Search results

1 – 6 of 6
Article
Publication date: 5 July 2024

Adilah A. Wahab, Siti Aisah Bohari and Wei Chyi Sheng

The purpose of this paper is to examine the importance of contractual management (CM), process management (PM) and human management (HM) factors as critical success factors (CSFs…

Abstract

Purpose

The purpose of this paper is to examine the importance of contractual management (CM), process management (PM) and human management (HM) factors as critical success factors (CSFs) in Malaysian housing projects. Additionally, it delves into the moderating influence of knowledge sharing (KS) on the relationship between HM and project success.

Design/methodology/approach

This study used a survey-based instrument to collect data from a total of 133 G7 class contractors. The stratified sampling method was used for data collection. Subsequently, structural equation modeling with SmartPLS was used for model evaluation.

Findings

The findings of this study indicate that CM, PM and HM exhibit significant relationships with housing project success. Furthermore, the research reveals that KS acts as a moderator in the relationship between HM practices and the success of housing projects.

Research limitations/implications

Although this study identified a significant relationship in explaining CSFs for housing project success in Malaysia, it only considers internal CSFs such as CM, PM and HM. It is suggested that future research incorporate external factors such as political support, national policy, currency stability and industry structure to provide a more comprehensive understanding of housing project success.

Originality/value

The results provide supportive evidence that CM, PM and HM are important CSFs in the success of housing projects. This finding is consistent with relational contractual theory, systems theory and social interaction theory. Moreover, the research underscores the nuanced impact of KS, serving as a moderating factor in the association between HM and project success. Consequently, these outcomes substantiate the applicability of the socialization, externalization, combination and internalization framework within the construction sector, particularly within the sphere of housing sector.

Details

International Journal of Housing Markets and Analysis, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1753-8270

Keywords

Article
Publication date: 14 October 2019

Ruzita Abdul-Rahim, Adilah A. Wahab and Nor Amalina Yusoff

The purpose of this paper is to investigate whether the shariah-compliant status of the firms negatively influences their use of foreign exchange hedging instruments.

Abstract

Purpose

The purpose of this paper is to investigate whether the shariah-compliant status of the firms negatively influences their use of foreign exchange hedging instruments.

Design/methodology/approach

This paper uses a logit panel regression on 350 firm-year observations from 70 nonfinancial listed firms over the period from 2010 to 2014. Shariah-compliant companies account for about 84 per cent of the sample firms.

Findings

Preliminarily, the results show that none of the samples of the shariah-compliant firms report any use of Islamic hedging instrument, either in the form of wa’d or tawarruq. The results of the study’s logit panel regression contradict the authors’ prediction that the shariah-compliant status negatively influences firms’ decision to hedge. In contrast, shariah-compliant companies are twice as likely as their conventional counterparts in adopting forex hedging.

Research limitations/implications

This study is limited to information disclosed in the items 31, 36 and 37 of financial management policies in the annual report. However, given that shariah-compliant firms must abide by the limit of 5 per cent profits before tax from clearly prohibited activities (including riba’), the need for exclusive disclosure on the adoption of Islamic or conventional hedging appears to be imperative for the viability of the Malaysian Islamic capital market.

Practical implications

In evaluating the shariah compliance of a company, investors (individual or institutional) must look further than just interest-based riba’ in mixed-business companies to ensure that they comply with the 5 per cent maximum requirement on the non-halal business contribution to profit. This is because the finding of this study indicates that shariah-compliant companies are twice as likely to adopt forex hedging, when none of them reports the use of Islamic hedging tools. Investors must therefore give ample allowance to riba’ that can be induced through the use of conventional forex hedging instruments. This is until the security market regulator imposes a requirement on shariah-compliant companies an explicit disclosure of the use of Islamic versus conventional hedging tools, as they had done in the case of Islamic versus conventional debt instruments.

Social implications

Muslim and socially responsible investors rely on the Shariah-compliant status of the company in ensuring that their wealth grows according to the Shariah principles. To sustain and develop the Islamic capital market which the firms have been relying on for external capital, Shariah-compliant firms and the authority awarding the status are equally responsible for honoring the trust that these investors by ensuring the permissibility (halal) of the business and the conduct of their business.

Originality/value

Conventional forex hedging instruments are criticized for violating as-sarf, a shariah principle, which requires the exchanges of particular assets (gold, silver and currency) to be delivered on the spot, and thereby infusing riba’ al-fadhl. Although Islamic (wa’d- or tawarruq-based) hedging instruments are widely available by Islamic banks in this country since they were introduced by Bank Negara Malaysia in 2010, paradoxically, the authors’ observation indicates that none of the studied firms reports the adoption of these instruments in their annual reports.

Details

Journal of Islamic Accounting and Business Research, vol. 10 no. 5
Type: Research Article
ISSN: 1759-0817

Keywords

Open Access
Article
Publication date: 2 June 2022

Ruzita Abdul-Rahim, Adilah Abd Wahab and Mohammad Hudaib

Drawing upon underinvestment theory and clientele effect hypothesis, this paper aims to examine the effects of foreign currency (forex) exposure and Shari’ah-compliant status on…

2794

Abstract

Purpose

Drawing upon underinvestment theory and clientele effect hypothesis, this paper aims to examine the effects of foreign currency (forex) exposure and Shari’ah-compliant status on firms’ financial hedging strategy.

Design/methodology/approach

Based on data of 250 nonfinancial firms listed on Bursa Malaysia from 2010 to 2018 (2,250 firm-year observations), the authors test the impact of forex exposure based on a vector of foreign-denominated cash flows (FCF) indicators and firms’ Sharīʿah-compliant status on two proxies of financial hedging decisions, namely, the ratio of the notional value of currency derivatives to total assets and a binomial measure of hedging status. The hedging decision models are estimated using panel logistic regression and system generalized method of moments.

Findings

The results indicate significant positive effects of the forex exposure indicators on firms’ propensity to hedge. However, the impact of forex exposure is most prevalent via total FCF. The results also reveal significant positive effects of Sharīʿah-compliant status on firms’ propensity to hedge but its negative impacts on the value of currency derivatives they use. The results suggest that Sharīʿah-compliant firms refrain from engaging in currency derivatives to avoid riba’ and subsequently subdue the clientele effect. However, when the forex exposure reaches higher levels, engagement in currency derivatives becomes a matter of tentative necessity (dharurat).

Research limitations/implications

This study relies exclusively on the disclosure of foreign currency risk and management data in the annual reports of listed companies. Consequently, this limits the sample size to only those nonfinancial listed companies with complete data for the study period. Also, since none of the companies reports using Sharīʿah-compliant derivatives, the authors thus assume that they use derivative instruments that tolerate “riba.”

Practical implications

Given the significance of forex exposure on hedging decisions, the accounting profession must strictly adopt FRS 7 and FRS 139 for all listed firms to avoid market scrutiny and sustain their clientele. The results also call for the Islamic market regulators to include mandatory disclosure of conventional currency derivatives in screening firms for clearly prohibited activities to help enhance the credibility of its Islamic financial market.

Originality/value

Due to difficulty accessing relevant cash flow data, the study is among the few studies that measure forex exposure using FCF and test more proxy indicators. This study is perhaps the first to examine the Shari’ah perspective on currency derivatives in corporate forex risk management.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 16 no. 2
Type: Research Article
ISSN: 1753-8394

Keywords

Article
Publication date: 9 June 2022

Mohamad Ghozali Hassan, Muslim Diekola Akanmu, Pirabarkaran Ponniah, Kamal Imran Mohd Sharif, H.M. Belal and Adilah Othman

The aim of this study is to develop a framework for the implementation of a Supplier Kanban System.

908

Abstract

Purpose

The aim of this study is to develop a framework for the implementation of a Supplier Kanban System.

Design/methodology/approach

The research was conducted within a factory focusing on the warehousing and supplier-related operations using an action research methodology.

Findings

The study period spanning over six years was aimed to reduce the inventory and the manpower required to manage this inventory. This initiative led to a substantial average savings of more than 500,000 Malaysian ringgit annually.

Research limitations/implications

The focus of the study is on a framework for implementing a Supplier Kanban System in a small or medium-sized company within the automotive industry.

Practical implications

This framework is designed to be self-sufficient such that the members of the organisation can use it without the help of external experts or consultants.

Social implications

Reduction in inventory stored in the warehouse, the amount of redundant work carried out by the employees and other non-monetary improvements which are difficult to monetise resulted in a much better work environment and happier employees.

Originality/value

The change in the paradigm of the manufacturing value chain affects the Tier 1 and 2 suppliers in Malaysia. The lines and value chains posing challenges to the suppliers have brought the idea of the Supplier Kanban System. The Supplier Kanban System adopted the action research cycles and continuous learning cycles, and this process was documented and developed as the Framework for the Implementation of a Supplier Kanban System.

Details

Benchmarking: An International Journal, vol. 30 no. 5
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 30 June 2022

Andrew Ebekozien, Mohamad Shaharudin Samsurijan, Clinton Aigbavboa and Nor Malina Malek

Studies have shown that managing household solid waste from low-cost housing in urban and sub-urban communities is challenging, especially in developing countries and COVID-19…

Abstract

Purpose

Studies have shown that managing household solid waste from low-cost housing in urban and sub-urban communities is challenging, especially in developing countries and COVID-19 era. Previous research proved that the fourth industrial revolution (4IR) technologies could be engaged to improve urban public services such as household solid waste. Thus, the study investigated 4IR role in improving low-cost housing solid waste management (LCHSWM) in the COVID-19 era across Malaysia's cities.

Design/methodology/approach

The researchers selected four Malaysian cities (Pulau Pinang, Kuala Lumpur, Kuching and Putrajaya) to achieve the study's objectives via a qualitative research design. The study engaged forty experts through semi-structured virtual interviews. A thematic approach was used to analyse the collected data.

Findings

Findings identified initial high implementation and maintenance costs, unwillingness to accept change, inadequate knowledge and skilled personnel to manage the operation, amongst others, as the perceived challenges facing 4IR technologies in managing low-cost housing solid waste across Malaysian cities in the COVID-19 era. Also, the study proffered measures to improve 4IR technologies usage.

Research limitations/implications

This paper is limited to the perceived contributory challenges and proffered measures to improve 4IR technologies usage in managing LCHSW across Malaysian cities in the COVID-19 era.

Practical implications

Proffered measures will stir policymakers and the political class (city councils) to start thinking of an all-inclusive approach to addressing the issue of LCHSW in the 21st century. As part of the practical implications, the possible outcome might enhance collaboration between the public and private sectors to better service delivery to mitigate environmental degradation.

Originality/value

As revealed in the review, there is a paucity of literature regarding digital technology's roles in mitigating LCHSW across Malaysian cities in the COVID-19 era.

Details

Management of Environmental Quality: An International Journal, vol. 34 no. 1
Type: Research Article
ISSN: 1477-7835

Keywords

Article
Publication date: 23 November 2020

Yong Hion Lim, Suddin Lada, Rahat Ullah and Azaze-Azizi Abdul Adis

This study aims to identify the intention to purchase Halal food products amongst non-Muslim consumers in Malaysia, moderated by the acculturation effect.

2183

Abstract

Purpose

This study aims to identify the intention to purchase Halal food products amongst non-Muslim consumers in Malaysia, moderated by the acculturation effect.

Design/methodology/approach

A structured close-ended questionnaire was used to gather data through the random distribution of 397 non-Muslim consumers from the Alumni network of several private higher education institutions in Malaysia.

Findings

The collected data was analyzed through the structural equation modelling technique using partial least squares with SmartPLS 3.0. The result indicated that attitude, subjective norms and perceived behavioral control were positively influenced by the purchase decision of Halal food products amongst non-Muslim consumers in Malaysia. Apart from that, the acculturation effect moderates the relationship between attitude and intention to purchase.

Research limitations/implications

This finding will contribute to academics, Halal food makers and government in understanding the Halal food purchase intention amongst non-Muslim consumers in Malaysia.

Practical implications

The outcome of this study can be used as an input for Halal entrepreneurship in terms of marketing and operation strategy. On the government aspect, this study also provides an implication on national public policy and strategic economic planning in developing overall national Halal policy.

Social implications

The social harmonization amongst the multiple races in Malaysia is partially contributed through the acculturation effect. The acculturation effect has been reflected through the food choice decision amongst Malaysian, despite of different religious belief and home culture background.

Originality/value

Research in studying Halal food purchase intention amongst non-Muslim consumers are scarce. This research is able to reinforce the theory of planned behavior model in dealing with Halal food choice decisions, taking into consideration of acculturation effect.

Details

Journal of Islamic Marketing, vol. 13 no. 3
Type: Research Article
ISSN: 1759-0833

Keywords

1 – 6 of 6