.: Consumer Financial Knowledge and Cashless Payment Behaviour for Sustainable Development in Poland. Sustainability, 13(11), 6401 (2021).
Teachers’ Readiness Towards Digital Adoption in Teaching Towards Society 5.0 Fadhilahanim Aryani Abdullah , Nur Haiza Nordin , Nur Naddia Nordin , Nurul Hafizah Mohd Yasin , and Rahayu Irdiana Ibrahim
Abstract With temporary closures and the difficulty of face-to-face instruction, the pandemic caused by COVID-19 has had a huge influence on global social, economic, and cultural life. It is also having an impact on the regular functioning of educational institutions at all levels worldwide, especially with the huge usage of digitalization based learning. The purpose of this study was to evaluate the level of teacher preparation and digital competency in Kota Bharu’s secondary schools. Communication and cooperation, the creation of digital material, safety, and the influence of problem-solving on digital preparedness and skills made up the independent variables of this study. A descriptive research approach was used to gather pertinent data for the study using an online survey. The online poll, which was performed using universal sampling from 43 schools, included teachers from Kota Bharu. According to the findings, problem-solving and the creation of digital content were both positively correlated with digital readiness and competencies. This finding draws the conclusion that innovative teaching and learning strategies should be used in the new educational system. Keywords Digital competence · COVID-19 · Online learning · Teachers · Readiness
F. A. Abdullah (B) · N. H. Mohd Yasin Faculty of Hospitality, Tourism and Wellness, Universiti Malaysia Kelantan, Kota Bharu, Malaysia e-mail: [email protected] N. H. Nordin · N. N. Nordin Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Kota Bharu, Malaysia R. I. Ibrahim Kota Bharu Education District Office, Kelantan, Malaysia © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_66
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1 Introduction At a time of transition, many of the traditional tenets of formal education are being rethought. Not because of pedagogical research advances, teacher reflection, or innovative practises, but rather because of a worldwide epidemic brought on by the SARS-CoV-2 virus, there has been a dramatic shift in educational practice. These adjustments in educational practice and new strategies have been brought about by the abrupt development of a worldwide pandemic brought on by the virus SARSCoV-2. COVID-19 has disrupted societal norms in general and triggered a global health disaster. However, this virus has forced educational institutions to drastically change their reality, frequently with unintended consequences [1]. As reported by the United Nations Educational, Scientific, and Cultural Organization (UNESCO), the epidemic had a direct impact on 1, 319, 558, 795 pupils. More than 100 million children are below the minimal reading proficiency level as a result of the crisis, according to data revealing that half of all pupils worldwide are still feeling the impacts 1 year later [2]. We have been looking for alternatives that tend to promote human interactions without needing face-to-face contact or manipulation of replaceable physical forms as a result of lockdowns, the absence of direct human contact, and the absence of any physical touch. Undoubtedly, information and communication technologies (ICTs) have become an integral part of our daily lives, and since the beginning of the digital era, we have been living in an information and knowledge society. This is because distances have been shortened, and we have continuous access to the vast Internet network, allowing for seamless integration of ICTs into our lives. Online learning and hybrid learning have been used in higher education for more than two decades [3]. These teaching and learning techniques are well known to be widely employed at universities, but they have been embraced and applied inconsistently, leading to a broad range of student learning experiences across institutions, fields, and even programmes [4]. Studying the factors associated with university lecturers’ adoption and usage of online teaching is crucial to helping institutions better support teaching and learning in these settings [5]. This will help to guarantee that all students have equal access to high-quality education. Regardless of whether instructors are ready, the majority of higher education institutions around the world have quickly transitioned to online teaching and learning (OTL) in March and April 2020 as a result of the COVID-19 outbreak and the accompanying implementation of social distancing restrictions 2020 (UNESCO IESALC). It is crucial to consider views concerning OTL training for instructors in higher education [6]. These moves necessitate major changes to teaching methods due to the swift transition to online learning. Individual, institutional, and cultural variables have an impact on these changes in practice [7]. A better understanding of teachers’ OTL readiness requires OTL [8]. Additionally, not all teachers will be affected by these factors in the same way. As a result of their diverse backgrounds, experiences with OTL, and scholarly interests, higher education teachers do not form a homogeneous group. The various major links
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that affect one group may be completely different for another. To provide suitable help, it is necessary to understand some of the reasons why teachers choose or do not adopt new OTL practices [9]. Learning how to use digital technology to enhance learning and facilitate collaborative production of teaching materials is a challenge associated with the digital revolution of education. This skill will be important in the future educational system. Future work opportunities will be greater for teachers and students who are able to use and engage with digital technologies. The use of digital technology in educational institutions has the potential to change how work is done, how people learn and teach, how students and instructors are prepared for problems in the workplace, and how future educational possibilities and advancements will be shaped. Due to the massive COVID-19 pandemic, instructors now face additional challenges and must become used to teaching online. Teachers, students, and parents are faced with a brand-new predicament as a result of the school lockout [6]. With the use of digital technologies becoming more pervasive in daily works, teachers are being forced to re-evaluate and change their traditional methods of instruction. The demand on schools to provide the digital capabilities necessary for high-quality teaching and learning has intensified as a result of these challenges. When forced to move to online instruction, teachers must use a range of digital tools and resources to solve issues and implement fresh approaches to both teaching and learning [10]. As a result, the effectiveness of OTL depends on the teachers’ digital competency. There are a number of obstacles to the successful implementation of online teaching and learning, including poor Internet connectivity, a lack of an appropriate regulatory framework, teachers’ lack of readiness for educational innovations, a lack of a technical foundation for education, and a lack of e-teaching materials [11]. The use of information and communication technology in the classroom is not effectively taught to teachers, and students’ computer literacy is occasionally higher than instructors’, making the personality of the instructor requires special consideration due to both his or her inexperience and inactivity, as well as the need for their preparation for online teaching and learning [11]. The goal of this article is to assess the teacher’s preparation for adopting technology in the classroom. The discussion of the literature, the methodology, the analysis of the results, and the discussion come after the paper’s structure, and the conclusion comes last.
2 Literature Review In today’s competitive labour market, there are over 7 million open positions, and businesses are having difficulty filling them with qualified candidates since most applicants lack the digital and soft skills required to succeed. It can be challenging to keep staff members informed given the rapid evolution of technology, particularly in the fields of automation and artificial intelligence. Education cannot thus wait for the traditional “system” graduates to help students choose their future. Simply said, the demand is too big and urgent, especially given the fact that many institutions of
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higher education still oppose it. The way conventional and non-traditional college-age students are educated inside the educational system must change. A previous report has outlined how nations can approach the international ICT development to hasten the progression towards SDG 4: Goals for Sustainable Development [2]. “Make sure that everyone has access to opportunities for lifelong learning and that all children get inclusive, equitable, and high-quality education” [12]. The Japanese government has created a brand-new notion of society called Society 5.0 [13]. This civilisation’s goal is to use technology that is people-centred. Big Data, the Internet of Things (IoT), and artificial intelligence are all used in Society 5.0. The problems in education may be solved through innovation and variation in the application of learning methodologies. There may be some movement and physical contact required by some disciplines, especially those taught at trade institutions [14]. Therefore, it is essential to evaluate schools’ capacities to support learning as well as teachers’ readiness [15–17]. The aid in the transformation of educational institutions is by implementing cutting-edge teaching and learning strategies like group learning, project-based learning, hybrid learning, Massive Open Online Courses (MOOC), global material delivery, promoting student interaction, and transforming learning communities through digital pedagogy [3]. Competency, the capacity to adopt new technologies, and current global challenges must all be understood by teachers. These digital literacy and competency skills can help students learn their subjects while also equipping them with the digital skills and dispositions they need to participate in the knowledge society of the twenty-first century. The increased emphasis on competencies, such as digital competence, is also reflected in education reforms, rules, and frameworks [18]. For instance, recently, schools have included digital competence to the list of necessary skills [18]. The use of digital technology and open educational resources enables pupils to study independently and according to their own preferences [19]. The opportunity to participate in activities utilising digital technology as a tool may be offered to learners. “Analytics Technologies” and “Growing Focus on Measuring Learning”, which are some significant developments in educational technology, are two key trends increasing the use of education technologies, claims the NMC “Horizon Report: 2018 Higher Education Edition”. As a result, to fulfil the demands of the digital age and the necessity to defend this right in today’s information and knowledge society, teachers must be proficient in a variety of fundamental or functional digital skills and demonstrate digital leadership in the classroom. Teachers must adapt in digital skills to create and trade digital content, communicate, collaborate, and resolve problems [2, 12]. For the development and dissemination of digital skills that enable efficient ICT to use in classrooms, teacher training in digital and information literacy is needed [20, 21]. Technology instruction should be combined with lessons on developing positive attitudes, practical skills, and life skills in the classroom. In this situation, educators are vital in developing and creating the skilled graduates needed for the Society 5.0. Teachers need to be able to help students develop the skills that employers are looking for. Numerous studies have shown that, for teachers to become digitally proficient, they must be given the necessary training in ICT use [5, 8, 22, 23]. However, studies
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Fig. 1 Research framework for the digital competencies and readiness
in teacher training continue to demonstrate that most teachers lack the knowledge required to utilise ICT in a pedagogical and didactical way [5, 8, 22, 23]. As the usage of digital technologies in education has increased, the usual classroom environment has evolved to include several modalities, from the classic face-toface technique to leveraging information technology to “blended” face-to-face and online learning to entirely online courses or programmes. With the rising use of digital technology in education, enormous volumes of data are being created on students and their learning processes. These data serve as the foundation for learning analytics, which instructors are beginning to use to examine their students’ participation in online environments [24].
3 Research Framework This section elaborates on the study model that is recommended and contains the elements that affect teachers’ digital competence and preparedness. To investigate the variables influencing digital skills and preparation, the constructs in the proposed study framework (Fig. 1) are grouped into four categories: communication and collaboration, digital content creation, safety, and problem-solving. Several pertinent topics have been the subject of the development of a research framework.
4 Methodological Approach A survey was distributed to the respondents through a Google Form, employing the non-probability sampling method. There were 450 data points from all teachers from Kota Bharu. The distribution of this survey took place from February to April 2020. The questionnaire had three sections. The first part of the survey included general demographic questions to classify the respondents. The second part contained survey questions on that demand. The questionnaire was graded using a six-point Likert scale, with 6 signifying “strongly agree” and 1 denoting “strongly disagree” utilising partial least squares and structural equation modelling to examine the data (SEM).
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The aim of using PLS-SEM is to increase the explained variance of the latent variables that are endogenous in nature. To estimate the parameters in our study model, we used SmartPLS software version 3.1 with 5,000 bootstrap samples, each containing 121 instances. For the purpose of our study, we operationalized one exogenous variable and the variable influencing software quality to collect data. We identified four independent (exogenous) factors and indicators, namely, problem-solving, cooperation and communication, and creation of digital content, for this study.
5 Analysis and Findings 5.1 Validity and Reliability Tests Utilising tests for validity and reliability, the questionnaire’s consistency and dependability were assessed. The reliability test was carried out to see if the analysis was trustworthy or accurate, and Cronbach’s alpha value was 0.973. The study instrument was valid and reliable, according to the findings of the validity and reliability tests.
5.2 Analysis with SmartPLS Using the SmartPLS approach and SmartPLS 3.1, a model of the major design change factors influencing construction projects was developed. The model’s reliability and validity were then evaluated. The validity was evaluated using convergent and discriminating validity, while the reliability was evaluated using composite reliability and Cronbach’s alpha. The general guidelines for convergent validity were the leasing factor >0.7, the loading factor >0.5, and the average derived variance (AVE) >0.5, while the leasing factor 0.6–0.7 was still suitable for the exploratory work. Table 1 displays the SmartPLS measuring model for design modifications. Table 1 displays the statistics for the load factor, Cronbach’s alpha, composite reliability, and AVE. George and Mallery (2003) claimed that Cronbach’s alpha is excellent when it is more than 0.7 (α > 0.9). If it is more than 0.9, that is excellent, as found in the current analysis. Additionally, AVE was greater than or equal to 0.5, which was within the current study’s range, and composite reliability was above average. Also included in Table 2 is the discriminant validity. After assessing the measurement model, SmartPLS was used to look at a structural model. To do this, both direct and indirect effects were looked at. When the route coefficient and the value “t” were considered, the hypotheses were supported.
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Table 1 Internal consistency, convergent validity, composite reliability, and AVE Construct
Indicator
Loadings
Composite reliability
AVE
Problem-solving
P1
0.859
0.884
0.678
P2
0.887
P3
0.909
P4
0.722
P5
0.723
I2
0.898
DCC1
0.755
0.848
0.568
DCC2
0.702
DCC3
0.764
DCC4
0.811
DCC5
0.806
DCC6
0.671
S1
0.617
0.877
0.55
S2
0.645
S3
0.618
S4
0.71
S5
0.793
S6
0.873
S7
0.865
C1
0.749
0.879
0.573
C2
0.674
C3
0.838
C4
0.666
C5
0.602
C6
0.879
DC1
0.925
0.944
0.862
DC2
0.938
DC3
0.954
DC4
0.957
DC5
0.964
DC6
0.922
DC7
0.826
Digital content creation
Safety
Communication and collaboration
Digital competencies and readiness
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Table 2 Discriminant validity Communication
Digital competencies
Digital content
Digital competencies
0.136
Digital content
0.777
0.258
Problem-solving
0.773
0.283
0.850
Safety
0.888
0.170
0.862
Problem-solving
0.900
Table 3 Hypothesis testing direct effects Hypothesis
relationship
Std Beta
Std Error
t-values
H1
Communication > Digital Competencies
−0.040
0.234
0.171
H2
Digital content > Digital Competencies
0.180
0.196
0.919
H3
Problem-solving > Digital Competencies
0.354
0.195
1.813
H4
Safety > Digital Competencies
−0.209
0.178
1.174
5.3 Path Coefficient This study utilised a 5,000-sample re-sample bootstrapping process to record the path coefficients, standard errors, t-values, and p-values for the structural model. The validity of the hypotheses was evaluated using a combination of metrics such as p-values, confident ratios, and effect sizes. The variables to test the hypothesis are described in Table 3 in more detail. Table 3 shows that H2 and H3 are both significantly related to digital competences and had positive correlations with them, whereas H1 and H4 have negative correlations and were eliminated.
6 Discussion and Conclusion According to the findings, problem-solving and development of digital material were closely associated to digital readiness and competences. Previous studies supported this finding [20, 21]. In fact, another study concluded that innovative teaching and learning strategies should be used in the future educational system [25]. The success of digital adoption in teaching depends on the instructors’ digital proficiency [25]. The results for communication and safety are considerable and inversely correlated with digital abilities. Digital preparation and readiness is necessary to better understand instructors’ preparation [8]. Based on the teachers’ backgrounds and digital teaching experience, the outcomes varied among them. For the recommendation, teachers must increase their familiarity and comprehension of digital tools and take
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a course, programme, or training relevant to online learning. They will eventually be able to develop their skills and techniques for their digital readiness in teaching. Acknowledgements This work was supported by Universiti Malaysia Kelantan under the UMK Community Impact Research Grant (UMK-COM)-R/COM/A1100/01299A/003/2021/00999.
References 1. Bond, M., Bedenlier, S., Marín, V.I., Händel, M.: Emergency remote teaching in higher education: Mapping the first global online semester. Int. J. Educ. Technol. High. Educ.,18, 50 (2021) 2. UNESCO. Las TIC en Educación; UNESCO: Paris, France, 2021. 3. Virkus, S. (2019). The use of Open Badges in library and information science education in Estonia. Education for Information, 52 (2), 1–18 (2019). https://es.unesco.org/themes/tic-edu cacion. ˇ 4. Begiˇcevi´c R. N., Klaˇcmer Calopa, M., Tomiˇci´c Pupek, K.: The challenge of digital transformation in european education systems. Eds: Moos et al.,Educational Leadership, Improvement and Change: Discourse and Systems in Europe. Palgrave Studies on Leadership and Learning in Teacher Education. Cham: Palgrave Pivot, pp. 103–120. URL: https://doi.org/10.1007/9783-030-47020-3_8 (2020). 5. Kebritchi, M., Lipschuetz, A. & Santiague, L.: Issues and challenges for teaching successful online courses in higher education: A literature review. Journal of Educational Technology Systems, 46 (1), 4-29 (2017). 6. Newman, D.: Top 5 digital transformation trends in education for 2020, https://www.forbes. com/sites/danielnewman/2019/08/01/top-5-digital-transformation-trends-in-educationfor2020/ (2020). 7. Norqvist, L. (2018). Analysis of the digital transformation of society and its impact on young people’s lives; youth partnership. https://pjp-eu.coe.int/documents/42128013/4726251 (2018). 8. Hung, M-L.: Teacher readiness for online learning: Scale development and teacher perceptions. Computers & Education, 94,120-133 (2016). 9. Redecker, C., Kampylis, P., Bacigalupo, M. and Punie, Y., Conrads, J., Rasmussen, M., Winters, N., Geniet, A. and Langer, L.: Digital education policies in Europe and beyond: Key design principles for more effective policie, https://publications.jrc.ec.europa.eu/repository/handle/ JRC109311 (2017). 10. Egan, S.M., Pope, J., Moloney, M., Hoyne, C., Beatty, C.: Missing early education and care during the pandemic: the socio emotional impact of the covid-19 crisis on young children. J. Fam. Econ. 49, 925–934 (2021). 11. Rusdin, N. M.: Teachers‘ readiness in implementing 21 st century learning teachers‘ readiness in implementing 21 st century learning. International Journal of Academic Research in Business and Social Sciences, 8(4), 1271–1284 (2018). 12. UNESCO. Objetivo 4: Garantizaruna Educación Inclusiva, Equitativa y de Calidad y Promover Oportunidades de Aprendizaje Durante toda la Vida para Todos. 2021. https://www.un.org/sus tainabledevelopment/es/education/ (2021). 13. Bozkurt, A., Sharma, R.C.: Emergency remote teaching in a time of global crisis due to corona virus pandemic. AJDE, 15, 1–6 (2020). 14. Khan, Z.R., Sivasubramaniam, S., Anand, P. Hysaj, A.: ‘E’-thinking teaching and assessment to uphold academic integrity: Lessons learned from emergency distance learning. Int. J. Educ. Integr, 17, 17 (2021). 15. Shonfeld, M., & Magen-nagar, N. (2017). The impact of an online collaborative program on intrinsic motivation, satisfaction and attitudes. technology, knowledge and learning, 25(2), 297–313 (2017). https://doi.org/10.1007/s10758-017-9347-7.
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16. Simaremare, S. A., Hasibuan, N. I., & Priyadi, M.: Teacher readiness in accommodating the TPACK framework to meet teacher competence the 21st Century Teacher readiness in accommodating the TPACK framework to meet teacher competence the 21st Century. International Conference on Science Education and Technology, 1151(1), 1–7 (2020). https://doi.org/https:/ /doi.org/10.1088/1742- 6596/1511/1/012041. 17. Solis, B.: Digital Transformation – The six stages of digital transformation. URL: http://www. briansolis.com/2017/01/definition-of-digital-transformation/ (last accessed 2020/4/5) 18. INTEF. Marco de Competencia Digital Docente—Septiembre 2017; INTEF: Madrid, Spain, 2017. Available online: http://aprende.intef.es/sites/default/files/2018-05/2017_1020_MarcoCom%C3%BAn-de-Competencia-Digital-Docente.pdf (last accessed 2021/9/2). 19. Virkus, S., Kirini´c, V., Begiˇcevi´c Redep, N. The role of e-learning aninformation culture in educational institutions in transforming european education. Eds: Moos, L., Alfirevi´c, ˇ cija, L.N., Educational Leadership, Improvement and Change: N., Paviˇci´c, J., Koren, A., Caˇ Discourse and Systems in Europe. Cham: Palgrave Pivot, pp. 121–138 (2020). https://doi.org/ 10.1007/978-3-030-47020-3_9 20. JISC. Developing Digital Literacies. Overview, http://www.jisc.ac.uk/whatwedo/programmes/ elearning/developingdigitalliteracies.aspx (last accessed 2021/9/2). 21. CLIP. Definitions and Models Information Literacy. 2013. Available online: http://www.inform ationliteracy.org.uk/informationliteracy-definitions/definitions-of-il/ (last accessed 2021/9/2). 22. Purnamasari, F., Nanda, H. I., Anugrahani, I. S., Muqorrobin, M. M., & Juliardi, D.: The late preparation of IR4.0 and society 5.0: Portrays on the accounting students’ concerns. South East Asia Journal of Contemporary Business, Economics and Law, 19(5), 212-217 (2019) https:// seajbel.com/wpcontent/uploads/2019/12/SEAJBEL19_282.pdf. 23. Rahardjo, D., Sumardjo, Lubis, D. P., & Harijati, S.: Internet access and usage in improving students’ self-directed learning in Indonesia open university. Turkish Online Journal of Distance Education, 17(2), 30–41 (2016). https://doi.org/10.17718/tojde.90196. 24. Beer C., Clark K., Jones D.: Indicators of engagement. Eds: C.H. Steel, M.J. Keppell, P. Gerbic & S. Housego, Curriculum, technology & transformation for an unknown future. Sydney: Ascilite, 75–86 (2010) 25. Brooks, D. C., & Grajek, S.: Faculty readiness to begin fully remote teaching. Educause review, 12, (2020).
PEERS: A Digital Entrepreneurship Experiential Teaching and Learning Process Nur Thara Atikah Zainal
and Adeline Yin Ling Tam
Abstract With the advent of digital channels into the business environment, digital entrepreneurship has emerged as one of the emerging themes in Malaysian education in line with the Industrial Revolution 4.0. As a result, beginning in 2016, the topic of digital entrepreneurship has been included in the entrepreneurship curriculum of all higher learning institutions, specifically the Fundamentals of Entrepreneurial Acculturation (FEA). A few studies on entrepreneurial education have been conducted in Malaysia. However, there is a scarcity of contemporary research on digital entrepreneurship education in Malaysian higher learning institutions. Hence, the primary goal of this article is to discuss the effectiveness and efficiency of FEA in instilling digital entrepreneurship among students through the PEERS (Plan, Explore, Experience, Reflect, and Suggest) experiential teaching and learning process. Overall, three investigations are presented in the research. The findings have practical significance for higher learning institutions in terms of the role of teaching and learning approaches in improving the effectiveness of digital entrepreneurial education. Keywords Digital entrepreneurship · Teaching and learning · Experiential learning
1 Introduction Entrepreneurship is one of the important drivers for the nation’s economic growth to compete on a global scale. As a result, the Malaysian government has launched many entrepreneurial development programmes, particularly in higher learning institutions. Fundamentals of Entrepreneurial Acculturation (FEA) was introduced as a compulsory course for all public higher learning institutions in Malaysia by the Ministry of Higher Education (MOHE) in 2007. This course is designed for both N. T. A. Zainal (B) · A. Y. L. Tam Universiti Malaysia Sabah, Jalan UMS, 88400 Sabah, Malaysia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_67
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science and non-science students with the goal of developing entrepreneurship characteristics, knowledge, skills, and interest, as well as encouraging student participation in this entrepreneurial field after graduation. With the proliferation of digital technologies such as social media, mobile apps, and online marketplaces, particularly during the COVID-19 pandemic [1], the business environment has changed, and traditional entrepreneurship has transformed into digital entrepreneurship, which is one of the emerging topics in Malaysian education. Thus, in accordance with the Industrial Revolution 4.0, the digital entrepreneurship module was added to the mandatory entrepreneurship course at Malaysian higher learning institutions in 2016. Previous research has established the significance of entrepreneurship education in tertiary education, e.g., [2–6]. According to [2], entrepreneurship-focused teaching and learning can foster skills and knowledge among tertiary students and prepare them to be lifelong entrepreneurs. However, there is a debate about entrepreneurship education, specifically how entrepreneurship should be taught (practical examples of course design, delivery, and assessment) [7]. The diversity of students’ backgrounds (e.g., science and social science) and their lack of entrepreneurship knowledge may have a substantial impact on entrepreneurship teaching and learning [2]. A number of studies on entrepreneurial education have been undertaken in Malaysia. However, there is a scarcity of contemporary research on digital entrepreneurship education in Malaysian higher learning institutions [8]. The purpose of this article is to discuss digital entrepreneurship education, namely Fundamentals of Entrepreneurial Acculturation (FEA), at Universiti Malaysia Sabah (UMS), a public higher learning institution in East Malaysia. This article focuses on the digital entrepreneurship education experiential teaching and learning approach, which is the Plan, Explore, Experience, Reflect, and Suggest (PEERS) developed by the university. This study is significant for educators and training institutions in providing a direction for enhancing digital entrepreneurship education in Malaysia. Hence, the main objective of this paper is to investigate the effectiveness and efficiency of FEA in instilling digital entrepreneurship among students through the PEERS teaching and learning process.
2 Literature Review 2.1 Digital Entrepreneurship Education Entrepreneurship knowledge and skills can be taught and trained through entrepreneurship education [9, 10], which can be provided by educational institutions [11]. Entrepreneurship education is defined as a “formalised programme to equip students with the needed skills and knowledge to recognise business opportunities, search customers’ insights, network and understand the needs of the market, create ideas, develop a business plan, run a business and evaluate environmental, institutional and political issues” [12], p. 558. Digital entrepreneurship, on the other hand, is a subcategory of entrepreneurship that uses digital technologies to replace
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all or some physical channels in a conventional business [13, 14]. The transformation of the business environment from traditional to digital channels has resulted in the incorporation of digital entrepreneurship into current entrepreneurship education at Malaysian higher learning institutions. As a result, in this study, we refer to digital entrepreneurship education as a subclass of entrepreneurship education that employs digital technology. Entrepreneurship education plays a role in the identification and development of entrepreneurial characteristics in graduates [15]. A previous study supported this with their findings that entrepreneurship education in Malaysia is effective in developing entrepreneurial interest among graduates [16]. However, another study pointed out that the use of “traditional passive and incremental teaching approach”, which was found to be “flawed” over time, would not be effective for students studying entrepreneurship [17]. They called for new approaches to entrepreneurship teaching and learning. Hence, how should entrepreneurship education, specifically digital entrepreneurship education, be delivered to students [12]? There are relevant studies on entrepreneurship education in Malaysia, e.g., [16, 18, 19] and digital entrepreneurship [20]. Nonetheless, there is a dearth of recent research relevant to the concept of digital entrepreneurship education.
2.2 Entrepreneurship Education Delivery Theories and content adapted from business management results as well as management education that covers all areas in a short time [21] are taught in lectures. In a face-to-face lecture approach, there is a need for active practice in class, and that needs the involvement of educators. According to a recent study conducted in Malaysia [12], lectures were the traditional means of delivery in teaching entrepreneurship, and the authors believed that this was a passive delivery mode. This approach lacks stimulation of “knowing how” [22]. A previous study discovered that non-commerce polytechnic students in Malaysia were uninterested in studying entrepreneurship due to the structure of the curriculum, which was very theoretical and obsolete [18]. Furthermore, the authors indicated that the students had difficulty connecting the entrepreneurship subject to their existing programme. The content for entrepreneurship education in educational institutions should be designed to meet the students’ current skills and requirements, with the goal of increasing their interest in entrepreneurship [3]. Furthermore, entrepreneurship education should be geared toward students with no business background as well as students from different fields such as science and non-science [3, 23]. Entrepreneurship education should emphasise practices that promote essential entrepreneurial behaviours and learning by doing approaches that are appropriate for students from different backgrounds to experience the real business world and local community [24]. The traditional FEA curriculum at UMS used a passive approach. However, with the inclusion of a digital entrepreneurship module in 2018, a more experiential learning approach was implemented. Methodological approaches that enhance
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experiential learning are required for the development of students’ entrepreneurial mindsets [25, 26]. Some researchers have investigated learning models that foster experiential learning, e.g., [26]. Nonetheless, little research has been conducted on experiential teaching and learning model for digital entrepreneurship education. This article seeks to examine the effectiveness and efficiency of FEA in instilling digital entrepreneurship in students using the PEERS teaching and learning process.
2.3 Fundamentals of Entrepreneurial Acculturation (FEA) Course Since 2007, FEA has been offered to all undergraduate students at UMS in both the social sciences and scientific streams. This is a two-credit hour course that is taught over the duration of one semester (14 weeks). The course aims to introduce students to entrepreneurship concepts and theories, including cultivating students’ interest in becoming entrepreneurs, generating creative and innovative business ideas, establishing new business enterprises, managing a business, and marketing products and services in both offline and online platforms. In accordance with the goals of FEA, the practical learning experience is incorporated into the course syllabus in addition to regular lectures. Meanwhile, studentcentred learning and team-based learning are encouraged through a practical learning experience in which students, in groups of five to seven, build a new firm to conduct business in the real world. Practical learning accounts for up to 60% of overall FEA learning time [27]. There is minimal theoretical delivery during lectures. Instead, the course focuses on active student group activities in class to help students develop their understanding and skills around each concept. The main role of the lecturer is to facilitate and advise the students in conducting business activities. Consistently, there are both individual assignments and group assignments that all students must complete. The individual assignments include creating creative content such as a flat-lay photo of products or services and a promotional/review/ tutorial video marketing. For the group assignments, each group is required to do Business Model Canvas (BMC) presentation and written report, business practicum, and business e-portfolio presentation and written report.
2.4 Conceptual Framework: PEERS To further improve the teaching and learning of FEA, the PEERS teaching and learning process is designed and implemented with the goal of providing students with a holistic entrepreneurial experiential learning experience that includes planning, exploration, practical experience, reflection, and suggestion application. Consequently, the PEERS teaching and learning process is based on constructivism
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and social constructivism approaches. Constructivists emphasise the importance of providing individuals to develop their own knowledge [28]. This PEERS model promotes student-centred and team-based learning as well. Inside and outside of lectures, students are given the opportunity to actively participate and engage in the learning process as a group [29] (Fig. 1 and Table 1). Since February 2018, the FEA course has implemented a new curriculum that includes a digital entrepreneurship syllabus. The course is offered for seven semesters and has trained approximately 10,701 students till July 2022. This paper examines the implementation of a new syllabus in teaching and learning of FEA to make recommendations for continuous improvement of entrepreneurship education and to ensure the quality of entrepreneurship teaching and learning process. Fig. 1 PEERS teaching and learning process
Experience
Table 1 The stages of PEERS Stage of process
Explanation
Plan (P)
During lectures, all students understand digital business planning and align all the business strategies using the BMC. The BMC plan is presented and written in the report. The lecturer will give advice for improvements if necessary
Explore (E)
During the lecture, students explore the use and importance of digital business. Exploration activities are also carried out for further understanding of all the aspects of digital business such as the digital marketing techniques
Experience (E)
Students conduct their digital business as a group. Lecturers monitor the students’ digital business
Reflect (R)
Students present and write reports as a reflection of their digital marketing experience in the business, such as how they market their digital business, the problems that they face, and how they solve it
Suggest (S)
Students suggest improvements in digital business if they would like to continue or start another business
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3 Research Methodology To investigate the effectiveness and efficiency of FEA in instilling digital entrepreneurship among students, a mixed method design that combined both qualitative and quantitative studies was conducted. The mixed method design helps researchers to understand and interpret the “complexity of the teaching and learning process as a phenomenon” [30]. Both qualitative and quantitative studies were conducted simultaneously. For the quantitative study, an analysis of secondary data, a course evaluation report, and a questionnaire survey were conducted. Meanwhile, for the qualitative study, the student post-project written reflection was analysed. In study one, the course evaluation report by students was assessed as secondary data to compare the performance of the FEA course before and after digital entrepreneurship integration. The UMS administration conducts this course evaluation in which students of a course are expected to answer 22 questions that measure course preparation, lecture delivery, course assessment, learning outcome achievement, the facility provided, and soft skills enhancement. The question items were rated from 1 (very weak) to 5 (very good). Examples of questions included “written information on course implementation,” “positive change in attitude and behaviour,” and “the enhancement of communication skills.” This course evaluation was completed at the end of each semester to examine all university courses for control and ongoing development. A one-way ANOVA analysis was performed to compare course evaluations prior to digital entrepreneurship integration in 2017 to course evaluations after digital entrepreneurship integration in 2018 and 2019. In study two, an online self-administrated survey questionnaire was used to assess the students’ perceptions of their knowledge and skills before and after taking the FEA course. The questionnaire contained twelve questions divided into five aspects: (i) entrepreneurship concepts application, (ii) creativity and innovative demonstration, (iii) performing digital business, (iv) preparing creative content (copywriting preparation, photography taking, video recording, and poster design), and (v) marketing in online platforms (in Instagram, Facebook, WhatsApp, and website). The items were measured with a Likert scale ranging from 1 (strongly disagreed) to 5 (strongly agreed). Examples of the questions are “before the FEA course, I was able to apply the entrepreneurship concepts” and “after the FEA course, I was able to apply the entrepreneurship concepts.” All students who took FEA in the September–December 2019 and March–August 2020 were invited to answer the questionnaire via email or WhatsApp after the course was completed. A total of 406 responses were received from the survey, and paired sample t-test was used to analyse the data collected. In study three, 359 student post-project written reflections on the FEA were analysed using thematic analysis to gain a comprehensive understanding of the students’ perspectives on the teaching–learning process, particularly their assessments (quiz, content creation BMC presentation and written report, business practicum, and business e-portfolio presentation and written report). The analysis presented themes derived from the written reflections, and each student was assigned a pseudonym of their class number and faculty abbreviated name (e.g., Student 10 of Section 101, FSSK).
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4 Results 4.1 Study One One-way ANOVA analysis in study one found that the students perceived the FEA course teaching and learning in 2018 and 2019, after the digital entrepreneurship integration, to be significantly better than in 2017, before the digital entrepreneurship integration, in all aspects including the course preparation, direct lecture, course assessment, learning outcome achievement, facility, and soft skills enhancement (Table 2). The largest mean difference was observed in course preparation and followed by direct lecture. For course preparation, the mean was 4.435 in 2017, which significantly increased to 4.618 in 2018 (p = 0.003), and 4.637 in 2019 (p = 0.001). The students also perceived that direct lecture was better in 2018 (p = 0.007) and 2019 (p = 0.009) compared to 2017. Similar results were observed for course assessment (p = 0.018, p = 0.004), learning outcome achievement (p = 0.008, p = 0.002), facility (p = 0.010, p = 0.004), and soft skills enhancement (p = 0.002, p = 0.001). Hence, the students were more satisfied with the teaching and learning of FEA after digital entrepreneurship was integrated into the FEA syllabus. Meanwhile, the comparison between 2018 and 2019 showed no significant results in all aspects. The mean differences between 2018 and 2019 were low between 0.007 and 0.031 across all the dimensions. The results reflected that the students from different semesters had similar satisfaction with the implementation of teaching and learning of FEA with a new syllabus.
4.2 Study Two In study two, paired sample t-test results confirmed that the students significantly agreed with the learning of various digital entrepreneurship knowledge and skills in the FEA course. The details are presented in Table 3. Before taking the course, the students’ knowledge on entrepreneurship concepts application was 3.054. After taking the FEA, the students’ ability to apply entrepreneurship knowledge increased to 4.340 (mean difference = 1.286, p = 0.000). Likewise, the students’ ability to demonstrate creativity and innovativeness in doing business increased significantly (mean difference = 1.432, p = 0.000). Similarly, the students agreed that their abilities to perform digital business (mean difference = 1.448, p = 0.000), to prepare creative content (mean difference = 1.278, p = 0.000), and to perform marketing in online platforms (mean difference = 1.454, p = 0.000) were higher after taking the FEA course.
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Table 2 Descriptive and mean comparison results in study one Mean comparison
Descriptive statistics Variable
Year
Mean
Std. deviation
Std. error
Year comparison
Mean difference
Course preparation
2017
4.435
0.166
0.048
2017~2018
−0.183*
0.052
0.003*
2018
4.618
0.126
0.028
2017~2019
−0.202*
0.052
0.001*
Std. error
Sig.
2019
4.637
0.145
0.032
2018~2019
−0.019
0.045
0.906
Direct lecture 2017
4.392
0.200
0.058
2017~2018
−0.189*
0.059
0.007*
2018
4.581
0.125
0.028
2017~2019
−0.182*
0.059
0.009*
Course assessment
Learning outcome achievement Facility Soft skills enhancement
* The
2019
4.574
0.170
0.038
2018~2019
0.007
0.051
0.991
2017
4.414
0.176
0.051
2017~2018
−0.154*
0.055
0.018*
2018
4.568
0.118
0.026
2017~2019
−0.185*
0.055
0.004*
2019
4.599
0.160
0.036
2018~2019
−0.031
0.047
0.787
2017
4.441
0.180
0.052
2017~2018
−0.159*
0.051
0.008*
2018
4.600
0.092
0.021
2017~2019
−0.179*
0.051
0.002*
2019
4.620
0.149
0.033
2018~2019
−0.020
0.044
0.890
2017
4.400
0.176
0.051
2017~2018
−0.164*
0.054
0.010*
2018
4.564
0.109
0.024
2017~2019
−0.184*
0.054
0.004*
2017
4.467
0.146
0.042
2017~2018
−0.158*
0.043
0.002*
2018
4.625
0.085
0.019
2017~2019
−0.169*
0.043
0.001*
2019
4.636
0.126
0.028
2018~2019
−0.011
0.037
0.956
mean difference is significant at the 0.05 level
4.3 Study Three In study three, the thematic analysis showed five sets of skills that were gained or improved from the PEERS teaching and learning process. These skills included (i) entrepreneurship skills, (ii) communication skills, (iii) critical thinking and problemsolving skills, (iv) teamwork skills, and (v) information management skills (digital marketing skills) (Table 4).
5 Discussion The findings of the first study showed that when digital entrepreneurship was integrated into the FEA curriculum, the students were more satisfied with the teaching and learning of FEA. The findings corroborated a previous study [17] that claimed to adopt new teaching methods rather than traditional teaching methods effective in entrepreneurship education teaching and learning. Consistent with previous research
* The
4.448 2.994 4.448
After
Before
After
4.443 3.170
After
Before
2.995
Before
2.922 4.355
Before
After
1.034
0.633
1.072
0.633
0.957
0.692
1.100
0.666
1.019
0.680
−1.454
−1.278
−1.448
−1.432
1.135
1.022
1.209
1.098
1.123
−1.286
3.054 4.340
Before
After
Std. deviation
Mean comparisons Mean differences
Mean
Std. deviation
Paired samples descriptive
mean difference is significant at the 0.05 level
Perform marketing on online platforms
Prepare creative content
Perform digital business
Demonstrate creativity and innovative
Apply entrepreneurship concepts
Variable
Table 3 Descriptive and paired t-test results in study two
−25.816
−25.180
−24.128
−26.280
−23.067
t
405
405
405
405
405
df
0.000*
0.000*
0.000*
0.000*
0.000*
Sig. (2-tailed)
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Table 4 Examples of supporting quotes Themes
Examples of supporting quotes
Entrepreneurship skills
“During practical entrepreneurship activities it has given me the knowledge about business and how to start a good business as a group. It gives me the confidence to work in a group. I enjoyed the business that we did.” [Student 67 of Section 10, FSSK]
Communication skills
“After FEA I became less introvert, enjoy handling my business and learn to communicate with my customer more.” [Student 2 of Section 3, FSSA]
Critical thinking and problemsolving skills
“The BMC report taught me about goals and give our business a vision to achieve our goals. Through the pre-business pitching, we also succeeded to eliminate some things that are not desirable in our business and improve some earlier ideas doing a business practicum.” [Student 40 of Section 15, FSSA]
Teamwork skills
“It was all done because of teamwork. My group members helped each other a lot. We solved any problems which raised by discussing with each other when we were doing the portfolio.” [Student 80 of Section 102, FKAL]
Information management skills “The practical activities during class helped me a lot to learn to (digital marketing) use digital and technology in business especially using social media in marketing such as create Facebook Page, create website and review product in YouTube.” [Student 3 of Section 15, FSSK]
[3, 15], the findings of the second study supported the notion that entrepreneurship education through FEA can provide students with the skills, particularly digital business skills, to engage in business activities. The findings of the third study showed that there were five skills (entrepreneurship, communication, critical thinking and problem-solving, teamwork, and information management skills) that they valued the most from the PEERS teaching and learning process. Five of these skills were included in MOHE’s list of seven soft skills aimed at preparing undergraduates to face the demands of the workplace [8]. Nonetheless, the students’ written feedback did not highlight the other two soft skills listed by MOHE, which included leadership skills and knowledge of moral and professional ethics skills. This lends weight to the findings by [8, 16, 19] that leadership skills are one of the least attained soft skills. The researchers stated that “it could be because the course was mostly involving students in group projects. Not all students can lead their groups” [8, p.147]. On the other hand, the knowledge of moral and professional ethics skills was not highlighted in the students’ written reflections. This study found that the students did not focus on learning morals or ethics through the digital entrepreneurship PEERS teaching and learning process. This may not entirely corroborate the results reported by a previous study [8] that FEA improved students’ moral and professional ethics knowledge along with the rest of the soft skills (except leadership skills). Nonetheless, the study was conducted using a quantitative method [8], unlike the study three in this study. The study took into account that the written
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feedback provided by students was solicited through inquiries about their evaluations (quiz, content creation, BMC presentation, written report, business practicum, business e-portfolio presentation, and written report). Students are unlikely to reflect subjectively on their moral and ethical experiences gained through these assessments.
6 Implications for Theory and Practice The study contributed to the digital entrepreneurship education literature by introducing PEERS: digital entrepreneurship experiential learning model. Furthermore, this study added to the literature by investigating the efficacy and effectiveness of FEA in instilling digital entrepreneurship among students through the PEERS teaching and learning process. In terms of practical contribution, the study helped to inform the importance of adopting new teaching methods to improve the efficacy and effectiveness of entrepreneurship education. Higher education institutions may want to consider using an experiential learning model for digital entrepreneurship teaching and learning (e.g., PEERS), which allows students to learn a variety of digital entrepreneurship knowledge and skills, resulting in a holistic understanding of entrepreneurship. This research will also help to advance knowledge in the digital entrepreneurship context, which is important for digital economy development in this Industrial Revolution 4.0 era. However, the institutions may need to strengthen the model that emphasises students’ leadership and moral and ethical qualities in the teaching and learning process as well.
References 1. Ratten, V.: Digital platforms and transformational entrepreneurship during the covid- 19 crisis. International Journal of Information Management (May), 102534 (2022). 2. Murah, M. Z., Abdullah, Z.: An Experience in transforming teaching and learning practices in technology entrepreneurship course. Procedia Social and Behavioral Sciences 59, 164–169 (2012). 3. Othman, N., Nasrudin, N.: entrepreneurship education programs in Malaysian Polytechnics. Education and Training 58(7–8), 882–898 (2016). 4. Toding, M., Venesaar, U.: Discovering and developing conceptual understanding of teaching and learning in entrepreneurship lecturers. Education and Training 60 (7/8), 696–718 (2018). 5. Al-Mamary, Y.H.S. and Alraja, M.M.: Understanding entrepreneurship intention and behavior in the light of tpb model from the digital entrepreneurship perspective. International Journal of Information Management Data Insights 2(2), 100106 (2022) 6. Alferaih, A.: Starting a new business? assessing university students’ intentions towards digital entrepreneurship in Saudi Arabia. International Journal of Information Management Data Insights, 2(2), 100087 (2022).
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7. Mason, C., Arshed, N.: Teaching entrepreneurship to university students through experiential learning: a case study. Industry & Higher Education 27(6), 449–463 (2013). 8. Zainal, N. T. A., Yong, K.: Examining the digital entrepreneurship education effectiveness on soft skills among undergraduates. MANU Jurnal Pusat Penataran Ilmu Dan Bahasa (PPIB) 31(1):139–151 (2020). 9. Drucker P.F.: Innovation and entrepreneurship: practice and principles. Harper & Row, New York (1985). 10. Gorman G., Hanlon D., King W.: Some research perspectives on entrepreneurship education, enterprise education and education for small business management: a ten- year literature review. International Small Business Journal 15(3), 56–77 (1997). 11. Hytti, U., O’Gorman, C.: What is “enterprise education”? an analysis of the objectives and methods of enterprise education programmes in four European countries. Education and Training 46(1), 11–23 (2004). 12. Cheng, M.Y., Chan, W.S. and Mahmood, A.: The effectiveness of entrepreneurship education in Malaysia. Education and Training 51(7), 555–566 (2009) 13. Hull C.E., Hung, Y.T.C., Hair, N., Perotti, V., DeMartino, R.: Taking advantage of digital opportunities: a typology of digital entrepreneurship. International Journal of Networking and Virtual Organisations 4(3), 290–303 (2007). 14. Rippa, P., Secundo, G.: Digital academic entrepreneurship: the potential of digital technologies on academic entrepreneurship. Technological Forecasting and Social Change 146, 900–911 (2019). 15. Ibrahim, A.B., Soufani, K.: Entrepreneurship education and training in Canada: A critical assessment. Education and Training 44(8/9), 421–430 (2002). 16. Mohamed, Z., Rezai, G., Shamsudin, M. N., Mahmud, M. M.: Enhancing young graduates’ intention towards entrepreneurship development in Malaysia. Education and Training 54(7), 605–618 (2012). 17. Dzisi S., Odoom F.: Entrepreneurship education and training in higher educational institutions in Ghana. Journal of International Entrepreneurship 15, 436–452 (2017). 18. Ahmad, S.Z., Ismail, M.Z. and Buchanan, F.R.: Examining the entrepreneurship curriculum in Malaysian Polytechnics. International Journal of Management Education 12, 397–406 (2014). 19. Rahim, H. L., Abidin, Z. Z., Rosly, H. E.: Impact of entrepreneurship education effectiveness towards graduate employability. ASEAN Entrepreneurship Journal 2(1), 12–20 (2016). 20. Yaghoubi Farani, A., Karimi, S., Motaghed, M.: The role of entrepreneurial knowledge as a competence in shaping Iranian students’ career intentions to start a new digital business. European Journal of Training and Development 41(1), 83–100 (2017). 21. Haase H., Lautenschläger, A.: The “teachability dilemma” of entrepreneurship. International Entrepreneurship and Management Journal 7, 145–162 (2011). 22. Gibb A. A.: Enterprise culture and education: understanding enterprise education and its links with small business. International Small Business Journal 11(3), 11–34 (1993). 23. Othman, N., Hashim, N., Wahid, H. A.: Readiness towards entrepreneurship education: students and Malaysian universities. Education and Training 54(8/9), 697–708 (2012). 24. Suacamram, M.: Developing creativity and entrepreneurship of undergraduate students through a field trip overseas. International Journal of Instruction 12(1), 591–606 (2019). 25. Carland, J.C. and Carland, J.W.: Entrepreneurship education: an integrated approach using an experiential learning paradigm. In: R.H. Brockhaus, G.E. Hills, H. Klandt and H. P. Entrepreneurship Education. A global view. Eds. pp. 94–103. Ashgate, Burlington (2001). 26. La Guardia, D., Gentile, M., Dal Grande, V., Ottaviano, S., Allegra, M.: A game based learning model for entrepreneurship education. Procedia - Social and Behavioral Sciences 141, 195–199 (2014). 27. Zainal, N. T. A., Chiew, T. M., Boniface, B., Ambotang, A. S., Andin, C.: Transformasi asas pembudayaan keusahawanan menuju ke arah keusahawanan digital. In: 25 Tahun PPIB Perkembangan, Cabaran dan Pencapaian. Penerbit Universiti Malaysia Sabah, pp 47–56 (2019). 28. Fosnot C.T.: Constructivism: Theory, perspectives and practice. Teachers College Press (2013).
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29. Turan, S., Matteson, S.M.: Middle school mathematics classrooms practice based on 5e instructional model. International Journal of Education in Mathematics, Science and Technology 9(1), 22–39 (2021). 30. Ponce, O. A., Pagán-Maldonado, N.: Mixed methods research in education: capturing the complexity of the profession. International Journal of Educational Excellence 1(1), 111–135 (2015).
Technology and Innovation Adoption in Higher Education: A Study on Acceptance of Micro-credentials Learning Concept Nur Naddia Nordin , Nur Haiza Nordin , Nur Ilyana Amiiraa Nordin , and Norzalina Zainudin
Abstract Micro-credentials are alternative approaches to career and professional development that recognise individual skills and accomplishments. Besides enhancing skills, managing career pathways, and adding practicality to academic content, micro-credentials also provide opportunities to enhance knowledge. A micro-credential is also a cost-effective professional development strategy since it minimises training costs and time for employees. Other than that, micro-credentials enable students, educators, and communities to pursue lifelong learning. The purpose of this study was to examine the acceptance of micro-credentials by students participating in the Graduate Executive Marketer For SSPN-i programme. Using an online platform, data were collected from 61 students, and only 57 responses were received and analysed. There were positive direct statistically significant relationships between performance expectancy, social influence, perceived enjoyment, selfefficacy, and micro-credentials learning acceptance among the students. The microcredentials learning method was more likely to be accepted positively by students who believed that the micro-credentials were useful. This would, in turn, result in high self-efficacy and excellent learning performance. Keywords Technology · Innovation · Micro-credential · Acceptance
N. N. Nordin (B) · N. H. Nordin · N. I. A. Nordin Faculty of Entrepreneurship and Business, University Malaysia Kelantan, Kota Bharu, Malaysia e-mail: [email protected] N. Zainudin Faculty of Human Ecology, University Putra Malaysia, Serdang, Malaysia © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_68
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1 Introduction 1.1 Overview of Micro-credential A micro-credential is a digitally certified set of competences that are assessed for knowledge and expertise in each subject. Micro-credential courses are significantly more narrowly focussed than those in traditional academic programmes. Education is experiencing a change towards digital teaching and learning in the age of the digital revolution. In industrialised nations, online teaching and learning has long been used since it is thought to provide many advantages. Micro-credentials are some of the efforts that have emerged from sensitivity to technology sophism, which has unquestionably had a huge influence on higher education around the globe. Modern technology allows for learning to take place anytime, anyplace, and to the amount or percentage of information and abilities that the students want to acquire are obliged to learn and decide for themselves. In this context, micro-credentials are a notion for digital education that enables students’ learning, even on the smallest or small component of information or abilities, to be recognised. The Industrial Revolution 4.0 is spurred by the complexity of digital technologies. It appears to have altered how people live now. The educational sector is also going through significant transformation since it cannot escape the complexity of digital technology. By the use of technology, the utilisation of the virtual world as a holistic, reliable educational platform that offers a wide variety of options has recently witnessed a revolution in teaching and learning methodologies. This has greatly influenced a fresh change in teaching and learning techniques that are not constrained by place and time limitations (space and time). On the other hand, today’s educational landscape should be more adaptable, with teaching and learning sessions done whenever and wherever. The acknowledgement of the acquisition and attainment of a particular level of knowledge, skills, competences, and values, as well as the granting of credentials (credentials), also call for necessary modifications along with this shift in teaching and learning techniques. Micro-credentials are a notion that may be used in this situation to commission or grant a certification that is not only current but also, and perhaps more crucially, able to acknowledge the student’s acquisition of new information, skills, or competence. Since the complexity of digital technology has made it possible for the learning process to be applied to the most micro-knowledge component, occurring constantly and in a short amount of time, the notion of commissioning or awarding the microcredentials certification is, of course, also inspired by the new shift in teaching and learning techniques. To acknowledge the information, skills, or abilities that students master in micro-components, commissioning or granting of credentials should also be able to do so. The notion of micro-credentials allows for the recognition of the acquisition of information, skills, or abilities in a particular field of study. These competencies can be given as a micro-component of academic programmes that have received accreditation or as stand-alone credentials. These options support the academic, professional, technical, and personal formation of the individual. To satisfy these
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needs, micro-credentials have been developed. Flexible implementation of microcredentials is used, concentrating on the information or abilities needed to upskill or reskill the workforce, advance academic careers, or support lifelong learning. The objective of this study was to examine the students’ acceptance of microcredential as a new teaching and learning method offered by Universiti Malaysia Kelantan. A programme named Graduate Executive Marketer had been designed for SSPN-i. A total of 61 students had registered in this programme, which comprised four courses that contributed 26 micro-credential modules.
2 Literature Review Higher education institutions are crucial to the advancement of society and the generation of economic progress [1, 2]. They are frequently tasked with giving students an excellent education and arming them with knowledge and abilities in a more inexpensive and effective way [3]. Digital technology gives the higher education institutions the tools needed to enhance their operations and meet societal objectives [4]. Micro-credentials are one of the highly respected technology-backed tools in higher education. Universities are currently looking into alternatives to their regular degrees, which have not changed in a while [5]. Micro-credentials offer a useful substitute that satisfies the requirements of employers by giving a thorough picture of the learner’s skills and pertinent proof of how the learners acquire those skills. Micro-credentials are typically offered online and may be completed by students on their own schedule. They include components of collaborative, interactive, and student-centred learning [6]. In the event of university-issued badges, they can also be included to a student’s academic record. A digital badge is the certification and recognition of the accomplishment of a micro-credential and is portable across digital settings, including LinkedIn and social media [7]. Micro-credentials meet the rising need for self-directed, flexible learning and the development of skills not included in school curriculum [8]. To keep up with changing technology, educational trends, and institutional requirements, universities have had to alter, adapt, and update. Providing “21st-century learning that is networked, self-directed, project-based, and customised” means designing and delivering information online in a flexible and accessible way that responds to the wants and habits of today’s learners [9]. Micro-credentials meet the rising demand for self-directed, flexible learning and skills development outside of the classroom [8]. Rather than concentrating only on subject instruction, universities will learn news literacy, written and spoken communication, and career-specific skills and techniques and provide networking and knowledge-building opportunities [10]. As Massive Open Online Courses (MOOCs) and more digital channels have emerged, universities have been challenged to provide education more flexibly and to a wider audience.
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Performance expectancy
Social influence
Perceived enjoyment
Micro-credentials learning acceptance
Self-efficacy Fig. 1 Conceptual framework
The traditional method of teaching and granting degrees has been criticised by some as outdated or even the product of a previous, naive era [4]. The formalisation, acknowledgment, and verification of the informal accumulation of skills and information acquired alongside formal learning are made possible through micro-credentialed courses [11]. Higher education technologies also support credentials. Furthermore, any micro-credentials will be more likely to be supported and benefit from a competitive advantage due to institutions’ reputation and legitimacy [12]. The implementation of micro-credential platforms might assist the decoupling of higher education degree programmes for more efficiency and profitability, provide options for learners, and offset the decline in popularity of academic degrees [13]. It could also give learners a powerful means of being recognised for their abilities and competencies [14]. A conceptual framework was proposed based on the above discussion (Fig. 1). Based on the above framework, four hypotheses were proposed to be tested in this research. H1 There is a positive relationship between performance expectancy and microcredentials learning acceptance. H2 There is a positive relationship between social influence and micro-credentials learning acceptance. H3 There is a positive relationship between perceived enjoyment and microcredentials learning acceptance. H4 There is a positive relationship between self-efficacy and micro-credentials learning acceptance.
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3 Research Methodology The data were collected using a questionnaire distributed to the respondents via Google Forms. Using the non-probability sampling method, the total responses collected were 57 from the students taking a micro-credential course. The first section consisted of general demographic questions for classification purposes. The second section consisted of the factors of acceptance of micro-credential course. The questionnaire was measured by using a five-point Likert type scale, ranging from 5 “strongly agree” to 1 “strongly disagree”. The data were analysed using Partial Least Squares and Structural Equation Modelling (SEM) technique.
4 Results and Analysis 4.1 Demographic Profile From 61 students in the micro-credential course, only 57 responses were received and analysed. As shown in Table 1, there were 78.94% male respondents and 21.05% female respondents, with those of 21–25 years old formed the majority. All the respondents were studying locally. Table 1 Respondents’ profile Demographic
Frequency
Percent
45
78.94
1
Gender
Male Female
12
21.05
2
Age
15–20 years
3
5.26
21–25 years
39
68.42
3
4
Race
Place of study
26–30 years
12
21.05
31–35 years
3
5.26
Malay
45
78.94
Chinese
9
15.78
Others
4
7.01
Local
57
100
Abroad
0
0
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4.2 Measurement Model Two-step approach was conducted in this study, which evaluated the calculation model and the structural model. Firstly, the associations between the items and constructs were measured based on the measurement model. Secondly, the association between the independent and dependent constructs was measured in the structural model. The convergent and discriminant validity conditions were tested in the measurement model. Table 2 depicts the measurement model of this study. This study tested the loading value using the composite reliability (CR) and average variance defined (AVE). The loading and AVE values should be greater than 0.5, and the CR value should be at least 0.7 [15]. From the results in Table 2, the range of the loading, AVE, and CR exceeded the suggested value. The range for loading was from 0.84 to 0.93, the range for AVE was from 0.71 to 0.84, and the range for CR was from 0.86 to 0.93. Therefore, these findings suggested that the convergent validity was achieved. Table 2 Convergent validity Construct
Indicator Loadings Cronbach’s Composite AVE alpha reliability
Micro-credentials MC1 learning MC2 acceptance (MC) MC3
0.983
MC4
0.921
PE1
0.876
PE2
0.832
PE3
0.901
PE4
0.899
SI1
0.876
SI2
0.871
SI3
0.867
SI4
0.912
P1
0.846
P2
0.818
P3
0.903
P4
0.883
SE1
0.889
SE2
0.914
SE3
0.874
SE4
0.787
Performance expectancy (PE)
Social influence (SI)
Perceived enjoyment (P)
Self-efficacy (SE)
R-square Composite reliability
0.939
0.859
0.718 0.851
0.936
0.919
0.840
0.758 0.771
0.938
0.832
0.914
0.751 0.776
0.932
0.916
0.901
0.845 0.790
0.921
0.936
0.922
0.836 0.856
0.867
0.918 0.844
Source Authors’ estimates based on the survey data
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Table 3 Discriminant validity (HTMT) SE
P
SI
PE
MC
SE
0.731
P
0.702
0.821
SI
0.768
0.790
0.830
PE
0.745
0.831
0.898
0.834
MC
0.709
0.825
0.865
0.876
0.931
After achieving the criteria for convergent validity, discriminant validity was further achieved by testing the presence of discriminant validity in the model using the correlation criteria heterotrait–monotrait (HTMT) ratio in deciding whether all constructs in the established model varied from other constructs. It was found that each construct was unique and was not described in the model by other constructs [15]. In line with [16] recommendation, all HTMT scores were smaller than the threshold score of 0.90 (Table 3). Therefore, this showed that the model fulfilled the suggested criteria, and all structures of the analysis were validated via discriminant validity.
4.3 Structural Model Analysis This study evaluated multivariate skewness of Mardia (multivariate skewness and kurtosis) as indicated by [17, 18]. The findings showed that the data we obtained were not regular multivariate kurtosis of Mardia (β = 69.59, p < 0.01), so we recorded the path coefficients, the standard errors, t-values, and p-values for the structural model using a 5,000-sample re-sample bootstrapping procedure following the suggestion on [18]. The description of the parameters we used to test the hypotheses formed is shown in Table 4. To test the hypothesis acceptance, the results showed that R2 was 0.754, which indicated that 75.4% of the independent variable influenced the dependent variable. The results for the std. beta and p-value for each variable are: performance expectancy Table 4 Hypothesis testing direct effects Hypothesis
Relationship
Std. beta
Std error
t-values
p-values
f2
VIF
Results
H1
MC → PE
0.782
0.187
3.093
0.000
0.814
1.000
Supported
H2
MC → SI
0.589
0.128
3.842
0.283
0.655
1.000
Not Supported
H3
MC → P
0.743
0.065
3.290
0.070
0.430
1.000
Supported
H4
MC → SE
0.867
0.095
3.862
0.000
0.784
1.000
Supported
Note We used a 95% confidence interval
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(β = 0.782, p < 0.00), social influence (β = 0.589, p < 0.283), perceived enjoyment (β = 0.743 p < 0.07), and self-efficacy (β = 0.867, p > 0.000). Therefore, all the hypotheses were positively related to the acceptance of micro-credential learning except social influence. The highest results showed that the performance expectancy was the most important factor influencing acceptance of micro-credential learning. These results were supported by [19] as they also found that the usability of the website was most important factor influencing the effectiveness of online learning. Globally, the incorporation of digital technologies at higher education institutions has a significant impact on formal learning [20].
5 Conclusion We require a high level of preparedness so that we can swiftly react to environmental changes and to various delivery methods such as remote learning or online learning during the COVID-19 pandemic. To address issues like pandemics and natural calamities, institutions and organisations should create backup plans. Microcredentials are one way universities are reacting to the way in which learning is growing and extending outside of the classroom. This undoubtedly has consequences for teaching and learning inside universities. Micro-credentials are a further step in institutions’ reorientation towards digital learning environments and their delivery [11]. Students already have the chance to develop knowledge and abilities outside of the curriculum, whether via student activities, mentorship, volunteering, or the informal development of talents. Universities are also in a good position to approve such activities and take advantage of the expansion of online learning and learning through social networks [12]. Micro-credentials expand learning possibilities and provide educators more freedom [21]. They specifically provide students the freedom to customise their education and progress at their own speed [22]. The technological and pedagogical proficiency of online instructors is crucial. Continuous improvement and strict quality control procedures are essential for the success of online learning and preparing people for any crisis-like events.
References 1. Brezis, E. S., & Crouzet, F.:The role of higher education institutions: recruitment of elites and economic growth. Institutions, development, and economic growth, 13, 191 (2006) 2. Cortese, A. D.: The critical role of higher education in creating a sustainable future. Planning for higher education, 31(3), 15–22 (2003). 3. Lemoine, P. A., Wilson, W. M., & Richardson, M. D.: Marketing micro-credentials in global higher education: Innovative disruption. In Marketing initiatives for sustainable educational development (pp. 182–204). IGI Global. (2018).
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4. de Botton, A.: The desire for credentials in an age of anxiety. The Chronicle of Higher Education. Retrieved from https://www.chronicle.com/article/The-Desire-for-Credentials-in/232971 (2015). 5. Gallagher, S.: A new era of microcredentials and experiential learning. University World News, 15. (2019). 6. Ruddy, C., & Ponte, F.: Preparing students for university studies and beyond: A microcredential trial that delivers academic integrity awareness. Journal of the Australian Library and Information Association, 68(1), 56–67 (2019). 7. Wilson, B. G., Gasell, C., Ozyer, A., & Scrogan, L.: Adopting digital badges in higher education: Scoping the territory. In Ifenthaler D., Bellin-Mularski N., Mah DK. (Eds.), Foundation of Digital Badges and Micro-Credentials. Springer, Cham (2016). 8. Dowling-Hetherington, L., & Glowatz, M.: The usefulness of digital badges in higher education: Exploring the students’ perspectives. Irish Journal of Academic Practice, 6(1), 1(2017). 9. Hickey, D. T.: How open E-Credentials will transform higher education. The Chronicle of Higher Education. Retrieved from https://www.chronicle.com/article/How-Open-E-Creden tials-Will/239709 (2017). 10. Nordin, N., Nordin, N. N., Nordin, N. I. A., & Nordin, N. F. (2023). The Successful Factors of Online Learning for Malaysia Higher Education Students: Smart PLS-SEM Analysis. In International Conference on Business and Technology (pp. 803–815). Springer, Cham. 11. O’Connor, K.: MOOCs, institutional policy and change dynamics in higher education. Higher Education: the International Journal of Higher Education and Educational Planning, 68 (5), 623–635 (2014). 12. Wolfe, J. K., & Andrews, D. W.: The changing roles of higher education: Curator, evaluator, connector and analyst. On the Horizon, 22(3), 210–217 (2014). 13. Ehlers, U.-D.: Higher Creduation–Degree or Education? The Rise of Microcredentials and its Consequences for the University of the Future. s.l., European Distance and E-Learning Network (EDEN) Conference Proceedings, pp. 456–465 (2018). 14. Hall-Ellis, S. D.: Stackable micro-credentials – a framework for the future. The Bottom Line, 14 November, 29(4), pp. 233–236 (2016). 15. Hair Jr, J. F., Sarstedt, M., Ringle, C. M., Gudergan, S. P.: Advanced issues in partial least squares structural equation modeling. saGe publications. (2017). 16. Henseler, J., Müller, T., Schuberth, F.: New guidelines for the use of PLS path modeling in hospitality, travel, and tourism research. In Applying partial least squares in tourism and hospitality research. Emerald Publishing Limited. (2018). 17. Cain, M. K., Zhang, Z., Yuan, K. H.: Univariate and multivariate skewness and kurtosis for measuring nonnormality: Prevalence, influence and estimation. Behavior research methods, 49(5), 1716–1735 (2017). 18. Hair, J. F., Risher, J. J., Sarstedt, M., Ringle, C. M.: When to use and how to report the results of PLS-SEM. European business review, 31(1), 2–24 (2019). 19. Blayone, T. J., vanOostveen, R., Barber, W., DiGiuseppe, M., & Childs, E. (2017). Democratizing digital learning: theorizing the fully online learning community model. International Journal of Educational Technology in Higher Education, 14(1), 1–16 20. Seville E., Hawker C., Lyttle J. (2012). Resilience tested: A year and a half of ten thousand aftershocks. University of Canterbury. 21. Bradley, D., Noonan, P., Nugent, H., & Scales, B.: Review of Australian higher education: Final report. Canberra, Australia: Department of Education, Employment and Workplace Relations (2008). 22. Crow, T.: Micro-credentials for impact: Holding professional learning to high standards. Digital Promise (2016).
Macroeconomic Learning Through Innovative Pedagogy and Technology: A Study on the Effectiveness of Blended Learning Nur Naddia Nordin , Nur Haiza Nordin , Nur Ilyana Amiiraa Nordin , and Norzalina Zainudin
Abstract Macroeconomics is one of the less popular courses among students that requires them to understand concepts and theories, and master mathematical and statistical skills. Failure to understand the concepts in economics is among the main causes of students’ failure following economic learning. The technological advances of the world have brought many changes in the world of education. The development of information and communication technology in the era of Industrial Revolution 4.0 has had a huge impact, not only on the development of the country, but also on the today’s world education. This development has brought about a new transformation in the world of education. The purpose of this study is to examine the effectiveness of blended learning using the Learning Management System (LMS) platform through e-campus for macroeconomic learning at Universiti Malaysia Kelantan. A total of 120 macroeconomics students from the Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, were the respondents for this study. The PLS-SEM is employed to analyse the objectives of this research. Findings show that the use of blended learning is highly significant. Blended learning is well received by students enrolled in the macroeconomics course. Yet, successfully integrating blended learning into curriculum demands improved strategies and a more proactive approach. Keywords Innovative pedagogy and technology · Blended learning · Effectiveness
N. N. Nordin (B) · N. H. Nordin · N. I. A. Nordin Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Kota Bharu, Malaysia e-mail: [email protected] N. Zainudin Faculty of Human Ecology, Universiti Putra Malaysia, Serdang, Malaysia © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 M. N. H. Yusoff (ed.), Industry Forward and Technology Transformation in Business and Entrepreneurship, https://doi.org/10.1007/978-981-99-2337-3_69
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1 Introduction The technological advances of the world have brought many changes in the world of education. The development of information and communication technology in the era of Industrial Revolution 4.0 has had a significant impact not only on the development of the country but also on the world of education today [1]. This development has brought about a new transformation in the world of education. Today’s world of education is no longer conventional, but out of the box, where it has reached far ahead, surrounded by an environment more geared towards information and communication technology, which has also changed the way people learn [2]. The process of teaching and learning nowadays is no longer limited in the classroom as the session can happen anywhere and at any time. Self-learning becomes one of the learnings that students are interested in at the university. Thus, the education system has undergone another evolution in educational technology when mobile learning (Mobile Learning) or m-learning was introduced to improve the level of teaching and learning processes. M-learning is a new concept implemented in the learning process and it emphasises the ability to facilitate the learning process without being tied to the physical location of the learning process [3]. Reference [4] supported in their study that m-learning is a way to make learning a subject more interesting and effective. Macroeconomics is one of the less popular courses among students. Students need to understand the concepts, theories, and they are required to master mathematical and statistical skills. Specifically, the macroeconomic course has six objectives, namely: (1) to understand the basic concepts and principles of economics; (2) linking basic economic concepts and principles with everyday life; (3) to identify and be concerned about current economic problems and issues; (4) to foster and develop interest and curiosity towards economic phenomena; (5) to utilise the knowledge and skills learned in order to be able to play the role of a wise, rational, and responsible consumer, producer, member of society, and citizen; and (6) to practice and appreciate social and economic values and make decisions by being responsible for the well-being of oneself, family, society, and the country. Failure to understand concepts in economics is one of the main causes of students’ failure [5]. The failure of students to master basic statistical and mathematical skills, including the skill of interpreting graphs also makes it difficult for students to understand the relationship between economic concepts and related data. In that case, the gamification method is seen as an alternative to the solution of this problem. Reference [6] stated that traditional methods are no longer suitable to be applied in the learning process in the twenty-first century. This is because learning patterns need to be done actively to increase the motivation of students in learning, especially for courses related to numbers [7]. This is supported by [8] in which students are unable to understand the learning content of quantitative courses such as economics, mathematics, physics, and statistics through the traditional approach due to the nature of the courses that require students to provide a high level of concentration to understand the learning content. According to [9], which supports this conclusion, employing
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traditional techniques to provide the learning process will lead to easily dozed-off students and a depressing learning environment. This will decrease the level of motivation among students. Therefore, instructors need to use a variety of creative and innovative approaches to improve students’ understanding [10]. Macroeconomics course is a core course that is compulsory for all students, who are pursuing a Bachelor’s Degree programme at the Faculty of Entrepreneurship and Business (FKP). This course involves concepts, theories, and requires the students to master mathematical and statistical skills. Students who take this course are those from Bachelor of Entrepreneurship, Bachelor of Commerce, Bachelor of Retail, Bachelor of Islamic Banking and Finance, and Bachelor of Logistics and Distribution Business. One of the issues faced occurred at the end of the semester, where based on the evaluation of course, students who enrolled in this course expressed their inability to demonstrate understanding of concepts and theories, as well as failed to apply macroeconomic theories and concepts in proposing solutions to current economic issues. Students also stated macroeconomics course as a very difficult course as it involves theory together with mathematics and statistics. In addition, this course requires students to be autonomous and understand the concepts or principles on their own. However, the involvement and ability to conduct self-learning is sorely lacking in macroeconomic subjects.
2 Literature Review In the current era of Industrial Revolution 4.0, universities must adapt to the development of technology, one of which is to create a conducive and enjoyable learning process. Lecturers play an important role in terms of developing innovations, or ideas for the use of technology in learning. References [11, 12] stated that the advantages of learning with technology can create an effective learning climate for students who are slow to learn, stimulate students in doing training, and be able to adjust the speed of learning that can match with students’ abilities. The use of technology as a medium of learning can provide different learning experiences to students and lecturers. Conventional learning that only focuses on learning in the classroom cannot fully promote the development of students’ knowledge. Therefore, self-learning using appropriate technology in the process of Teaching and Learning (P&P) is necessary for students nowadays. In addition, R&D is no longer solely focussed on space, but it can happen anywhere and at any time known as mobile learning. Some literature revealed that learning, which is a gaming approach that involves students’ participation in digital technology, shows a greater desire to continue the next learning process than conventional learning. Reference [13] states that game-based learning is a tool that can help students solve problems, improve critical thinking, and make judgments in the learning process. Reference [14] states that game education (educational game) is a game that is used in the learning process, where in the game, it contains the elements of education or educational values.
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Information and communication technology as a communication medium is in great demand by today’s generation to obtain information quickly. Modernity and the development of information and communication technology (ICT) require changes to teaching and learning methods [15]. The use of ICT in teaching and learning has the potential to generate the distribution of information at any time [16] and if not, integrated in teaching and learning will only leave a negative impact on students [17]. References [16, 18] expressed the importance of ICT integration in the teaching and learning process in view of the need of this century to produce creative, innovative and competitive students. Studies have also shown that students who are allowed to use ICT technology tools are found to have better quality experience, are able to contribute motivational effects and want to compete in academic achievement. According to [19], the use of multimedia can be a positive and effective communication medium as text, audio, video and animation of various colours and patterns can be displayed on screen at the same time. A teaching and learning system that applies hypermedia elements such as animation, sound, graphics, hypertext, and colour makes the system’s presentation more interesting and could attract students [20, 21]. The use of multimedia technology allows knowledge to be presented more interestingly, convincingly, and effectively from various points of view, and such software deficiencies need to be overcome immediately. According to [22], interactive multimedia has also proven to be effective in shaping and maintaining information for a long period of time and it can be reached back in a faster than traditional teaching methods. According to [23], game-based learning allows students to achieve the same learning performance as conventional learning methods. Reference [24] states that educators play an important role in linking learning with new and up-to-date technologies. In addition, [25] states that learning using mobile technology has great potential to be integrated into teaching and learning pedagogy. Reference [26] stated that innovation in the fission models is indispensable and urgent, especially in generating new learning models that can provide more learning outcomes. Figure 1 shows the conceptual framework for this study. The objective of this study is to investigate the relationship between Usefulness of Technology (UT), Self-Efficacy (SE), Encouragement (E), and Interactive Learning Environment (IL) on the Effectiveness of Blended Learning (BL) for Macroeconomic students at UMK.
3 Methodology This study was quantitative research. A cross-sectional data collection with a survey technique through questionnaires involving the macroeconomics students was conducted. Multistage random sampling was utilised to choose the respondents. In the first stage, the state was randomly selected. The sample size was set at 120 respondents. The PLS-SEM was employed to analyse the objectives of this research.
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Usefulness of Technology (UT) Effectiveness of Blended Learning (BL)
Self-Efficacy (SE)
Encouragement (E)
Interactive Learning Environment (IL)
Fig. 1 Conceptual framework
Table 1 Respondents’ profile Demographic 1 2
3
4
Gender Age
Race
Place of study
Frequency
Percent
Male
58
48.3
Female
62
51.7
15–20 years
3
2.5
21–25 years
59
49.2
26–30 years
49
40.8
31–35 Years
9
7.5
Malay
79
65.8
Chinese
34
28.3
Others
7
5.8
Local Abroad
120 0
100.0 0.0
4 Results and Discussion 4.1 Respondent Profile The demographic background of the respondents consists of 120 macroeconomics students as shown in Table 1. The details for the demographic are shown in Table 1.
4.2 Assessment of the Measurement Model Reference [27] stated the two-step approach that was introduced in this study, which evaluates the calculation model and the structural model. First, the associations between the items and constructs were measured based on the measurement model.
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Second, the association between the independent and dependent constructs was measured in the structural model. The convergent and discriminant validity conditions must also be met in the measurement model. Table 2 depicts the measurement model of this study. This study tested the loading value using the composite reliability (CR) and average variance defined (AVE). The loading and AVE values should be greater than 0.5 and the CR value should be at least 0.7 [28]. From the results in Table 2, the range for the loading, AVE and CR exceeded the suggested value. The range for Table 2 Convergent validity Construct Usefulness of Technology (UT)
Self-Efficacy (SE)
Indicator Loadings Cronbach’s Composite AVE alpha reliability UT1
0.983
UT2
0.742
UT3
0.821
UT4
0.921
UT5
0.812
SE1
0.881
SE2
0.878
SE3
0.901
SE4
0.855
SE5
0.874
SE6
0.856
Encouragement E1 (E) E2
0.832
E3
0.847
E4
0.913
Interactive Learning Environment (IL)
Effectiveness of Blended Learning (OL)
0.876
E5
0.847
E6
0.818
IL1
0.822
IL2
0.836
IL3
0.916
IL4
0.876
IL5
0.817
OL1
0.867
OL2
0.965
OL3
0.856
OL4
0.761
OL5
0.865
R-square Composite reliability
0.932
0.759
0.771 0.845
0.943
0.945
0.97
0.738 0.791
0.948
0.832
0.926
0.731 0.763
0.963
0.924
0.928
0.829 0.719
0.938
0.904
0.912
0.843 0.876
0.901
Source Authors’ estimates based on survey data
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Table 3 Discriminant validity (HTMT) IL
SE
E
UL
IL
0.784
SE
0.718
0.876
E
0.769
0.537
0.861
UL
0.781
0.782
0.880
0.899
OL
0.769
0.854
0.892
0.887
OL
0.943
loading was between 0.7 to 0.92, the range for AVE was between 0.73 to 0.84, and the range for CR was from 0.901 to 0.963. Therefore, these findings suggested that convergent validity was achieved. After achieving the criteria for convergent validity, discriminant validity was further achieved by testing the presence of discriminant validity in the model using the correlation criteria Hetrotait-Monotrait (HTMT) ratio. This approach decides whether all constructs in the established model varied from other constructs. Resultantly, each construct was unique and not described in the model by other constructs [28]. In line with [29] recommendation, all HTMT scores were smaller than the threshold score of 0.90 (Table 3); therefore, this shows that the model has fulfilled the suggested criteria and that all structures of the analysis were validated via discriminant validity.
4.3 Structural Model We evaluated the multivariate skewness of Mardia (multivariate skewness and kurtosis), as indicated by [28, 30]. The findings showed that the data the researchers obtained were not regular multivariate kurtosis of Mardia (β = 69.59, p < 0.01), so the researchers recorded the path coefficients, the standard errors, t-values, and p-values for the structural model using a 5,000 re-sample bootstrapping procedure, following the suggestion on [31]. Reference [32] also criticised that p-value is not a good criterion for evaluating the validity of the hypotheses and proposed using a mix of metrics such as p-values, confidence ratio, and effect sizes. The description of the parameters that the researchers have used to test the hypotheses formed is shown in Table 4. To test the hypothesis acceptance, the three variables, namely attitude, subjective norm, and plan behaviour control were used onto the dependent variable. The results show that R2 is 0.904, which indicates that 90.4% of the independent variable influences the dependent variable. The results for the std beta and p-value for each variable usefulness of technology are (β = 0.880, p