Evelyn S. Devadason, V.G.R. Chandran Govindaraju and Shujaat Mubarik
The purpose of this paper is to investigate the potentials and barriers to trade in the Malaysia–Chile partnership.
Abstract
Purpose
The purpose of this paper is to investigate the potentials and barriers to trade in the Malaysia–Chile partnership.
Design/methodology/approach
This paper estimates two-way export potentials from an augmented three-dimensional panel gravity model of bilateral trade between Malaysia and the Latin America and the Caribbean (LAC) region, spanning the 1990–2014 period. Utilizing interviews with government officials and industry experts in Malaysia and Chile, this paper also provides insights into market access issues.
Findings
The empirical findings of this study suggest that Malaysia has trade potential in Chile, but Chile is “overtrading” with Malaysia. By major products traded, both countries are found to be “overtrading,” as the export basket remains concentrated in this partnership. Through the interviews, fewer restrictions are reported by the various stakeholders, as the extent of trade engagement remains somewhat low. The main challenge identified within specific sectors in both the countries relates mainly to procedures established to secure compliance with labeling regulations for food products.
Research limitations/implications
The sectoral findings reveal that there is indeed scope for expanding exports beyond the current major products traded, particularly in base metal and scientific and measuring equipment from the Malaysia and Chile perspectives, respectively. Thus, product diversification matters to intensify trade cooperation between the two countries. Non-tariff measures need to be streamlined by both parties to ensure further product diversification to food trade, particularly for Chile.
Originality/value
The limited literature on cross-regional trade within the broader framework of Southeast Asia and LAC only support the fact that potentials do exist but do not appear to provide much research evidence. Empirically, this paper will add to the existing literature on the potentials that hold in the Malaysia–Chile partnership. Further, a lack of adequate information remains on market access and other barriers in both the nations to facilitate decisions on trade opportunities. The findings of the study fill that vacuum of information pertaining to market access and trade facilitation through interviews with various stakeholders in Malaysia and Chile.
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Veera Pandiyan Kaliani Sundram, Abdul Razak Ibrahim and V.G.R. Chandran Govindaraju
The purpose of this paper is to explore the effects of different dimensions of supply chain management practices (SCMP) on supply chain performance (SCP) in the electronics…
Abstract
Purpose
The purpose of this paper is to explore the effects of different dimensions of supply chain management practices (SCMP) on supply chain performance (SCP) in the electronics industry in Malaysia.
Design/methodology/approach
The study employed the quantitative method where convenience sampling and self‐administrated survey questionnaires were sent to 125 electronics firms in Malaysia. The research framework was tested using variance‐based structural equation model, the partial least squares (PLS) method.
Findings
The empirical results of PLS indicate that six of the seven dimensions of SCMP have a significant positive effect on SCP. Furthermore, agreed vision and goals shows a greater influence than other dimensions of SCMP.
Research limitations/implications
This study took a narrow focus solely on the electronics manufacturing industry with a relatively small sample size of respondents. Also the data were only collected from single respondents in an organization. However, being the first study to explore the dimensions of SCMP and how those dimensions relate to SCP, the study shapes the pathway for future research.
Practical implications
The results offer insights to SCM practitioners and policy makers on the importance of SCMP to increase the competitiveness of manufacturing industry in terms of SCP.
Originality/value
This study employs a newly developed framework based on existing theoretical arguments to empirically examine the relationship between two important factors, the SCMP and SCP. This study is perhaps one of the first to address the effect of SCMP that includes combination of comprehensive practices and system approach towards the overall performance of the supply chain.
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Muhammad Shujaat Mubarik, Evelyn S. Devadason and Chandran Govindaraju
This study examines the influence of human capital, overall and by dimensions, on the export performance of small and medium enterprises (SMEs) in the manufacturing sector of…
Abstract
Purpose
This study examines the influence of human capital, overall and by dimensions, on the export performance of small and medium enterprises (SMEs) in the manufacturing sector of Pakistan. The study also investigates the role of absorptive capacity in the relationship between human capital dimensions and export performance.
Design/methodology/approach
Data from 586 manufacturing sector SMEs were collected for analysis. The study applied covariance-based structural equation modeling (SEM) to estimate the hypothesized relationships.
Findings
As a whole, human capital was found to exert a direct and indirect impact on export performance, particularly for the medium-sized firms and for firms with medium to high levels of export intensities. Nevertheless, not all dimensions of human capital mattered for export performance. Education and training were found to pose the greatest influence on export performance of those firms.
Research limitations/implications
The results suggest that when devising appropriate policies for SMEs, the impact of different dimensions of human capital need to be considered for addressing challenges related to the internationalization of firms. In short, developing the right human capital is essential for SMEs to compete at the international level.
Originality/value
Unlike previous studies, this study decomposed the influence of different dimensions of human capital on export performance and assessed the mediating role of absorptive capacity. The study is also among the pioneering studies in SMEs sector of Pakistan to analyze the role of absorptive capacity in the relationship between various dimensions of human capital and export performance.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-03-2019-0198
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Masoud Mohammed Albiman, Najat Nassor Suleiman and Hamad Omar Baka
The purpose of this study is to investigate the dynamic relationship that exists between energy consumption, environmental pollution and per capita economic growth in Tanzania…
Abstract
Purpose
The purpose of this study is to investigate the dynamic relationship that exists between energy consumption, environmental pollution and per capita economic growth in Tanzania. The energy consumption is represented by electricity usage in kilowatt hours (kWh) per capita, while environmental pollution is represented by carbon emission per metric tons and economic growth by gross domestic product (GDP) per capita.
Design/methodology/approach
This investigation is made based on the Environmental Kuznets Curve using time series annual data from 1975 to 2013 by applying the more robust causality technique of Toda and Yamamoto non-Causality test (1995), Impulse response and Variance Decomposition, Augumented and Dickey–Fueller test and Philips and Perron Test of unit root tests.
Findings
Economic growth rate (LGDP) and energy consumption per capita (LENGY), both being unidirectional, cause environmental pollution through carbon emission (LCO2) in Tanzania. Interestingly, after using impulse response, a significant and positive economic growth (GDP per capita) was found due to shocks from electricity per capita (energy consumption) and carbon emission (LCO2) with time. The Variance Decomposition suggested that the percentage of the variations due to shocks or innovations of economic growth (LGDP) and energy consumption (LENGY) to carbon emission is very high and significant, accounting to 46 and 41 per cent, respectively, in 10 years to come.
Research limitations/implications
The study recommends that, in the future, the relationship be examined using super-exogeneity causality tests that takes into consideration the changes in policy or regime in contrast to Toda and Yamamoto. Furthermore, the addition of other variables such as fixed capital formation and labor force, which were not considered in this study, may result in strong correlation.
Practical implications
The results imply that the government of Tanzania can adopt environment conservation and energy saving policies without affecting its economic growth. As a matter of fact, to put a stop to persistent environmental pollution in Tanzania, the energy saving policy should be put in place rather quickly. It is imperative that the government implements policies and strategies that ensure continuous economic growth without forsaking the environment.
Originality/value
Despite the increase in carbon emissions, energy consumption and economic growth in Tanzania since 2000, to date, no previous work has been done to investigate their multivariate relationship. This is the first study that uses the Toda and Yamamoto non-Causality test, Impulse Response and Variance Decomposition Analysis to investigate a trivariate relationship of the variables mentioned above.
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Muhammad Shujaat Mubarik, Chandran Govindaraju and Evelyn S. Devadason
Pakistan adopted “one-size-fits-all” policy for human capital (HC) development with the assumption that the level of HC is equal across industry and firm size. The purpose of this…
Abstract
Purpose
Pakistan adopted “one-size-fits-all” policy for human capital (HC) development with the assumption that the level of HC is equal across industry and firm size. The purpose of this paper is to test this major assumption on which this policy is based, by comparing the differences in the levels of HC, overall and by dimensions of HC, by industry and firm size.
Design/methodology/approach
The study is based on new data set of a sample of 750 manufacturing SME firms in Pakistan, compiled through a survey. Applying the independent sample t-test, one way analysis of variance and multivariate analysis of variance, the hypotheses of differences in levels of overall and dimensions of HC were tested.
Findings
The results indicate significant differences in the levels of HC by industry and firm size. The levels of HC were found to be higher in textiles, food, metal and leather industries, and for medium-sized firms.
Practical implications
The findings provide supporting evidence on the inadequacy of the current human capital development (HCD) policy in Pakistan. The study therefore recommends customized HCD policies, accounting for differences across industry and firm size.
Originality/value
By taking the data on nine major dimensions of HC from 750 manufacturing sector SMEs, the study tests the level of overall HC and its nine dimensions by industry and size. The study also challenges the “one-size-fits-all” policy of the government of Pakistan for developing HC in SMEs.
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The purpose of this paper is to examine the role of governments in resolving collective action dilemmas arising in R&D collaboration between university-research institutes (URI…
Abstract
Purpose
The purpose of this paper is to examine the role of governments in resolving collective action dilemmas arising in R&D collaboration between university-research institutes (URI) and small and medium-size enterprises (SMEs). The paper focusses on R&D collaboration in South Korea in light of its major industrial reforms since the 1980s in strengthening the national science and technology innovation system.
Design/methodology/approach
To examine factors explaining the likelihood of SMEs to collaborate with URIs in R&D activities, the authors used data that were collected in the Seoul Metropolitan Area by the Seoul Institute in 2010. A logistic regression analysis was performed with data from the Open Innovation System survey, which consists of 336 SMEs; and supplemented by firm-level data retrieved from the government official statistics on structural characteristics of SMEs. The Mann-Whitney Test of Difference was employed to test the perceived importance of R&D activities in various stages of product development.
Findings
This research found that SMEs having government certified R&D facilities and higher investments in R&D activities explain their likelihood in engaging in R&D collaboration with URIs. SMEs in the chemical sector also are more likely to establish R&D collaboration with URIs compared to those in the information technology (IT) sector. In terms of the importance of R&D activities, there are marked differences between SMEs collaborating with URIs and those that do not. The differences are found in R&D’s needs related to acquisition of information, basic research, pilot testing of products, and product manufacturing. Most SMEs in the sample reported several barriers to R&D activities, particularly in securing human resources and the operation of R&D; and that, they believe the government can assist them in research and development activities and human resource training.
Research limitations/implications
This study provides new insights into the way in which R&D facilities of SMEs may facilitate R&D collaboration with URIs. The results broaden the understanding on the scope of R&D collaboration adopted by SMEs and strategies that can be adopted and implemented by government agencies to attract and retain firms that are innovative. While the findings also provide insights on the scope of management decisions adopted by SMEs, the sample was limited to 336 SMEs in the Seoul Metropolitan area, making generalization to other regions of the country limited.
Originality/value
From the institutional collective action framework, this research provides a critical lens to build R&D collaboration between the URI and SMEs, highlighting the role of government with considerable efforts to facilitate SMEs to enter into arrangements with URIs by focussing on the importance of R&D facility and stages of product development.
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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.
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.
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Pouria Khosravi, Cameron Newton, Azadeh Rezvani, Reza Ghanbarzadeh and Morteza Akbari
Management innovation is one of the most vital practices underpinning economic growth and is considered to be one of the fundamental components of gaining a superior business…
Abstract
Purpose
Management innovation is one of the most vital practices underpinning economic growth and is considered to be one of the fundamental components of gaining a superior business position in market conditions that are continually fluctuating. Drawing upon neo-institutional theory as well as absorptive capacity, the current empirical study unpacks the relationships between external institutional forces (i.e. regulative, mimetic and normative pressures) and management innovation through investigating the role of absorptive capacity as a mediator.
Design/methodology/approach
The research model is tested using survey data from Australian organisations. The study used Partial Least Squares (PLS), a component-based structural equation modelling (SEM) method, in order to perform the data analysis.
Findings
The results confirm that the various dimensions of institutional forces have diverse influences on management innovation. The authors found mimetic and normative pressures have positive influences on realised and potential absorptive capacity of an organisation. In addition, realised absorptive capacity mediates the relations between institutional forces and management innovation.
Originality/value
Dissimilar to preceding studies, this research shows that organisations not only innovate to pursue higher performance but sometimes strive for legitimacy. In addition, the significant associations between absorptive capacity and management innovation and the mediation role clearly signify that institutional forces and absorptive capacity play significant roles in the adoption of management innovation.
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Samer Al-Shami and Nurulizwa Rashid
Environmental pollution has emerged as a major concern in the 21st century following the introduction of sustainable development (SD) by the year 2030, whereby one of the…
Abstract
Purpose
Environmental pollution has emerged as a major concern in the 21st century following the introduction of sustainable development (SD) by the year 2030, whereby one of the predominant goals is related to the manufacturing industry. In Malaysia, the automotive industry is acknowledged as the backbone driving for economic growth and recognised as a source of environmental deterioration. Therefore, eco-innovation is, thus, introduced as one of the efforts for minimised environmental effects, reduced social impact and firm value sustenance. In particular, eco-product innovation is one of the renowned environmental innovation dimensions and displays high adoption and diffusion rates in developed countries due to green awareness and government financial assistance. However, developing countries such as Malaysia show relatively low adoption of such practices amongst companies, whereby most of the efforts are driven by the governments, supplier and customer demands. Therefore, this paper aims to delineate the factors of voluntary initiatives undertaken by the Malaysian automotive and auto parts industry towards eco-product innovation.
Design/methodology/approach
The research drew from the micro-level perspective, thus using dynamic capabilities (DC) constructs and environmental management system (EMS) strategy variables. The constructs included technology collaboration, green human resources and eco-culture, while the variables denoted formal EMS and top management support. Survey data were obtained from 242 entities within the Malaysian automotive and auto parts industry, which were subjected to analysis via confirmatory factor analysis and structural equation modelling.
Findings
The findings revealed the moderating role played by eco-product innovation for the association linking EMS strategy and sustainability development, while no moderator effects were observed between DC and sustainability development. Thus, future research can be performed in the meso and macro-level areas by using qualitative research across different sectors.
Originality/value
This paper explicates novel literature content, particularly for the field of eco-product innovation; it positions an empirical analysis from the micro-level perspective regarding the antecedence of DC and environmental strategy towards eco-product innovation and SD, mainly in the automotive industry.
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Veera Pandiyan Kaliani Sundram, Atikah Shamsul Bahrin, Zarina Binti Abdul Munir and Ali Hussein Zolait
The purpose of this paper is to explain the relationship between supply chain information management, supply chain information system (IS) infrastructure, supply chain integration…
Abstract
Purpose
The purpose of this paper is to explain the relationship between supply chain information management, supply chain information system (IS) infrastructure, supply chain integration and the manufacturing performance of firms in manufacturing industry in Malaysia. Therefore, the study addresses a gap in research concerning the effect of supply chain information practices toward manufacturing performance.
Design/methodology/approach
The research design for this study employed the quantitative method using survey questionnaires that have been developed based on a thorough and detailed analysis of the relevant literature. Based on a sample consist of 248 usable data, mediated multiple regression analysis was used to examine the research model.
Findings
The findings indicate that supply chain integration fully mediates the relationship between supply chain information management and supply chain information system infrastructure (ISI) toward manufacturing performance.
Research limitations/implications
This research is limited to a particular sample: i.e. electrical and electronics manufacturing firms in Peninsular Malaysia. Thus, the results need to be generalized to encompass wider samples.
Practical implications
Organizations interest in making all members in their supply chain to communicate using information network to support managers in better decision making while adopting more enhanced information management and system infrastructure. As a plus, it helps in integrating various internal and external value chain processes across manufacturing firms in the organization’s supply chain network. As result, manufacturing firms could improve their performance in the long run.
Originality/value
The originality of this study lies in employing a newly developed framework-based existing theoretical argument to examine the effectiveness of supply chain information management and system infrastructure with an improved influence from supply chain integration toward the manufacturing performance.