ISSN: 1813-0534






Volume 2 No 1 July 2006


Dr. Sarminah Samad, Universiti Teknologi Mara, Malaysia


The main purpose of this study was to determine the perception of procedural and distributive justice played as an important role in intention to quit and organizational commitment among temporary employees. Response from 290 temporary employees of the selected electrical and electronic companies in Malaysia was obtained through self-administered questionnaire. The data obtained were analyzed using descriptive and inferential statistics. The results hypothesized that both procedural and distributive justice perceptions are related negatively to intention to quit and positively related to organizational commitment. The study also revealed that procedural and distributive justice made significant influence to intention to quit and organizational commitment. Among all the factors procedural justice appeared to be the most significant predictor for both intention to quit and organizational commitment. Based on findings, implications for managerial practice and future research are discussed.

The Long Run Fisher Effect in Malaysian: An ARDL Bounds Test

Hawati Janor
Noreha Halid
Muhammad Zain Yusof
School of Business Management, Faculty of Economics and Business, University Kebangsaan Malaysia, 43600 UKM, Bangi, Selangor, Malaysia


This paper investigates the validity of the long-run Fisher effect for Malaysia. In doing so, we employ the Autoregressive Distributed Lags (ARDL) bound test to overcome stationarity issues that may be encountered in the previous techniques that required the non-stationarity of the time series involved. The ARDL is capable of testing for the existence of a long-run relationship regardless of whether the underlying time series are individually I(1) or I(0). We also investigate the sensitivity of the effect to the existence of structural breaks in interest rate. Then we examine the inflation and nominal interest rate relationship under different exchange rate regime. The ARDL test demonstrates that in all cases, there is no long run relationship between nominal interest rates and inflation rate. Thus we find the evidence that does not support the Fisher effect.


Industrial Relations and Trade Dispute Settlement By Balakrishnan A/L Muniapan

Lecturer in Human Resource Management, School of Business Curtin University of Technology, Sarawak, MALAYSIA
Email: or


In industrial relations, disputes between employer and employee or organizational members are bound to arise from time to time. The main reason for the dispute is the differences in opinion between the organizational members, which result from perception, personality, values, attitudes and motivational differences. Creation of a harmonious employer-employee relationship is therefore essential in dispute settlement, which involves both parties (employer and employees). In the industrial relations, if the relationship is not harmonious, the reason may be found either with the employer or with the employee or with both, and once an unhappy situation has developed, the blame could be apportioned to both parties. Industrial relations and employee relations are eventually human relations; therefore the basis of human psychology prevails in the industrial relations as well. The achievement of organization goals is based on the cooperation between both employer and employee and this cooperation is also the key to the creation of harmonious industrial relations. This paper explores the dispute settlement machinery in the context of Malaysia, from the analysis of the Industrial Relation Act 1967. In this paper the author also provides the recommendations to create a harmonious industrial relations, among which includes participative management, effective grievance handling machinery, and other effective human resource strategies.



Consumer Decision Making of Cause Marketing: the Role of Donation Behavior in Purchase Intention

Dong-Jenn Yang, I-Shou University, Taiwan
Jay M. Wu, I-Shou University and Chang Jung Christian University, Taiwan
Shan-Dian Lee, I-Shou University, Taiwan


Cause marketing has increasingly emphasized the collaboration relationship between for-profit firms and nonprofit organization (NPO) in receiving benefits from each other. The important issue of cause marketing is how to increase public donations and change attitude and behavior in favor of the advocated cause. The one of the most basic objective of for-profit firms is to increase the sales of their product/service offerings. Little empirical research is based on studies conducted in cause marketing. We examined from 134 students. We then subjected these to three situations of donation behaviors in four different conditions. Results of our analysis find the donation behavior effect purchase intention. Results also suggested that the strategy of for-profit firms should fit with the mission of NPO.
Key words: cause related marketing; donation behavior, Purchase intention



Does Manufacturer’s Reputation Matter to Brand Equity?

Norjaya Mohd. Yasin, Universiti Kebangsaan Malaysia


This study examines the effects of manufacturer’s reputation on the formation of brand equity. A conceptual framework in which manufacturer’s reputation is postulated to influence the dimensions of brand equity, which in turn, influences brand equity. Data were collected from consumers of household electrical appliances using probability sampling. From the results, it is found that manufacturer’s reputation positively and significantly influences dimensions of brand equity comprising brand distinctiveness, brand loyalty, and brand awareness/associations. The results also show that manufacturer’s reputation influences brand equity through partial mediating effects of brand distinctiveness, brand loyalty and brand awareness/associations.

Fuzzy Underwriting Systematic Risk of Insurance : Some Evidence from Taiwan

Li-Hua Lai, Department of Risk Management and Insurance
National Kaohsiung First University of Science and Technology Kaohsiung, Taiwan


The purpose of this paper is to construct and evaluate the fuzzy underwriting systematic risk made by major lines in Taiwan¢s P/L insurance company, including the insurances of fire, automobile damage, marine cargo and aviation are the symmetric or asymmetric triangular fuzzy numbers. The data was used to study fuzzy underwriting systematic risk modes of the insurance company investigated, and we determinate the lower and upper limits of the fuzzy underwriting systematic risk associated to the various alpha-level of the fuzzy numbers. Our results show that the best-fitting parameters of the model from our data are the asymmetric triangular fuzzy numbers. The skew factors and ranking with risk attitudes of the evaluator to the underwriting risk in each line are determined, which could be used to perform the forecasting of the underwriting systematic risk. These results may be found in other countries.


Rubaya binti Yakob,Hendon Redzuan &Mohamad Abdul Hamid
Universiti Kebangsaan Malaysia,Malaysia


Several econometric factors have been hypothesized to influence the demand for life insurance products. This study examined the relationship of seven variables to the life insurance demand in Malaysia. The variables were domestic gross product, per capita income, current interest rate, short term interest rate, inflation rate and personal savings rate. The paper also studied the effect of income tax exemption on the demand for life insurance. The data analyzed were collected for the period 1970 through 1997. The results of the stepwise regression analysis showed that four of the variables tested had some influence the demand of life insurance in Malaysia, namely the gross domestic product, the short term interest rate, the personal savings rate and the income tax exemption.


Norzalita Abd Aziz
Universiti Kebangsaan Malaysia


Customer satisfaction and service quality remain critical issues in service industries and it is consider important and critical for financial service organizations because most of them render undifferentiated product service from each other. This study focusing on credence qualities that refers to those qualities of a product service that cannot be evaluated accurately and efficiently even though the services have been used extensively. Insurance service is representing the credence of service qualities and multiple regression analysis was used to test the hypotheses. The results showed that the highest mean value of service quality attributes rated by respondents is employees should know what are the customers’ needs which is under the empathy followed by physical facilities of insurance service company should visually appealing which is categorized in tangible dimension. Only empathy is found to have a significant and positive influence on customer satisfaction and future intention to use/purchase at a significant level of p<0.05. Meanwhile, empathy and tangibles found to have a significant and positive relationship with future intention to use/purchase at a significant level of p<0.01. It is, however, suggested that further research is needed to improve the generalisability of the findings.

Maximizing return on investment (ROI) in a global market: Chief Knowledge Officer (CKO) adding value by connecting people, technology, and processes.

M. M. M. Nadeem, Program Lead: E-Business,N. Department of Management, Marketing, and E-Business, School of Business & Management, National University, 3031 Tisch Way, 100 Plaza East, San Jose, California, 95128.


The objective of this study is to provide organizations with a pragmatic understanding of how the role and position of Chief Knowledge Officer (CKO) is connecting people, technology & processes in a competitive environment to achieve maximum return on investment (ROI) ahead of the competition in a global market. The main research question addressed by this study is whether the role and position of a CKO has an effect on the outcome of the return on investments, and specifically whether the CKO affects the process of organizational structure. Various issues are considered including, what the concept of knowledge management (KM) entails in a growing knowledge economy, and what the KM trends are in the global market? An in-depth review of theory, research, and practice is undertaken to understand the current organizational structure with the CKO’s developing role and position. The study also explains how the strategic gaps between technology, and knowledge processes, could be connected in strengthening the organizational business model. Five years of KM research, case studies and surveys, and interviews of KM leadership from corporations are used to provide real world understanding of the value add of the CKO’s to the organization’s bottom-line. The study also considers the effect the changing competitive environment has which includes an investigation of the reasons why the global market can and should support a CKO in the organizational structure. Specifically, this study considers the skills and competencies of CKO as a leader and manager in the 21st century. This study investigates whether the current global market offers sufficient accommodation to the CKO role and position. Lastly, this study investigates how information technology applications and KM systems and strategies can support the CKO strategic role and position in strengthening both the tangible and intangible benefits of KM to the organization.

Keywords: Chief Knowledge Officer, Return on Investment, Knowledge Management System, Customer Intimacy, Product Leadership, Operational Excellence, and Business Intelligence.

A Study of Network Multimedia on Service Marketing

Dr. Wei-Chih Chen, Department of Journalism, Hsuan Chuang University, Taiwan


With the advancements in computer and telecommunication technologies, the penetration of network multimedia into households to affect everyone’s life is forthcoming. However, the actual outcome of the digitalisation of electronic media is often the development and provision of a whole range of multiple services after the model has changed to network multimedia. This includes simple data transmission and the provision of information prior to the trading of concrete merchandise, as well as the delivery of the actual service after the transaction. If the above transaction is generalised as electronic business, its many related concepts and strategies of service marketing will be very helpful to the business owners of network multimedia in developing and grasping the potential market.

Keywords: Network Multimedia, Service Marketing

Managing Expectations and Perceptions of Service Quality of Local and International Students in an Offshore Branch Campus of an Australian University

Tek-Yew Lew and Su-Ting Yong , School of Business, Curtin University of Technology, Sarawak Malaysia, 98009 Miri, Sarawak, Malaysia


Positive perception of service quality has been found in many studies to be significantly correlated to favorable outcomes such as willingness to recommend the university to others. Besides, service quality is also an increasingly important tool for differentiating the services of universities in a competitive higher education industry. Hence, this study attempts to measure the expectations and perceptions of service quality among local and international students pursuing various courses at an offshore branch of an Australian university in Malaysia. This survey found significant difference between students’ expectations of the service that an excellent Australian tertiary institute should provide and the perception of services being provided for all service quality dimensions at the institution. The service gap for the empathy dimension was significantly higher for the international students compared to the Malaysian students. This study has shown that there is room for improvement in the services offered to the students, especially the international students. The perception of the international students of the service quality offered at the University is significantly lower compared to the Malaysian students.

Keyword: service quality, expectations, perceptions


Mohd Abdullah Jusoh, Universiti Pendidikan Sultan Idris, Malaysia
Hazianti Abdul Halim, Universiti Pendidikan Sultan Idris, Malaysia


Realizing the involvement of small and medium-sized enterprises (SMEs) in the economic development, Malaysia has introduced a special Flagship Application that acts as a mechanism to realize the benefits of SMEs to the nation. The emergence of technological innovations has opened up to new opportunities and challenges to a nation’s economic development. The knowledge regarding the background of Technopreneur Development Flagship Application could bring positive returns to the public at large especially SMEs. The importance of SMEs in contributing to the growth of the economy and the importance of information and communication technology (ICT) adoption has led to the introduction of the new Flagship Application as it aims at accelerating the development of these SMEs to become globally competitive companies.


Quality or context? The management of interpersonal relationships in Korea and the US

Douglas M. Sanford, Jr., Towson University
Lynda Maddox, The George Washington University


This article investigates the extent to which firms can use similar business practices worldwide. Specifically, we measure differences in the perceived importance of social interpersonal relationships, or the context of shared values between executives, and professional interpersonal relationships, or the quality of direct interaction between executives. We focus on the role of interpersonal relationships in advertising agency-client relations in Korea and the US. Analysis of survey data from senior advertising executives suggests that cultural differences will significantly limit global strategies. We discuss the role of culture and imitation in determining business practice.

We investigate the extent to which managers perceive international differences in the management of interorganizational relationships. We address an interesting set of research results that show similarities in business culture between the US and Korea (Ha, Karande & Singhapakdi, 2004; Moon & Franke, 2000). We develop and apply a methodology for independently investigating the importance of social interpersonal relations, or the extent to which managers perceive that social context is important to the interorganizational relationship, and professional interpersonal relations, or the extent to which managers perceive that the quality of the interaction between executives is important. We use this methodology to test whether social interpersonal relations and professional interpersonal relations are similar between the US and Korea. Our research focuses on advertising agency/ client relationships.

Managing client relations is of central importance for service industries and advertising agencies (Buchanan & Michell, 1991; Gemunden & Walter, 1997). Interpersonal relationships between agency senior managers and client managers have been found to have direct and indirect impact on account longevity and perceived success of advertising agency performance (Baker, Ko & Yoon, 1994).

Multinational enterprises (MNEs) are challenged by simultaneously managing operations in different locations. Coordination of operations between distant national subsidiaries aims to achieve global scale efficiency while conforming to distinct host country demands (Bartlett & Ghoshal, 1989). Efficiencies are maximized if home-country business practices can be used in host countries.


Kuo-Wei Lin1, Che-Chung Wang2, Yueh-Jyun Lee3, Yi-Siou Liu4
1,4Department of International Business, Hsuan Chuang University
2Department/Institute of Industrial Design, Shin Chien University
3Department of Information Management, Ching Yun University


 The TOPSIS model which was deveploed by Hwang has been extensively used iin varidous academic areas.The most important trait of this model is that its underlying principle is fairly simple,reasonable and easily understandable.This explains why the theory has recently been widely used in the decision-making analysis of Management by Multiple Objectives.This research aims at applyong the TOPSIS Model to establish,under the blind condition,a fair and objective competitiveness evaluation model to compare the competitiveness of the petrochemical industries in Taiwan and Mainland China.

KEYWORDS:Enterprise Competitiveness,TOPSIS Model,Operational Performance,Multiple Criteria Evaluation Model,Rational Investment.

Social Capital, Absorptive Capacity and the Learning of Local Firms

Po-Wei Pan
Assistant Professor,Department of Marketing and Distribution Management,Hsuan Chuang University


Knowledge-based theory of firm regards knowledge as the most important resource of organizations, and believes that distinctive knowledge is the key factor for the firm to gain a competitive advantage. But few organizations internally generate all the knowledge required for continuous development. Firms must, therefore, often turn to external sources. Since the Reform and Opening, many MNCs have come into China, and this has become one of the important external sources of knowledge for local firms. Our paper suggests that through long-term interaction with MNCs, there will be two main determinants that have a great impact on the learning effectiveness of local firms: social capital and absorptive capacity. Social capital refers to the ability of local firms to access the knowledge owned by MNCs, and absorptive capacity refers to their ability to internalize the knowledge. Based on the analysis of some relative concepts, we propose a research model to investigate the learning of local firms. Additionally, in accordance with this model, we advance several propositions and deductions which could be examined by further studies.

Key words: social capital; absorptive capacity; learning of local firms

Securing Customer Loyalty through Customer Satisfaction of Service Quality in the Malaysian Hotel Industry

Mahadzirah Mohamad, Associate Professor, Kolej Universiti Sains dan Teknologi Malaysia, Mengabang Telipot, 21030 Kuala Terengganu, Malaysia
Abdul Manan Ali, Lecturer, Kolej Universiti Sains dan Teknologi Malaysia, Mengabang Telipot, 21030 Kuala Terengganu, Malaysia
Pham Thi Ho Ly, Graduate Student, Kolej Universiti Sains dan Teknologi Malaysia, Mengabang Telipot, 21030 Kuala Terengganu, Malaysia
Tengku Nordin Tengku Salim, Associate Professor, University Darul Iman Malaysia, KUSZA Campus, Gong Badak 21300, Kuala Terengganu, Malaysia.


Securing and retaining loyal customer through customer satisfaction becomes the major focus of most hoteliers as the industry is becoming highly competitive. Efforts were undertaken to differentiate one offering from others through delivering services as expected by hotel guests. This research attempts to uncover the relationship between Service Quality and Customer Satisfaction. In addition, the study also examines the effect of service quality and customer satisfaction on customer loyalty. Self-administered questionnaires were distributed to respondents who were selected amongst international tourists departing from Kuala Lumpur International Airport using convenience-sampling method. The findings of the study indicate that securing customer’s satisfaction through delivering high quality services is important to retain loyal customers.

CONSUMER ADOPTION PROCESS: A Study Of Young Age Working Executives In Jaipur City With Special Reference To Adoption Of Microwave Ovens

Assoc. Prof. Dr. Avinash Kapoor (Dean – Director, Jagan Institute of Management Studies, Jaipur – JIMS).
Dr. Chinmaya Kulshrestha [Assistant Prof. Management Development Institute (MDI), Gurgaon],


The microwave oven is an appliance which is easy to use, comprehensible, quick, and safe and is slowly entering in the homes of a majority of consumers today. What was once a luxury is fast being considered a necessity due to its several advantages. The speed of cooking, convenience in use, and cooler cooking are the most important characteristics that attract consumers to microwave ovens.
The nuclear family pattern both husband & wife working have overcome their apprehensions about the microwave oven and have adopted it as a part of their lifestyle. However, there is no empirical research in this area to document and affirm the changing consumer behavior patterns with regard to microwave usage pattern. Further, there is no research indicating the role of the microwave oven in the cooking patterns of households and their lifestyle in general.

Measuring Service Quality of the Leisure Winery Industry in Taiwan: A Case Study of Dahu Village Chateau

Dr. Jean Ling Lee, Nanya Institute of Technology, Taiwan


Subsequently to participating in the WTO, the Taiwan Government was permitted to establish private Wineries in its’ territories. As a plan of action, the Taiwan Government began persistently to encourage its’ farmers to obtain wine-manufacturing license, which would permit them to produce and sell wine. Hence, to assist Taiwan’s domestic agriculture to transit aggressively into an exquisite agriculture. In the recent years, the Taiwanese farmers have been looking for ways to transform their agriculture businesses into money making and to find new relevance in a market, which was altered by Taiwan’s entry in the World Trade Organization. In the present day, Taiwan’s Leisure Winery Industry has gradually reputed under the government’s aggressive promotion. However, when comparing Taiwan’s Leisure Winery Industry to other well-developed countries with matured Tourism and Leisure Winery Industries, we still have much room for vast improvements.

In spite of the vast growth and potent potential of the Winery tourism in Taiwan, presently there is only a modicum of published researches, not to mention that there are no related service quality expectations topics. Thus, the goals of this research are to uncover the diverse levels of tourists’ satisfaction on the service quality that was provided in the selected Winery. In addition, to reveal the focal attributes of the Winery which influence the tourists’ satisfaction, and investigate the discrepancy between customer’s expectation and perception towards the quality of services. This study was using the SERVQUAL instrument in measuring the service quality of Leisure Winery Industry in Taiwan. The results indicate that the reliability dimension of tourists’ perceptions of service quality having the largest gap and the tangibles dimension have the smallest gap. This implies that the tourists place more emphasis on the professional and courteous attitude from the staff of the Winery compared to the tangible visually appealing materials.

Keywords: Leisure Winery, Service Quality, Dahu Village Chateau, Taiwan


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ISSN: 1813-0534