. This work is subject to …… Therefore, a suitable selection ofby the top management is …Mohd Amli Abdullah Wan Kalthom Yahya Nazirah Ramli Siti Rosiah Mohamed Badli Esham Ahmad Editors[]Regional Conference on Science, Technology and Social Sciences (RCSTSS 2014) Business and Social Sciences

[]Regional Conference on Science, Technology and Social Sciences (RCSTSS 2014)

[][email protected]

[]Mohd Amli Abdullah Wan Kalthom Yahya Nazirah Ramli Siti Rosiah Mohamed Badli Esham Ahmad •

[]•

[]Editors

[]Regional Conference on Science, Technology and Social Sciences (RCSTSS 2014) Business and Social Sciences

[]123 [email protected]

[]Editors Mohd Amli Abdullah Universiti Teknologi MARA Pahang Bandar Pusat Jengka, Pahang Malaysia

[]Siti Rosiah Mohamed Universiti Teknologi MARA Pahang Bandar Pusat Jengka, Pahang Malaysia

[]Wan Kalthom Yahya Universiti Teknologi MARA Pahang Bandar Pusat Jengka, Pahang Malaysia

[]Badli Esham Ahmad Universiti Teknologi MARA Pahang Bandar Pusat Jengka, Pahang Malaysia

[]Nazirah Ramli Universiti Teknologi MARA Pahang Bandar Pusat Jengka, Pahang Malaysia

[]ISBN 978-981-10-1456-7 DOI 10.1007/978-981-10-1458-1

[]ISBN 978-981-10-1458-1

[](eBook)

[]Library of Congress Control Number: 2016940129 © Springer Science+Business Media Singapore 2016 This work is subject to copyright. All rights are reserved 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, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. Printed on acid-free paper This Springer imprint is published by Springer Nature The registered company is Springer Science+Business Media Singapore Pte Ltd.

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[]Preface

[]Regional Conference on Science, Technology and Social Sciences (RCSTSS 2014) is a biannual conference on science, technology and social sciences organized by Universiti Teknologi MARA Pahang. One of the aims of the conference is to provide a continuous effort to share invaluable insights on the important roles played by the various disciplines in science, technology and social sciences. It also serves as a platform to disseminate research findings as a catalyst to bring out positive innovations on the development of the region. The proceeding is a compilation of selected papers presented from the latest RCSTSS 2014, and the topics covered in the proceeding are accounting, art and design, business, communication, economic, education, finance, humanity, information management, marketing, music, religious, social sciences and tourism. The selected papers for the proceeding have undergone careful selection process by our editors to ensure that they meet the objectives of the conference and also represent the latest relevant findings from research conducted by academicians locally, regionally and globally. The proceeding would be a significant point of reference to academicians and students who want to pursue further research in their respective fields. For academicians, it would be a good source of information to conduct further research, whilst for students, it would be the latest point of reference on research conducted in fields of their interest. Knowledge which was formerly the bastion of the elite few is now accessible to all. The role of universities is no longer confined to that of ivory towers but more towards the facilitation and dissemination of knowledge. The proceedings hope to facilitate the creation of new knowledge through the exchange of ideas, strategies and innovations in the various technological and social sciences disciplines. Bandar Pusat Jengka, Pahang, Malaysia

[]Mohd Amli Abdullah Wan Kalthom Yahya Nazirah Ramli Siti Rosiah Mohamed Badli Esham Ahmad v

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[]Contents

[]Part I 1

[]2

[]3

[]4

[]5

[]Accounting

[]Students’ Cheating Behaviour in Higher Education System: Reconnoitring the Academic Integrity from the Accounting Students Perspectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nor Hawani Wan Abdul Rahman, Mohamad Ridhuan Mat Dangi, Sabariah Jamaluddin, Lily Mazlifa Mustafa and Yuzainizam Yusop Use of Amazacc Brain Teaser Card for Financial Accounting Classroom: Non-accounting Students . . . . . . . . . . . . . . . . . . . . . . Nurul Afzan Najid, Wan Mardyatul Miza Wan Tahir, Suria Fadhillah Md Pauzi, Nurhazrina Mat Rahim and Mohamad Ridhuan Mat Dangi Ethnic Board Diversity and Financial Performance: Evidence from Malaysian GLCs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mohd Fairuz Adnan, Nurshamimi Sabli, Mohd Zulfikri Abd Rashid, Azizi Hashim, Halil Paino and Azizah Abdullah The Impact of Educational Level of Board of Directors on Firms’ Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mohd Fairuz Adnan, Nurshamimi Sabli, Mohd Zulfikri Abd Rashid, Azizi Hashim, Halil Paino and Azizah Abdullah Computerised Accounting Information Systems and Firm Performance: The Mediating Role of Transparency. . . . . . . . . . . . Mohamad Azmi Nias Ahmad, Malcolm Smith, Zubaidah Ismail, Hadrian Djajadikerta and Mohd Saiyidi Mokhtar Mat Roni

[]3

[]19

[]27

[]37

[]49

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[]viii

[]Contents

[]Part II

[]Art and Design

[]6

[]Jihad: The Concept in Visual Art . . . . . . . . . . . . . . . . . . . . . . . . . W.M.D. Wan Samiati Andriana and Dzul Haimi Md Zain

[]7

[]Emotional Design for National Car: The Role of Emotion and Perception in Car Design and Its Effect on Purchase . . . . . . . Shahrel Nizar Baharom, Nur Hazwani Zolkifly and Wee Hoe Tan

[]71

[]Assessing the Denotation and Connotation in Traditional Motifs of the Murut Ethnic Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nadia Mahmud, Azman Zulkiply and Ruslan Abd Rahim

[]81

[]8

[]9

[]Malay Traditional Furniture: Form and Space . . . . . . . . . . . . . . . Mohamad Hanif Abdul Wahab, Mohd Zafrullah Mohd Taib, Abu Bakar Abd. Hamid and Nor Aniswati Awang Lah

[]63

[]89

[]10 The Application of Printmaking Medium in Producing Artwork Among Malaysian Visual Artist . . . . . . . . . . . . . . . . . . . 101 Rosiah Md Noor and Mohd Azhar Abd Manan 11 Variance of Mannerism of Undergraduates’ Individual Traits, Values, and Ethical Behaviour . . . . . . . . . . . . . . . . . . . . . . . . . . . 109 Mohd Fairuz Adnan, Mohamad Ridhuan Mat Dangi, Norulhuda Tajuddin and Mohd Zulfikri Abd Rashid Part III

[]Business

[]12 Perceived Service Quality of Small and Medium Enterprises (SMEs) on Banks’ Lending and Loan Service Quality in Malacca . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127 Hazlin Hasan, Mohammad Jais, Mohd Rizal Abd Razak, Sharifah Norhuda Syed Wahid, Roslilee Ab Halim and Arifi Riduan 13 The Determinants of Problem Solving Tools Adoption in SME in Manufacturing Sector in Malaysia . . . . . . . . . . . . . . . . 137 Rong Quan Low, Ahmad Suhaimi Baharudin and Seng Chee Lim 14 Assessing the Determinants of Foreign Direct Investment Inflow to Malaysia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147 Adibah Hussin, Muhammad Zahran Abd Rahman and Azniza Ahmad Zaini 15 Website Quality as a Determinant of E-government User Satisfaction Level. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157 Mas Anom Abdul Rashid, Mohd Noor Azman Othman and Mohd Zainuddin Othman

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[]ix

[]16 Fraudulent Short Messaging Services (SMS): Avoidance and Deterrence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169 Norulhuda Tajuddin, Mohamad Ridhuan Mat Dangi and Sharifah Zannierah Syed Marzuki 17 Contribution of Economic Sectors to Malaysian GDP . . . . . . . . . . 183 Ilyani Azer, Hamnah Che Hamzah, Siti Aishah Mohamad and Hasni Abdullah 18 To Serve or not to Serve? Student Leaders, Community Service, and Community Service Learning. . . . . . . . . . . . . . . . . . . . . . . . . 191 Musramaini Mustapha, Norzie Diana Baharum, Siti Aishah Mohamad, Nooradzlina Mohd Pauzi and Noor Raihani Binti Zainol 19 Assessing the Relationship Between Job Satisfaction and Organizational Commitment: Public and Private Perspective in Malaysia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203 Norlaili Harun, Mas’udah Asmui, Noorsuraya Mohd Mokhtar, Noor Dalila Musa and Mohd Rizal Razak 20 Exploring the Attributes of Pathological Smartphone Use (PSU) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215 Janiffa Saidon, Rosidah Musa, Mior Harris Mior Harun and Ainul Azreen Adam 21 The Preferences of the Muslim Consumers Between Takaful and Conventional Policy: A Study on Motor Insurance Consumers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225 Noor Emma Shamsuddin, Tang Howe Eng and Siti Farah Lajim 22 Role of Management and Employees in Customer Focused Organizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237 Syazwani Ya, Sarina Muhamad Noor and Noraini Nasirun 23 Young Adults’ Motivation to Patronize Independent Specialist Coffee Shops in Malaysia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249 Jaslyn Ng Jia Lin and Choy Tuck Yun 24 Consumer Preference Toward Super-Mini Cars in Malaysia: An Importance-Performance Analysis Approach . . . . . . . . . . . . . . 259 Lum Jia Meng and Choy Tuck Yun 25 Factors Affecting Satisfaction with Condensed Milk Amongst Teh-tarik Restaurateurs in West Malaysia . . . . . . . . . . . . . . . . . . . 269 Sri Sivabalan Danapalam and Choy Tuck Yun

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[]Contents

[]26 The Impact of Textile Centre Towards Textile Traders: A Case Study in Bandar Tun Abdul Razak, Pahang . . . . . . . . . . . 277 Faizan Abd Jabar, Sharifah Norhuda Syed Wahid, Noor Affeeda Ramli, Suhanom Mohd Zaki, Mohd Faizal Azrul Azwan Che Harun and Muhammad Zahran Abd Rahman 27 Exploring Islamic Brand Experience Through Focus Group: Case Study on Airlines Industry in Malaysia. . . . . . . . . . . . . . . . . 283 Rosidah Musa, Rafidah Othman and Mazzini Muda 28 The Level of Financial Awareness Among Undergraduate Students in UiTM Sarawak . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 291 Abang Feizal Abang Ibrahim, Ismariani Ismail, Adeline Engkamat and Philomena Suling Kawit 29 Sukuk and Conventional Bond Issuance . . . . . . . . . . . . . . . . . . . . 301 Wahida Ahmad 30 Graduate Employability: What Went Wrong?. . . . . . . . . . . . . . . . 309 Nur Hayati Abd Rahman, Hapiza Omar, Tismazammi Mustafa, Zuraini Jusoh and Noor Rafhati Romaiha 31 The Implementation of Organizational Green Culture in Higher Educational Institution . . . . . . . . . . . . . . . . . . . . . . . . . . . 321 Mas’udah Asmui, Noorsuraya Mohd Mokhtar, Noor Dalila Musa and Adibah Hussin Part IV

[]Communication

[]32 Islam in Malaysian News: The Case of Utusan Malaysia and Sinar Harian. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 333 Liana Mat Nayan, Siti Suriani Othman, Lee Kuok Tiung and Khairunnezam Mohd Noor Part V

[]Economics

[]33 The Effects of Gender-Separate Human Capital Composition on Technology Transfer and Absorptive Capacity . . . . . . . . . . . . . 343 Soo Cheng Chuah, Nor Azam Abdul Razak and Hussin Abdullah 34 The Factors that Motivate Undergraduates to Pursue Tertiary Education: Employability, Expectation, Learning or Enjoyment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 353 Noor Ismawati Mohd Jaafar

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[]Contents

[]Part VI

[]xi

[]Education

[]35 Determinant of Satisfaction in E-learning Usage: An Evidence in Malaysian Higher Institution . . . . . . . . . . . . . . . . . . . . . . . . . . 367 Fahmi Zaidi Bin Abdul Razak, Azlina Abu Bakar, Wan Salihin Wong Abdullah and Mohd Amli Abdullah 36 Heuristic Usability Evaluation of ‘Kids World’ Courseware. . . . . . 377 Zuraini Hanim Zaini and Hussein Bawazir 37 Students’ Awareness in Learning of New Vocabulary in Chinese Fantasy Novel Among Non-native Malay Learners of Chinese . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 385 Bok Check Meng and Goh Ying Soon 38 Fostering Unity and Improving Creativity—New Experiences in the Culturally Responsive Visual Art Education . . . . . . . . . . . . 395 Siti Zuraida Maaruf, Saedah Siraj and Voviana Zulkifli 39 Cloud-Based Mobile Learning Adaptation in Nonformal Learning: A Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 403 Mohd Norafizal Abd Aziz, Rafidah Md Noor and Norazlina Khamis 40 Reading and Writing Connection in ESP Context: Students’ Performance and Perceptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . 415 Rosita Aminullah and Jun Nirlawati Mohd Sahidol 41 Preferred Learning Modalities Among First-Year Medical Students at a Private Medical College in Malaysia. . . . . . . . . . . . . 425 Fazlin Zaini, Sandheep Sugathan, Siti Nadiah Md Sabri, Siti Syahida Abd Malek, Safura Najlaa Mat Salleh and Puteri Hafawati Faizan 42 Learning Preferences of Students Taking a Course in Integrated Course Study. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 433 Norlaila Abdullah 43 Parent Teacher Association (PTA) Responses to Changing Educational Policy: A Malaysian Experience . . . . . . . . . . . . . . . . . 449 Ahmad Zabidi Abdul Razak, Kazi Enamul Hoque, Simin Ghavifekr and Norazana Mohd Nor 44 Validating ESP Test Using Weir’s Socio-cognitive Framework for Validating Language Tests . . . . . . . . . . . . . . . . . . . . . . . . . . . 469 Fahima Mohamed Bannur, Saidatul Akmar Zainal Abidin and Asiah Haji Jamil

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[]xii

[]Contents

[]45 Self-monitoring Action Skill Acquisition System: An Integrated Approach to Teaching and Learning . . . . . . . . . . . . . . . . . . . . . . 483 Norlaila Abdullah, Roslan Abdul Wahab, Norlaila Mohd Din and Faizah Azam Ahmad Azam 46 Mathematics Outreach Program for Primary Schools . . . . . . . . . . 495 Zarith Sofiah Othman, Zulkifli Ab. Ghani Hilmi and Mariathy Karim 47 Competition-Based Learning: Determining the Strongest Skill that Can Be Achieved Among Higher Education Learners. . . . . . . 505 Safura Adeela Sukiman, Haslenda Yusop, Rashidah Mokhtar and Nur Huda Jaafar 48 Relationship of Teaching, Learning and Assessment Practices in Higher Education. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 517 Fook Yuen Chan, Gurnam Kaur Sidhu and Fong Lai Lee 49 The Perception on the Importance and Satisfaction of UKM Lecturers Towards E-Learning Utilisation . . . . . . . . . . . . 531 Rofizah Mohammad, Khalilah Jamaluddin, Nur Riza Mohd Suradi and Hazura Mohamed 50 Foregrounding Students’ Voices to Promote Reading Engagement Through Writing . . . . . . . . . . . . . . . . . . . . . . . . . . . 543 Puteri Rohani Megat Abdul Rahim and Norasyikin Abdul Malik 51 Exploring the Use of Social Networking Site in the Teaching of Reading: Blessing or Bane? . . . . . . . . . . . . . . . . . . . . . . . . . . . 555 Norasyikin Abdul Malik and Puteri Rohani Megat Abdul Rahim 52 Anxiety in Learning English as a Second Language (ESL) Among Tertiary Students . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 567 Gurnam Kaur Sidhu, Peck Choo Lim, Yuen Fook Chan, Lai Fong Lee, Fazyudi Ahmad Nadzri and Siti Hajar Aishah Mohd Azkah 53 Examining Contributory Factors and Barriers to Success in Academic Writing Among Undergraduates . . . . . . . . . . . . . . . . 579 Lai Fong Lee, Gurnam Kaur Sidhu, Yuen Fook Chan, Sian Hoon Teoh, Geethanjali Narayanan and Mohd Ismail Azizi Md Ishak 54 Public Perception on the Factors that Contribute to Juvenile Delinquency: A Case Study at Urban Transformation Centre (UTC) Melaka . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 591 Rosilawati Sultan Mohideen, Farah Adilla Ab. Rahman, Nurliyana Mohd Shazali, Zulika Zayid and Nur Faizatul Akma Fauzi

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[]Contents

[]xiii

[]55 An Early Insight on Teachers’ Perception Toward School-Based Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 601 Noor Rafhati Romaiha, Nurmuslimah Kamilah Abdullah, Nur Hazwani Mohamad Roseli, Nur Hayati Abd Rahman and Azhar Mat Jani 56 The Flipped Classroom: The Use of Factor Analysis in Determining the Factors of Acceptance . . . . . . . . . . . . . . . . . . . . . 611 Nor Fauziah Abu Bakar, Safura Adeela Sukiman, Haslenda Yusop, Rashidah Mokhtar and Nur Huda Jaafar 57 Instructional Leadership Practices and Student Engagement: Comparative Study Among Universiti Teknologi MARA Affiliated Colleges in the State of Pahang . . . . . . . . . . . . . . . . . . . 621 Arifi Ridzuan, Mohd Amli Abdullah and Hazlin Hasan 58 The Effect of Peer-Assisted Learning Strategies (PALS) on Preparatory Students in Mathematics . . . . . . . . . . . . . . . . . . . 633 Salimah Ahmad, Mariathy Karim, Fazillah Bosli, Nurhidayah Masni Abdullah, Aishah Mahat, Siti Rosiah Mohammed, Anisah Dasman and Nor Habibah Tarmuji 59 Students’ Perception Towards Malay Folklore Songs. . . . . . . . . . . 641 Normaliza Abd Rahim and Nik Ismail Harun Part VII

[]Finance

[]60 An Evaluation of Factors Influencing Small Medium Enterprises (SMEs) in Malaysia to Adopt E-commerce . . . . . . . . . 651 Seng Chee Lim, Ahmad Suhaimi Baharudin and Rong Quan Low 61 The Acceptance of Ar-Rahnu Scheme Among Rural Population . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 663 Mohamed Suhana, Rohana Sham, Haliza Hirza Jaffar, Ruziah A. Latif, Zaibedah Zaharum, Rabiatul Alawiyah Zainal Abidin, Norhasniza Mohd Hasan Abdullah, Zuraidah Ahmad, Mohd Ali Md Don, Sallaudin Hassan, Wan Munirah Wan Mohamad, Raja Zuraidah Raja Mohd Rasi and Nooririnah Omar 62 The Practice of Presentation of Financial Statements in Malaysian Annual Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . 675 Mohd Noor Azli Ali Khan and Nur Basyila Zakaria 63 The Practice of Internet Financial Reporting in Malaysia: Users’ Perceptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 687 Mohd Noor Azli Ali Khan

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[]Part VIII

[]Contents

[]Humanities

[]64 Images of Women in Selected Works by Asian Female Writers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 703 Noor Hidayah Mohamed Yunan and Nurul Farehah Mohamad Uri 65 Quality of Life of Dual-Career Commuter Couples: Emotional and Financial Stress of UiTM Pahang Staff and Their Spouse . . . . 713 Nor Habibah Tarmuji, Zulkifli Ab. Ghani Hilmi, Siti Noorul Ain Nor Azemi and Nurul Nadia Ab. Aziz 66 Breast Self-Examination Practices in Selected Urban Areas in Malaysia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 723 Nik Nairan Abdullah, Waqar Al-Kubaisy and Suzanna Daud 67 Motivating Reasons for Performing Physical Exercise in Relation to Socio-demographic Factors . . . . . . . . . . . . . . . . . . . . . 731 Waqar Al-Kubaisy, Mariam Mohamad, Zaliha Ismail, Nik Nairan Abdullah and Mazlin Mohamad Mokhtar 68 Parenting Styles, Family Functioning and Adolescents’ Mental Health: How Are They Related? . . . . . . . . . . . . . . . . . . . . 743 Jo Anne Saw 69 Managing Uncertainty in Multi-project Constructing for Environmental Issues on Project Completion Late Delivery . . . . . . 753 Zirawani Baharum, Mohd Salihin Ngadiman and Noorfa Haszlinna Mustafa 70 Comprehensiveness of Punishment for Baby Dumping: Definition, Severity and Coverage . . . . . . . . . . . . . . . . . . . . . . . . . 765 Mazbah Termizi, Nurhidayah Abdullah and Noor Ismawati Mohd Jaafar 71 Analysis on the Legal and Administrative Mechanisms in Curbing Syndicate and Runaway Marriages in Malaysia . . . . . . . . 775 Rafeah Saidon, Zaleha Kamarudin, Mahamad Arifin, Norliah Ibrahim, Mohamed Azam Mohamed Adil and Noorul Huda Sahari Part IX

[]Information Management

[]72 Short Message Service (SMS) Usage Among People with Visual Impaired: An Empirical Study . . . . . . . . . . . . . . . . . . . . . . 789 Mohd Aidil Riduan Awang Kader, Suhana Mohezar Ali, Roslina Ali, Nor Khairunnisa Mat Yunus and Shamsul Nizam Mohamed Badri

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[]Contents

[]xv

[]73 Adapting the Extreme Programming Approach in Developing E-corrective and Preventive Actions: An Experience . . . . . . . . . . . 801 Nur Huda Jaafar, Mazlyda Abd Rahman and Rashidah Mokhtar 74 Illustrating the Development of Quality Management Instrumentation: A Systematic Literature Review . . . . . . . . . . . . . 811 Amal Hayati Ishak, Muhamad Rahimi Osman, Siti Khadijah Ab. Manan and Ghafarullahhuddin Din Part X

[]Marketing

[]75 Determining Income Differences Among Hotel Guest Towards Dissatisfaction with Hotel Services in Kuala Lumpur. . . . . . . . . . . 825 Mohammad Zaim Mohd Salleh, Aini Mat Said, Elistina Abu Bakar, Azmi Mat and Ainunnazlee Mohd Ali 76 The Effect of Social Media Depends on Social Media Intelligence Among Graduates . . . . . . . . . . . . . . . . . . . . . . . . . . . 835 Nadhrathul Ain Bt Ibrahim, Rosidah Bt Musa and Rabiah Bt Abdul Wahab Part XI

[]Music

[]77 Effectiveness of Music Theory and Music Appreciation Digital Courseware on Students Achievement. . . . . . . . . . . . . . . . . . . . . . 847 Ahmad Rithaudin Md Noor Part XII

[]Religion

[]78 Managing Disputes in the Division of Matrimonial Property Involving Polygamous Marriage in the Malaysian Shariah Courts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 865 Noorul Huda Sahari and Najibah Mohd Zin 79 Home Financing in Islam: A Study of Understanding and Practices Among UiTM Staff . . . . . . . . . . . . . . . . . . . . . . . . . 879 Mohd Kamal Azman Jusoh, Wan Azmi Wan Ahmad, Muhammad Muzakkir Othman and Norhapizah Mohd Burhan Part XIII

[]Social Sciences

[]80 The Use of Narrative Framework in Learning L2 Vocabulary Among Malaysian ESL Learners . . . . . . . . . . . . . . . . . . . . . . . . . 889 Khairul Firhan Yusob, Ahmad Nazri Jelani, Iza Nurhidayah Ismail and Nurliyana Baudin

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[]xvi

[]Contents

[]81 Demographic Profile and Purchasing Pattern of Organic Cosmetic Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 899 Ainunnazlee Mohd Ali, Aini Mat Said and Muhammad Zaem Mohd Salleh 82 Understanding Environmentally Friendly Consumer Behavior . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 909 Wan Kalthom Yahya, Noor Dalila Musa and Nor Hashima Hashim 83 The Perceived Value of Celebrity Chef Endorsement Toward Consumer Purchase Intention on Food Products . . . . . . . . . . . . . . 923 Shahril Hussin, Hasiful Fata Talhah, Nor Azureen Rozekhi and Rahmat Hashim 84 Environmental Change Threats in the Coastal Region of the Northeastern Part of Peninsular Malaysia . . . . . . . . . . . . . . . . . . . 933 Nor Shahida Azali and Khairulmaini Osman Salleh 85 Writing Reflections Using Intranet WordPress Blog . . . . . . . . . . . 945 Fairuz Husna Mohd Yusof and Othman Ismail 86 Intergenerational Knowledge Transfer Strategy Framework for Family Firm. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 957 Sabiroh Md Sabri, Haryani Haron, Nursuriati Jamil and Emma Nuraihan Mior Ibrahim 87 Improving Arabic Writing Skills “Jawlah Lughawiyyah”: An Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 971 Wan Abdul Hayyi Wan Omar, Mohd Shahrizal Nasir, Mohd Firdaus Yahaya and Zulazhan Ab. Halim 88 Malaysia’s Ageing Population Trends . . . . . . . . . . . . . . . . . . . . . . 981 Saharani Abdul Rashid, Puzziawati Ab. Ghani, Noorizam Daud, Zulkifli Ab. Ghani Hilmi, Siti Noorul Ain Nor Azemi, Sharifah Norhuda Syed Wahid and Mohd Rizal Razak 89 Empowerment of Young Entrepreneurs Through Entrepreneurship Education: Students’ Perception . . . . . . . . . . . . 991 Siti Aishah Mohamad, Ilyani Azer, Musramaini Mustapha and Hasni Abdullah 90 Occupational Safety and Health (OSH) Training: A Meta Analysis on the Learner’s Characteristics for Young and Aging Malaysian Workforce. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 999 Nurshamshida Md Shamsudin and Nik Hasnaa Nik Mahmood

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[]Contents

[]Part XIV

[]xvii

[]Tourism

[]91 From Cultural Activity to Cultural Tourism: A Case of Indigenous Community in Malaysia . . . . . . . . . . . . . . . . . . . . . 1009 Siti Suriawati Isa, Hassan Mohamed Zakaria and Siti Salwa Isa 92 Promoting Pro-environmental Behavior in Ecotourism Destination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1023 Zamru Ajuhari, Siti Suriawati Isa and Azlizam Aziz 93 Profiling Tourists According to Spending Behaviour: Examining Perhentian and Pangkor Islands Visitors. . . . . . . . . . . . . . . . . . . . 1041 Rosmini Ismail and Khalizul Khalid 94 Quality Measurement of Public Payment Counter Service: A Statistical Approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1053 Muzalwana Abdul Talib and Nur Juliana Abdul Shukor 95 Support for Future Tourism Development, Quality of Life and Perceived Impacts of Tourism Industry Within Indigenous Community: Mah Meri of Carey Island, Malaysia. . . . . . . . . . . . . 1063 Junicor Julien Majin, Inoormaziah Azman and Farizah Lamun Jailani 96 Understanding Homestay Sustainability Through Successor Motivational Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1075 Ramli Mohamed and Norliza Aminudin 97 The Influence of Hedonic Characteristics on Chefs’ Acceptance Towards Molecular Asam Pedas . . . . . . . . . . . . . . . . . . . . . . . . . . 1085 Farhan Faat and Artinah Zainal

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[]Part I

[]Accounting

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[]Chapter 1

[]Students’ Cheating Behaviour in Higher Education System: Reconnoitring the Academic Integrity from the Accounting Students Perspectives Nor Hawani Wan Abdul Rahman, Mohamad Ridhuan Mat Dangi, Sabariah Jamaluddin, Lily Mazlifa Mustafa and Yuzainizam Yusop

[]Abstract The cheating behaviour is regarded as unethical and unlawful action. When this behaviour infected the academic field, it is an alarming situation and is a very serious problem which needs a great attention. This paper concerns on students cheating behaviour in higher education system. This study is conducted towards the accounting students as the sample in order to assess an understanding about their perception towards this unethical behaviour. It is important to address the students cheating behaviour in the education system and to find a quick solution for this problem. If this behaviour is not well mitigated, it might be continually practiced in the workplace and the problem will evolve to become other types of cheating, fraud or other malpractices. Empirical results show that the students’ perceptions on seriousness of cheating behaviour depend on how the cheating behaviour is committed. It is supported by 61 % of the respondents agree that they had copied in any examination at the university while completing the course. Further analysis shows afraid of failing (64.2 %), not enough time (55.8 %) and need to get better marks N. Hawani Wan Abdul Rahman S. Jamaluddin L.M. Mustafa (&) Y. Yusop Faculty of Accountancy, Universiti Teknologi MARA Pahang, 26400 Bandar Tun Razak Jengka, Pahang, Malaysia e-mail: [email protected] N. Hawani Wan Abdul Rahman e-mail: [email protected] S. Jamaluddin e-mail: [email protected] Y. Yusop e-mail: [email protected] M.R. Mat Dangi Faculty of Accountancy, Universiti Teknologi MARA, 40450 Shah Alam, Selangor, Malaysia e-mail: [email protected] © Springer Science+Business Media Singapore 2016 M.A. Abdullah et al. (eds.), Regional Conference on Science, Technology and Social Sciences (RCSTSS 2014), DOI 10.1007/978-981-10-1458-1_1

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[](55 %) are the justifications used for committing cheating behaviour. Meanwhile the technique of cheating indicate copying from Internet (76.9 %), copying from book (64.5 %) and lecturer guidance (63.6 %) are the most popular techniques used by the respondents. Keywords Academic cheating

[]Education system Fraud Unethical

[]1 Introduction Higher education system supposed to be an ideal place in providing a source of human capital with professionals, skillful and educated students able to be produced. However, the case of cheating in academic field involving students in higher education system is an unethical practice and is ashamed behaviour. It also downgrades the responsible and professional manner of a student because cheating is not an acceptable conduct. As a student, one should possess a behaviour of an educated person which reflects a positive ethical manner and a high integrity. The integrity of a student means that it is like a social contract of honour for individuals to have an obligation to follow the rules and norms of academic practices (Jones 2011). The case of cheating in academic usually conducted by the students who want to obtain academic achievement though dishonest way. Cheating in the academic can be occurred in many forms which can range from copying another student’s paper to stealing an exam paper to forging an official university transcript (Pincus and Schmelkin 2003). This situation is annoying and problematic to the universities and affects the societies since the academic cheating practices lead to low-quality graduates as they can achieve success in academic performance without have to showing their true potential. It might as well influence the quality in performing their duty when they are entering the working phases. To be worse, the cheating behaviour could also be practiced during their employment. Therefore, according to Farnese et al. (2011), it is important to study the academic cheating behaviour as antecedents of future unethical behaviours that might reflect their attitudes when entering the workplace. A great attention to this matter must be conducted before this unethical conduct become blended together with their attitude and poisoned the ethics and moral values. Academic cheating will potentially bring together negative consequences to the society and the nation as whole. Hence the educators and the responsible authorities must act immediately to examine and understand the problems that could lead students to act immorally by conducting academic cheating. This is because, most of the students know that cheating is unethical, but they still practice it during the studying period in college or universities (Bernardi et al. 2004). In the real world, it is not possible that the cheating behaviour can evolve and expand to various types of wrongdoings, including betrayal, trick, deceive and defraud each other in a number of creative ways and places if there is no immediate action to overcome this issue. Khodaie et al. (2011) pointed out that study about cheating can be beneficial

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[]in two ways; which is first its consequences as a problem, and second, its spread in an educational environment. The study of academic cheating in Malaysia is still at infancy stage where it is clearly required more attention and considerable effort emphasize on this matter. However, by analysing the studies on other countries has shown that the case of academic cheating has spread in recent years and most of the students admitted they begun this behaviour since the first year in school (Khodaie et al. 2011). For example, as cited by Batool et al. (2011), a survey conducted by Maramark and Maline (1993) to the American universities a shocking percentage of students are cheating during their study range from a low of 15–20 % to a surprising 81 %. The cheating behaviour in academic not only reflects the negative effect towards the students, but it could also downgrade reputation of the academic institution. Therefore, this present study as a turning point for an emphasize effort to a study on understanding the behaviour of academic cheating among students especially in UiTM Pahang and Malaysia in general.

[]2 Literature Review Previous studies on academic cheating have defined its meaning differently, but still it pointed out to the act of dishonesty practiced by individuals. As cited by Rangkuti (2011, p. 105), Cizek (2001) define academic cheating is “any act that violates the rules in a test, actions that give an advantage to students who take a test in a way unfair to other students, or actions by students that can reduce the accuracy of test results”. Other studies by Jones (2011), refer this issue as academic dishonesty which includes cheating, fraud and plagiarism, the theft of ideas and other forms of intellectual property whether they are published or not. Jones (2011) also defined cheating as “any deceitful or fraudulently attempt to evade rules, standards, practices, customs, mores, and norms to obtain an unfair advantage or to protect someone who has done so”. Meanwhile, by referring to Sierra and Hyman (2008), defined academic cheating as an effort used by individuals to use data or resources on exams illegally for example, copying another student’s answer or written work (plagiarized) to get some academic credit although they acknowledge those behaviour are wrong. As in general understanding, cheating involves an act of deception, fraud or betrayal that unfairly takes advantage over others. The advancement of technology nowadays also aids the students to cheat in more simple and convenient way. This is conferred by O’Connor (2003) who discussed the plagiarism from electronic sources, including the Internet, online databases and journals, peer essays and assignments and e-books. Using electronic devices such as computer, notebook or smartphone with the Internet enables students to share and gather information at their will. The students are freely accessing the data and materials available publicly on the Internet. Positive side, this will help to increase and improve their knowledge, however, if it was misused, it could lead them to use these sources as theirs and exposing them to the behaviour of cheating and plagiarism.

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[]The students cheating behaviour have kept the researchers to wonder why they are performing this action at the same time general perception has recognized it as the unlawful and dishonest action. Many past research studies on this issue have provided numerous outcomes on the factors that could lead the students to cheat. For instance, Niels (n.d) has stated that social factors and curricular factors could influence the cheating behaviour. Social factors as discussed by this researcher highlighted on fear of failure and parents who demanding good grades of their children. Other than that, some students also feel pressure resulted from academic competition to get high achievement. The curricular factors could lead to cheating behaviour might be influenced by fact-based learning where the students need to remember numerous important facts and incompatible teaching method to suit with current needs. Meanwhile Ruto et al. (2011) conduct a survey to assess the students cheating behaviour revealed that students who do not attend lectures, lack of preparedness for examinations, peer influence, pressure from workplaces and lack of confidence are among the factors become a catalyst for the students to cheat. However Rangkuti (2011) assert that cheating behaviour were led by factors such as declining of moral value from the society, culture or the educational institutions itself that viewed academic cheating as normal. Other than the belief of cheating is necessary to obtain high grades and the accessibility of internet services has also facilitated the cheating behaviour. The elaboration for relationships of moral values and cheating behaviour can be found in Bernardi et al. (2004) emphasized on the attitudes of the cheaters in the aspects of moral reasoning, moral judgment and moral behaviour towards college students. There are also several studies that link the academic cheating with the fraud triangle theory that has been widely used by professionals in the financial crime area to explain the behaviour, attitude and the motivation of students for their action in cheating. This is supported by Hayes et al. (2006) who discussed several types of academic fraud, including cheating using the fraud triangle theory and discuss some measures that can be employed to reduce the likelihood of this illicit behaviour. The study by Widianingsih (2013) put an interest to find which of the elements in fraud triangle theory whether it is incentives, opportunities or rationalization that can influence students cheating behaviour. The researcher discovered incentives as the significant variables to influence the cheating behaviour. However, Becker et al. (2006) found that all the elements in the fraud triangle theory are the significant determinant for the students cheating behaviour. Meanwhile Malgwi and Rakovski (2009) use fraud triangle theory to identify the possible fraud risk factor that might occur in the academic field. Despite the fraud triangle theory, some other researchers such as Gallant and Drinan (2006) adopting the organizational theory which puts the student cheating problem in the context of the educational institution as a complex organization affected by people, time and social forces. On the other hand, Coren (2012) employed the theory of planned behaviour model to predict the target behaviour of whether the faculty would speak face-to-face with a student suspected of cheating. This theory indicated the intention as the predictor for behaviour while intention can be predicted by examining attitudes and subjective

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[]norms (Coren 2012). Thus, whether or not for an individual to initiates the cheating behaviour will depend on their intention. To get insight about students’ intentions to cheat, Sierra and Hyman (2008) seek to examine the perceived moral intensity and personal moral philosophy of the students. The moral intensity refers to a situation where it can influence the people’s judgments, intention and behaviour to act according to such situation. The intention to cheat also related to the magnitude of consequences resulted from the cheating behaviour. For example, the students will reluctantly cheat if they feel that they could fail the course grade rather than if the consequences are not severe such as only fail the exam and not the whole grade (Sierra and Hyman 2008). On the other hand, the personal moral philosophies are the standards to judge the acts, intentions and consequences. Some people may view the cheating behaviour is absolutely unacceptable action. While there are also some people feel that the desire to attain goals or achieving something is more important even if they have to violate the moral judgment including cheating (Sierra and Hyman 2008). If there is no appropriate action to diminish the cheating behaviour, it will lessen the morality of individuals and any achievement obtained through this way are meaningless. According to Ruto et al. (2011), cheating will discourage morale and frustrates the students who do not cheat if they see the cheating students leave without punishment. This may discourage the other students to work hard and not impossible if they also tempted to cheat. Therefore, cheating behaviour among students must be prevented and effective proper solutions must be outlined to address this problem. Academic institution, administrators and the faculty should collaborate together focusing on the prevention and detection of cheating in their campuses. As according to Fawkner and Keremidchieva (2004) proposed three approaches to countercheating behaviour, that is reduce the need, provide alternatives and lead by example. Meanwhile, Jones (2011) provides the guidelines that are useful for the academic institution in handling this matter. In general, these guidelines suggest universities to be proactive, be informed, communicate clearly and fairly for the cheating consequences and its negative effect, penalize the students involved in cheating fairly and should not take the case personally. The academic institution and its administrator also can enhance the moral development; develop the students’ sensitivity to ethical issues through the establishment of written and unwritten codes of conduct that will explain the acceptable and unacceptable behaviour as a student and ethical academic practices (Sierra and Hyman 2008). Cheating behaviour as practiced during the study also will affect the ethical values of an individual when they are entering career field. Ruto et al. (2011) also mentioned students who cheat will be inclined to cheat in their professional careers and will indirectly damage the academic community and the society at large. Hence, if the students have used to cheat during their studying, it is not possible if they could involve to other fraud activities in their work. This problem is a serious matter and it requires great attention to overcome this issue, or else, others will percept higher education system is failing to nurture the learning and mastering of education towards its students. Education institutions at all levels should help

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[]students to understand the importance of other’s intellectual property as well as the practice of integrity. Learning in higher education is not just about to get a good grade, but it is also important to develop the will and the skill of the students to encourage them about the fair practices, honest and responsible manner.

[]3 Research Methodology This chapter outlines the research methodology employed to accomplish research objectives. There were One hundred and seventy-seven (177) numbers of full time-students of Diploma in Accountancy programme in UiTM Pahang to participate in this study. One hundred and seventy-seven (177) students participated. Approximately seventy per cent (70 %) of the participants were female; and another thirty per cent (30 %) were male. To gather information about the academic cheating understanding among accounting students it was decided to use a paper-based survey. Questionnaires were adapted from Sheard and Dick (2003) and Monica et al. (2009). Researchers added several items based on the theoretical basis and input from several parties about the behaviour of academic cheating among the students lately and was trialled before it was administered to the students. A paper questionnaire was given to the students in their tutorial classes near the end of the semester. Participation was voluntary. In order to maximize the return rate and encourage honest responses the questionnaire was anonymous. Most students chose to participate and returned a completed questionnaire. The survey questionnaire contained of three (3) dimensions: demographic profile, student’s perception of the seriousness of cheating behaviour and assessing the rate of malpractice in examinations among accounting students.

[]4 Findings and Analysis 4.1

[]Demographic Profile

[]Table 1 shows the results of the respondent’s demographic profile. This study gains the data from the total of 177 respondents consists of 54 (30.5 %) are male and 123 (69.5 %) are female. The respondents used for this study comes from various parts or semesters classified by Part 1 until Part 6 and above. In this study, the respondents from Part 1 is 18 (10.2 %), Part 2 is 22 (12.4 %), Part 3 is 9 (5.1 %), Part 4 is 45 (25.4 %), Part 5 is 33 (18.6 %), Part 6 is 44 (24.9 %) and Others with the frequency and percentage of 6 and 3.4 % respectively. The respondents who stated as others usually the students, that is from Part 6 and above. Meanwhile the result of Cumulative Grade Point Average (CGPA) is the value of a calculation of a

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[]Table 1 Respondents’ demographic profile Demographic Gender Part

[]CGPA

[]Parents’ level of education

[]Male Female Part 1 Part 2 Part 3 Part 4 Part 5 Part 6 Others 3.50 and above 3.00–3.49 2.50–2.99 2.00–2.49 None SRP/LCE/PMR SPM/MCE STPM/HSC DIPLOMA FIRST DEGREE MASTER/Ph.D Not attending school/primary school Others

[]Frequency

[]Percentage

[]54 123 18 22 9 45 33 44 6 57 62 30 9 18 27 74 13 20 24 10 6

[]30.5 69.5 10.2 12.4 5.1 25.4 18.6 24.9 3.4 32.4 35.2 17.0 5.1 10.2 15.3 41.8 7.3 11.3 13.6 5.6 3.4

[]3

[]1.7

[]student’s grade along the period of their study. It shows that majority respondents which is 62 (35.2 %) of them comes from the students who achieved the CGPA value range from 3.00 to 3.49 followed by 57 (32.4 %) respondents who obtain 3.50 and above. There are 30 (17.0 %) respondents with their CGPA value of 2.50–2.99, while 9 (5.1 %) respondents with the CGPA value of 2.00–2.49. However, there are also respondents who not stating their CGPA value represented by 18 (10.2 %) respondents. For the background of the parents’ education, majority respondents (74: 41.8 %) have their parents with SPM or MCE. It is followed by 27 (15.3 %) respondents with their parents’ education of SRP/LCE/PMR. For the STPM/HSC, it recorded 13 or 7.3 %. These education levels are regarded as secondary school education. On the other hand, the results also recorded the respondents’ parents who further their studies in universities. This is represented by 20 (11.3 %) parents have Diploma, 24 (13.6 %) parents have First Degree and 10 (5.6 %) parents have Master/Ph.D. However, there are also parents who are not attending school or only receive primary school education that is represented by 6 (3.4 %). Meanwhile, 3 (1.7 %) respondents stated their parent’s education as others.

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[]70% 61% 60% 50% 50% 44% 41%

[]36%

[]40% 30%

[]36% 31% 28%

[]Very serious Serious

[]28%

[]Not serious 19%

[]20%

[]14% 11% 10% 0% Copy during exam

[]Help other students Enquiring viva to copy question

[]Giving proxy attendance

[]Fig. 1 Student’s perception of the seriousness of cheating behaviours

[]Figure 1 presents the student’s perception of the seriousness of cheating behaviours in university. There are four situations given to measure the seriousness of cheating behaviour such as copying during examination, helping other students to copy answers during examination, enquiring viva questions from friends who have given the exam and giving proxy attendance for their friends. As indicated in Fig. 1, 41 % of the respondents agree that copying during examination are not a serious cheating behaviour and 31 % of the respondents agree that it is a very serious cheating behaviour. In second situation which is helping other students to copy answers during examination, the result indicates that 44 % of the respondent agree that it is a serious cheating behaviour and 36 % agree it is not a serious cheating behaviour. The result of the study indicates that enquiring viva questions from friends who have given the exam is the serious cheating behaviour in university (61 %) and giving proxy attendance for their friend is not a serious cheating behaviour (50 %). From the above result, it shows that there are two situations considered to be serious cheating behaviours to the respondents that are helping other students to copy answers during examination and enquiring viva questions from friends who have given the exam. The findings are consistent with neutralization theory. As cited by Retingger and Kramer (2008), Sykes and Matza (1957) argued that neutralizing attitudes allow students to rationalize behaviour that is contrary to their ethical codes. Therefore the cheating behaviour in two situations such as copying during examination and giving proxy to attendance, students were not seen as a very serious cheating behaviour in university. On the other hand, if the cheating behaviour committed is caused by external factors it will be seen as a serious cheating behaviour. This finding is supported by Murdock and Stephens

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[](2007) as cited by Retingger and Kramer (2008). This cheating behaviour help other students to copy and enquiring viva questions seem as serious cheating behaviour as these two situations are caused by other students who involved in the process of cheating. Therefore, as stated by Murdock and Stephens (2007) cheaters tend to consider their behaviour acceptable when they can describe it as caused by external forces rather than their own dishonesty. Overall, the result indicates the respondents’ perception depends on how the cheating behaviour is committed. In addition, the cheating behaviour seemed to be serious if it involved others in committing the cheating behaviour. Figure 2 indicates the result of respondents regarding their experiences in copying in university. Overall, the result shows that 66.1 % of the respondents agree that they have copied in any of the examinations in university and only 32.2 % have not involve in any copying activities while completing the course. The higher percentage in copied experiences may be due to the different assessment method implemented in university as compared in the secondary school. In secondary education, the students are required to take a national assessment test, Penilaian Menengah Rendah/Lower Secondary Assessment (PMR/LSA) in form three, compulsory national examination (Sijil pelajaran Malaysia) in form five and Malaysian Higher School Certificate (Sijil Tinggi Pelajaran Malaysia in form 6. However, their grades in these three examinations only have been determined by how well they attempt the respective papers. In addition, their result in concurrent tests or quizzes was not used to determine their final grades. This is contrary with the continuous assessment in university as all the quizzes, tests, assignment, project paper and final examination would be considered in determining the grade for the respective course. Therefore, the copied experiences in this study cover the test, assignment, quizzes, laboratory test, project paper and final examination. The higher percentage in copied experiences by respondents indicates that the accounting students have a serious integrity issue. The effect of this integrity issue is not only about grades they obtained through cheating, but the effect is believed to continue in future when they are entering career field. As stated by Ruto et al. (2011), students who cheat will be inclined to cheat in their professional careers and will indirectly damage the academic community and the society at large. Hence, if the students have used to cheat during their studying, it is not possible if they could involve to other fraud activities in their work. This finding directly supports the perception of the respondents regarding the attitude of copying in the examination. Obviously, the result also indicates the accounting students in Fig. 2 Copied experiences in university of accounting students

[]Copied in any of the examination in university

[]32.2% 66.1% Note: 3 respondents (1.7%) did not answer this section

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[]Yes No

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[]N. Hawani Wan Abdul Rahman et al. 100 80 60 40 20 0

[]No

[]Yes

[]Fig. 3 Reasons for cheating by the accounting students

[]this study have not seen the issue of copying in any examination in the university as a main integrity issue that need to be avoided by university students. Figure 3 shows the percentage of accounting students in relation to their reasons for cheating. The students were asked to select 14 possible reasons if they have ever copied during the examinations in college. The highest percentage contributes by the reason of ‘Afraid of failing’ which covers 64.2 %. Students are more motivated to cheat because they believed that by cheating they will able to avoid from failing. Insufficient time to study also gives the second highest reason to cheat which presented a total of 55.8 %. Surprisingly, the reason of ‘Everyone does it’ shows quite a high number that is 50 respondents out of 120 approve of cheating behaviour because to them, it is an acceptable attitude since everybody is doing it. It seems parallel with the results that 41 % of the respondents with the opinion that copying during examination is not a serious cheating behavior. This may raise an issue whether the students know that copying during examination is a serious offense. Table 2 illustrates the reasons agreed by the respondents in accordance to the highest percentage. As mentioned previously, ‘Afraid for failing’ and ‘Not enough time’ reasons, show the largest number of respondents which represented by 64.2 and 55.8 % respectively. Meanwhile, 66 out of 120 respondents (55 %), agreed that they need to cheat while in college in order to gain better marks. ‘Helping friends’ reason also contributes quite a number of respondents to approve the cheating attitude that is 45 % or equivalent to 54 respondents. It was found that students will discover various techniques of cheating in order to complete the task or assignment that have been imparted to them (Fig. 4). Although they know that cheating involves an act of deception, fraud or betrayal that unfairly takes advantage over others, this behavior is still in practice among university students. As in the research from 120 respondents, majority of them (76.9 %) commit in cheating by copying from Internet. As what conferred by O’Connor (2003) cheating in Internet arose from many sources, including online database and journals, peer essays and assignments, and also from e-books. Other than that most of them also copying from books, which showed 64.5 % of them

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[]Table 2 Reasons for accounting students to cheat according to the highest percentage Reasons for cheating

[]Number of respondents agreed

[]Percentage

[]Afraid for failing Not enough time Need to get better marks Assignments are too hard To help a friend Can’t afford to fail Everyone does it Heavy workload at university Exams are too hard Lazy Will fail otherwise Missed classes due to ill health Parental pressure For monetary or other reward

[]77 67 66 55 54 51 50 46 43 41 22 15 6 4

[]64.2 55.8 55 45.8 45 42.5 41.7 38.3 35.8 34.2 18.3 12.5 5 3.3

[]90.0 76.9%

[]80.0 70.0

[]64.5%

[]63.6%

[]60.0 47.9%

[]50.0

[]46.3%

[]38.8%

[]40.0

[]44.6%

[]36.4%

[]29.8% 30.0

[]24.8% 18.2%

[]20.0 15.7% 10.0

[]4.1%

[]5.8%

[]8.3%

[]0.8%

[]-

[]Fig. 4 Technique cheating

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[]15.7% 7.4%

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[]copying notes or answers from book. Some of them in other way showing their assignment work to a lecturer for a guidance (63.6 %). Remarkably, most of them are collaborating with their friends to accomplish what have been responsible for. For example they taking their friends assignment from lecturer pigeon hole and copy it (47.9 %), collaborating on doing assignment by meant to completed individually (44.6 %), given answer to a tutorial exercise to classmate if they faced the technical problem (38.8 %), copy majority of an assignment from a friend’s assignment and doing a little bit amendment (36.4 %), and also swapping assignment with friend (29.8 %). But on the other hand, there is a little number of students resubmitting their friend’s assignment, using medical certificate from doctor to get an extension when they are not sick and hiring someone to write an assignment for them. This behavior among the lowest technique practice by the students as it shows the percentage of below 10 %. From all the techniques, it was found out that hiring someone to sit exam for them is the lowest score, as it just indicates 0.8 % students involved with the action. The analysis in this section determines answer from non-cheating students. It is important to have an understanding of non-cheating students perception of these practices. Result from Table 3 shows that 50 % of the students that had never performed these practices indicated that the most likely effect of cheating practices on his future was that they will feel incompetent to teach students, where as another 27.8 % claimed that had lack of confidence to meet clients. Another question sought students’ responses to whether they feel guilty after copying. More than half or 58.9 % voted yes to this question, 33.9 % claimed sometimes and 7.1 % said no. Non-cheating students indicated that pride in their work and a sense in moral values Table 3 Non-cheating students’ perception Non-cheating students’ perception What effect do you think will it have on your future

[]Do you feel guilty after copying

[]Have you tried to reduce or stop copying

[]What is your opinion about those students who cheat

[]I feel incompetent to teach students Lack of confidence No effect Yes Sometimes No Yes No Never thought of it They will not be efficient teachers They will not render efficient treatment They will be as good as those who are not

[]N

[]Percent

[]27

[]50.0

[]15 12 33 19 4 48 5 1 26

[]27.8 22.2 58.9 33.9 7.1 88.9 9.3 1.9 50.0

[]18

[]34.6

[]6

[]11.5 (continued)

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[]Table 3 (continued) Non-cheating students’ perception Do you think those who cheat should be punished Have you ever helped someone to copy

[]How do you feel if the person you have helped gets more marks than you Have you ever complained against anyone who has copied What was the reason for not complaining

[]What was the action taken

[]Should be given one chance Yes No Sometimes Never Quite often I feel bad No feelings Will never help anyone else No Yes You didn’t want to spoil the relations with the candidate You are least bothered You were scared You had no time Warned the candidate No response Suspended the candidate Warned you only

[]N

[]Percent

[]25 23 4 30 7 1 28 15 8 43 9 24

[]48.1 44.2 7.7 78.9 18.4 2.6 54.9 29.4 15.7 82.7 17.3 49.0

[]15 7 3 13 7 3 1

[]30.6 14.3 6.1 52 28 12 4

[](Sheard and Dick) and understand that copying habits is against the rules and reflect future dishonest behavior (Rettinger and Kramer 2008) are some of the factors which could trigger them not to engage in serious forms of copying. The next question tried to investigate whether they ever tried to reduce or stop copying. Result shows that majority or 88.9 % were tried to reduce or stop copying in the examinations. Another 9.3 % claimed no to this question. To explore how significantly the answer of not trying to reduce or stop copying among non-cheating students, further questions were to be answered by them. About 51.5 % viewed that students who cheat will not be an efficient teachers and will not render efficient treatment, and 48.1 % claimed that the copier or cheater should be given one chance before being punished. 78.9 % of them sometimes helped someone to copy and will feel bad if the person they helped gets more marks than him. This is true in a sense that students who commits academic cheating makes disadvantage for students who have an academic integrity, GPA owned by them are higher than non-cheating students (Rangkuti 2011). On the other hand, 82.7 % never make complaints against anyone who has copied. Result shows that this action was taken because they did not want to spoil the relations with the candidates (49 %), least bothered (30.6 %), scared of (14.3 %) and had no time (6.1). Of 17.3 % who have make complained against anyone who has copied reported that warned the candidate (52 %), no response

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[](28 %) and suspended the candidate (12 %) are some of the actions taken. According to Haswell et al. (1999), a system of discipline based on warning alone is a minimal cost solution but does not provide an effective deterrent to copying. Therefore, a more costly solution such as zero marks or exclusion and failing a course must be suggested and approved by.

[]5 Conclusion This study adds to the body of evidence that cheating behavior is at a worrying stage. This is due to the findings obtained in this study which demonstrate the highest percentage of students perceive the given cheating situations such as copy during exam, and giving proxy attendance as not a serious problem. Besides, majority of the respondents admit that they have the experiences in performing cheating during the examination. This situation prescribe that students nowadays have lack of awareness about academic integrity. If this situation continuously persists and not dealt effectively, it is expected that more students will find an unfair means to obtain high scores. There are various reasons and techniques used by the students to perform the cheating behavior and this including with the aid of technology such as the Internet. Hence, the university management should have to set up immediate action to prevent this dishonest action from becoming common practices. We believe that this study could reveal an understanding about the cheating behaviours and its implications to the students, university, academic institution and more importantly the adverse effects to future generations. Although this study has highlighted significant findings of the seriousness of cheating behaviours, note that the respondents are only from the accounting students where this indicates as the limitation of this research. The results could be varied if diverse respondents are used and enlarge the scopes by including other universities. Therefore, further studies are needed to find other factors to cause students to cheat, and whether the students from different faculties have their different perceptions towards cheating behaviours. Perhaps, more factors could be excavated and explored since cheating techniques potentially can be evolved and innovated. Hence other important areas for further studies should take into account the effective ways to curb cheating behaviours and maintaining the academic integrity from top the bottom line.

[]References Batool, S., Abbas, A., & Naeemi, Z. (2011). Cheating behavior among undergraduate students. International Journal of Business and Social Science, 2(3), 246–254. Becker, D. J., Connoly, P. L., & Morrison, J. (2006). Using the business fraud triangle to predict academic dishonesty among business student. Academy of Educational Leadership Journal, 10 (1), 37–53.

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[]Bernardi, R. A., Metzger, R. L., Scofield Bruno, R. G., Wade Hoogkamp, M. A., et al. (2004). Examining the decision process of students’ cheating behavior: An empirical study. Journal of Business Ethics, 50(4), 397–414. Cizek, G. J. (2001). Detecting and preventing cheating on credentialing examinations. CLEAR Exam Review, 12, 14–21. Coren, A. (2012). The theory of planned behaviour: Will faculty confront students who cheat? Journal of Academic Ethics, 10, 171–184. doi:10.1007/s10805-012-9162-7 Farnese, M. L., Tramontano, C., Fida, R., & Paciello, M. (2011). Cheating behaviors in academic context: Does academic moral disengagement matter? Procedia—Social and Behavioral Sciences, 29, 356–365. doi:10.1016/j.sbspro.2011.11.250 Fawkner, M., & Keremidchieva, G. (2004). Plagarism, cheating and academic dishonesty—Have you been there? Information and Security. An International Journal, 14, 113–137 Gallant, B. T., & Drinan, P. (2006). Organizational theory and student cheating: Explanations, responses and strategies. The Journal of Higher Education, 77(5), 839–860. Haswell, S., Jubb, P., & Wearing, B. (1999). Accounting students and cheating: A comparative study for Australia, South Africa and the UK. Teaching Business Ethics, 3(3), 211–239. Hayes, D., Hurt, K., & Bee, S. (2006). The war on fraud: Reducing cheating in the classroom. Journal of College Teaching & Learning, 3(2), 1–12. Jones, L. R. (2011). Academic integrity & academic dishonesty: A handbook about cheating & plagiarism: Revised & expanded edition. Retrieved from https://www.fit.edu/current/ documents/plagiarism.pdf Khodaie, E., Moghadamzadeh, A., & Salehi, S. (2011). Factors affecting the probability of academic cheating school students in Tehran. Procedia—Social and Behavioral Sciences, 29, 1587–1595. doi:10.1016/j.sbspro.2011.11.401 Malgwi, C. A., & Rakovski, C. C. (2009). Combating academic fraud: Are students reticent about uncovering the covert? Journal of Academic Ethics, 7(3), 207–221. Maramark, S., & Maline, M. B. (1993). Academic dishonesty among college students: Issues in education. U.S. District of Columbia: U.S. Department of Education, Office of Educational Research and Improvement (ERIC Document Reproduction Service No. ED 360 903). Monica, M., Ankola, A. V., Ashokkumar, B. R., & Hebbal, I. (2009). Attitude and tendency of cheating behaviours amongst undergraduate students in a Dental Institution of India. European Journal of Dental Education, 79–83. doi:10.1111/j.1600-0579.2009.00592.x Murdock, T. B., & Stephens, J. M. (2007). Is cheating wrong? Students’ reasoning about academic dishonesty. In E. M. Anderman & T. B. Murdoek (Eds.), Psychotogical perspectives on academic cheating (pp. 229–253). Burlington, MA: Elsevier. Niels, G. J. (n.d.). Academic practices, school culture and cheating behaviour. Winchester Thurston School. O’Connor, S. (2003). Cheating and electronic plagiarism—Scope, consequences and detection. Retrieved from http://www.caval.edu.au/assets/files/Research_and_Advocacy/Cheating_and_ electronic_plagiarism-scope_consequences_and_detection_EDUCASUE_May_2003.pdf Pincus, H. S., & Schmelkin, L. P. (2003). Faculty perception of perceptions of dishonest behavior. Journal of Accounting, Ethics & Public Policy, 5, 375–393. Rangkuti, A. A. (2011). Academic cheating behaviour of accounting students: A case study in Jakarta State University. In Educational integrity: Culture and values. Proceedings 5th Asia Pacific Conference on Educational Integrity. The University of Western Australia, 26–28 September (pp. 105–109) http://www.apcei.catl.uwa.edu.au/procs/rangkuti.pdf Rettinger, D. A., & Kramer, Y. (2008). Situational and personal causes of student cheating. Research in Higher Education, 50, 293–313. doi:10.1007/s11162-008-9116-5 Ruto, D. K., Kipkoech, L. C., & Rambaei, D. K. (2011). Student factors influencing cheating in undergraduate examinations in Universities in Kenya. Problems of Management in the 21st Century, 2, 173–181. Sheard, J., & Dick, M. (2003). Influences on cheating practice of graduate students in IT courses: What are the factors? ACM SIGCSE Bulletin, 35(3), 45–49.

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[]Sierra, J. J., & Hyman, M. R. (2008). Ethical antecedents of cheating intentions: Evidence of mediation. Journal of Academic Ethics, 6, 51–66. doi:10.1007/s10805-008-9056-x Sykes, G. M., & Matza, D. (1957). Techniques of neutralization: A theory of delinquency. American Sociological Review, 22(6), 664–670. Widianingsih, L. P. (2013). Students cheating behaviors: The influence of fraud triangle. Review of Integrative Business and Economics Research, 2(2), 252–260.

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[]Chapter 2

[]Use of Amazacc Brain Teaser Card for Financial Accounting Classroom: Non-accounting Students Nurul Afzan Najid, Wan Mardyatul Miza Wan Tahir, Suria Fadhillah Md Pauzi, Nurhazrina Mat Rahim and Mohamad Ridhuan Mat Dangi

[]Abstract Accounting subject is crucial for accounting students as well nonaccounting students as it is necessary requirement to fulfill their course undertaken. Apparently, common perception from students are accounting is boring, difficult to understand the basic concept and a hard course to comprehend. Their perceptions affect their attitude towards the course and therefore academic performance. Students do in fact value interactive opportunities with peers and prefer to take an active part in the learning process as interactivity is more engaging and more effective than just listening. Thus, this Amazacc Brain Teaser Card is an educational game designed for use in the financial accounting classroom. Amazacc Brain Teaser Card is recommended to be used in classroom as to demonstrate the relationship between the assets, liabilities, owner’s equity, revenue and expenses of a business. It is the foundation for the double-entry bookkeeping system elements in the accounting equation. These games encourage students to explore while learning. More importantly, it is a creative classroom activity which is both competitive and collaborative. Students are given Amazacc Brain Teaser card that consists of the challenges need to be done. Therefore, when students understand the elements and the relationship between those element it will make them more confident and motivate to develop their interest in financial accounting course and finally achieve a good result on this subject. Keywords Non-accounting students card Financial accounting

[]Accounting equation mania Brain teaser

[]N.A. Najid (&) W.M.M. Wan Tahir S.F. Md Pauzi N. Mat Rahim Faculty of Accountancy, Universiti Teknologi MARA, Pahang, Malaysia e-mail: [email protected] M.R. Mat Dangi Faculty of Accountancy, Universiti Teknologi MARA, Shah Alam, Malaysia © Springer Science+Business Media Singapore 2016 M.A. Abdullah et al. (eds.), Regional Conference on Science, Technology and Social Sciences (RCSTSS 2014), DOI 10.1007/978-981-10-1458-1_2

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[]1 Introduction The most pressing problem facing the accounting profession today is that is not attracting enough students. In fact, non-accounting students which major in business, computer science, plantation and agriculture and others have misperceptions about this subject while they still need to complete the course in order to graduate. Some of the negative perceptions on accounting subject where they view it as dull, boring, mechanical, repetitive, number crunching, introverted, methodical and tedious (Cory 1992; Cohen and Hanno 1993; Fisher and Murphy 1995; Friedlan 1995; Saudagaran 1996; Mladenovic 2000). However, recent studies by Hashim et al. (2012) found that, there are positive perceptions of Malaysian secondary school students towards the accounting subject. Either way, there is necessary to rejuvenate the methods of learning and teaching environment for accounting subject. According to Nitkin (2011), the traditional class format, based on lectures and problem sets are inadequate in meeting the learning needs of current students. Other previous researchers such as Albrecht and Green (2008) also opined that there should be a paradigm shift in collegiate teaching where teacher-centered learning environment seems not to be very effective for teaching accounting subject. Hence they implied that learning-centered approach should be practiced as a way to encourage students to have a better learning experience in class, achieve good results and able to produce significant and lasting change. In order to achieve this, Albrecht and Green (2008) suggest that learning and teaching environment should also be equipped with the usage of simulation games in accounting subject. In fact nowadays, various educational accounting games have been available for years but have generally involved complicated apparatus. Hence this paper presents a simple method of card games appropriate for an introductory accounting class in response to students’ which are increasingly visual and kinesthetic learners.

[]2 Problem Statement An introduction to students on accounting terminology and classification is one of the most problematic parts in learning basic accounting. Students are not able to differentiate between asset, liability, revenue, expenses and owner’s equity, although they learned it during the class session. For example, assets are comprised of building, equipment, debtors, inventory, etc. According to Wikipedia, asset defines as “an economic resource. Anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to have positive economic value”. However, for an introductory lesson, students are clueless what kind of items is considered as assets. This fundamental lack of understanding on accounting classification prohibits them from understanding the next level of topic and consequently forbids them to success in accounting subject. Therefore, an exposure list of items will gradually make students understand the nature of those items and its

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[]classification. As such, this paper offers innovation on application of various level difficulties of card games into educational games to create fun, enjoying yet informative activities in class. The main objective of AmazAcc Brain Teaser card is to enhance students’ ability to classify items into its accounting classification and then relate into its equation by highlighted in student learning styles.

[]3 Literature Review The use of educational games in teaching and learning environment has caught the attention of several researchers to develop and design suitable games to be used in accounting subject. As such, Knechel (1989) has introduced the Monopoly board game to teach undergraduate students the financial accounting journal entry process. The effort done by Knechel (1989) that drives him to adopt simulation games as the aiding tools to teach accounting subject was because he found some drawbacks in traditional classroom method. Some of these drawbacks were presented in Shanklin and Ehlen (2007), such as (1) lack of active engagement of students in progressive process; (2) failure to understand the reality in business operations; (3) reduce the likelihood of students from copy the work of others. It is not to say that the traditional classroom teaching method are not relevant, but in order to keep the pace with the changes of time and environment factors, a transformation effort is required to include a vibrant environment in learning process. This issue also has been discussed in Poli and Proctor (2000) who stated that accounting educators need to change the way of classroom teaching where it should involve students in the learning process, to provide opportunities for students to learn by doing and to assist students in attaining communication and interpersonal skills. In the study by Shanklin and Ehlen (2007), they discussed about their effort in using Monopoly® as a simulation tool to reinforce an understanding of how the accounting cycle impacts financial statements used to evaluate management performance. They found that, by using this game, students appear to grasp the nature and purpose of the financial accounting system more readily and actively than with other educational approaches previously used. Shanklin and Ehlen (2007) also mentioned the effort by the faculty at The Ohio State University have developed an accounting game called “Simulation” designed for the area of management accounting that focus on manufacturing and selling products from budgeted positions and pricing choices. Although the game is successful to be used in class, however, it is still unable to resemble real business activity hence students still lack in conferring response on seemingly random event and situation (Shanklin and Ehlen 2007). Thus, Knechel identified this problem and he embark on the use of Monopoly® to mitigate the problem and he also succeed to gain students’ interest to participate in learning process through the simulation games (Shanklin and Ehlen 2007). Meanwhile Nitkin (2011) has introduced the “Game of Business”, that is a type of board game inspired by the Hasbro Game of Life™ which is able to provide an opportunity to practice transaction analysis and review the accounting cycle. In

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[]addition, Nitkin (2011) stated that this game also introduce students to the annual statement studies and to build a pro forma balance sheet. Despite the new experience in learning accounting subject, this game also encourages cooperative teaching and learning strategies among all the players who participate in this game (Nitkin 2011). Students are coming from diverse degree of motivation, commitment, ability and learning styles or approaches (Kirkland and O’Riordan, n.d.). Therefore, educational practitioners need to find alternatives for the teaching and learning process, so that it can be delivered effectively. The closest alternative that can be referred to this situation is by adopting the ‘learning through play’ environment during the teaching and learning process. This is because all peoples around the world understand the language of ‘play’ regardless of the age, ethnic, economic or social background (Azriel et al. 2005). Therefore, games can be a suitable medium for students to explore and gathering information in a fun and interactive way while they are not only play merely for amusement, but also gain valuable knowledge from it. There are value added benefits that come from the use of simulation games during the teaching and learning process. Among others, Shatz and Loschiavo (2005) claimed that games can improve the mood and this facilitates greater creativity and boost student morale and interest. Other than that, games can provide instant feedback for students since they can focus on their learning process since it involves interactive learning experience together with other player in timely manner (Kirkland and O’Riordan, n.d.). Meanwhile Cook and Hazelwood (2002) and Johnson and Mayer (2010) found that students are enthused to spend more time in class preparation on the days when games are played compared to other times. This situation give a conception that using simulation games and ‘learning through play’ environment provides a great opportunity and can serve as an alternative instrument to generate interest among students in learning accounting subject. On the other hand, Siewiorek (2012) applies the simulation games to expose students with different leadership styles visible and provide students with experiences beneficial for the development of leadership skills. From the study Siewiorek (2012) also add that simulation games has the potential to be used in higher education learning because it can expose students with the real work-related context. Furthermore games can provide the environments where the player can learn about themselves, interact with others, develop certain types of social skills and develop thinking and solving problems skill Moursund (2007). Hence, using games for teaching and learning session cannot be seen as taboo because it has significant positive impact to support the effort of upgrading the educational landscape. Albrecht and Green (2008) have highlighted some advantages of using simulation games for teaching and learning purpose. For instance, (1) it can motivate the students to participate in the game setting activities more than the traditional class setting; (2) enhances the cognitive growth (for example, recall of factual knowledge, improve problem-solving skills, apply concepts and principles); (3) enhances affective learning; (4) encourage intensive practice in verbal and written communication; (5) support flexibility in thinking and an adaptive response to a dynamic environment; (6) simulation games can be repeated or can be played with the same participant; (7) promoting variant skills and experience through playing games.

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[]Meanwhile Clayton (n.d.) generalize the positive perceptions about using simulation games in education into three broad categories, namely as depth of learning; student engagement and transferable skills development. All these categories support that simulation games have its significant impact in transforming the teaching and learning process into an innovative method to promote a more effective learning experience. Therefore, by having simulation games in a process of teaching and learning accounting subject, it can be a stepping stone to offset the students’ negative assumption about this subject.

[]4 The Concept of the Game: AmazAcc Brain Teaser Card Robinson (2007), Eisner (2004), and Arhin and Johnson-Mallard (2003), among others, have suggested that changes in learning styles make the use of games and simulations even more important. They further suggest that where past generations of students may have poured over textbooks, the current generation, groomed on television and computers, is more accustomed to other modes of education. Lippincott and Pergola (2009) and Murphy (2005) suggest that GenY students are more visual than verbal learners. Additionally, these researchers find a strong preference towards active engagement and innovation in the learning process both from students and from educational oversight commissions such as the Accounting Education Change Commission. According to Tanner and Linquist (1998), games and simulation can fulfill this need for active engagement. They find that games promote active engagement in the learning process while providing opportunities for practice and application without rote memorization. Lippicott and Pergola (2009) call this type of pedagogy “edutainment” as games and simulations capitalize on the entertainment value of the activity to support academic learning. AmazAcc Brain Teaser card which features both entertainment and educational value capture various learning styles to benefit each of the participant. Thus the game was specially developed by adopting Neil Fleming’s VAK/VARK model. This model claimed that students can be divided into four distinguishing learning styles, namely visual learner, auditory learner, reading writing preference learner and kinesthetic learner. Different types of learning styles are reflected throughout the games where each of the participants has to read, speak, think, listen and solve the task in competitive way. The game is divided into three levels of difficulty based on color which is Green Card for novice, Yellow Card for intermediate and Red Card for expert. For novice, the card containing pictures which denote the items under accounting’s classification where the participants need to classify it into whether it is non-current asset, current asset, non-current liability, current liability, revenue, expenses or owner’s equity. Whereas the Yellow Card featuring words scrabble which consist of letter represents the items in accounting classification. The participants need to put the letter in order and identified the items. For Red Card, it comprises of transactions and multiple choice questions. These cards required participants to solve the questions related to

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[]Novice level • Visual learner • Kinesthetic learner

[]Intermediate level • Reading/writing preference learner • Kinesthetic learner

[]Expert level • Reading/writing preference learner • Auditory learner • Kinesthetic learner

[]Fig. 1 The concept of the game based on learning style

[]the accounting equation and classification. The participants need to listen carefully when the answer is wrong in order to guess it right on next turn. The game encompasses of facilitator and a group of participants. For easy monitoring, it is recommended that each group consists of three to four participants only. The facilitator should have strong basic accounting foundation. Each participant will get five green, yellow and red cards respectively. The games start with first participant showing his/her green card and notifying the facilitator the accurate classification of the item. The facilitator needs to verify the answer and if the answer is correct the participant can set aside the card. The participant now only holds 14 cards. However, if the answer is wrong the next participant will take turn to show his/her green card. Therefore the first participant still holds his/her 15 cards. The same rule will apply to each participant. It should be noted that the participants have to finish all the green cards before proceeding to the yellow card and finally the red card. The first participant who can complete the task will be the winner of the game (Fig. 1).

[]5 Students Feedback To date, the game has been used for two semesters for introductory accounting course for non-accounting students in Universiti Teknologi MARA (UiTM) Pahang. The survey represents 58 students over the past two semesters. The results capture student feedback in regard to their perception on the games. The questions consist of 5-Likert scale where 1 represents of strongly disagree to 5 represents of strongly agree. Table 1 is the result of the survey conducted for the students. Student responses indicate that they felt the game was well structured (4.5 out of 5 point scale) and the game provided a good way to review before examination (4 out of 5 point scale). The students would highly recommend using the game in future classes with highest score of 4.8 out of 5 point scale). The students score 4 out of 5 point scales on the effective approach of teaching and interaction between them during the game will help for better understanding of accounting subject. In regard to the question whether this approach is different from other traditional of teaching, students score 4.5 out of 5 point scales. For the next question of the

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[]Table 1 Result of the survey conducted for the students Students’ perception

[]Score

[]1. The game was well structured and well organized 2. The game was a good way to review before the examination 3. I would recommend using the game again in future classes and to other people 4. This game was very effective as compared to other approaches of teaching technique in accounting 5. This game was very interactive and effective for a better understanding in accounting subject 6. The approach of this game is different with the traditional teaching such as using textbook, exercises and other teaching methods in the class 7. The game helped the students better understand accounting classifications and accounting equations 8. This game is able to adapt interactive learning style in the class

[]4.5 4 4.8 4 4 4.5 4 4.7

[]survey regarding their understanding of accounting classification and equation the score is 4 out of 5 point scales. Most of them strongly agreed that the game is able to adapt interactive learning style (4.7 out of 5 point scale). Overall, students enjoy participating the game and some of them commented that they now feel learning accounting subject is not dull any more.

[]6 Conclusion The goals of this game are to provide interactive opportunities to the students where they actively take part in the learning process than just listening. By completing these games in class has an added benefit as it forces all the students to participate. Hence students who do not understand on that particular topic eventually are being detected. More importantly, it is a creative classroom activity which is both competitive and collaborative. Students are given Amazacc Brain Teaser card that consists of the challenges need to be done. Therefore, when students understand the elements and the relationship between those element it will make them more confident and motivate to develop their interest in financial accounting course and finally achieve a good result on this subject.

[]References Albrecht, D., & Green, B. (2008, August 5). Using simulation games in financial accounting & managerial accounting. California: American Accounting Association Anaheim. Arhin, A., & Johnson-Mallard, V. (2003). Encouraging alternative forms of self expression in the generation Y student: A strategy for effective learning in the classroom. ABNF Journal, 14(6), 121–122.

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[]Azriel, J., Erthal, M., & Starr, E. (2005). Answers, questions, and deceptions: What is the role of games in business education. Journal of Education for Business, 9–13. Cohen, J., & Hanno, D. M. (1993). An analysis of the underlying constructs affecting the choice of accounting as a major. Issues in Accounting Education, 8(2), 219–238. Cook, E. D., & Hazelwood, A. C. (2002). An active learning strategy for the classroom–”who wants to win… some mini chips ahoy?” Journal of Accounting Education, 20(4). Cory, S. (1992) Quality and quantity of accounting students and the stereotypical accountant: Is there a relationship? Journal of Accounting Education, 10, 1–24. Eisner, S. (2004). The class talk show: A pedagogical tool. S.A.M. Advanced Management Journal, 69(1), 34–42. Fisher, R., & Murphy, V. (1995). A pariah profession? Some students’ perceptions of accounting and accountancy. Studies in Higher Education, 20(1), 45–58. Friedlan, J. M. (1995). The effects of different teaching approaches on students’ perceptions of the skills needed for success in accounting courses and by practicing accountants. Issues in Accounting Education, 10(1), 47–63. Hashim, M. H., Embong, A. M., & Shaari, H. Z. (2012). Perceptions on accounting career: A study among the secondary school students in a regional Kelantan state. World Academy of Science, Engineering and Technology, International Journal of Social, Business, Psychological, Human Science and Engineering, 6(12). Johnson, C., & Mayer, R. (2010). Applying the self-explanation principle to multimedia learning in a computer-based game-like environment. Computers in Human Behavior, 26(7). Kirkland, D. & O’Riordan, F. (n.d). Games as an engaging teaching and learning technique: Learning or playing? Retrieved from http://icep.ie/wp-content/uploads/2010/01/Kirkland_et_al.pdf Knechel, W. R. (Fall 1989). Using a business simulation game as a substitute for a practice Set. Issues in Accounting Education, 411–424. Lippincott, B., & Pergola, T. (2009). Use of a job cost simulation to engage Gen Y students. Journal of the International Academy for Case Studies, 15(2), 97–113. Mladenovic, R. (2000). An investigation into ways of challenging introductory accounting students’ negative perceptions of accounting. Accounting Education: An International Journal, 9(2), 135–155. Moursund, D. (2007). Introduction to using games in education: A guide for teachers and parents. College of Education, University of Oregon. Murphy, E. A. (2005). Enhancing student learning with governmental accounting jeopardy! Journal of Public Budgeting, Accounting & Financial Management, 17(2), 223–248. Nitkin M. R. (2011). “Game of Business”: A game for use in introductory accounting. The Accounting Educators’ Journal, XXI, 131–152. Poli, P. M., & Proctor, R. J. (2000). Proli Footwear, Inc.: A team-based audit simulation. Retrieved from http://aaahq.org/northeast/2000/q34.pdf Robinson, S. (2007). Learning games from the ground up. Allied Academies International Conference. Academy of Educational Leadership. Proceedings, 12(1), 43–46. Saudagaran, S. M. (1996). The first course in accounting: An innovative approach. Issues in Accounting Education, 11(1), 83–94. Shatz, M., & Loschiavo, F. (2005). Learning through laughter. Industrial Engineer, IE, 37(9) p. 66. Shanklin, S. B., & Ehlen, C. R. (2007). Using the Monopoly® board game as an in-class economic simulation in the introductory financial accounting course. Journal of College Teaching & Learning, 4(11). Siewiorek, A. (2012). Playing to learn: Business simulation games as leadership learning environments, Dissertation paper, Centre for Learning Research, University of Turku, Assistentinkatu 7, 20014 Turku, Finland. Tanner, M. M., & Lindquist, T. M. (1998). Using MONOPOLY™ and teams-games-tournaments in accounting education: A cooperative learning teaching resource. Accounting Education, 7 (2), 139–162.

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[]Chapter 3

[]Ethnic Board Diversity and Financial Performance: Evidence from Malaysian GLCs Mohd Fairuz Adnan, Nurshamimi Sabli, Mohd Zulfikri Abd Rashid, Azizi Hashim, Halil Paino and Azizah Abdullah

[]Abstract Recently, there has been an increasing research regarding government involvement in corporate control. Most of them focus on the ownership structure and firm performance but very little concentrate on the board diversity and financial performance. Therefore, the main objective of this study is to investigate the association between board diversity and firms’ financial performance of 26 Malaysian government-linked companies (GLCs). Focusing on ethnicity variable to explain the board diversity, this study aims to observe its relationship with financial performance of the firms, as measured by return on equity (ROE) and return on asset (ROA). A final sample of 99 GLCs listed on the Bursa Malaysia across four years from 2007 to 2010 was utilized. The empirical results revealed that ethnic board diversity in GLCs was negatively and significantly related to firms’ financial M.F. Adnan (&) N. Sabli A. Hashim H. Paino Faculty of Accountancy, Universiti Teknologi MARA Pahang, 26400 Bandar Tun Razak Jengka, Pahang, Malaysia e-mail: [email protected] N. Sabli e-mail: [email protected] A. Hashim e-mail: [email protected] H. Paino e-mail: [email protected] M.Z.A. Rashid Faculty of Accountancy, Universiti Teknologi MARA Perak, 35400 Tapah Road, Perak, Malaysia e-mail: mohdzulfi[email protected] A. Abdullah Faculty of Accountancy, Universiti Teknologi MARA (UiTM), 40450 Shah Alam, Selangor, Malaysia e-mail: [email protected] © Springer Science+Business Media Singapore 2016 M.A. Abdullah et al. (eds.), Regional Conference on Science, Technology and Social Sciences (RCSTSS 2014), DOI 10.1007/978-981-10-1458-1_3

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[]performance. The findings hence rejected the hypothesis made in this study that ethnic board diversity has a positive impact towards financial performance. As GLCs have unique characteristics compared to other entities, a future look on other aspect of firm performance may help to explain the goodness of ethnic board diversity in the GLCs. Keywords Board diversity

[]Ethnic Firm performance

[]1 Introduction Governing a business corporation demands systematic and well organized efforts due to its complexity and challenges. As such, the governing process requires a group of people namely the Board of Directors (BODs) to lead the process. Acting as the top level body of the firm, they are mainly involved in the advisory and monitoring of the firm operation. Their responsibility encompasses protecting shareholders’ assets and to ensure they receive decent returns on their investment (Kennon 2011), being responsible in advising and monitoring the management (Chien 2008), overseeing the financial accounting process (Anderson et al. 2004), making all important decisions such as acquisitions and mergers (Kennon 2011) and so forth. These are some responsibilities of BODs and it is important to note that failure in discharging these responsibilities may contribute to the negative management practices that may further lead to corporate failures (Bathula 2008). In Malaysia, the issues involving BODs have received increasing attention by corporate stakeholders as addressed by Security Commission (SC) of Malaysia. A speech by Datuk Ali Abdul Kadir, the Chairman of SC has urged that emphasis should be placed on the board structure and composition in avoiding corporate failure (http://www.sc.com.my). In addition, he also suggested that BODs should be aware of their duties and functions in discharging their responsibilities. In this regard, continuous research on this area is very crucial so as to strengthen the awareness among the stakeholders and BODs themselves on the important of BODs to discharge their responsibility effectively and efficiently. Issues related to BODs have attracted the interest of researchers from various disciplines for the past decades (Ararat et al. 2010). In the area of BODs characteristics, there were many studies that focus on demographic characteristics and the effect of board diversity (e.g. age, tenure, gender, specialization). For instance, a study by Arnegger et al. (2014) found that occupational and international background diversity of BODs increase with increasing firm size. On the other hand, a study by Ntim (2015) suggested that ethnic and gender diversity are positively associated with market valuation. In Malaysia, studies on BODs were mainly conducted on the companies listed on Bursa Malaysia. Some of them focus on Government-Linked Companies (GLCs) such as Julizaerma and Sori (2012) who found that a positive association exists between gender diversity and firm performance. Although the study by Julizaerma and Sori (2012) focused on Malaysian

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[]GLCs, but we have yet to find any study that specifically concentrate on ethnic diversity in Malaysian GLCs. Therefore, this study aims to investigate the relationship between ethnic diversity of board with the company financial performance in GLCs. In addition, what motivate us to conduct this study is partly driven by the concerted efforts put by the Malaysian Government in enhancing the performance of GLCs, where the Government recently launched “GLC Transformation Programme” so as to create economic and shareholders’ value (http://www. khazanah.com.my/faq.htm). Thus, the result of this study is expected to provide a meaningful outcome to assist the Government in realizing the key principle of this transformation as well as contribute to the advancement of GLCs in Malaysia. Thus, the main objective of this study is to examine the effects of ethnic diversity of BODs on the performance of Malaysian GLCs.

[]2 Literature Review and Hypothesis Development 2.1

[]Ethnic Diversity

[]There are many studies carried out on demographic diversity and its implications on performance, but very few studies have been conducted with a special focus on relationship between ethnic diversity in board of directors and firm performance (Marimuthu 2008). Hambrick and Mason (1984) came out with an upper echelon theory stated that the demographic diversity of board may derive from combination of different idea, opinion and expertise for generating the best result. In conjunction with that, Marimuthu and Kolandaisamy (2009) stated that by having a greater demographic diversity in boards, they could influence the decision-making process, and positively contribute to the firm performance because diverse demographic characteristics are related with many cognitive bases, values and perceptions that affect the decision-making of top management and board of directors. Rose et al.’s (2013) study on 117 samples of companies in the leading stock in Nordic countries (Denmark, Sweden, Finland, Norway and Germany) found that increased proportion of non-national board members may lead to negative impact on financial performance measured by ROA. In addition, Pitts and Jarry (2005) stated that government agencies in U.S. have made an effort to organize the diversity in public sector’s workforce to be more ethnically diverse and enhance the understanding of the impact of ethnic diversity on workplace interactions and work-related outcomes. Yet their study on public sector organization by using social identification and categorization theory, and similarity theory found that ethnic diversity among public managers level did not increase organizational performances, in fact, it turns out to reduce organizational performance when greater ethnic diversity is among street-level bureaucrats or at employees levels.

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[]On the other hand, Shukeri et al. (2012) used a random sample from 300 Malaysian public listed companies for each sector and found that a positive relationship between ethnic board diversity and financial performance. Consistently, a study by Carter et al. (2007) on all firms listed on the Fortune 500 over the period 1998–2002 in U.S. found that ethnic diversity positively impact on firm financial performances through all three functions of the board they investigated, which is audit, executive compensation and director nomination boards. The result also supported by Marimuthu (2008) who examines the relationship between ethnic diversity on boards of directors and firm financial performance. He used secondary data from the Malaysian top 100 non-financial companies listed on the main board over a period of 2000–2005 and found the result supports the hypothesis that the increase in ethnic diversity on boards of directors would lead to higher firm financial performance. The reason to these results may be similar to the study by Ntim (2015) which stated that there is a positive relationship between ethnic board diversity and stock market valuation. The sample data was collected from 291 organizations from eight non-financial industries in South Africa. Therefore, based on the previous studies stated above, the current study derives the following hypothesis: H1: There is a positive relationship between ethnic diversity and firm performance.

[]3 Research Methodology 3.1

[]Sample Selection

[]Using GLCs listed on Bursa Malaysia over the periods 2007–2010, this study focuses on the impact of ethnic diversity in GLCs on their financial performance. As of 13 March 2009, the total listed GLCs in Bursa Malaysia are 33 which consist of financial and non-financial companies. This list was generated from the Ministry of Finance (MOF) website; (http://www.malaysiaco.com/government-linked-company). However, according to Marimuthu and Kolandaisamy (2009), in order to control the heterogeneous characteristics of the samples, it is important to exclude the financial companies. Thus, the seven listed financial companies were identified and excluded, leaving a balance of 26 listed GLCs for this study. Initially, the total data of this study consists of 104 samples obtained from each 26 GLCs for four-year period from 2007 to 2010. However, due to unavailability of important data to perform this study from several firms’ annual report and some outliers in the data collected, the number was reduced to a final sample of 99 samples of GLCs as shown in Table 1.

[][email protected]

[]3 Ethnic Board Diversity and Financial Performance … Table 1 Firms by industry

[]GLCs Valid

[]3.2

[]31

[]Trading/services Plantation Consumer products Industrial Products Technology Construction IPC Properties Total

[]55 8 11 12 3 4 3 3 99

[]Data Collection

[]This study employs the data from various sources. The main source is from Bursa Malaysia website in which all the samples of GLCs company annual report were downloaded. From the annual report, the independent variable known as ethnic diversity was gained and analysed for each GLCs from 2007 to 2010. Furthermore, the data of the dependent variables named as financial ratio which consist of ROA and ROE and data of control variables known as firm’s size which represent the total asset of the firms were collected using financial databases namely DataStream and OSIRIS. In addition, the types of firm’s industries were classified in reference to Bursa Malaysia.

[]3.3

[]Variable Measurement

[]The hypothesized relationships are modelled as follows: Model: ROAt = b0 + b1ethnict + b2CFirmSizet + b3Industryt + et ROEt = b0 + b1ethnict + b2CFirmSizet + b3Industryt + et Table 2 shows the measurement methods for all variables used.

[]4 Results and Discussion Results of the study were analysed using several statistical tests under Statistical Package for Social Science (SPSS). These included descriptive statistics, Pearson correlation and multiple regression analysis.

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[]Table 2 Measurement of variables Variables

[]Measurements methods

[]Literatures

[]Dependent variables Firm performance: (1) Return Net income divided by total asset on asset (ROA) (2) Return Net income divided by total equity on equity (ROE) Independent variables (1) Ethnic Ratio scale: non-Bumiputera directors diversity divided by total board directors Approximated by the natural logarithm of total assets Control variables (1) Firm Control for industry with a dummy variable. size: Industry dummy for property, construction, (2) Firm trading and services, consumer product, industry: infrastructure, plantations, industrial product and technology. Measured as dummy variable taking the value of 1 if the firm belongs to a particular industry, otherwise 0

[]Marimuthu and Kolandaisamy (2009) Marimuthu and Kolandaisamy (2009), Pohjanen et al. (2010) Marimuthu and Kolandaisamy (2009) Ees et al. (2003), Campbell and Vera (2008) Carter et al. (2007), Post et al. (2011), Ehikioya (2007)

[]Table 3 Descriptive statistic test Ethnic diversity Return on assets Return on equity Total assets (Firms’ size) Industry

[]N

[]Min

[]Max

[]Mean

[]Std dev.

[]99 99 99 99 99

[]0.00 −14.67 −27.24 59,226 1

[]0.43 25.20 39.50 74,081,100 8

[]0.19 7.37 11.20 11,734,111 2.38

[]0.10 5.79 9.61 16,689,111 1.95

[]In order to reach a final sample of 99 GLCs in this study, all extreme outliers with reference to the dependent variable; i.e. ROA and ROE were deleted to ensure a normal distribution among the data set. First of all, descriptive tests were conducted which involve descriptive statistical analysis for numerical variables, i.e. ethnic diversity, ROA, ROE and firms’ size while frequency statistical analysis for categorical variable, i.e. firm industry. The results of both tests are summarized in Table 3. Based on Table 3, total assets which represent the firm size variable showed a very huge difference between its minimum value of 59,226 and maximum value of 74,081,100. The result also indicated that on average, total assets of GLCs were 11,734,111. This could explain the general diversity among GLCs in Malaysia. The other five variables which involve independent variable, i.e. ethnic diversity,

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[]Table 4 Pearson correlation test Ethnic diversity Ethnic diversity ROA ROE Total asset Firm industry Note *Significance

[]ROA

[]ROE

[]Total asset

[]Firm industry

[]1 −0.15 1 −0.20* 0.678** 1 0.23* −0.09 0.02 1 −0.05 −0.23* −0.29** −0.35** 1 at 0.10 level; **Significance at 0.05 level; ***Significance at 0.01 level

[]dependent variables, i.e. ROA and ROE and control variable, i.e. firm industry stated an acceptable range between the minimum and maximum values of the variables. This may be due to the extreme outliers concerning dependent variables being deleted in arriving at the final sample of the study. Yet the mean value for ethnic diversity revealed quite least diversity of ethnic among the board of directors in GLCs. In addition, according to Pallant (2007), correlation analysis is conducted to describe the strength as well as the direction of relationship between two variables. Inspection of the scatterplot prior to the conduct of correlation test may ensure that the assumption of linearity is not violated. Moreover, the result is crucial as an initial sign to the hypothesis being developed before confirming the final result using multiple regression analysis. Table 4 reported the correlation result between all the variables used in the study. Based on Table 4, the results show negative relationship between independent variable, i.e. ethnic diversity and both of the dependent variables, i.e. ROA and ROE. This is quite surprising as the result is not consistent with other studies in prior years. Moreover, it only shows significant relationship at 10 % level between ethnic diversity and ROE, indicating a weak relationship between the two types of variables. However, the result revealed a highly significant positive correlation between ROA and ROE at 5 % level, which indicate a good measure of both variables for the firm’s financial performance. In addition, the issue of multicollinearity also does not exist as most of the relationship is at little or low correlation as described in Table 4. The descriptive and correlation results show mix findings on the variables as well as their correlation with the dependent variables. The Pearson correlation test indicates an early signal of hypothesis rejection. However, to prove the result, multivariate analysis was conducted which involved the multiple regression test. Table 5 reported the multiple regression result for the model used in this study. From Table 5, adjusted R square value is 20.9 % for ROA and 9.8 % for ROE. This shows that, in overall, 20.9 % of the variations in ROA value and 9.8 % of the variation in ROE value are explained by ethnic diversity, firm size and firm industry. In other words, the results also indicate that about 80–90 % of the variation in ROA and ROE are explained by other factors not tested in this study. Next, looking at the overall significance of the model, the F-ratio value which was analysed using ANOVA test show a highly significant value of 3.872 at 1 % level

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[]Table 5 Regression results Variables

[]Unstandardized coefficient beta

[]ROA (tstat)

[]Unstandardized coefficient beta

[]ROE (tstat)

[](Constant) 16.01 2.56 15.54 1.40 Ethnic diversity −12.50 −1.73* −12.63 −0.99 Total assets −1.56 −1.85* −0.85 −0.57 Firm industry Included Included (Dummy) 20.9 % 9.8 % Adjusted R2 F-statistic 3.872 (0.000) 2.183 (0.030) (P-value) Notes * Significant at the 0.10 level; ** Significant at the 0.05 level; and *** Significant at the 0.01 level

[]for ROA and 2.183 at 5 % level for ROE. Hence, this revealed the contribution of at least one of the explanatory variables in the model towards the dependent variables. Finally, looking at the main coefficient between ethnic diversity and both of the dependent variables, it shows a disappointing result when the sign or relationship is in contrast with the expected sign. Further, the results show a significant negative relationship at 10 % level between ethnic diversity and ROA (−1.73) but non-significant negative relationship between ethnic diversity and ROE (−0.99). Hence, it totally rejected the hypothesis developed, i.e. ethnic diversity in board is positively associated with firm performance. The results also somehow suggest that higher ethnic diversity in GLCs will reduce firm’s performance, as measured by ROA and ROE.

[]5 Conclusion The analysis on the results showed that more diversity in board ethnicity seems to significantly reduce firm performance with regard to ROA. The results are different from Marimuthu and Kolandaisamy (2009) which suggest that ethnic diversity leads to higher firm’s performance with regard to ROA and ROE among Malaysian firms. The reason behind this is possibly caused by the small number of non-Bumiputera (non-Bumi) directors in GLCs. Most of directors in Malaysian GLCs are dominated by Bumiputera ethnic. The annual reports identified that highest number of non-Bumi directors in all 102 GLCs samples is only 5 (Telekom Malaysia berhad) and the lowest number is 1 director of non-Bumi in the board. However, the maximum number of 5 non-Bumi directors is also derived from big proportion of 14 directors. Another reason for the hypothesis rejection in this study may be due to the sole focus on Malaysian GLCs which have different policies and whose major control is

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[]by the government with the objective of redistributing the economic wealth of the country (Hamid 2011) and preferences of Bumiputera privilege (Gomez 2003). Compared to Marimuthu and Kolandaisamy (2009), who were focusing on top 100 Public Listed Companies in Malaysia which have different ownership controls and policies. In addition, this study suggests that the negative tendency between ethnic diversity and GLCs performances is also influenced by GLCs policies which contribute to more group conflict, reduce communication, and reduce cooperation among different ethnics in board (Dubbin and Jung 2011) and consequently reduce GLCs performances. The findings suggest that GLCs should have more homogeneity of ethnicity in board rather than heterogeneity. However, the finding does not prevent non-Bumi from being involved in GLCs’ board, but rather suggests that there should be highly cooperative and more like-minded and understanding between both Bumiputera and non-Bumi directors regarding the GLCs policies as well as the Malaysian ‘Social Contract’. The Social Contract is the agreement reached before Malaysia achieved independence in 1957, among Malays, Chinese and Indians races which consists of consensus that the non-Malay should acknowledge the special position of Malays as Native (Bumiputera). Several provisions of the law including the distribution of the position in Kingdom (Government) are also included in this understanding (pmr.penerangan.gov.my). Additionally, it is believed that the results would be different if the sample of ethnic diversity in Malaysia was higher.

[]References Anderson, R. C., Mansi, S. A., & Reeb, D. M. (2004). Board characteristics, accounting report integrity, and the cost of debt. Journal of Accounting and Economics, 37, 315–342. Ararat, M., Aksu, M., & Cetin A. T. (2010). Impact of board diversity on boards’ monitoring intensity and firm performance: Evidence from the Istanbul stock exchange. Working paper series. Available at SSRN: http://ssrn.com/abstract=1572283 Arnegger, M., Hofmann, C., Pull, K., & Vetter, K. (2014). Firm size and board diversity. Journal of Management and Governance, 18, 1109–1135. Bathula, H. (2008). Board characteristics and firm performance: Evidence from New Zealand. PhD Thesis, Auckland University of Technology. Campbell, K., & Vera, A. M. (2008). Gender diversity in the boardroom and firm financial performance. Journal of Business Ethics, 83, 435–451. Carter, D. A., D’Souza F., Simkins B. J., & Simpson W. G. (2007). The diversity of corporate board committees and financial performance. Working paper series. Available at SSRN: http:// ssrn.com/abstract=1106698 Chien, A. (2008). The effect of board characteristics on foreign ownership: Empirical evidence from Taiwan. International Research Journal of Finance and Economics, 2, 1450–2887. Dubbin, F., & Jung, J. (2011). Corporate board gender diversity and stock performance: The competence gap or institutional investor bias? North Carolina Law Review, 89, 810–838. Ehikioya, B. I. (2007). Corporate governance structure and firm performance in developing economies: Evidence from Nigeria. Corporate Governance, 9(3), 231–243. Ees, H. V., Postma, T. J., & Sterken, E. (2003). Board characteristics and corporate performance in the Netherlands. Eastern Economic Journal, 29(1), 41–58.

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[]Gomez, E. T. (2003). Affirmative action and enterprise development in Malaysia: The new economic policy, business partnerships and inter-ethnic relations (pp. 59–104). XXI: Kajian Malaysia. Hamid, A. A. (2011). Network governance in government-linked companies (GLCs) and non-government-linked companies (NGLCs) in Malaysia. Journal of Financial Reporting and Accounting, 9(1), 54–73. Hambrick, D. C., & Mason, P. A. (1984). Upper echelons: The organisation as a reflection of its top managers. Academy of Management Review, 9(2), 193–206. Julizaerma, M. K., & Sori, Z. M. (2012). Gender diversity in the boardroom and firm performance of Malaysian public listed companies. Procedia-Social and Behavioral Sciences, 65, 1077– 1085. Kennon, J. (2011). The board of directors responsibility, role, and structure. Available at: http:// beginnersinvest.about.com/cs/a/aa2203a.htm. Accessed April 7, 2011. Khazanah Nasional Berhad. (2011). GLCs and GLCs Transformation System. Available at: http:// www.khazanah.com.my/faq.htm. Accessed March 7, 2011. Marimuthu, M. (2008). Ethnic diversity on boards of directors and its implications on firm financial performance. The Journal Of International Social Research, 1(4), 431–445. Marimuthu, M., & Kolandaisamy, I. (2009). Can demographic diversity in top management team contribute for greater financial performance? An empirical discussion. The Journal of International Social Research, 2(8), 273–286. Malaysia Co. Government linked companies. Available at: http://www.malaysiaco.com/ government-linked-company. Accessed March 7, 2011. Ntim, C. G. (2015). Board diversity and organizational valuation: unravelling the effects of ethnicity and gender. Journal of Management and Governance, 19, 167–195. Pallant, J. (2007). SPSS survival manual (3rd ed.). UK, USA: Open University Press Milton Keynes. Pitts, D., & Jarry E. M. (2005). Ethnic diversity and organizational performance: Assessing diversity effects at the managerial and street levels. Working paper, 1–41. Pohjanen, B., Bengtsson, D., & Smith, E. (2010). Return on diversity? A study on how diversity in board of directors and top management teams affects firm performance. Bachelor Thesis, Kristianstad University College. Post, C., Rahman, N., & Rubow, E. (2011). Green governance, board of director composition and environmental corporate social responsibility. Business and Society, 50(1), 189–223. Rose, C., Munch-Madsen, P., & Funch, M. (2013). Does board diversity really matter? Gender does not, but citizenship does. International Journal of Business Science and Applied Management, 8(1), 15–27. Shukeri, S. N., Shin, O. W., & Shaari, M. S. (2012). Does board of director’s characteristics affect firm performance? Evidence from Malaysian public listed companies. International Business Research, 5(9), 120–127.

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[]Chapter 4

[]The Impact of Educational Level of Board of Directors on Firms’ Performance Mohd Fairuz Adnan, Nurshamimi Sabli, Mohd Zulfikri Abd Rashid, Azizi Hashim, Halil Paino and Azizah Abdullah

[]Abstract The importance of education has been emphasized by the Malaysian Code of Corporate Governance which recommends directors to have qualities in knowledge and professionalism. However, there is comparatively lack of studies on the effects of educational background on the board level and its impact on performance. Thus, this study attempts to fill the gap by investigating the association between board diversity and firm performance of 26 government-linked companies (GLCs) and 26 non-government-linked companies (non-GLCs) in Malaysia. The study used characteristic of education diversity and tested on firm performance as measured by return on equity (ROE) and return on asset (ROA). It is predicted that education diversity has a negative association with both ROA and ROE. In order to investigate the findings, a final sample of 196 GLCs and non-GLCs listed on the Bursa Malaysia from 2007 to 2010 were used. It was analyzed using a quantitative method employed by Statistical Package for Social Science (SPSS) which compared education diversity of boards with firm performance. Multiple regression M.F. Adnan (&) N. Sabli A. Hashim H. Paino Faculty of Accountancy, Universiti Teknologi MARA Pahang, 26400 Bandar Tun Razak Jengka, Pahang, Malaysia e-mail: [email protected] N. Sabli e-mail: [email protected] A. Hashim e-mail: [email protected] H. Paino e-mail: [email protected] M.Z.A. Rashid Faculty of Accountancy, Universiti Teknologi MARA Perak, 35400 Tapah Road, Perak, Malaysia e-mail: mohdzulfi[email protected] A. Abdullah Faculty of Accountancy, Universiti Teknologi MARA (UiTM), 40450 Shah Alam, Selangor, Malaysia e-mail: [email protected] © Springer Science+Business Media Singapore 2016 M.A. Abdullah et al. (eds.), Regional Conference on Science, Technology and Social Sciences (RCSTSS 2014), DOI 10.1007/978-981-10-1458-1_4

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[]analysis was also used to estimate the relationships proposed in the hypothesis. The finding reveals that only education diversity in GLCs supported the hypothesis but not for non-GLCs. As a conclusion, this study established that education diversity in board would diminish firm performance especially in GLCs because their culture in appointing successful directors emphasizes on network with governance characteristics rather than education characteristic. Keywords Board diversity

[]Education Firm performance

[]1 Introduction The formation of corporation need to be directed and controlled by appointed people called Board of Director (BOD). BOD is a group of people appointed by shareholders whose main responsibility is to protect their assets through managing the company’s performance, hence giving the good return for their investment (Kennon 2011). Therefore, the BODs play a very important role in a corporation’s decision-making process and their decisions could affect the survival and direction of the company. Thus, they are burdened with a huge responsibility for the whole economy because “a small leak will sink a big ship” (Radlach et al. 2008). Due to emerging issue of business failure in 2007, Malaysia Code on Corporate Governance (MCCG) amended in October 2007 stressed that every appointed BOD must have specific criteria such as skills, knowledge, expertise and experience, professionalism and integrity. Therefore, this study is important in reflecting BODs’ education background in performing their responsibility with the effect of financial performance. One of the issues that has become the interest of researchers pertaining to the board of directors is the impact of BOD’s education on the firms. A number of studies have been conducted worldwide in this area. Some researchers tried to explore the impact of BOD’s education with the company performance such as Bathula (2008) who found that education diversity in the form of PhD and non-PhD holders affects company performance. A study in an emerging economy (Mauritius) by Mahadeo et al. (2012) on the other hand showed negative relationship between the education diversity and the performance of companies listed on Mauritius Stock Exchange. In Malaysia, the education background of BODs is also considered as an important issue whereby it is considered as one of the areas that emphasized by the Malaysian Code of Corporate Governance (Revised 2007). There were also studies conducted pertaining to this area such as Anum Mohd Ghazali (2010) that focuses on the impact towards the corporate performance which was brought by the new regulations imposed for post 1997 Asian financial crisis. On the other hand, Abidin et al. (2009) found that board composition and size have a positive impact on firm performance listed in Malaysia Stock Exchange. Although there were studies to examine the impacts of BODs towards performance in Malaysia, we found that it

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[]was quite difficult to discover the studies that focus on the impact of education diversity in Malaysian government-linked companies (GLCs). As such, this study intends to examine the relationship of BOD’s education with the company performance in GLCs. Our primary motivation to focus on GLCs in this study is mainly due to its significant impact and role given to the Malaysian economy especially in nation key strategic utilities and services (www.khazanah.com.my). In addition, according to Chakravarty and Ghee (2012), revenues generated by Malaysian GLCs in 2010 constituted 17.4 % of gross domestic products (GDP) which is greater than China and the U.S. that constituted 14.5 and 1.68 % respectively (www.theedgemalaysia.com). Thus, the objective of this study is to investigate the relationship between the education diversity of BODs in Malaysian GLCs and its performance. Finally, the results of this study may provide meaningful information to the company stakeholders for both GLCs and non-government-linked companies (non-GLCs) especially regulators and policy makers to react on this matter.

[]2 Literature Review and Hypothesis Development This section discusses the survey of literature and the development of hypothesis.

[]2.1

[]Education Diversity

[]Education diversity could be explained as different set of task relevant skills, knowledge and abilities possessed by team members as a function of their educational background (Dahlin et al. 2005). According to upper echelon theory (Hambrick and Mason 1984), to make a crucial decision for the firm such as decision in strategic measure, the demographic characteristics such as age, tenure and other characteristics are probably the important factors that will influence the decision-making (Zee and Swagerman 2009). In line with that, Carsen et al. (2004) suggest that upper echelon theory supports that the demographic characteristics of top managers or BODs and the organizational decision-makers have substantial effects on firm’s performance. It should be noted that education background is one of demographic characteristics of the board (Jung and Ejermo 2014). Post et al. (2011) study on 41 samples of U.S. based electronic manufacturing firms in the 2006 list of Fortune 1000 companies find that both board diversification and the higher educational requirements of directors may improve a firm’s environmental corporate social responsibility (ECSR). They suggest that a board that consists of higher educated people show more concern about the environment than those with less education. In addition, Dahlin et al.’s (2005) focus on diversity in MBA team members’ dominant educational background find that by having a

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[]team with educational diversity, it has positive effects on range and depth of information use. However, Pohjanen et al. (2010) who use a sample of 56 firms on Stockholm Stock Exchange (Sweden) large cap find that more education diversity would be negative for firm’s performance. Similar to Mahadeo et al. (2012), their study focuses on the boards of the 39 publicly listed companies, which comprises 371 directors on the Stock Exchange of Mauritius, a developing economy and an ex-British colony. The results indicate that boards which possess a higher mix of educational backgrounds will result in lower corporate performance. The result is supported by Bathula (2008). He studies education diversity with specific linkage between board members with PhD holders and non-PhD holders and their impact on firm’s performance. He used samples consist of BODs on 156 listed firms on New Zealand Stock Exchange for four years’ time period, from 2004 to 2007. The results show that with respect to number of PhD qualified members on board, their presence is negatively associated with firm’s performance and even with knowledge and skills of research and analysis, it appears that PhD members do not add any value to firm’s performance. Furthermore, Bhagat et al. (2010) find weak relationship between educational diversity and firm performance. They analyzed data on the education of 1800 individuals who served as CEOs of Standard and Poor’s Composite 1500 companies to determine the impact of education on CEO turnover and firm performance. They find that there is no strong evidence of a linkage between directors (CEO) education and firm performance. In addition, even when they find the evidence that the leadership of a CEO having a MBA degree from a top 20 business school enables better operating performance, the result is weak and probably, statistically insignificant. Therefore, the following hypothesis is proposed: H1: Education diversity among board members is negatively correlated with firm’s performance

[]3 Research Methodology In this part, discussion about sample selection, data collection, variable measurement and data analysis are presented.

[]3.1

[]Sample Selection

[]As discussed earlier, this study is conducted to examine the relationship between board diversity and the firm performance within the GLCs and non-GLCs listed on Bursa Malaysia that covers the period of 2007 until 2010. For GLCs, the sample selection will be based on the updated list of GLCs issued by the Ministry of

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[]4 The Impact of Educational Level of Board of Directors on Firms’ Performance Table 1 Breakdown of sample data by industry

[]Industry

[]GLCs

[]Non-GLCs

[]Trading/services Plantation Consumer products Industrial products Technology Construction IPC Properties Total

[]55 8 11 12 3 4 3 3 99

[]51 8 11 11 4 4 4 4 97

[]41

[]Finance Malaysia (MOF) as of 13 March 2009 on the ministry website (http://www. malaysiaco.com/government-linked-company). Based on the list, a total of 33 companies were categorized as GLCs. However, it is suggested that this sample should be controlled against the heterogeneous characteristic by excluding the sample from financial companies (Marimuthu and Kolandaisamy 2009). Out of 33, there were 7 financial companies thus the final sample would only consist of 26 companies. In addition, this study also attempts to make comparison between GLCs and non-GLCs. As such the number of non-GLCs sample was also selected as 26 listed firms to make sure that the results are comparable. The combination of 26 companies for GLCs and non-GLCs over the four-year period (2007–2010) has accumulated the total data that contain a number of 104 samples. However, after considering the effects of unavailability of some data and outliers, the data has finally remained as 99 and 97 samples for GLCs and non-GLCs, respectively. Details of the samples in accordance to industry breakdown are shown in Table 1.

[]3.2

[]Data Collection

[]This study uses secondary data which were mainly collected from the companies’ annual report (online) which are available and can be downloaded from the KLSE website. The annual reports downloaded are from 2007 until 2010 and used to get the information on the independent variable of this study, i.e. education diversity. In addition, the information of return on asset (ROA), return on equity (ROE) and firm total assets are collected using the financial database called Data Stream and OSIRIS. In this study, ROA and ROE are regarded as the dependant variables while total assets represent the size of company. Besides, the industrial classification used in this study is mainly based on the KLSE practice as published on their website.

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[]3.3

[]Variable Measurement

[]The hypothesized relationships are modelled as follows: Model 1: GLCs ROAt = b0 + b1Educationt + b2CFirmSizet + b3Industryt + et ROEt = b0 + b1Educationt + b2CFirmSizet + b3Industryt + et Model 2: Non-GLCs LogROAt = b0 + b1educationt + b2CFirmSizet + b3Industryt + et LogROEt = b0 + educationt + b2CFirmSizet + b3Industryt + et Table 2 shows the measurement method for all variables used.

[]3.4

[]Data Analysis

[]In testing the hypothesis developed, the multiple regressions were used. As stated earlier, the analysis is conducted to examine the relationship between education Table 2 Measurement of variables Variables

[]Measurements

[]Literatures

[]Dependent variables Firm performance: (1) Return on Net Income divided by total asset asset (ROA) (2) Return on Net Income divided by total equity equity (ROE) Independent variable (1) Education The propotion of directors who have a diversity master degree or advanced level Control variables (1) Firm size: Approximated by the natural logarithm of total assets (2) Firm Control for industry with a dummy industry: variable. Industry dummy for property, construction, trading and services, consumer product, infrastructure, plantations, industrial product and technology. Measured as dummy variable taking the value of 1 if the firm belongs to a particular industry, otherwise 0

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[]Marimuthu and Kolandaisamy (2009) Marimuthu and Kolandaisamy (2009), Pohjanen et al. (2010) Post et al. (2011), Le and Sundaramurthy (2009), Baghat et al. (2011) Ees et al. (2003), Campbell and Vera (2008) Carter et al. (2007), Post et al. (2011), Ehikioya (2007)

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[]diversity and firm’s financial performance that is represented by ROA and ROE. For this purpose, the Statistical Package for Social Science (SPSS) software was used.

[]4 Results and Discussion First and foremost, this study concentrates on the board education diversity in Malaysian listed companies with government involvement (GLCs) in comparison with other selected companies in the same industries which are categorized as non-GLCs. To be more specific, the study places an interest to see whether GLCs outperform non-GLCs on the relationship between board education diversity and firm performance. Hence, an independent sample t-test was first run to identify any significant differences between the mean variances of ROA and ROE in the two groups of companies. The result is shown in Table 3. Based on Table 3, after performing the independent sample t-test for both GLCs (assigned value of 1) and non-GLCs (assigned value of 2), the results appear significant for both ROA and ROE. With respect to ROA variable, the t value was 2.80 with p < 0.01 while ROE provided a lower t value of 2.19 but still significant at 5 % level. Further, an examination of the mean scores of both groups indicate that GLCs experienced better mean for ROA (7.37) and ROE (11.20) as compared to non-GLCs with mean value of 5.13 and 8.06 for ROA and ROE, respectively. The result makes the study become more interesting to test further on the performance of GLCs as compared to non-GLCs. Next, the study looks forward on the degree of linearity between variables tested in the study. The Pearson product-moment correlation test was conducted to examine the above purpose. Table 4 reported the results of both GLCs and non-GLCs. Table 4 shows contrast findings between independent variables, i.e. education diversity and both of the dependent variables, i.e. ROA and ROE in GLCs and non-GLCs. Only the results for GLCs presented the linearity relationship similar with the hypothesis developed in this study. Yet neither GLCs nor non-GLCs have strong degree of relationship between the two variables as the highest among them is only 13.8 %, i.e. between education diversity and ROE in non-GLCs. Further,

[]Table 3 Independent sample t-test

[]Variable

[]Mean difference GLCs Non-GLCs

[]t-stat

[]P-value

[]ROA 7.37 5.13 2.80 0.006 ROE 11.20 8.06 2.19 0.030 Note Grouping variable: (GLC assigned value of 1, non-GLC, assigned value of 2) *Significance at 0.10 level; **Significance at 0.05 level; ***Significance at 0.01 level

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[]Education diversity Total assets Firm industry ROA ROE Note *Significance

[]1

[]Total assets GLCs Non-GLCs

[]−0.026 0.015 1 1 −0.159 −0.056 −0.352** −0.060 −0.100 0.045 −0.092 0.091 −0.111 0.138 0.020 0.089 at 0.05 level; **Significance at 0.01 level

[]1

[]Education diversity GLCs Non-GLCs

[]Table 4 Pearson correlation test

[]1 −0.233* −0.292**

[]1 −0.184 −0.172

[]Firm industry GLCs Non-GLCs

[]1 0.678**

[]ROA GLCs

[]1 0.714**

[]Non-GLCs

[]1

[]ROE GLCs

[]1

[]Non-GLCs

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[]ROA and ROE in both group of companies (0.678 for GLCs and 0.714 for non-GLCs) show a good relationship among each other with highly significant positive correlation at 1 % level. The results also indicate that firm performance in both GLCs and non-GLCs can financially be measured effectively using the two types of variable. Next, final analysis was conducted using a multiple regression test. The result for this final test is to further justify the predicted hypotheses developed in this study. Tables 5 and 6 report the multiple regression analysis of both GLCs and non-GLCs. First of all, with respect to relationship with ROA variable, the R square of 25.8 %, df (9,89) = 3.436, P < 0.01 for GLCs in Table 5 and R square of 35.9, df (9.87) = 3.872, P < 0.000 for non-GLCs in Table 6. The results suggest that about a quarter of the ROA variation in GLCs while more than one-third of ROA variation in non-GLCs are explained by the independent and control variables used in the study. Whereas in respect to ROE variation in both group of companies, the results appear almost the same when the independent and control variables in GLCs and non-GLCs contributed only about 17 %. However, looking at the F-statistic value in ANOVA table, it can be concluded that the overall equation for both GLCs and non-GLCs are statistically significant at 1 % level for relationship towards ROA and 5 % level for relationship towards ROE. Next, looking at the unstandardized coefficient beta and significant p-value in Tables 5 and 6, only Log Size which representing firms’ total assets give significant impact towards dependent variable. Education diversity in both group of companies is not significant at all and in fact, provides contrast sign between the two groups towards ROA and ROE. Yet, only GLCs recorded a similar sign as what expected but not for non-GLCs. Hence, despite similar sign with the hypothesis developed in GLCs, the insignificant result still leads to the hypothesis being rejected; and so do the result for non-GLCs. The results could not support the expected greater Table 5 Regression results for Model 1: GLCs (N = 99) Variables

[]Unstandardized coefficient beta

[]ROA (t-stat)

[]Unstandardized coefficient beta

[]ROE (t-stat)

[](Constant) 15.52 2.26 15.39 1.40 Education −1.24 −0.28 −1.84 −0.23 diversity Log size (Total −1.73 −0.05** −1.06 −0.70 assets) Firm industry Included Included (Dummy) R square 25.8 % 17.2 % df: Regression 9 9 Residual 89 89 F-statistic 3.436 (0.001) 2.060 (0.042) (P-value) Notes * Significant at the 0.10 level; ** Significant at the 0.05 level; and *** Significant at the 0.01 level

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[]Table 6 Regression results for Model 2: non-GLCs (N = 97) Variables

[]Unstandardized coefficient beta

[]ROA (t-stat)

[]Unstandardized coefficient beta

[]ROE (t-stat)

[](Constant) −9.45 −1.94 −23.63 −2.23 Education 3.93 0.99 8.96 1.04 diversity Log size (Total 1.26 1.69* 3.26 2.01** assets) Firm industry Included Included (Dummy) R square 35.9 % 17.0 % df: Regression 9 9 Residual 87 87 F-statistic (P3.872 (0.000) 2.183 (0.030) value) Notes * Significant at the 0.10 level; ** Significant at the 0.05 level; and *** Significant at the 0.01 level

[]performance in GLCs too as compared to non-GLCs when there are more educated board of directors in the GLCs. This finding is quite similar to the study done by Baghat et al. (2010) which found no strong evidence of a relationship between education among CEO and firm’s performance. Moreover, the insignificant result may also conclude that it is not education that mainly helps the firm’s performance, but maybe due to other characteristics of the board such as disciplinary attitude and working experience.

[]5 Conclusion Based on the findings discussed in the previous section, the education diversity of board is found not to be significantly associated with the firm performance for both GLCs and non-GLCs, though the result demonstrates negative association as expected and hypothesized before. Again, the result also exhibits insignificant relationship between education diversity and the firm performance even after considering the effects of controlling factors, i.e. firm size and industry. This result is quite similar to the study done by Bhagat et al. (2010) when they found that no strong evidence of a linkage between directors (CEO) education and firm performance. The result of their study showed that the leadership of a CEO having an MBA degree from a top 20 business school enables a better operating performance, but the result is weak and probably, statistically insignificant. As a conclusion, the findings show that the education background of BODs do not play a significant role in determining the company’s performance both in ROA and ROE. In other words, the firms’ ROA and ROE may be influenced by other BOD characteristics or rather by factors other than BOD characteristics such as

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[]earning per share, dividend per share and price–earnings ratio that exposed to the market volatility which consequently influence the firms ROE (Chancharat et al. 2007). Angell and Brewer (2003), on the other hand, suggested that there are three factors which affect ROE, namely efficiency of asset use, relative operating profitability and use of financial leverage. As for overall conclusion, this study suggests that the homogeneity in board education is more preferable than heterogeneity with regard to the firm performance.

[]References Abidin, Z. Z., Kamal, N. M., & Jusoff, K. (2009). Board structure and corporate performance in Malaysia. International Journal of Economics and Finance, 1(1), 150–164. Anum Mohd Ghazali, N. (2010). Ownership structure, corporate governance and corporate performance in Malaysia. International Journal of Commerce and Management, 20(2), 109– 119. Angell, R. J., & Brewer, B. L. (2003). Improving the coverage of the dupont approach of financial analysis in finance courses through the use of the net leverage multiplier. Journal of Economics and Finance Education, 2(2), 1199–1207. Bhagat, S., Bolton, B. J., & Subramanian, A. (2010). CEO education, CEO turnover, and firm performance. Available at SSRN 1670219. Bathula, H. (2008). Board characteristics and firm performance: Evidence from New Zealand. PhD Thesis. Auckland University of Technology. Campbell, K., & Vera, A. M. (2008). Gender diversity in the boardroom and firm financial performance. Journal of Business Ethics, 83, 435–451. Carson, C. M., Mosley, D. C., & Boyar, S. L. (2004). Performance gains through diverse top management teams. Team Performance Management, 10, 121–126. Carter, D. A., D’Souza F., Simkins B. J., & Simpson W. G. (2007). The diversity of corporate board committees and financial performance. Working paper series. Available at SSRN: http:// ssrn.com/abstract=1106698 Chakravarty, V., & Ghee, C.S. (2012). Role of public sector in key Asian economies. Retrieved form http://www.theedgemalaysia.com/management/219718-role-of-public-sector-in-key-asian-economies.html. Date retrieved: 28/09/2014. Chancharat, S., Valadkhani, A., & Havie, C. (2007). The influence of international stock markets and macroeconomic variables on the Thai stock market. Applied Econometrics and International Development, 7(1). Dahlin, K. B., Weingart, L. R., & Hinds, P. J. (2005). Team diversity and information use. Academy of Management Journal, 48(6), 1107–1123. Ees, H. V., Postma, T. J., & Sterken, E. (2003). Board characteristics and corporate performance in the Netherlands. Eastern Economic Journal, 29(1), 41–58. Ehikioya, B. I. (2007). Corporate governance structure and firm performance in developing economies: Evidence from Nigeria. Corporate Governance, 9(3), 231–243. Hambrick, D. C., & Mason, P. A. (1984). Upper echelons: The organization as a reflection of its top managers. Academy of Management Review, 9(2), 193–206. Jung, T., & Ejermo, O. (2014). Demographic patterns and trends in patenting: Gender, age, and education of inventors. Technological Forecasting and Social Change, 86, 110–124. Kennon, J. (2011). The board of directors responsibility, role, and structure. Retrieved from http:// beginnersinvest.about.com/cs/a/aa2203a.htm

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[]Le, K. P., & Sundaramurthy, C. (2009). Human capital of the CEO and the corporate board of directors and IPO performance. Paper presented at the Financial Management Association in October 2009. Mahadeo, J. D., Soobaroyen, T., & Hanuman, V. O. (2012). Board composition and financial performance: Uncovering the effects of diversity in an emerging economy. Journal of Business Ethics, 105(3), 375–388. Malaysia Code on Corporate Governance. (n.d.) Retrieved from http://www.ecgi.org/codes/ documents/cg_code_malaysia_2007_en.pdf Marimuthu, M., & Kolandaisamy, I. (2009). Can demographic diversity in top management team contribute for greater financial performance? An empirical discussion. The Journal of International Social Research, 2(8), 273–286. Pohjanen, B., Bengtsson, D., & Smith, E. (2010). Return on diversity? A study on how diversity in board of directors and top management teams affects firm performance (Bachelor thesis). Kristianstad University College. Post, C., Rahman, N., & Rubow, E. (2011). Green governance, board of director composition and environmental corporate social responsibility. Business and Society, 50(1), 189–223. Radlach, P., Schlemmbach, K., & Smith, E. (2008). The board of directors and its influence on risk propensity and firm performance: An empirical study of their relations in the banking sector (Master Dissertation). Kristianstad University College. Zee, A. V. D., & Swagerman, D. (2009). Upper echelon theory and ethical behaviour: An illustration of the theory and a plea for its extension towards ethical behaviour. Journal of Business System, Governance and Ethics, 4(2), 27–43.

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[]Chapter 5

[]Computerised Accounting Information Systems and Firm Performance: The Mediating Role of Transparency Mohamad Azmi Nias Ahmad, Malcolm Smith, Zubaidah Ismail, Hadrian Djajadikerta and Mohd Saiyidi Mokhtar Mat Roni Abstract Accounting information system (AIS) is central to an organisation, providing valuable data for decision-makers. While many studies look into the impact of technology fit and corporate governance (CG) on firm performance, this study investigates how a component of CG (transparency), capability of AIS, executive visions (EV) and information technology (IT) skill impact on firm performance. Using a resource-based view (RBV) framework, hypothesised relationships among variables of interest were examined based on data collected from 336 small and medium-sized enterprises (SMEs) in Malaysia. Results from partial least square (PLS) analysis suggest that effects of AIS on firm performance were partially moderated by information transparency, a component of CG, while a full moderation effect was found for EV and IT skill on firm performance. The results thus demonstrate the importance of transparency and AIS to a greater height, prompting SMEs to revisit their policies on AIS, staff training and largely transparency to better improve firm performance.

[]M.A. Nias Ahmad (&) Faculty of Accountancy, Universiti Teknologi MARA (UiTM) Pahang, Bandar Pusat Jengka, Malaysia e-mail: [email protected] M. Smith School of Commerce, University of South Australia, Adelaide, Australia e-mail: [email protected] Z. Ismail H. Djajadikerta Faculty of Business and Law, Edith Cowan University, Joondalup, Western Australia, Australia e-mail: [email protected] H. Djajadikerta e-mail: [email protected] M.S.M.M. Roni Faculty of Accountancy, Universiti Teknologi MARA (UiTM) Melaka, lor Gajah, Malaysia e-mail: [email protected] © Springer Science+Business Media Singapore 2016 M.A. Abdullah et al. (eds.), Regional Conference on Science, Technology and Social Sciences (RCSTSS 2014), DOI 10.1007/978-981-10-1458-1_5

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[]Keywords Accounting information system (AIS) Partial least square (PLS) Resource-based view (RBV) Small and medium enterprises (SMEs)

[]1 Introduction Small and medium-sized enterprises (SMEs) have to deal with hundreds or even thousands of daily transactions and towards end of the month, financial statements need to be prepared. The information provided by the accounts is vital for decision-making and mandatory for tax purposes. The process of transforming data into meaningful financial reports could be cumbersome. A company that is proficient in managing this task can have an advantage over competitors in the same industry. Computerised accounting information system (CAIS) simplify day-to-day accounting tasks and provide timely financial information to the user (Barney 1991). Nowadays, many businesses use CAIS to assist accounts preparer in preparing monthly reports. CAIS range from smaller applications to larger applications. CAIS provide supports towards organisation’s business activities, such as support for the decision-making process and managerial functionfirms manage their resources; (Ismail and King 2006; Ussahawanitchakit and Yeunyong 2009). Blending advance information systems technology with traditional accounting principles, CAIS is able to create a complete functionally accurate and stable system, hence, provides quality information that meets user needs in a timely manner. Realising the potential of information technology (IT) to SMEs, the Malaysian government has spent millions of ringgit to upgrade its communications and multimedia infrastructure. Working under computer-based environment changes the way financial data are gathered, stored, managed and reported. In Malaysia, many studies have associated information system, accounting information system (AIS) and CAIS success with firm performance (Ahmad et al. 2013; Ismail and King 2006; Kharuddin et al. 2010). However, CAIS adaption and implementation seems to be a challenge to most SMEs. First, the top management is generally lacking expertise in strategic planning and vision in terms of considering CAIS investment worthiness. SME’s limited resources may hinder investment in advanced and the latest information system (Kharuddin et al. 2010). Cragg et al. (2002) suggested that small businesses need to have some kind of IT strategy in order to stay competitive. Second, the optimal utilisation of information system is still lacking among SMEs (Ismail and King 2005). CAIS capacity or capability as used by Ismail and King (2005), referred to the focus, quantification and time horizon of information. The essence of CAIS impacting firm performance sits within the context of the system’s fit (Abernethy and Guthrie 1994) and alignment (Ismail and King 2005) that creates a positive influence. Finally, SME employees’ IT skill (EITS) refer to skills relating to how competent employees perform tasks in AIS (Kahn 2007). The current generation has been exposed to IT since childhood and they have grown up

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[]in an environment of IT. However, lack of IT skills among employees may lead to SMEs’ being heavily reliant on vendors’ services that are costly. The next section of this paper discusses the theoretical background and conceptual framework in relation to existing literature. This is followed by an explanation of the research method used in this study, an assessment of goodness of measures, such as the construct validity, convergent validity, discriminant validity and reliability of the constructs, path analysis, hypotheses testing, discussion and finally conclusion.

[]2 Theoretical Background Many studies have used the resource-based view (RBV) theory to explain the relationship between IT and firm performance (Barney 1991; Bharadwaj 2000; Kim et al. 2011; Powell and Dent-Micallef 1997). The RBV is divided into three levels; capability, competence and skills (Cragg et al. 2011). Capability refers to how firms manage their resources; competence, refers to how well those resources are managed, and skills are associated with ranges of skills such as technical, managerial and general management skills. Based on the RBV theory Ahmad et al. (2013) developed and tested the model of the relationship between executive vision (EV), CAIS, EITS and firm performance. They map these three elements that impact firm performance such as EV at the business and strategic levels, CAIS capability at the organizational level and employee IT skills at the individual level. Findings from the study show that there are positive impacts of EV and CAIS on firm performance. However, EITS had no effect on firm performance for the firms sampled. The aim of this study is to examine the mediating effect of transparency on the relationship between EV, CAIS, EITS and firm performance as depicted in Fig. 1. According to Bushman and Smith (2003), transparency is the disclosure of information that is relevant, reliable, significant and easily understood by the user. Lack of transparency might result in mismanagement among the company’s top executive. Transparency has the potential to mitigate the information asymmetry problem. The disclosed information should be timely, consistent, comparable and clear so that good decision-making could be made. Executive vision

[]H2a

[]Transparency H2b H2c

[]CAIS capability

[]H1a H1b

[]Employee IT skill

[]H1c

[]Fig. 1 Conceptual framework

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[]3 Literature Review and Hypotheses Development Penrose introduced the RBV theory in her 1959 publication entitled ‘The theory of the growth of the firm’. She mentioned that most firms utilised a combination of various resources in order to operate successfully. Although later Rugman and Verbeke (2002) argue that ‘the key concepts, such as resources, competences, core competences, capabilities, and dynamic capabilities’, to remain ambiguous and controversial, many studies have adopted RBV because RBV is able to strategically identify resources that has characteristics of being ‘valuable, rare, imperfectly imitable, and non-substitutable’ in order to transform an organisation’s short-term competitive advantage into a sustained competitive advantage as long as it remain distinguishable from competitors (Barney 1991; Bharadwaj 2000; Kim et al. 2011; Powell and Dent-Micallef 1997). Several studies suggest that CAIS has a significant relationship between IT/IS/CAIS success and firm performance (Bharadwaj 2000; Kim et al. 2011). The attractiveness of CAIS among SMEs is due to its ability to fulfil the reporting needs although it is an expensive investment (Cragg et al. 2002). Cragg et al. (2002), believed that small businesses need to have some kind of IT strategy in order to stay competitive. Therefore, a suitable selection of accounting software by the top management is vital. However, some firm still makes ad hoc decisions on CAIS (Ismail and King 2005) but in a more recent study, it was reported that SMEs have made full use of the CAIS output and incorporated it into the organisation’s long-term plans (Al-Qudah 2011). The top management trust on the usefulness of IT/CAIS will translate into action plan towards achieving organizational goals (Teo and Ranganathan 2003; Ussahawanitchakit and Yeunyong 2009). Several studies demonstrate that EV is associated with firm performance (Athanassiou et al. 2002; Jayaraman et al. 2000; Lee and Peterson 2000). Therefore, the following hypothesis is developed: H1a: There is a positive relationship between EV and firm performance. The capability of CAIS to collect, classify and process raw transactions to produce financial reports in a timely and accurate manner will improve SMEs’ strategic decision-making. CAIS that aligned to organisational goals has a positive impact on firm performance (Ismail and King 2005). Therefore, the following hypothesis is proposed: H1b: There is a positive relationship between CAIS capability and firm performance. The maximisation of CAIS success can be achieved if the employee’s IT knowledge in performing the tasks is appropriate (Greenstein and McKee 2004; Kahn 2007). In contrast to this popular belief, however, Ahmad et al. (2013) found that EITS is not critical because CAIS has become more user-friendly and basic computing skill is sufficient to accomplish data entry process. Therefore, the following hypothesis is proposed:

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[]H1c: There is a positive relationship between EITS and firm performance. CAIS with a ‘good fit’ (Benford and Hunton 2000) and ‘highly praised’ corporate governance (CG) practices have led to good firm performance (Berggren and Bernshteyn 2007; Haat et al. 2008; Kim et al. 2010; Price et al. 2011). This study is not looking into the overall concept of CG, but only at transparency as a component of CG. Transparency is found to be affected by data currency, accuracy and relevance (Nicolaou 2010). Since, the extent to which transparency is influenced by CAIS and the technology supporting has not been examined, this study examines the mediating effect of transparency on EV, CAIS and EITS between firm performance. Therefore, the following hypothesis is proposed: H2a: Relationship between EV and firm performance is mediated by transparency, which improves firm performance. H2b: Relationship between CAIS and firm performance is mediated by transparency, which improves firm performance. H2c: Relationship between EITS and firm performance is mediated by transparency, which improves firm performance.

[]4 Research Methodology The study used a survey approach. The subjects were randomly selected from the Small and Medium Enterprise Corporation Malaysia (SME Corp) website. The survey instrument was pilot tested on 42 middle managers. Minor modifications were made based on several comments regarding how the questions were structured. The questionnaires were then sent to a sample of 1000 SMEs in Malaysia. Stratified random sampling has helped in reducing the variability of the samples and assured that every subgroup in the population is accounted for (Sekaran 2003; Tuckman 1994). Three main industries involved in this study are manufacturing, services and agriculture. A total of 414 questionnaires were returned after two follow ups. Nine were partially completed, 46 were returned unanswered, 23 were returned to sender due to wrong address. Hence, only 336 questionnaires are usable, which represents to a response rate of 33.6 %. A low response rate is expected in a mail survey (Dillman 2000; Steven et al. 2004). Nevertheless, this rate is considered high compared with other studies conducted in Malaysia (Ming-Ling 2008). The t-test was used to examine whether there is significant difference between the first twenty and the last twenty responses and it was found that at the 1 % significant level there is no evidence of non-response bias (Armstrong and Overton 1977; Ming-Ling 2008; Senatra 1980). The instrument has 55 items, which measure the dependent, mediating and independent variables. The dependent variable in this study is firm performance. This study emphasises the non-financial indicators of firm performance. Firm

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[]performance is measured by 8 items relating to firm’s efficiency and effectiveness, acceptance by the customers and quality of decisions. These items were adopted from Kim et al. (2011), Ravarini (2010), Ussahawanitchakit and Yeunyong (2009), Cragg et al. (2002) and Powell and Dent-Micallef (1997). Respondents were asked to indicate their belief about the effects of CAIS on the firm’s performance in the past two years. A five-point Likert scale is used. For the mediating variable, the transparency dimension of CG is particularly measured from Nicolaou’s (2010) 12 items. Independent variables consist of EV, CAIS capability and EITS. EV is measured by 5 items. Following Ussahawanitchakit and Yeunyong (2009), EV is measured in terms of its inspiring, optimising and belief in CAIS (both software and hardware). Respondents were asked to give their perception and responses on top management’s visions in providing adequate capital, human resource, IT/IS infrastructure, training and system security. For CAIS capability, the measure was adopted from Ismail and King’s (2005) 19 AIS capacity items. CAIS capability was measured with respect to precision of information, information content, adequacy of reports and provision of sufficient information. EITS, is measured by a 13 items scale that has four measurement factors (Chui et al. 2010). The four factors are IT perception, IT knowledge, IT operation and IT endeavour. Chui et al. (2010), based their 13 items scale on previous literature and performed a validity and reliability test. To test for mediation, the Sobel test is used (Kock 2014). This test determines the significance of mediation effects whether a mediator variable significantly carries the influence of an independent variable to a dependent variable (MacKinnon et al. 2002). Additionally, to determine whether the mediator is fully or partially mediated, a method suggested by Baron and Kenny (1986) is adopted. The gathered data were analyzed by SPSS 22.0 and WarpPLS program using appropriate statistical techniques.

[]5 Results Table 1 shows the results of the analysis. The Cronbach’s alpha range from 0.84 to 0.92 (above the recommended threshold of 0.70) thus showing evidence of internal consistency and reliability of the instrument used (Fornell and Larcker 1981; Nunnally 1978). In order to verify that the construct measurement is measuring what it should be measuring, both convergent validity and discriminant validity are examined. Loadings and cross loadings indicate that all items loading are higher than 0.5 (Hair 2006) except for one item for CAIS capability. The desired values for individual item loadings is 0.70 (Kock 2013). However, in certain cases, Gorsuch (1974) suggested a value of above 0.40 is still considered sufficient. Hence, the results have sufficient evidence that the items loaded are strongly associated with the construct measured.

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[]Table 1 Summary of reliability and validity of variables Construct

[]Number of items

[]Alpha

[]Loadings

[]CR

[]Executive vision 5 0.84 (0.75–0.82) 0.89 CAIS capability 17 0.92 (0.49–0.75) 0.93 Employee IT skills 13 0.92 (0.54–0.80) 0.93 Transparency 12 0.90 (0.60–0.76) 0.92 Firm performance 8 0.90 (0.73–0.82) 0.92 Alpha cronbach alpha, CR composite reliability, AVE average variance extracted

[]AVE 0.615 0.439 0.514 0.475 0.592

[]The composite reliabilities range from 0.89 to 0.93 which is above the recommended 0.70 cut-off point (Fornell and Larcker 1981). Next, the average variances extracted (AVE) range between 0.439 and 0.615. It should be greater than 0.50 to indicate that at least 50 % of the measurement variance is captured by the latent variable and to justify using a construct (Bagozzi 1988; Barclay et al. 1995). There are two constructs having values less than 0.50; CAIS capability and Transparency, with a value of 0.439 and 0.475, respectively. According to (Fornell and Larcker 1981), AVE of less than 0.5 is considered adequate on condition that the composite reliability is higher than 0.6, in all the measurement model; thus it has high reliability and convergent validity. The discriminant validity is assessed by adapting Fornell and Larcker’s (1981) work in testing of shared variance between items. The items of each construct should be greater than the variance shared with other constructs. As shown in Table 2, adequate discriminant validity is evident where the squared correlation for each construct is less than the AVE by the indicators measuring the construct. According to Bryman and Cramer (1990, p. 246) “the aim of path analysis is to provide quantitative estimates of the causal connections between sets of variables”. The results, in Table 3, indicate support for H1b, in which CAIS affects performance positively and H1a and H1c are rejected showing that EV and EITS have no effect. The results show that the relationship between EV, CAIS and EITS are mediated by transparency. Hence H2(a), (b) and (c) are supported (Table 4). Table 2 Correlations and discriminant validity Variable

[]EV

[]CAIS

[]Transp

[]FirmPerf

[]EIT

[]EV 0.784 CAIS 0.429* 0.662 Transp 0.475* 0.513* 0.689 FirmPerf 0.377* 0.530* 0.633* 0.77 EIT 0.445* 0.494* 0.456* 0.323* 0.717 Square roots of AVE’s shown on diagonal while the other entries represent the squared correlations; * indicates p < 0.001

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[]Table 3 Summary of reliability and validity of variables Path coefficient b

[]p value

[]Executive vision

[]!

[]Firm performance

[]0.022

[]0.323

[]CAIS capability

[]!

[]Firm performance

[]0.284

[]> > > > >

[]0 1 2 3 4 5

[]Eigen value

[]Trace statistic

[]Max-Eigen statistic

[]0.534739 0.793908 0.63759 0.353262 0.073398 0.060652

[]54.72302 88.73266 44.50859 16.08921 3.886409 1.751947

[]28.31079 44.22407 28.41938 12.2028 2.134462 1.751947

[]5% Critical value (trace)

[]5% Critical value (max-Eigen)

[]Results

[]47.85613 69.81889 47.85613 29.79707 15.49471 3.841466

[]27.58434 33.87687 27.58434 21.13162 14.2646 3.841466

[]Trace test indicate 1 cointegrating equation at the 5 % level and max eigenvalue test indicate 2 cointegrating equations at the 5 % level

[]Notes r indicates the number of cointegrating vectors Critical values are taken from Johansen and Julius (1990)

[]Table 4 Cointegration equation LnFDI =

[]28.83639

[]+ 0.58543 LnGDP

[](1.03228) Notes Standard error is in parentheses

[]− 0.51257 IR

[]− 0.851677 ER

[]− 2.619 LnAWR (2)

[](0.07471)

[](0.28664)

[](1.88888)

[]traded commodities in countries with undervalued currencies and to purchase foreign production capacity with overvalued foreign exchange (Daniels 1975). Finally, average wage is rate also shows negative impact on FDI level. This is parallel to the findings by Cunningham and Samy (2005). Thus, this study can conclude that lower average wage entices foreign inward capital. Lower labour cost is an incentive for foreign firms to locate production in order to minimize cost and maintain competitiveness. Firms seek to escape higher labour cost in their home countries and are positioned to locate in places with lower labour cost. Our findings confirm the earlier economic analysis with respects to the GDP at home country, exchange rate and levels of interest rate and labour costs.

[]4.3

[]Diagnostic Checking for Cointegration Test

[]In this analysis, the White Hetroskedasticity test has been used to test the presence of heteroskedasticity. It is clear that this study reject the hypothesis of heteroskedasticity. Therefore, this study can assume that the analysis has fulfilled the assumptions of heteroskedasticity. The most famous and well-known method to

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[]Table 5 Cointegration test Normality test

[]Autocorrelation test

[]Heteroskedasticity test

[]3.104384 0.353459 1.547193 [0.211783] [0.705849] [0.198069] Notes Figure in table and [] denote t-statistical value and probability value ** and *** denotes significance at 5 and 1 % level, respectively

[]Stability test 0.513683 [0.604718]

[]the presence of autocorrelation is the Breusch–Godfrey serial correlation LM test, which have been extensively used (Table 5). This study rejects the null hypothesis of autocorrelation. Therefore, from the results and arguments this study can assume that autocorrelations is not a problem in this analysis. The Jarque and Berastatistic could not reject the hypothesis that the residuals of the estimated equation originate from a normal distribution. The Ramsey RESET test reveals that the true specification is linear the equation passes the Ramsey Reset test.

[]5 Conclusion This study was trying to identify and understand various locational determinants that influence the inward capital flows to Malaysia during the periods of 1980– 2010. Based on the study had been done; it is proved that there are clear connections between the variables. From the empirical results obtained there is an evidence which is subsequently supported by earlier economic analysis that factors like home country’s GDP, exchange rate are important variables that are significant and positively impact the inward flow foreign capital to a country. This finding confirms the earlier theory developed by Wilhelms (1991). The finding also confirms that the labour cost and interest rates were significantly negatively related to the amounts of FDI into Malaysia. This indicates that there is indeed some cost or visibility advantage for developed countries to locate operations in Malaysia. Given the fact that FDI from a country to another countries are attracted to different polices of the host governments, the host governments should formulate their policies accordingly like signing investment agreements with more developed countries in aiming the attraction of FDI from the developed countries and they also should concentrate on policies like fiscal incentives to attract FDI from developing countries. Developing countries should concentrate on country-specific factors to formulate such policies. The impact of incentives on inward FDI flows is expected to be positive. But it is interesting to see whether FDI from developing countries and from developed countries respond in a similar way to the investment incentives offered to the foreign firms in the developing countries. In this section this study looks into the limitations of this study. This study only investigates for the determinants of FDI inflows to Malaysia and it is done without comparing with other countries, especially in developing world. This study will be

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[]more knowledge enhancing if it is done in the context of comparing the determinants of FDI with other countries. The data used in this study are annual data because it is quite difficult to get the quarterly data. It would be excellent to use the quarterly data so that it will provide better results. This study also employs only four variables in addition to other numerous factors that could influence the flows of FDI into Malaysia.

[]References Agrawal, J. A. (1980). Determinants of foreign direct investment: A survey. WeltwirtschaftichesArchieve, 116(4), 739–773. Aliber, R. Z. (1970). A theory of foreign direct investment In C. Kindleberger (Eds.), The international corporation. Cambridge, Mass: MIT Press. Anh, L. V. (2004). Locational determinants of foreign direct investment: The case of Vietnam. Mimeo: Graduate School of International Development, Nagoya University. Cunningham, R., & Samy, Y. (2005). Determinants of foreign direct investment: Evidence from the semiconductor industry. Canada. Retrieved May 29, 2008 from http://economics.ca/2005/ papers/0256.pdf Daniels, D. L. (1975). FDI and economic restructuring. Economica, 40–72. Dunning, J. H. (1983). The electric paradigm of international business: A restatement and some possible extensions. Journal of International Business Studies, 19, 1–13. El-Wassal, K. A. (2012). Foreign direct investment and economic growth in Arab countries (1970– 2008): An inquiry into determinants of growth benefits. Journal of Economic Development, 37 (4), 79–100. Gross, J. D., & Goldberg, H. (1995). Locational factors of FDI. New Jersey, United States: Prentice-Hall. Hermsey, G. H., & Cliff, T. F. (1984). Foreign direct investment in the United States. New York: Preston. Hussain, F., & Kimuli, C. K. (2012). Determinants of foreign direct investment flows to developing countries. State Bank of Pakistan Research Bulletin, 8(1), 13–31. Johansen, S. & Juselius, K. (1990). Maximum likelihood estimation and inference on cointegration with applications to the demand for money. Oxford Bulletin of Economics and Statistics,52(2), 169–210. Oladipo, O. S. (2010). Foreign direct investment (FDI): Determinants and growth effects in a small open economy. The International Journal of Business and Finance Research, 4(4), 75–88. Piteli, E. E. N. (2010). Determinants of foreign direct investment in developed economies: A comparison between European and non-European countries. Journal of Contributions to Political Economy, 29, 111–128. Sahoo, P. (2006). Foreign direct investment in South Asia: Policy, trends, impact and determinants. ADB Institute. Discussion paper no. 56. Retrieved January 29, 2009 from http://www.econstor.eu/handle/10419/53445 Sharma, K., & Bandara, Y. (2010). Trends, patterns and determinants of Australian foreign direct investment. Journal of Economic Issues, 14(3), 661–676. Wilhelms, S. K. (1991). The FDI fitness theory. London: Prentice-Hall.

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[]Chapter 15

[]Website Quality as a Determinant of E-government User Satisfaction Level Mas Anom Abdul Rashid, Mohd Noor Azman Othman and Mohd Zainuddin Othman

[]Abstract Malaysia in its New Economic Model 2010 has put government public service delivery as the second pillar to upgrade the quality of lives of Malaysians. This has made the quest to improve government public service delivery an important agenda for the government. Successful delivery of online services has rapidly become an important measure of effective public sector management and this has made many governments deploy electronic government (e-government) as a tool to achieve this vision. This study was carried out in an attempt to determine the extent of the state e-government online service user satisfaction involving 440 respondents from the District and Land Office in the state of Pahang. With the total return rate of 73 % the findings indicated that the state e-government user satisfaction level was low. Website quality was found to have a significant role in determining the user satisfaction level. It was found that only two out of four constructs under website quality influenced user satisfaction. They were website content and website usability. The other two were website reliability and website credibility which did not have any influence on the user satisfaction.

[]Keywords E-government Website quality Website content Website usability User satisfaction

[]M.A.A. Rashid (&) Faculty of Business Management, Universiti Teknologi MARA Pahang, 26400 Bandar Tun Razak Jengka, Pahang, Malaysia e-mail: [email protected] M.N.A. Othman Academy of Language Studies, Universiti Teknologi MARA Pahang, 26400 Bandar Tun Razak Jengka, Pahang, Malaysia e-mail: [email protected] M.Z. Othman Faculty of Technology Management and Logistic, Universiti Utara Malaysia, 06010 Sintok, Kedah, Malaysia e-mail: [email protected] © Springer Science+Business Media Singapore 2016 M.A. Abdullah et al. (eds.), Regional Conference on Science, Technology and Social Sciences (RCSTSS 2014), DOI 10.1007/978-981-10-1458-1_15

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[]1 Introduction Today, the Internet has become the essential channel used for information and services dissemination. There are countless benefits in transforming traditional government into e-government, i.e. cost-effective service delivery, integration of services, reduction in service time and faster adoption to meet clients’ needs (Karusena and Deng 2012). The broad-based views emphasize e-government as the effort taken in transforming government and the governance. It is the outcome of Information Technology’s (IT) power and capabilities to deliver services provided by the government at local, municipal, state and national levels. E-government definition ranges from narrowly focused to broader ones whereby the narrowly focused definition stresses on using ICT tools particularly the internet to delivery more efficient and effective government services. Early conceptions of e-government had largely focused on electronic service delivery as the key feature of the phenomenon (Grant and Chau 2006). E-government offers additional channels of interaction among governments, businesses and citizens separately or collectively. For example, individual citizens may interact with the government electronically by filing the income tax documents online or pay for land taxes online. In service delivery, government may do so directly or indirectly through intermediaries such as banks, postal outlets in private businesses, or by other means. This makes e-government more complex as it involves other parties apart from the government bodies themselves, such as the banks and the income tax and revenue office. Hence, any e-government effort must meet the needs of a diverse set of users who come from diverse background. This issue suggests that e-government is not only a technological phenomenon but also logistical issues as it consists of a more diverse aspect which needs to be looked into. In developing countries, it is found that the local governments in particular are the main point of contact for delivery of services and national programmes (Amis 2001). This certainly requires ICT application in pursuit of national development goals of e-government. Those with the best ICT implementation will be more successful and achieve faster economic growth (Jensen 2002; Rouvinen and Maliranta 2003). New possibilities offered by ICT gives the government chances to rethink ways of working and providing services to the public (Bekkers and Homburg 2007; Heeks 2003; Prins 2001 cited in Verdegem and Verleye 2009). Thus, many countries have formulated various policies, visions, objectives, plans and strategies for e-government, unfortunately, a large proportion of these initiatives did not succeed in achieving the promised goals in their implementations. It is found that the two main challenges faced by the government today are the importance of fulfilling the new needs and expectations of the citizens (Bertot and Jaeger 2008) and the needs to provide greater satisfaction with higher efficiency to the public through the new service delivery.

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[]The characteristics of the new generation, i.e. Gen Y have also contributed to the crucial needs to transform public service delivery method parallel to the technological advancement in the government administration. Since NEM (2010) stated that Malaysian government is serious in putting the people (rakyat) first and trying its best to transform its public service (Malaysia NEM Report 2010) therefore, the government must make sure that all the state governments uphold the policy in providing the necessary quality of public service. E-government is an expending set of tools and administrative policies that governments all over the world have adopted to improve the quality of their service delivery to their clients (i.e. citizens/enterprises) while reducing the costs (Fernandez and Rainey 2006). E-government sought mainly the intensive usage of Internet and associated advances in information and telecommunication technologies. In Malaysia e-government is gaining popularity as the mobile technology is more advanced and transactions with the government are at the fingertips. However, with good Internet connection, e-government service should be complemented by good websites. Perhaps the most important element in ensuring user satisfaction on e-government services is the websites. Among the characteristics of a good websites are: Content: The public regards the information posted on the website as true and reliable. Therefore the content provided on the website has to be of quality and truth worthy in building the users’ trust and confident. Time and effort should be given priority in creating high-quality content in making sure repeated visit to the website from the users. Design: A good website is simple and attractive in design. The website should be designed to help deliver the message to the users and not to distract the users from it with complex and complicate presentation of the content itself. Navigation: This is probably the main characteristic as users must be able to surf the website with ease. This including the time taken to retrieve information from the website. If users find it difficult to surf the website tendency to lose the visitor is great. A good rule of thumb is that every page should be accessible in two clicks from your home page (Vandelayudesign 2007). Fresh/Up-to-date: A good website must always be fresh. This will make the visitor to keep visiting the website and become a loyal visitor. This can be done by occasionally updating and adding new content to the website. However, it was reported in the www.digitalgov.gov/2014 that the winning e-government websites have the followings characteristics, i.e. simple—not complicated by so many unnecessary topics added on the websites, content—grouping content according to interest, ease—easy to use images instead of icons and accessibility. According to Sorum et al. (2013) information quality is also an utmost important and seen as a driver in influencing users to return to a website. The finding reveals that usability is an important dimension of a broader concept of website quality. These findings supported Mas Anom and Mohd Noor (2010) that perceived

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[]usefulness, perceived ease of use, perceived quality of a website as well as perceived user trust do affect citizen adoption of e-government. The websites characteristics and extent of features offered on the website described the stages of the e-government maturity.

[]1.1

[]The Maturity Model as E-government Yardstick

[]The maturity of e-government in a country is defined by the level to which a government has developed an online presence (Accenture 2004). This concept reflects demonstrated behaviour as opposed to UN’s e-government e-Readiness index using a web measure index, a telecommunication infrastructure index and the human capital index (UN-DESA 2004) which assesses the potential of a country implementation or achievement of e-government. This model is used to imply a continuum of developmental stages with some having progressed further than others. This includes the deployment of more advanced features on the websites and enabling citizens to carry out a larger portion of their interactions with their governments online, i.e. to change their addresses, register to vote or apply for a job or new business. Therefore, government’s websites which incorporate advanced functionality and provide more coverage for more services are considered to be leaders among their peers and are recognized as having better services to offer to the citizens. In addition, this also demands efficiency and cross-functional integration in the internal operation of government agencies without which many services cannot be delivered online (Singh et al. 2004). As a result, e-government system requires enhanced levels of ICT access so that citizens are more likely to conduct their official transaction online. When this happens, governments have to move on to become more efficient and effective in their online transactions, hence, lessening face-to-face counter services. Among the maturity models is the United Nation and the American Society for Public Administration (UN-ASPA 2002). The model is based on Layne and Lee’s model (2001) which consists of five stages. They are: (i) Emerging—a single or a few independent government websites provide formal but limited and static information; (ii) Enhanced—government websites provide dynamic, specialized and regularly updated information; (iii) Interactive—government websites act as a portal to connect users and service providers, and the interaction takes place at a more sophisticated level; (iv) Transactional—users have the capability to conduct complete and secured transactions, such as renewing visas, obtaining passports and updating birth and death records through a single government web site; and (v) Seamless or fully integrated—governments utilize a single and universal website to provide a one-stop portal in which users can immediately and conveniently access all kinds of available services.

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[]This model is used by governments as a yardstick to measure the level of e-government achievement or success (Mas Anom 2012). Some e-government in certain countries may not even achieve the later stages of this maturity model as the services provided are not up to the level characterized in the later stages of e-government maturity, i.e. the transactional or fully integrated. This is because the website offered very limited services and not fully transactional whereby users are unable to conduct complete and secured transactions online.

[]1.2

[]Pahang Multimedia Super Corridor (MSC) Objectives

[]Pahang state government aimed to achieve the following objectives in their effort to provide the best public service as mentioned in the NEM (2010). One of Pahang e-government efforts is the introduction of the MSC Malaysia Pahang Initiative as part of the MSC Malaysia national rollout plan which aims to spread MSC Malaysia benefits and value propositions nationwide. It also aims to reach out both industry and the community at large. With Pahang joining the MSC Malaysia family, it is envisaged that the rakyat in Pahang will embrace and benefit from ICT in their daily lives. MSC Pahang’s strategic objectives include: (i) to enhance effectiveness of impacts of socioeconomic programmes, primarily for rural areas through vast applications of ICT and multimedia solutions; (ii) to boost access to information at rates affordable to the citizens through development of alternatives high speed broadband infrastructure and integrated solutions and to position Pahang to be developed as a regional data exchange hub; (iii) to increase productivity and step up value chain of existing traditional sectors, especially as ECER drivers, as well as to improve efficiency of public services delivery by fast tracking ICT enablement and adoption; (iv) to create entrepreneurship opportunities with structured financial and non-financial supports for the local (rakyat) to engage in the new economic activities competitively (MSC Pahang 2010). With the introduction of the MSC Pahang, it is crucial for the state of Pahang to measure its current stage of e-government as an effort to uphold the strategic objectives of the state government. The challenge that the state government as the sole e-government provider is facing now is that it ensure it can provide good online services to the citizens as the funds put on this project would not achieve the needed target yield of profitable return. Pahang is putting efforts to transform all state government websites in a 5-star status website. The websites must have a new face lift and should be more user-friendly. Their main aim is to be able to offer accurate information, correct spelling as well as constantly and continuously updated information (Sinar Harian, Mac 2010).

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[]Objectives of the Study

[]This study is aimed to identify the level of e-government user satisfaction and determine which of the website quality factor influences the satisfaction level of the citizen in the state of Pahang.

[]2 Methodology This study is classified as an empirical study of e-government websites at the state level of Pahang as it measures the e-government maturity level, the type and extent of the online services offered by the websites, infrastructure and website quality. The website quality in this study is the factors which will determine the user satisfaction level, whereby website quality has included website content, accessibility, usability, credibility and reliability as its constructs. In addition, the samples of the study are limited to the administrative employees of all the District and Land Offices in Pahang where they are also being regarded as the users of the state e-government websites. A total of 440 questionnaires were distributed to the government administrative staff at eleven (11) districts in Pahang. From that a total of 332 questionnaires were returned which made the return rate at 75 %. A stepwise regression method of analysis is used to achieve the aim of this study.

[]3 Data Analysis 3.1

[]Demographic of Respondents

[]Table 1 shows the demographic factors of the respondents involved in this study. Table 1 illustrated the percentage of gender, age, education background, the level of position held and the district where they were from. The majority of the respondents were between the ages of 31–35 years old (30.4 %) and the majority of them were female (60.5 %). A majority of them with 82.6 % were the supporting staff and out of that 44.3 % possessed SPM and 10.2 % respondents were from the middle management or professional level. The respondents came from all 11 districts of Pahang and the majority of them with 13.3 % were from Temerloh.

[]3.2

[]Reliability Test

[]A reliability test was conducted on variables such as website accessibility, content, usability, credibility and reliability. Table 2 shows the results of the analysis.

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[]Table 1 Profile of respondents Category

[]Elements

[]Number

[]Percentage

[]Gender

[]Male Female Below 20 years old 21–25 years old 26–30 years old 31–35 years old 36–40 years old 41–45 years old 46–50 years old 51–55 years old 56 years old and above PMR SPM STPM Diploma Degree Masters degree PhD Others Top management Professional/middle management Supporting Others Bentong Bera Cameron Highlands Jerantut Kuala Lipis Kuantan Maran Pekan Raub Rompin Temerloh

[]130 202

[]39.2 60.5

[]6 90 101 41 25 22 32 12 3 147 44 87 25 1 – 5 6 34 292 – 30 29 23 29 23 32 39 26 28 33 40

[]1.8 27.1 30.4 12.3 7.5 6.6 9.6 3.6 0.9 44.3 15.1 26.2 7.5 0.3 – 1.5 1.8 10.2 88.0

[]Age

[]Education

[]Position

[]District

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[]9.0 8.7 6.9 8.9 6.9 9.6 11.7 8.0 8.4 9.9 13.3

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[]Table 2 Reliability analysis

[]Variables

[]Cronbach alpha values

[]Website content Website accessibility Website usability Website credibility Website reliability User satisfaction

[]0.852 0.731 0.750 0.802 0.842 0.752

[]From Table 2 all the variables have an alpha value of more than .70 thus indicating high reliability.

[]3.3

[]Pahang State E-government User Satisfaction Level

[]Table 3 shows the outcome from the analysis conducted using SPSS. Table 3 shows the descriptive analysis of the state e-government user satisfaction level. The table shows the mean ranking of 3.71 which indicates users are satisfied with the website. This matter was further explored where user satisfaction level was compared to the state e-government website quality construct which made up of website access, content, usability, credibility and reliability. Table 4 shows that the p-value for all the dimensions (i.e. website accessibility, content, usability, reliability and credibility) and user satisfaction were found to be at 0.000 which was less than the test value of 2.5. Therefore, it is evidence that users of e-government found all the variables were at their low satisfaction level. A correlation analysis was further conducted as an outcome of the above finding. The findings of the correlation analysis between e-government website quality and user satisfaction level is shown in Table 5. Based on the result shown in Table 5, it was found that there was a significant positive correlation between website quality and user satisfaction of the state e-government service, however, it was only at a moderate level as the p-value was 0.523.

[]Table 3 Descriptive analysis on the user satisfaction level Descriptive statistics MEAN_SATISFACTION Valid N (listwise)

[]N

[]Minimum

[]Maximum

[]Mean

[]Std. deviation

[]323 323

[]2.33

[]12.67

[]3.7141

[]0.80746

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[]Table 4 Shows the result of the one-sample t-test conducted One-sample t-test Test value = 2.5 t df

[]Sig. (2-tailed)

[]Mean difference

[]95 % confidence interval of the difference Lower Upper

[]meanSATISFACTION 56.692 331 0.000 1.37892 1.3311 1.4268 meanaccess 11.981 331 0.000 0.65060 0.5438 0.7574 meancontent 38.361 331 0.000 1.16165 1.1021 1.2212 meanusability 47.444 331 0.000 1.32907 1.2740 1.3842 meanrealible 59.438 331 0.000 1.80542 1.7457 1.8652 meancredible 36.121 331 0.000 1.14985 1.0872 1.2125 The level of website quality and users satisfaction with regards to Pahang state e-government online service

[]Table 5 Correlations analysis between web quality and user satisfaction Correlations Web quality WEBQUALITY

[]Pearson correlation 1 Sig. (2-tailed) N 237 SATISFACTION Pearson correlation 0.523** Sig. (2-tailed) 0.000 N 229 **Correlation is significant at the 0.01 level (2-tailed)

[]3.4

[]MEAN_SATISFACTION 0.523** 0.000 229 1 323

[]Website Quality Characteristics Influencing the User Satisfaction Level

[]In an effort to further explore the relationship between website quality in determining the level of e-government user satisfaction, a multiple regression analysis was conducted to identify which construct has a stronger relationship to user satisfaction. Table 6 shows that the variables together explain 38 % of the variance (R Square) was significant to the user satisfaction of e-government in the state of Pahang. This was further supported by the F-value of 27.47 shown in Table 7. An examination on the t-values indicates that website content, accessibility, usability and credibility contributed to the prediction of the user satisfaction level of the e-government service in the state of Pahang. Website reliability on the other hand does not predict or influence the level of user satisfaction of the state e-government service. This is stated from the data analysis outcome shown in Table 8.

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[]Table 6 User satisfaction of e-government Model summaryb Model R

[]R Square

[]Adjusted R square

[]Std. error of the estimate

[]1 0.617a 0.381 0.367 0.69912 a Predictors: (Constant), MEAN_RELIABILITY, MEAN_USABILITY, MEAN_ACCESSIBILITY, MEAN_CREDIBILITY, MEAN_CONTENT b Dependent variable: MEAN_SATISFACTION

[]Table 7 F-value ANOVAa Model

[]Sum of squares

[]df

[]Mean square

[]F

[]Sig.

[]Regression 67.120 5 13.424 27.465 0.000b Residual 108.996 223 0.489 Total 176.115 228 a Dependent variable: MEAN_SATISFACTION b Predictors: (Constant), MEAN_RELIABILITY, MEAN_USABILITY, MEAN_ACCESSIBILITY, MEAN_CREDIBILITY, MEAN_CONTENT 1

[]Table 8 Coefficients analysis Coefficientsa Model

[]Unstandardized coefficients B Std. error

[](Constant) 0.861 0.283 MEAN_CONTENT 0.287 0.130 MEAN_ACCESSIBILITY 0.329 0.121 MEAN_USABILITY −0.115 0.045 MEAN_CREDIBILITY 0.229 0.112 MEAN_RELIABILITY 0.002 0.125 a Dependent Variable: MEAN_SATISFACTION

[]Standardized coefficients Beta

[]1

[]0.236 0.286 −0.146 0.190 0.002

[]T

[]Sig.

[]3.039 2.202 2.715 −2.542 2.043 0.015

[]0.003 0.029 0.007 0.012 0.042 0.988

[]Based on Table 8, it was found that the t-values indicate that all the website characteristics, i.e. content, accessibility, usability and credibility contributes to the prediction of user satisfaction in the state of Pahang. However, the reliability of the website does not contribute to the user satisfaction level.

[]4 Conclusion Based on the above findings it can be concluded that in order to ensure the level of e-government user satisfaction, the provider of the service should focus on the website content, accessibility, usability and credibility. The website content is

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[]crucial to the users as this is the main reason users visit the website. The information as the main content of the website should be of interest to the users. In addition, the usability of the website is also important as the information uploaded must be significant and usable to the users. The website accessibility has to be 24/7, easy and smooth for user to access information and services. Users do not have to visit the government offices personally thus, saving time, cost and energy. There will be no more long waiting time to get the information required. In relation to website credibility, the information uploaded should be constantly up-to-date. This is to ensure users get fresh and current information to proceed with their own daily activities for business purposes or for personal reasons. These findings are crucial evidence which supports the literature review from previous studies and an insight into Malaysia e-government. As a recommendation, it is suggested that periodical website quality studies should be carried out on the state e-government provider to ensure efficient and effective information dissemination to citizens. This will also uphold the second pillar of the New Economic Policy (2010) introduced by the government as well as to serve the public as the main public service provider.

[]References Amis, D. (2001). Digital rights management revisite. Digitital Rights Management Overview by Austin Russ, Security Essentials. V.1. 2.e. July 2001. SANS Internationals. Accenture. (2004). E-government leadership: High performance. Maximum value. New York. Bekker, V., & Homburg, V. (2007). The myths of e-government: Looking beyond the assumptions of a new and better government. The Information Society, 23(5), 373–382. Bertot, J. C., & Jaeger, P. T. (2008). The e-government paradox: Better customer service doesn’t necessarily cost less. Government Information Quarterly, 25(2), 149–154. Fernandez, S., & Rainey, H. G. (2006). Managing successful organizational change in the public sector: An agenda for research and practice. Public Administration Review, 66(2), 168–176. Grant, G., & Chau, D. (2006). Developing a generic framework for e-government. Advanced Topic in Global Information Management, 5, 102–127. Heeks, R. (2003). Building e-governance for development: A framework for national and donor action (Homepage of Institute for development policy and management), (Online). Retrieved 1 January 2008 from http://idpm.man.ac.uk/publications/wp/igov/igov_wp12.pdf. 18 February 2004. Jensen, M. (2002). Information and communication technologies (ICTs) as tools for improving local governance in Africa, UNESCO, Paris. Retrieved 29 June 2006 from http://www.portal. unesco.org/ Karunasena, K., & Deng, H. (2012). Critical factors for evaluating the public value of e-government in Sri Lanka. Government Information Quarterly, 29(1), 76–84. Layne, K., & Lee, J. W. (2001). Develolping fully functional e-government: A four stage model. Government Information Quarterly, 18(2), 122–136. Mas Anom. (2012). Electronic government maturity stage, user’s adoption and user satisfaction level. Unpublished Phd thesis. MSC Pahang (2010). http://www.mscpahang.my. Accessed 13 January 2010. NEM. (2010). http://www.thestar.com.my/news/story.asp?file=/2010/3/…/20100330095105

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[]New Economic Policy (2010). http://www.thestar.com.my/news/story.asp?file. Accessed 1 March 2010. Prins, C. (2001). Electronic government. Variations on a conept in J.E.J. Designing e-government (pp. 1–5). Netherlands: Kluwer Law International. Rashid, M. A. A.. & Othman, M.N.A (2010) Egovernment matiruty stage. Gading, 14. June 2010. Rouvinen, P., & Maliranta, M. (2003). Productivity effects of ICT in Finnish Business, Discussion paper no. 852. In Atkinson, R. D. (2007). Boosting European prosperity through the widespread use of ICT. The information Technology and Innovation Foundation. Singh, H., Das, A., & Joseph, D. (2004). Country-level determinants of e-government maturity. Sinar, H. (2010). Lamanweb capai status lima bintang. Kuantan, Mac. 2010. Sorum, H., Andersen, K. N., & Clemensen, T. (2013). Website quality in government. Exploring the webmasters perception and explanation of website quality. Transforming government: People, process and policy (Vol. 7, No. 3, pp. 322–341). Emerald Group Publishing Limited. UN-DESA. (2004). Cited in the global e-government survey 2004. UN/ASPA. (2002). Benchmarking e-government: A global perspective. United Nations Division of Public Economics and Public Administration and the American Society for Public Administration. New York. Vandelayudesign. (2007). Characteristics of a good website. http://vandelaydesign.com/characteristicsof-a-good-website/ Verdegem, P., & Verleye, G. (2009). User-centered e-government in practice: A comprehensive model for measuring user satisfaction. Government Information Quarterly, 26, 487–497. www.digitalgov.gov/2014. Accessed on June 22, 2015.

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[]Chapter 16

[]Fraudulent Short Messaging Services (SMS): Avoidance and Deterrence Norulhuda Tajuddin, Mohamad Ridhuan Mat Dangi and Sharifah Zannierah Syed Marzuki

[]Abstract The crime of Fraudulent Short Messaging Services (SMS) cases has been increasing and it was reported that it caused million losses among users worldwide. Unfortunately, some victims are not aware of these malpractices because they considered SMS as “reliable” because great prizes were offered from well-known companies. Awareness campaign could be one of the alternatives to increase the level of knowledge among SMS users; however, it is not adequate for handling the issue. Therefore, this study is conducted with the objectives to investigate the avoidance and prevention strategies for combating the SMS fraud. Two hundred and ninety one sets of questionnaire were analyzed using mean analysis. The results show that avoidance and prevention actions must involve both actions taken by individuals and related authorities. In order to avoid fraud SMS, users are encouraged to be more aware and cautious about their surroundings. Meanwhile, for prevention strategies it is suggested that government should play more active role to curb the crime and users also need to gather knowledge and self awareness on this issue. Keywords Avoidance egy SMS fraud

[]Fraudulent short messaging services Prevention strat-

[]N. Tajuddin (&) Faculty of Business Management, Universiti Teknologi MARA Pahang, 26400 Bandar Tun Razak Jengka, Pahang, Malaysia e-mail: [email protected] M.R. Mat Dangi Faculty of Accountancy, Universiti Teknologi MARA, 40450 Shah Alam, Selangor, Malaysia e-mail: [email protected] S.Z. Syed Marzuki Malaysian Academy of SME & Entrepreneurship Development (MASMED), Universiti Teknologi MARA, 40450 Shah Alam, Selangor, Malaysia e-mail: [email protected] © Springer Science+Business Media Singapore 2016 M.A. Abdullah et al. (eds.), Regional Conference on Science, Technology and Social Sciences (RCSTSS 2014), DOI 10.1007/978-981-10-1458-1_16

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[]1 Introduction The Short Messaging Services (SMS) is one of the fastest growing communications worldwide and the number of messages sent surpasses the phone call (Ceccucci et al. 2010). With the proliferation of advanced mobile phones and other mobile devices with variant communication services has also made the messaging service become more fun and enjoyable. It also indicates that widespread phone use coincides with increasingly a wider SMS usage either in local or global trend. According to Kearney (2013), there are 3.2 billion mobile phone users worldwide and it is expected to grow to 3.9 billion users in 2017. However, the SMS becomes an attractive medium for the fraud perpetrators to conduct their crime because mobile users using SMS text more than placing phone calls (Cloudmark 2012). Therefore, the SMS users potentially can become a large targeted victims of fraud SMS. The cases of fraudulent SMS not only inflict losses to the users, but it also will affect the telecommunication service providers and the companies’ name that are deliberately misused by the fraudster to deceive the victims. Some users might have received an SMS stating that they were the winners of certain competition, won lotteries, and prizes as well as electronic devices. Some of these SMSes are legal that come from the true and actual event, but there also some of the SMSes that are fake, created by the fraudsters to gain something from the users. Fraud is defined by Albrecht et al. (2009), as deception that includes a representation about a material point which false and intentionally or recklessly so, which is believed and acted upon by the victim to the victim’s damage. According to Bales and Fox (n.d.), the meaning of fraud is also defined in the Statement on Auditing Standards (SAS) 99 as an intentional act by one or more individuals or third parties, involving the use of deception to obtain an unjust or illegal advantage. In the context of fraud SMS, fraudsters’ intention is still to gain unjust or illegal advantage from the victims but they use the SMS as a channel for the modus operandi. Traditionally, SMS communication was limited to personal communication between two mobile phone users. To date, this is no longer the only use of SMS technology because users nowadays can use this service for various functions such as transferring money, advertising and marketing services, donation and SMS voting in the reality television program and so forth. There were also financial institutions offering their services such as financial transactions and marketing services through the SMS technology. With these multifunction activities that can be done through the SMS, it opens up the potential risks that can be associated with the use of this service. Fraud SMS and spam can be in many forms and able to cause substantial damage to the users, financial institution or other organizations and the telecommunication service providers. Among the fraud SMS and spam that exist today are spamming, flooding, faking, spoofing, smishing, viruses and GT Scanning (Sevis Systems Inc. 2008). According to GSM Association (2005) spamming referred as the unsolicited and unwanted SMS sent to the subscribers. It often involves commercial information, bogus contest and other message that generally intended to

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[]invite a response from the receiver. Meanwhile, flooding happens when numerous messages are sent to one or more destination that targeting the subscribers and nodes resulting to the overload in the signaling network, makes the communication service provider incurs relay operator costs (Sevis Systems Inc. 2008). On the other hand, faking SMS is the action of manipulating the operators’ mobile network resulting them fail to collect termination fees. Spoofing is the action of sending the messages illegally by simulating the subscribers who are in roaming situation. Smishing is a message that appears like it is from a valid company that will collect the subscriber’s information without their consent. Next, is the viruses attack that occurs when hackers launch messages that luring the subscriber to download a site that contain viruses. As for the case of GT scanning, the fraudsters attempt to find the weakest point in the network system of SMS service. The fraudster will try to find unprotected system in the SMS center by scanning of the network and take control the SMS system. This type of SMS fraud usually required the fraudster to use mobile phone with a computer connected in order to perform this activity (Puukangas and Telia 2010). Since SMS is a popular communication tool and have numerous users globally, the chance to be a victim of fraud SMS could be reasonably high. Hence, it is paramount to discover any attempts in order to prevent and avoid the recurrence of fraud SMS cases. In this paper, it will highlight several initiatives that are useful to notify and give awareness to the users of mobile devices to avoid from becoming victims of fraud SMS. When users are aware of fraud SMS and other threats, so that when in the unlikely event, they are not exceptionally vulnerable to this threat, thus in some way will reduce the number of victims.

[]2 Literature Review The rise in fraud SMS cases demands a serious preventive action that must be constructed to avoid this illegal activity repetitively occurs in the future. As mobile operators nowadays compete among themselves to open up more roaming and various functions of SMS features, it also will expose users to an increased risk of fraud and spamming activities. The evolution of mobile phone from a simple to a rich features like smartphones that is more powerful and can even perform the tasks like a computer. However, this advancement of technology has also attracted the same sort of malevolent and malicious activities such as spam, phishing, denial of service, and fraud that infect the IT world (Telsis Ltd. 2012). Fraudsters are also becoming more organized and always find new opportunities to create sophisticated methods to obtain and misuse consumers’ personal and financial information. Once the fraud SMS takes place, it will directly impact to the service providers’ revenue, users’ trust and the company’s name used by the fraudsters. As opined by Cournane and Hunt (2004), the effects resulted from spam message can lead to cost shifting, fraud, resource wastage, and displacement of legitimate messages. According to Telsis Ltd. (2012), when users are defrauded, they lose their confidence to the

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[]service provider and other companies’ name which is misused by the fraudster, thus damaging the reputation and credibility of these organizations. This is supported by the report of International Telecommunication Union in 2005 found that 80 % of mobile phone users blame the service providers as they received the spam and fake message. Fraudsters and spammers clearly cannot be eliminated and stopped easily; therefore, all societies and authorities across the world should realize this problem and begin the action to combat this activity (International Telecommunication Union 2005). Although, fraud SMS and spam are not a new issue, but there is still a small number of research that focus on the prevention and avoidance of this threat. Perhaps, it is because the academic researchers in this field also facing difficulties where the lack of real and public databases can compromise the evaluation of different approaches (Almeida et al. 2011). However, there are still a number of previous researchers and telecommunication providers discussed on the efforts in finding alternatives to reduce and possibly eliminate the occurrence of fraud SMS and spam. For instance, Lui et al. (2007) analyze different ways malicious parties can execute SMS spamming attacks at both the user and the server level. They studied the existing solutions and propose a more economical and platform-independent solution using open-sourced software package and scripting language. In their study, they have developed a prototype Perl script in order to prove their concept. Lui et al. (2007) add that their proposed solution can be implemented easily at the server level with very low cost and on different platforms without the users’ involvement. Meanwhile Yoon et al. (2010) proposed a hybrid spam filtering framework for mobile communication using a combination of content-based filtering and challenge-response. With this approach, Yoon et al. (2010) stated that a message will go through the spam filtering process and then will go further to challenge-response where the sender have to respond. A legitimate sender would have responded it correctly (Yoon et al. 2010). Other study by Balaguer and Rosso (2011) perform some preliminary experiments to investigate whether plagiarism detection tools could be used as a filter for SMS spam text messages and the results show it is able to detect a good number of near-duplicate SMS spam messages. The effort from this researchers could also be expanded further and can be used to confront the fraud SMS. Some telecommunications service providers such as Telsis Ltd. (2012) has introduced a product called SMS Home Routing that is able to safeguard its customers, network, and brand from fraud, spam, malware and other unwanted messages, where it can screen all mobile-terminated text messages sent to its customers, blocking messages that are fraudulent, malicious, or contain spam. Other approach is by Sevis Systems Inc. (n.d.) with their developed SMS Defense that is equipped with the core capabilities needed to manage SMS spamming, flooding, faking, etc. along with enhanced content filtering and advanced control features that include message thresholding, re-routing, modification, and response. The SMS Defense can stop off-net spam and fraud before it can reach the user’s gateways and minimizing the amount of SMS traffic in the signaling core network (Sevis Systems Inc. 2008, n.d.).

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[]Despite the effort to develop a state-of-the-art system specifically to filter and detect the fraud and spam SMS, another important thing is to make the users realize and aware about the existence of threats and risks in SMS technology. Without awareness and attentiveness from users about this threat, the number of victims and potential victims will continue rising over the coming years. Therefore, community and mobile users must concern on their security when using the SMS technology. According to an expert in information security and mobile commerce, Goode (2010), he suggests that the community should educate themselves in risks; reflect the risks in policy and procedure; clarify the issue on the use of mobile phones for company business; deploy appropriate technology control; and monitor effectiveness of policy and technology controls. Based on this judgment, users must be alert and prepared themselves to avoid from becoming victims by knowing the risks in SMS technology and a concern about the privacy and security measures. With the growing complexity in the mobile ecosystem, it is estimated that many evolving types of mobile fraud will rise, thus mobile operators must proactively take steps to protect consumers in deterring this crime. As in Malaysia, mobile operators such as Celcom has formed an initiative to cooperate with the police to educate the societies and increase their awareness about cybercrime especially involving the fraud SMS (Communications and Multimedia Consumer Forum of Malaysia 2011). Another well-known telecommunication provider, Maxis, has advised the public not to respond to SMSes informing subscribers that they had won a cheque from the Telco (The Star Online 2007). Other than the Telco’s companies, fraudsters also use a well-known business entity such as Shell, Power Root, Astro, Digi, or Petronas and etc. and disguise behind this well-established organization to deceive users since it is already trusted by customers Mat Dangi and Tajuddin (2013). The fraudsters used to manipulate a reputable company’s name in order to make the fraud SMS looks like real and gain victim’s confidence to give respond. Preventive and avoidance action are relatively stronger than detective control especially if it is implemented in technical features in mobile system (Gilman and Joyce n.d.). Therefore, by educating the society and the users about mobile risk and fraud SMS can be considered as an effective prevention action can begin with. This is also supported by the International Telecommunication Union (2005) in their survey which found that consumer education has been seen as a key element particularly important for the success of anti-spam legislation as well as for the fraud SMS avoidance. The increasing awareness of users of the risks in fraud SMS is a first step to prevent them from becoming the victim. Other than that, the government and authorities have to make sure consumer able to channel out their complaints and appropriate investigative procedures should be initiated (International Telecommunication Union 2005). As in Malaysia, the Malaysian Communications and Multimedia Commission (MCMC) are the responsible authorities that play a key role in the regulation of the communications and multimedia industry. Among the prevention initiative to avoid fraud SMS and spam in Malaysia, MCMC had given the orders to all telecommunication service providers to set up an avoidance system that automatically blocks spamming and spoofing of SMS messages (PTA 2008). Consequently, MCMC (2006) also suggests organizations and individuals should

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[]respect their privacy, wherever possible and practical, adopt and deploy technology that incorporates the latest anti-spam features.

[]3 Methodology A total of 400 questionnaires were distributed to Bachelor Degree students in Universiti Teknologi MARA Pahang (UiTM) Jengka Campus using random sampling. List of respondents was gathered from the Academic Affairs and covered all courses offered in UiTM Pahang. Out of that, 30 % of sample was chosen randomly and questionnaire was distributed by lecturers that taught the courses (n = 371). The survey instrument took approximately 10–15 min to be completed. Survey questions were provided both in English and Bahasa Melayu (Malay Language) in order to ensure better understanding among respondents. The questionnaire was divided into three sections. Section A and B of the instrument were on ways to avoid and prevent SMS fraud and Section C was designed to collect the demographic information of the respondents. Among the questions asked in section C was age, gender, marital status, year of study, and programme code. The instrument used to construct the questionnaires was based on the qualitative study previously tested to the respondents adapted from Mat Dangi and Tajuddin (2013). Out of 400 questionnaires distributed, 291 were returned and valid for further testing and analysis and this gave a response rate of 73 %. Statistical analysis of the data surveyed was performed using the Statistical Package for Social Science, Version 21.0. The statistical method that was performed to analyze the data was mean score.

[]4 Data Analysis and Findings 4.1

[]Summary of Respondent Demographic

[]This research has performed a personal distribution of questionnaire to gather information from prospective respondents. A total of 400 questionnaires were administered and 291 responded that contributed to a 73 % response rate. Data was collected over a one month period from March to April 2014. The response rate is considered high for further analysis. Respondents were from different age groups that range from 17 to 32 years old and they came from different programmes which provided some rich and unique findings in the context of this study. Here, a representative distribution of age range and multiple programmes is advantageous to this study as it keeps bias to a minimum. As presented in Table 1, the highest percentage of respondents came from the age group of 21–24 years (89.3 %) and female students dominated the number of respondents as they represented 190 out of 291 students (65.3 %). Most of the respondents were single (94.8 %) and the remaining were married (3.8 %). It

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[]Table 1 Summary of respondent demographic Personal demographic variables

[]Categories

[]Frequency

[]%

[]Age

[]17–20 years 21–24 years 25–28 years 29–32 years Male Female Single Married First year Second year Third year Fourth year Other AC220 BM232 AS247 AT220 AS201 AS202 AS203 CS227 SR243 Yes No Yes No Less than 5 times 5–10 times More than 1 times Prepaid Postpaid Delete Ignore Type stop Type yes and follow the steps Seek family advice Lodge a police report Call telecommunication provider

[]11 264 15 1 98 192 280 11 42 92 127 28 2 37 44 40 77 25 19 14 16 18 287 4 10 281 214 53 24 273 18 170 104 3 3 6 3 2

[]3.8 90.6 5.2 3 33.8 66 96.2 3.8 14.4 31.7 43.7 9.5 0.7 12.9 15.0 13.6 26.5 8.7 6.6 4.9 5.6 6.3 98.6 1.4 3.5 96.5 73.6 18.3 8.1 93.7 6.3 58.5 35.6 1.1 1.1 2.1 1.1 0.7

[]291

[]100

[]Gender Marital status Year of study

[]Programme

[]Experience in receiving fraudulent SMS Believe the SMS or not Times to receive the SMS

[]Types of telecommunication services Action taken when receiving the SMS

[]Total

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[]showed that, the majority of 124 respondents (42.6 %) were third-year students and respondents from the Agricultural Technology programme have answered the questionnaires the most (26.1 %). As presented, 283 (97.3 %) of the respondents have the experience of receiving fraudulent SMS. However, most of them (95.2 %) did not believe the SMS sent to them and only 10 (3.4 %) who thought otherwise. The questions have also asked about the frequency in receiving the unsolicited messages and it showed that 209 (71.8 %) respondents received the messages less than 5 times, 52 (17.9 %) received 5–10 times and 23 (7.9 %) received more than 11 times. The type of preferred telecommunication services was prepaid as respondents were all students and most of them did not have any income yet. The data showed that more than half of the respondents that was 166 students (57 %) deleted the unwanted messages and 101 students (34.7 %) ignored and only three students (1 %) who gave positive response to the fraudulent SMS.

[]4.2 4.2.1

[]Reliability Test Ways to Prevent and Deter Fraud SMS

[]In order to determine the reliability for the total of 8 questions to estimate the internal consistency, the reliability analysis is conducted to determine if all items use the same metric and whether any items have to be reverse-scale. The results of the reliability statistics have been analyzed and presented in Table 2. Based on Table 2, the result of the reliability statistic analysis shows good indicators when the Cronbach’s Alpha (a) is closer to 1 or equal to 1 which indicated that the questionnaire given to the respondents (No. of Items: 8) are reliable in terms of internal consistency and it is considered as valid and reliable to measure ways to prevent fraud SMS. Thus, the results of Cronbach’s Alpha (a) or as known as Coefficient Alpha (a) for this study is 0.850 which represent as a good indicator for the reliability of the instrument used by the researcher. In other words, the Coefficient Alpha (a) of 0.850 suggests that the scale scores are reasonably reliable for respondent like those in the study.

[]4.2.2

[]Ways to Avoid Fraud SMS

[]In order to determine the reliability for the total of 14 questions to estimate the internal consistency, the reliability analysis is conducted to determine if all items use the same metric and whether any items have to be reverse-scale. The results of the reliability statistics have been analyzed and presented in Table 3. Table 2 The reliability statistic result for ways to prevent fraud SMS

[]Reliability statistic Cronbach’s alpha

[]No. of items

[]0.850

[]8

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[]Table 3 The reliability statistic result for ways to avoid fraud SMS

[]177

[]Reliability statistic Cronbach’s alpha

[]No. of items

[]0.911

[]14

[]Based on Table 3, the result of the reliability statistic analysis shows excellent indicators when the Cronbach’s Alpha (a) is closer to 1 or equal to 1 which indicated that the questionnaire given to the respondents (No. of Items: 14) are reliable in terms of internal consistency and it is considered as valid and reliable to measure ways to avoid fraud SMS. Thus, the results of Cronbach’s Alpha (a) or as known as Coefficient Alpha (a) for this study is 0.911 which represent as an excellent indicator for the reliability of the instrument used by the researcher. In other words, the Coefficient Alpha (a) of 0.911 suggests that the scale scores are reasonably reliable for respondent like those in the study.

[]4.3

[]Avoidance

[]Table 4 shows the percentage and mean value for the avoidance action to be taken in order to fight fraudulent SMS. There were eight (8) statements stated in the questionnaire which is related to possible action to avoid an individual from involve in SMS fraud activities. The respondents were asked to choose either 1 for strongly disagree to 5 for strongly agree with the statement. The highest mean score is recorded for “be alert and aware” statement with mean score 4.61. There were 63.4 % of the respondents agreed with this statement, meanwhile there were no one

[]Table 4 Frequency value and mean score of avoidance action Statement

[]Frequency value Strongly disagree (%)

[]Disagree (%)

[]Be alert and aware

[]0.0

[]0.7

[]Ignore the SMS

[]0.7

[]1.4

[]Be more careful

[]0.3

[]Be knowledgeable

[]Neutral (%)

[]Agree (%)

[]Strongly agree (%)

[]Mean score

[]1.0

[]34.8

[]63.4

[]4.61

[]4.8

[]27.7

[]65.4

[]4.56

[]0.33

[]3.4

[]36.2

[]59.7

[]4.54

[]0.7

[]0.3

[]3.1

[]40.3

[]55.5

[]4.50

[]Find and gather information

[]0.7

[]0.3

[]7.6

[]40

[]51.4

[]4.41

[]Make in depth analysis

[]0.0

[]1.7

[]9.0

[]37.4

[]51.9

[]4.39

[]Make a report

[]0.3

[]1.0

[]12.1

[]36.2

[]50.3

[]4.35

[]Security settings and firewall

[]1.0

[]4.1

[]16.9

[]31.7

[]46.2

[]4.18

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[]is strongly disagree with this statement (0.0 %). This indicates that it is important for an individual to keep aware and alert about the issue as it is currently has been widely exposed and reported in the media especially television and newspaper. Next, the second highest mean score indicates that an individual should “ignore the SMS” (4.56). Once the individual receives any suspicious and unreliable SMS, he/she should immediately ignore the SMS and do not respond to it. The statement “be more careful” recorded to have 4.54 mean score, which is the third highest in the avoidance action. The same actions to be taken is not simply reply for any interested SMS and pick up a call from unknown number offering an expensive gift or money which may lead an individual to fraudulent SMS. Next, “be knowledgeable” reported the mean score of 4.50. This suggests to the users to enhance their knowledge about this issue. The mean value for “find and gather information” statement is 4.41 indicates the users to be more active in searching and gathering the information about SMS fraud through internet, newspaper, or from other sources. In relation to that, “make in depth analysis” have a mean score of 4.39 with 51.9 % of the respondents agreed and 0.0 % strongly disagree with the statement. It is suggested to the users to analyze their environment and be critical to this issue by asking and discuss the pros and cons regarding this matter with the family members and friends who receive unreliable SMS. Next, statement “make a report” reported with 4.35 mean scores suggests the users to make a report to authority bodies such as police, and MCMC or maybe to their telecommunication service providers like Celcom, Maxis, and Digi could help to avoid the fraudulent SMS. The lowest mean score is recorded by (4.18), “security setting and firewall” statement. There were less than 50 % of the respondents agreed with this statement (46.2 %).

[]4.4

[]Prevention

[]The result of mean score and percentage value of ways to prevent fraud SMS is tabulated in Table 5. Using the same scale, 1 for strongly disagree to 5 for strongly agree, respondents were asked to respond to 14 statements related to prevention action to fight fraudulent SMS. The highest mean score is reported by two statements; “action by government” statement and “increase awareness level” statement with a mean score of 4.51, respectively. However, “action by government” has a higher percentage of 58.4 % of the respondents strongly agree with this statement. Meanwhile, 56.3 % of the respondents have strongly agreed with “increase awareness level” statement. The respondents believe the government could play an important role to find the best solution of this issue. The government should do more campaign and community service advertising in order to create a comprehensive action to prevent fraud SMS. In relation to that, the government has authority to combine the related agencies such as police department and MCMC with telecommunication service provider work together to fight fraudulent SMS. Next, “increase awareness level” statement suggests that awareness level among

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[]Table 5 Frequency value and mean score of preventive action Statement

[]Frequency value Strongly disagree (%)

[]Disagree (%)

[]Action by government

[]0.7

[]0.7

[]Increase awareness level

[]0.0

[]Role of media Strengthening law enforcement and enforcers

[]Neutral (%)

[]Agree (%)

[]Strongly agree (%)

[]Mean score

[]4.2

[]36.4

[]58.4

[]4.51

[]1.0

[]3.5

[]39.5

[]56.3

[]4.51

[]0.3

[]1.0

[]6.6

[]32.2

[]59.8

[]4.50

[]0.7

[]1.7

[]5.9

[]33.6

[]58.0

[]4.47

[]Circulate information to public

[]0.0

[]1.1

[]9.5

[]37.2

[]52.3

[]4.41

[]Action by telecommunication company

[]0.3

[]2.8

[]7.3

[]38.8

[]50.7

[]4.37

[]Elimination of telecommunication’s agent

[]0.3

[]2.1

[]11.5

[]32.5

[]53.5

[]4.37

[]Individual attitudes and behavior

[]0.4

[]1.4

[]7.7

[]44.2

[]46.3

[]4.35

[]Report to enforcement body

[]0.0

[]1.4

[]11.6

[]39.3

[]47.7

[]4.33

[]Perform in depth analysis

[]0.0

[]0.7

[]11.9

[]44.8

[]42.7

[]4.29

[]Improve security system

[]0.3

[]2.8

[]13.3

[]38.8

[]44.8

[]4.25

[]Conduct more research on fraud SMS

[]0.3

[]2.7

[]12.6

[]40.6

[]43.7

[]4.24

[]Roles of parents, family, friends, and relatives

[]0.7

[]1.4

[]13.7

[]43.8

[]41.0

[]4.23

[]Advice by experienced people

[]0.7

[]1.7

[]11.9

[]48.6

[]37.1

[]4.20

[]users is still low and therefore it should be increased. The percentage value indicates that there is no one strongly disagree with this statement (0.0 %). The third highest mean score indicates that media should play a big role to educate the users to fight fraud SMS. Media has powerful credibility to influence the users through intensive advertising, announcement, short movie, newspaper, and others which are specifically designed to promote the danger of fraudulent SMS. The “strengthening law enforcement and enforcers” statement reports the mean score of 4.47. There were 58.0 % of the respondents who strongly agree with this statement. Respondents choose “circulate information to public” statement to be the

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[]fifth highest mean score of 4.41 with 52.3 % of them strongly agree with this statement. The information about this matter is still limited among users, therefore the activity to circulate the information must be widespread. This can be done through providing notice at the bank and ATM machine, spreading information at media social web, and commercials. The statement of “action by telecommunication company” and “elimination of telecommunication’s agent” are reported to have 4.37 mean scores, respectively. The telecommunication company such as Celcom, Maxis, Digi, and others should involve together with government against this matter. This action is important to the company in order to gain good reputation from their customer and at the same time as one of their corporate social responsibility to repay the loyalty showed by their customers. Forty-six point three percent (46.3 %) of the respondents indicate strongly agree that individual attitude and behavior also play a big role to prevent fraud SMS. This statement is reported to have a mean score of 4.35. As a user, individuals should be more careful, more aware, ignore the unreliable SMS, open minded, think critically, and do not greedy once receiving the suspicious. If the individual willing to share the SMS with friends and family members or take a few minutes before reply to suspicious SMS, this action might prevent the user from fraudulent SMS. Next, “report to enforcement body” statement is recorded with 4.33 mean scores indicate that report to enforcement body, such as the police, the Malaysian Communication and Multimedia (MCMC) can be made as one of prevention action. Then, the five lowest mean scores for preventive action is shown in the table. It is recorded that, “perform in depth analysis” statement with 4.29 mean scores, “improve security system” statement is recorded with 4.25 mean scores, “conduct more research on fraud SMS’ statement with 4.24 mean scores, “roles of parents, family, friends and relatives” statement is recorded with 4.23 mean scores. Meanwhile, “advice by experienced person” statement is reported to be the lowest mean score of 4.20. The respondents believed that fraudulent SMS could be prevented through several actions such as an individual must perform critical thinking and analyzing when facing suspicious conditions like receiving SMS offering big reward for winning an unknown competition. The users are highly recommended to install the firewall or any filter system to block the SMS from unidentified numbers. This action will increase the security of the smartphones user from virus and worm spread which can be updated from time to time. The respondents also believed that academic research is one of preventive action in order to fight against fraud SMS. This fact exposes the importance of research in helping the government and authority bodies to handle this issue. Therefore, more research about fraud activity, especially involving the high technology crime like fraud SMS is encouraged to be done by other researchers in the future. In relation to that, family, friends, and relatives play an important role to prevent this crime, this initiative can begin by sharing the information about fraud SMS or at least show any suspicious SMS to family and friends before reply to it. Lastly, advice from experienced people about this issue is recorded to be the lowest initiative with only 37.1 % of the respondents strongly agrees with this statement. This may be due to a limited number of experienced people want to be in public to share their experiences. Or, some victims

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[]want to forget the incident immediately and therefore, they are preferred to keep quiet. Then, the respondents assumed it was to be the least important prevention action in handling this fraud SMS issue.

[]5 Conclusion and Recommendation Hundreds of millions of subscribers worldwide have registered to use SMS and it is being considered as a primary communication medium, thus making SMS as the most popular wireless data service for cellular networks (Meng et al. 2007). However, although its increased popularity, studies on its reliability specifically on fraudulent SMS is very sparse. As highlighted earlier, fraud SMS has mounted to billion losses due to exploitation in allowing fast spreading of security attacks such as viruses and spams. The analysis of this study has shown that respondents were very apprehended on fraud SMS. Most of them strongly agreed with high mean score related to being alert and aware of fraud SMS, where majority just ignore the SMS as they were able to identify the fraudulent element in the SMS they received. Respondents have suggested that proactive actions need to be taken by related authorities. Government intervention in minimizing and thus eliminating the number of fraud SMS is desperately needed to safeguard the welfare of users. The awareness level on this issue must also be taken seriously and the media is seen as the most prominent function to disseminate the knowledge on fraud SMS and simultaneously act as a reminder to the users not to tolerate with deceptive messages. It is suggested that aggressive promotions are being widespread to increase the awareness of fraud SMS among the cellphone users. This kind of initiative can be performed by formal and informal organizations to show their sense of responsibility and concerns. Telecommunication service providers must deploy security measures to protect their users from receiving unwanted messages. Within this context, it is a challenging issue to consider, but it is worthwhile to conserve the losses incurred by the users in diverse areas. However, this study has limitations as it only gathered data among undergraduate students in UiTM Jengka Campus. It is suggested that future research concentrates on public and private employees as they are more prone to latest news updates and high in purchasing power if compared to the students.

[]References Albrecht, W. S., Albrecht, C. C., Albrecht, C. O., & Zimbelman, M. F. (2009). Fraud examination 3rd edition. Canada: South Western Cengage Learning. Almeida, T. A., Gomez, J. M., & Yamakami, A. (2011). Contributions to the study of SMS spam filtering: New collection and results, Mountain View, California, USA. Retrieved from http:// www.dt.fee.unicamp.br/*tiago/smsspamcollection/doceng11.pdf Kearney, A.T. (2013). The mobile economy 2013. Retrieved from http://www.atkearney.com/documents/ 10192/760890/The_Mobile_Economy_2013.pdf/6ac11770-5a26-4fef-80bd-870ab83222f0

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[]Balaguer, E. V., & Rosso, P. (2011). Detection of near-duplicate user generated contents: The SMS spam collection. Retrieved from http://users.dsic.upv.es/*prosso/resources/ VallesRosso_SMUC11.pdf Bales, K., & Fox, T. L. (n.d.). Evaluating a trend analysis of fraud factors. Journal of Finance and Accountancy, pp 1–10. Ceccucci, W., Peslak, A., & Sendall, P. (2010). An empirical study of behavioral factors influencing text messaging intention. Journal of Information Technology Management, 21(1). Cloudmark. (2012). Mobile security solutions guide. Retrieved from https://www.cloudmark.com/ releases/docs/solutionguides/mobile-security-solutions-guide-august-2012.pdf Communications and Multimedia Consumer Forum of Malaysia. (2011). Polis, Celcom tingkat kesedaran tentang penipuan siber, http://cfm.org.my/media-watch/20111222/polis-celcomtingkat-kesedaran-tentang-penipuan-siber. Accessed December 11, 2013. Cournane, A., & Hunt, R. (2004). An analysis of the tools used for the generation and prevention of spam. Computers and Security, 23, 154–166. Gilman, L., & Joyce, M. (n.d.). Managing the risk of fraud in mobile money, GSMA—mobile money for the unbanked, GSMA London Office. Retrieved from http://www.gsma.com/ mobilefordevelopment/wp-content/uploads/2012/10/2012_MMU_Managing-the-risk-of-fraudin-mobile-money.pdf GSM Association. (2005). SMS SS7 Fraud 3.1, GSM Association official document IR.70. Retrieved from http://www.gsma.com/newsroom/wp-content/uploads/2012/12/IR7031.pdf Goode, A. (2010). Managing mobile security: How are we doing? Retrieved from http://student. nu.ac.th/ekkasit/net_sec/Mobile_Security.pdf International Telecommunication Union. (2005). ITU survey on anti-spam legislation worldwide. Geneva: WSIS Thematic Meeting on Cybersecurity. Malaysian Communications and Multimedia Commission (MCMC). (2006). Anti-spam toolkit: Version 1.0. Retrieved at: http://www.kkmm.gov.my/akta_kpkk/Anti-Spam_Toolkit%20(2).pdf Mat Dangi, R., & Tajuddin, N. (2013). Fraud responses through short text messages (SMS): A qualitative study on enthusiasm, power of influences and impacts to the university students, Konferensi Akademik Universiti Teknologi MARA (Pahang) (KONAKA 2013), pp. (392–404). Meng, X., Zerfos, P., Samanta, V., Wong, S. H. Y., & Lu, S. (2007). Analysis of the reliability of a nationwide short message service. INFOCOM. Retrieved from http://cs.ucla.edu/wing/ publication/papers/Meng.INFOCOM07.pdf PTA. (2008). Consultation Paper on spam, unsolicited and obnoxious calls, Pakistan Telecommunication Authority. Retrieved from http://telecompk.net/wp-content/uploads/2008/ 05/paper_spam_090508.pdf Puukangas, K. M., & Telia, S. (2010). Fraud in short messaging in mobile networks. Retrieved from https://noppa.aalto.fi/noppa/kurssi/s-38.3310/harjoitustyot/S-38_3310_kari-matti_puukangas.ppt Sevis Systems Inc. (2008). SMS Defense® white paper: transparent mobile-to-mobile sms spam and fraud control. Retrieved from http://www.sevis.com/root/media/SMS%20Defense% 20White%20Paper.pdf Sevis Systems Inc. (n.d.). SMS Defense®: To prevent mobile-to-mobile SMS spam and fraud. Retrieved from http://www.sevis.com/root/media/SMS_Defense3.pdf Telsis Ltd. (2012). The case for sms home routing: Executive briefing. Retrieved from http://www. telsis.com/pdf/The-Case-for-SMS-Home-Routing-1590-1310-02.pdf The Star Online. (2007). Maxis: Ignore SMS scam. Archives http://www.thestar.com.my/story. aspx/?file=%2f2007%2f7%2f14%2fnation%2f18303050&sec=nat. Accessed December 11, 2013. Lui, W., Tang, V., & Ni, J. (2007). Analysis of SMS spamming solutions. Retrieved from http:// courses.ece.ubc.ca/412/previous_years/2007_1_spring/modules/term_project/reports/2007/ analysis_of_SMS_spamming_solutions.pdf Yoon, J. W., Kim, H., & Huh, J. H. (2010). Hybrid spam filtering for mobile communication. Computers and Security, 29, 446–459.

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[]Chapter 17

[]Contribution of Economic Sectors to Malaysian GDP Ilyani Azer, Hamnah Che Hamzah, Siti Aishah Mohamad and Hasni Abdullah

[]Abstract The agriculture, manufacturing and service sectors are important elements in any county’s economy. It has direct and significant contribution to gross domestic product (GDP) and job creation, and provides crucial inputs for the rest of the economy, thus having a significant effect on the investment of a country. This paper empirically examines the relationship between manufacturing, agriculture, services sectors and GDP per capita. It uses annual data from the year 2000 until 2010. The research methodology incorporates from time series data gathered from Malaysia Economic Statistics 2013 published by Department of Statistics, Malaysia. The data was analysed using Correlational and Multiple Regression Analysis to examine the relationship between the dependent variable and the independent variables. It is found that manufacturing and service sectors are related to real GDP per capita while agricultural sector did not show a significant relationship towards GDP per capita. Keywords Agriculture Services sectors

[]Gross domestic products (GDP)

[]Manufacturing

[]I. Azer (&) H. Che Hamzah S.A. Mohamad H. Abdullah Faculty of Business Management, Universiti Teknologi MARA Pahang, 26400 Bandar Tun Razak Jengka, Pahang, Malaysia e-mail: [email protected] H. Che Hamzah e-mail: [email protected] S.A. Mohamad e-mail: [email protected] H. Abdullah e-mail: [email protected] © Springer Science+Business Media Singapore 2016 M.A. Abdullah et al. (eds.), Regional Conference on Science, Technology and Social Sciences (RCSTSS 2014), DOI 10.1007/978-981-10-1458-1_17

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[]1 Introduction Gross domestic product (GDP) is defined as an aggregate measure of production equal to the sum of the gross values added of all resident institutional units engaged in production. The GDP growth rate is the pivotal indicator of economic health. If GDP is growing, so will business, jobs and personal income. An increase in GDP, the market value of all the products and services produced annually within a country, contribute to economic growth. What is desirable in an economy is to increase GDP and achieving economic growth consequently (Sandalcilar and Altiner 2012). The manufacturing and services sectors played dominant roles in the Malaysia’s economy, and the contribution of the agricultural sector to economic growth seems to be trivial. It can be explained by the effects of transformation from agricultural economy into industrial economy of Malaysia since 1970s. Since late 1970s, Malaysia’s economic development strategy is based on three long‐term policies which are the New Economic Policy (NEP) 1970–1990, the National Development Policy (NDP) 1990–2000, and the National Vision Policy (NVP) 2001. By 1990, Malaysia had met the criteria as a Newly Industrialized Country (NIC) which means 30 %of exports consisting manufactured goods (Hussin and Ching 2013). Under current Prime Minister Dato’ Seri Najib, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. Today, Malaysia is a high middle income country with a diversified economy dominated by services (55 % of GDP) and manufacturing (25 %), with mining (8 %) and agriculture (7 %) following in the distance (IMF 2015). Agriculture sector can be generalized into two categories which are industrial commodities and food subsector. Industrial commodities is under the supervision of Ministry of Primary Industries (KPU) provision which is responsible in ensuring high quality production of pepper, palm oil, rubber, cocoa and wood and timber. On another note, Ministry of Agriculture and Agro-based Industry (MOA) must oversee crop production, livestock and fisheries activities. The demand side offers good prospects for Malaysian agriculture. Analyst forecast that food needs will rise at extraordinary rates due to rapid increase in population, rising level of nutrition as income levels will increase and changing in consumption (Tengku Ahmad and Suntharalingam 2009). Manufacturing can be defined as the production of goods or items by using machines, equipment and labour force. Manufacturing activities vary from handicraft items to technology gadgets. But, the term is applied to the process of industrial production in which raw materials are transformed into finished goods and ready for sale. According to Kaldor (1967), manufacturing is an engine of economic growth as industrial goods have a higher-income elasticity of demand. Manufacturing sector in Malaysia contributes almost 80 % of overall country’s export and besides, Malaysia also known as the 21st largest exporting nation in the world (The German Chamber Network 2012).

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[]Service sector is the fastest growing sector in the world GDP, where the sector itself has collectively accounted for about two third of the world services trade (Wing et al. 2007). Services required face to face interaction. These include transport, trade, hotel, restaurant, beauty shops, barbers, education, health and other government and community services (Ghanii 2011). The seven NKEAs announced in the Economic Transformational Plan from the services sector are financial services, wholesale and retail trade, tourism, business services, communication content and infrastructure, education and healthcare (19th Malaysia Productivity Report 2012). The process of development usually coincides with a growing role of services in the economy, thus services constitute an increasing percentage of GDP in nearly all developing countries.

[]2 Literature Review Based on study by Kamaruddin and Masron (2010) that examines the structural changes in the Malaysian economy by utilising two economics tools, namely, the econometric approach using the Autoregressive Distributed Lag (ARDL) model and the input–output approach using structural decomposition analysis (SDA), found that the importance of the domestic consumption on manufacturing sectors effect the growth in the economy. As referring to study by Anwar (2008), manufacturing sector has long been regarded as the main driver of Singapore’s impressive economic growth. Prior to the emergence of China as a major supplier of manufactured goods, the Singaporean manufacturing sector was facing stiff competition from regional economies such as Malaysia and Thailand. He found that, in addition to foreign investment, human capital is also playing a significant role in foresting Singaporean manufacturing sector growth. In the study by Rahman et al. (2011) that used causality Wald tests statistics to examine the causal relationship examine the causal relationship among GDP, agricultural, industrial and service sector output for Bangladesh using time series data from 1972 to 2008. The results indicate that agricultural and industrial sector are the influencing factor of the GDP of Bangladesh and vice versa, where service sector does not influence the GDP but GDP influences the service sector to grow up. Based on the results by Katircioglu (2006) suggested that agricultural output growth and economic growth as measured by real GDP growth which are stationary at their levels, thus, naturally co‐integrated. They are in long-run equilibrium relationship. And second, there is feedback relationship between these variables that indicates bidirectional causation among them in the long-run period. Subramaniam and Reed (2009) estimated an econometric model that incorporates the linkages among agriculture, manufacturing, service and trade sectors using a vector error correction model for Poland and Romania. Jatuporn et al. (2011) investigates the causality between agriculture and economic growth in Thailand over the period of 1961–2009. A Granger causality

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[]approach and the Wald coefficient statistic are utilized to reveal a long-run causal relationship and impact transmission between the variables. Based on the time series analyses, a long-run relationship and size impact are detected running from agriculture to economic growth, and vice versa. It includes with the generalized variance decomposition show that agriculture existed in a long-term stable in economic growth while economic development encourages the growth of agriculture as a whole. Hussin and Ching (2013) examine the contribution of three economic sectors (which are agricultural sector, manufacturing sector and service sector) to economic growth in Malaysia and China by using time series data from year 1978 until 2007. Augmented Dickey Fuller (ADF) unit root test is used and it showed that the time series data are stationary at the first differences. The correlation analysis indicated that agriculture sector, manufacturing sector and service sector had positive relationship with GDP per capita in Malaysia and China. In addition, results of model multiple regressions showed that services sector generated the highest contribution to Malaysia’s economic growth while manufacturing sector provided the biggest contribution to China’s economic growth.

[]3 Methodology The data used in this study were secondary data obtained from Malaysia Economic Statistics 2013 that published by Department of Statistics, Malaysia. This study uses annual time series data from 1990 to 2010 and been analysed using SPSS version 20. As this study examines the relationship between manufacturing, agriculture, services sectors and GDP per capita, secondary data are appropriate for the study.

[]4 Findings and Discussion The study examines the relationship between economic sectors which is agriculture, manufacturing and services; and gross domestic products of Malaysia for the year 2000 until 2010. Durbin Watson is used to test whether serial correlation is present in the error terms in a regression. From the result, the Durbin Watson test is at 1.7 and a value near 2.00 indicates non-autocorrelation. Correlation analysis and multiple regression analysis were used to examine the relationship between the dependent variable and the independent variables. The multiple regression is conducted to test whether the three independent variables are significantly related to gross domestic products and to determine which variable is most important to Malaysian economic sector.

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[]Table 1 Model summary of the investigated variables Model

[]Coefficient B

[](Constant) 7450.693 Agriculture −0.035 Manufacturing 0.049 Services 0.019 a Dependent variable: GDP

[]t-statistic

[]p-value

[]7.992 −0.538 7.723 5.633

[]0.000 0.607 0.000 0.001

[]Std. error 932.214 0.065 0.006 0.003

[]The result of multiple regressions for all independent variables towards dependent variable indicates that all the three variables were able to explain the variance of gross domestic products per capita. From the coefficient analysis of determination, as indicated in R2, the represented value of 99.8 %, variation in real GDP per capita can be explained by these three independent variables and justified further with the significant F-statistics (F = 1003.027, Sig. F = 0.000) value, strongly support the result could not have occurred by chance. The coefficients of manufacturing and service sectors are statistically significant at the 95 % confidence level where the p-values are less than 0.05. This implies that the manufacturing and service sectors are related to real GDP per capita. In addition, manufacturing and service sectors have positive relationship with real GDP per capita due to positive values of the coefficients. Agricultural sector did not show a significant relationship with economic growth of Malaysia and has negative relationship with real GDP per capita due to negative coefficient value. By referring to Table 1, the equation for the multiple regression analysis is: Y ¼ b0 þ b1Ag þ b2Mf þ b3Serv Y ¼ 7450:693 0:035Ag þ 0:049Mf þ 0:019Serv whereby, Y Ag Mf Serv

[]Real GDP per capita Share of agricultural sector to real GDP per capita Share of manufacturing sector to real GDP per capita Share of services sector to real GDP per capita

[]Agricultural sector did not show a significant relationship with GDP of Malaysia while service sector is the largest contributor to Malaysia’s economic growth. The interpretation of the coefficient of service is, if valued-added for the service sector increases by 1 %, real GDP per capita is expected to increase by 0.02 %. Moreover, if value-added for the manufacturing sector increases by 1 %, real GDP per capita is expected to increase by 0.05 %. Hence, manufacturing and services sectors have some impact on real GDP per capita in Malaysia. According to the results, manufacturing sector is the highest contributor to real GDP per capita in Malaysia.

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[]5 Conclusion This paper examines the three important economic sectors namely agriculture, manufacturing and service sectors towards GDP per capita for the year 2000 until 2010. The correlational and multiple regression analysis are used in determining the relationship of the independent and dependent variables. The manufacturing and the services sectors are regarded as two main engines of the Malaysian economic growth due to the significant relationship shown by both sectors. Study by Anwar and Sam (2008) stated that; Singaporean economic growth is also been determined as the two main components; that is manufacturing and service sectors. Therefore, policy-makers should pay more attention to the micro-scale unit for farmers and also overseas agribusiness in forms of the benefit equivalence to agricultural societies to increase its contribution towards the economic growth (Jatuporn et al. 2011).

[]References 19th Productivity report 2011/2012. (2012). Malaysia Productivity Corporation. ISSN:1394-410X. Anwar, S., & Sam, C. Y. (2008). Services sector growth in Singapore. Singapore Management Review, 30(2), 19–33. Anwar, S. (2008). Foreign investment, human capital and manufacturing sector growth in Singapore. Journal of Policy Modeling, 30(3), 447–453. Ghanii, E. (2011). The service revolution. In Paper presented at ILO Conference, Geneva. Hussin, F., & Ching, C. W. (2013). The contribution of economic sectors to economic growth: The cases of Malaysia and China. International Journal of Academic Research in Economics and Management Sciences, 2(2), 2226–3624. IMF Country Report No. 15/59. (2015). International Monetary Fund Publication Services. Jatuporn, C., Chien, L. H., Sukprasert, P., & Thaipakdee, S. (2011). Does a long-run relationship exist between agriculture and economic growth in Thailand? International Journal of Economics and Finance, 3(3), 227–233. Kaldor, N. (1967). Strategic factors in economic development. Ithaca, NY: Cornell Univ Press. Kamaruddin, R., & Masron, T. A. (2010). Sources of growth in the manufacturing sector in Malaysia: Evidence from ARDL and structural decomposition analysis. Asian Academy of Management Journal, 15(1), 99–116. Katircioglu, S. T. (2006). Causality between agriculture and economic growth in a small nation under political isolation: A case from North Cyprus. International Journal of Social Economics, 33(4), 331–343. Rahman, M. M., Rahman, S. M., & Wu, H. B. (2011). Time series analysis of causal relationship among gdp, agricultural, industrial and service sector growth in Bangladesh. China–USA Business Review, 10(1), 9–15. Sandalcilar, A. R., & Altiner, A. (2012). Foreign direct investment and gross domestic product: An application on ECO region (1995–2011). International Journal of Business and Social Science, 3(2), 189–198. Subramaniam, V., & Reed, M. (2009). Agricultural inter-sectoral linkages and its contribution to economic growth in the transition countries. In. Paper presented at the International Association of Agricultural Economists Conference, Beijing, China.

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[]Tengku Ahmad, T. M. A., & Suntharalingam, C. (2009). Transformation and economic growth of the Malaysian agricultural sector. Management Review, 4, 1–10. The German Chamber Network. (2012). Market watch 2012. Electrical and Electronic Industry in Malaysia. DE International. Retrieved on October 1, 2014. Wing, B. C. L., Yee, O. A., & Yee, C. C. P. (2007). Malaysia’s services industry towards the global environment. Retrieved from October 1, 2014. http://repo.uum.edu.my/2399/1/Bryan_ Lo_Ching_Wing.pdf

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[]Chapter 18

[]To Serve or not to Serve? Student Leaders, Community Service, and Community Service Learning Musramaini Mustapha, Norzie Diana Baharum, Siti Aishah Mohamad, Nooradzlina Mohd Pauzi and Noor Raihani Binti Zainol

[]Abstract Community service is volunteer activities that require commitment to help others. This paper explores the knowledge and experience of community service activity among student leaders. It identifies the attitudes and perceptions of the student leaders on community service learning module as a requirement in their academic program. The Community Service—Learning Attitudes and Perception Scale (CSLAPS) was applied in this study. The findings show that the student leaders would participate in community services because of their interest in the program itself as well as for their career development. This research information could be used by the schools and academia to engage their student leaders in an academic-based community service as a way of learning and contributing back to the society. Having served both, the learning part and social purposes of the module, it could shape students into well rounded future leaders whose theoretical learning and real engagement of Community Service could benefit many. M. Mustapha (&) S.A. Mohamad Faculty of Business Management, Universiti Teknologi MARA Pahang, 26400 Bandar Tun Razak Jengka, Pahang, Malaysia e-mail: [email protected] S.A. Mohamad e-mail: [email protected] N.D. Baharum Academy of Language Studies, Universiti Teknologi MARA Pahang, 26400 Bandar Tun Razak Jengka, Pahang, Malaysia e-mail: [email protected] N.M. Pauzi Faculty of Business Management, Universiti Teknologi MARA Kelantan, Bukit Ilmu, 18500 Machang, Kelantan, Malaysia e-mail: [email protected] N.R.B. Zainol Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, City Campus, Pengkalan Chepa, Locked Bag 36, 16100 Kota Bharu, Kelantan, Malaysia e-mail: [email protected] © Springer Science+Business Media Singapore 2016 M.A. Abdullah et al. (eds.), Regional Conference on Science, Technology and Social Sciences (RCSTSS 2014), DOI 10.1007/978-981-10-1458-1_18

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[]192

[]Keywords Community service

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[]Learning Student leaders

[]1 Introduction The mismatch between what the industry needs and the kind of graduates our tertiary institutions are producing has led to many complaints made by the employers regarding graduate’s lacking of soft skills like leadership, decision-making, and communication skills. As a result, the graduates are facing unemployment problem. In order to minimize graduates’ low marketability, soft skills module (Kemahiran Insaniah) has been created by the Ministry of Education (MOE) as requirement in an academic program. It is planned to enrich human capital as the main thrust of development in achieving the aspirations of Vision 2020. This module needs overall evaluation from university, faculty, lecturers, involvement in extra co-curriculum activities, and students’ self-evaluation. One of the activities that students need to participate in is community service which can increase students’ development psychologically, socially, and cognitively. Psychological development can increase positive feeling and mental health. Social development can enhance students’ interpersonal skills and increase their social network, whereas cognitive development is the students’ ability to create new skills from their experience and the skills they have learned from the past. The cognitive benefits are a large part of the reason for incorporating volunteering and community service into various curriculum and co-curriculum requirements. Most of the students participate in community service learning activities to fulfill the academic requirement. They do not volunteer to participate in these activities. They do not realize that community service can increase their soft skills. A study done by Abrokwah et al. (2010) found that the students only participate more when motivated. Some young people have a perception of volunteering as “not cool,” “boring,” and time-consuming, based on stereotypical views of volunteering (Commission on the Future of Volunteering 2008; Smith 1999; Niyazi 1996). The aim of this study is to identify the attitudes and perceptions of the student leaders on community service (CS) and community service learning (CSL) module as a requirement in their academic program. The study seeks to examine the student leaders’ opinion toward volunteerism activities, participations and experience, satisfaction, career, and enhancement outcomes. It is very important to examine the attitudes and student’s perceptions as the result could be used by the academia to engage their student leaders in an academic-based CS as a way of learning and contributing back to the society. It is demanded for student leaders to have commitment in CS activities thus represented good reputation in front of other students.

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[]2 Literature Review 2.1

[]Community Service and Tertiary Students

[]Community service refers to the act performed for the benefits of the community where students who involve in CS should lead and use the experience to build the skills. The CS organized by the students can enhance their quality as university graduates whose academic knowledge and thinking skills are expected to meet the community needs. It exposes them to a multitude of real life situations of the society—the experience that could be used to develop a country. According to Birmingham (2013) CS has many positive effects on students’ leadership skills where independence is greatly needed. It also gives an opportunity for individual leadership to grow where students are allowed to identify their leadership roles and practice their own. With the exposure to the hands-on training offered in CS activity, students will learn how to solve the problem and increase their competence and confidence. It can enhance their communication skills too—the skills vital in ensuring the smooth running of the activity. Birmingham also found that students who gained leadership experience in the past were more likely to apply for leadership roles in the future, hence proving the positive impact CS can have on those involved with it. A research done by Latham (n.d.) identified many other benefits of CS on students other than developing leadership. These include learning to respect others, to be helpful, kind and patient, and to understand people with different backgrounds and needs.

[]2.2

[]Community Service Learning (CSL)

[]Margit (2014) categorized community services into (i) direct service, (ii) indirect service, (iii) advocacy, and (iv) community-based research. Direct service involves personal contact with people in need where immediate positive feedback can be gained during the process. The second type of CS is indirect service that does not involve personal contact where volunteers help by searching for resources required by the needy. Another type of CS is advocacy. It is a service that needs students to use their voice and talents to solve the problems. Students will more concern about particular issues happening in their daily life. Students also can involve in community-based research which can help them engage in research with the purpose to solve the problems. Community service learning (herewith CSL) is an incorporation of communitybased activity in a curriculum. Studies have shown numerous benefits of students’ involvement in community service learning. Students can be more aware of community services when the component of Community Service Learning is integrated into relevant course content. Service learning is mutually shared by both parties involved and is beneficial when learning exists concurrently with the service

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[]provided (Furco 1996; Canadian Alliance of Community Service 2010). Apart from increasing students’ awareness, Community Service Learning can change stereotypical beliefs, reduce ethnocentrism, and increase understanding of social and cultural diversity (Duffy et al. 2008; Denby 2008). In a study done by Astin et al. (2000), students who had involved in Community Service Learning gained an increased awareness of the world and their personal values which allow them to interact with and apply their knowledge to real world problems. Astin et al. add that by emphasizing cooperation, democratic citizenship, and moral responsibility through service learning, higher education is connected to the wider community with students prepared to meet society’s urgent needs. It engages students in active, relevant, and collaborative learning, which are effective ways to enhance student’s development and commitment to future community involvement (Sax and Astin 1997). In addition, the students can also connect with each other and communities as they take greater interest in social and community issues (Eyler et al. 1996). Besides, community service learning is also associated with enhanced academic performance, integration of academic and social experiences, gains in multiple areas of skill, competence, and knowledge, and overall satisfaction with the college experience which can add value for those who are involved (Zhao and Kuh 2004), greater social interaction with peers and extracurricular involvement, higher persistence and graduation rates, and greater gains in critical thinking and reading comprehension (Pascarella et al. 1994), and continuous involvement in the activities (Kuh 2001, 2003). With the various benefits gained from Community Service Learning, the whole part of academia needs to work collaboratively to ensure that students are aware of the opportunity to learn from it thus benefitting all involved.

[]3 Methodology This study conducted of the state in east coast Malaysia, Kelantan. In Kelantan, there are only two established public universities known Universiti Teknologi MARA (UiTM) Kelantan and Universiti Malaysia Kelantan (UMK). The selected universities for this study, namely, UiTM Kelantan and UMK have spent a lot of money in their support of co-curriculum activities such as CS activities. The former has even listed CS as one of its agenda, involving staff and students. Having served both, the learning and social purposes the activities could shape students into well rounded future leaders whose theoretical learning and real engagement of CS could benefit many. The sample of this study is Students Representative Council (SRC) of UiTM Kelantan and UMK consists of twelve and fifteen students, respectively. The data were collected through a survey. The survey instrument was in the form of a questionnaire on perceptions and attitudes regarding CS and community service learning. The questionnaires were distributed after an appointment was arranged with all members of the SRC. Twenty minutes were allocated for them to answer all questions. The response was 100 %.

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[]Table 1 Demographic profile of respondents

[]Demographic

[]195 UiTM Kelantan

[]Gender Male 33.3 % (4) Female 66.7 % (8) Age 20–21 years old 83.3 % (10) 22–23 years old 16.7 % (2) 24 years old and above – Academic level Diploma 91.7 % (11) Degree 8.3 % (1) CGPA 2.00–2.99 8.3 % (1) 3.00–3.99 91.7 % (11) Experience as SRC Less than 1 year 75.0 % (9) 1–2 years 16.7 % (2) 2 years and above 8.3 % (1) Family involvement in volunteerism activities Yes 33.3 % (4) No 66.7 % (8)

[]UMK 60 % (9) 40 % (6) – 93.3 % (14) 6.7 % (1) – 100 % (15) 13.3 % (2) 86.7 % (13) 93.3 % (14) 6.7 % (1) – 46.7 % (7) 53.3 % (8)

[]The questionnaire comprises three sections. Section A, consists of the demographic profile of respondents. Section B is about participation and experience in CS and section C refers to volunteering impact on personal attributes which applied a 5-point Likert Scale; “strongly agree,” “agree,” “not relevant,” “disagree,” and “strongly disagree”. Measurement for participation and experience in CS were employed from Bender and Jordaan (2007) and volunteering impact was employed from Wilson and Hicks (2010). The data were then keyed in into Statistical Package for Social Science (SPSS) version 20 to determine the mean and standard deviation (Table 1).

[]4 Research Findings This study involved 27 SRC members from both institutions (nine males and six females from UMK and four and eight, respectively, from UiTM Kelantan) with mostly aged between 20–21 years old for UiTM and 22–23 years old for UMK. All UMK SRC members were degree students and mostly diploma in UiTM. Majority of them got 3.00–3.99 CGPA showing that those in SRC have a good academic background. Most of the respondents from both universities have less

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[]Table 2 Reasons for volunteerism involvement UiTM Kelantan

[]UMK

[]Enhance the soft skills Help others Release stress – – –

[]Concern with others Create good characteristics Help others Gain new experience Show responsibility toward others Gain satisfaction in helping others

[]than one year experience in SRC and came from a family that did not involve in volunteerism. Based on Table 2, the student leaders had their own opinions on the reasons why they involved in volunteerism activities. The UMK SRC members offered more reasons saying that concern with others create good characteristics, help people, gain new experience, show responsibility, and gain satisfaction in helping other people as the factors for their CS engagement. Meanwhile, UiTM Kelantan SRC members admitted that enhancing the soft skills, helping others, and releasing stress were the reasons for their involvement. From the researchers observation, UMK SRC provide better reasons in volunteerism involvement because most of them in degree level thus the level of maturity is ahead compared to diploma SRC in UiTM Kelantan. Table 3 Participation and experience in volunteerism activities Participation and experience

[]UiTM Kelantan

[]UMK

[]Yes

[]No

[]Yes

[]Previous volunteerism activities experience

[](100 %)12

[]–

[](80 %)12

[](20 %) 3

[]Currently participating in volunteerism activities

[](75 %) 9

[](25 %) 3

[](93.3 %)14

[](6.7 %) 1

[]Would you like to do volunteerism activities related to your curricular only

[](33.3 %) 4

[](66.7 %) 8

[](20 %) 3

[](80 %) 12

[]Would you like to do volunteerism activities for performance evaluation

[](75 %) 9

[](25 %) 3

[](40 %) 6

[](60 %) 9

[]Would you like to join any event of volunteerism activities

[](100 %) 12

[]–

[](100 %)15

[]–

[]Have you been consistently involved in any volunteerism activities

[](58.3 %) 7

[](41.7 %) 5

[](93.3 %) 14

[](6.7 %) 1

[]Primary reason that would motivate enrolment in volunteerism activities? Module/course requirements Interest Develop/learn new skills Career/future plan Satisfaction (to help others)

[]8.3 % (1) 41.7 % (5) 25 % (3) – 25 % (3)

[][email protected]

[]– 46.7 % (7) 13.3 % (2) 6.7 % (1) 33.3 % (5)

[]No

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[]Table 3 shows the experience and participation in volunteerism activities among SRC members from both universities. Most of the members of SRC from UMK (80 %) and UiTM Kelantan (100 %) had experience in volunteerism activities. Most of them were currently participating in volunteerism. Most of these student leaders disagreed that their involvement in CS was entirely curricular. In addition, all 27 respondents showed interest to join the activities in the future with most of them have consistently involved in community service. On top of that, one of the research objectives is to find the answer on primary reason that motivate student’s leader in volunteerism activities. The main reason stated was the interest that they had for the activities (Table 4). All UiTM Kelantan SRC agreed that they able to make important contribution in volunteerism activities and only 66.7 % feel the same way from UMK SRC. Most of the respondents agreed experience in volunteerism activities is worthwhile. Majority also agreed and strongly agreed that they enjoy the experience in volunteerism activities. Besides, most of the respondents felt that their experience in volunteerism activities is personally fulfilling (Table 5). Majority agreed and strongly agreed that volunteerism activities helped them to understand the importance of those activities. 50 % of the UiTM Kelantan SRC agreed and 53.3 % of the UMK SRC strongly agreed that they learned to deal with a greater variety of people through volunteerism activities. Most of them either agreed or strongly agreed that volunteerism activities allowed them to gain a new perspective on things. In addition, most of the respondents also agreed that volunteerism activities let them learn through direct “hands on” experience. Based on Table 6, majority of UiTM Kelantan SRC agreed that volunteerism activities experience will look good on their resume but it is not for UMK SRC which majority indicated not relevant. Majority admitted that volunteerism activities can help them to complete assignments and projects in a better way. Most of them either agreed or strongly agreed that their volunteerism activities experience Table 4 Satisfaction outcomes in volunteerism activities Satisfaction outcomes

[]UiTM Kelantan

[]UMK

[]Strongly agree

[]Agree

[]Not relevant

[]Strongly agree

[]Agree

[]Not relevant

[]I have been able to make an important contribution in volunteerism activities

[]–

[]100 % (12)

[]–

[]33.3 % (5)

[]66.7 % (10)

[]–

[]The experience in volunteerism activities has been a worthwhile one

[]16.7 % (2)

[]66.7 % (8)

[]16.7 % (2)

[]33.3 % (5)

[]46.7 % (7)

[]20 % (3)

[]I am enjoying my experience in volunteerism activities

[]33.3 % (4)

[]66.7 % (8)

[]–

[]53.3 % (8)

[]46.7 % (7)

[]–

[]My experience in volunteerism activities has been personally fulfilling

[]33.3 % (4)

[]58.3 % (7)

[]8.3 % (1)

[]33.3 % (5)

[]46.7 % (7)

[]20 % (3)

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[]Table 5 Understanding outcomes in volunteerism activities Understanding outcomes

[]UiTM Kelantan

[]UMK

[]Strongly Agree

[]Agree

[]Strongly Agree

[]Agree

[]Volunteerism activities helped me to understand the importance of those activities

[]41.7 % (5)

[]58.3 % (7)

[]33.3 % (5)

[]66.7 % (10)

[]I have learned how to deal with a greater variety of people through volunteerism activities

[]50 % (6)

[]50 % (6)

[]53.3 % (8)

[]46.7 % (7)

[]Volunteerism activities allow me to gain a new perspective on things

[]33.3 % (4)

[]66.7 % (8)

[]66.7 % (10)

[]33.3 % (5)

[]Volunteerism activities let me learn through direct “hands on” experience

[]41.7 % (5)

[]58.3 % (7)

[]46.7 % (7)

[]53.3 % (8)

[]Table 6 Career outcomes in volunteerism activities Career outcomes

[]UiTM Kelantan

[]UMK

[]Strongly Agree

[]Agree

[]Not relevant

[]Strongly Agree

[]Agree

[]Not relevant

[]Volunteerism activities experience will look good on my resume

[]25 % (3)

[]75 % (9)

[]–

[]13.3 % (2)

[]40 % (6)

[]46.7 % (7)

[]Volunteerism activities can help me complete my assignments and projects in a better way

[]16.7 % (2)

[]66.7 % (8)

[]16.7 % (2)

[]13.3 % (2)

[]53.3 % (8)

[]33.3 % (5)

[]Volunteerism activities experience drive me to continue involve it in my future plan

[]16.7 % (2)

[]83.3 % (10)

[]–

[]40 % (6)

[]53.3 % (8)

[]6.7 % (1)

[]It is worth it to join volunteerism activities

[]25 % (3)

[]75 % (9)

[]–

[]46.7 % (7)

[]33.3 % (5)

[]20 % (3)

[]drive them to continue involve it in their future plan. Joining volunteerism activities was also worth it according to majority of student leaders (Table 7). 75 % of the respondents from UiTM Kelantan and 73.3 % from UMK agreed that volunteerism activities make them feel needed. 66.7 % of the respondents agreed that volunteerism activities make them feel better about themselves. Majority also either strongly agreed or agreed that volunteerism activities make them feel important. Most of the SRC agreed that involving in volunteerism activities is a way to make new friends (Table 8). Mean comparison among volunteerism activity outcomes between universities show that the highest mean is for understanding at 17.7 for UiTM Kelantan SRC and 18.2 for UMK SRC. But the lowest outcomes are different, UiTM Kelantan

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[]Table 7 Enhancement outcomes in volunteerism activities Enhancement outcomes

[]UiTM Kelantan

[]UMK

[]Strongly agree

[]Agree

[]Not relevant

[]Strongly agree

[]Agree

[]Not relevant

[]Volunteerism activities make me feel needed

[]16.7 % (2)

[]75 % (9)

[]8.3 % (1)

[]13.3 % (2)

[]73.3 % (11)

[]13.3 % (2)

[]From volunteerism activities, I feel better about myself

[]25 % (3)

[]66.7 % (8)

[]8.3 % (1)

[]26.7 % (4)

[]66.7 % (10)

[]6.7 % (1)

[]Volunteerism activities make me feel important

[]16.7 % (2)

[]66.7 % (8)

[]16.6 % (2)

[]–

[]60 % (9)

[]40 % (6)

[]Volunteerism activities are a way to make new friends

[]41.7 % (5)

[]58.3 % (7)

[]–

[]40 % (6)

[]60 % (9)

[]–

[]Table 8 Comparative mean outcomes in volunteerism activities Volunteerism outcomes

[]UiTM Kelantan Mean Std. deviation

[]UMK Mean

[]Std. deviation

[]Satisfaction Understanding Career Enhancement

[]16.6 17.7 16.7 16.4

[]17.1 18.0 15.7 16.2

[]1.77 1.56 2.19 1.42

[]0.99 1.83 1.37 2.54

[]SRC’s response to enhancement is at mean 16.4 and standard deviation is at 2.54. UMK SRC respond to career is at mean 15.7 and standard deviation is at 2.19.

[]5 Conclusion and Recommendation It can be concluded that majority of SRC members from both universities had a positive view of CS activities. This can be seen from their active involvement in the program and interest shown when asked about the future CS engagement. It is also interesting to note that the student leaders’ interest in the activity was not purely curricular, making it easier for the institution to expose the SRC members to community-based activity as the leaders were not academically driven. Denby (2008) also stated that engaged learning involves educating students about the social and political issues that affect the community. It could include activities such

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[]as service work, working groups on policy reform, and collective action toward social change. Majority also felt the satisfaction gained from their involvement with most having a good understanding on the purposes of doing the activity. They also could see the significance of CS on their future career and had a positive view of themselves, admitting that the involvement enhanced them as a person. This in line with the findings by Astin et al. (2000) reporting students’ increased personal values when they involved in community-based activities. With all the promising outcomes, universities should take advantage on the student leaders’ optimistic view on CS and expose them more to this beneficial activity as they can certainly be a good role model for all the students as far as CS involvement is concerned.

[]References Abrokwah, J., Mensah S. E. M., & Teye P. K. (2010). Attitude and perception of university students towards community service. Universiti of Cape Coast. Astin, A. W., Vogelgesang, L., Ikeda, E., & Yee, J. (2000). How service learning affects students. UCLA: Higher Education Research Institute. Bender, G., & Jordaan, R. (2007). Student perceptions and attitudes about community service-learning in the teacher training curriculum. South African Journal of Education, 27, 631–654. Birmingham, C. (2013). Ways how high school students develop leadership skills through community service, Helium Inc. Retrived June 15, 2014 from http://educationspace360.com Canadian Alliance of Community Service Learning (CACSL). Retrieved March 18, 2010 from www.communityservicelearning.ca Commission on the Future of Volunteering. (2008). Report of the commission on the future of volunteering and manifesto for change. London. Retrieved from http://www. fairplayforchildren.org/pdf/1216564640.pdf Denby, R. (2008). Impact of service-learning on student’s sense of civic responsibility masters in education. Faculty of Education: The University of Western Ontario, London. Duffy, J., Moeller, W., Kazmer, D., Crespo, V., Barrington, L., Barry, C., et al. (2008). Service-learning projects in core undergraduate engineering courses. International Journal for Service Learning in Engineering, 3(2), 18–41. Eyler, J., Giles, D. E., & Schmeide, A. (1996). A practitioner’s guide to reflection in service-learning: student voices and reflections. Nashville: Vanderbilt University. Furco, A. (1996). Service-learning: A balanced approach to experiential education. Expanding boundaries: Service and learning. Washington DC: Corporation for National Service, (pp. 2– 6). Retrieved from http://www.ucalgary.ca/servicelearning/files/servicelearning/Furco_1996_ A_Balanced_Approach.pdf Kuh, G. D. (2001). Assessing what really matters to student learning: Inside the national survey of student engagement. Change, 33(3), 10–17, 66. Kuh, G. D. (2003). What we’re learning about student engagement from NSSE. Change, 35(2), 24–32. Latham, M. (n.d.). Young volunteers: The benefits of community service. University of Nevada.

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[]Margit, H. (2014). Types of service-learning activities. Retrieved June 15, 2014 from http://tilt. colostate.edu/sl/faculty/types.cfm Niyazi, F. (1996). A route to opportunity: Volunteering by young people. London: National Centre for Volunteering. Pascarella, E. T., Terenzini, P. T., & Blimling, G. S. (1994). The impact of residential life on students. In C. C. Schroeder & P. Mable (Eds.), Realizing the educational potential of residence halls (pp. 22–52). San Francisco: Jossey-Bass. Sax, L. J., & Astin, A. W. (1997). The benefits of service: Evidence from undergraduates. Educational Record, 78(3/4), 25–32. Smith, D. J. (1999). Poor marketing or the decline of altruism: Young people and volunteering in the United Kingdom. International Journal of Nonprofit and Voluntary Sector Marketing, 4(4), 372–377. Wilson, A., & Hicks, F. (2010). The Business Case Corporate Citizenship – City of London.New York: McGraw-Hill. Zhao, C. M., & Kuh, G. D. (2004, March). Adding value: Learning communities and student engagement. Research in Higher Education, 45(2).

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[]Chapter 19

[]Assessing the Relationship Between Job Satisfaction and Organizational Commitment: Public and Private Perspective in Malaysia Norlaili Harun, Mas’udah Asmui, Noorsuraya Mohd Mokhtar, Noor Dalila Musa and Mohd Rizal Razak

[]Abstract Organizational commitment refers to the degree of attachment and loyalty that the employees feel and dedicate towards their organization, the willingness to work hard and exert high level of efforts and the desire to remain with that organization. Adopting a structured questionnaire, the present study focused on employees from the perspective of public and private universities in Malaysia. This study focused on the academic and administrative employees from both universities. The study proposes to identify the relationship between job satisfaction and organizational commitment between both universities. Secondly, it shall investigate whether any significant differences in job satisfaction and organizational commitment between employees of the public and private universities exist. Lastly, the objective of the study is to identify the dimension in job satisfaction that scores highest contribution in organizational commitment. The result of study indicates that there are significant moderate and positive relationships between job satisfaction and

[]N. Harun (&) M. Asmui N.M. Mokhtar N.D. Musa Faculty of Business Management, Universiti Teknologi MARA Pahang, 26400 Bandar Tun Razak Jengka, Pahang, Malaysia e-mail: [email protected] M. Asmui e-mail: mas'[email protected] N.M. Mokhtar e-mail: [email protected] N.D. Musa e-mail: [email protected] M.R. Razak Faculty of Computer and Mathematical Sciences, Universiti Teknologi MARA Pahang, 26400 Bandar Tun Razak Jengka, Pahang, Malaysia e-mail: [email protected] © Springer Science+Business Media Singapore 2016 M.A. Abdullah et al. (eds.), Regional Conference on Science, Technology and Social Sciences (RCSTSS 2014), DOI 10.1007/978-981-10-1458-1_19

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[]organizational commitment from both universities. It is also found that coworkers were the highest contributing factors in job satisfaction dimension followed by reward and job content. Keywords Job satisfaction Private universities

[]Organizational commitment Public universities

[]1 Introduction Organizational commitment (OC) has become the crucial focus to the organization (Abdullah and Ramay 2012) and is said to be the bond between employees and the organization (Buchanan 1974) because committed employees can affect the success of an organization. Organizational commitment is also an important factor which motivates people to work towards achieving objectives of the organization. Globalization has brought many opportunities as well as challenges for organizations. The organizations need to sustain and flourish and this need has brought an organization to realize that employees are assets, not cost. Employees can only be assets for the organization if they are committed to their organization because satisfied and committed workers are true assets of an organization (Ahmad et al. 2014). Committed employees are not only needed for short term but most importantly to hold them in a long term period in order to raise the efficiency and effectiveness of the organization. Highly committed employees usually make additional contributions to the organization than the required ones and these employees are very valuable (Luthans et al. 2006). Moreover, committed employees may easily accept and adhere to the organizational objectives and goals (Valentine et al. 2002). There was a lot of research on organizational commitment and job satisfaction (Malik et al. 2010; Allen and Meyer 1990) especially in academic institutions. According to Malik et al. (2010), employees are the key component in educational system and overall performance of universities depends on their level of commitment and job satisfaction. Understanding of how they become satisfied and committed to their universities is really important to boosting up their performance. Therefore, this study was another effort to identify the relationship between job satisfaction and organizational commitment among employees from public and private universities in Pahang state. Moreover, it shall investigate whether any significant differences in job satisfaction and organizational commitment between employees of the public or private universities exist. Lastly, the study tries to identify which dimension in job satisfaction scores the highest contributions in organizational commitment.

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[]1.1

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[]Research Objectives

[]The study proposes to: 1. Identify the relationship between job satisfaction and organizational commitment among employees in public and private universities in Pahang. 2. Investigate the difference between job satisfaction and organizational commitment among employees in public and private universities in Pahang. 3. Identify which dimension in job satisfaction scores the highest contributions in organizational commitment.

[]1.2

[]Research Questions

[]1. Is there any significant relationship between job satisfaction and organizational commitment among employees in public and private universities? 2. Is there any significant difference between job satisfaction and organizational commitment between both universities? 3. What is the dimension in job satisfaction that gives the highest contribution in organizational commitment?

[]1.3

[]Research Significance

[]The enhancement in the business of services has increased the significance of job satisfaction, especially in service sector employees. This is because employees have more direct interaction with their clients and effectiveness of an organization is mostly dependent on the performance of its employees. Educational sector has been selected to test the job satisfaction and organizational commitment of the employees because in this sector the workload is high and long hours often are the norms of the organization. Moreover, according to Ahmad et al. (2014), the findings of this research study are important for the service sector because in service sector, employees of the organization are very important for the growth of organization. The findings can form a good basis to enhance the human resource management policy in both public and private universities and could provide important contribution to both universities in terms of organizational behavior management. Moreover, this research study hopes to add the researchers’ understanding in relation to employees’ job satisfaction and organizational commitment (affective commitment, normative commitment, continuous commitment) in the educational sector.

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[]Lastly from this study, the researchers can initiate a discussion on the importance of job satisfaction for the employees and how to value employees’ organizational commitment (affective commitment, normative commitment, continuous commitment) in the organization.

[]1.4

[]Scope/Limitation of the Study

[]Respondents were employees in public and private universities in Pahang. Thus, the results may not be generalized to other professions and to other states. Researchers also have difficulty in getting back the questionnaires as some of the respondents were not cooperative and did not return the questionnaires as requested.

[]2 Literature Review 2.1

[]Organizational Commitment

[]Organizational commitment is defined as an employee’s strong belief in and acceptance of an organization’s goal and values, effort on behalf of the organization to reach these goals and objectives, and strong desire to maintain membership in the organization (Hunt and Morgan 1994; Ismail 2012). Ismail (2012) further referred organizational commitment as the employee’s emotional attachment to, identification with, and involvement in the organization. According to Allen and Meyer (1990), organizational commitment is defined as the employees’ feelings of obligation to stay in the organization and this commitment can take place in three forms namely, affective, normative, and continuance commitment. In other words, organizational commitment is employees’ willingness to get involved in any organizational policies and procedures as they feel self-belonging towards their organizations. It is very critical to develop and increase organizational commitment among employees as they are carrying out the organizational policies and procedures. In this study, the researchers referred to the model of organizational commitment developed by Meyer and Allen (1991) who focuses on three components of commitment which are affective, normative, and continuance commitment. Affective commitment is the affective bond an individual feels toward the organization, characterized by identification and involvement with the organization as well as enjoyment in being a member of the organization (Allen and Meyer 1990; Meyer and Allen 1997; Mowday et al. 1982; Celik 2008). Normative commitment is the extent to which a person is obligated to stay with the organization (Meyer and Allen 1991, 1997; Celik 2008). Continuance commitment is the extent to which a

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[]person needs to stay with the organization, due to the costs of forgoing benefits associated with an individual’s investments in the organization (i.e., ‘side bets’; Becker 1960; Celik 2008).

[]2.2

[]Job Satisfaction

[]According to Malik et al. (2010), job satisfaction is the way employees feel about their jobs and different aspects of their jobs. Job satisfaction as defined by Locke (1969), is an emotional state related to the positive or negative appraisal of job experiences and can function as motivator which contributes to job satisfaction and/or which lead to job dissatisfaction (Herzberg et al. 1959). Among the reasons which contributed to job satisfaction include employee attitudes, pay, promotion, supervision, fringe benefits, contingent rewards, operating procedures, coworkers, nature of work, and communication (Spector 1985; Anari 2011). Another definition developed by Janssen (2001) said that job satisfaction means how employees feel about work and the feelings may be positive or negative. Janssen said that when employees have more positive feelings towards their workplace, they have higher level of job satisfaction. This means that greater job satisfaction creates more positive emotions in the mind of employees about their job (Ahmad et al. 2014).

[]2.3

[]Job Satisfaction and Organizational Commitment

[]Organizational commitment in relation to job satisfaction has received considerable attention in past research (Ismail 2012). Organizational commitment continues to be influenced by job experiences, with many of the same factors that lead to job satisfaction and contributing to organizational commitment or lack of commitment (Hellriegel et al. 2001; Ismail 2012). Organizational commitment is interrelated with job satisfaction. When employees are committed to completing their tasks, this indicates that they are satisfied and happy doing their tasks. As stated by previous researchers, job satisfaction could be defined as positive feelings that employees have towards their jobs (Schermerhorn et al. 1997; Celik 2008) or satisfaction and loyalty that employees have towards their jobs (George and Jones 1996; Celik 2008). Busch et al. (2012) conducted their study among teaching staff of Norwegian colleges and found that there was positive correlation between job satisfaction and job commitment for the whole sample of teaching staff. They also found that the faculty employees believed their own abilities for the successful execution of research, lectures, and student communication.

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[]3 Research Methodology This research uses the quantitative method whereby it employs the use of structured questionnaires as the primary mode of data collection. The unit of analysis for the study consisted of both academicians and administrative staff employed at UiTM Pahang, (Jengka Branch) and University College Shahputra, Kuantan. The sampling frame applied in this study was drawn from the Administrative Department of both the public and private universities while the technique used for this study was stratified random sampling. It is because stratified random sampling ensures a high degree of representatives of all the strata or layers in the population (Salkind 2009). The total number of population for academicians and administrative employees employed at UiTM Pahang, (Jengka Branch) was 722 while University College Shahputra employed 128 of academicians and administrative employees. Researchers chose to refer to Krejcie and Morgan (1970), which stated that with a population of 722 of employees at UiTM Pahang, (Jengka Branch), the sample size should be 248. On the other hand, the sample size of University College Shahputra should be at least 98. Therefore, 248 academicians and administrative employees at UiTM Pahang, (Jengka Branch) and 98 academicians and administrative employees from University College Shahputra, Kuantan were approached to fill out the questionnaires. All of the questionnaires distributed to University College Shahputra were returned after two weeks of distribution giving a response rate of 100 %. However, only 182 of the questionnaires distributed to academicians and administrative employees at UiTM Pahang, (Jengka Branch) were returned which gives 73.4 % of the response rates. Survey instrument used for data collection in this study was a survey questionnaire. The questionnaire was distributed by hand to each of the selected respondent involved in the study. The survey instrument has been adapted based on previous study which has questions about job satisfaction from Spector (1985) while organizational commitment has been adopted from Allen and Meyer (1990). The questionnaire consisted of three parts, which were as follows: • part A or classification on the demographic variables such as gender, age, educational level, marital status, and monthly income; • part B focused on the organizational commitment; and • part C related to the questions on how respondents value their level of job satisfaction. In measuring the answers for Part B and Part C, the researchers used the 5-point Likert scales such as 1-Strongly Disagree, 2-Disagree, 3-Neutral, 4-Agree, and 5-Strongly Agree. All the data were analyzed using Statistical Package for Social Sciences (SPSS) version 21.0. Procedures used include descriptive statistics for mean, frequency and percentage, followed with reliability test, normality test, and correlation test.

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[]4 Results and Discussions In order to assess the relationship between job satisfaction and organizational commitment, the correlation has been applied. The results show both the public and private universities have a significant moderate and positive relationship between organizational commitment and job satisfaction (refer to Tables 1 and 2). This indicates that job satisfaction and organizational commitment have impact and are interdependent on each other. The result has also answered Research Question 1, is there any significant relationship between job satisfaction and organizational commitment among employees in public and private universities? As shown in Table 1, the organizational commitment was significantly correlated with job satisfaction in public university. There was a significant moderate and positive relationship between organizational commitment and job satisfaction, r(182) = 0.670, p < 0.05. As shown in Table 2, the organizational commitment was significantly correlated with job satisfaction at private university. Thus, the result confirmed that there was a significant moderate and positive relationship between organizational commitment and job satisfaction, r(98) = 0.567, p < 0.05. Table 1 Correlation between organizational commitment and job satisfaction at public university Organizational commitment

[]Pearson correlation

[]Sig. (2 tailed) N Job satisfaction Pearson correlation Sig. (2 tailed) N *Correlation is significant at the 0.01 level

[]Organizational commitment

[]Job satisfaction

[]1

[]0.670*

[]182 0.670* 0.01 182 (2-tailed)

[]0.01 182 1 182

[]Table 2 Correlation between organizational commitment and job satisfaction at private university Organizational commitment

[]Pearson correlation

[]Organizational commitment

[]Job satisfaction

[]1

[]0.567*

[]Sig. (2 tailed) N 98 Job satisfaction Pearson correlation 0.567* Sig. (2 tailed) 0.01 N 98 *Correlation is significant at the 0.01 level (2-tailed)

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[]Table 3 Difference between job satisfaction and organizational commitment between both universities Levene’s test for equality of variances F Sig. t df meanSectionB

[]meanSectionC

[]Equal variances assumed Equal variances not assumed Equal variances assumed Equal variances not assumed

[]0.265

[]0.379

[]0.607

[]0.539

[]Sig. (2-tailed)

[]−7.072

[]278

[]0.000

[]−6.991

[]192.192

[]0.000

[]−4.394

[]278

[]0.000

[]−4.473

[]209.005

[]0.000

[]In order to answer Research Question 2, whether there is any significant difference between job satisfaction and organizational commitment between both universities, Table 3 shows that there was a significant different between job satisfaction and organizational commitment. For answering Research Question 3, what is the dimension in job satisfaction that gives the highest contribution in organizational commitment, principal axis factor analysis with varimax rotation was conducted to assess the relationship between job satisfaction and organizational commitment for the 11 items of the Job Satisfaction Questionnaires. (The assumption of independent sampling was met. The assumptions of normality, linear relationships between pairs of variables and the variables being correlated at a moderate strong positive level were checked). Three factors were requested based on the fact that the items were designed to index three constructs: reward, coworkers, and job content. After rotation, the first factor accounted for 35.9 % of the variance, the second factor accounted for 18.4 % and the third factor accounted for 17.6 %. Table 4 displays the items and factor loadings for the rotated factors with loadings less than 0.30 omitted to improve clarity. The first factor which seems to index reward had very strong loadings on the first three items which are “When I do a good job, I receive the recognition that I should receive”, “I feel satisfied with my chances for salary increases” and “The benefits we receive are as good as most other organizations offer”. The second factor which seemed to index coworkers had strong loadings on the next four items in Table 4. “I enjoy working with my coworkers” and “I feel satisfied working with my coworkers”. The third factor which seemed to index strong loadings from job content on the last five items in the table. “I really understand my job descriptions” had its highest loading from the job content. As a result, the researchers concluded that coworkers were the highest contribution factor in job satisfaction dimension. It showed that employees would be more satisfied with their jobs and committed to the organization when they are working with pleasant colleagues.

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[]Table 4 Dimension of job satisfaction Rotated component matrixa Component 1 2

[]3

[]When I do a good job, I receive the recognition that I should receive 0.878 I feel satisfied with my chances for salary increases 0.870 The benefits we receive are as good as most other organizations offer 0.809 Communication seems good within this organization 0.733 Many of our rules and procedures make doing a good job simple 0.672 0.316 My supervisor always gives feedback regarding my job performance 0.596 0.322 0.357 Those who do well on the job stand a better chance of being promoted 0.584 0.451 I enjoy working with my coworkers 0.926 I feel satisfied working with my coworkers 0.926 I really understand my job descriptions 0.855 I am satisfied with my job 0.309 0.749 Extraction method: principal component analysis. Rotation method: varimax with Kaiser normalizationa a Rotation converged in 5 iterations

[]5 Conclusions It is undeniable that job satisfaction and organizational commitment are interdependent and will affect the efficiency and productivity of an organization. This analysis has discovered that job satisfaction and organizational commitment have positive relationship towards employees from both the public and private universities. This is supported by Busch et al. (2012) in their study where they found that there was positive correlation between job satisfaction and job commitment among teaching staff of Norwegian colleges. This shows that the more satisfied the employees, the greater committed they are. As a result this will lead to the retention of employees in the organization. This study also describes that employees’ commitment can be enhanced if the employees are very satisfied with their job. If employees are committed, they are reluctant to exit from their current job. Increased commitment will also increase their efficiency. However, in order to increase the organizational commitment, the coworkers, the rewards and the job content play critical role, as the results show that these three are core factors in increasing commitment in the educational sector. Future research should incorporate a broader and more representative sample of employees from educational sectors so that the preliminary findings of the present study might be validated. Moreover, employee retention, organizational culture, or the employees’ behavior can also be the future direction for research.

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[]References Abdullah, A., & Ramay, I. M. (2012). Antecedents of organizational commitment of banking sector employees in Pakistan. Serbian Journal of Management, 7(1), 89–102. Ahmad, N., Iqbal, N., Javed, K., & Hamad, N. (2014). Impact of organizational commitment and employee performance on the employee satisfaction. International Journal of Learning Teaching and Educational Research, 1(1), 84–92. Allen, N. J., & Meyer, J. P. (1990). The measurement and antecedents of affective, continuance and normative commitment to the organizations. Journal of Occupational Psychology, 63, 1–18. Anari, N. N. (2011). Teachers: Emotional intelligence, job satisfaction, and organizational commitment. Journal of Workplace Learning, 24(4), 256–269. Retrieved July 25, 2014 from www.emerladinsight.com/1366-5626.htm Becker, H. S. (1960). Notes on the concept of commitment. American Journal of Sociology, 66, 32–42. Buchanan, B, I. I. (1974). Building organizational commitment: The socialization of managers in work organizations. Administrative Science Quarterly, 19, 533–546. Busch, T., Fallan, L., & Pettersen, A. (2012). Disciplinary differences in job satisfaction, self-efficacy, goal commitment and organisational commitment among faculty employees in Norwegian colleges: An empirical assessment of indicators of performance. Quality in Higher Education, 4(2), 137–157. Celik, C. (2008). Relationship of organizational commitment and job satisfaction: A field study of Tax Office employees. Retrieved July 25, 2014 from http://ecs.epoka.edu.al/index.php/icme/ icme2008/paper/view/19/14 George, J. M., & Jones, G. R. (1996). Understanding and managing organizational behavior reading. Massachusetts: Addison-Wesley Publishing Company. Hellriegel, D., Slocum, J. W., & Woodman, R. W. (2001). Organizational behaviour (9th ed.). Ohio: South-Western Publishing. Herzberg, F., Mausner, B., & Snyderman, B. (1959). The motivation to work (2nd rev. ed.). New York: Wiley. Hunt, S. H., & Morgan, R. M. (1994). Organizational commitment: One of many commitments or key mediating constructs? Academy of Management Journal, 37, 1568–1587. Ismail, N. (2012). Organizational commitment and job satisfaction among staff of higher learning education institutions in Kelantan (Master of Human Resource Management, Universiti Utara Malaysia, 2012). Retrieved July 25, 2014 from http://etd.uum.edu.my/3003 Janssen, O. (2001). Fairness perceptions as a moderator in the curvilinear relationships between job demands, and job performance and job satisfaction. Academy of Management Journal, 44(5), 1039–1050. Krejcie, R. V., & Morgan, D. W. (1970). Determining sample size for research activities. Educational and Psychological Measurement. Locke, E. A. (1969). What is job satisfaction? Organizational Behavior and Human, 4, 309–336. Luthans, F., Zhu, W., & Avolio, B. (2006). Impact of work attitudes across cultures. Journal of World Business, 41(2), 121–132. Malik, M. E., Nawab, S., Naeem, B., & Danish, R. Q. (2010). Job satisfaction and organizational commitment of university teachers in public sector of Pakistan. International Journal of Business and Management, 5(6), 17–26. Meyer, J. P., & Allen, N. J. (1991). A three-component conceptualization of organizational commitment. Human Resource Management Review, 1(1), 61–89. Meyer, J. P., & Allen, N. J. (1997). Commitment in the workplace. Thousand Oaks, CA: Sage Publications.

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[]Mowday, R. T., Porter, L. W., & Steers, R. M. (1982). Employee-organization linkages: The psychology of commitment, absenteeism and turnover. New York: Academic Press. In A. E. Reichers (Ed.), A review and reconceptualization of organizational commitment. Academy of Management Review, 10(3), 465–476. Salkind, N. J. (2009). Exploring research (7th ed.). Upper Saddle River, New Jersey: Pearson Prentice Hall, Inc. Schermerhorn, J., Hunt, J., & Osborn, R. (1997). Organizational behavior. NY: J.W. and Sons Inc. Spector, P. E. (1985). Measurement of human service staff satisfaction: Development of the job satisfaction survey. American Journal of Community Psychology, 13(6), 693–713. Valentine, S., Godkin, L., & Lucero, M. (2002). Ethical context, organizational commitment, and person-organization fit. Journal of Business Ethics, 41(4), 349–360.

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[]Chapter 20

[]Exploring the Attributes of Pathological Smartphone Use (PSU) Janiffa Saidon, Rosidah Musa, Mior Harris Mior Harun and Ainul Azreen Adam

[]Abstract Smartphone has become a core part of how people live their lives. Pathological Smartphone Use (PSU) or addiction to a smartphone is an emerging phenomenon that needs to be implicitly understood and addressed effectively. There are extensive studies on Pathological Internet Use (PIU) but empirical research on PSU is still lacking. In terms of identifying PSU effects, several studies have emphasized on the negative outcomes of PSU that make it impossible to see the positive side of this technological innovation. In response to this issue, the primary goal of this paper is to identify the attributes of PSU. Focus groups are used to collect a broad qualitative understanding of perceptions and to gain richer insights pertaining to core issues of PSU. Panels involved are among smartphone users’ age: 20s, 30s and 40s. The focus groups are conducted in three different sessions and thematic analysis has been carried out. By identifying the factors that contribute to PSU, government and relevant agencies could formulate guidelines and policies to curb the negative outcomes of PSU and capitalize on the benefits gained. This initiative is in tandem with the nation’s NKEA of developing innovative human capital in accelerating the innovative economy, enhancing the quality of life and wellness of the citizen. The findings showed that time spent could be the factors in rating a person as addictive to smartphone and the small screen size is found to be the main drawback towards mobile shopping adoption which link directly to the future direction of the research. Keywords Internet pathology

[]Online addiction Smartphone addiction

[]J. Saidon (&) R. Musa M.H.M. Harun A.A. Adam Faculty of Business Management, Universiti Teknologi MARA, 40450 Shah Alam, Selangor, Malaysia e-mail: [email protected] © Springer Science+Business Media Singapore 2016 M.A. Abdullah et al. (eds.), Regional Conference on Science, Technology and Social Sciences (RCSTSS 2014), DOI 10.1007/978-981-10-1458-1_20

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[]1 Introduction Young urban smartphone users are described as the fastest growing internet populations and the amount of time they spend on the smartphone has tripled in the last 10 years (Nielsens Mobile Insights Malaysia 2010). According to the Economic Planning Unit, the number of internet users in Malaysia in 2006 was 518.8 per 1000 people. From the 2006 figures, Malaysia ranked higher than Thailand (140.6 per 1000) and Indonesia (92.5 per 1000), but lower than Singapore (663.0 per 1000) and United States (703.4 per 1000) (Nielsens Mobile Insights Malaysia 2010). This figure shows Malaysia has been rapidly adopting online technologies and services, especially amongst children and young people. Despite the staggering rate of internet adoption among Malaysians, as to date, there are no studies in identifying PSU predictors and effects among Malaysian young urban smartphone users. Several similar studies suffered in small sample sizes and convenient sampling with other local studies (Soh 2010). Thus, this study will be an exploratory study of determining the predictors among young urban smartphone users in Malaysia with a modified Media System Dependency (MSD) theory as recent studies on PSU have always employed only Use and Gratification (U&G) theory (Chigona et al. 2008) and other methods such as Problematic Celular Mobile Phone Use Questionnaires (PCPU-Q) (Augner and Hacker 2012) and Mobile Phone Addiction Scale (MPAS) (Hong et al. 2012). According to Hong et al. (2012), smart phone addiction could be a route to decreasing anxiety and females are more likely to use mobile phones to maintain social relations. However, the use of smartphones in schools causes mobile phone addiction (Ehrenberg et al. 2008). Mobile phone addiction among Millennial Teens lead them to become high internet dependants because 13 % teens from the age of 16 to 17 access the internet from their mobile phones (Nielsens Mobile Insights Malaysia 2010). Recently, a study about computer game playing addiction revealed that about 12 % of the players displayed pathological behavior (Batthyany et al. 2009). In addition, Koivusilta et al. (2007) documented a possible association between poor health and mobile phone use in adolescents. In a study by Bianchi and Phillips (2005), extraversion, young age, and low self-esteem were found to be related to Problematic Mobile Phone Use (PU) and also parents and peers influences (Soh 2010). As to date, no deeper insight has been provided over users’ Social Networking Sites (SNS) usage patterns and users’ personality in predicting PSU. To include, there are three major socialization agents that influence children’s consumer behavior from the early research findings. Therefore, this study is considering these three socialization agents, SNS and users’ personality as the factors that determine PSU.

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[]2 Method This paper is focusing on the first phase of the study which is a qualitative phase that used the focus group free elicitation to achieve the research objectives in identifying the values and attributes relevant to the subject being studied. Later, in the future study (second phase) which draws upon the results in this phase will unravel the underlying attributes of pathological smartphone use (PSU). Important indicators are identified and measurement scale will be developed in the form of survey instrument. The targeted respondents are among urban smartphone users’ aged 20–49, often early adopters of new technologies as well as extensive users of the Internet.

[]2.1

[]Focus Group

[]Content analysis in the form of focus groups interviews is done to gather information about the salient attributes of PSU based on various dimension. The interviews are conducted in a special studio and the sessions are video recorded and transcribed. Three focus group sessions are organized according to specific profile of the panels. Each session comprises of 10 panels, thus 30 panels are anticipated. The 30 panels are divided into three different age groups: 20s, 30s, and 40s. Each group comprised of five males and five females panel. For each gender group there are four muslim and one non-muslim panel. Each session is held for 2 h in an informal mode with a professional moderator and three facilitators to assist in putting inputs into writing. Focus groups are perfect for ‘filing in the gaps’ of the study and this approach aimed to generate the concept and hypotheses of the study (Malfetti 1989).

[]2.2

[]Free Elicitation

[]It is a word-association, where the respondents gave their responses when asked to describe what experiential value they would like to obtain from their smartphone usage. This method allowed the panel to describe more salient attributes on communication and interaction with various important touch points in their usage. Important attributes of PSU are also discussed among panels. Table 1 are the sets of guided questions discussed among panels.

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[]Table 1 Guided questions Stage 1: usage pattern of smartphones (30 min) Today we are going to talk about smartphone that you use A. When I say SMARTPHONES, What comes to your mind? How do you feel? B. What BRAND of smartphone you use currently? C. Usage pattern: How long have you been using your smartphone? At what age you own a smart phone? How many times do you check your smartphone during a day? How long (hours) do you spend with your smartphone in a day? – What activities do you do with your smartphone? Example: SMS/Watsapp Social networking e.g. facebook, instagram, twitter Play games Info search Online shopping Online banking – Which of the activities mentioned are the most frequent/regular activities? – Which of the activities mentioned are your favorites? Why? *Moderator to discuss ONLINE SHOPPING activity in detail at later stage Stage 2: motivating factors and smartphones addiction (30 min) A. Reasons to use/motivating factors towards smartphone What triggered you to own a smart phone? Who initiated? What motivates or drives you continuously to use smart phone? What are the advantages of usingsmartphone? (Rational and Emotional benefits) What are the disadvantages of using smart phone? What are your concerns/worries/grievances about this type of phone—smartphone? B. Smart phone addiction. Now, I’m going to paint to you few scenarios… If you don’t have your smartphone with you for a day… – How do you feel? – Can you live without your smartphone for a day? Why? – What would you do? Let’s say you go for a holiday to a beautiful resort island. There is no access to internet so you cannot use your smartphone … – How do you feel? – Can you live without having access to internet through your smartphone during that period? Why? – What would you do? C. Do you notice any changes of lifestyle, behavior or personality BEFORE AND AFTER owning the smartphone? – Was it a positive or negative change? – What has changed? Before I was …, now … – Why do you think so? (continued) ● ●

[]● ● ● ●

[]● ● ●

[]● ●

[]●

[]●

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[]Table 1 (continued) Stage 3: unearthing dimensions for mobile phone shopping adoption (50 min) Let’s focus on one of the activities you mentioned just now, i.e., mobile shopping or shopping through mobile phone. (Note: Mobile phone covers smartphones, tablet, note) A. When I say Mobile shopping or shopping trough mobile phone … quickly What comes to your mind? How do you feel? How many have actually shopped/purchased through mobile phone? (get head count) How many have not shopped/purchased through mobile phone? (get head count) How many did info search like visit store’s website, but did not actually purchase through mobile phone? (get head count) B. Among Mobile phone shoppers: What did you buy? (Note any fashion items purchased e.g. clothes, hand bag, watch, head scarf, tie clip, etc.) What makes you buy through mobile phone? Note mentions example: – Ease of use – Informative—more information about products – Ease of payment—make payment directly from device to the store – To find best price/discounts—for particular brand – Enjoyment C. Among Non Mobile phone shoppers: Why didn’t you purchase through mobile phone? Any concerns/worries? Do you have the intention to shop through mobile? Why yes? Why no? How to make you feel interested to shop through mobile phone? D. Among info searchers: Why did you do info search? What were you looking for? (e.g. compare prices/discounts, obtain more info about the product, etc.) Why did you stop until info search? Why didn’t you actually buy through mobile phone? How to make you feel interested to continue shopping after searching info? E. Any suggestions to increase adoption towards mobile phone shopping? ● ●

[]●

[]●

[]●

[]●

[]● ● ● ●

[]●

[]● ●

[]3 Results and Discussion 3.1

[]Smartphone Usage Pattern

[]Based on the focus group inputs collected during the focus group sessions, as for the usage pattern of smartphone, Table 1 shows the highest frequency use of their smartphone are the users in category 20s age group but surprisingly they spent equal hours as users in category 40s age group. We can conclude that these 20s use frequently but showed somehow a touch and go style, whereas the 40s stay quite long each time they used their smartphone. Usage pattern among the three groups are described in Table 2.

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[]Table 2 Usage pattern Age group

[]Average smartphone use frequency in a day

[]Average time spent on smartphone in a day (h)

[]Top three activities through smartphone

[]20s

[]150 times

[]9

[]30s

[]80 times

[]12

[]40s

[]30 times

[]9

[]1. 2. 3. 1. 2. 3. 1. 2. 3.

[]3.2

[]Social networking Information searching On-line shopping Social networking Information searching On-line shopping Information searching Social networking On-line shopping

[]Motivating Factors and Smartphone Addiction

[]All panels feel that it is important to own a smartphone in this era since this gadget seems to have more benefits over the negative value. The 20s feel confident, up-to-date, and versatile to carry a smartphone and look modern. While the 30s agree that the gadget makes them feel confident and up-to-date, they sometimes feel that they get hooked with their work too much. They feel that they are losing some time of their personal life. And this is also agreed by the 40s. Although the 30s and 40s seem to have expressed their grievances of having the smartphones, when asked whether they can live without smartphones, the answer was NO. However, they are willing not to use their smartphone during holiday. 93 % of the panels (28 out of 30) do not mind not having the access to internet during holiday as long as they can make calls. Another 7 % of the panels (2 out of 30) feels uncomfortable by not being able to have full access to the smartphone. In conclusion all panels agreed that the smartphone has changed their lifestyle. They feel more organized and they start to connect again with their long lost friends.

[]3.3 3.3.1

[]Unearthing Dimensions for Mobile Shopping Adoption Among Mobile Phone Shoppers

[]Among the three groups, the 20s showed a higher response towards mobile shopping followed by the 30s. All the 40s did not support mobile shopping. There is no difference between gender or the ethnicity. As for the 20s, they feel that mobile shopping is much preferable because there are varieties of choices and the prices are competitive. They also go to the physical stores, pick a model and have a try but end up purchasing through mobile to get better price.

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[]Fig. 1 Factors influencing mobile shopping

[]221

[]Screen size

[]Product Image Quality

[]Retailers’ track records

[]In arbitrary order Ease of use / Retailer’s Apps

[]Sales Person Contact /Shopper Conversation Emotional Quality

[]As for the 30s, they go for mobile shopping due to time limitation. They prefer to shop through mobile during lunch time in office or while having their lunch at the restaurant. Both groups 20s and 30s agreed that they go for mobile shopping especially for branded items since there are no questions on the product quality and also items which are unique or rarely sell in Malaysia.

[]3.3.2

[]Among Non-mobile Phone Shoppers

[]Figure 1 shows the feedback shared during the session in arbitrary order of importance. The main reason they did not support mobile shopping is because the screen size is small and the products displayed are not the real products retailers are selling.

[]4 Conclusion This research aimed at understanding the attributes of PSU among the urban smartphone users. This study has shown that there are differences in usage pattern among the three age groups. The frequencies and the time spent are not correlated. These findings are contradictory to Sana Choo (2014) that claims a person who is addicted is classified according to his number of usage frequencies. It could be the other way round where the time spent could be the factor in rating a person as addictive to smartphone. The small screen size is also found to be the main drawback towards mobile shopping adoption. This is in line with many studies who

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[]found that display screen is the main factor that could pull mobile shoppers (see for example Domina et al. 2012; Kumar et al. 2013; Wang 2014). Based on the findings obtained from this study, the next phase of our research is to develop a set of questionnaire and later to conduct a pilot study for validation purposes. At the end, the ultimate objective is to propose an index for PSU. Acknowledgements The authors would like to thank the Ministry of Malaysia (MOHE) for providing the Fundamental Research Grant Scheme (FRGS), Universiti Teknologi MARA for assisting and facilitating this research and smartphone users for participating in the focus group session.

[]References Augner, C., & Hacker, G. W. (2012). Associations between problematic mobile phone use and psychological parameters in young adults. International Journal of Public Health, 57, 437– 441. Ball-Rokeach, S. J., & DeFleur, M. L. (1976). A dependency model of mass-media effects. Communication Research, 3(1), 3–21. Batthyany, D., Müller, K. W., Benker, F., & Wölfling, K. (2009). Computer game playing: Clinical characteristics of dependence and abuse among adolescents. Wiener Klinische Wochenschrift, 121, 501–509. Bianchi, A., & Phillips, J. G. (2005). Psychological predictors of problem mobile phone use. CyberPsychology and Behavior, 8, 39–51. Chigona, W., Kankwenda, G., & Majoo, S. (2008, July 27–31). The uses and gratifications of mobile internet among the South African students. In PICMET 2008 Proceedings, Cape Town, South Africa. Domina, T., Lee, S., & MacGillivray, M. (2012). Understanding factors affecting consumer intention to shop in a virtual world. Journal of Retailing and Consumer Services, 19(6), 613– 620. Ehrenberg, A., Juckes, S., White, K. M., & Walsh, S. P. (2008). Personality and self-esteem as predictors of young people’s technology use. CyberPsychology and Behavior, 11(6), 739–741. Eysenck, H. J. (1990). Biological dimensions of personality. In L. A. Pervin (Ed.), Handbook of personality theory and research (pp. 244–276). New York: Guilford. Hong, F.-Y., et al. (2012). A model of the relationship between psychological characteristics, mobile phone addiction and use of mobile phones by Taiwanese university female students. Computers in Human Behavior, 28, 2152–2159. Koivusilta, L. K., Lintonen, T. P., & Rimpelӓ, A. H. (2007). Orientation in adolescent use of information communication technology: a digital divide by sociodemographic background, educational career, and health. Scandinavian Journal of Public Health, 35, 95–103. Kumar, A., Mukherjee, A., Am, T., & Ri, T. (2013). Shop while you talk: Determinants of purchase intentions through. International Journal of Marketing and Management, 8(1), 23– 38. Nielsens Mobile Insights Malaysia. (2010). Syndicated Report. Retrieved July 25, 2013, from http://www.nielsen.com/my.html Sana Choo (2014). How often do you check your phone? Locked app data shows users unlock smartphone 110 times per day. http://www.idigitaltimes.com/. Accessed July 20, 2014. Sanchez-Martinez, M., & Otero, A. (2009). Factors associated with cell phone use in adolescents in the community of Madrid (Spain). CyberPsychology and Behavior, 12, 131–137.

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[]Sheahan, P. (2009). Generation Y: Thriving and surviving with generation Y at work. New York, NY: Hardie Grant Books. Soh, C. H. (2010). Influence of parents and peers on internet usage and addiction amongst school-going youths in Malaysia. Wang, Y. Y. (2014). The analysis of factors affecting consumer mobile shopping. Advanced Materials Research, 912–914, 1432–1435. Young, K. (2007). Cognitive behavior therapy with Internet addicts: Treatment outcomes and implications. Cyberpsychology and Behavior, 10(5), 671–679. Zorofi, M. (2013). Relationship between media usage and skills development of students. Research Journal of Applied Sciences, Engineering and Technology, 5(6), 1876–1882.

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[]Chapter 21

[]The Preferences of the Muslim Consumers Between Takaful and Conventional Policy: A Study on Motor Insurance Consumers Noor Emma Shamsuddin, Tang Howe Eng and Siti Farah Lajim

[]Abstract Malaysia is regarded as among the countries having the fastest growth of takaful at the international level, but it is a disappointed fact that there are those who are unaware of the existence of Takaful, mostly Muslim consumers. Hence, the objective of this study is to measure the preferences and understanding of the Muslim Consumers between Takaful and Insurance Policy for their motor insurance. There are 173 respondents who returned the questionnaires including online questionnaires. The respondents were the Muslim consumers among public and private servants from different departments and companies in area Mukah, Sarawak, Malaysia. From the result, 58 respondents currently subscribed Takaful insurance for motor, 100 respondents currently subscribed conventional insurance for motor, and 14 respondents were not insured by any insurance product for motor. The analysis of Pearson’s chi-square showed a value of 118.67 with a significance of 0.00, which concluded that respondents subscribed Takaful insurance for motor also preferred Takaful insurance while respondents subscribed conventional insurance for motor also tended to prefer conventional insurance. Their preference significantly influenced their choices to buy the type of their motor insurance. In addition, Pearson’s chi-square has a value of 80.36 with a significance of 0.00, which concluded that respondents subscribed Takaful insurance for motor preferred

[]N.E. Shamsuddin (&) S.F. Lajim Faculty of Business Administration, Universiti Teknologi MARA Sarawak Kampus Mukah, 96400 Mukah, Sarawak, Malaysia e-mail: [email protected] S.F. Lajim e-mail: [email protected] T.H. Eng Faculty of Computer and Mathematical Science, Universiti Teknologi MARA Sarawak Kampus Mukah, 96400 Mukah, Sarawak, Malaysia e-mail: [email protected] © Springer Science+Business Media Singapore 2016 M.A. Abdullah et al. (eds.), Regional Conference on Science, Technology and Social Sciences (RCSTSS 2014), DOI 10.1007/978-981-10-1458-1_21

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[]to buy insurance from Takaful company while respondents subscribed conventional insurance for motor preferred to buy insurance from both Takaful and other insurance companies. Keywords Insurance policy

[]Muslim consumers Preferences Takaful

[]1 Introduction Abu Sa’id al-Khudri (Allah be pleased with him) reported, Allah’s Messenger (May peace be upon him) forbade us (from), two types of business transactions and two ways of dressing. He forbade Mulamasa and Munabadha in transactions. Mulamasa means the touching of another’s garment with his hand, whether at night or by day, without turning it over accept this much. Munabadha means that a man throws his garment to another and the other throws his garment, and thus confirming their contract without the inspection of mutual agreement. This hadith has been narrated on the authority of Ibn Shihab through the same chain of transmitters.

[]Our daily lives are constantly surrounded by risks that are not predictable. Accidents happen unexpectedly. Not confined to the accident, we also face the risk of health, wealth, education, homes, savings, life, and car. Commercial and large-scale business is exposed to the risk of uncertainty. In those days, the caravans who used camels as their transportation often threatened by robbers, now the big ships that carry cargo at sea are threatened by pirates. In addition, merchandise cannot arrive on time because natural disasters cannot be expected. But we are given a quest to face these risks. The concept of insurance was introduced in Malaysia by English migrants early as the eighteenth century. The insurance industry in Malaysia has expanded and improved its system after independence Malaya. The Government has formulated and approved the Insurance Act 1963 for the purpose of monitoring and supervising the insurance industry. Hadith narrated by Bukhari said, Leave your wife and prosperity, better than leaving them in a state of asking.

[]Hadith narrated by Ibn Majah said, Truly a person of faith is he who provides security and protection of property and human soul.

[]In Malaysia, the majority of the people are Muslim. Takaful Malaysia brought into line with the principles and way of life of Muslims. Takaful is an Islamic insurance concept and has been growing rapidly in Malaysia at the moment. Even though the majority of people in Malaysia are Muslim, they still do not understand the real concept of Takaful. The objective of this study is to measure the preferences and understanding of the Muslim consumers between Takaful and conventional insurance focusing on their motor insurance. The research questions consist of (1) What are the preferences of the Muslim consumers between Takaful

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[]and conventional insurance focusing on their motor insurance? (2) How is the understanding of the Muslim consumers between Takaful and conventional insurance focusing on their motor insurance?

[]2 Literature Review The literature review discusses on the differences between Takaful and conventional insurance, the Takaful models and Takaful industry in Malaysia.

[]2.1

[]Differences Between Takaful and Conventional Insurance

[]Takaful and conventional insurances are different in terms of their nature and processes. Takaful is an insurance system which complies with Islamic regulation while conventional insurance is a product designed to give protection to individuals and businesses against specified contingencies, created out of human needs for security and stability (Hendon et al. 2009). Takaful is known as the Halal alternative for conventional insurance (Riaz 2009). The word “Takaful” is derived from the Arabic verb ‘kafala’ which simply means to take care of one’s need and it was established in 1985 by the Grand Council of Islamic Scholar in Makkah, Saudi Arabia (Saha et al. 2008). The main purpose of takaful under Islamic system is not to earn the profit, but to share the profits generated incidently (Maysami and Kwon 1999). Takaful is important to help the policy holder through bad time and to bring the equity to all parties that involves (Hussain and Pasha 2011). The concept of Takaful is acceptable in Islam for the following reason (Billah 2001): i. The policyholders would cooperate among themselves for their common good. ii. Policyholders would pay their subscription in order to assist those who need assistance. iii. Takaful falls under the donation (tabarru’) contract which is intended to divide losses and spread liability according to the community pooling system. iv. The element of uncertainty is eliminating insofar as subscription and compensation are concerned. v. Takaful does not aim at deriving advantage at the cost of other individuals. There are no any religious boundaries for conventional insurance. The purpose of insurance is to protect risk averse from suffering the full cost of those actions on the part of nature which affect them unfavorably (Hussain and Pasha 2011). Under conventional framework insurance which has two parties tied in one contract, the first party agrees to undertake the risk of other party in exchange of premium and

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[]the other party promises to pay fixed sum of money to the first party on the happening of uncertain event within a specific duration (Spence and Zechhauser 1971). There are three elements present in conventional insurance that do not conform to the requirement of the Shari’ah Law (Siddiqi 1985): i. Al Gharar Gharar means that a contract may be done in such a way that payment will be made on the occurrence of an uncertain event outcome (Kamali 1999). It refers to ‘unknown’ and ‘uncertain’ factors in a conventional insurance contract. The insurance policyholders are not informed on how profits are distributed and in which the funds are invested in Matsawali et al. (2012). Differs from Takaful contract, that it clearly outlined the distribution of profits to the operators and the participants. Investment activities which are interest based in alcoholic beverages and non-halal product is prohibited in Islam. ii. Al Maisir Al Maisir is the ‘gambling’ elements which are derived from Gharar. In conventional insurance, the distribution of profits and the investments are not clearly informed to the policyholders. Differs from the conventional insurance contract, the distribution of profits to the operators and the participants are clearly outlined in the takaful contract, based on Mudarabah concept. iii. Riba Riba is the payment and collection of interest that is not permissible under Islamic philosophy. It is strongly condemned by the Quran and Sunnah because reward of the money is not permissible in Islamic economy (Iqbal 2007).

[]2.2

[]The Takaful Models

[]According to Ali (2010), there are two types of models that are commonly used by the takaful operators which are: i. Al-Mudarabah Model (Profit sharing) There are different variations in terms of management fees, product’s design, and distribution channel applied in this model (Matsawali et al. 2012). All policyholders must agree to share profits (or losses) from the undertaking (Maysami et al. 1997). It will be shared according to the agreed ratio between takaful operator and participants. ii. Al-Wakalah Model (Agent) For Al Wakalah model, the relationship between takaful operator and participant is basically a agent and capital provider (Matsawali et al. 2012). The takaful operator acts as participant’s agent and will be paid fees for the services provided. The fees are charged as a fixed amount or percentage, or based on the agreed ratio from the investment profits.

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[]Takaful Industry in Malaysia

[]According to Bank Negara Malaysia, the takaful industry has been growing rapidly, appealing to both Muslim and non-Muslims. Currently, there are more than 110 takaful operators worldwide. Malaysia is one of the countries that have achieved significant milestones in the development of its takaful industry. The first takaful company was established in 1985, with the enactment of the Takaful Act 1984. Since then, Malaysia’s takaful industry has become one of the recognized contributors to Malaysia’s overall Islamic financial system. Bank Negara Malaysia in the Annual Takaful Statistics 2007 reported that takaful assets and net contributions experienced strong growth with an average annual growth rate of 27 and 19 %, respectively from 2003–2007. Foreign institution’s participation in Malaysia has been encouraged by the rapid liberalization of Malaysia’s Islamic financial industry. This can create a diverse and growing community of domestic and international takaful operators. Currently, there are twelve Licensed Insurance Companies and Takaful Operators in Malaysia listed in Bank Negara Malaysia, Central Bank of Malaysia (Bank Negara Malaysia 2014). There are: i. ii. iii. iv. v. vi. vii. viii. ix. x.

[]AIA AFG Takaful Berhad AIA PUBLIC Takaful Berhad AmFamily Takaful Berhad Etiqa Takaful Berhad Great Eastern Takaful Berhad HSBC Amanah Takaful (Malaysia) Sdn Bhd Hong Leong MSIG Takaful Berhad MAA Takaful Berhad Prudential BSN Takaful Berhad Sun Life Malaysia Takaful Berhad (formerly known as CIMB Aviva Takaful Berhad) xi. Syarikat Takaful Malaysia Berhad xii. Takaful Ikhlas Sdn. Berhad.

[]From all the Takaful Operators listed by the Bank Negara Malaysia, only three of them offered for the Motor Insurance which are: i. Etiqa Takaful Berhad Etiqa is owned by Malayan Banking Berhad (Maybank). Etiqa Takaful offered several products such as health, savings, home, protections, car, and education. They also offered Takaful for corporate products. They have over than 40 branches and 18,000 agents around the Malaysia. ii. MAA Takaful Berhad MAA Takaful Berhad is a joint venture between MAA Group Berhad and one of the leading companies in Arab, Solidarity Company BSC (C) of Bahrain.

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[]The joint venture was signed on 21st February 2006. The new Takaful license for the joint venture of MAA Group Berhad and Solidarity has been granted approval by the Bank Negara Malaysia on 3rd March 2006. 75 equity interest of MAAG holds by MAA Takaful while the other 25 holds by Solidarity. iii. Takaful Ikhlas Sendirian Berhad Takaful Ikhlas Sdn. Bhd. (Takaful IKHLAS) is a wholly owned subsidiary of MNRB Holdings Berhad and was incorporated on 18th September 2002. Currently, the company has 12 branches located in Selangor, Sungai Petani, Kota Bharu, Johor Bahru, Kuching, Kota Kinabalu, Melaka, Kuantan, Ipoh, Putrajaya and Seremban. Their objective is to be the preferred provider of Islamic financial protection service and toward this end, will leave no stone unturned to achieve this. Takaful IKHLAS is one of the companies who have invested considerably in technology to create efficiency and effectiveness to serve its participants and business partners. They were among the first to utilize the e-Cover Note System linking Takaful IKHLAS with the Road Transport Department or JPJ.

[]3 Research Methodology This study was conducted at a coastal town of the Mukah District in Mukah Division, Sarawak, Malaysia. This was a survey research which aimed to measure the preferences and understanding of the Muslim consumers between Takaful and conventional insurance focusing on their motor insurance. A total of 173 respondents completed the questionnaire including online questionnaire. The respondents were the Muslim consumers among public and private servants from different departments and companies in Mukah, Sarawak, Malaysia. The questionnaire was divided into three sections; naming Section A which was background information such as the gender, age, current job, education level, and others; Section B which elicited the information regarding the preferences of the respondents between Takaful and conventional insurance; Section C which elicited the information regarding the understanding of the respondents between Takaful and conventional insurance. The questionnaire was distributed and collected after the respondents completed the questionnaire. Online questionnaire was returned by the respondents through their respective email. The data collected were then analyzed by using IBM SPSS Statistics 20. Descriptive statistics were generated on the respondents’ background information. Chi-Square test was carried out to determine if there is any significant difference in respondents’ preference between Takaful and conventional insurance focusing on their motor insurance.

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[]4 Finding This section reports on the findings of the data analysis that is carried out to measure the preferences and understanding of the Muslim consumers between takaful and conventional insurance focusing on their motor insurance.

[]4.1

[]Demographic Profiles on Takaful and Conventional Insurance Policy for Motor

[]This section reports on the demographic profiles of the Muslim consumers between takaful and conventional policy for motor insurance. According to Table 1, 58 respondents currently subscribed takaful insurance for motor, 100 respondents currently subscribed conventional insurance for motor, and 14 respondents were not insured by any insurance product for motor. Table 2 shows the gender of Muslim consumers between takaful and conventional policy for motor insurance. A total of 30 male respondents and 28 female respondents currently subscribed takaful insurance for motor. 58 male respondents and 42 female respondents currently subscribed conventional insurance for motor. Each of 7 male respondents and female respondents were not insured by any insurance product for motor. Table 1 Insure product for motor insurance Frequency Valid

[]Missing Total

[]Takaful Conventional insurance Not sure Total System

[]Percent

[]Valid percent

[]Cumulative percent

[]58 100

[]33.5 57.8

[]33.7 58.1

[]33.7 91.9

[]14 172 1 173

[]8.1 99.4 0.6 100.0

[]8.1 100.0

[]100.0

[]Table 2 Gender for motor insurance

[]Motor_insure

[]Total

[]Takaful Conventional insurance Not insured

[]Gender Male

[]Female

[]30 58 7 95

[]28 42 7 77

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[]Total 58 100 14 172

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[]Table 3 Current job for motor insurance Job

[]Total

[]Government Motor_insure

[]Retired

[]Selfemployed

[]Housewife

[]Unemployed

[]Takaful

[]33

[]19

[]0

[]5

[]1

[]0

[]58

[]Conventional insurance

[]40

[]41

[]2

[]14

[]2

[]1

[]100

[]Not insured Total

[]Private

[]8

[]3

[]0

[]0

[]3

[]0

[]14

[]81

[]63

[]2

[]19

[]6

[]1

[]172

[]Table 4 Marital status for motor insurance

[]Motor_insure

[]Total

[]Takaful Conventional insurance Not insured

[]Marital Single

[]Married

[]Divorce

[]Total

[]17 36 5 58

[]40 62 9 111

[]1 2 0 3

[]58 100 14 172

[]According to Table 3, 33 respondents who subscribed takaful insurance for motor were government employees, 19 respondents were private sector employees, 5 respondents were self-employed and one of them was housewife. With reference to conventional insurance for motor, 40 respondents were government employees, 41 respondents were private sector employees, 2 respondents were retired, 14 respondents were self-employed, 2 respondents were housewives and one of them was unemployed. Table 4 shows the marital status of Muslim consumers between takaful and conventional policy for motor insurance. With reference to takaful insurance for motor, 17 respondents were single, 40 respondents were married, and one of them was divorced. 36 respondents who subscribed conventional insurance for motor were single, 62 respondents were married, and 2 respondents were divorced.

[]4.2

[]Preference on Takaful and Insurance Policy for Motor Insurance

[]The analysis of Chi-square test showed a value of 118.67 with a significance of 0.00 (Table 5), which concluded that respondents subscribed takaful insurance for motor also preferred takaful insurance while respondents subscribed conventional insurance for motor also tended to prefer conventional insurance. Their preference significantly influenced their choices to buy the type of their motor insurance.

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[]Table 5 Chi-square tests Pearson chi-square Likelihood ratio Linear-by-linear association N of valid cases

[]Value

[]df

[]Asymp. Sig. (2-sided)

[]118.671a 126.886 65.936 172

[]4 4 1

[]0.000 0.000 0.000

[]Value

[]df

[]Asymp. Sig. (2-sided)

[]80.363a 86.240 35.546 172

[]4 4 1

[]0.000 0.000 0.000

[]Table 6 Chi-square tests Pearson chi-square Likelihood ratio Linear-by-linear association N of valid cases

[]In addition, Pearson’s chi-square has a value of 80.36 with a significance of 0.00 (Table 6), which concluded that respondents subscribed takaful insurance for motor preferred to buy insurance from takaful company while respondents subscribed conventional insurance for motor preferred to buy insurance from both takaful and other insurance companies.

[]4.3

[]Understanding on Takaful and Insurance Policy for Motor Insurance

[]Table 7 indicates the understanding on the difference of takaful and conventional policy for motor insurance among Muslim consumers. 32 respondents who subscribed takaful insurance for motor knew the difference between takaful and insurance policy for motor, 8 respondents did not know the difference and 18 respondents were not sure about the difference of takaful and conventional policy for motor insurance. 25 respondents who subscribed conventional insurance for motor knew the difference between takaful and conventional insurance policy for

[]Table 7 Difference between takaful and conventional insurance for motor

[]Motor_insure

[]Total

[]Takaful Conventional insurance Not insured

[]Difference between takaful and conventional Yes No Not sure

[]Total

[]32 25 2 59

[]58 100 14 172

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[]8 41 1 50

[]18 34 11 63

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[]Table 8 Companies/agents provide information on the difference

[]Motor_insure

[]Total

[]Takaful Conventional insurance Not insured

[]Provide_info Yes No

[]Total

[]31 21 2 54

[]58 100 14 172

[]27 79 12 118

[]motor, 41 respondents did not know the difference, and 34 respondents were not sure about the difference of takaful and conventional policy for motor insurance. Among those who were not insured by any insurance policy for motor, 2 respondents knew the difference between takaful and insurance policy for motor, 1 respondent did not know the difference, and 11 respondents were not sure about the difference of takaful and conventional policy for motor insurance. In general, 59 respondents knew the difference, 50 respondents did not know the difference, and 63 respondents were not sure about the difference of takaful and conventional policy for motor insurance. Table 8 indicates whether the takaful and conventional insurance companies or agents ever provide the Muslim consumers information about the difference between takaful and conventional insurance. 31 respondents who subscribed takaful insurance for motor received information about the difference between takaful and conventional insurance from their insurance companies or agents. 27 respondents did not receive the information. Among those who subscribed conventional insurance for motor, 21 respondents received information about the difference between takaful and conventional insurance from their insurance companies or agents. 79 respondents did not receive the information.

[]5 Conclusion In conclusion, awareness and participation in insurance is very important in order to find ways and means to keep away from such troubles cause by the motor vehicles that we ride every day. It also important to choose the right insurance agencies so that we do not involve in any unethical activities. The objective of this study is to measure the preferences and understanding of the Muslim consumers between takaful and conventional insurance for their motor. Majority of the respondents chose the conventional insurance and their knowledge on takaful which were very limited. Respondents who subscribed takaful insurance for motor preferred takaful insurance while respondents who subscribed conventional insurance for motor also tended to prefer conventional insurance. Their preference significantly influenced their choices to buy the type of their motor insurance. In addition, Pearson’s chi-square concluded that respondents who

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[]subscribed takaful insurance for motor preferred to buy insurance from takaful company, while respondents who subscribed conventional insurance for motor preferred to buy insurance from both takaful and other conventional insurance companies. More respondents who subscribed takaful insurance for motor knew the difference between takaful and conventional insurance policy for motor as compared to respondents who subscribed conventional insurance. Further, majority of the respondents who subscribed conventional insurance reported that the insurance companies or agents did not provide them the information about the difference between takaful and conventional insurance. As for the respondents who subscribed takaful insurance for motor, majority of them received information about the difference between takaful and conventional insurance from their insurance companies or agents. Based on this study, several recommendations that we address are as follows: i. Takaful companies should clearly explain to the consumers the differences between takaful and conventional insurance. ii. To make people know about the takaful, the takaful companies should do more on advertising and marketing. iii. Attractive packages offer can attract consumer’s interest. iv. Takaful companies can directly collaborate with motor companies since the consumers normally will let the motor companies to handle the insurance for their vehicles. v. Takaful companies can also directly collaborate with the bank which offers the loan for the consumers to buy the motor vehicles. Some of the consumers will prefer to choose the insurance companies which deal directly to the bank because it ease their work. vi. The frequent survey on consumer’s perception should be done so that they will be able to know the feedback from the consumers that can be used to improve their products and services. This finding is useful for any takaful companies in Malaysia in order to get the consumer’s interest on their products. The minority respondents normally represent the majority therefore the findings actually represent the actual level understanding toward takaful and conventional insurance.

[]References Ali, E. R. A. E. (2010). Panduan asas takaful. Kuala Lumpur: CERT Publications. Billah, M. M. (2001). Takaful (islamic insurance) premium: A suggested regulatory framework. International Journal of Islamic Financial Services, 3(1). Hendon, R., Zuriah, A. R., & Sharifah Sakinah, S. H. A. (2009). Economic determinants of family takaful consumption: Evidence from Malaysia. International Review of Business Research Papers, 5(5), 193–211.

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[]Hussain, M. M., & Pasha, A. T. (2011). Conceptual and operational differences between general takaful and conceptional insurance. Australian Journal of Business and Management Research, 1(8), 23–28. Iqbal, Z. (2007). Challenge facing islamic financial industry. Journal of Islamic Banking and Finance. Kamali, M. H. (1999). Uncertainty and risk taking (Gharah) in islamic law. IIUM Law Journal, 199–216. Matsawali, M. S., Abdullah, M. F., Ping, Y. C., Abidin, S. Y., Zaini, M. M., Ali, H. M., et al. (2012). A study on takaful and conventional insurance preferences: The case of Brunei. International Journal of Business and Social Science, 3(22), 163–172. Maysami, R. C., & Kwon, W. J. (1999). An analysis of islamic takaful insurance—A cooperative insurance mechanism. Journal of Insurance Regulation, 8, 109–132. Riaz, S.(2009). Car islamic insurance-influence of age, education and income in Pakistan and UAE: A comparative study. International Review of Business Research Papers, 5(4), 457–467. Saha, A., Ashoke Kumar, G., & Siddhartha, B. (2008). A primer on the evolution of takaful. Tata Consultancy Services. Siddiqi, M. N. (1985). Insurance in an islamic economy. Nirobi, Kenya: Islamic Foundation. Spence, M., & Zechauser, R. (1971). Insurance, information and individual action. Takaful models: Mudharabah & wakalah. http://www.islamicfinanceinfo.com.my/discovertakaful/takaful-models-mudharabah-wakalah. Accessed May 28, 2014.

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[]Chapter 22

[]Role of Management and Employees in Customer Focused Organizations Syazwani Ya, Sarina Muhamad Noor and Noraini Nasirun

[]Abstract Customer focus is vital for every organization in delivering a superior customer experience. Several studies found that an effective communication, strong management commitment, and opportunity to learn are factors that affect employees’ ability to provide satisfactory services. In addition, customer focus is one of the pillars under quality management that lead into customer satisfaction. Customers’ needs are typically being neglected in the study of the quality movement. Therefore, this research was conducted at three private service providers to ascertain the relationship among management commitment, quality improvement, and employee’s skill toward customer focus initiatives. A set of questionnaires was administered to 162 workers in these service sectors. Results indicate that management commitment and quality improvement have a significant relationship with a customer focus. However, only management commitment and quality improvement explain customer focus in these firms. This research concludes with several suggestions for the improvement of private service providers, especially in their effort to focus more on customer’s satisfaction. Keywords Customer focus Quality management

[]Employee’s skill

[]Management commitment

[]S. Ya (&) S.M. Noor N. Nasirun Faculty of Business Management, Universiti Teknologi MARA Perlis, Perlis, Malaysia e-mail: [email protected] S.M. Noor e-mail: [email protected] N. Nasirun e-mail: [email protected] © Springer Science+Business Media Singapore 2016 M.A. Abdullah et al. (eds.), Regional Conference on Science, Technology and Social Sciences (RCSTSS 2014), DOI 10.1007/978-981-10-1458-1_22

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[]1 Introduction Firms improve their position in marketplace through many ways. One of the ways is to engage in customer focus initiatives. There are many advantages of being a customer focused organization, especially in its role in enhancing the innovative characteristics and firms’ performance. This can be achieved through continuously upgrading the product, being innovative, and capitalize on the knowledge (Bose 2012; Vandermerwe 2004) so that firms can grow faster than its competitors. The firm sustainability is also achieved as customer focus that helps in efficient value chain management, enhance communication, and maintain customer’s loyalty (Bose 2012). As suggested by Piecy (1995), to become “indispensable” firm must ensure the effectiveness in handling of complaints as it provides a test for customer focus. A customer’s focused organization requires employees to collaborate with management in order to achieve the outcomes required by customers. It is a process that reflects the attitude in the organization as the challenge requires more than the management order (Piercy 1995). It also requires employees to understand their role in moving toward a customer focused situations. In addition, employees’ attitudes and skills will lead into continuous improvement once it becomes the firm philosophy. Previous studies on quality management have investigated the effect of management commitment, customer focus and continuous improvement on firm performance, customer satisfaction, and innovativeness. Study by Yaacob (2014) found that customer satisfaction is significantly related to customer focus. On top of that, Samson and Terziovski (1999) suggest that firm must rely more on the “soft factors” of leadership, human resource management, and customer focus as they produce a profound effect on the firm operational performance. However, there is an under-stated role of customers in quality management literature (Lagrosen 2001). According to Lagrosen (2001), total quality management does not provide detailed information on how to evaluate customers. Accordingly, this situation leads to failure in understanding customers. Hence, it is no doubt that many firms have superficially implemented customers focus initiatives in their organization. Therefore, this study attempts to determine the relationship among management commitment, quality improvement, and employees’ skills with customer focus and to understand the predictive power of these quality management practices on customer focus. The significance of this study is associated with its ability to suggest the explicit role of top management and employees in moving toward a customer focused organization. Its value lies in the stakeholders’ effort to achieve customer satisfaction through the pillars of Quality Management.

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[]2 Literature Review This section will provide a discussion on previous literature related to the topic. It will begin with the discussion on customer focus, management commitment, quality improvement, and employee’s skills.

[]2.1

[]Customer Focus

[]Customer focus refers to the concept that entails the customer needs, service, value, and quality of product or services (Orndoff 2003). It is a customer orientation term that is widely used to describe organizations’ activities which focus on the needs of their customers and also a strategic orientation of an organization or of an employee (Fink 2014; Henning-Thurau 2004). Additionally, a study conducted by Lado et al. (2011) suggests that customer focus is positively related to customer service. Customer focus is normally found in a corporate strategy where it is formulated based on customer welfare and delight (Agrawal 2001). Customer focus is a concept that is widely used since end of 1970s. It started with prehistoric understanding on customer focus (Agrawal 2001) and extend further in other areas such as manufacturing (Lado et al. 2011), construction (Fink 2014), B2B organizations (O’Cass and Heirati 2015), airline industry (Keiningham et al. 2014), retail and travel agencies (Henning-Thurau 2004), public sector (Alford 2002), and private sector (Conca et al. 2004). As good services results in customer satisfaction (Chopra 2014; Keiningham et al. 2014; Henning-Thurau 2004; Levesque and McDougall 1996), today’s business challenge is to satisfy needs and wants of customer by acquiring an attitude of ‘customer responsiveness’ (Agus 2004) which complements organizational responsiveness toward developing unique marketing capabilities (O’Cass and Heirati 2015). Therefore, customers require organizations to offer a broader range of ‘value-added’ services and customized products and services (Ninan 2006). In developing market orientation, organization relies on three pillars which are customer focus, integrated marketing and long-term goal attainment (Iyer and Johlke 2015). In addition, O’Cass and Heirati (2015) discovered that market-oriented firm is able to develop and deploy marketing mix and customer-focused capabilities which emphasizes on brand management and Customer Relationship Management (CRM) capabilities that drive new product performance and will increase the market shares at the end. As discussed by Feng et al. (2012), customer focus is a beginning of a new product development process while the company that focuses on customers can shorten time-to-market through identifying changing needs and wants of customers. Conca et al. (2004), emphasize the factors in evaluating customer focus by increasing contacts between organizations and customers (Agrawal 2001), identifying their requirements, assessing their satisfaction, and providing supporting

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[]activities to improve customer satisfaction. Thus, Conca et al. (2004) also come out with the method in dealing with customer focus such as providing channels to handle customer complaint (Levesque and McDougall 1996), customer satisfaction survey, after-sales service as well as identifying customer needs through survey, market research, and report from vendor. In view of that, management and employees role are certainly very vital to achieve the objective of being a customer focused organization.

[]2.2

[]Management Commitment

[]Top management commitment is mostly used as an indicator in Total Quality Management (TQM) practices where it emphasizes on service quality to satisfy customer (Agus 2004; Cheung 2010; Yousaf 2006; Liaw 2009). Ahmad and Parasuraman (1994) define management commitment to service quality through quality initiatives at the operational and strategic level, and engaging in activities such as providing visible quality leadership and resources for the adoption and implementation of service initiatives. Findings from several studies proved that management commitment plays an important role in influencing employee involvement (Mahajan 2012; Cheung 2010) and employees-perceived service quality (Slåtten 2009). On top of that, Tzempelikos (2015) discovered that management commitment is positively related to the top management involvement and top management involvement totally mediates the relationship between top management commitment and relationship quality that emphasizes on satisfaction, trust, and commitment between buyer and seller. Hence, it suggests that the management involvement and commitment is significant in aligning organizations strategy toward customer’s satisfaction. Further, (Babakus 2003) highlighted managerial commitment elements that consist of training, empowerment, and rewards. Moreover, Cheung (2010) recognizes adequate management commitment toward service quality from the view of management’s service vision, management’s personal involvement and empowerment. In sum, to improve service quality, management should have a clear vision toward customer service, and provide more resources of training that may enhance the skills of employees and at the same time encourage customer-contact employees to speak up and get the job done (Henning-Thurau 2004). Thus, organizational practices that encourage employees’ involvement shape employees’ perceptions toward management and they feel valued as a member of their organization (Giunchi et al. 2015; Mahajan 2012). Management commitment and support indirectly enhances the service delivered by employees (Liaw 2009) when they feel affectively committed to the company and eventually to the customers of the company (Giunchi et al. 2015). There are many areas of study such as service organization which are private and public organization (Cheung 2010; Slåtten 2009), retail industry (Liaw 2009; Henning-Thurau 2004), employment agencies (Giunchi et al. 2015), as well as

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[]transportation area (Mahajan 2012). Most of the studies highlighted the vital roles of management commitment toward employees and services that may lead to satisfying customer. Therefore, lack of management commitment is the major failure in achieving quality (Jenkins 1992) and greater severity of the service failure, the greater the resulting impact on customer satisfaction as well as to the business (Keiningham et al. 2014). Therefore, management can influence the strategic direction of organization of focusing on customers’ needs and wants.

[]2.3

[]Quality Improvement

[]Quality is defined by American Society for Quality as “the totally of features and characteristics of a product and services that bears on its ability to satisfy stated and or implied needs (Heizer and Render 2013).” In this study context, researcher focuses more on service perspectives where service quality is an indicator to satisfy customer. Nowadays, quality improvements become one of the main focuses of many organizations. It is essentially an organization’s efforts at improving its product and processes in meeting the expectations of its customer (Torres and Guo 2004; Edvardsson 1998). This is supported by Sahel et al. (2015) who discovered that improvement in the performance level of quality management is achieved when organizations are continuously engaged in quality service. Service quality improvement influences customer satisfaction (Izogo and Ogba 2015; Raychaundhuri and Farooqi 2013). It shows that customer satisfaction is an important factor that contributes to the company’s profit and will ensure the survival of an organization. A satisfied customer will spread the good news quickly (Edvardsson 1998) and eventually to employees and most likely the owner of the company. In order to meet customers’ expectation and satisfaction, quality improvement can be done through managing customer complaints. As suggested in Hsieh (2012), one of the ways to drive quality improvement in service is using MOT dimensions of Managerial, Operational, and Technical dimensions to assess customer complaints. Such holistic approach enables organization to tackle the situation comprehensively. Literatures indicate the study of quality improvement conducted in various contexts such as healthcare (Sahel et al. 2015; Yoo et al. 2015; Hsieh 2012; Torress 2004; Øvretveit 2001), retail (Nickson et al. 2005), hospitality and tourism (Yusof et al. 2014; Nickson et al. 2005), public and private organization (Shahin et al. 2012), Information Technology sector (Raychaudhuri 2013), as well as transportation area (Wisner 1999). These studies indicate that the quality of service is vital in various industries because improving quality can be a competitive advantage to the company (Shahin et al. 2012). Hence, quality improvement helps in customer focused organization as it enhances organizational value through customer engagement.

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[]Employees Skills

[]The term skills may encompass not only technical competences but also behavioral (Ramasubbu et al. 2008) as well as cognitive competences (Grant 2014). In addition, it is recognized that several emotional, customer-handling, problem solving, and in general known as soft skills are now part of policy makers’ interest (Grant 2014; Nickson et al. 2005). Moreover, global competition requires a more flexible, skilled, and competent workforce (Papalexandris and Nikandrou 2000; Woodcock 1996) that assist organizations in providing customer satisfaction toward service offered by organizations (Henning-Thurau 2004; Chopra 2014). Customer satisfaction is an important measure of a firm’s success because it is a leading indicator of a firm’s financial performance and shareholder value (Ramasubbu et al. 2008). Ramasubbu et al. (2008) had emphasized their interest in investigating whether technical and behavioral skills had an impact on customer satisfaction. Chopra (2014) classified technical skills such as product knowledge, cross functional knowledge, operations knowledge, and complaint management in the area of retailing. He also identifies behavioral skills such as communication, promptness in service, politeness, being available on request, willingness to help, and convicting abilities as the element in the study. It was found that, both technical and behavioral skills of personnel play a major role in influencing overall customer satisfaction (Ramasubbu et al. 2008). In order to understand customers’ needs and wants, Kennedy et al. (2002) developed customer mindset (CMS) concept in which individual employees believe that understanding and satisfying customer to proper execution of his or her job where at the end will drive to the development of employees skill. Employees’ skills are important to support marketing knowledge in terms of identifying customer needs, competitor’s actions, and market trends where they can apply to perform specific marketing activities (O’Cass and Heirati 2015). Besides, employees play an important role in influencing customers to make purchase and develop relationships with customers (Chopra 2014). There are several areas of study in assessing employee skills, such as retail (Chopra 2014; Henning-Thurau 2004), hospitality (Henning-Thurau 2004; Nickson et al. 2005), IT industry (Ramasubbu 2008), private sector (Grant et al. 2014), as well as manufacturing (Papalexandris and Nikandrou 2000; Woodcock 1996). Most of the studies highlighted the crucial role in having employees with skill that will lead to customer satisfaction. These employees are better able to accommodate changes in customer requirement. Moreover, they will channel their efforts in making innovative products as they understood the process.

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[]Table 1 Reliability coefficients and mean value for major variables Variables

[]No of items

[]Cronbach alpha

[]Management commitment 7 0.84 Quality improvement 6 0.76 Employee’s skills 4 0.72 Customer focus 8 0.82 Notes All items used 5 likert scale (with 1 = strongly disagree and 5

[]Mean

[]Std deviation

[]3.66 3.52 3.96 3.69 = strongly

[]0.57 0.56 0.60 0.54 agree)

[]3 Methods This study utilized questionnaires adapted from several researchers. There are several sections in the questionnaire. Section A is on respondents’ demographic information, Section B is on the management commitment, Section C is on quality improvement, Section D is on employees’ skills, and Section E is on customer focus. There is a total of 32 items in the questionnaire. The reliability of the questionnaire ranges from 0.7–0.8 which indicates that they are appropriate for use (Sekaran 2011). The mean value for all dimensions shows that most respondents agree with the statements offered in the questionnaire. Table 1 shows the Cronbach alpha value, mean and standard deviation of the variables use in this study. This study is a cross-sectional study conducted among employees from three private organizations. They are chosen as a sample as they are part of individuals that serves the customer. The sample size is 162.

[]4 Findings The study was conducted in 2014 at three private service providers in Malaysia. It consist of 51.9 % male, 43.2 % has undergraduate education, and most of the respondents are less than 30 years old with 36.4 % more than 5 years of working experience. The details of respondents’ demographic factors are shown in Table 2. In order to achieve the study objectives, first, the data were analyzed using Pearson Correlations. Table 3 depicts a strong relationship between management commitment and customer focus with r = 0.729 at 99 % significant level. Similarly, the relationship between quality improvement with customer focus also shows strong significant relationship (r = 0.649, p = 0.01). Meanwhile, for the relationship between employee’s skills and customer focus, the relationship is not significant. A multiple regression test was conducted to understand the predicted power of the factors that affect customer focus toward the service industry. Durbin-Watson of 1.747 indicates that there is no multicollinearity among the variables. The result

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[]Table 2 Demographics of respondents Characteristic

[]Percentage (n = 162)

[]Gender Male Female Age Less than 30 31–45 46–60 61 and above Education SPM STPM Diploma Bachelor degree Master Working experience Less than one year 1–2 years 3–4 years More than five years

[]51.9 48.1 43.8 40.7 14.2 1.2 8.6 2.5 25.9 43.2 19.8 27.2 19.8 16.7 36.4

[]Table 3 Intercorrelation of the variables in this Study Management commitment Management commitment Quality improvement Employee’s Skills Customer focus *p < 0.05 **p < 0.01

[]Quality improvement

[]Employee’s skills

[]Customer focus

[]1.000 0.143

[]1.000

[]1.000 0.646**

[]1.000

[]0.156* 0.729**

[]0.097 0.649**

[]shows the adjusted r2 to be 0.579, with a different weighting of the standard coefficient. Among all, management commitment and quality improvement are significant with standard coefficient of 0.500 and 0.296, respectively. Therefore, management commitment contributes 50 %, while quality improvement exhibits 29.6 % in explaining customer focus as shown in Table 4.

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[]Table 4 Multiple regression result

[]245

[]Variables

[]B

[]t-value

[]Sig.

[]Management commitment Quality improvement Employee’s Skills **p < 0.01 F value r2 Adjusted r2 Durbin Watson

[]0.500 0.296 0.280

[]7.806 4.567 0.601

[]0.000 0.000 0.549

[]4.945 0.587 0.579 1.747

[]5 Discussions, Conclusion, and Recommendations The findings in this study support the previous literature on management commitment and quality improvement which has a significant impact with customer focus. Apparently, the management understands the alignment of activities in the organizations with the organizations’ strategy, which is customer focus. This finding aligns with the suggestion made by Henning-Thurau (2004), where the management must understand the vision toward customer service, and at the same time provide the necessary supports to employees. Therefore, this study contributes in understanding the quality aspect of the organization. In addition, previous study by Samat et al. (2006) found that there is a significant relationship between customers focus and service quality. Additionally, customers’ perception toward quality of service is affected by the behavior of service employees (Henning-Thurau 2004; Bitner 1990). Cheung (2010) stated that, when employees understand the goal of satisfying customer, they are willing to make a suggestion to improve service. In addition, customer focus is one of the elements in Total Quality Management that leads to customer satisfaction (Agus 2004; Levesque and McDougall 1996). These studies suggest important role of employees and quality improvement in attaining customers satisfaction. As for quality improvement, the finding suggests that the organizations have given a serious attention to quality improvement of their services to the customers. As discussed in the previous literature, it is important for the organizations to ensure that the services provided by organizations fulfill the customers’ expectation (Torres and Guo 2004; Edvardsson 1998). Customers who are satisfied with the performance of the organization will most likely promote the organization through word-of-mouth (Edvardsson 1999), thus increase the good reputation of the organizations. Though literatures show employees’ skills are able to influence customer focus through understanding customer requirement, this study found, there is no significant relationship between employee’s skills with customer focus. The companies in this study are service providers companies that facilitate transaction between manufacturing and customers. Thus, their employees are not involved in the process

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[]of product development nor do they involve in various marketing activities. There is less direct contact between the employees and the customers. Moreover, the different service context influences customer judgment toward service employees. In a higher context situation, customer will consciously develop relationship in order to reduce their consumption risk. However, in this case, it involves less individualized and personal services (Henning-Thurau 2004) which indicate less interaction with customers. Practically, the result of this study helps managers to recognize the important of management commitment and quality improvement in customer focus. Support from the management is important to ensure the organizations move toward certain goal. This study however has certain limitations. The organizations involved are the service providers dealing directly with business entity as their customers. For future studies, it is recommended that more investigation is conducted in such firms to enhance service quality and provides avenue for them to improve their customer focus.

[]References Agrawal, M. (2001). Customer focus in liberalized era of marketing. Management and Labour Studies, 26(1), 5–14. Agus, A. (2004). TQM as a focus for improving overall service performance and customer satisfaction: an empirical study on a public service center in Malaysia. Total Quality Management, 15(5–6), 615–628. Ahmed, I., & Parasuraman, A. (1994). Environmental and positional antecedents of management commitment to service quality: A conceptual framework. In T. A. Swarts, D. E. Bowen & S. W. Brown (Eds.), Advances in service marketing and management (Vol. 3, pp. 69–93). Babakus, E. (2003). The effect of management commitment to service quality on employees’ affective and performance outcomes. Journal of the Academy of Marketing Science, 31(3), 272–286. Bitner, M. (1990). The service encounter: Diagnosing favorable and unfavorable incidents. Journal of Marketing, 54, 71–84. Bose, T. K. (2012). Market segmentation and customer focus strategies and their contribution towards effective value chain management. International Journal of Marketing Studies, 4(3), 113. Cheung, M. F. (2010). Management commitment to service quality and organizational outcomes. Managing Service Quality, 20(3), 259–272. Chopra, K. (2014). Empirical study on role of customer service in delivering satisfaction at branded retail outlets in Pune. Procedia Economics and Finance, 11(14), 239–246. Conca, F. J., Llopis, J., & Tari, J. J. (2004). Development of measurement to assess quality management in certified firms. European Journal of Operational Research, 156, 683–697. Edvardsson, B. (1998). Service quality improvement. Managing Service Quality, 8(2), 142–149. Feng, T., Sun, L., Zhu, C., & Sohal, A. S. (2012). Customer orientation for decreasing time-to-market of new products: IT implementation as a complementary asset. Industrial Marketing Management, 41(6), 929–939. Fink, L. (2014). The effect of customer focus competence on construction project performance. Procedia- Social and Behavioral Sciences, 119, 427–436. Grant, K. (2014). Skills utilisation in Scotland: Exploring the views of managers and employees. Employee Relations, 36(5), 458–479.

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[]Guinchi, M., Chambel, M. J., & Ghislieri, C. (2015). Contract moderation effects on temporary agency workers affective organizational commitment and perceptions of support. Personnel Review, 44(1), 22–38. Heizer, J., & Render, B. (2013). Operations management. Upper Saddle River, New Jersey: Pearson Education, Inc. Henning-Thurau, T. (2004). Customer orientation of service employees: Its impact on customer satisfaction, commitment, and retention. International Journal of Service Industry Management, 15(5), 460–478. Hsieh, S. (2012). Using complaints to enhance quality improvement: Developing an analytical tool. International Journal of Health Care Quality Assurance, 25(5), 453–461. Iyer, R., & Johlke, M. C. (2015). The role of external customer mind-set among service employees. Journal of Services Marketing, 29(1), 38–48. Izogo, E. E., & Ogba, I.-E. (2015). Service quality, customer satisfaction and loyalty in automobile repair service sector. International Journal of Quality & Reliability Management, 32(3), 250– 269. Jenkins, K. (1992). Service quality in the skies. Business Quarterly, 57(2), 13–18. Keiningham, T. L., Morgeson, F. V., Aksoy, L., & Williams, L. (2014). Service failure severity, customer satisfaction, and market share: An examination of the airline industry. Journal of Service Research, 17(4), 415–431. Kennedy, K. N., Lassk, F. G., & Goolsby, J. R. (2002). Customer mind-set of employees throughout the organization. Journal of the Academy of Marketing Science, 30(2), 159–171. Lado, A. A. (2011). Customer focus, supply-chain relational capabilities and performance: Evidence from US manufacturing industries. The International Journal of Logistics Management, 22(2), 202–221. Lagrosen, S. (2001). Stregthening the weakest link of TQM- from customer focus to customer understanding. The TQM Magazine, 13(5), 348–354. Levesque, T., & McDougall, G. (1996). Determinants of customer satisfaction in retail banking. International Journal of Bank Marketing, 14(7), 12–20. Liaw, Y.-J. E. (2009). Examining the mechanisms linking transformational leadership, employee customer orientation, and service performance: The mediating roles of perceived supervisor and coworker support. Journal of Business and Psychology, 25(3), 477–492. Mahajan, A. (2012). Does trust in top management mediate top management communication, employee involvement and organizational commitment relationships? Journal of Managerial Issues, 2, 173–190. Nickson, D., Warhurst, C., & Dutton, E. (2005). The importance of attitude and appearance in the service encounter in retail and hospitality. Managing Service Quality, 15(2), 195–208. Ninan, J. A. (2006). Internet-based framework to support integration of customer in the design of customizable products. Concurrent Engineering, 14(3), 245–256. O’Cass, A., & Heirati, N. (2015). Mastering the complementarity between marketing mix and customer-focused capabilities to enhance new product performance. Journal of Business & Industrial Marketing, 30(1), 60–71. Orndoff, C. J. (2003). Citizen-based priorities in transportation: A study in customer focus. Public Works Management & Policy, 7(4), 256–266. Øvretveit, J. (2001). Japanese healthcare quality improvement. International Journal of Health Care Quality Assurance, 14(4), 164–167. Papalexandris, N., & Nikandrou, I. (2000). Benchmarking employee skills: Results from best practice firms in Greece. Journal of European Industrial Training, 24(7), 391–402. Piercy, N. F. (1995). What do you do to get customer focus in an organization. Marketing Intelligence & Planning, 13(6), 4–11. Ramasubbu, N., Mithas, S., & Krishnan, M. (2008). High tech, high touch: The effect of employee skills and customer heterogeneity on customer satisfaction with enterprice system support services. Decision Support System, 44(2), 509–523.

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[]Raychaudhuri, P. S. (2013). A study on the effects of dimensions of service quality on customer satisfaction in the Indian IT hardware industry with special emphasis on medium size B2B sector. Global Business Review, 14(2), 503–527. Sahel, A., Belghiti, A. A., DeBrouwere, V., Soares, F. V., Kegels, G., Belkaab, N., & Dujardin, B. (2015). A systemic approach to quality improvement in public health services: The Moroccan “quality contest”. Leadership in Health Services, 28(1), 8–23. Samat, N., Ramayah, T. S., & Mat, N. (2006). TQM practices, service quality, and market orientation: Some empirical evidence from a developing country. Management Research News, 29(11), 713–728. Samson, D., & Terziovski, M. (1999). The relationship between total quality management practices and operational performance. Journal of Operations Management, 17, 393–409. Sekaran, U., & Bougie, R. (2011). Research methods for business: A skill building approach. New Delhi, India: Wiley India Pvt. Limited. Shahin, A., Attafar, A., & Samea, M. (2012). An integrated approach for service quality and effectiveness improvement with a case study in the recycling pavilion service process of Isfahan municipality. Measuring Business Excellence, 16(3), 84–99. Slåtten, T. (2009). The effect of managerial practice on employee-perceived service quality: The role of emotional satisfaction. Managing Service Quality, 19(4), 431–455. Torres, E., & Guo, K. (2004). Quality improvement techniques to improve patient satisfaction. International Journal of Health Care Quality Assurance, 17(6), 334–338. Tzempelikos, N. (2015). Top management commitment and involvement and their link to key account management effectiveness. Journal of Business & Industrial Marketing, 30(1), 32–44. Vandermerwe, S. (2004). Achieving deep customer focus. MIT SLoan Management Review, 45(3), 26–34. Wisner, J. (1999). A study of successful quality improvement programs in the transportation industry. Benchmarking: An International Journal, 6(2), 147–163. Woodcock, D. (1996). How skills development affects manufacturing’s competitive capability. Integrated Manufacturing Systems, 7(1), 38–44. Yoo, J. J.-E., Kim, T. T., & Lee, G. (2015). When customers complain: The value of customer orientation in service recovery. Cornell Hospitality Quarterly, pp. 1–16. Yousaf, N. (2006). Impact of Organizational Culture on TQM Program. Lahore, pp. 1–11. Yusof, N. A., Jamil, F. C., & Iranmanesh, M. (2014). Measuring the quality of ecotourism services: Case study-based model validation. SAGE Open, 4(2), 1–9. Zulnaidi, Yaacob. (2014). The link between quality management and Muslim customer satisfaction. International Journal of Business and Society, 15(1), 81–96.

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[]Chapter 23

[]Young Adults’ Motivation to Patronize Independent Specialist Coffee Shops in Malaysia Jaslyn Ng Jia Lin and Choy Tuck Yun

[]Abstract There is growing interest in young adults in Malaysia to patronize specialist coffee shops. Large specialist coffee shop chains in Malaysia include Starbucks and The Coffee Bean. Parallel to the growth of these coffee shop chains is an increase of independent specialist coffee shops operated by individual entrepreneurs such as Artisan Roast Coffee and Top Brew Coffee Bar. Extant research shows that there are many factors which influence consumers to patronize coffee shops. However, there is scarce research on the motivation to patronize independent specialist coffee shops. The aim of this study is to understand the factors that influence the motivation of young adults to patronize these independent specialist coffee shops in Malaysia. A survey was conducted on 177 respondents in Klang Valley, the heartland of Malaysia’s industry and commerce. The findings showed that branding, social influence, past experience, and the offered services influenced 42 % of the respondents’ choice of independent specialist coffee shops. Independent specialist coffee shops with distinctive branding provide a sense of prestige which is motivating for young adults. The young adults are persuaded to patronize the coffee shops through communications via the social media such as blogs, Facebook, and Instagram. Their revisiting rate increases when they have a good experience during their visits to the coffee shops. Good coffee, food, and memorable service experiences are also important for the young adults. The conclusions of this research are limited to the perceptions of young adults in Klang Valley. Keywords Coffee shop

[]Malaysia Motivation

[]J.N.J. Lin (&) C.T. Yun Sunway University Business School, Sunway University, 47500 Darul Ehsan, Selangor, Malaysia e-mail: [email protected] C.T. Yun e-mail: [email protected] © Springer Science+Business Media Singapore 2016 M.A. Abdullah et al. (eds.), Regional Conference on Science, Technology and Social Sciences (RCSTSS 2014), DOI 10.1007/978-981-10-1458-1_23

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[]1 Introduction The trend of coffee shops is booming around the world, including Malaysia. Starbucks and The Coffee Bean and Tea Leaves have the most number of outlets in Malaysia. These two companies are the biggest branded chained specialist coffee shops, but independent specialist coffee shops are also growing in Malaysia due to the growth of interest of Malaysian in artisanal coffee (Euromonitor 2012). Artisan Roast Coffee, JD Espresso, and Top Brew Coffee Bar are examples of independent specialist coffee shops in Malaysia. According to LaMendola (2014), specialist coffee shops’ main focus is coffee with an assortment of preparation styles and roast while offering a variety of beverages, baked goods, and snacks. In the context of this research, an independent specialist coffee shop is defined as a coffee shop which fulfills this description and is a non-chained store, that is, an independent operator. In 2012, independent specialist coffee shops achieved a 13 % growth in Malaysia, becoming the fastest growing foodservice. It is forecasted to have a sales growth of 53.8 % in the year 2017 compared to the year 2012. The increase in the number of outlets in 2017 compared to 2012 is predicted to be 73.7 % (Euromonitor 2012). The pricing in these specialist coffee shops are 10–15 times higher than conventional coffee shops, but still manage to achieve great growth. Conventional coffee shops are traditional stand-alone shops which are not part of a branded chain, offering basic traditional food and local unbranded coffee which are common in Malaysia. Following the results of an analysis in France, specialist coffee shops are more appealing to younger and more varied demographics compared to conventional coffee shops (Euromonitor 2012). In this booming industry, it is important for the business owners and managers to gain insights on their consumers’ behavior, the aim of this research is to understand the factors that influence the motivation of young adults to patronize these independent specialist coffee shops in Malaysia.

[]2 Literature Review According to Shcheglova (2009), motivation is the processes that influence people to behave in the way they do. In the food and beverage industry, food and beverage not only satisfy the basic needs of human being, but consumption of food and drinks is also associated with consumer psychology. Yu and Fang (2009) found that product quality of the coffee shop satisfies the physiological and security needs while the services provided higher needs such as need for belonging and esteem needs. In their research, the experience provided by the coffee shops satisfied the highest level of need, the need for self-actualization, of the respondents. The different brandings of organizations enunciate their personalities to consumers through the product’s symbolic significance. The brand image will directly

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[]contribute to the consumer’s perception on the brand identity and traits which will be used by consumers to differentiate between the brands characteristics and use them as a guideline for purchase decision making (Hung 2012). Social influence on purchase decision plays a significant role in consumer behavior (Promotosh and Sajedul 2011). The four sources of social influences are family, social class, culture, and reference groups (Moutinho 1987). Feick et al. (2003) study revealed that the social network and product involvement are linked. According to Burge (2013), past experience is one of the key factors that consumers look into when choosing their coffee shop. The experience that the consumers receive is not solely under the control of the retailer. The experience of the consumer can be affected by the other consumers and the consumer’s purpose of shopping. Consumer will buy again and also share with others about their positive experience to others if they receive benefits by purchasing a product or service (D’Souza et al. 2006). Individuals rely on previous experience to predict their future experiences (Hsee and Hastie 2006). The Starbucks executives believe that the most important aspect to their success is the good consumer experiences (Abel 2009). The marketing mix is a combination of product, place of distribution, price, and promotion (4Ps). Another three elements of people, physical evidence, and process was later introduced for services marketing rather than physical goods only (Alipour and Darabi 2011). According to Bojanic (2007), the people element encompasses the people that participate in the service production and delivery process. Physical evidence in services marketing mix comprises of the environment of the service operation and any physical support used in marketing the product. Last, the process element is the delivery of the services to consumers which includes the process design elements such as employee training procedures, payment policies, supply cycles, and franchising policies (Bojanic 2007). The prior discussion and brief examination of the existing literature leads to the development of the hypotheses: H1: Branding, social influence, past experience, and services marketing mix affects the motivation to patronize independent specialist coffee shops. H2: Prestigious branding motivates young adults to patronizing independent specialist coffee shops. H3: Social Influence motivates young adults to patronizing independent specialist coffee shops. H4: Past experience motivates young adults to patronizing independent specialist coffee shops. H5a: Products affects the consumer motivation of patronizing independent specialist coffee shops. H5b: Price affects the consumer motivation of patronizing independent specialist coffee shops. H5c: Place affects the consumer motivation of patronizing independent specialist coffee shops. H5d: Promotion affects the consumer motivation of patronizing independent specialist coffee shops.

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[]H5e: Physical evidence affects the consumer motivation of patronizing independent specialist coffee shops. H5f: People/participant affects the consumer motivation of patronizing independent specialist coffee shops. H5g: Process affects the consumer motivation of patronizing independent specialist coffee shops.

[]3 Methodology The target population for this research was young adult consumers between the ages of 15 years old to 34 years old within the Klang Valley region. Young adults in Malaysia are defined as those between the ages of 15 and 34 by the Department of Statistics Malaysia (2008). Convenient sampling was used because it is cost-efficient and time-saving (Aaker et al. 2011). Young adults in shopping malls, universities, and individual specialist coffee shops were approached to participate in the survey. Data were analyzed by using software SPSS Version 20.

[]4 Findings A total of 200 questionnaires were distributed but only 177 questionnaires collected were useable because there were 23 questionnaires that were incomplete. As shown in Table 1, the age group of 20–24 years old makes up 44.6 % of the total sample

[]Table 1 Respondents’ demographic information Categories Age

[]Gender Frequency of visit to independent specialist coffee shops

[]15–19 20–24 25–29 30–34 Male Female Every day 4–6 times a week 2–3 times a week Once a week Once every 2 weeks Total

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[]Frequency

[]Percentage

[]17 79 43 38 86 91 11 9

[]9.6 44.6 24.3 21.5 48.6 51.4 6.2 5.1

[]22

[]12.4

[]63 72

[]35.6 40.7

[]177

[]100.0

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[]size followed by 24.3 % of respondents from the age group of 25 – 29 years old. There are 21.5 % of respondents of age 30–34 years old and 9.6 % of respondents from the age 15–19 years old. This corresponds to the target respondents of this research, young adults between the ages of 15 years old to 34 years old. Consistent with the majority age group of the sample, the majority of the sample are students (53.7 %) followed by respondents holding managerial positions (14.1 %). Using Cronbach’s Alpha reliability test, the variables were tested for reliability as shown in Table 2. The results for all variables were more than 0.7, indicating that the measurement scales of the variables were stable and consistent. Only one subscale in the branding variable that did not contribute to the consistency and stability of the variable was removed. The Pearson product-moment correlation test was used to determine the existence of linear relationship between motivation to patronize independent specialist coffee shops and the individual constructs. As shown in Table 3, the independent variables are positively related to the motivation to patronize independent specialist coffee shops among young adults at a significant level of p < 0.05. The result shows that social influence has the weakest correlation to the dependent variable. The Pearson correlation between social influence and the dependent variable obtained is equal to 0.186 at a significant level of 0.013 which shows that social influence positively affects the motivation to patronize independent specialist coffee shops but the correlation is weak between these two variables. Multiple linear regression analysis was carried out to test the relationships between the independent variables and the motivation to patronize independent specialist coffee shops among young adults. The analysis yielded a significant regression model (F = 14.013, p < 0.01), as shown in Table 4. Five of the variables: branding, social influence, price, people, and process were not significant (t < 1.96 and Sig. > 0.05); and are deemed to have no influence on the dependent variable. The relationship between the dependent variables and the independent variables are:

[]Table 2 Results of reliability analysis

[]Constructs

[]No. of items

[]Cronbach’s alpha

[]Branding Social influence Past experience Services marketing mix – Product – Price – Place – Promotion – Physical evidence – People – Process Motivation to patronize

[]4 4 3

[]0.705 0.795 0.777

[]4 4 3 3 6 5 4 3

[]0.828 0.78 0.87 0.764 0.894 0.836 0.799 0.733

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[]Table 3 Results of correlation analysis in this research Hypotheses

[]Pearson correlation

[]Sig.

[]Remark

[]H2: prestigious branding motivates young adults to patronizing independent specialist coffee shops H3: social influence motivates young adults to patronizing independent specialist coffee shops H4: past experience motivates young adults to patronizing independent specialist coffee shops H5a: products affects the consumer motivation of patronizing independent specialist coffee shops H5b: price affects the consumer motivation of patronizing independent specialist coffee shops H5c: place affects the consumer motivation of patronizing independent specialist coffee shops H5d: promotion affects the consumer motivation of patronizing independent specialist coffee shops H5e: physical evidence affects the consumer motivation of patronizing independent specialist coffee shops H5f: people/participant affects the consumer motivation of patronizing independent specialist coffee shops H5g: process affects the consumer motivation of patronizing independent specialist coffee shops

[]0.259

[]0.000

[]Accepted

[]0.186

[]0.013

[]Accepted

[]0.424

[]0.000

[]Accepted

[]0.410

[]0.000

[]Accepted

[]0.310

[]0.000

[]Accepted

[]0.404

[]0.000

[]Accepted

[]0.435

[]0.000

[]Accepted

[]0.360

[]0.000

[]Accepted

[]0.444

[]0.000

[]Accepted

[]0.370

[]0.000

[]Accepted

[]Table 4 Results of multiple regression analysis in this research Dependent variable: motivation to patronize Independent variables: Model Unstandardized Std. coefficients beta coefficients Beta Std. error (Constant) 1.436 .451 Branding 0.003 0.070 0.003 Social influence −0.104 0.053 −0.139 Past experience 0.187 0.062 0.219 SMM – Product 0.169 0.056 0.216 – Price −0.061 0.059 −0.074 – Place 0.117 0.038 0.202 – Promotion 0.183 0.048 0.266 – Physical evidence 0.145 0.053 0.198 – People 0.093 0.068 0.104 – Process 0.023 0.069 0.026 R square = 0.458 Adjusted R square = 0.425 F = 14.013 p-value = 0.000

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[]t-value

[]Sig.

[]3.183 0.047 −1.972 3.039

[]0.002 0.963 0.050 0.003

[]3.034 −1.027 3.084 3.833 2.741 1.357 0.332

[]0.003 0.306 0.002 0.000 0.007 0.177 0.740

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[]Motivation to Patronize Independent Specialist Coffee Shops ¼ 1:436 þ 0:187 Past Experience þ 0:169 Product þ 0:183 Promotion þ 0:145 Physical Evidence þ 0:117 Place

[]The remaining five independent variables accounted for 42.5 % of the variance in the motivation to patronize independent specialist coffee shops among young adults, F = 14.013, p < 0.01, adjusted R2 = 0.425, which means that 42.5 % of the motivation to patronize independent specialist coffee shops among young adults can be explained using this model. In other words, all the independent variables are positively correlated to the motivation to patronize independent specialist coffee shops, but not all ten of the component add up to collectively improve the forecast of the dependent variable. According to Creech (2011) there is a possibility for numerous independent variables to be independently correlated with a dependent variable, but not every one of them will be statistically significant in the same multiple linear regression model.

[]5 Interpretation and Analysis of Findings The results show a weak positive relationship between branding and motivation to patronize independent specialist coffee shops. Based on extant literature, consumers’ purchase decision is affected by the brand. Consumers feel more secure when buying products with high brand equity because they have better understanding of the brand and the value (Aaker 1991). Although branding is not a strong motivator to patronize independent specialist coffee shops, but based on the data collected, respondents do consider the branding and prestige of the coffee shops before visiting. There was a positive but weak relationship between social influence and motivation to patronize independent specialist coffee shops. Interestingly, the direct influence of social influence via social media and media reported was more highly rated by the respondents than the other indirect social influence via mediums such as online social network like Facebook, Instagram, Tweeter, and many other indirect social media. Past experience was positively related to motivation to patronize independent specialist coffee shops. Customers depend on previous experience to envisage their future experience (Hsee and Hastie 2006). Burge (2013) found that past experience was the most important factor in motivation to patronize coffee shops. Starbucks executives deemed good consumer experiences as the most important aspect to their success (Abel 2009). All the seven services marketing mix were positively related to motivation to patronize independent specialist coffee shops. Consumers patronizing these independent specialist coffee shops value the importance of quality service. As a part of the service marketing mix, Abel (2009) found free internet access to be an

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[]Fig. 1 Factors affecting satisfaction of needs from independent specialist coffee shops

[]important factor in influencing consumers to visit independent specialist coffee shops rather than chain coffee shops like Starbucks in Colorado Springs, USA. Although the respondents rated price as an important factor in motivating them to patronize independent specialist coffee shops, the prices of coffee and beverage in these independent specialist coffee shops in Malaysia are 10–15 times higher than conventional coffee shops (Euromonitor 2012). Thus, price is not the main concern when it comes to independent specialist coffee shops. Based on extant literature Yu and Fang (2009), the physiological and security needs are satisfied by the product quality of the coffee shop which needs for belongings and esteem needs are satisfied by the services provided. The need for self-actualization is fulfilled by the experience that the consumers get from the coffee shops. In another literature by Tikkanen (2007), physiological needs are fulfilled by the food and beverages offered while the safety of the food and hygiene is related to the safety needs. The fulfillment of social needs comes from the interaction with other people, the case in the coffee shops. Esteems needs are satisfied by the experience while self-actualization needs are met when people are trading knowledge or opinion. Using the results from the research and extant literature, factors that affected respondents’ motivation to patronize independent specialist coffee shops are mapped on to the Maslow Hierarchy of Needs for a clear view on how the satisfaction can motivate their patronage, as shown in Fig. 1.

[]6 Conclusions and Implications This research aims to understand the factors that influence the motivation of young adults to patronize these independent specialist coffee shops in Malaysia. In this booming industry, it is important for the business owners and managers to gain insights on their consumers’ behavior. This study shows that young adults’

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[]motivation to visit their choice of independent specialist coffee shops in Malaysia is influenced by branding, social influence, past experience, and services marketing mix. These factors fulfill the respondents’ needs in terms of basic needs, safety needs, social needs, esteem needs, and their need for self-actualization. The products offering contribute to the basic needs of the respondents by providing food and water for living. However, basic needs are no longer the only need associated to eating and drinking. The safety of the product, place, and physical evidence factors fulfills the safety needs of the consumers by providing them clean and safe environments for them dine at. Independent specialist coffee shops have become a place to socialize. Many of the respondents visit the independent specialist coffee shops with their friends, families, and partners. Their choices of independent specialist coffee shops are also affected by their friends, families, and the social media. This shows that independent specialist coffee shops fulfill their need of belonging to a certain social group. The prestigious branding of the independent specialist coffee shops contributes to the respondents’ esteem needs. Consumers are gratified for having the ability to patronize these places and also mark a certain achievement in their status and social circle. Being able to recommend and share their past experience in independent specialist coffee shops which satisfies the respondents’ need for self-actualization. They are able to motivate others with their recommendation.

[]References Aaker, D. A. (1991). Managing brand equity. San Francisco: Free Press. Aaker, D. A., Kumar, V., Day, G. S., & Leone, R. P. (2011). Marketing research (10th ed.). Asia: Wiley. Abel, N. (2009). Determinants of customer loyalty in the specialist coffee industry: The differences between customer loyalty to an independent coffee shop and starbucks. Degree -The Colorado College. Alipour, M., & Darabi, E. (2011). The role of service marketing mix and its impact on marketing audit in engineering and technical service corporations. Global Journal of Management and Business Research, 11(6). Bojanic, D. (2007). Handbook of hospitality marketing management. Oxford: Butterworth-Heinemann. Burge, S. A. (2013). The motivational reasons behind consumer choice in branded coffee shops. Reinvention: An International Journal of Undergraduate Research. Creech, S. (2011).Why should i perform pearson’s correlation and multiple linear regression analysis? Available at: http://www.statisticsconsultant.com/dissertation-advice/why-should-iperform-pearson%E2%80%99s-correlation-and-multiple-linear-regression-analysis/. Accessed on June 1, 2014. D’Souza, C., Taghian, M., Lamb, P., & Peretiatkos, R. (2006). Green products and corporate strategy: An empirical investigation. Society and Business Review, 1(2), 144–157. Euromonitor. (2012). Cafés/bars in Malaysia. Retrieved from Passport database. Feick, L., Coulter, R. A., & Price, L. L. (2003). Rethinking the origins of involvement and brand commitment: insights from postsocialist central Europe. Journal of Consumer Research, 30(2), 151–169.

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[]Hsee, C., & Hastie, R. (2006). Decision and experience: Why don’t we choose what makes us happy? Trends In Cognitive Sciences, 10(1), 31–37 (Academic Search Complete, EBSCOhost). Hung, L. M. (2012). A study of consuming behaviors of budget coffee. Business and Management Research, 1(1), 48–61. LaMendola, D. (2014). Specialist coffee shops gain momentum in France as cafe culture shifts. Passport. Moutinho, L. (1987). Consumer behaviour in tourism. European Journal of Marketing, 21(10), 5–44. Promotosh, B., & Sajedul, I. (2011). Young consumers’ purchase intentions of buying green products. Master Thesis, Umeå School of Business. Shcheglova, M. (2009). An integrated method to assess consumer motivation in difficult market niches: A case of the premium car segment in Russia. Master. Tikkanen, I. (2007). Maslow’s hierarchy and food tourism in Finland: Five cases. British Food Journal, 109(9), 721–734. Yu, H., & Fang, H. (2009). Relative impacts from product quality, service quality, and experience quality on customer perceived value and intention to shop for the coffee shop market. Total Quality Management & Business Excellence, 20(11), 1273–1285 (Business Source Complete, EBSCOhost).

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[]Chapter 24

[]Consumer Preference Toward Super-Mini Cars in Malaysia: An Importance-Performance Analysis Approach Lum Jia Meng and Choy Tuck Yun

[]Abstract There are many manufacturers in the growing Malaysian road vehicles industrial sector, of which, a subsector is the super-mini car. These are small cars with saloon body or hatchback and an engine size ranging from 1.0–1.5 l. There is a growing interest among consumers in Malaysia for super-mini cars due to perceived high performance and style at relatively lower car prices. This research explores consumer preferences toward super-mini cars in Malaysia to guide its future development and marketing. An Importance-Performance Analysis (IPA) was used to measure consumers’ perception of the importance and performance of eight attributes of super-mini cars which were identified from extant literature. A survey was conducted on 100 respondents based on convenience sampling in Klang Valley. Using the median of all eight attributes as crosshair, five attributes were perceived to be of low importance/low performance. Ease and fun of driving was perceived to be of low importance/high performance, leading to a possible overkill in this attribute. However, reliability and good mileage was considered to be of high importance/low performance. Super-mini manufacturers should concentrate on improving the performance of these two attributes. Interestingly, no attribute was perceived to be in the high importance or high performance quadrant. This reveals an area for manufacturers to consider for competitive advantage. While the general ability of this research was limited by convenience sampling but the effectiveness of the IPA is highlighted.

[]Keywords Cars Consumer performance analysis

[]Perception Super-mini Small Importance-

[]L.J. Meng (&) C.T. Yun Sunway University Business School, Sunway University, 47500 Darul Ehsan, Selangor, Malaysia e-mail: [email protected] C.T. Yun e-mail: [email protected] © Springer Science+Business Media Singapore 2016 M.A. Abdullah et al. (eds.), Regional Conference on Science, Technology and Social Sciences (RCSTSS 2014), DOI 10.1007/978-981-10-1458-1_24

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[]1 Introduction As the automotive industry continues to grow in the Asia Pacific region, Martins et al. (2010) stated that market demographics will gradually develop into the growing interest of major corporations. These market demographics will cause a shift of consumer preference toward cars in the automotive industry. With the availability of a wide range of models, consumers make their buying decisions based on personal preferences and usage. As a result, different types of vehicles are favorable in different periods of time. For instance, consumers prefer small and compact cars in the mid-1970s, minivans in the 1980s, and sport utility vehicles in the 1990s (Choo and Mokhtarian 2004). It is important to identify the future trend of the automotive industry as consumer preference changes overtime. In the past 5 years of the automotive industry, statistics show an increasing demand for new passenger cars and commercial vehicles. In between year 2009 and 2010, car sales grew by 10.5 %, but showed a slight decrease by 1.56 % in year 2010–2011(Malaysia Automotive Association 2013). However, in between year 2011 and 2012 car sales generated a 3.09 % increase from the loss of sales of the previous year with 535,113, and 552,189 new passenger cars registered, respectively (Malaysia Automotive Association 2013). The positive increase in purchases of new passenger cars over the years indicates the positive outlook of the Malaysian automotive industry. Among the various segments of cars in the automotive industry, this study focuses on super-mini cars. These cars are generally categorized under the B segment in the United Kingdom (The Society of Motor Manufacturers and Traders 2013). The few examples of car brands offering super-mini cars in the market are Ford’s Fiesta, Mazda 2 hatchback, Perodua’s Myvi, Volkswagen’s Polo, and Suzuki’s Swift. In Malaysia, a good representative of segment B super-mini cars would be Perodua’s Myvi. In particular, there will be high demand for small cars which are expected to be highly favored by the middle and lower income class families. Households with the monthly salary of RM 5000 and below are classified as middle lower class income group and make up 59 % of the total population in Peninsular Malaysia (Economic Planning Unit 2013). The pursuit of accurate product features that consumers demand is essential for automotive manufacturers to gain competitive advantage in the automotive industry (Malhotra et al. 2012). Automotive manufactures explore different types of business opportunities to ensure they remain competitive in the market. They have to serve the ever-changing consumer expectations toward the quality elements of new vehicles (Nath 2009). Consumers put in consideration of positive factors that adds value in determining purchase (Vrkljan and Anaby 2011). The two attributes, ‘Ease and fun of driving’ and ‘Availability of desired special features’ are important considerations in the purchase of super-mini cars (Farley et al. 1978). In India, price and engine capacity stands as the most important factor in decision making, and these attributes are able to determine the purchase decisions in the small car segment (Malhotra et al. 2012). These attributes are described as

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[]bundles of characteristics and consumers make selections based on attributes that maximizes the utility derived from attribute characteristics (Berry et al. 2004). Attributes that were adapted are carefully studied to suit the context of this study. Among the eight attributes, good mileage, price, external, and internal car appearance were adapted from Vrkljan and Anaby (2011). The remaining four attributes; ease and fun of driving, reliability and quality, pick up and acceleration, and availability of special features are from the study of Farley et al. (1978). Due to the increase in demand for super-mini cars and the need for car manufacturers to identify the future trends of the auto industry, the perception of car purchasers in Malaysia will be explored through the use of Importance-Performance Analysis (IPA) on the attributes in literature.

[]2 Importance-Performance Analysis (IPA) The IPA was first proposed and introduced by Martilla and James (1977) with the goal of measuring customer satisfaction toward goods and services (Silva and Fernandes 2011). IPA measures the importance and customer satisfaction through performance and to develop relationships based on specific product attributes (Martilla and James 1977). The main goal of the IPA in this study is to serve as a diagnostic tool to outline the identification of attributes in regard to customer perceptions of a super-mini car, given their importance, products, or services of high or low performance. The IPA explores not only the performance of an attribute, but also examines the importance of the attribute as a determining factor in satisfaction of the consumer (Silva and Fernandes 2011). The combination of the two components, allow researchers to identify an overview of consumer satisfaction with the goal of providing recommendations to corporate sectors in the automotive industry. This enables companies to allocate their resources at the most cost-effective way. The IPA has proven itself to be relatively easy to administer and interpret in result to an extensive use among researchers in different industries. It is capable of promoting the development of effective marketing programs because of the interpretation of data of its efficiency in making strategic decisions (Silva and Fernandes 2011). By looking at Table 1, it is observed that the IPA has a pair of coordinate axis where ‘importance’ lies at the y-axis and ‘performance’ attributes at the x-axis. Different elements are involved in the IPA for comparison. The IPA consists of different sections divided into four different quadrants. Each quadrant represents the degree of importance and performance which are combined to identify the responses of consumers. The response of consumers varies from one another resulting in different values in terms of management and the respective means of self-stated raw importance and attribute performance data (Silva and Fernandes 2011). The model is divided into four different quadrants as illustrated in Table 1.

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[]Table 1 Importance-performance matrix Quadrant A Quadrant B High importance/low performance High importance/high performance ‘Concentrate here’ ‘Keep up the good work’ Concentration of improvement efforts Results from this quadrant should continue the should be placed here extensive effort Quadrant C Quadrant D Low importance/low performance Low importance/high performance ‘Low priority’ ‘Possible overkill’ Least resources should be expanded on Researchers should present findings to this low priority quadrant organizations as an unnecessary move Source Adapted from Silva and Fernandes (2011) and Martilla and James (1977) with modifications

[]Each of the quadrants represents a relatively different approach as attributes of importance and performance are considered. For example, concentration should be placed at Quadrant A as importance attributes explores the priorities of consumers, extensive effort should be continued in Quadrant B, least resources should be allocated in Quadrant C, and unnecessary actions should be withdraw in Quadrant D. The explanation of the IPA matrix can provide valuable insights to automotive manufacturers on areas to focus or neglect. Therefore, an IPA is appropriate to explore the attributes that influence consumer purchase of super-mini cars in Malaysia.

[]3 Methods The aim of this research is to explore the usage of IPA in the automotive industry by exploring segment B vehicles; super-mini cars. The target population for this study is car drivers with a minimum of three driving experience trips with the Perodua Myvi. This is to ensure that respondents will have a standardized image of a super-mini car. As the super-mini car market leader for 5 consecutive years (Malaysian Automotive Association 2013), the research uses Perodua Myvi as a representative of a super-mini car which serves as a benchmark for the super-mini car market in Malaysia. A recent survey found the characteristics of automotive consumers prior to purchase are as follows; 16 % did not test-drive, 33 % test-drove only one car, whereas the remaining 51 % visited less than two sales offices before making the final decision (Power 2013). Statistics shows it a single test-drive for a consumer to make a purchase. A convenient sampling method was used for the survey. The questionnaire was developed with the aim of understanding potential car buyer’s perception of importance and performance of eight super-mini car attributes to enable an IPA. The attributes are good mileage, price, external and internal car appearance, reliability and quality, pick up and acceleration, and availability of

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[]special features and were derived from Vrkljan and Anaby (2011) and Farley et al. (1978). These attributes were adjusted to this study. The use of likert scale grants respondents to respond to the questionnaire in regard to the degree of agreeableness to the following statements in the questionnaire (Barnett 1991). Statements in the questionnaire included a division of attribute features of Importance and Performance, where Importance is based on a nine-point Likert scale: 1 for “least important,” 5 for “average importance,” and 9 for “very important.” As for Performance 1 for “strongly disagree,” 5 for “neither agree nor disagree,” and 9 for “strongly agree.” The nine-point likert scale in the survey questionnaire acts as a catalyst to enhance responses through a wider selection of opinions.

[]4 Results A total of 118 copies of survey questionnaires were distributed. Out of the 118 copies of questionnaire forms, only 100 forms returned to the researcher as valid questionnaires. Responses that did not meet the specific requirements for the study were eliminated from the research. With the response rate of 85 %, it is safe to state that the questionnaire was designed with quality, and extensive support was received from the respondents. In terms of the mean value, importance attributes are higher than performance attributes. The attribute with the highest significant mean difference is the ‘reliability and quality’ with a difference of 2.030. This indicates that this attribute is perceived of a great difference compared with importance and performance. The means and standard deviations (SD) of the respondents’ perceptions on all the importance attributes and performance attributes are shown in Table 2. According to the mean figures tabulated in Table 2, all importance attributes have an average score of 7 or higher, varying in between 6.610 and 7.630. The four main attributes that are observed to be most important are: reliability and quality with an average mean of 7.630 followed by good mileage/petrol economical (mean = 7.450), price (mean = 7.220), and external car appearance/design with the mean of 7.090. These four attributes are above the score of 7 mean in average. The attribute with the lowest importance (mean = 6.610) is the “availability of special features.” Additionally, the performance attributes have a slightly lower average mean than importance attributes of 5.823 and varies in the range of 5.600–6.360. The average values are perceived close to neither satisfied or dissatisfied as these values are higher than the midpoint 5. As observed from the results, the data suggests drivers are generally satisfied with the performance of the Perodua Myvi. However, each car attribute represents a different mean score which leads to the top four ranking of satisfaction as followed: ease and fun of driving (mean 6.360), good mileage/petrol economical (mean 5.950), external car appearance/design (mean 5.800), and price

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[]Table 2 Importance-performance ratings of respondents Car attributes

[]Good mileage/petrol economical Price External car appearance/design Internal car appearance/design Ease and fun of driving Reliability and quality Pick up and acceleration Availability of special features

[]Importance Mean (I) Standard deviation

[]Performance Mean (P) Standard deviation

[]Difference in mean (I-P)

[]7.450

[]1.343

[]5.950

[]1.684

[]1.500

[]7.220 7.090

[]1.709 1.371

[]5.760 5.800

[]2.015 1.874

[]1.460 1.290

[]6.710

[]1.754

[]5.650

[]2.011

[]1.060

[]6.960

[]1.626

[]6.360

[]1.888

[]0.600

[]7.630

[]1.411

[]5.600

[]1.729

[]2.030

[]7.030

[]1.604

[]5.740

[]1.931

[]1.290

[]6.610

[]1.791

[]5.730

[]2.044

[]0.880

[](mean 5.760). Respondents rated the reliability and quality of the car as the lowest among the eight car attribute for satisfaction. A paired-sample t-test was conducted to analyze if significant differences exist between respondents’ perception toward importance and performance on each car attribute. The result is summarized in Table 2. Significant differences were found on all attributes. The data was then transferred to the IPA grid (Fig. 1). The four quadrants are constructed based on the global median value. The median value was used as a measure of central tendency because true interval scale may not exist (Martilla and James 1977). These quadrants are defined by the global median values (7.188; 6.000) of the y-axis (importance) and x-axis (performance). The results of this research are spread across three quadrants mainly A, C, and D. Attributes that falls under quadrant A: ‘High importance, low performance’, are good mileage/petrol economical and reliability and quality. On the other hand, attributes that falls under quadrant C: ‘Low importance, low performance’, are external and internal car appearance and pick up and acceleration. As for ‘price’, this attribute is saturated in the border line between quadrant A and C. But as observed, increasingly toward quadrant C. As for the final attribute, the ease and fun of driving falls under quadrant D: ‘Low importance, high performance’ which indicates the highest satisfaction (performance) score among all car attributes. None of the car attributes fall under quadrant B: ‘High importance, high performance’. Two attributes in Quadrant A were perceived to be of high importance but low performance. One of the attributes is ‘good mileage/petrol economy’. This car feature is essential to be part of a super-mini car as drivers placed a high priority. However, drivers are not satisfied with the petrol economical performance of the

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[]Importance 9.0 8.5 Car Attributes 8.0

[]Good mileage/petrol economical

[]7.5

[]Price

[]7.0

[]External car appearance

[]6.5

[]Internal car appearance

[]6.0

[]Ease and fun of driving

[]5.5

[]Reliability & quality

[]5.0

[]Pick up and acceleration

[]4.5 Availability of special features

[]4.0

[]4.5

[]5.0

[]5.5

[]6.0

[]6.5

[]7.0

[]7.5

[]8.0

[]8.5

[]9.0

[]Performance

[]Fig. 1 IPA graph for global average median value on the axis

[]super-mini car, this may be due to the lack of good mileage of the car. Research found that drivers who seek luxurious driving experience are less likely to be sensitive with the consumption of fuel (Baltas and Saridakis 2013). This indicates that driver’s prioritize good mileage in super-mini cars as these cars are not associated as an indicator of high social status. The second attribute found in Quadrant A is ‘reliability and quality’, which was rated as the highest importance among all car attributes. The result of this research shows similarity of the success of a sale is based on the quality of a product (Allenby and Rossi 1991; Chang and Wildt 1994). Respondents believe in the consideration of purchasing a super-mini car, reliability, and quality serves as the top priority factor in decision making. The family-related purposes are the main reason for car usage which has an effect on the car performance attribute. These respondents are very satisfied with the current reliability and quality and the importance of reliability and quality becomes stronger, so as the internal appearance of a super-mini car. The reliability and quality might be associated with the internal appearance of a car. The five attributes found in Quadrant C were perceived to be of ‘Low importance, low performance’ where car manufacturers should allocate the least resources on this low priority quadrant. One of these is ‘price’ which was perceived not as important as other attributes and is unsatisfied with the price of the super-mini. Drivers perceive the super-mini car to be expensive in result to the outcome of low performance. The results of this research is slightly different as price is not the main priority in affecting consumer’s purchase decision as compared to Nath’s (2009) study where price factor is believed to be the most sensitive attribute in vehicle

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[]purchase decision and it is identified that price is often perceived as one of the difficult decisions prior to purchase. This indicates that super-mini cars should be marketed differently compared with other vehicles in terms of pricing where consumers are fewer prices sensitive. The second attribute found in Quadrant C is ‘external car appearance’. Drivers perceive this attribute to be less important and are unsatisfied with the outlook of the super-mini car. The internal car appearance/design is perceived as the lowest importance among the all car attributes. Although Vrkljan and Anaby (2011) found that gender has a significant impact on the overall appearance of a car. The results of this study indicates that male and females are both less concerned and do not care much about the internal appearance of super-mini cars but are rather more obsessed with the price. The negative relationship between the importance and performance of this attribute indicates that single respondents are harder to satisfy. The next attribute, ‘Pick up and acceleration’ was found in Quadrant C. A fair response of importance is identified between pick up and acceleration and external car appearance as perceived by respondents. This attribute have no significant relationship between the demographics of respondents. Increasingly, it yields a relatively low relationship with other attributes. However, the results of this research indicate a similarity of the hypothesis where the satisfaction of the ‘pick up and acceleration’ is relatively low. Thus, respondents do perceive the lack of pick up and acceleration of the super-mini car. ‘Ease and fun of driving’ was the only attribute found in Quadrant D of ‘Low importance, high performance’. Johansson-Stenman and Martinsson (2006) found that the desirability to improve an individual’s self image is influenced by their own preference based on certain favorable features. Respondents are most satisfied with this attribute. However, it is less important to them in consideration of a super-mini car. Focus should be taken on this feature and emphasized more on the important features such as good mileage and reliability and quality. The last attribute of the eight is the availability of special features. The availability of special features falls under quadrant C of the IPA graph; ‘Low importance, low performance’. At a significant level, male respondents perceive higher importance than females on the availability of special features. Male respondents might have a higher intention of having more customization according to their individual needs, whereas females just emphasize on driving the car.

[]5 Conclusion The overall results of the IPA showed quadrant B; ‘High importance, high performance’ was not occupied by any of the car attributes. As this quadrant indicates the degree of importance to be of high importance highly satisfied with the current features of the super-mini car, the response obtained is far beyond this quadrant. As a result, none of car attributes are in favor of the continuation of focus. Instead,

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[]firms should focus on satisfying driver’s perception on the performance of super-mini cars as overall ratings are relatively low. Based on the results, interesting findings are obtained as difference of a certain group of drivers has different priority in purchase decision making. In addition, results of this research provide insights on evaluating driver’s perception on importance and performance. The higher importance car attribute shows a higher priority when consumers undergo the decision-making process. Similarly, the higher car performance attribute signifies a higher satisfaction of the super-mini car, vice versa. The sample size (n = 100) may lack of power to represent the entire Malaysian population in determining consumer perception toward a super-mini car. Overall, this research shows that the IPA could help automotive companies to obtain strategic ways of targeting specific group of drivers and a variety of automotive marketing techniques which could be drawn from this research as the information above provide valuable insights on driver’s demographic and lifestyle preferences in super-mini cars.

[]References Allenby, G. M., & Rossi, P. E. (1991). Quality perceptions and asymmetric switching between brands. Marketing Science, 10, 185–204. Baltas, G., & Saridakis, C. (2013). An empirical investigation of the impact of behavioural and psychographic consumer characteristics on car preference: An integrated model of car type choice. Transportation Research Part A, 54, 92–110. Barnett, V. (1991). Sample survey: Principles and methods. London: Hodder. Berry, S., Levinsohn, J., & Pakes, A. (2004). Differentiated products demands systems from a combination of micro and macro data: The new car market. Journal of Political Economy, 112, 69–105. Chang, T. Z., & Wildt, A. R. (1994). Price, product information, and purchase intention: An empirical study. Journal of the Academy of Marketing Science, 22, 16–27. Choo, S., & Mokhtarian, P. L. (2004). What type of vehicle do people drive? The role of attitude and lifestyle in influencing vehicle type choice. Transportation Research Part A, 38, 201–222. Economic Planning Unit. (2013). Percentage distribution of households by income class. http:// www.epu.gov.my/documents/10124/c9352eab-28fe-4b0f-9fc18a70c18b0cd9. Accessed June 26, 2014. Farley, J. U., Katz, J., & Lehmann, D. (1978). Impact of different comparison sets on evaluation of a new subcompact car brand. Journal of Consumer Research, 5, 138–142. Johansson-Stenman, O., & Martinsson, P. (2006). Honestly, why are you driving a BMW?’. Journal Economics Behavior Organ, 60, 129–146. Malaysian Automotive Association. (2013). Summary of new passenger & commercial vehicles registered. http://www.maa.org.my/info_summary.htm. Accessed June 5, 2014. Malhotra, G., Nandi, A., & Mukherjee, A. (2012). An empirical research on consumer behaviour towards small car segment in Indian Market. Business Perspectives and Research., 3, 37–46. Martilla, J., & James, J. (1977). Importance-performance analysis. Journal of Marketing, 41, 77–79. Martins, J. M., Yusuf, F., & Swanson, D. A. (2010). Consumer demographics and behavior: Markets are people. United States: http://books.google.com.my/books?id=80FtZVMIDZg C&pg=PA47&dq=evolution+of+demgraphics&hl=en&sa=X&ei=reBDUs3xEMbQrQf8vICoBg &redir_esc=y#v=onepage&q=evoution%20of%20demographics&f=false.SpringerPublications. Accessed June 27, 2014.

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[]Nath, C. K. (2009). Customers expectations towards car in an unorganized environment- A factoral analysis. African Journal of Business Management, 2(4), 160–167. http://www. academicjournals.org/ajbm/PDF/pdf2009/Apr/Nath.pdf. Accessed June 27, 2014. Power, J. D. (2013). Among automotive internet shoppers, tablet usage surpasses smartphone usage for the first time. Mcgraw Hill Financial. http://www.jdpower.com/press-releases/2013newautoshopper-study. Accessed June 16, 2014. Silva, F. J. H., & Fernandes, P. O. (2011). Importance-performance analysis as a tool in evaluating higher education service quality: The empirical results of Estig’. Creating Global Competitive Economies: A 360-Degree Approach, 306–315. The Society of Motor Manufacturers and Traders. (2013). Motor industry facts’ SMM information. http://www.Smmt.co.uk/wpcontent/uploads/sites/2/SMMT-2013.MotorIndustry-Facts-guide. pdf?9b6f83. Accessed June 2, 2014. Vrkljan, B. H., & Anaby, D. (2011). What vehicle features are considered important when buying an automobile? An examination of driver preferences by age and gender. Journal of Safety Research, 42, 61–65.

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[]Chapter 25

[]Factors Affecting Satisfaction with Condensed Milk Amongst Teh-tarik Restaurateurs in West Malaysia Sri Sivabalan Danapalam and Choy Tuck Yun

[]Abstract Teh-tarik restaurateurs serve a popular main beverage called teh-tarik which is a frothy milk-based tea. Condensed milk is an important cost of teh-tarik. Although condensed milk is a commodity with low opportunity for differentiation, Brand X condensed milk (Brand X) is premium-priced at about 8–10 % higher than other brands of condensed milk in Malaysia. However, teh-tarik restaurateurs in West Malaysia were willing to pay a premium price for Brand X because they were satisfied with Brand X. The aim of this research is to explore the factors which affect the satisfaction with condensed milk amongst teh-tarik restaurateurs in Malaysia. Extant literature suggested that five factors of perceived quality such as logistic process responsiveness, sales force effectiveness, brand association and trade promotion would significantly influence the teh-tarik restaurateurs’ satisfaction with Brand X. A survey was conducted on 80 respondents. Results from statistical analyses indicated that all the five factors are positively correlated with the satisfaction of Brand X. Furthermore, the factors explained 63 % of the variance in satisfaction. The managerial implication is that Brand X can use the findings from this research to examine the effectiveness of their logistic processes, sales force effectiveness, brand perception, trade promotion activities and the quality of their condensed milk. The results from this research are generalisable to the target population of teh-tarik restaurateurs in West Malaysia who use Brand X condensed milk. Keywords Brand

[]Business-to-business Malaysia Milk Satisfaction

[]S.S. Danapalam (&) C.T. Yun Sunway University Business School, Sunway University, 47500 Bandar Sunway, Selangor Darul Ehsan, Malaysia e-mail: [email protected] C.T. Yun e-mail: [email protected] © Springer Science+Business Media Singapore 2016 M.A. Abdullah et al. (eds.), Regional Conference on Science, Technology and Social Sciences (RCSTSS 2014), DOI 10.1007/978-981-10-1458-1_25

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[]1 Introduction Teh-tarik restaurateurs serve a popular main beverage called teh-tarik which is a frothy milk-based tea. Condensed milk is an important cause of teh-tarik. Although condensed milk is a commodity with low opportunity for differentiation, Brand X condensed milk (Brand X) is premium-priced at 25 % higher than several other brands of condensed milk in Malaysia. However, teh-tarik restaurateurs in West Malaysia were willing to pay a premium price for Brand X because they were satisfied with Brand X. The aim of this research is to explore the factors which affect the satisfaction with condensed milk amongst teh-tarik restaurateurs in Malaysia.

[]2 Prior Literature Satisfaction is a person’s feelings of pleasure or disappointment resulting from comparing a product’s perceived performance (or outcome) in relation to his or her expectation (Kotler and Keller 2006). In the business-to-business environment, Helgesen (2007) found that Norwegian fish exporters’ satisfaction with their suppliers were dependent on their perceptions of quality, logistic process responsiveness, trade promotion and sales force effectiveness. In retail brands, Pappu and Quester (2006) found that brand association also contributes to customer satisfaction. Extant literature reveals five factors which affect the satisfaction with condensed milk amongst teh-tarik restaurateurs in Malaysia. Perceived quality is consumer’s judgment about a product’s overall excellence or superiority (Zeithaml 1988). In grocery products, Anselmsson et al. (2007), Schellhase et al. (1999) found that perceived quality influenced the level of customer satisfaction. Supply chain effectiveness is defined as the level of capability and ability to address changes in customer demand (Lummus et al. 2003). A sub-set on supply chain effectiveness is the logistic process responsiveness (Sukati et al. 2010). Supply chain responsiveness is considered an aspect that creates competitive advantage over competitors and increases customer satisfaction (Li et al. 2006). Furthermore, sales personnel provide a personal touch in a buying–selling situation because they understand and utilize their knowledge on capabilities of the supplier and the products offered to develop a creative solution in purchase decision making (Blythe and Zimmerman 2005). Increased satisfaction among buyers can be formed if sales personnel are able to assist the buyers in spotting potential problems that are related to purchase decision and making genuine efforts to fix them efficiently and effectively (Sashi 2009). Brand association is the informational nodes that have a meaning for the consumers, linking to brand nodes in memory (Keller 1993) and is the foundation for both purchase decision and brand loyalty (Aaker 1991). Trade promotions can come in various forms such as premium give-aways,

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[]trade discounts, allowance and payment discount (Blythe and Zimmerman 2005). Trade promotions are marketing promotions aimed at those who comprise the distribution channels to increase their satisfaction (Peter and Donnelly 2011). From the above discussion, hypotheses were developed to test for positive relationships between satisfaction with Brand X condensed milk among teh-tarik restaurateurs in West Malaysia and their perceptions of: H1 H2 H3 H4 H5

[]Quality of Brand X Logistic process responsiveness of the distributors of Brand X Sales force effectiveness of Brand X Brand association with Brand X Trade promotions of Brand X.

[]3 Method The target population was teh-tarik restaurateurs in West Malaysia who use Brand X. A purposive sampling strategy was employed. The sample population was teh-tarik restaurateurs who are the trade customers of Brand X in the cities and sub-urban areas of Kuantan, Ipoh and Kuala Lumpur that were accessible to the researcher who was a former distributor of Brand X. The questionnaire consisted of 46 questions; the first question was a screening question to ensure that only restaurant operators who used Brand X responded. The next four questions requested demographic information. The remaining 41 questions collected respondents’ perceptions in which the respondents were asked to rate from (1) “very strongly disagree” to (4) “neither agree nor disagree” to (7) “very strongly agree” for the next 41 questions. Respondents’ perceptions should be viewed as a multi-dimensional construct and the measurement items should be generated with the same dimensions of service quality (Sureshchandar et al. 2001). These questions were adapted from the literature reviewed. Prior to bringing the questionnaire to potential respondents, a pilot study was conducted on six teh-tarik restaurateurs who use Brand X. Their feedback led to improvements in the survey instrument. The improved version of the questionnaire was then used to conduct the actual survey.

[]4 Findings Data was collected personally from 80 respondents, representing about 35 % of teh-tarik restaurateurs who are the trade customers of Brand X in the cities and sub-urban areas of Kuantan, Ipoh and Kuala Lumpur. All the respondents completed the questionnaires because the researcher was a former distributor of Brand X.

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[]All the respondents were decision-makers in the purchase of condensed milk. The majority of the respondents (63.75 %) exclusively use Brand X in their businesses; respondents using 80, 50 and 20 % of Brand X consists of 15, 16.25 and 5 % respectively. The teh-tarik restaurateurs in Peninsular Malaysia consist of different service formats. Fifty percent of the respondents were from corner shop service format with one lot or larger. The other half were from intermediate shop lots of one or more lots service format. Respondents purchased between 15 and 40 cartons of sweetened condensed milk per month. The business location of the respondents and their demographic profiles suggest that the respondents were representative of teh-tarik restaurant operators in Peninsular Malaysia who use Brand X condensed milk. The data was analysed using SPSS version 19. The factors were tested for reliability using Cronbach’s Alpha reliability test, as shown in Table 1. Cronbach Alpha for all factors were more than 0.7 and considered as strong and reliable for further analysis (Coakes et al. 2006), including Brand Association (0.673) which is considered to be marginally strong. The Pearson product-moment correlation test was used to determine the existence of linear relationship between the respondents’ satisfaction with Brand X and their perceptions of the brand (Weathington et al. 2010). The results show that all the factors were positively related to the respondents’ satisfaction with Brand X. Pearson’s correlation coefficient r for all the factors were between 0.449 (Quality) and 0.646 (Logistic) which were all significant at 0.01 level, as shown in Table 2. All hypotheses were not rejected.

[]Table 1 Results of reliability analysis Factors

[]No. of items

[]Cronbach’s alpha

[]Reliability

[]Mean score

[]Satisfaction Quality Logistic Sales force effectiveness Brand association Trade promotion

[]7 9 10 6 4 4

[]0.802 0.799 0.868 0.852 0.673 0.833

[]Strong Strong Strong Strong Strong Strong

[]5.2446 4.4297 4.7888 4.7646 4.1531 4.2875

[]Table 2 Results of correlation analysis in this research Hypothesis

[]Construct

[]Pearson’s correlation r

[]Sig.

[]Remarks

[]H1 H2 H3 H4 H5

[]Quality Logistic Sales force effectiveness Brand association Trade promotion

[]0.449 0.646 0.582 0.564 0.557

[]0.000 0.000 0.000 0.000 0.000

[]Not Not Not Not Not

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[]rejected rejected rejected rejected rejected

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[]Table 3 Results of multiple regression analysis Dependent variable: satisfaction with Brand X Independent variables: perceived quality, logistic process responsiveness, sales force effectiveness, brand association, and trade promotions Model Unstandardized Std. coefficients t-value coefficients beta Beta Std. Error (Constant) Quality Logistic process responsiveness Sales force effectiveness Brand association Trade promotions R square = 0.656 F = 28.199

[]1.319 0.057 0.326

[]0.386 0.088 0.067

[]0.58 0.399

[]0.116 0.077 0.142 0.218 0.066 0.290 0.152 0.058 0.226 Adjusted R square = 0.633 p-value = 0.0001

[]Sig.

[]3.415 0.646 4.852

[]0.001 0.520 0.000

[]1.516 3.304 2.623

[]0.134 0.01 0.011

[]The findings were supported by extant literature. Changes in quality of a brand directly effects restaurateurs’ satisfaction (Anselmsson et al. 2007; Schellhase et al. 1999). Within the industrial buying context, responsive logistics increases customer satisfaction (Li et al. 2006; Lummus et al. 2003). An effective sales force ensures satisfaction among organizational buyers (Sashi 2009). Brand association are positively related to satisfaction (Aaker 1991; Keller 1993). Sales promotions create increased interest and participation amongst members in trade channels (Peter and Donnelly 2011). Multiple regression analysis was used to test whether Satisfaction with Brand X can be significantly influenced by the respondents’ perceptions of Brand X’s Perceived quality, Logistic process responsiveness, Sales force effectiveness, Brand association and Trade promotions. The multiple regression analysis yielded a significant regression model with F value of 28.199 and significant at the 0.01 level, as shown in Table 3. The results of the regression indicated that the respondents’ perceptions of the Brand X’s Perceived quality, Logistic process responsiveness, Sales force effectiveness, Brand association, and Trade promotions influenced 63.3 % of the variance of their satisfaction with Brand X at 0.01 significance level (adjusted R2 = 0.633, F = 28.199, p < 0.0001).

[]5 Conclusion Teh-tarik restaurateurs serve a popular main beverage called teh-tarik in which condensed milk is an important cost. Although condensed milk is a commodity with low opportunity for differentiation, Brand X is premium-priced at about 8–10 % higher than several other brands of condensed milk in Malaysia. However,

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[]teh-tarik restaurateurs in West Malaysia willing to pay a premium price for Brand X because they were satisfied with Brand X. This research examined the factors that could influence satisfaction of premium-priced Brand X sweetened condensed milk among teh-tarik restaurateurs in West Malaysia. Past literature suggested that the five factors of perceived quality, logistic process responsiveness, sales force effectiveness, brand association and trade promotion would significantly influence teh-tarik restaurateurs’ satisfaction in purchasing a consumer product. A survey was conducted on 80 teh-tarik restaurateurs. Reliability and correlation tests were conducted on the data collected. The results showed positive correlations between the five factors with satisfaction. The teh-tarik restaurateurs in West Malaysia were willing to pay premium prices for Brand X because they were satisfied with Brand X’s logistic processes, sales force effectiveness, brand perception, trade promotion activities and the quality of their condensed milk. Interestingly, Brand X’s logistic processes did not cause their condensed milk containers to be damaged during delivery and had minimal errors in their billing. In addition, Brand X’s sales force provided satisfactory service with proper follow up with buyers on order status. The teh-tarik restaurateurs also felt that their customers had positive association with Brand X. Brand X’s trade promotion activities such as premium give-aways and trade discounts offered are also interesting to the teh-tarik restaurateurs. The findings of positive correlations between the five factors with satisfaction were consistent with extant literature. The multiple regression analysis of the five factors explained 63.3 % of the variance in satisfaction, further supporting extant literature. The managerial implication is that Brand X can use the findings from this research to examine the effectiveness of their logistic processes, sales force effectiveness, brand perception, trade promotion activities and the quality of their condensed milk. The results from this research are generalisable to the target population of tehtarik restaurateurs in West Malaysia who uses Brand X condensed milk. Further research should be conducted on teh-tarik restaurateurs who do not use Brand X condensed milk to reveal more information on the factors that influence teh-tarik restaurateurs’ satisfaction with condensed milk.

[]References Aaker, D. A. (1991). Managing brand equity: Capitalizing on the value of a brand name. New York: The Free Press. Anselmsson, J., Johansson, U., & Persson, N. (2007). Understanding price premium for Grocery products: A conceptual model of customer based brand equity. Journal of Product and Brand Management, 16(6), 401–414. Blythe, J., & Zimmerman, A. (2005). Business-to-business marketing: A global perspective (1st ed.). London: Thomson Learning. Coakes, S. J., Steed, L., & Dzidic, P. (2006). SPSS version 13.0 for windows. Australia: Wiley.

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[]Helgesen, O. (2007). Drivers of customer satisfaction in business-to-business relationship: A case study of Norwegian Fish exporting companies operating globally. British Food Journal, 109 (10), 819–837. Keller, K. L. (1993). Conceptualizing, measuring, and managing customer-based brand equity. Journal of Marketing, 57, 1–22. Kotler, P., & Keller, K. L. (2006). Marketing management. New Jersey: Pearson Prentice Hall. Li, G., Lin, Y., Wang, S., & Yan, H. (2006). Enhancing agility by timely sharing supply information. International Journal of Supply Chain Management, 11(5), 425–435. Lummus, R. R., Duclos, L. K., & Vokurka, R. J. (2003). The impact of marketing initiative on the supply chain. Supply Chain Management, 8(3), 317–323. Pappu, R., & Quester, P. (2006). Does customer satisfaction lead to improved brand equity? An empirical examination of two categories of retail brands. The Journal of Product and Brand Management, 15(1), 4–14. Peter, J. P., & Donnelly, J. H. (2011). Marketing management: Knowledge and skills (10th ed.). New York: McGraw-Hill Irvin. Sashi, C. M. (2009). Buyer behavior in business market: A review and integrative model. Journal of Global Business Issues, 3(2), 129–138. Schellhase, R., Hardock, P., & Martin, O. (1999). Customer satisfaction in business-to-business marketing: The case of retail organizations and their suppliers. The Journal of Business and Industrial Marketing, 14(5), 416–432. Sukati, I., Hamid, A. B. A., Baharun, R., & Tat, H. H. (2010). A study of supply chain management practices: An empirical investigation on consumer goods industry in Malaysia. International Journal of Business and Social Science, 2(17), 166–176. Sureshchandar, G. S., Rajendran, C., & Kamalanabhan, T. J. (2001). Customer perceptions of service quality—a critique. Total Quality Management, 12, 111–124. Weathington, B. L., Cunningham, C. J. L., & Pittenger, D. J. (2010). Research methods for behavioral and social sciences. New Jersey: Wiley. Zeithaml, V. A. (1988). Consumer perceptions of price, quality and value: A means-end model and synthesis of evidence. Journal of Marketing, 52(3), 2–22.

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[]Chapter 26

[]The Impact of Textile Centre Towards Textile Traders: A Case Study in Bandar Tun Abdul Razak, Pahang Faizan Abd Jabar, Sharifah Norhuda Syed Wahid, Noor Affeeda Ramli, Suhanom Mohd Zaki, Mohd Faizal Azrul Azwan Che Harun and Muhammad Zahran Abd Rahman

[]Abstract Business can run very best by gaining the best profit that directly depends to the customer. Recently, customers are very smart to buy any products or services to fulfil their needs. For sure, the product or services with the best quality and the best price offered will be chosen. A case study among 40 textile traders at Bandar Tun Razak Jengka, Pahang has become a platform to identify the impact of existence the textile centre, known as Jengka Street to them. A self-developed questionnaire has been used to collect the data and the data collected was analysed using SPSS 20.0. The present study shows that the overall average of monthly income among the selected traders has been decreased significantly by RM397.10 after Jengka Street was operated. However, the impact more serious faced by male traders with loss RM1055.55 per month. In addition, the impact of Jengka Street related to the price and the choices of textiles and its location itself. The number of choices of textile become the most important factor that make them lost many F.A. Jabar (&) N.A. Ramli S.M. Zaki M.F.A.A.C. Harun M.Z.A. Rahman Faculty of Business Management, Universiti Teknologi MARA Pahang, 26400 Bandar Tun Razak Jengka, Pahang, Malaysia e-mail: [email protected] N.A. Ramli e-mail: [email protected] S.M. Zaki e-mail: [email protected] M.F.A.A.C. Harun e-mail: [email protected] M.Z.A. Rahman e-mail: [email protected] S.N.S. Wahid Faculty of Computer and Mathematical Sciences, Universiti Teknologi MARA Pahang, 26400 Bandar Tun Razak Jengka, Pahang, Malaysia e-mail: [email protected] © Springer Science+Business Media Singapore 2016 M.A. Abdullah et al. (eds.), Regional Conference on Science, Technology and Social Sciences (RCSTSS 2014), DOI 10.1007/978-981-10-1458-1_26

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[]customers. Hopefully, this study will give a potential action should be taken by textile traders in order to improve their business without any malicious feelings. Keywords Customers

[]Impact Textile centre Textile traders

[]1 Introduction Textiles industry plays important roles in the most of the countries in the world where it is the place supplied apparel, home textiles, etc. In China, most of household preferred to spend more on textiles as compared to foods and other expenditures (MacDonald et al. 2013). This shows textiles become a priority in their life. One of the famous textile centres in Pahang state is Jengka Street which is located nearest at Bandar Tun Razak Jengka, Pahang. Even though it is considered as a small township which located at remote area but it is able to fulfil the local demand of apparels and textiles from a few districts. Every Saturday morning, small traders will display and sell household items ranging from kitchen wares to apparel and textiles. From the observations, Jengka Street has its own niche market that offer cheaper price fabric materials rather than textile business premises at Bandar Pusat Jengka. Due to the rivalries, a few apparels and textile shops have to be shut down or change their product sales. Sakakibara and Porter (2000) supported this whereby companies in proximity to each other tend to create competitive pressure. Therefore, the purpose of the study is to determine the impact of textile centre in Jengka to the textile traders in Bandar Pusat Jengka.

[]2 Business Owner Traits The traits of successful entrepreneurs have been discussed at many times by previous literatures. Many researchers tried to find out what are the traits that influenced a successful business. According to Islam et al. (2011), the traits of entrepreneurs or business owner, such as demographic traits, individual traits, personal traits, entrepreneur orientation and entrepreneur readiness was found to be significant in influencing business success of SMEs in Bangladesh. They also found that the duration of organization operation also has significant effect towards business success where the SMEs that operated longer period were more successful compared to those who operated shorter period. Meanwhile, Uy (2011) identified the value system of Filipino business owner in exploring the character traits that motivates Filipino business owners by prefer more personal and moral values which actually reflect their strong desire to uplift their economic condition. The gender also could be factors affected the successful of business. Even though the number of women entrepreneurs increasing per year but not really well perform on quantitative measures such as job creation, sales turnover

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[]and profitability, (Cooper et al. 1994; Du Riets and Henrekson 2000). This was agreed by Blanco et al. (1996), Carter (1997) stated when the business difficulties comes the women entrepreneur prefer seek assistance first from family, followed by friends and last form manageable business sources. This scenarios might drop the business performance due to lack of information and resource needed. While male entrepreneurs rather seek advice from their networks and make them more advance.

[]3 Jengka Street and the Competitiveness Among Small Business Traders Jengka Street is popular textile centre which is located 2 km away from Bandar Tun Abdul Razak Jengka Pahang. The abundance of products mostly form China in Jengka Street is might be the one of the factors that prevalently contributes to the closing down of the textile shops in Bandar Pusat Jengka apart from the competition. Furthermore, consumers are always looking for different varieties. A survey conducted by Watchravesringkan et al. (2010), found that Thai consumers look for a variety of colours, patterns and textures when purchasing garments. While Rogoff et al. (2004) mentioned about two factors influence the performance of business; internal factors comprise of the characteristic of the owners and business such as age of owners, number of years in the business, management practices, experience and business skills, meanwhile external factors refers to factors beyond the control of the owners such as business opportunity, availability of resources and competition. For example, Gadenne (1998) reported that management practices are associated with small firm performance is pricing of the product lower than the competitors by reducing cost and ensuring product quality is found to be positively related to the small firm performance. On the other hand, they do not have to bear an expensive rental cost makes them able to sell at lower price. Indeed, these are the same factors that Jengka Street traders applied where they offer a low-price products, located at open space and free parking, friendly traders, many choices and varieties apparels products and textiles. The textile traders in Bandar Jengka have less attractive promotion, unpleasant personality and late updating the design and clothes. In order to be competitive and responsive towards customers’ preferences, textile and apparel industry needs an effective and integrated supply chain practices that can reduce the lead times for quick inventory replenishment (Bruce and Daly 2004). These weaknesses have been taken by textile centre to give more choices, cheap prices, free parking and one stop centre to the local. These findings are supported by Adhikari and Weeratunge (2007) who mentioned that competing on price and quality are of utmost importance in ensuring good performance and sustaining in the industries. While Beatrice et al. (2012), Gadenne (1998) mentioned instead of price and quality, the other important factors to textile traders are good business location, education, work experience, pleasant personality, readiness to take the challenge and available

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[]capital. In a nutshell, a study by Alam (2010), it was found that small business in Malaysia is constantly monitoring their close competitors to ensure that they stay one step ahead of their competitors.

[]4 Research Methodology The sample consisted of 40 textile traders at Bandar Tun Razak Jengka, Pahang those who participated on a voluntary basis by answering a questionnaire. The data was collected through a self-developed questionnaire which included two sections: Section A and Section B. Section A contains a demographic questions and Section B contains 21-items of Likert scale questions to measure the impact of Jengka Street (five-items), competitive factors; price, choices and location (eight-items) and the initiative taken by the textile traders to compete to other traders (eight-items). Likert scale were used to record the responses that ranges from 1 = Strongly Agree to 5 = Strongly Disagree. The statistical procedures for social sciences (SPSS) 20.0 (SPSS Inc, 2008) was used to code and analyze the data. The assumptions of parametric statistics were tested on the data. The analysis continued with independent t-test to evaluate whether the average monthly income differed significantly before and after Jengka Street was operated followed by the regression analysis to check whether there exist significant model between impact of Jengka Street and three different factors.

[]5 Findings and Discussion In total, 18 male and 22 female textile traders in Bandar Tun Razak Jengka, Pahang involved in this study. The monthly income among the traders before Jengka Street was operated indicated that the income is high for them (M = 5775.00, SD = 2454.59) and the data were normally distributed. Related to operation of Jengka Street, their income has been decreased significantly by RM397.10 (M = 4775.00, SD = 2347.80) with t(39) = 2.518, p = 0.016 (p < 0.05). The value of p less than the significant level (a = 0.05), supported that there is enough evidence to conclude that the monthly income are differed before and after Jengka Street was operated. Thus, this shows that Jengka Street able to affect the businesses at the vicinity area even though the operation hours is just half day and once a week. In comparison, the male traders have monthly income higher than female traders which both males (M = 5944.44, SD = 2577.56) and females (M = 5636.36, SD = 2401.30) before Jengka Street was operated. The income were normally distributed and have equal variances (F = 0.009, p = 0.698). On the other hand, their income has been decreased after that whereby both the males (M = 4888.89, SD = 2446.82) and females (M = 4681.82, SD = 2317.35) income were normally distributed and have equal variances (F = 0.096, p = 0.758). Based on these

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[]findings, it shows that male traders faced the more serious problem compared to female traders with RM1055.55 decrement. Regression analysis result shows that the model obtained was significant (F = 4.418, p = 0.010) supported by the value of p which is less than the significant level (a = 0.05). The model obtained is as follows Y ¼ 0:039 þ 0:446X1 þ 0:115X2 þ 0:637X3 ; where X1 = price, X2 = choices and X3 = location. The choice factor becomes the most important factor followed by price and location. This finding was supported by the result revealed by Watchravesringkan et al. (2010) in his study at Thailand. It was also agreed by Gadenne (1998), Beatrice et al. (2012), who mentioned about location and price factors. Thus, as an overall it can be concluded that textile centre has given an adverse impact towards textile traders by offering better choices, price and location.

[]6 Conclusion and Recommendation From the findings above, the entire elements have significant relationship. As inference, this study found out that the impact of textile centre towards performance of textile traders is due to choice factor followed by price and location. Most customers prefer to buy textiles with variety of choices and they also considering of price and location. Basically, customers prefer to buy textiles with the latest trend. As a trader or seller, they must provide variety of choices in order to attract customers to buy their textiles with the reasonable price and quality. Also, business location has to be accessible and near to accommodation and facilities. All these contributing factors have given huge impact towards sales performance of textile traders where the result shows a decrement in their sales after the operation of Jengka Streets. In order to overcome these problems, textile traders in Bandar Tun Abdul Razak must be creative and improve their collection and price. This is because, difference in price offered by traders in Jengka Street and Bandar Tun Razak Jengka makes customers switch to the textile centre and force the textile traders to shut down their businesses or change the business nature.

[]References Adhikari, R., & Weeratunge, C. (2007). Textiles and clothing in south Asia: Current status and future potential. South Asia Economic Journal, 8, 171–203. Alam, M. M. (2010). Effect of market orientation on small business performance in small town in Malaysia, an empirical study on Malaysian small firms. Management & Marketing Journal, VIII, 91–104.

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[]Beatrice, E. I., Mugenda, O., & Mburugu, K. (2012). Business performance of local apparel traders in Nairobi’s competitive liberalised market. Journal of Emerging Trends in Economics and Management Sciences (JETEMS), 3(1), 85–91. Blanco, H., LeBrasseur, R., & Nagarajan, K. V. (1996). Successful women entrepreneurs in Northeastern Ontario. In Changing lives: Women in Northern Ontario, Margaret. Ontario: Dundum Press. Bruce, M., & Daly, L. (2004). Lean or agile: A solution for supply chain management in the textiles and clothing industry. International Journal of Operation & Production Management, 24(2), 151–179. Carter, N. (1997). Entrepreneurial processes and outcomes: The influence of gender. In P. Reynolds & S. White (Eds.), Economic growth, men, women and minorities. Westport, CT: Quorum Books. Cooper, A., Gimeno-Gascon, F. J., & Woo, C. (1994). Initial human and financial capital as predictors of new venture performance. Journal of Business Venturing, 9, 371–395. Du Riets, A., & Henrekson, M. (2000). Testing the female under-performance hypothesis. Small Business Economics, 14(1), 1–10. Gadenne, D. (1998). Critical success factors for small business: an inter-industry comparison. International Small Business Journal, 17, 36–55. Islam, M. A., Khan, M. A., Muhammad Obaidullah, A. Z., & Alam, M. S. (2011). Effect of entrepreneur and firm traits on the business success of small and medium enterprises (SMES) in Bangladesh. International Journal of Business and Management, 6(3), 289–299. MacDonald, S., Pan, S., Hudson, D., & Tuan, F. (2013). Chinese domestic textile demand: Where they buy does matter. China Agricultural Economic Review, 5(3), 312–327. Rogoff, E. E., Lee, M. S., & Suh, D. C. (2004). Who done it? Attributions by entrepreneurs and experts of the factors that cause and impede small business success. Journal of Small Business Management, 42(4), 364–376. Sakakibara, M., & Porter, M. E. (2000). Competing at home to win abroad: Evidence from Japanese industry. Review of Economics and Statistics, 53(2), 310–322. Uy, A. O. O. (2011). What motivates entrepreneurs? A study of the value systems of filipino entrepreneur. International Journal of Entrepreneurship, 15, 73–97. Watchravesringkan, K., Karpova, E., Hodges, N. N., & Copeland, R. (2010). The competitive position of Thailand’s apparel industry. Journal of Fashion Marketing and Management, 14 (4), 576–597.

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[]Chapter 27

[]Exploring Islamic Brand Experience Through Focus Group: Case Study on Airlines Industry in Malaysia Rosidah Musa, Rafidah Othman and Mazzini Muda

[]Abstract Positive brand experience is important to the survival of any company as it leads to brand loyalty. Muslims account for 23 % of the world’s population and are expected to grow by 35 % to be 2.2 billion in 2030. As such, companies who target Muslims should provide brand experiences that are expected and tolerated by Muslims. This paper discusses the procedures and findings from focus group discussions intended to identify the determinants of Islamic Brand Experience in the airlines industry in Malaysia. Two groups were formed based on the religious status of Muslims and Non-Muslims, comprising ten participants per group. The focus group interviews were audiotaped, videotaped, transcribed, and translated. The participants from both groups were given structured questions, and the discussions were moderated by an experienced interviewer. The findings revealed, Muslim participants prefer the airlines operating in Malaysia to provide Shariah-compliant experiences such as banning of alcohol beverages onboard, reciting of prayer during every takeoff and landing, preferred flight attendants to wear modest uniform. Meanwhile, the Non-Muslims preferred the spirituality practices not to be openly announced on the public announcement during the flight. They would rather have their privacy in reciting their prayer. The challenges to the rigor of the research findings created by these methodological issues are considered. Keywords Airlines industry

[]Islamic brand experience Shariah compliant

[]R. Musa R. Othman (&) M. Muda Faculty of Business Management, Universiti Teknologi MARA, 40450 Shah Alam, Selangor, Malaysia e-mail: rafi[email protected] R. Musa e-mail: [email protected] M. Muda e-mail: [email protected] © Springer Science+Business Media Singapore 2016 M.A. Abdullah et al. (eds.), Regional Conference on Science, Technology and Social Sciences (RCSTSS 2014), DOI 10.1007/978-981-10-1458-1_27

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[]1 Introduction The airline industry in Malaysia is passing through a rough phase with its National airlines facing various unprecedented incidents and financial issues. In times of such turbulence, retaining passengers as loyal patrons of the company can bring a dramatic improvement in airlines’ competitive position. Thus, it is important for the marketing professional to understand why customers’ experience is important in influencing their future behavior (Nadzri and Musa 2014). Likewise, it is also critical to determine how to conceptualize and operationalize the concept of Islamic brand experience empirically. The phenomenon of Islamic marketing and branding as a new and separate discipline has attracted the attention of both academics and practitioners from within and outside the Muslim world (Wilson and Liu 2011). Therefore, with the pre-existing Muslim consumer, this segment can be targeted, reached and to a certain extent, predicted by marketers. The changes of demographics and purchasing power of Muslim consumers and the success of Muslim entrepreneurs have begun to render Islamic marketing a scholarly and managerially attractive field (Sandikci 2011). The objective of this study is to understand how a consumer perceives and understands the Islamic brand experience practices in a Muslim country like Malaysia which has multiracial populations. It starts with an explanation of basic covers towards Islamic branding and finally touches the feeling or emotions towards Islamic brand experience. Thus, brand experience initiative has emerged as one of the emerging concepts amongst top management practices, and it has become the priority in customer orientation.

[]2 Islamic Branding The Islamic market is totally Shariah compliant, meaning a brand should fulfill all aspects of the brand for the Muslims consumer because Muslims consumer consumes those goods and services that fulfill the Islamic laws and norms. According to Quran, Shariah is comprised of five main branches: adab (behavior, morals and manners), ibadah (ritual worship), i’tiqadat (beliefs), mu’amalat (transactions and contracts) and ‘uqubat (punishments). These branches combine to create a society based on justice, pluralism and equity for every member of that society. Furthermore, Shariah forbids that it be imposed on any unwilling person. Islam’s founder, Prophet Muhammad, demonstrated that Shariah may only be applied if people willingly are apply it to themselves, never through forced government implementation. Nevertheless, until now there seems to be little clear understanding of what the term Islamic branding means (Copinath 2007), therefore, to avoid such confusion and reduce the likelihood of improper use, the term Islamic branding was analysed by several scholars. From Alserhan (2010) perspective, the true Islamic brands are Halal produced in an Islamic country and meant for Muslim consumers. Second, traditional Islamic brands originating in Islamic countries and targeting

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[]Muslim consumers are assumed to be Halal. Third is inbound Islamic brands that is Halal brands that target Muslim consumers but originate from non-Islamic countries and outbound Islamic brands that is Halal brands that originate from Islamic countries but not necessarily targeting Muslim consumers. Alserhan (2010), Wilson (2011) also defines an Islamic brand according to three constructs: country of origin, target audience, and Halal. Meanwhile, Noor (2010) states that Islamic branding is a branding approach which is friendly or compliant with Shariah principles. From all understanding of terms of Islamic branding, Jumani and Siddiqui (2012) stated a brand should fulfill all aspects of the brands for the Muslim consumers because the Muslim consumer consumes those goods or services, which fulfill the Islamic laws and norms. Muslim consumers want brands that speak to them Power and Abdullah (2009). Islamic brands or Halal brands are created according to the Islamic principles that guide what is permitted not just in the food industry but also in cosmetics, pharmaceuticals, logistics, clothing, finance, hospitality and banking (Minkus-McKenna 2007). The Halal food market and Islamic finance sector have exploded in the past decade and the many other Islamic products and services including cosmetics, real estate, hotels, fashion, and insurance, (Alserhan 2010).

[]3 Brand Experience Experience can only occur when consumers search, receive and consume product. Indeed, there is much meaning of experiences; nonetheless it varies on the environment setting. When consumers consume a product direct or indirectly, it is called product experience (Hoch 2002). On the other hand, shopping experience exists when consumers are exposed to the physical environment of the store (Kerin et al. 2002). However, feeling, fantasies and fun are hedonic dimensions that create customer experience (Holbrook and Hirschman 1982). As to date, most studies emphasize on the product attributes and shopping ambience. Scholars still explore on how consumers perceive and use brand experience in making purchasing decision. As other service industries, building a relationship with consumers favors long-term success of the companies, especially in the airlines industry. The airlines industry was the first to implement relationship marketing programs to enhance relations with their passengers (Kim et al. 2001). However, frequent flyer programs do not have their intended returns anymore due to similar programs applied by other airlines companies. The airlines companies need to have an immersive brand experience to differentiate their brand to be different from others. The outcomes of positive experience lead to interest, trust and loyalty of a brand (Musa and Kassim 2013). It is proclaimed that brand experience significantly influences satisfaction, faithfulness, and attitude elements through brand personality (Brakus et al. 2009). Lindstrom (2005) firmly asserts that future research should explore the role of brand experience in the long run (Vogel et al. 2008). Today’s marketers increasingly engage with brand experience by creating appealing marketing activities for

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[]consumers. The airline industry is struggling to provide a unique and distinctive experience to the consumers. Brand experience enables to amplify the sense of emotion as consumers are strongly attached to a brand. It is said that stimulation of loyalty creates an element of emotion throughout the engagement, persuasive and consistency (Sahin et al. 2011; Morrison and Crane 2007). The importance of consumer experience has been proven to evoke the consumer’s emotional feelings towards loyalty Gentile et al. (2007). Indeed, the brand experiences are gaining most of the attention in the eyes of marketers. Yet, there is still lack of precise definition concept and empirical research on the literature as many researchers have strongly addressed the absence in the empirical support (Bäckström and Johansson 2006; Verhoef et al. 2009). In essence, brand experience concept remained vague and lacked in thorough theoretical development. Regarding the abovementioned research findings, the researchers propose to integrate existing brand experience dimension with Pleasure-Arousal-Dominance (PAD) Theory with Schmitt (1999) scale item.

[]4 Methods and Panel Like other social science studies, to investigate Islamic brand experience in-depth, the focus group has been conducted. The idea of a focus group is to unravel the feeling and emotions related to Islamic brand experience. Such a qualitative method explores width of area research and to discuss particular issues pertaining the industry. Respondents are selected based on the frequency of travel via commercial flight and a minimum ratio of 3:1 flying with National Airlines and other airlines brands. We held two separate focus group sessions for Muslim and Non-Muslim to encourage the respondents to feel free in expressing their feelings without the fear of having to censor their opinions or language. Although we were keen to ensure the participants represented a range of ages and included a relative mix of a women and men, our aim was to ensure we had a sample of participants who had gone through the travel experience with National Airlines. The focus groups allowed an exploration of participants’ experiences about the research theme, and they could also express their feelings and emotions towards segmentation given in every discussion. We primarily aim to bring together a theoretical sample with the purpose of creating a new dimension in Pleasure-Arousal-Dominance (PAD) Theory by Mehrabian and Russell (1974).

[]4.1

[]Focus Group In-depth Question

[]We begin our focus group session by asking the participants to recall their travel experience in general. This study also aimed to investigate factors that may influence ticket purchasing by a customer. It also acts as a platform to understand the

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[]preferences of respondents. The session encourages the respondent to speak freely, to understand and seek emotion when choosing airlines. Why do you buy a brand, what makes you choose a brand, what are the brands that come to you mind? How do you position Malaysia Airlines and other premium airline brands? How do you rate the level of trustiness in brand X? Where do you position Malaysia Airlines? How? What actions do you take before purchasing an airlines ticket?

[]4.2

[]Explore Consumer Experience

[]The moderator began to show Malaysia Airlines logo. What does it say about MAS as a brand? What does it be symbolize, etc.: color and shape. The moderator starts to explore the insight of the respondent by conducting brand personality game. How old is he or she? Hobbies? Outer personality? Inner personality? Like or Dislike? If it is a celebrity, which personality he can be? Do you feel close to him? To evoke consumers’ emotions, structured questions were asked after the moderator showed a Malaysia Airlines corporate video (Journey 2013). What was the reaction when you saw the video? Happy? Sad? Aroused? On the lighter note, moderator asked if there is an ideal airline (mention of Islamic or spiritual elements in airlines).

[]5 Results Based on the discussion of 20 adult respondents from Klang Valley it shows that price is the main factor when purchasing a flight ticket (Tables 1 and 2). Respondents also agree that they would wait for promotions such as Matta Fair (yearly event) and browsing through websites to search for the best airlines deal offered by other competitor airlines before ending up with National airline. These will apply for those who were planning to travel on personal expenses such as holiday with family members. It is learned that the respondent agreed that their buying behavior is influenced by engaging on a social network before deciding to purchase a product or service (Nadzri and Musa 2014). Muslims passenger. The participants from both groups were given structured questions, and the ensuing discussions were moderated by an experienced interviewer. The findings revealed that 70 % of Muslim participants prefer that airlines operating in Malaysia to provide Shariah-compliant experiences such as banning of alcohol beverages onboard, reciting of prayer during every takeoffs and landings, as well as requiring flight attendants to wear modest uniform. Meanwhile, 90 % of Non-Muslims participants preferred the spirituality practices not to be openly announced on public announcement system during flight. They would rather have their privacy in reciting their prayer. The aim of this study is to understand Islamic brand experience due to potential in innovation and the development of airlines industry in Malaysia. However, the first step for airlines is to gain a deeper understanding of customer experience.

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[]288 Table 1 Factors influencing purchasing decision of flight ticket

[]R. Musa et al. Muslim respondent

[]Non-muslim respondent

[]1. Price 1. Price 2. Punctuality 2. Safety 3. Reliability 3. Punctuality 4. Safety 4. Reliability 5. Food and beverages 5. Food and beverages 6. In-flight entertainment 6. In-flight services 7. In-flight services 7. In-flight entertainment Ranks are from most important to less important

[]Strengthening the customer relationship demonstrated in this study has relevance to the airlines industry. It is evident that Islamic brand experience has opportunities to grow, but the awareness need to reach the customer market despite contrast view from the Non-Muslim market. Failure to capture potential customers might influence the consumers to change their airlines brands. It will be exciting if future researcher do more rigorous study on Islamic brand experience using Mehrabian and Russell (1974) and Brakus et al. (2009) that could improve the measures of experience for airlines passenger; these would enable airlines to begin to create individual defensible brand spaces. Acknowledgement This research was funded by Fundamental Research Grant Scheme (FRGS).

[]References Aaker, D. (1991). Managing brand equity. San Francisco: Free Press. Alserhan, B. A. (2010). Islamic branding: A conceptualization of related terms. Brand Management, 18(1), 34–49. Bäckström, K., & Johansson, U. (2006). Creating and consuming experiences in retail store environments: Comparing retailer and consumer perspectives. Journal of Retailing and Consumer Services, 13, 417–430. Chaudhuri, A., & Holbrook, M. (2001). The chain of effects from brand trust and brand effect to brand performance: The role of brand loyalty. Journal of Marketing, 65(2), 81–93. Clatworthy, S. (2012). Bridging the gap between brand strategy and customer experience. Managing Service Quality, 22(2), 108–127. Copinath, A. (2007, July 7). Branding faith. The Edge. Gentile, C., Spiller, N., & Noci, G. (2007). How to sustain the customer experience: An overview of experience components that cocreate value with the customer. European Management Journal, 25(5), 395–410. Glitz, B. (1997). The focus group technique in library research: An introduction. Bulletin of the Medical Library Association, 24(3), 208–215. Holbrook, M. B., & Hirschman, E. C. (1982). The experiential aspects of consumption: Consumer fantasies, feeling and fun. Journal of Consumer Research, 9, 132–140. Jumani, Z. A., & Siddiqui, K. (2012). Bases of Islamic branding in Pakistan: Perceptions or believes. Interdisciplinary Journal of Contemporary Research in Business, 3(9), 840–848. Kerin, R. A., Jain, A., & Howard, D. J. (1992). Store shopping experience and consumer price-quality-value perceptions. Journal of Retailing, 68(4), 379–397.

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[]Kim, B. D., Shi, M., & Srinivasan, K. (2001). Reward programs and tacit collusion. Journal of Marketing Science, 20(2), 99–119. doi:http://dx.doi.org/10.1287/mksc.20.2.99.10191 Kim, H. (2012). The dimensionality of fashion-brand experience: Aligning consumer-based brand equity approach. Journal of Fashion Marketing and Management, 16(4), 418–441. Li, L. H. B. (2012). The effects of brand experience on customer brand loyalty: An empirical study of dairy products in the Western Liaoning province. In 2012 International Conference on Information Management, Innovation Management and Industrial Engineering. Lindstrom, M. (2005). Broad sensory branding. Journal of Product & Brand Management, 14(2), 84–87. Mansor, N., & Syed Redhuan, S. A. M. (2012). Internalization of service quality: A case of Kuala Lumpur International Airport, Malaysia. International Journal of Business and Behavioural Science, 2(12). Available online: http://cprenet.com/uploads/archive/IJBBS_12–11871.pdf Minkus-McKenna, D. (2007). The Pursuit of Halal. Progressive Grocer, 86(17), 42. Mohamed, R. N., & Musa, R. (2011). Disentangle the effects of brand experience (BE) on trust, commitment and resonance: Evidence from popular fast food chain restaurant in Malaysia: Using structural equation modelling approach. In 2012 Cambridge Business and Economics Conference. Morrison, S., & Crane, F. G. (2007). Building the service brand by creating and managing an emotional brand experience. Brand Management, 14(5), 410–421. Nadzri, W. N. M., & Musa, R. (2014). Focus group method an aid to explore brand experience and contextual factors. Noor, O. (2010). Brands and Muslim consumers. Keynotes address by Miles Young, CEO Ogilvy & Mather Worldwide, Oxford Global Islamic Branding and Marketing Forum, 26–27 July, Said Business School, University of Oxford. Parker, A., & Tritter, J. (2006). Focus group method and methodology: Current practice and recent debate. International Journal of Research & Method in Education, 29(1), 23–37. Power, C., & Abdullah, S. (2009). Buying Muslim. Time South Pacific Australia, New Zealand Edition, 173, 31–34. Russell, J. A., & Mehrabian, A. (1977). Evidence for a three-factor theory of emotions. Journal of Research in Personality, 11, 273–294. Salman, F., & Siddiqui, K. (2011). An exploratory study for measuring consumers awareness and perceptions towards Halal food in Pakistan. Interdisciplinary Journal of Contemporary Research in Business, 3(2), 639–652. Sandikci, O. (2011). Researching Islamic marketing: Past and future perspectives. Journal of Islamic Marketing, 2(3), 246–258. doi:10.1108/17590831111164778 Schmitt, B., Zarantonello, L., & Brakus, J. (2009). Brand experience: What is it? How is it measured? Does it affect loyalty? Journal of Marketing, 73(3), 52–68. Schmitt, B. H., & Rogers, D. L. M. (Eds.). (2008). Handbook on brand and experience management. Cheltenhem, UK and Northampton, MA: Edward Elgar. Temporal, P. (2001). Branding in Asia. USA: Wiley. Temporal, P. (2011). Islamic branding and marketing; Creating a global Islamic business. USA: Wiley. Verhoef, V. P., Lemon, K. N., Parasuraman, A., Tsiros, R. A., & Schlesinger, L. A. (2009). Customer experience creation: Determinants, dynamics and management strategies. Journal of Retailing, 85(1), 31–41. Vogel, V., Evanschitzky, H., & Ramaseshan, B. (2008). Customer equity drivers and future sales. Journal of Marketing, 72(6), 98–108. Wilson, A., & Liu, J. (2011). The challenges of Islamic branding: Navigating emotions and Halal. Journal of Islamic Marketing, 2, 28–42. Wilson, J. A. J., & Liu, J. (2001). Shaping the Halal into a brand? Journal of Islamic Marketing, 1 (2), 107–123. Rai, A. K., & Srivastav, M. Consumer loyalty in the Indian Aviation industry: An empirical examination.

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[]Chapter 28

[]The Level of Financial Awareness Among Undergraduate Students in UiTM Sarawak Abang Feizal Abang Ibrahim, Ismariani Ismail, Adeline Engkamat and Philomena Suling Kawit Abstract Managing our finance is part of our daily routine activities. Financing activities would include investing, budgeting, saving, and planning. Financial awareness comprised of three areas which are financial concept, financial risk, and financial issues. Students of higher institution are expected to manage their own finances. Therefore this research is to investigate if the level of financial awareness among UiTM students in Kota Samarahan and how demographic factors influence their financial awareness. Three variables were tested namely gender, specialization, and hometown on how it influences their financial awareness understanding. The results show that there is no difference in mean between gender on financial awareness, and the same result also shows for hometown. Both of these testing were done using independent t-test. It is also found that that there is a significance difference between mean among specialization. The testing is done through one way anova. The result shows that both gender shows equal understanding on the concept of financial awareness and due to the accessibility of information, students staying in urban and rural area have same amount of knowledge on financial awareness. From the finding it also shows that students from the finance and marketing faculty have higher financial awareness as compared to those from the office management.

[]Keywords Financial awareness Financial concept Financial issues Financial risk

[]A.F.A. Ibrahim (&) P.S. Kawit Faculty of Business Management, Universiti Teknologi MARA Sarawak, Kampus Samarahan 1, Peti Surat 1258, 94300 Kota Samarahan, Sarawak, Malaysia e-mail: [email protected] I. Ismail A. Engkamat Faculty of Computer and Mathematical Sciences, Universiti Teknologi MARA Sarawak, Kampus Samarahan 2, Peti Surat 1258, 94300 Kota Samarahan, Sarawak, Malaysia e-mail: [email protected] A. Engkamat e-mail: [email protected] © Springer Science+Business Media Singapore 2016 M.A. Abdullah et al. (eds.), Regional Conference on Science, Technology and Social Sciences (RCSTSS 2014), DOI 10.1007/978-981-10-1458-1_28

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[]1 Introduction Finance is a basic knowledge that is required for doing our routine and daily life activities. Finance activities can be categorized as investing, budgeting, saving, and planning. “The knowledge and skills related to money management include the ability to balance a checkbook, prepare a budget and invest in financial products” (Beverly and Burkhalter 2005). A lot of students needed financial fund to get them through higher educational institutions. One of the examples of higher educational institution is Universiti Teknologi Mara (UiTM). Usually, these young adults learn to manage their finances from their parents and teachers. But then, their financial skills such as budgeting and investing are often overlooked as should to be taught to their children as one of the skills needed. According to Greenspan (2005), today the financial market and world has become more complicated when compared it to the generation before where it was more than enough if that person know how to maintain a checking and savings account at local banks and other financial institutions. So, it is important that people increase their financial literate and this has increased the responsibility of higher education institutions to facilitate the efforts to promote financial awareness.

[]1.1

[]Financial Awareness, Financial Concept, Financial Risk and Financial Issues

[]Financial Awareness has been defined as the general understanding on budgeting, conceptual knowledge of financial products offerings by financial institutions and the ability to make responsible investments (decisions) to facilitate the achievement of one’s financial goal (Macy 2001; Beal and Delpachitra 2003; cited in Worthington 2006). In the study conducted by Joyce et al (2010), the definition of financial awareness has the same meaning with the financial literacy, whereas, Chen and Volpe (1998) stated the financial awareness can be defined as financial understanding, which is linked to basic economic knowledge, comprehension of financial. According to Remund (2010), financial awareness needed an individual’s level of understanding of the basic concept of finance and their ability to manage their personal finance. Ambre (2012) state that children are educated which are starting at home on how to handle money on how to save and spend it wisely. According to Beal and Delpatchitra (2003), financial skills have become increasing in its importance that may be due to the financial market in which it becomes loose from deregulation and credit service has become simpler. Chen and Volpe (2002) state that the financial systems that consumers dealing with daily has

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[]become more complex. For example, an easy access to credit facilities, self-directed retirement account and complicated mortgage options that may make people to decide the decisions in terms of finances in the way they are not prepared for. Not being able to increase the financial awareness will be a constraint to the ability to make financial decisions.

[]1.2

[]Problem Statement

[]The current generation is faced with unexceptional debt burdens during and on completion of their studies while students have always found balancing their finances difficult, Marriott (2007). Lusardi and Mitchell (2011) believe that the rising cost of expenditure in life, such as cost of goods and services that make people to be able to make well-informed financial decisions. This situation makes people need to be prepared with some knowledge and skills concerning to personal financing or basically financial literacy. According to Xiao et al. (2004), financial education curriculum has to be dynamic in order to provide practical experience, promoting involvement as well as transfer knowledge and financial management skills to students. The Borneo Post (2011) dated on 29th June 2011 has summarized a statement from Datuk Dr. Awang Adek Hussin, Deputy Finance Minister, that “the lack of financial awareness and of available investment products at an early age may aggravate the quality of life on retirement”. Therefore, it is necessary for the financial institutions to educate and offer the resolutions to the society. Therefore, this paper is to investigate how informed is the student of UiTM Sarawak on financial matters.

[]1.3

[]Objectives

[]The general objectives of this study are to determine how demographic variables influence student’s financial awareness. The specific objectives are: (i) To determine the level of financial awareness among students. (ii) To investigate whether the Gender affect the student’s financial awareness. (iii) To investigate whether the Specialization (major) affects the student’s financial awareness. (iv) To investigate whether the Hometown affects the student’s financial awareness.

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[]Hypotheses Statement

[](i) H0: There is no difference in the mean between gender and student’s financial awareness. (ii) H0: There is no difference in the mean between hometown and student’s financial awareness. (iii) H0: There is no difference in the mean between majoring and student’s financial awareness.

[]1.5

[]Scope of Study

[]This study will be carried out using the target sample of university students from Universiti Teknologi Mara Kampus Kota Samarahan.

[]2 Literature Review 2.1

[]Introduction

[]There is a study that believes the factors that causes and contributed to financial literacy have been connected with the relationship with socio-demographic characteristics and status of family finance background (Lusardi et al. 2010). According to Mantell (2008), usually the financial literacy subjects are taught is tends to be before a student’s final year. They are taught how making an important decision, such as buying a car or taking out a credit card. Not much is known about the financial behaviour and saving behaviour of the university students in UiTM Sarawak. Not being able to increase the financial literacy will be a constraint to the ability to make financial decisions. Studies in United States and other countries show that college students had plenty to spend but they also had low levels of financial literacy and anticipate being impulse consumer (Danes et al. 1999). According to the Economic Planning Unit (2006), the majority of students, when entering the university will be the first time that they have experience on financial independence without parent’s guidance. According to Salikin et al. (2012), students should learn how to live within their means. They have to meet all financial obligations before they start to spend on things that are not necessary for living. Students usually have limited experience in managing their own money as early as 18 years old when they enter a university. As a student in university, they need to be exposed to effective financial planning as they will be burdened with education loans and personal loans when they graduate.

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[]Financial Awareness, Attitudes, Issues, and Knowledge

[]Ibrahim et al. (2009) has conducted a study of the level of financial knowledge, financial attitudes and family influences based on gender, programs and parts (semesters) of UiTM’s degree students. The researchers were using a sample size of 200 students, which uses a random sampling method across all programs. It was found that there were no differences on the level of financial knowledge and family influences based on gender, programs and parts. There were also no differences found in financial attitudes based on programs and parts. However, the differences were found in the level of financial attitudes based on genders. Study on Swedish students saving behaviour done by Tuvesson and Yu (2011), shows that female students have a more positive attitude towards saving and slightly more motivated to save while male more positively towards stocks. Regarding the students’ consumption and saving, they save because of their parents wants them to save or because of a reward or for a sense of pride. They are mainly affected by how much their family, neighbours (hometown) and friends consume (Malkiel 2011). Study done by Xu (2012), shows that most of the country surveys indicate strong regional disparities in financial literacy, as measured by awareness of financial terms and institutions, particularly between urban and rural areas. This most likely as a mirrors on the differences in access to finance, and is especially prominent in developing countries. In Ghana, 52 % of urban adults have commercial bank accounts, versus 21 % of rural adults. While rural adults are more likely to use informal financial products, these usages only partially close to the access gap. Given that the level of urbanization is still quite low in many African countries such as in Malawi, as only 16 % of those surveyed lived in urban areas, this disparity could potentially be more important than those between gender and age groups. This may partially reflect differences 14 across occupations and levels of education, as wage-earners workers (most of who live in urban areas) tend to have higher rates of financial literacy than famers in the rural areas. Ramasamy et al. (2013) has found that management students have a low level of agreement with financial literacy as an education process by which individuals improve their understanding of financial products and concepts. The students do believe that financial awareness programs in college and university curriculum will be a good and effective initiative to improve the financial literacy among students. As the results, education levels and type of Specialization (majors) has a significant influence on general financial awareness as the Accounting and Finance Specialization (majors) students showed a higher level of general financial awareness? Then, gender also plays an important influence on product knowledge of unit trust products, with males have higher mean knowledge compared to females. Llewellyn (2005) believes trust, confidence, and financial awareness become essential elements in determining the extent of risk and return to be taken.

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[]3 Research Method 3.1

[]Target Sample

[]In this study, Bachelor students in University Teknologi Mara, Kota Samarahan from Faculty of Business Management will be used as the target sample. Under the Faculty of Business Management, there are three Specialization (majors) offered, which are Finance, Marketing, and Office System Management. The overall population for Faculty of Business Management is 722 students (Student Affairs, 2014). The sample size of 248 respondents which is taken according to Krejcie and Morgan (1970). Then, the sample size will comprise of 90 respondents from Finance, 94 respondents from Marketing and 64 from the Office System Management. But, only 224 of the questionnaires were able to be collected. Therefore, there are 80 respondents from Finance, 86 respondents from Marketing, and 58 respondents are from Office System Management. The numbers of the respondents from each major is based on stratified sampling, which was the proportioned number to their population number.

[]3.2

[]Data Collection Method and Instrument

[]Primary data were collected through distributing the questionnaires. The data were distributed at random to students studying on faculty mention above. For the questionnaire, it was divided into 4 sections, namely the demographic, section B for financial concept, section C is for financial risk and section D is for financial issues.

[]3.3

[]Data Analysis Techniques

[]Statistical Package for the Social Science (SPSS) version 16.0 will be used to evaluate and measure all the data taken from the primary data. The Cronbach’s Alpha coefficient will be used to measure the internal consistency and reliability of each variable. Then, the independent t-test will be conducted to compare the differences in mean between two groups of cases. ANOVA test will be used which to determine the statistical difference between three or more means according to Joseph et al. (Marketing Research 2009).

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[]4 Findings, Results, and Analysis 4.1

[]Descriptive Analysis

[]Descriptive analysis is to use to describe the data according to its traits. Table 1 shows the Respondent Demographic Information which consists of gender, hometown and specialization (majors) of the respondents. These three demographic factors are used for the Independent Variables. Based on the table above, the total of the respondents is 224 respondents where consist of 76 male respondents with the rate of 33.929 % and 148 female respondents with the rate of 66.071 %. There are 117 of the respondents are from urban areas (52.232 %) and 107 respondents are from rural area (47.768 %). Then, according to the specialization of the respondents which 80 respondents are from Finance with the rate of 35.714 %, followed by Marketing with 86 respondents (38.393 %), and Office System Management with 58 respondents (25.893 %).

[]4.2

[]Reliability Analysis

[]Reliability is used to measure the internal consistency of a set of scale items. The Overall Cronbach’s Alpha for the three items under Financial Awareness is 0.740.

[]4.3

[]Levels of Financial Awareness

[]Overall students’ awareness on finance is 4.9506, which is from the Likert scale of “1” to “5”.

[]Table 1 Respondent demographic information Respondent demographic information

[]Frequency

[]Percentage (%)

[]Gender

[]76 148 117 107 80 86 58

[]33.929 66.071 52.232 47.768 35.714 38.393 25.893

[]Hometown Specialization (majors)

[]Male Female Urban Rural Finance Marketing Office system management

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[]Independent Sample T-Test Analysis

[]Hypothesis 1 There is no difference in the mean between Gender and student’s Financial awareness. There are 76 male and 148 female respondents involved. The mean level financial awareness for male is slightly lower than female at 4.9465 while the female is at 4.9527. Levene’s test for equality of variances has a probability 0.568 which is greater than 0.05, we can assume the population variances are respectively equal. The two tail significant indicates that p = 0.942, p > 0.05, therefore, is no different in mean of financial awareness between gender. Therefore, we accept the null hypothesis. Hypothesis 2 There is no difference in mean between Hometown and student’s financial awareness. There are 117 respondents are from urban area and 107 respondents are from the rural area. The mean level financial awareness for respondents from urban area is slightly lower at 4.9137 compared to the respondents from rural area at 4.9910. The Levene’s test for equality of variances has a probability 0.721 which is greater than 0.05, we can assume the population variances are respectively equal. The two tail significant indicates that p = 0.343, p > 0.05, therefore it is not significant. Hence, there is no difference from the mean of financial awareness between hometowns. Therefore, we accept the null hypothesis.

[]4.5

[]One Way Anova on Majoring Analysis

[]Hypothesis 3 There is no difference in the mean between majoring and student’s financial awareness. The significant level of Financial Awareness is 0.001, which is p < 0.05 and there is significant. Therefore, we can reject the null hypothesis and accept the alternate hypothesis that states There is difference in the mean between Specialization (Majors) and student’s Financial Awareness, F (2, 221) = 7.508, p < 0.05.

[]5 Conclusion As compared to the older generation, the current generation of students studying in the Institutions of higher learning is very fortunate to receive a lot of assistance in particular the financial assistance. Hence, this assistance must be seen more as a responsibility rather than a privilege. With the low tuition fees while studying in UiTM, some students take for granted on assistance that they received. It is very fortunate that the Faculty of Business Management in UiTM does have courses

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[]related to financial planning for their undergraduate. From the results, the level of understanding of financial awareness among student is very high. Although theoretically, they are able to understand on matters related to finance at the University level, the real challenge is when they step out from the Campus. With so many wants to be fulfilled, this will be the challenged for them to manage their finances. It is common to see students on top of the financial aid also receive further financial assistance from their parents. Therefore, self control and self restraint must practice, most of the time. Without both, they might fall into financial trouble even before graduating.

[]References Beal, D. J., & Delpatchitra, S. B. (2003). Financial literacy among Australian University students. Economic Paper, 22, 65–78. Beverly, S. G., & Burkhalter, E. K. (2005). Improving the financial literacy and practices of youth. Children and Schools, 27(2), 121–124. Chen, H., & Volpe, R. P. (1998). An analysis of personal financial literacy among college students. Financial Services Review, 7(2), 107–128. Chen, H., & Volpe, R. P. (2002). Gender differences in personal financial literacy among college students. Academy of Financial Services, 11(3), 289. Danes, S. M., Huddleston-Casas, C., & Boyce, L. (1999). Financial planning curriculum for teens: Impact evaluation. Financial Counseling and Planning, 10(1), 25–37. Economic Planning Unit. (2006). (2010, March 3). Retrieved from Malaysian Ninth Plan (2006– 2010). Prime Minister Department, Putrajaya: http://www.epu.gov.my/html/themes/epu/html/ rm9/english/Chapter16.pdf Greenspan, A. (2005). Importance of financial literacy in the global economy. The Organization for Economic Co-Operation and Development (OECD). Ibrahim, D., Harun, R., & Isa, Z. M. (2009). A study on financial literacy of Malaysian degree students. Cross-Cultural Communication, 5(4), 51–59. Joseph, F., & Hair, R. P, Jr. (2009). Marketing research: In a digital information environment (4th ed.). New York, America: McGraw-Hill/Irwin. Llewellyn, D. (2005). Trust and confidence in financial services: A strategic challenge. Journal of Financial Regulations and Compliance, 13(4), 333–334. Lusardi, A., & Mitchell, O. S. (2011). Financial literacy around the world: An overview. In National Bureau of Economic Research 1050 Massachusetts Avenue Cambridge, MA 02138. Lusardi, A., Mitchell, O. S., & Curto, V. (2010). Financial literacy among the young: Evidence and implications for consumer policy. Journal of Consumer Affairs, 44(2), 358–380. Malkiel, B. G. (2011). A random walk down wall street: The time-tested strategy for successful investing. New York: WW Norton & Company. Mantell, R. (2008). Conceptualizing financial literacy. Research series paper 2000:7. In U. Loughborough (Ed.), Financial literacy. President creates financial literacy advisory council. Marketwatch (Washington), The Wall Street Journal Mason C. and Wilson R., 2000. Marriott, P. (2007). An analysis of first experience students’ financial awareness and attitude to debt in a post-1992 UK University. Higher Education Quarterly, 61(4), 498–519. Ramasamy, D., Savilla, T., Anoop, S. D., & Ramen, M. (2013). A study of the level of awareness of financial literacy among management undergraduates. Remund, D. L. (2010). Financial literacy explicated: The case for a clearer definition in an increasingly complex economy. The Journal of Consumer Affairs, 44, 276–295.

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[]Salikin, N., Ab Wahab, N., Zakaria, N., Masruki, R., & Nordin, S. N. (2012). Students’ saving attitude: Does parents’ background matter? International Journal of Trade, Economics and Finance, 3(6), 479. The Borneo Post. (2011, June 29). Lack of financial awareness may aggravate quality of life upon retirement. Retrieved from The Borneo Post Online: http://www.theborneopost.com/2011/06/ 29/lack-of-financial-awareness-may-aggravate-quality-of-life-upon-retirement—minister/ Tuvesson, J., & Yu, S. (2011). Student saving, does it exist? A study of students’ saving behavior, attitude towards saving and motivation to save. Umeå: Umeå School of Business, Umeå University. Xiao, J. J., Newman, B. M., Prochaska, J. M., Leon, B., Bassett, R. L., & Johnson, J. L. (2004). Applying the transtheoretical model of change to consumer debt behavior. Financial Counseling and Planning, 15(2), 89–100. Xu, L. (2012). Financial literacy around the world an overview of the evidence with practical suggestions for the way forward. In The World Bank Development Research Group Finance and Private Sector Development Team.

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[]Chapter 29

[]Sukuk and Conventional Bond Issuance Wahida Ahmad

[]Abstract Malaysian is having sustainable foreign flows of the capital market from both conventional and Islamic issuance. Being recognized as a market leader in Islamic bonds or better known as sukuk, evidence of its enormous growth since 1970s. Centering on the private debt market, the paper is to find evidence if currency exchange rates, overnight prime rate (OPR), and industrial production index (IPI) growth does influence the issuance of conventional bonds and sukuk. Using balanced monthly aggregate data, the study covers issuance from January 2008 until April 2014. By pooling the data, the Ordinary Least Squares (OLS) estimation reveals currency exchange significantly influence Malaysian private capital market while the study fails to rule out the null hypotheses for the OPR and the IPI growth. The result indicates depreciation of Ringgit will encourage greater conventional and sukuk issuance. The moderating variable evidence difference effects of OPR on sukuk and conventional bonds. Meanwhile, with regards to the model, the Islamic dummy implies there is a negative effect of sukuk issuance compared to conventional bond issuance in Malaysia. Keywords Capital market

[]Sukuk

[]1 Introduction Malaysian capital market plays an important role in business development and country growth. Among others, it provides liquidity to both domestic and international markets. As the Islamic financial market evolves, the existence of the Islamic bond market in Malaysia increasingly supports the capital market. As reported by the Global Islamic Finance Forum (2010), almost half of Malaysian Islamic financial assets contributed by sukuk issuance. Sukuk or similar refer to W. Ahmad (&) Faculty of Business Management, Universiti Teknologi MARA Perlis, 02600 Arau, Perlis, Malaysia e-mail: [email protected] © Springer Science+Business Media Singapore 2016 M.A. Abdullah et al. (eds.), Regional Conference on Science, Technology and Social Sciences (RCSTSS 2014), DOI 10.1007/978-981-10-1458-1_29

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[]Islamic bonds issued alongside the existing of conventional bonds in the market, rapidly become important in Malaysia. The development of sukuk issuance in Malaysia started since 1990 where Malaysia is recognized as the pioneer issuer of sukuk. To date, Malaysia has contributed a significant amount of sukuk issuance worldwide, followed by the Middle East countries. In the dual-capital market, sukuk becomes an alternative to the conventional source of financing, the straight or conventional bonds. Compliance to Shari’ah, the structure and provision of sukuk and conventional bonds differs. Knowing the facts, it is worth to investigate if there are any differences in terms of their issuance. This paper is to identify if the selected economics factors do influence Malaysian capital market, the sukuk, and conventional bond issuance.

[]2 Literature Survey Many empirical studies on the determinants of bond issuance have taken place from various aspects. One prominent area is the influence of economic factors on the capital market issuance. The Malaysian capital market offers both the conventional and Islamic financing, known as sukuk. Sukuk and conventional bonds are similar in several ways, such as in terms of the financing process and probably the returns. El Mosaid and Boutti (2014) identify positive and significant correlation between sukuk and conventional bond portfolio returns. In contrast, these two instruments are different in many other ways, such as the structure and provision. In relation to that, it is desirable to look further into the Malaysian capital market, the effect of economic factors toward the bond issuance. This study focuses on three possible factors that influence the Malaysian capital market; (i) currency exchange rate, (ii) interest rate, and (iii) industrial production index (IPI) growth. It is widely discussed in the literature, exchange rate stability significantly influence capital market, particularly the conventional market. In the earlier literature, Bodart and Reding (1999) find substantial correlation between exchange rate volatility and bond returns. The influencing factor on returns later leads to the determinants of bond financing in the market. Eichengreen and Luengnaruemitchai (2004) document stable exchange rates to encourage the development of the bond market, while Bhattacharyay (2013) finds a negative relationship between bond financing and exchange rate variability. Focusing on the two different types of bond, Ahmad and Mat Radzi (2011) identify significant relationships between currency exchange and bond issuance, regardless of conventional bonds or sukuk. The impact of currency exchange rate on sukuk and conventional issuance is due to the effect on business transaction, particularly those with the involvement with foreign investments. A study of large U.S. firms documents those firms issuing foreign currency debt tend to have significant foreign income, implying the exchange rate plays a vital role in business decision (Kedia and Mozumdar 2003). Other studies on the bond market, discusses the effect of inflation and interest rate on bond returns. In the traditional bond market, interest rate poses important

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[]features of conventional bond financing. Interest rate clearly has a direct impact on conventional bond issuance. The previous study identifies the interest rate as a significant role in the determination of bond spreads in emerging markets (Min et al. 2003). In another study, Antzoulatos (2000) finds hike in interest rate affect the flow of global bond issuance in less developed countries. The results suggest the U.S. Treasury bill rate which has significant impact on some countries such as Venezuela and Korea. The effect is more apparent during debt crisis, where global supply of funds was declining. In more recent studies, Bhattacharyay (2013) discovered negative relationship between interest rate variability and bond financing. High volatility of interest rate gives adverse effect to the bond market as it is associated with greater risk. Demand in the bond market is lessened with interest rate volatility, especially in the long-run as it diminishes the purchasing power of fixed rate long-term bond. On the contrary, sukuk the Shari’ah compliance instrument prohibit the use of interest rate in its bond structure. It is questionable that either interest rate volatility has similar impact on sukuk as it probably has for the conventional bonds. Despite, sukuk is exposed to interest rate risk as they are used as benchmark for sukuk returns. Elteir et al. (2013) study the indirect interest effect on the development of Islamic financial instrument, sukuk risk management. The authors state sukuk holder is affected by a volatility of interest rate while receiving fixed returns as it affect the purchasing power of sukuk investors. Despite its rapid growth, sukuk market, likewise the conventional bonds was severely affected during the global financial crisis 2008. Hence, the development of sukuk relies on nation economic conditions as the development is very much supported by the government allocation plans. Said and Grassa (2013) explore the determinants of sukuk market development and find macroeconomic factors have a positive influence of the growing of sukuk market. The authors find evidence of GDP per capita, economic size and trade openness as influential toward the sukuk market. Ahmad et al. (2009) uses IPI to identify Malaysian bond yield spread determinant. The authors find IPI have significant impact on Malaysian corporate bonds, but not for government bonds. As largely agreed, this paper includes currency exchange as our first explanatory variable in explaining Malaysian bond market. The model considers overnight prime rate (OPR) as a proxy for the interest rate to investigate possible determinants of our variable of interest, particularly in distinguishing sukuk and conventional bond issuance as discussed earlier. In addition, we include IPI growth rate to represent the industrial and economic development in boosting the Malaysian capital market.

[]3 Data and Methodology The study uses aggregate data of bond issuance in Malaysia which comprises both the conventional bonds and sukuk. Focusing on the most recent data which begins from January 2008 to April 2014, the study covers 152 monthly balanced

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[]Table 1 Variables definitions Variables

[]Notation

[]Definition

[]Dependent variable Bond issuance

[]Bond

[]Monthly issuance of straight bonds and sukuk (RM million)

[]RMUS OPR IPI

[]Price of $1USD over MYR (RM/US$) Monthly overnight prime rate (%) Monthly changes of IPI (%)

[]Islamic

[]Classification dummy: Sukuk = 1, conventional = 0

[]Explanatory variables Ringgit exchange rate Interest rate Industrial production index growth Classification

[]observations. The data include the three regressors, Ringgit exchange rate, interest rate, and IPI growth. All data were obtained from monthly statistical bulletin, Bank Negara Malaysia (BNM). The study pools all issuance data while the Islamic and conventional bonds were distinguished using Islamic dummy. Table 1 provides a list with definitions of the interest variable and the explanatory variables used in the model. The mean difference test of two-sample t-test indicates both conventional bonds and sukuk issuance is not statistically different. The study pooled the data by employing the Ordinary Least Squares (OLS) as follows: Bondit ¼ d1 RMUSit þ d2 OPRit þ d3 IPIit þ d4 Islamicit þ it

[]ð1Þ

[]Incorporating the Islamic dummy, the study excludes intercept from the model. While expecting different effect of interest rates on sukuk issuance, the study runs likelihood ratio test of restricted and unrestricted models of moderating variable. The test reveals there are statistically significant difference between the two models and the analysis proceed with the unrestricted model. The OLS estimation with interaction effect presented in Eq. (2): Bondit ¼ b1 RMUSit þ b2 OPRit þ b3 IPIit þ b4 OPRit Islamicit þ b5 Islamicit þ eit ð2Þ The study aims are to investigate whether the issuance of sukuk and conventional bonds in the Malaysian debt market is driven by the three economic factors; the exchange rate, the OPR, and the growth of the Malaysian IPI. In addition, we are interested to find if there is any different effect of interest rate between the two bond issuance. In order to achieve our objectives, we specify the following hypotheses: H1 Currency exchange rate has a significant effect on sukuk and conventional bond issuance in Malaysia. H2 Interest rate has a significant effect on sukuk and conventional bond issuance in Malaysia.

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[]H3 The growth of IPI has a significant effect on sukuk and conventional bond issuance in Malaysia. H4 There are different effect of interest rate on sukuk and conventional bond issuance in Malaysia.

[]4 Empirical Results and Findings Table 2 presents the pooled OLS estimation. The results can be summarized as in Eq. (3): Bondit ¼ 18:71RMUSit 10:22OPRit þ 0:26IPIit þ 27:90OPRit Islamicit 82:47Islamicit

[]ð3Þ

[]The OLS estimation reveals that currency exchange rate is statistically significant at the 1 % level with regard to the issuance of sukuk and conventional bonds in Malaysia. While the p-value is less than 0.00, the study rejects the null hypothesis and the table implies that currency exchange rate positively affects bond issuance in Malaysia. Treating MYR against USD, the study uses direct quotation for the study, implies the higher the rate, MYR depreciates. The positive association of exchange rate indicates the higher the quotation (depreciation of the Ringgit against USD), the higher will be the bond issuance in Malaysia. Note that, the currency exchange is significant determinants of bond issuance as capital market is important for business firms. Currency exchange affects business firms in both domestic (long-term) and international transactions. The study, on the other hand, fails to reject the null hypotheses for both OPR and IPI growth (p-value > 0.10). The result suggests that IPI growth does not affect the issuance of the bond market in Malaysia. As for the OPR, it only shows the Table 2 Ordinary least squares estimation

[]Bond

[]Coefficient

[]RMUS 18.71a OPR −10.22b IPI 0.26 OPR Islamic 27.90a Islamic −82.47a No. of observation 152 R-squared 0.5395 Adjusted R-squared 0.5239 F(5, 147) 34.45 Prob > F 0.0000 Note at-value is significant at 1 % b t-value is significant at least at 12 %

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[]Std. Err.

[]t-value

[]5.58 6.42 0.40 10.12 28.99

[]3.35 −1.59 0.64 2.76 −2.84

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[]significant moderating effect, according to the type of bond, either Islamic or conventional bond issuance. As suspected, the effect of interest rates toward sukuk and conventional bonds might vary as Islamic instruments prohibit direct association with interest charged. The interaction effect of OPR and Islamic dummy point out effect is statistically significant at 1 % level. The inclusion of Islamic dummy in the model is to discern the estimation effect of sukuk and conventional bonds. The finding reveals the effect of explanatory variables is lower on sukuk issuance rather than the conventional issuance. The ttest shows the effect which is statistically significant at the 1 % level.

[]5 Conclusion The study aims to identify and investigate the forces of capital market in Malaysia. Acknowledging the dual-financial market in Malaysia, the study incorporates both the conventional bonds and sukuk to represent the overall market. The hypotheses are to find association effect between selected economic factors toward the issuance of sukuk and conventional bonds. The OLS estimation reveals currency exchange significantly that influences the Malaysian private capital market indicating positive relationship. This implies depreciation of Ringgit which will encourage greater conventional and sukuk issuance. While the study fails to reject the null hypothesis for the IPI growth, interesting result appears for the OPR. The interaction effect discloses significant difference effect of the OPR on sukuk and conventional bonds. Rises in OPR give greater positive impact on sukuk issuance compared to conventional bonds. This is supported by earlier literature, though interest is forbidden for sukuk structure, interest rate act as a benchmark for sukuk returns (Elteir et al. 2013). The Islamic dummy implies there is a negative effect of sukuk issuance compared to conventional bond issuance in Malaysia. Given the other variables constant, conventional bond issuance outperformed sukuk issuance in Malaysian market.

[]References Ahmad, W., & Mat Radzi, R. (2011). Sustainability of sukuk and conventional bond during financial crisis: Malaysia’s capital market. Global Economy and Finance Journal, 4(2), 33–45. Ahmad, N., Muhammad, J., & Masron, T. A. (2009). Factors influencing yield spreads of the Malaysian bonds. Asian Academy of Management Journal, 14(2), 95–114. Antzoulatos, A. A. (2000). On the determinants and resilience of bond flows to LDCs, 1990–1995. Journal of International Money and Finance, 19(3), 399–418. Bhattacharyay, B. N. (2013). Determinants of bond market development in Asia. Journal of Asian Economics, 24, 124–137. Bodart, V., & Reding, P. (1999). Exchange rate regime, volatility and international correlations on bond and stock markets. Journal of International Money and Finance, 18(1), 133–151.

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[]Eichengreen, B. J., & Luengnaruemitchai, P. (2004). Why doesn’t Asia have bigger bond markets?. Cambridge, Mass: National Bureau of Economic Research. El Mosaid, F., & Boutti, R. (2014). Sukuk and bond performance in Malaysia. International Journal of Economics and Finance, 6(2), 226–234. Elteir, M. M., Ragab, A. Y., & Eid, N. H. (2013). Sukuk: Does it minimize risk? American Academic & Scholarly Research Journal, 5(6), 87–94. Global Islamic Finance Forum. (2010). GIFF Report 2010 Islamic Finance and Opportunities: Country and Business Guide. Kedia, S., & Mozumdar, A. (2003). Foreign currency-denominated debt: An empirical examination. The Journal of Business, 76(4), 521–546. Min, H.-G., Lee, D.-H., Nam, C., Park, M.-C., & Nam, S.-H. (2003). Determinants of emerging-market bond spreads: Cross-country evidence. Global Finance Journal, 14(3), 271–286. Said, A., & Grassa, R. (2013). The determinants of sukuk market development: Does macroeconomic factors influence the construction of certain structure of sukuk? Journal of Applied Finance and Banking, 3(5), 251–267.

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[]Chapter 30

[]Graduate Employability: What Went Wrong? Nur Hayati Abd Rahman, Hapiza Omar, Tismazammi Mustafa, Zuraini Jusoh and Noor Rafhati Romaiha

[]Abstract Unemployment exists due to lack of jobs available in the market. With large number of graduating students per year, the competition to get job becomes fiercer. In order to remain competitive, it is essential for the prospective employees to know the reasons why companies reject certain job applications. Surprisingly, the job applications from some students with excellent academic performance can also be rejected. Hence, to further understand this scenario, 124 questionnaires have been distributed to 100 companies in Malaysia who were having experience in training undergraduate students from one of the public universities in Malaysia for five months during their final semester. The managers of the companies were asked to evaluate the performance of the graduating students especially in terms of their skills and qualities by using Likert Scale. All questionnaires were emailed directly via the platform of Google Drive to the managers who were selected based on their role as the immediate supervisors of the trainees. All data received were then analyzed by using SPSS software. The findings show that both graduate qualities and skills play important roles in helping students to get job. However, the students with good qualities are more preferable even if they have lack of skills. Moreover,

[]N.H. Abd Rahman (&) Faculty of Business Management, Universiti Teknologi MARA Melaka, 78000 Alor Gajah, Melaka, Malaysia e-mail: [email protected] H. Omar T. Mustafa Z. Jusoh Faculty of Business Management, Universiti Teknologi MARA Terengganu, 23000 Dungun, Terengganu, Malaysia e-mail: [email protected] T. Mustafa e-mail: [email protected] Z. Jusoh e-mail: [email protected] N.R. Romaiha Faculty of Business Management, Universiti Teknologi MARA Melaka, Kampus Bandaraya, 110 off, 75300 Jalan Hang Tuah, Melaka, Malaysia e-mail: [email protected] © Springer Science+Business Media Singapore 2016 M.A. Abdullah et al. (eds.), Regional Conference on Science, Technology and Social Sciences (RCSTSS 2014), DOI 10.1007/978-981-10-1458-1_30

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[]low motivational level, lack of creativity and leadership values, lack of language proficiency skills, and lack of problem solving were identified as among the major weaknesses of the students since they received scores below than its par. Hence, it is suggested that all university courses need to integrate those elements in the teaching and learning process.

[]Keywords Communication skill Graduate employability Leadership Problem solving Unemployment

[]1 Introduction In The Star dated 27th July 2013, the Education Ministry official, Dr. Mohd Azlan Yahya said that the unemployment rate among graduates was reasonably high. Statistics showed that almost 30–40 % of the graduates were left unemployed after finished their studies (Ji 2013). Some of them are working in the fields that are not related to their studies. Even though there are number of bright students in the academic world, it is insufficient for them if they do not equip themselves with good social and interpersonal skills. Previous statistics showed that there were 15,793 students who scored straight A’s in their Sijil Pelajaran Malaysia (SPM) in 2013 (Kulasagaran 2013). The number is expected to increase in an annual basis. With the existence of 20 public universities in Malaysia which have been recognized by the Ministry of Education, together with hundreds of private higher learning institutions, it is not difficult for the students to pursue higher education even if they did not perform well in their SPM. Besides, with the support of the government through the establishment of Perbadanan Tabung Pendidikan Tinggi Negara (PTPTN), money will not be a major issue. Due to large number of tertiary institutions in Malaysia, almost 180,000 students with diplomas and degrees are graduating every year (Ministry of Higher Education 2012). Out of such numbers, it was found that the unemployment rate among the graduates was highly contributed by those in the fields of social sciences, business, and laws (Department of Statistics 2011). This scenario might be due to the oversupply of the graduates in the market. It is unfair for the fresh graduates because most of the jobs offered in the labor market require candidates who have few years of experience in certain fields. This is because the current working environment needs workers who are well-equipped with skills. As a result, the less educated candidates have better chance in getting jobs as compared to the fresh graduates who are more educated (Nor Hartini 2012). Apart from that, the attitude of the graduates who are demanding on certain issues such as wages and logistics make them less preferable from the eyes of the employers. This issue becomes one of the major headache for the government since it may distort the level of economic development in Malaysia. Hence, this research is conducted to investigate the main weaknesses of the graduates which might lead to a serious problem of unemployment in Malaysia. Two main weaknesses were

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[]chosen based on past literatures; namely skills and qualities. The opinions of the employers on the skills and qualities of the graduating students who were being trained by them were voiced out thoroughly in this paper.

[]2 Literature Review Unemployment can be defined as people who are actively seeking for job but unable to secure any work. According to the Department of Statistics Malaysia, the total labor force in Malaysia as at Mac 2014 was almost reached 14 million with 415,700 people was unemployed. The level of unemployment rate was approximately equivalent to 3 % (The Star 2014). However, when looking from the perspective of graduate employability, a research found that 30–40 % of the graduates were unable to find jobs after finished their studies in the university (Ji 2013) that was recorded in 2014. By comparing with the graduate unemployment rate in 2012 which was only 24 %, it has increased by more than 6 % in two years time. Surprisingly, some of these graduates performed well in their studies. There are various reasons why these graduates were left unemployed. Various researchers have named lack of skills and qualities as the causes of graduate unemployment (Dabalena et al. 2001; Kelly 2014; Klein 2009; Nor Intan Saniah and Burke 2009; Teijeiro et al. 2013). The following paragraphs explain in detail the causes of graduate unemployment in general. One of the reasons why the graduates are unemployed is due to their inability to communicate well in various languages such as Malay, English, or even Mandarin languages. In enhancing the employment opportunities among the graduates, it is essential for them to acquire good communication skills especially in the third language (Nor Intan Saniah and Burke 2009). Those graduates who have the ability to master in multiple languages including Mandarin may have greater opportunities to get employed. Moreover, the graduates who are not well-versed in English communication may have less chance to be hired (Dabalena et al. 2001; Krisha et al. 2012; Lim 2010; Salina et al. 2010). This is due to the process of globalization which requires the potential employees to be able to meet global demands and challenges. For that purpose, those graduates who are able to communicate in various languages across the globe will have the greatest opportunities to be employed in multinational companies. For instance, Facebook as the famous social media is able to penetrate the world market by launching its interface into number of languages such as English, French, Italian, Chinese, Deutsch, Espanol, Francais, Bahasa Melayu, Bahasa Indonesia, and etc. (Kelly 2014). Indirectly, it illustrates how an organization or even a person has the ability to meet the global demand has build its competitive advantage when they mastered in various languages. Apart from communication skill, lack of interpersonal skills is another major weakness of the graduates. By definition, interpersonal skill is also called as a skill needed in order to build relationship with other parties. It consists of seven categories namely cooperation, intercultural sensitivity, service orientation, empathy,

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[]self-presentation, social influence as well as conflict resolution and negotiation (Klein 2009). From the perspective of the graduates, there are two things that need to be considered when they want to go for an interview; namely their academic performance and self-presentation. The graduates with excellent academic performance can be an asset for the company. However, if they did not possess certain qualities and personalities needed by the employers, they might not get employed (Velasco 2011). That is why the first impression is very important. Besides, the ability of the graduates to work in a team might also be evaluated based on their curriculum vitae and past experiences in conducting university events. Moreover, the ability of the graduates to accept and be sensitive to other people’s ideas is also part of the interpersonal skills needed by the industrial players. The graduates who are lack with such skills and qualities will have lesser chance to get employed (Rahmah et al. 2011; Zaliza and Mohd Safarin 2013). Among the effective ways to instill those skills is by making it compulsory for all graduates to undergo internship programs with selected companies at their final semester (Krisha et al. 2012). By doing so, they will be exposed to the reality of the job market which requires them to excel in their academic and possess certain skills and qualities needed. Such internship will help the students to gain experience before they get graduated from the university. A study shows that the graduates with at least one-year working experience can easily get employed in the organization (Menon et al. 2012). Graduate competencies can also be considered as important qualities needed by the employers on their potential candidates especially among the graduates. Basically, the competencies can be divided into three categories namely instrumental, systemic, and interpersonal qualities (Teijeiro et al. 2013). The latter classification has been explained earlier. In relation to the graduate employability, they need to equip themselves with instrumental or so-called as technical competencies. It might be highly relevant to the engineering and other technical graduates (Dabalena et al. 2001). For instance, in order to be an engineer, the engineering graduates are expected to know how to use basic technical equipments. Besides, the knowledge on computer, applications, systems, and Internet can also give significant impact on the employment opportunities. Nevertheless, it is not a fault of the graduates if they did not have such qualities. The issue lies on the holder of the tertiary institutions in which some of the syllabus are too theory oriented (Dabalena et al. 2001). Consequently, the graduates as the final products may not be able to practice the knowledge learned. It leads to wider gap between what the industry requires and what were taught in the tertiary institutions. Other reason why graduates are unemployed is because of their poor qualities in terms of academic performance. It might be due to their personal attributes and problems such as laziness, family problems, and etc. For some reasons, it might also be due to the inexperienced academic staffs in the universities. As mentioned by Dabalena et al. (2001), the performance of the students is highly depending on the qualification and working experience of the lecturers. The lecturers who do not have experience in working with the industry may not be able to integrate the theories in the textbook with the industrial needs. Consequently, it resulted to the birth of robots in the universities rather than graduates who should be able to

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[]critically analyze the real situation and find solution for the betterment of the society. The existence of the experienced and quality lecturers may not be sufficient without the support from the state-of-art facilities in the universities. Imagine how the students want to study if there are limited books and resources available in the library or resource center. The quality of the students may drop due to high dependency on their lecturers in giving notes and lectures (Dabalena et al. 2001). Similar goes to the technical students who are in need of facilities such as laboratories and etc. If the universities are unable to provide adequate funds in order to set up such facilities, it might result to a decline in the students’ performance. Apart from that, the highly qualified academic staffs such as professors may not want to work with such institutions. Other than that, the trend of over-education especially among female graduates is one of the root causes of unemployment. By definition, over-education is a problem in which the educational level for a graduate is higher than the level required by the occupational specifications (Carroll and Tani 2013). For instance, some undergraduate students made decision to pursue a Master’s degree due to the difficulty in getting jobs in their fields. Once they obtained their Master’s degree, there is a tendency for them to find job which is equivalent to their educational level. Due to the fact that most of the jobs are meant for the graduates with Degree’s qualification, it is difficult for those graduates with over-education to get employed. Consequently, they might be working in a position for lower level of education.

[]3 Research Methodology This research was conducted in order to examine the main weaknesses of the Malaysian graduates from the perspective of their skills and qualities toward the performance of their works. For that reason, 124 questionnaires have been distributed to 100 selected companies in Malaysia due to their involvement in training undergraduate final semester’ students who were studying business in one of the public universities in Terengganu, Malaysia. For record, each student was required to undergo practical training with selected companies approved by the faculty for a period of five months. The managers of the companies were asked to evaluate the performance of the graduating students especially in terms of their skills and qualities by using Likert Scale. Skills and graduate qualities were chosen as the main concerns based on the past literatures which claimed that these two values were significantly contributed to the problem of graduate unemployment. All questionnaires were emailed directly via the platform of Google Drive to the managers who were selected based on their roles as the immediate supervisors of the trainees. Basically, the questionnaire consists of four sections; namely section A, B, C, and D. Section A talks about the demographic information of the respondents and companies involved. On the other hand, section B and C consists of the questions that ask about the skills and qualities of the future graduates

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[]respectively toward their daily work routine. In both sections, the respondents were asked to give measure the graduates’ skills and qualities by using a five-point Likert Scale ranging from 1, being “Unsatisfactory” to 5, “Excellent.” In the last section (section D), the respondents were asked to give feedbacks on the strengths and weaknesses of the future graduates by answering the open-ended questions. As specified earlier, two major concerns of this paper are skills and graduate qualities. The idea is to evaluate which kind of skills and qualities that contribute the most to the graduates’ weaknesses. Therefore, five skills and seven types of qualities were chosen based on the major requirements specified by the employers for the selection of the new employees. Among the types of skills chosen were related to management, problem solving, information and communication technology (ICT), language proficiency and human relations. From the perspective of the graduate qualities, seven aspects were selected namely motivational level, creativity, leadership, time management, flexibility, accountability, and willingness to accept feedback from others. All analyses were done by using SPSS software.

[]4 Findings and Discussion In measuring the reliability status for section B and C that uses Likert scale as the medium of answering, the Cronbach’s Alpha reliability test has been conducted for 14 questions in both identified sections. It comprises of five questions from section B (skills) and nine questions from section C (graduate qualities). The results are as follows. By looking at Table 1, it indicates that all questions are internally consistent and reliable within their section. Besides, by comparing the values in Tables 1 and 2, the values of overall CA as specified in Table 1 for both sections are higher than the values of CA if any of the items within the same section is deleted. Hence, all questions are reliable and significant. There is no need to remove any of the item questions since it will result in lower CA. In order to analyze the reasons why certain graduates are still unable to get job, two categories of weaknesses based on the past literatures were used; namely skills and graduate qualities. In testing the difference between these two categories on the graduates during their internship period, the Paired Samples T-test was conducted. Therefore, the null hypothesis for such test is “there is no difference between skills and attitude of the graduates during their internship period.” Table 4 illustrates that the null hypothesis can be rejected since the significance value of the t-statistics is 0.000. In other words, there exist significant difference

[]Table 1 Cronbach’s Alpha

[]Section

[]Cronbach’s Alpha (CA)

[]B C

[]0.842 0.915

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[]Table 2 Cronbach’s Alpha if item is deleted Section

[]Item

[]Cronbach’s Alpha (CA) if item is deleted

[]B

[]B5 B6 B7 B8 B9 C10 C11 C12 C13 C14 C15 C16 C17 C18

[]0.813 0.800 0.790 0.810 0.831 0.901 0.905 0.908 0.903 0.904 0.914 0.904 0.901 0.904

[]C

[]Table 3 Paired samples statistics Pair

[]Mean

[]Standard deviation

[]Standard error mean

[]Skills Graduate qualities

[]21.1129 39.3145

[]2.57635 4.06725

[]0.23136 0.36525

[]Table 4 Paired samples test 95 % confidence interval of the difference Lower Upper Pair: skills and graduate −18.68404 qualities a Significant at 1 % confidence level

[]−17.71918

[]t-statistics

[]Degree of freedom

[]Sig. (2-tailed)

[]−74.682

[]123

[]0.000a

[]between skills and attitudes of the graduates during their internship period. To further understand the degree of difference between these two perspectives, it can be figured out by looking at the mean as shown in Table 3. It seems that graduate qualities has higher mean than the skills. Therefore, we can conclude that the graduates with good qualities are more preferable by the prospective employers even if they have lack of skills. In order to further understand the main reasons that might influence the performance of the graduates at work, the multiple linear regression has been conducted. Given the skills and graduate qualities as the variables that might explain the graduates’ performance, the results of the test are shown in Table 5. At this stage, the performance of the graduates was evaluated based on the scores received by them during their five-month internship period.

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[]316 Table 5 Multiple linear regression’ result

[]N.H. Abd Rahman et al. Variable

[]Coefficients

[]t-statistics

[]Sig. (t-stat)

[]Skills Graduate qualities R-square Adjusted R-square F-Statistics Sig. (F-stat)

[]0.388 0.522 0.73 0.725 168.357 0.000

[]5.391 7.248

[]0.000 0.000

[]By looking at Table 5, both skills and graduate qualities have significant influence in explaining the performance of the graduates during their internship period. However, the most influencing factor is graduate qualities due to higher coefficient as compared to the skills. This is consistent with the result of the paired sample statistics as shown in Table 3. Moreover, overall model is highly significant since the probability of the F-statistics is 0.000. By looking at the R-square, both skills and graduate qualities explained 73 % of the graduates’ performance. This result is going to be more meaningful if it is supported with lists of ranks that specify the qualities and skills possessed by the graduates. The ranks as shown in Tables 6 and 7 were sorted based on the mean score for each item question related to both variables.

[]Table 6 The ranking of graduate qualities

[]Table 7 The ranking of skills

[]Rank

[]Graduate qualities

[]Mean

[]1 Determination to excel 2 Flexibility 3 Willingness to accept feedback 4 Time management 5 Accountability 6 Motivational level 7 Creativity 8 Leadership Average mean a Mean score is above the average mean

[]4.51a 4.46a 4.45a 4.40a 4.36a 4.35 4.24 4.09 4.35

[]Rank

[]Skills

[]Mean

[]1 Human relation 2 ICT 3 Management 4 Language proficiency 5 Problem solving Average mean a Mean score is above the average mean

[]4.31a 4.28a 4.25a 4.21 4.06 4.22

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[]As shown in Table 6, most of the graduates have determination to excel in their career. This is one of the good qualities possessed by them. They were also judged to be flexible due to their ability to perform multitasking jobs during their internship program. Other good qualities that are above the mean score are willingness to accept feedback, time management, and accountability. However, when comparing between the average mean of the graduate qualities with the individual mean, it was found that there were three qualities which were the same or below the average mean; namely motivational level, creativity, and leadership. These three items can be considered as the weaknesses of the graduates in terms of their qualities and values. There are various reasons of low motivational level among graduates. It can be in terms of their salaries, overtime job, workplace, work station, logistic issue, and etc. For instance, a graduate with the same degree level with other graduates may be less motivated to work if he found that his salary is below than his friends who are working in other companies. Besides, similar problem may exist if he is asked to work at different place which is far from his hometown. Such issues which might lead to low motivational level among fresh graduates need to be settled by the organization before it becomes worst. Similarly, it was found that lack of creativity and leadership are among the elements that may lead to the unemployment problem. Even though this research was done to the sample of future graduates who were undergoing their internship program, its results may reflect the overall scenario of the graduates’ weaknesses that might lead to the unemployment problem in Malaysia. From the perspective of the skills possessed by the graduates, Table 7 shows that two skills namely language proficiency and problem-solving skills were below the average. It is obvious that most of the Malaysian graduates are having difficulties in communicating English and other third languages that are currently demanding in the market such as Mandarin. Consistent with previous findings, the companies need workers who are able to communicate well in English and other third languages (Dabalena et al. 2001; Krisha et al. 2012; Lim 2010; Nor Intan Saniah and Burke 2009; Salina et al. 2010). As what have been presented by the Ministry of Higher Education in Pelan Tindakan Pengajian Tinggi Negara, all graduates should possess good communication skills in order to enhance their employment opportunities (Nor Intan Saniah and Burke 2009). Such plan is good but it is going to be better if the ministry make it compulsory for all university students to master in any of the third languages such as Mandarin, French, Arabic, and etc. In the case of Malaysia with multiracial society, it is sad to see most of the Malays as the majority are unable to converse in Mandarin or Chinese. In opposite, most of the Chinese as the minority are able to converse fluently in Mandarin, Chinese, and even Bahasa Malaysia. Furthermore, the way the students learn may also affect their problem-solving skill. Some of them are learning like a robot who love to memorize facts without knowing on how to apply it in the real situation. In order to solve the above problems, The Ministry of Education should evaluate the programs and courses offered in the universities nationwide. This is an essential step in order to ensure all

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[]programs and courses to meet the requirements needed by the industrial players. In order to do so, collaboration with major industrial players in all fields need to be done as part of the programs and courses’ revisited. Moreover, the courses offered in the university shall be in-line with the model of generic skills that are required by the industry (Singh et al. 2014). All courses need to be taught by integrating the following elements in the classrooms; namely communication skill, problem solving, critical thinking, lifelong learning, teamwork, information management, entrepreneurship, ethics, and leadership skill. With regards to the current unemployed person in Malaysia, various training programs should also be conducted (Cheung and Ngai 2010; Menon et al. 2012). Generally, those people who are unemployed might consist of people with different levels of education. For the people with lower level of education, vocational training programs can be conducted by the government in order to help them polishing their skills. However, for unemployed person with higher level of education, the private sector can plays their roles by conducting the Corporate Social Responsibility (CSR) programs. The management trainees’ positions can be opened for the unemployed person. They will be trained for certain period of time in various divisions in a company. People with lots of experience can have better chance in getting better jobs in the industry. Such experience and exposure helps them to learn many things and improve their performance as well as quality of works.

[]5 Conclusion and Recommendation Certain skills and graduate qualities have been identified as among the main weaknesses of the graduates which may result to the problem of unemployment; namely low motivational level, lack of creativity and leadership values, lack of communication skills, and lack of problem solving. These weaknesses were identified by the employers who were supervising the works of their staffs. Those staffs consist of future graduates who were undergoing their practical training in selected companies. As discussed earlier, various steps can be done by various parties to solve these weaknesses. If it is not being corrected at the tertiary institutions’ level, it may result of a serious problem of unemployment in the future. Apart from that, all universities in Malaysia should embed entrepreneurship courses in all programs offered. The reason is to ensure that all students are knowledgeable and capable in opening up new business or joining existing business once they graduate from the universities. Definitely, such action can reduce the problem of unemployment in Malaysia since some of the graduates may no longer depend on the public and private sector for the employment opportunities. Besides that, the universities should collaborate with the industrial players in order to create platform for the lecturers to gain working experience for certain period of time. Such joint venture will definitely gives win–win situation for both parties. The academic staffs in the universities consist of the experienced and

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[]trained lecturers in their fields. In the meantime, while the lecturers are conducting their professional internship with selected companies, those companies can use the lecturers’ expertise in gaining competitive advantage in certain fields. Consequently, the lecturers who have vast experience in the real working environment will be able to deliver the lectures effectively by giving real examples. Moreover, those lecturers who know the industrial needs may be able to revisit the syllabus based on the requirements needed by the industries.

[]References Carroll, D., & Tani, M. (2013). Over-education of recent higher education graduates: New Australian panel evidence. Economics of Education Review, 32, 207–218. Cheung, C.-K., & Ngai, N.-P. (2010). Training to raise unemployed youth’s work commitment in Tianjin. Children and Youth Services Review, 32, 298–305. Dabalena, A., Onib, B., & Adekolac, O. A. (2001). Labor market prospects for university graduates in Nigeria. Higher Education Policy, 14, 141–159. Department of Statistics. (2011). Statistics of graduates in the labour force Malaysia 2011. Retrieved from http://www.statistics.gov.my/portal/download_Labour/files/BPTMS/ PERANGKAAN_%20SISWAZAH_2011.pdf Ji, Y. (2013, July 27). Close to half of Malaysian graduates either jobless or employed in mismatched fields. The Star. Kelly, N. (2014). As the internet becomes more global, language matters more than ever. Huff Post. Retrieved from http://www.huffingtonpost.com/nataly-kelly/as-the-internet-becomes-m_ b_5478604.html Klein, C. R. (2009). What do we know about interpersonal skills? A meta-analytic examination of antecedents, outcomes and the efficacy of training. Florida: University of Central Florida. Krisha, P., Tamby Subahan, M. M., Kamisah, O., & Zanaton, I. (2012). Are UKM graduates ready to face challenges on the job market? Procedia—Social and Behavioural Sciences, 59, 584– 590. Kulasagaran, P. (2013). More SPM students score straight A’s. The Star. Lim, H.-E. (2010). Predicting low employability graduates: The case of Universiti Utara Malaysia. The Singapore Economic Review, 55(3), 523–535. Menon, M. E., Pashaourtidou, N., Polycarpou, A., & Pashardes, P. (2012). Students’ expectations about earnings and employment and the experience of recent university graduates: Evidence from Cyprus. International Journal of Educational Development, 32, 805–813. Ministry of Higher Education. (2012). The national graduate employability blueprint 2012–2017. Retrieved from http://jpt.mohe.gov.my/PENGUMUMAN/GE%20blueprint%202012-2017.pdf Nor Hartini, S. (2012). Unemployed graduates: How can we address this situation? Retrieved July 16, 2014, from http://www.ikim.gov.my/index.php/en/artikel/7650-unemployed-graduateshow-can-we-address-this-situation Nor Intan Saniah, S., & Burke, M. (2009). A case analysis of knowledge sharing implementation and job searching in Malaysia. International Journal of Information Management, 29, 321– 325. Rahmah, I., Ihak, Y., & Seing, L. W. (2011). Employers’ perception on graduate in Malaysian services sector. International Business Management, 5(3), 184–193. Salina, D., Nurazariah, A., Noraina, M. S., & Rajadurai, J. (2010). Enhancing university business curriculum using an importance-performance approach: A case study of the business management faculty in Malaysia. International Journal of Educational Management, 25(6), 545–569.

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[]Singh, P., Thambusamy, R. X., & Mohd Adlan, R. (2014). Fit or unfit? Perspectives of employers and university instructors of graduates’ generic skills. Procedia—Social and Behavioural Sciences, 123(20), 315–324. Teijeiro, M., Rungo, P., & Freirea, M. J. (2013). Graduate competencies and employability: The impact of matching firms’ needs and personal attainments. Economics of Education Review, 34, 286–295. The Star. (2014, May 27). Malaysia’s unemployment rate down to 3pc in March. The Star. Velasco, M. S. (2011). More than just good grades: Candidates’ perceptions about the skills and attributes employers seek in new graduates. Journal of Business Economics and Management, 13(3), 499–517. Zaliza, H., & Mohd Safarin, N. (2013). Unemployment among Malaysia graduates: Graduates’ attributes, lecturers’ competency and quality of education. Amsterdam: Elsevier.

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[]Chapter 31

[]The Implementation of Organizational Green Culture in Higher Educational Institution Mas’udah Asmui, Noorsuraya Mohd Mokhtar, Noor Dalila Musa and Adibah Hussin Abstract Organizational green culture and organizational commitment are very important concepts that most organizations must understand in order to remain competitive and productive. Thus, it is crucial for any organization to know how to measure these constructs from the employees’ perspective in order to better understand employees’ needs, and hence, satisfy them. The main purpose of this study theoretically was to investigate the relationship between organizational green culture and organizational commitment, and empirically, to identify the existence of green organizational culture in the context of higher educational institution in Pahang. A total of 248 questionnaires were distributed to employees who worked at the higher education institution in Jengka, Pahang. Besides, a review of the literature on organizational green culture and organizational commitment specifically focused on the components that were carried out. The data were analyzed via descriptive statistics and correlational statistics with SPSS version 20.0. The selection of the respondents was based on systematic random sampling technique and the self-delivered questionnaires were distributed to the sample of academician and non-academician. The findings revealed that most of the respondents, who were non-academician male and have worked less than 10 years, thought that organizational green culture had a strong significant relationship with organizational

[]M. Asmui (&) N.M. Mokhtar N.D. Musa A. Hussin Faculty of Business Management, Universiti Teknologi MARA Pahang, 26400 Bandar Pusat Jengka, Pahang, Malaysia e-mail: [email protected] N.M. Mokhtar e-mail: [email protected] N.D. Musa e-mail: [email protected] A. Hussin e-mail: [email protected] © Springer Science+Business Media Singapore 2016 M.A. Abdullah et al. (eds.), Regional Conference on Science, Technology and Social Sciences (RCSTSS 2014), DOI 10.1007/978-981-10-1458-1_31

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[]commitment; and the level of organization green culture in the organization was high. The researchers believe that the study is important for the success of the organization, as the variables were strongly interrelated and the employees were aware and supported the organizational green culture. Keywords Organizational commitment

[]Organizational green culture

[]1 Introduction Green organizational culture in the government higher education institutions is not new in Pahang, Malaysia. The organizations within the Malaysian government nowadays have moved toward the implementation of green culture, such as practicing 5S, MUDA, and LEAN. Besides practicing green activities, recycling program is also conducted annually. This is to encourage employees to take part and to show their support. According to Olson (2008), creating green culture often involves reinforcing behavior that people already want to adopt, but there is still a need for the appropriate tools and training in order to change. The appropriate tools and training for employees, such as 3R, are able to increase their awareness and acceptance of green organizational culture. Furthermore, in order to measure the employees’ acceptance toward green culture, it is very important to investigate their commitment. This is the objective of this study. First, it is to investigate the relationship between organizational green culture and organizational commitment, and second, to identify the existence of organizational green culture among employees in higher educational institution in Jengka, Pahang. The research questions of this study were: (1) Is there a significant relationship between organizational green culture and organizational commitment among employees in UiTM Pahang? (2) What is the level of organizational green culture among employees in UiTM Pahang? The findings had been significant for the management to understand the employees’ commitment toward green organizational culture and the level of green organizational culture in the institution. Thus, it is hoped that the management would notice its employees’ attitudes toward green culture, either positive or negative. Besides, this study was carried out to shed light to the management and employees on the importance of their roles in increasing awareness among them in green organizational culture. The limitations of conducting this study were that it was conducted in a public higher education institution in Jengka, Pahang, Universiti Teknologi MARA (UiTM), and the administrative and academician employees were the respondents. A number of 248 respondents were selected and questionnaires were distributed to

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[]them, yet only 110 (44 %—return rate) were returned due to several obstacles, such as the respondents did not work at the headquarters office, and hence, failed to return the research tool. Moreover, this study only focused on the field of green organizational culture and organizational commitment among academicians and administrative employees in the public higher education institution in Jengka, Pahang.

[]2 Literature Review The issue of Green Organization culture or the implementation of this green culture has taken place in many organizations today. At present, people are concerned about the environment and try not to abuse the natural resources. From the literature, it has been found that a lot of studies have been carried out on this subject. Hence, the researchers reviewed the past and current literature to uncover previous researches that can be applied in the context of this paper. However, since this subject area is rather new, the literature is narrowed to the relationship between green organizational culture and organizational commitment. Meyer and Allen (1997) described commitment as the feelings of emotional attachment that employees have to the organization that cover goals and values, which are based on the results in willingness to utilize optimal effort to achieve the goals of organization. In relation to the theory, Meyer and Allen (1991) constructed three-dimensional model consisting of affective, normative, and continuance commitment. Affective commitment is the emotional affection to an organization; a strong belief in and the reception of the organizations goals and values, which results in willingness to exercise the most favorable effort to attain the organizations goals. Normative commitment is an employee’s feeling of compulsion to perform a task for the organization that they are working on. This argument is supported by Jaros (1997), who strongly believed that an employee with a normative commitment sense tends to have high moral responsibility to continue to work for a particular organization. The last component, which is continuance commitment, is categorized as the longing to continue membership in an organization for fright of forfeiting valued rewards. In addition, Chan (2006) found that organizational commitment has a relation with identification. For example, a person’s commitment toward the organization is an effective attitude that results from an evaluation of the work condition, which links or attaches the individual to the organization. It gives a clear understanding that when a person has a positive attitude toward his or her organization, he or she is most likely to be attached to the organization. The researcher believes that organizational commitment is influenced by two factors, namely individual and organizational characteristics. Benefits, status, monetary, and interpersonal rewards are the factors that contribute to the level of employees’ commitment toward the organization.

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[]On the other hand, Labatmediene et al. (2007) characterized that organizational commitment is built when employees in an organization believe and accept the goals and values in their organization. In other words, it refers to the willingness that an employee has to exert considerable effort on behalf of the organization, and a strong desire to remain in the organization. The researchers have concluded that the committed employees are more likely to stay with the organization even if they do not like their own job. Managers should always realize the value of the employees and need to retain them longer. Nevertheless, Meyer and Allen (1997) claim that most researchers find difficulties to determine how commitment is affected by the changes, such as increased level of global competition, reengineering, and downsizing that occur a lot in today’s world of work. Here, the role of green organizational culture is important to be understood about organizational behavior. It is supported by Wagner (1995), who stated that green organizational culture has a strong influence on employees’ behavior and attitudes. Furthermore, Martins and Martins (2003) define organizational culture as the standards and norms that prescribe how employees should behave within an organization. Therefore, the researcher believes that green organizational culture can be described as the attachment that employees have toward the practice of environmentally responsible values, norms, and behaviors in the place where they are working at. Thus, it can be said that both managers and employees are continuously governed, directed, and tempered by the practice of organization culture. On top of that, according to Hartman et al. (2009), green organizational culture has a tendency to influence employees’ perceptions toward green movement in an organization and their personal lives directly. For example, an organization will become greener, as employees move forward to become more empowered and centered, and customer center culture is established. The study was conducted on approximately 323 managers from a variety of industries in the South. These managers were experienced in their area and had worked for more than 20 years. In conclusion, the researchers found that the employees who believed their organization applied green culture performed in their overall organization performance. Looking at past literatures, various authors have discussed the relationship between organizational culture and organizational commitments. They found that the organizational culture has influenced work commitment, and a link exists between organizational culture and organizational commitment. People who work in an environment with strong culture are committed toward their job and organization (Nystrom 1993). However, the relationship between green organizational culture and organizational commitment is still unknown. Thus, the researchers believed that if the employees in an organization are committed toward green organizational culture, their commitment toward their job and organization should be high, since the green culture gives positive impact to the employees and to the organization itself. Besides, Meyer and Allen (1991) have identified organizational culture as the extent of organizational commitment. This suggests the need for a research study that determines the relationship between green organizational culture and organizational commitment.

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[]3 Method The population of the study consisted of 696 academicians and non-academicians (administrative employees). The sampling frame applied was drawn from the Administrative Office of UiTM Pahang (2014). According to Krejcie and Morgan (1970), a population of 696 indicated that the sample size should be at least 248 respondents. Systematic random sampling technique was chosen in analyzing the data. A survey questionnaire was used and distributed by hand to each of the selected respondent involved in this study. The survey questionnaire consisted of three (3) sections, which were: section A focused on organizational green culture; section B was to classify the organizational commitment based on employees’ perspective; and section C classified the demographic variables, such as gender, years of service, and category of designation. For the purpose of this survey, the 5-point Likert scale was used and the scaling was as in the following: (1) Strongly Disagree, (2) Disagree, (3) Neutral, (4) Agree, and (5) Strongly Agree. The items of the questionnaire were adapted from the National Environment Agency (2014) for organizational green office, and Kanning and Hill (2013) for organizational commitment. The items of the variables are presented in Table 1. As shown in Table 2, the significance level of organizational green office is greater than 0.05, and then normality is assumed. However, the significance level of organizational commitment is lower than 0.05, and then normality is not assumed. According to Osborne (2002), the two reasons for non-normality are the presence of outliers (scores that are extreme relative to the rest of the sample), and the nature of the variable itself. The results of reliability test of this study is shown in the Table 3.

[]4 Results and Discussion A large number of respondents were male with 63 of them (57.3 %), while females were 47 (42.7 %). 62 (56.4 %) of the respondents served for UiTM for less than 10 years, 23 (20.9 %) of them worked for 11–15 years, while 16 (14.5 %) of them worked for more than 21 years, and only 9 (8.2 %) of them had been with UiTM for 16–20 years. Most of the respondents were non-academician or administrative employees (67, 60.9 %), while 43 (39.1 %) were academicians (Table 4). It was found that there is a strong significant relationship between organizational green culture and organizational commitment among employees in UiTM Pahang (r = 0.597, p < 0.05) as stated in Table 5. Therefore, organizational green culture is associated with high organizational commitment. The level of organizational green culture among the employees in UiTM Pahang had been high (m = 3.5982, SD = 0.45226), as stated in Table 6. Meanwhile, Table 7 shows the highest mean was for “I proofread documents on computer

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[]Table 1 Table of items of questionnaire Variables

[]Items of questionnaire

[]Organizational green office

[]In office: I use both sides of the paper while printing I proofread documents on computer screen before printing I am using stationery and notebooks from recycled materials I am using the other side of used paper for drafting, printing, and taking notes I am using recycled files from the recycling activities carried out All letters are sent by post I am using used envelopes for sending internal mail I remove old documents and reuse the files for filing again I use electronic mail to communicate or to send messages Notice of reminder to conserve water and electricity is placed in my office The use of items that can pollute the air (such as air fresheners) is minimized I buy long-lasting and useful items as corporate gifts In conducting meeting: I prefer face to face meeting Call for meeting and minutes of meeting are usually sent via email I prefer online meeting (via email, WhatsApp, etc.) Minutes of meeting are photocopied for all meeting participants Meeting participants use scrap paper to take notes and related matters Food and beverage for meeting is always more than enough Involvement in green activities: I am willing to participate in recycling programs I segregate recyclable items for recycling Affective commitment: I am willing to put my effort beyond expected in order to help this company achieve green culture I am willing to inform my friends about the advantages of green culture in this company I feel very little loyalty to the green culture in this organization I would accept any type of task in order to keep green culture functioning in this company I find my values and the company’s values on green culture are similar Normative commitment: I am proud to tell the others that I am involved in green culture of this company I am willing to join another organization if the practice of green culture is much better than in this organization The organization’s green culture really inspires me and my job performance I am extremely glad that I choose this company over other options Continuance commitment: There are not many benefits to be gained if I continue to serve this organization I always find it difficult to agree with this organization’s policies relating to green culture I really care about the practice of green culture in this organization This is the best organization for me Deciding to work for this organization was a mistake

[]Organizational commitment

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[]Table 2 The results of the normality test Kolmogorov-Smirnova Statistic df Sig. Organizational green office 0.072 110 Organizational commitment 0.089 110 a Lilliefors significance correction b This is a lower bound of the true significance

[]0.200b 0.033

[]Shapiro-Wilk Statistic df

[]Sig.

[]0.983 0.927

[]0.191 0.000

[]110 110

[]Table 3 The results of the reliability test on the research instrument Items

[]Pilot test

[]Actual test

[]Part A—Organizational green culture Part B—Organizational commitment

[]0.743 0.720

[]0.743 0.798

[]Table 4 The demographic information of the respondents Demographic information Gender Male Female Years of service 1–5 years 6–10 years 11–15 years 16–20 years More than 21 years Designation’s category Academician Non-academician n sample size, % percent

[]n

[]Frequency

[]%

[]63 47

[]57.3 42.7

[]31 31 23 9 16

[]28.2 28.2 20.9 8.2 14.5

[]43 67

[]39.1 60.9

[]110

[]110

[]110

[]Table 5 The relationship between organizational green office and organizational commitment Organizational green culture Organizational commitment

[]Pearson correlation Sig. (2-tailed) N a Correlation is significant at the 0.01 level (2-tailed)

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[]0.597a 0.000 110

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[]Table 6 Level of organizational green culture among employees in UiTM Pahang n Organizational green culture 110 n sample size, m mean, SD standard deviation

[]m

[]SD

[]3.5982

[]0.45226

[]Table 7 Descriptive statistics for organizational green culture among employees In office I use both sides of the paper while printing I proofread documents on computer screen before printing I am using stationery and notebooks from recycled materials I am using the other side of used paper for drafting, printing, and taking notes I am using recycled files from the recycling activities carried out All letters are sent by post I am using used envelopes for sending internal mail I remove old documents and reuse the files for filing again I use electronic mail to communicate or send messages Notice of reminder to conserve water and electricity is placed in my office The use of items that can pollute the air (such as air fresheners) is minimized I buy long-lasting and useful items as corporate gifts In conducting meeting I prefer face to face meeting Call for meeting and minutes of meeting are usually sent via email I prefer online meeting (via email, WhatsApp, etc.) Minutes of meeting are photocopied for all meeting participants Meeting participant uses scrap paper to take notes and related matters Food and beverage for meeting is always more than enough Involvement in green activities I am willing to participate in recycling programs I segregate recyclable items for recycling m mean, SD standard deviation

[]m

[]SD

[]3.8909 4.2818 3.5455 3.8182 3.3818 3.3727 3.5636 3.4727 3.8545 3.3455 3.1636 3.6091

[]1.02577 0.80288 0.97337 1.04207 1.01350 0.98483 1.00938 1.23191 1.29810 1.22988 1.28168 0.83606

[]4.0727 4.1818 3.1091 3.3636 3.3455 3.1909

[]0.83181 0.92053 1.08658 1.19423 0.89275 1.09624

[]3.5909 3.8091

[]0.76979 0.76020

[]screen before printing” (m = 4.2818, SD = 0.80288) and the lowest mean was for “I prefer online meeting (via e-mail, WhatsApp, etc.)” (m = 3.1091, SD = 1.08658).

[]5 Conclusion A majority of the respondents were male and had been working for UiTM for less than 10 years. Moreover, they were non-academicians (administrative employees). Compared to female, the male respondents were more committed and emphasized

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[]the implementation of green culture in UiTM. Even though they were new employees because they had worked less than 10 years, they were aware and supported the green culture. The association between organizational green culture and organizational commitment was strongly interrelated. The implementation of green culture in UiTM has played an important role in increasing the employees’ commitment in terms of affective, normative, and continuance. The employees felt belongingness, loyal, and were proud of the implementation of green culture in UiTM, and they were also willing to continue the culture. The level of organizational green office in UiTM was high. This can be proven as the employees were entrusted to practice green culture in their office, like proofreading documents on computer screen before printing. It is to ensure to reduce the use of paper and ink for printing, and to avoid repeating printing work, as well as reduce time for printing. In conducting meeting, they preferred less online meeting via email, WhatsApp, and so forth. They preferred face to face meeting due to its effectiveness and efficiency. However, they accepted online technology to call for meeting and to distribute minutes of meeting. A study conducted by Akel and Associates in (2006) found that 66 % of universities and colleges are placing a greater emphasis on green approaches, 33 % now have or will likely have offices of sustainability, and 90 % take sustainability into account when choosing new products and equipment (Cole and Fieselman 2013). This scenario has also begun to take shape in UiTM. The implementation of green culture in UiTM has been embedded in the office, in conducting meetings, and with the involvement of employees in green activities.

[]6 Recommendations It is recommended for future research that this study is conducted in other public and private higher education institutions in Malaysia to measure the differences in awareness between academician and non-academician toward organizational green office. Besides, the level of organizational commitment should be analyzed as well.

[]References Akel Associates. (2006). Institutions of higher education: A study of facilities and environmental considerations. Chester, New Jersey: Akel and Associates. Chan, S. H. (2006). Organizational identification and commitment of members of a human development organization. Journal of Management Development, 25(3), 249–268. Cole, E. J., & Fieselman, L. (2013). A community-based social marketing campaign at Pacific University Oregon: Recycling, paper reduction, and environmentally preferable purchasing. International Journal of Sustainability in Higher Education, 14(2), 176–195.

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[]Hartman, S. J., Fok, L. Y., & Zee, S. M. (2009). Linkages among employee perceptions of organizational commitment to the green movement and organizational culture, and their perceived impacts upon outcomes. Journal of Organizational Culture, Communications and Conflict, 13(2), 27–44. Jaros, S. J. (1997). An assessment of Meyer and Allen’s (1991) three component model of organizational commitment and turnover intentions. Journal of Vocational Behavior, 51, 319– 337. Kanning, U. P., & Hill, A. (2013). Validation of the organizational commitment questionnaire (OCQ) in six languages. Journal of Business and Media Psychology, 1–12. Retrieved April 24, 2014 from http://journal-bmp.de/2013/12/validation-of-the-organizational-commitmentquestionnaire-in-six-languanges Krejcie, R. V., & Morgan, D. W. (1970). Determining sample size for research activities. Educational and Psychological Measurement. Labatmediene, L., Endriulaitiene, A., & Gustainiene, L. (2007). Individual correlates of organizational commitment and intention to leave the organization. Baltic Journal of Management, 2, 196–212. Martins, N., & Martins, E. C. (2003). Organisational culture. In S. P. Robbins, A. Odendaal, & G. Roodt (Eds.), Organisational behaviour. Global and Southern African perspectives (pp. 379– 400). Cape Town: Pearson Education. Meyer, J. P., & Allen, N. J. (1991). A three-component conceptualization of organizational commitment. Human Resources Management Review, 1, 61–89. Meyer, J. P., & Allen, N. J. (1997). Commitment in the workplace: Theory, research and application. Thousand Oaks, CA: Sage. National Environment Agency, Government of Singapore. (2013). Tips on 3Rs-Reduce-Reuse-Recyle. Retrieved June, 17, 2014, from http://app2.nea.gov.sg/energywaste/recyling/tips-on-3rs-reduce-reuse-recyle Nystrom, P. C. (1993). Organisational cultures, strategies and commitments in the health care organization. Healthcare Management Review, 18(1), 43–49. Olson, G. E. (2008). Creating an enterprise-level “green” strategy. Journal of Business Strategy, 29(2), 22–30. Osborne, J. (2002). Notes on the use of data transformations. Practical Assessment, Research & Evaluation, 8(6). Retrieved May 29, 2014, from http://PAREonline.net/getvn.asp?v=8&n=6 Wagner, J. A. (1995). Studies of individualism-collectivism: Effects on cooperation groups. Academy of Management Journal, 38, 152–172.

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[]Part IV

[]Communication

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[]Chapter 32

[]Islam in Malaysian News: The Case of Utusan Malaysia and Sinar Harian Liana Mat Nayan, Siti Suriani Othman, Lee Kuok Tiung and Khairunnezam Mohd Noor

[]Abstract Islam is always assumed as an integral part of news construction in countries like Malaysia. However, as a multicultural country, Malaysia offers more complex elements to be considered in its news making. Thus, this study seeks to examine whether Islam is really connected with news construction in Malaysia, and if not, what actually does constitute as news in Malaysia and the factors that affect such decisions. In examining this, the study samples two newspapers: Utusan Malaysia (UM) and Sinar Harian (SH). Both newspapers are generally considered to construct news distinctly. The study found that Islam is not the main set of values considered in either newspaper in their construction of news. An aspect which is considered more important is multiculturalism in the country. Based on the findings, the news is constructed as such in order to ensure the harmony of the country. Keywords Islam

[]News construction Utusan Malaysia Sinar Harian

[]L.M. Nayan (&) Faculty of Art and Social Sciences, Universiti Tunku Abdul Rahman, Kampar, Perak, Malaysia e-mail: [email protected] S.S. Othman K.M. Noor Faculty of Leadership and Management, Universiti Sains Islam Malaysia, Nilai, Negeri Sembilan, Malaysia e-mail: [email protected] K.M. Noor e-mail: [email protected] L.K. Tiung School of Social Sciences, Universiti Malaysia Sabah, Kota Kinabalu, Sabah, Malaysia e-mail: [email protected] © Springer Science+Business Media Singapore 2016 M.A. Abdullah et al. (eds.), Regional Conference on Science, Technology and Social Sciences (RCSTSS 2014), DOI 10.1007/978-981-10-1458-1_32

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[]1 Introduction News is produced through a series of interactions between news organizations and their sociocultural environments (Tiffen et al. 2013). The more newsworthy an event is considered to be by journalists, the more likely it will be selected for publication, and the more likely it will be prominently presented (Eilders 2006). In a developing nation such as Malaysia, the functions of the media such as newspaper have been reoriented and adjusted to local needs. The media roles are closely and tightly connected to government objectives. The newspapers and other media are expected to help the government foster the spirit of understanding and strengthen friendship and unity among people (Ibrahim et al. 2011). Malaysia is a multiracial country with a population that currently stands at 28 million, of which approximately 60 % are Muslims. In the context of Malaysia, it is argued that as Islam is the religion of the federation and Malays are, by constitutional definition, required to be of the Muslim faith (Faruqi 2011). As Islam is constitutionally the country’s official religion, therefore, it is undeniable that Islam is always seen as an integral part of news construction in Malaysia. Although there are many studies that examine how the Muslim world is represented in the Western press, there is a dearth of research that explores how Muslim societies represent themselves to the rest of the world (Elliott and Greer 2010). However, as a multicultural country, Malaysia offers more complex elements to be considered in its news making. Thus, this study seeks to examine whether Islam is really connected with news construction in Malaysia, and if not, what actually does constitute as news in Malaysia and the factors that affect such decisions. The news with ‘Islamic values’ in this current study is referring to news portraying Islam through their Islamic individuals, groups, organizations, and events.

[]1.1

[]Reporting Religion in News

[]The press plays a pervasive role today as a source of information. It has the potential to create fears and cause anxieties, and at the same time, it also can eliminate wrong impressions and stereotypes and to reduce social tensions within a society (Ibrahim et al. 2011). Therefore, if Western news production displays negative portrayal of Islam, on the other hand, media in the Islamic countries should have made the positive impressions about Islam as their daily phenomenon in news. However, when it comes to professional ethics, reporting about religious issues are extremely sensitive because in-depth research and more attention are really needed (Nistor and Beuran 2014).

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[]Literature showed that the Islamic press should be concerned in using a negative approach to the news, and this is obvious as it is mentioned in the Qur’an that an individual needs to apply the golden rule when speaking about another individual because the main principle for communication is to be positive to maintain peace and harmony (Elliot and Greer 2010).

[]2 Methodology With the aim to explore local journalist practices in reporting about Islam, this current study interviewed four journalists from Utusan Malaysia (UM) and six journalists from Sinar Harian (SH). In-depth interviews have been conducted from October 2013 till December 2013. Journalist A is referring to journalists from UM, while Journalist B is referring to journalists from SH. Each newspaper is categorized as printed mainstream newspaper and tabloid newspaper, respectively. SH is tabloid in size, however, it does not bear tabloid news. It is a newspaper that emphasize on politics and regional news. Both newspapers are among the most popular printed newspaper in Malaysia. The circulation of UM for instance, based on Audit Bureau Circulation (ABC) record ended in June 2014 is 163,101. For SH, although it is not listed in ABC yet, information from the Circulation Department says that it reaches 190,000 in 2014.

[]3 Findings Findings from these interviews concluded that Islam is not the main set of values considered in either newspaper in their construction of news. Even though one of the newspapers in this study claimed that their newspaper is really concerned about Islamic values, however, a brief content analysis for a few months showed that news regarding Islamic organizations, groups, events, etc., is rare. For example, not more than 15 news (related on Islam) have been reported by both UM and SH in October 2013. In this case, there is high possibility that the newspaper assumed that reporting news such as social issues or environmental problems can be considered as containing Islamic values. However, the newspapers should realize that acquiring and reporting more adequate knowledge of Islam would be the better way to improve the image of Islam in the eyes of non-Muslims in Malaysia. For example, the issue of relationship between male and female has been looking in complex ways by Muslim and non-Muslims in Malaysia. The ways in which media represents men and women, and the relationship between men and women in Islam varies depending on what is in trend and what events are having or have taken place.

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[]It can be concluded that for both UM and SH, an aspect which is considered more important is multiculturalism in the country. Based on the findings, the news is constructed as such in order to ensure the harmony of the country. For example, when the journalists were asked about considering religious elements in their news making, most of them agreed that they considered it but not as their main concern. Journalist A 1: …but we concern more about the sensitivity. You know in Malaysia, we have multiracial society…we are sensitive about that. Journalist B 1: …all news in our newspaper is not just for Malay, even though majority of Malay are Muslims, but any kind of issue that will have influence on Chinese or Indian will be on our news. (Note: Most Chinese and Indians in Malaysia are not Muslim)

[]Meanwhile, most of the journalists also concluded that even though they were not focusing too much on Islamic events, groups, etc., however, they do believe that they still considered Islamic values in their reporting. Journalist A 3: We follow the religion value, because our problem lies in the multiracial society…we need to be balanced, we take the middle stand, we are not too strict. Journalist B 4: …write fair report, do not give your opinion in your writing, just like in Islam.

[]Interestingly, most of the journalists also stressing about getting the right source in reporting news. They said this is also one of the important elements that is being focused by Islam. Finally, the interviews analyses also have generated a few factors that influence the decision in news coverage of religion issues.

[]3.1

[]Perception About Reporting Entertainment in Islam

[]Journalist A 1: Emmm…the thing is entertainment is such a big industry that is why we cannot strictly follow the Islamic perspective…

[]The answer provided by one of the journalist is generally associated with the fact that some sees entertainment as unbeneficial and only leads human to forgetting Allah. However, to the proponents among Muslims, entertainment is halal since there is no passage in the Quran saying that Muslims must avoid entertainment to lead a blessed life. Entertainment is seen as a natural need of human being for relief and relaxes purpose, as long as they do not involve in any negative or immoral activities (Othman et al. 2013). Islam teaches more than matters of faith, ritual, and dogma. Islam provides rules for a philosophy of life, an economic principle, a social order, a rule of government, and more importantly, a moral principle to guide human beings to achieve peace, prosperity, equality, and brotherhood in this world and in the hereafter (Ghani 2004).

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[]Here, it may be some of the journalists in this study have lack of knowledge about entertainment in Islam, therefore, they decided that reporting about entertainment is something against the Islamic values, or at least difficult to follow Islamic principles in reporting entertainment. This might have lead them to unintentionally reduce news reporting about Islam. To them, covering Islamic entertainment is when they report about Islamic songs known as ‘nasyid’ and avoid themselves to report stories using inappropriate words and photos.

[]3.2

[]Lack of News Reporting About Islam is Due to Lack of Expertise in the Newsroom

[]Even though both newspapers do provide a column/s about Islam, however, most of the articles in this special column are not written by the journalists from UM or SH. It seems to suggest that both newspapers are lacking of journalists who have in-depth knowledge about Islam, thus the inability to write on Islamic subjects and issues. And, this might also have influenced the number of news reporting that covers Islamic values in UM and SH. Therefore, we believe that journalists who studied religion, especially Islamic studies are needed in the newsroom be neither Muslims nor Non-Muslims. This is because of negative precedents of Islamic interpretation which are caused by the problems peculiar to modern journalistic community as such shortage/absence of knowledge in this scope (Rupar 2012; Kouznetsova-Morenko 2003/2004). However, according to Hoover (2008), specializations in areas such as business, sports, politics, and governments have been thought to benefit from special knowledge, expertise, and experience, but religion has been thought to be especially challenging in this way, and many reporters and editors have shied away from it as a result. But, as mentioned by Pintak and Franklin (2013), a reporter writing about the Muslim residents of the reporter community does not need to be an expert on Islam, but the reporter does need to know enough to ask intelligent questions, avoid mistakes, and steer clear of stereotypes that might unintentionally give offense. This might be a better overall suggestion to the newsrooms, if having journalists with official Islamic knowledge is difficult, then it is pertinent now to have those with in-depth Islamic worldview to write about Islam in the papers. This further suggests that, reporting on religion deserves to be part of journalism education, as a journalism student’s knowledge acquiring process normally begins with the tertiary education at universities. Here, academician should take it as part of their responsibility to inform students the proper way in reporting the religions they may cover.

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[]Ethical Principle as the Main Guide in News Construction

[]The answers below given by the journalists demonstrated that they were really concerned about reporting news in an ethical way. However, the answers suggest that the journalists did not see that they were also implementing Islamic values in doing their work. Journalist A 2: I certainly don’t have a specific answer about how Islamic elements affect our news, but all the report that we publish, we try to publish the truth and no personal interest… Journalist B 5: We may publish news about religion as long as it will not create tension to other religion, so then our newspaper does not belong to any religious or political group.

[]The answer from Journalist B is in line with the Islamic mandate which requires Muslims to respect those of other religions, what better way to do this than by having a thorough understanding of the beliefs and way of life of adherents of other religions (Ishak and Solihin 2012). Here, the fact that among these Muslim journalists, whether or not the journalists themselves are consciously aware of it, professional aspirations closely track a parallel set of obligations intrinsic to Islam (Pintak 2013). Pintak’s argument was also build on the qualitative work of Janet Steele (2011), who found that journalists in Indonesia and Malaysia ‘express the universal values of journalism, but do so within an Islamic idiom and, more generally, see and understand the significance of their work through the prism of Islam’. However, it is undeniable that we should also concern there are no professional associations of Islamic journalists which can set professional and ethical criteria for news reporting, protect the rights of individual Muslim journalists, and promote education and training of young men and women who represent a major source of human resources for Islamic culture and civilization (Mowlana 2007).

[]4 Conclusion It cannot be denied that negative news about Islam in the Western world is based on ‘facts’. Those who present negative images of Islam and its alleged incompatibility with Western culture are mostly politicians, civil servants, and researchers. The media contributes to shaping the myth of threat by presenting such statements uncritically (Shadid and van Koningsveld 2002). Positively, this research has a clear finding that the values of the Islamic faith were applied in the concept of ethical principle indirectly, and then result in a news product that reflected these values. Findings also suggest the need of journalist specializing in the reporting of Islam issues to be exposed to a certain acceptable level of knowledge in Islam in order to

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[]have a better grasp of Islamic values and issues which would be reflected in their work. Even, it notes that in Malaysia, despite a proliferation of journalism/ communication schools over more than three decades, there is no course on the reportage of religions/Islam (Merican 2010), but government involvement may be well effective in influencing the function of media in developing and understanding about Islam, while at the same time acknowledging media right to independent reporting. This could be one of the effective efforts in avoiding the misinterpretation about Islam among non-Muslim, as well as by those who, within an Islamic community itself lay a false claim who consider their interpretation of the Islam to be the only right one. Acknowledgements The researchers wish to thank the Universiti Sains Islam Malaysia for providing the funding to fund this study.

[]References Eilders, C. (2006). News factors and news decisions: Theoretical and methodological advances in Germany. Communications, 31, 5–24. Elliott, C. W., & Greer, C. F. (2010). Newsworthiness and Islam: An analysis of values in the Muslim online press. Communication Quarterly, 58(4), 414–430. Faruqi, S. S. (2011, May). The constitution of Muslim majority state: The example of Malaysia. Paper presented at the Constitution-making Forum: A Government of Sudan Consultation, Khartoum, Sudan. Ghani, Z. A. (2004). Islamic values and ethics in the life of communication scholar. Journal of Communication and Religion, 27(March), 58–62. Hoover, S. M. (2008). Media and religion. A white paper from the Center for Media, Religion, and Culture. Retrieved from http://cmrc.colorado.edu/cmrc/images/stories/Center/Publications/ whitepaperfinalversion.pdf Ibrahim, F., Mustaffa, N., Kee, C. P., & Ahmad, F. (2011). Images and issues of superpowers: An analysis of international news coverage by the government-owned news agency, Bernama in four national dailies in Malaysia. The Innovation Journal: The Public Sector Innovation Journal, 16(3), 1–15. Ishak, M. S., & Solihin, S. M. (2012). Islam and media. Asian Social Science, 8(7), 263–269. Kouznetsova-Morenko, I. (2003/2004). Islam in mass-media space of Russia and Tatarstan: Policy and social analysis. Retrieved from http://pdc.ceu.hu/archive/00002356/01/morenko. pdf Merican, A. M. (2010). Orientalism in reporting religion: Approaches to teaching journalism and Islam as a civilization. Asia Pacific Media Educator, 20, 163–175. Mowlana, H. (2007). Theoretical perspectives on Islam and communication. China Media Research, 3(4), 23–33. Nistor, C., & Beuran, R. (2014). Exploring media and religion—With a study on professional media practices. Journal for the Study of Religions and Ideologies, 13(37), 178–194. Othman, S. S., Nayan, L. M., & Tiung, L. K. (2013). Popular culture in the context of Malaysian news construction. In Proceedings of International Symposium on Business and Social Sciences, Tokyo, Japan, March 15–17, 2013. Pintak, L. (2013). Islam, identity and professional values: A study of journalists in three Muslim-majority regions. Journalism,. doi:10.1177/1464884913490269

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[]Pintak, L., & Franklin, S. (2013). Islam for journalists. Social Science Research Council. Retrieved from www.IslamforJournalists.org Rupar, V. (2012). Getting the facts right: Reporting ethnicity & religion. Brussels, Belgium: International Federation of Journalists. Shadid, W., & van Koningsveld, P. S. (2002). The negative image of Islam and Muslims in the west: Causes and solutions. In W. Shadid & P. S. van Koningsveld (Eds.), Religious freedom and the neutrality of the state: The position of Islam in the European Union. Leuven: Peeters. Steele, J. (2011). Justice and journalism: Islam and journalistic values in Indonesia and Malaysia. Journalism, 12(5), 533–549. Tiffen, R., Jones, P. K., Rowe, D., Aalberg, T., Coen, S., Curran, J., et al. (2013). Sources in the news. Journalism Studies,. doi:10.1080/1461670X.2013.831239

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[]Part V

[]Economics

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[]Chapter 33

[]The Effects of Gender-Separate Human Capital Composition on Technology Transfer and Absorptive Capacity Soo Cheng Chuah, Nor Azam Abdul Razak and Hussin Abdullah

[]Abstract International transfer of technology has been recognized as a major source of total factor productivity growth in the developing countries. The ability to absorb global technology is crucial in determining the extent of technology transfer in the recipient country. This paper empirically investigates the effect of gender-separate human capital level in the technology diffusion process and productivity growth in a panel of 12 developing Asian countries over the period 1970–2009. The model of logistic technology diffusion is used to measure the degree of different types of female and male education level contribution on total factor productivity growth using fixed and random effects estimators. It contributes to the growth and development literature by presenting empirical evidences on the role of gender-separate human capital composition in facilitating technology transfer process. The results show that both female and male education levels are significant in facilitating technology diffusion and TFP growth. Tertiary education based absorptive capacity has greater impact in productivity convergence while the impact of primary and secondary education is marginally lower. Thus, tertiary education is important in enhancing TFP growth and induces developing Asian to move closer to technological frontier. However, the absorptive capacity of female is greater at the low education level while male has greater absorptive capacity at high education level. Keywords Absorptive capacity

[]Human capital Technology transfer

[]S.C. Chuah (&) Faculty of Business Management, Universiti Teknologi MARA Shah Alam, 45450 Shah Alam, Selangor, Malaysia e-mail: [email protected] N.A. Abdul Razak H. Abdullah School of Economics, Finance and Banking, Universiti Utara Malaysia, 06010 Sintok, Selangor, Malaysia e-mail: [email protected] H. Abdullah e-mail: [email protected] © Springer Science+Business Media Singapore 2016 M.A. Abdullah et al. (eds.), Regional Conference on Science, Technology and Social Sciences (RCSTSS 2014), DOI 10.1007/978-981-10-1458-1_33

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[]1 Introduction It has been widely recognized that the differences in income across countries were largely due to the differences in total factor productivity (TFP) (Hall and Jones 1999; Easterly and Levine 2001) and TFP is an important factor in sustaining long-term growth. The two sources of TFP are innovation and technology transfer. As innovation activities are highly concentrating in the industrial countries, developing countries are technological followers and rely heavily on foreign sources of technology. Thus, technology transfer is an important factor in driving the TFP growth in developing countries. Technology can diffuse across countries through various conduits such as foreign direct investment (FDI), international trade, and labor mobility. However, technology transfer is not an automatic process. The efficiency of technology transfer is subjected to the technological absorptive capacity of the recipient country. As proposed by Nelson and Phelps (1966) catch-up model technology diffusion, the rate of technology adoption relies on the absorptive capacity in term of human capital and the technological gap between technology frontiers. Yet, empirical studies on the role of human capital on economic growth have shown mixed results. There are corresponding motivating hypothesis trying to answer the puzzling empirical findings by proposing different hypothesis to explain the impact of average value of human capital on economic growth. Instead of the average value of human capital, this paper pursues that human capital composition influences the ability of technology transfer process in enhancing TFP growth as recommended by Vandenbussche et al. (2006). In Vandenbussche et al.’s (2006) theoretical model, higher education or skilled workers (represented by tertiary education) do not facilitate technology transfer process for countries which are relatively farther away from the technological frontier, while unskilled workers (represented by primary and secondary education) facilitate technology transfer by assuming technology transfer as a non skill-demanding activity. These seem to suggest that developing countries should invest more in lower level of education rather than higher education in order to catch-up with the technological frontier. Indeed, technology imitation or adoption is a skill-demanding activity especially for those high-technology products which require skilled and educated workforce (Mansfield et al. 1981; Benhabib and Spiegel 2005); and the return to high-skilled labor in imitation or adoption activities is higher than innovation for countries below the technological frontier (Hanushek and Woesmann 2011). Such arguments seem to turnaround Vandenbussche et al.’s (2006) theoretical model prediction and question the underlying assumptions of Vandenbussche et al. (2006) theoretical model prediction which is an issue that justifies a new empirical aspect. According to Nelson and Phelps (1966), lagging countries with more educated or higher human capital level tend to have higher speed of technological catch-up. Thus, it could be argued that skilled and educated human capital facilitates technology transfer more efficiently than unskilled workers as emphasized by

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[]Calmfors et al. (2003) that “skilled people may represent small numbers but have a critical economic significance”. This study tested the related hypothesis based on a logistic technology diffusion model developed by Benhabib and Spiegel (2005) which involves a dampening effect of the diffusion process as the distance to technological frontier is increasing, implying that the technological gap between the lagging country and leading country continues to grow. According to logistic model, catching up will be slower if a country is too far from the technological frontier. In order to allow sufficient technological diffusion, a country must equip with adequate educational levels. If the educational levels are too low, it will be left behind and diverge in the long run. Using Vandenbuscche et al.’s (2006) theoretical model, Ang et al.’s (2011) findings seem to be consistent with the logistic specifications and contrary to Vandenbuscche et al. (2006) assumptions in which different types of human capital levels have no impact on the subsample of low income countries which are too distant from the frontier and with poor educational levels. Different types of education levels may have different impact on economic growth. Moreover, the rates of returns on human capital vary not only for different education levels but also for gender differences as asserted by Psacharopoulos and Patrinos (2004). The study contributes to the growth and development of literature by presenting empirical evidences on the role of gender-separate human capital composition in facilitating technology transfer process. A priori the rates of returns on human capital are varying for different gender education levels. Thus, this study attempts to address the gap in the literature by considering the impact of the dual dimensions of human capital—level-specific education and gender—on TFP growth for the developing Asian countries.

[]2 Empirical Framework Nelson and Phelps (1966) expressed a theoretical technology catch-up model that the growth of productivity depends on the interaction of human capital and technology gap between lagging country and technology frontier as implied in the following equation: DðAÞ ¼

[]max A_ A A ¼ £ðHCÞ A A

[]ð1Þ

[]where A is the technology level of a follower country, Amax is the technological level of leading country, and £ðHCÞ is human capital. By applying Nelson and Phelps ideas, Benhabib and Spiegel (1994) developed a technology catch-up model that human capital enhances productivity growth by facilitating technology transfer and innovation. Their model is expressed as:

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[]DAit ¼

[]max A_ it At Ait ¼ gðHCit Þ þ cðHCit Þ Ait Ait

[]ð2Þ

[]The logistic model of diffusion by Benhabib and Spiegel (2005) is specified as follows: DAit ¼

[]max A_ it At Ait Ait ¼ gðHCit Þ þ cðHCit Þ Ait Ait Amax t

[]ð3Þ

[]max A A As shown in Eq. (3), the technology catch-up term, t Ait it , is moderated by h i it the distance to the frontier, AAmax , because of technology clusters or weak recipit

[]ents’ technology absorptive capacity condition. This implies that technological catch-up may be slower if there is a large gap between lagging country and frontier country. Technological catch-up term, ci , is expected to be an increasing function with the level of human capital, i.e. c0i ðÞ [ 0. Assume g and c are constant, the solution of Eq. (3) in the limit can be expressed as: 0 ðci þ gi gmax Þ B ¼@ lim At =Amax t

[]1!1

[]ci Ai0 Amax o

[]0

[]ðci þ gi gmax Þ [ 0 if

[]1

[]C ðci þ gi gmax Þ ¼ 0 A ðci þ gi gmax Þ

[]ð4Þ

[]where the steady state growth relationship shows that the ability of a country to catch-up with the technology frontier depends on the catch-up rate, ci , and the difference in the innovation growth rate between leader country and follower country, gmax gi . If the catch-up rate, ci , exceeds the stated difference growth rate, that is ðci þ gi gmax Þ [ 0, showing that the leader country has an ability to pull the follower countries along, then the follower countries’ growth rate will converge. In order to keep within the gravitational pull path, high-skilled human capital (tertiary education) is more efficient than lower skilled human capital (primary and secondary education) as the high-skilled human capital can induce the catch-up faster and, thus, allows the catch-up rate to exceed the innovation differential growth rate. On contrast, if a country lack of absorptive capacity in absorbing and adopting new technology whereby ðci þ gi gmax Þ 0, then it is not able to catch-up and growth rates will diverge. Thus, the logistic type of technology diffusion shows that countries with very low human capital level (absorptive capacity) will get lag behind and it will observe a “convergence club” as technology diffusion does not take place effectively in the follower country. Intuitively, a high skilled worker would outperform than unskilled worker in absorbing and adapting new technological knowledge.

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[]The Effects of Gender-Separate Human Capital Composition …

[]347

[]Accordingly, the following empirical specifications are adapted: GTFPit ¼ b0 þ b1 FHCit b2 FHCit

[]Ait ALt

[]þ b3

[]Ait ALt

[]þ FDIit þ OPENKit þ eit ð5aÞ

[]GTFPit ¼ b0 þ b1 MHCit b2 MHCit

[]Ait ALt

[]þ b3

[]Ait þ FDIit þ OPENKit þ eit ALt ð5bÞ

[]where b1 ¼ ðg þ cÞ, b2 ¼ c, FHC is the average years of primary, secondary, and tertiary schooling for female population aged 15 and above, MHC is the average years ofprimary, secondary, and tertiary schooling for male population aged 15 and above,

[]Ait ALt

[]indicates the technology gap (represents autonomous technology

[]convergence) and control variables are the percentage of foreign direct investment inflows to gross domestic product (GDP) ðFDIÞ, openness ratio to GDP at 2005 constant prices ðOPENKÞ and eit is stochastic error term.

[]3 Estimation Method and Data Penn World Data Table version 7.1 is used to calculate the TFP growth rate. This study applies growth accounting method to calculate TFP, by using the standard aggregate production function: Y ¼ AK a ðLÞ1a where y is real gross domestic product per worker, K is physical capital stock and A is the TFP. Share of physical capital stock, a, is equal to 0.30 while ð1 aÞ is the share of labor. Divide aggregate production function by labor input L:

[]a Y K ¼A ; L L

[]where YL is output-per worker and KL is physical capital-per worker. Rearrange the per a worker equation, TFP ¼ A ¼ YL = KL . The TFP growth rate is: D ln A ¼ ln Ait ln Ait1 : The physical capital stock series is computed using the perpetual inventory method,

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[]348

[]S.C. Chuah et al.

[]Kt ¼ It þ ð1 dÞKi;t1 ; where K is the amount of capital, d is the depreciation rate which was assumed at five percent and I is the amount of investment. To obtain capital stock data series, initial capital stock is estimated by: K0 ¼

[]I0 ; gss þ d

[]where gss is the growth rate of real investment over the period 1970–2009. Human capital data in term of average year of total schooling for female and male population aged 15 and above; average year of primary, secondary, and tertiary schoolings for female and male population aged 15 and above are extracted from Barro and Lee (2010) schooling dataset. Control variables—percentage of foreign direct investment inflows to gross domestic product ðFDIÞ obtained from UCTAD (United Nations Conference on Trade and development) interactive database and openness ratio to gross domestic product at 2005 constant prices ðOPENKÞ obtained from Penn World Table 7.0. The equations are estimated using fixed effects and random effects estimators for a panel of 12 Asian developing countries over the period 1970–2009. Data are average value or initial value over each five-year period to reduce the pressure of business cycle fluctuations. The interaction term of the raw explanatory variables in linear model (Eqs. 5a and 5b) may exhibit multicolinearity problems. Orthogonalization normality method (or residual centering method) is applied to eliminate these multicolinearity problems in the regression analysis. The ordinary least square estimation on a cross-section of countries is under the assumption that eit is the same across countries. However, there is an unobservable individual effect that captures country-specific heterogeneity which may cause the parameter estimates to be inconsistent. The panel data method allows controlling individual effects and allows the use of more observation and gives more degree of freedom. Thus, this study use the static panel data method: fixed effects and random effects model. The fixed effects model allows the individual specific effects to correlate with the independent variables, while random effects model does not allow such correlation. Restricted F-test is applied to select the appropriate model between pooled cross-section effect and the fixed effect. Hausman test is carried out to compare fixed effects and random effect model.

[]4 Estimation Results The impact of the dual roles of technological progress depends on the composition of human capital (Vandenbuschess et al. 2006; Kim and Terada-Hagiwara 2010). This study examines the impact of differences in the level of education by gender on the TFP growth. Table 1 presents the results of the heterogeneous impact of human

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[]33

[]The Effects of Gender-Separate Human Capital Composition …

[]349

[]capital composition for female schooling on TFP growth, which is measured by average years of primary, secondary, and tertiary schooling for female population aged 15 and above, separately, in Eqs. (5a) and (5b) using pooled OLS, fixed effects, and random effects estimators. In comparing the pooled OLS and fixed effects model, the overall F-test shows that the fixed effects model is more appropriate than pooled OLS model as presented in Table 1. This implies the presence of country-effects in the data. In testing the goodness of fixed effects versus random effects, Hausman test is applied. The Hausman statistics reject the null hypothesis that the country-effects are uncorrelated with the explanatory variables, implying that the fixed effects is more preferred than random effects specification. The null hypothesis of homoskedasticity is rejected implying there is a heteroskedasticity problem in the error term. To control the heteroskedasticity problem, the estimation results of fixed effects with panel corrected standard error are presented in Table 1 for female and male schooling, respectively. The estimated coefficients of female primary, secondary, and tertiary schoolings are positive and statistically significant. The interaction terms between female primary, secondary, and tertiary schoolings and distance to frontier have expected significant negative effects on TFP growth implying that all three different levels of female schoolings are significant in enhancing TFP growth by facilitating the ability of innovation and increase the absorptive capacity of technology transfer. The estimated coefficients of male primary, secondary, and tertiary schoolings are significantly positive. The interaction terms of male secondary and tertiary schoolings are negatively significant while male primary schooling is insignificant. The estimated coefficients of technological gap

[]Ait ALt

[]are negative and statisti-

[]cally significant at one percent level implying that technology convergence is independent of human capital in developing Asian countries. Control variables are insignificant. The regression results show that female and male tertiary schoolings are enhancing TFP growth through its impact on the speed of technology transfer and innovation. This is in contrast with previous studies that only primary and secondary schooling have significant impacts on economic growth of Asian countries (e.g. McMahon 1998; Bairam and Kulkolkarn 2001) as developing Asian countries have shown rapid educational progress in primary, secondary, and tertiary education for female and male population since 1980s, especially in primary and secondary schooling levels. By extending years of observations in the study, the estimated results show that tertiary schooling of both genders is important in enhancing productivity growth and its impact on TFP growth is greater than primary and secondary schoolings. The results seem to support Manca (2011) findings that high level of education (tertiary schooling) has greater impact in speeding up productivity convergence for developing countries. Transformation of developing Asian countries towards high technology and knowledge-intensive manufacturing increases the labor demand on human capital with higher education level (tertiary schooling) may lead to higher absorptive capacity of tertiary schooling on the speed of technology transfer and innovation.

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[]Average years of schooling for female population aged 15 and above ðFHCÞ 0.137*** 0.206*** 0.076 (2.430) (4.195) (3.349) 0.029** (2.056) −0.218* (−1.872) 0.046*** (3.289) −0.242** (−2.078) −0.017 (−0.1969) −2.254* (−1.813) −1.163*** −1.353*** −1.136*** (−3.960) (−4.469) (−3.663) 0.004 0.005 0.006 (0.879) (1.216) (1.358) 0.001 0.001 0.001 (0.482) (0.245) (1.996) 3.07*** 5.43*** 10.56*** 4.32*** 4.92*** 4.81*** 19.53*** 19.14*** 0.03*** 154.83*** 482.18*** 139.66***

[]Average years of schooling for male population aged 15 and above ðMHCÞ 0.094 0.191*** 0.179*** (1.486) (4.062) (3.182) 0.034*** (2.481) −0.251 (−1.540) 0.052*** (3.654) −0.232* (−1.820) 0.024 (0.260) −2.490** (−1.99) −1.138*** −1.436*** −1.138*** (−3.845) (−4.858) (−1.988) 0.006 0.007* 0.005 (1.295) (1.834) (1.194) 0.001 0.001 0.001* (0.318) (0.148) (1.790) 2.08*** 4.81*** 12.21*** 3.90*** 5.04*** 5.05*** 18.24*** 20.55*** 13.28*** 168.27*** 414.15*** 147.49***

[]Dependent variable: total factor productivity growth ðDAit Þ

[]Heteroskedasticity (v2 stat) Figures in the parentheses are t-statistics. *, ** and *** are the respective 10 %, 5 % and 1 % significant levels. PRI; SEC and TER indicate primary, secondary and tertiary average years of schooling aged 15 and above

[]LM test Restricted F-test Hausman test

[]OPENKit

[]FDIit

[]TFP Gapit

[]TERit TFP Gapit

[]TERit

[]SECit TFP Gapit

[]SECit

[]PRIit TFP Gapit

[]PRIit

[]Constant

[]Variable

[]Table 1 TFP growth estimation of female human capital composition based absorptive capacity: 1970–2009

[]350 S.C. Chuah et al.

[]33

[]The Effects of Gender-Separate Human Capital Composition …

[]351

[]Specifically, the point estimate of the interaction term of female secondary schooling is slightly greater than the interaction term of male secondary schooling. Whilst the point estimate coefficient of interaction term of male tertiary schooling is higher than the interaction term of female tertiary schooling. This implies that male has greater absorptive capacity in the technology transfer process at high education level while female absorptive capacity is higher at lower education level. This may be due to the discriminatory policies that limit the opportunities for female to receive tertiary education. Educational gender gaps have been eliminated in primary and secondary level in most of the developing Asian countries but are still weak in tertiary education.

[]5 Conclusion International transfer of technology has been recognized as a major source of productivity growth and the ability to extract global technology is crucial in determining the extent of technology transfer to the recipient country. This study estimated the role of female and male human capital in enhancing TFP growth through innovation and technology transfer based on logistic technology diffusion model in a panel sample of 12 developing Asian countries over the period 1970– 2009. It uses Barro and Lee (2010) educational attainment data on the average years of total schooling for female and male population aged 15 and above to measure human capital. Three different estimators are applied, such as pooled OLS, fixed effects, and random effects estimation. The empirical results in this study found that both female and male human capital enhance TFP growth through dual mechanisms of technological progress that comprises innovation and technology transfer. The heterogeneous impacts of gender disaggregate human capital level showed that the impact of high education level on TFP growth is larger than low education level. Tertiary education based absorptive capacity has greater impact on productivity convergence while the impact of primary and secondary education is marginally lower. Thus, tertiary education is important in enhancing TFP growth and induces developing Asian countries to move closer to technological frontier. However, the absorptive capacity of female is greater at the low education level while male has greater absorptive at high education level.

[]References Ang, J., Madsen, J. B., & Islam, M. R. (2011). The effects of human capital composition on technological convergence. Journal of Macroeconomics, 33(3), 465–476. Bairam, E., & Kulkolkarn, K. (2001). Human capital, production and growth in East Asia. Economics discussion papers University of Otago, No. 0106.

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[]Barro, R. J., & Lee, J. W. (2010). A new data set of educational attainment in the world, 1950-2010. NBER Working Paper Series No. 15902. http://www.nber.org/papers/w15902 Benhabib, J., & Spiegel, M. (1994). The role of human capital in economic development evidence from aggregate cross-country data. Journal of Monetary Economics, 34(2), 143–173. Benhabib, J., & Spiegel, M. (2005). Human capital and technology diffusion. In P. Aghion & S. N. Durlauf (Eds.), Handbook of economic growth (pp. 935–966). Amsterdam: Elsevier. Calmfors, L., Corsetti, G., Flemming, J., Honkapohja, S., Kay, J., Leibibfritz, W., et al. (2003). Should we worry about the brain drain? EEAG Report on The European Economy. http:// www.Cesifo-group.de/portal/page/portal/DocBase_Content/ZS/ZS-EEAG_Report/zs-eeag2003/forumspecial_chap5_2003.pdf Calmfors, L., Forslund, A., & Hemström, M. (2002). Does active labour market policy work? Lessons from the Swedish experiences. CESifo Working Paper Series 675, CESifo Group Munich. http://www.ifau.se/upload/pdf/se/2002/wp02-04.pdf Easterly, W., & Levine, R. (2001). It’s not factor accumulation: Stylized facts and growth models. World Bank Economic Journal, 22, 401–410. Hall, R. E., & Jones, C. I. (1999). Why do some countries produce so much more output per worker than others? The Quarterly Journal of Economics, 114(1), 83–116. Hanushek, E. A., & Woesmann, (2011). How much do educational outcomes matter in OECD countries? Economic Policy, 26(67), 427–491. Heston, A., Summers, R., & Aten, B. (2012). Penn World Table Version 7.1. In center for international comparisons of production, income and prices. http://pwt.econ.upenn.edu/php_ site/pwt_index.php Kim, Y. J., & Terada-Hagiwara, A. (2010). A survey on the relationship between education and growth with implications for developing Asia. Asian Development Bank Economics Working Paper No. 236. http://ssrn.com/abstract=1751825 or http://dx.doi.org/10.2139/ssrn.1751825 Manca, F. (2011). The farthest needs the best. Human capital composition and development specific economic growth. In DEGIT Conference Papers no. c016_048. http://www.degit.ifwkiel.de/papers/degit_16/c016_048.pdf Mansfield, E., Schwartz, M., & Wagner, S. (1981). Imitatio costs and patents: An empirical study. The Economic Journal, 91(364), 907–918. McMahon, W. W. (1998). Conceptual framework for the analysis of the social benefits of lifelong learning. Education Economics, 6(3), 309–346. Nelson, R. R., & Phelps, E. S. (1966). Investment in humans, technological diffusion, and economic growth. The American Economic Review, 56(1/2), 69–75. Psacharopoulos, G., & Patrinos, H. A. (2004). Returns to investment in education: A further update. Education Economics, 12(2), 111–134. Vandenbusscke, J., Aghion, A., & Meghir, C. (2006). Growth distance to frontier and composition of human capital. Journal of Economic Growth, 11(2), 97–127.

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[]Chapter 34

[]The Factors that Motivate Undergraduates to Pursue Tertiary Education: Employability, Expectation, Learning or Enjoyment Noor Ismawati Mohd Jaafar

[]Abstract The boost in the number of tertiary institutions and the number of graduates can be seen in the past few decades in most parts of the world. With an increase in the number of female applicants, the gender disparity among undergraduates is also widening. Despite domination of females in the enrollment at higher education institutions, statistics had shown that employment rates are lower among female graduates. Detailed reports had also revealed the differences in employment rate across field of study. As employability has been highlighted as the main factor motivating the youth and other non-traditional students to achieve higher education attainment, the situation raises a question. Did they further their study at tertiary education with different intentions? Analyses were conducted using primary data collected through a self-administrated survey. Quantitative analysis was done to investigate what is the reason for undergraduates to continue their study at a higher education institution. In specific, comparative studies are done by gender for various fields of study. The results indicate that dissimilarity exists across a field of study and within gender. Increased chances to be employed after graduating is not the only motivation to go for tertiary education. Hence, assessing the issue of unemployment among undergraduate should be done at the micro level. Keywords Field of study

[]Gender comparison higher education Labour force

[]1 Introduction In the modern era, both genders enjoy equal opportunity to continue study at tertiary level in most parts of the world. It is a common scenario in many countries where the female enrolled at Higher Education Institutions (HEI) outnumbered the N.I. Mohd Jaafar (&) Faculty of Economy and Administration, University of Malaya, Kuala Lumpur, Malaysia e-mail: [email protected] © Springer Science+Business Media Singapore 2016 M.A. Abdullah et al. (eds.), Regional Conference on Science, Technology and Social Sciences (RCSTSS 2014), DOI 10.1007/978-981-10-1458-1_34

[][email protected]

[]353

[]354

[]N.I. Mohd Jaafar

[]male students. Their domination can be seen not only at the undergraduate level but also at the postgraduate studies. While this wave started in the 70s in North America and Western Europe, gender parity only recently reached Central Asia, East Asia, and the Pacific (UIS 2012). Higher education attainment had been said to increase employability. Graduates normally have more privileges in job hunting as they face unemployment, less often (Jongsma 2007) with more job opportunities, better salaries and access to health care and retirement plans (Dohm and Wyatt 2002). In the United States, the lowest unemployment rate was observed among workers with college education as compared with workers with other the education attainment (Lee and Mather 2008). Malaysian unemployment rate within the age group of 15–64 was reported at 3 % in 2012 with the male unemployment rate at 2.9 and 3.2 % for female (Malaysia 2012). Back in 2010, the country’s unemployment rate was 3.4 % of the whole working age population. The rate was 3.3 % for male and 3.6 % for female. For the same year, the graduates’ unemployment rate was 2.6 % (male) and 3.7 % (female). For the past two decades, the boost in the number of HEI in Malaysia can be seen in the enrollment especially among females. In the 1980s, the number of unemployed male graduates in Malaysia was higher in comparison to females. However, since 1999, there were more unemployed female graduates as compared with males, except in 2005. Majority of unemployed graduates in 2010 were in the social sciences, business and law followed by engineering, manufacturing and construction; and science, mathematics and computing (Malaysia 2011). Even though females are said to be most benefited from the increase in the number of HEI, the increase in enrollment among them was not reflected in its labor force. As the relationship between education attainment and employability had been proven to be significant for both genders (Mincer 1991), there is evidence that the young females are having difficulties in finding works (ILO 2010). While in some countries social restriction is one of the main causes preventing these highly educated females to join the workforce, the low labor participation in other countries is puzzling especially when students themselves hinted the significance of employability as one of the main reasons for continuing study at HEI. This paper argues that their motive to continue study is not driven by one simple motivating factor but might vary between field of study and gender. Motivation is the study of why people think and behave as they do (Graham and Weiner 1996). To be motivated means to be moved to do something (Ryan and Deci 2000). Theories behind it could be simplified into intrinsic and extrinsic motivation factors. From the perspective of Self-Determination Theory, Ryan and Deci (2000) described an intrinsically motivated person is moved to act for the fun or challenge entailed while an extrinsically motivated person is doing it for the external prods, pressures, or rewards. Individual’s intentions to participate in higher education could be based on three motivation orientations namely goal, activity, and learning (Houle 1961 in Bennet 2004). Goal-oriented learners take part in education to accomplish clear-cut objectives. Activity-oriented or socially-oriented learners are based on the social benefit gain. Learning-oriented learners are those who seek knowledge out of their own interest and enjoyment.

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[]355

[]The youth is motivated to further study at tertiary level based on their labor market expectation, social origin, economic motives, and level of curiosity. Labor market expectation covers the perception of higher future earning and lower unemployment rates among graduates. The high unemployment rate among youth would also increase enrollment (Lauer 2004). At times when it is difficult to get job, it might be better to remain in the education system. Social origin refers to socioeconomic background. This includes inspiration from parents, especially father, who had attained tertiary education, encouragement from parents, and household income. Having no financial difficulties would motivate youth to further study at HEI. Economic motives are not only about the cost incurred and return, but also include financial incentives given to students. While Lauer (2004) found there was a significant effect of financial aids on the enrollment increment in Germany, Vergolini and Zanini (2012) shown it was not the case in Italy. More comprehensive literature on the role of financial aids was discussed by Vergolini and Zanini (2012). On the other hand, curiosity is defined as the desire to know, see or experience (Zelick 2007 in Yau et al. 2011). This includes the rewards received from learning activities such as new knowledge and experience. Job prospects, self-improvement, knowledge gain, and experience were found to be the main motivation to pursue tertiary education (Fernandez 2010). Studies on specific program reveal that students from different fields of study have their own motivation factors. Business studies students are motivated by goals and learning orientation, financial pressures, parental encouragement (Bennet 2004). Students enrolled in clinical laboratory science programs have the most important motivational factor as geographical location of the program, family and friends (Stuart 2002). Dadigamuwa and Senanayake (2012) discovered that students enrolled in an engineering program via open and distance learning without knowing the relevance of the study to them. They expect to earn a recognizable degree. By examining four contemporary theories of achievement motivation namely, attribution, expectancy-value, self-efficacy, and achievement goal perspectives, Meece et al. (2006) found that motivation-related beliefs and behavior between genders continue to follow gender role stereotypes. Males were found to have stronger ability and interest in mathematics and science and females have more confidence and interest in language arts and writing. Meece et al. (2006) also found ability, ethnicity, socioeconomic status, and classroom context as the moderating effects. Regardless of field of study, the results in Yau et al. (2011) indicate that no difference exists in level of curiosity, external regulation, and intrinsic motivation among undergraduates in Hong Kong. Among female students who enrolled for science, technology, engineering and mathematics undergraduate programs (STEM), Edzie (2014) found the variability in future career options, exposure to the program, availability of information about career pathways, level of confidence and support from parents and high school teachers as significant factors motivating them to pursue studies in the subject area. Due to data limitation, the paper would only discuss motivation factors from several perspectives as described in Fig. 1.

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[]356

[]N.I. Mohd Jaafar Motivation factor

[]Extrinsic

[]Goal Activity

[]Group comparison Employability Significant others expectation Life enjoyment Curiosity Knowledge Experience

[]Intrinsic

[]Learning

[]Ryan and Deci (2000)

[]Houle (1961) in Bennet, (2004)

[]Field of Study

[]Gender

[]Fig. 1 Conceptual framework

[]2 Methodology All analysis was done using primary data collected study through a selfadministrated survey. Respondents were randomly approached with a set of questionnaire adopted from the instrument used by Nagaraj et al. (2008). The questionnaires were distributed during March 2013. Apart from profiling information, respondents were asked to rate the importance of a list of reasons for pursuing tertiary education using a five-point scale, ranging from 1 indicating extremely unimportant to 5 indicating extremely important. The value is treated as a continuous variable representing the important score. The reasons listed in the questionnaire are Employability: (1) To get a good job, (2) Next step in career path; Significant others’ expectation: (3) Parental expectations, (4) Teachers’ expectations, (5) Friends are going to university too; Life enjoyment: (6) To have a good time; Curiosity: (7) Personal interest in a field of study; Knowledge: (8) To gain more knowledge and Experience: (9) To broaden my experience. Initially, the number of questionnaires returned was 742. After data cleaning, seven respondents were excluded from analysis. All data management and analyses were conducted with IBM SPSS 20.0. In providing numerical evidence, the analysis was done by generating descriptive statistics and exploratory factor analysis (EFA). The descriptive statistic measures such as frequency and percentage were generated for categorical variables. EFA was used as a data reduction method to identify reasons that could be grouped together by reducing the large number of reasons to pursue study at HEI into smaller number of latent variables. Two criteria for assessing the suitability of variables to be analyzed with EFA are Kaiser-Meyer-Olkin (KMO) and Bartlett’s test of Sphericity (Bartlett’s test). While KMO measures the sampling adequacy, Bartlett’s testing measured the existence of correlation between test variables. EFA is suitable to perform if KMO is more than or equal to 0.5 and Bartlett’s test is significant. All EFA is done with principal component analysis as extraction method and rotated using Varimax with Kaiser Normalization method. All listed reasons were used as the tested variables. EFA were conducted by gender in various fields of studies. The analysis suggests how a number of observable variables could be grouped into fewer variables. The input variable is known as measured variable and the output variable is known as latent variable or the factor. In this paper, the

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[]The Factors that Motivate Undergraduates to Pursue Tertiary …

[]357

[]reasons are the measured variable and the latent variables generated are the motivating factors. Once the factors were abstracted, an index number for each factor is generated. This index serves as the motivation score. The indexing was done by averaging the importance scores given by the individual respondents, for each of the reasons loaded in the respective factors. For comparison analysis, box-plots are used. The box plots show the minimum, quartiles, median, and maximum motivation scores of the respondents in the sub-samples. The cleaned sample consists of 735 first year students who were enrolled at University of Malaya from various faculties. Table 1 shows the profile of respondents. The percentage in the table was computed based on the sample of 735 respondents. The majority of respondents were female students and more than half were Malays. The Malay group includes the indigenous people and other ethnic group classified as Bumiputera as defined by Department of Statistics, Malaysia. The respondents were between 19 and 26 years old with 93 % either in the range of 20–21 years old. Only 4 % of the respondents were non-Malaysians. Most of these students had gone through some foundation studies program or had taken A-level prior to entering the undergraduate studies. The sample represents various fields of study from both social sciences based and science based. Due to low sample size, the EFA was only conducted in engineering, manufacturing and construction, science, humanities and arts and social sciences, business & law. These classifications were done based on the International Standard Classification of Education (UNESCO 2012).

[]Table 1 The sample profile Characteristic

[]Frequency

[]Percentage

[]Characteristic

[]31 69

[]Highest education attainment High school certificate/diploma

[]Gender Male Female Ethnicity Malaysian Malay Chinese Indian Others Non-Malaysian

[]227 508

[]Foundation certificate/A-level 411 254 27 17

[]56 35 4 2

[]26

[]4

[]HEI diploma Field of study Engineering, manufacturing and construction Health Science Education Humanities and arts Social sciences, business and law Service

[][email protected]

[]Frequency

[]Percentage

[]228

[]31

[]477

[]65

[]30

[]4

[]133

[]18

[]50 157 35 141 208

[]7 21 5 19 28

[]11

[]1

[]358

[]N.I. Mohd Jaafar

[]3 Results and Discussion For comparison, the samples observed were split into groups of different fields of study. Each group was further divided based on gender (male and female). The results of the EFA performed on each group are shown in Table 2. In general all variables in each group are suitable to be analyzed using EFA (KMO 0:5 and significant Bartlett’s test). The analyses suggest the reasons to be grouped into four factors for male students from science and humanities and arts. For the others, only three factors emerged from the analysis. Even though the number of factors is similar, each was loaded with different reasons representing different motivation factors as described in Ryan and Deci (2000) and Houle (1961) in Bennet (2004). Among male students from engineering, manufacturing and construction, the first motivation factor consists of employability, curiosity, and knowledge. The second factor pools the three significant others’ expectations as suggested by the literature. However, the third factor combined life enjoyment and experience. This group of students shows a mix of the intrinsic and extrinsic motivation factors. Students who are studying engineering, manufacturing and construction consider goals and learning as the most important motivation factors. This is shown in the box plot in Fig. 2. The box plot also indicates that the third factor was more important than the second factor. For female students, their first motivation combines employability, curiosity, knowledge, and experience. Unlike the male students, their second motive combines significant others (parent and teachers) and life enjoyment. Friends were their third factors. Similar to the males, females’ most important motivation factors combine goal and learning. Friends play more important roles than parents, teachers and, life enjoyment. This is consistent with Edzie (2014) except that the role of friends appears as one of the factors. Contradictory to Dadigamuwa and Senanayake (2012) studies among engineering students enrolled in open and distance learning mode, the students in the sample have high awareness on the relevance of the study to their future career. For science students, the most important motivation among the male was employability and significant others (parent and teachers) followed by knowledge. The male science students were mixing friends, life enjoyment, and curiosity as one motivation factor. They also consider the experience as a separate motivation factor. In contrast, the females’ most important motivational factor was significant others and life enjoyment followed by to get a job and learning motives. To them, next career step is a different motivation factor for getting a good job. The finding has similarity with Edzie (2014) with the addition of friends and life enjoyment. For the males who are studying humanities and arts, the most important motivation factor is learning motives followed by employability, life enjoyment, and significant others. The result is consistent with Ryan and Deci (2000) and Houle (1961) in Bennet (2004). As for the females, the first factors combine all three

[][email protected]

[]–

[]–

[]0.69

[]–

[]–

[]–

[]–

[]–

[]–

[]0.71

[]0.70

[]–

[]25.02

[]5

[]9

[]8

[]7

[][email protected]

[]61.90

[]0.72

[]–

[]–

[]NA

[]Factor 4

[]KMO = 0.5778, Bartlett’s test (137.1, df = 36)

[]48.44

[]0.73

[]0.76

[]–

[]4

[]6

[]0.80

[]–

[]3

[]–

[]–

[]–

[]–

[]–

[]0.70

[]Field of study

[]a Engineering, manufacturing and construction

[]0.70

[]Reasons

[]1

[]Factor 1

[]2

[]Factor 2

[]0.51

[]Communality

[]–

[]46.59

[]–

[]–

[]–

[]0.81

[]–

[]0.51

[]0.63

[]–

[]–

[]Factor 3 64.18

[]–

[]–

[]–

[]–

[]0.82

[]–

[]–

[]–

[]0.67

[]0.73

[]0.51

[]0.75

[]0.68

[]0.64

[]0.74

[]0.44

[]0.60

[]Communality

[]KMO = 0.6515, Bartlett’s test (150.85, df = 36)

[]0.58 25.87

[]0.51

[]0.57

[]0.56

[]–

[]–

[]–

[]–

[]0.85

[]0.76

[]Factor 1

[]–

[]0.58

[]0.70

[]0.64

[]0.74

[]0.68

[]0.66

[]0.55

[]Factor 2

[]Loadings

[]Female

[]45.27

[]–

[]–

[]–

[]–

[]–

[]–

[]–

[]Factor 3 64.14

[]0.82

[]0.79

[]0.58

[]–

[]–

[]–

[]–

[]–

[]–

[]78.47

[]–

[]–

[]–

[]0.95

[]–

[]–

[]–

[]–

[]–

[]Factor 4

[]KMO = 0.4909, Bartlett’s test (98.81, df = 36)

[]24.93

[]–

[]–

[]–

[]–

[]0.65

[]0.87

[]0.88

[]0.80

[]0.89

[]–

[]–

[]Loadings

[]Male Factor 1

[]Male Factor 2

[]Loadings

[]Communality 0.70

[]0.83

[]0.79

[]0.68

[]0.90

[]0.79

[]0.85

[]0.82

[]0.69

[]Female Loadings Factor 3 64.06

[]–

[]–

[]–

[]0.80

[]–

[]–

[]–

[]–

[]0.62

[]0.56

[]0.83

[]0.80

[]0.58

[]0.73

[]0.37

[]0.68

[]0.53

[]0.69

[]Communality

[](continued)

[]KMO = 0.6746, Bartlett’s test (273.62, df = 36)

[]49.17

[]0.53

[]– 28.52

[]0.81

[]0.67

[]–

[]–

[]–

[]–

[]0.48

[]–

[]–

[]–

[]–

[]0.73

[]0.91

[]0.90

[]–

[]–

[]Factor 1

[]Table 2 EFA output

[]Factor 3

[]Tests Var

[]Field of study c Humanities and arts

[]Factor 2

[]34 The Factors that Motivate Undergraduates to Pursue Tertiary … 359

[]0.86

[]0.78

[]Reasons

[]1

[]2

[]Field of study

[]Scienceb

[]0.71

[]–

[]–

[]–

[]–

[]–

[]24.92

[]9

[][email protected]

[]–

[]76.44

[]0.86

[]–

[]–

[]–

[]–

[]–

[]–

[]–

[]KMO = 0.6445, Bartlett’s test (132.28, df = 36)

[]62.22

[]–

[]0.89

[]–

[]–

[]Factor 4

[]–

[]Communality

[]0.70

[]0.80

[]0.75

[]0.64

[]0.83

[]0.77

[]0.79

[]0.82

[]0.78

[]54.43

[]0.80

[]0.76

[]0.72

[]–

[]–

[]–

[]–

[]–

[]0.66

[]–

[]Factor 3 69.98

[]–

[]–

[]–

[]–

[]–

[]–

[]–

[]0.80

[]0.75

[]0.74

[]0.73

[]0.80

[]0.76

[]0.66

[]0.73

[]0.56

[]0.58

[]Communality

[]KMO = 0.7114, Bartlett’s test (315.05, df = 36)

[]28.72

[]–

[]–

[]–

[]0.57

[]0.86

[]0.86

[]0.82

[]–

[]–

[]Factor 1

[]0.82

[]–

[]52.45

[]0.72

[]0.66

[]0.59

[]–

[]–

[]–

[]Factor 3

[]0.45

[]0.66

[]65.63

[]–

[]0.75

[]0.53

[]0.77

[]0.74

[]0.65

[]0.52

[]0.83

[]NA

[]Communality

[]–

[]–

[]0.86

[]–

[]–

[]–

[]–

[]–

[]Factor 4

[]KMO = 0.6346, Bartlett’s test (127.22, df = 36)

[]26.50

[]–

[]–

[]–

[]–

[]0.81

[]0.91

[]0.69

[]0.68

[]–

[]–

[]Loadings

[]Male

[]Female Loadings

[]0.51

[]–

[]55.29

[]–

[]–

[]–

[]–

[]0.74

[]0.80

[]0.80

[]–

[]68.26

[]–

[]–

[]–

[]0.83

[]–

[]–

[]–

[]–

[]–

[]Factor 3

[]0.70

[]0.62

[]0.68

[]0.65

[]0.66

[]0.75

[]0.73

[]0.61

[]0.75

[]KMO = 0.7291, Bartlett’s test (454.96, df = 36)

[]30.63

[]0.80

[]0.83

[]0.83

[]–

[]–

[]–

[]–

[]0.66

[]Communality

[]Source Survey. NA = not applicable; var = % of total variance (cumulative). All Bartlett’s tests are significant at 1 %. Rotation converges in a6 iterations (male) and 7 iterations (female); b6 iterations (male) and 5 iterations (female); c6 iterations (male) and 8 iterations (female); d4 iterations (male) and 6 iterations (female)

[]8

[]7

[]47.88

[]0.89

[]0.86

[]–

[]5

[]6

[]–

[]–

[]–

[]–

[]–

[]0.74

[]0.50

[]–

[]–

[]3

[]Factor 1

[]4

[]–

[]Factor 2

[]–

[]Factor 2

[]Loadings Factor 1

[]Female Factor 2

[]Male Factor 1

[]Loadings

[]Factor 3

[]tests var

[]Field of study d Social sciences, business and law

[]Factor 2

[]Table 2 (continued)

[]360 N.I. Mohd Jaafar

[]34

[]The Factors that Motivate Undergraduates to Pursue Tertiary …

[]361

[]Fig. 2 Distribution of motivation score. Source Survey. +medium = 1st quartile. ^Maximum = 3rd quartile

[]measures for significant others. The other one combine career path which is extrinsic and learning motives which is an intrinsic motivation factor. To get a good job combines with life enjoyment. The most important factor to them is a career path and learning motives. To get a good job and life enjoyment is more important than significant others. While the other field of studies had shown differences between male and female motivation factors, both male and female students from social sciences, business & law have the same patterns of motives which are similar with Bennet (2004). Their most important motive is employment and learning motive followed by life enjoyment as the second motive and significant others as the third one. There is not much difference in the importance of life enjoyment and significant others. Statistics for unemployed graduates in Malaysia in 2011 was 39.4 % for social sciences, business and law; 21.7 % in engineering, manufacturing and construction; 17.9 % in science, mathematics and computing and 6.3 % for humanities and arts (Malaysia 2011). As shown in the analysis, both male and female students from the social sciences, business and law considered life enjoyment as single motivation factor to go to HEI. Contradictory to other students from field of study; life enjoyment does not combine with other factors. Even though life enjoyment was not the most important motivation, the fact that it was not combined with other reasons suggests the existence of students who further study at HEI for pleasures. It is also concluded that the significant in level of curiosity and intrinsic motivation among undergraduates in the sample differs across gender and field of study, unlike what discovered in Yau et al. (2011).

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[]N.I. Mohd Jaafar

[]4 Conclusion and Recommendation In order to identify what motivates students to further study at HEI and investigate whether it differs by field of study and gender, the paper utilized EFA to generate motivation index using data collected from first year undergraduate students. The results suggest that the motivation theories applied only to the male students from humanities and arts. Most students were having a combination of intrinsic and extrinsic motivation factors. Comparing the four fields of study, humanities and arts (male students only) and social sciences, business and law are the only two with life enjoyment as a single motivation factor. However, life enjoyment did not emerge as the most important factor. Nonetheless, it did carry some weight as a secondary motive either as a standalone motive or combined with other motives. Within the four tested motivation orientation, the two that emerged as the most important motivation are employability and learning motives. The influence of significant others was only important among female students who study science. The study had supported the argument that students’ main motivation to go to HEI is for employment and learning purposes. However, results from four tested field of studies between genders have shown different patterns and combinations of intrinsic and extrinsic motivation factors. This suggests that assessing the issue of unemployment among graduate should not be done at the micro level. The motive varies across a field of study and gender. The analysis also suggests that students also entered HEI for having a good time. The study discussion is only limited to four fields of studies and few attributes to measure motivation. As highlighted in the literature, more comprehensive instrument could be used if similar study would be repeated. The next step of analysis could be done to see the relationship between the motives and current academic performance or actual employment status after graduation.

[]References Bennett, R. (2004). Students’ motives for enrolling on business degrees in a post-1992 university. International Journal of Educational Management, 18(1), 25–36. Dadigamuwa, P. R., & Senanayake, N. S. (2012). Motivating factors that affect enrolment and student performance in an ODL engineering program. The International Review of Research in Open and Distance Learning, 13(1), 238–249. Dohm, A., & Wyatt, I. (2002). College at work: Outlook and earnings for college graduates, 2000–2010. Occupational Outlook Quarterly, 46, 2–15. Edzie, R. L. (2014). Exploring the factors that influence and motivate female students to enroll and persist in collegiate STEM degree programs: a mixed methods study. Educational Administration: Theses, Dissertations, and Student Research. Paper 171. Retrieved at http:// digitalcommons.unl.edu/cehsedaddiss/171 Fernandez, J. L. (2010). An exploratory study of factors influencing the decision of students to study at universiti Sains Malaysia. Kajian Malaysia, 28(2), 107–136. Graham, S., & Weiner, B. (1996). Theories and principle of motivation. In D. C. Berliner & R. C. Calfee (Eds.), Handbook of educational psychology (pp. 63–84). New York: Macmillan.

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[]Houle, C. O. (1961). The inquiring mind. Madison, WI: University of Wisconsin Press. Republished 1988. International Labor Organization (ILO). (2010). Global trends of youth employment. Geneva. Jongsma, A. (2007). Grab a master’s and double your income. University World News. Available from www.universityworldnews.com Lauer, C. (2004). Enrolments in higher education: do economic incentives matter? Education + Training, 44(4/5), 179–185. Lee, M., & Mather, M. (2008). U.S. Labor force trends. Population Bulletin, 63, 3–16. Malaysia, Department of Statistics. (2011). Statistics of graduate in the labour force Malaysia 2011. Putrajaya. Malaysia, Department of Statistics. (2012). Labour force survey report Malaysia 2012. Putrajaya. ISSN 0128-0503. Meece, J. L., Glienke, B. B., & Burg, S. (2006). Gender and motivation. Journal of School Psychology, 44, 351–373. Mincer, J. (1991). Education and Unemployment. NBER Working Paper No. W3838. Retrieved from http://ssrn.com/abstract=226736 Nagaraj, S., Munisamy, S., Mohd Jaafar, N. I., Abdul Wahab, D., & Mirzaei, T. (2008). How do undergraduates choose their university? A study of first year university of Malaya Students. FEA Working Paper Series 2008-8. Kuala Lumpur: Faculty of Economics and Administration, University of Malaya. Ryan, R. M., & Deci, E. L. (2000). Intrinsic and extrinsic motivations: Classic definitions and new directions. Contemporary Educational Psychology, 25, 54–67. doi:10.1006/ceps.1999.1020. available online at http://www.idealibrary.com Stuart, J. M. (2002). Factors influencing student enrollment in clinical laboratory science programs. American Clinical Laboratory, 21(7), 31–33. UNESCO Institute for Statistics (UIS). (2012). Global education digest 2012. Retrieved from http://www.uis.unesco.org/EDUCATION/Pages/global-education-digest.aspx United Nations Education, Scientific and Cultural Organization (UNESCO). (2012). International Standard Classification of Education 2011. UNESCO Institute of Statistics. ISBN 978-92-9189-123-8. Vergolini, L., & Zanini, N. (2012). How does aid matter? The effect of financial aid on university enrolment decisions. Institut d’Economia de Barcelona (IEB) Working Papers N.2012/7. Yau, H. K., Kan, M. S., & Cheng, A. L. F. (2011). Gender differences on intrinsic motivation in Hong Kong higher education. e-Journal of Organizational Learning and Leadership, 9(2), 63–80. Zelick, P. R. (2007). Issues in the Psychology of Motivation. New York: Nova Science Publishers.

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[]Part VI

[]Education

[][email protected]

[]Chapter 35

[]Determinant of Satisfaction in E-learning Usage: An Evidence in Malaysian Higher Institution Fahmi Zaidi Bin Abdul Razak, Azlina Abu Bakar, Wan Salihin Wong Abdullah and Mohd Amli Abdullah Abstract The growing use of internet technologies has changed the way business is done, as well as the field of education. E-learning is one of the major discipline that have been discussed in previous studies. However, one major issue in e-learning acceptance is the reasons why some learners are dissatisfied with the e-learning experience This study examined the relationship between system quality, information quality and service quality on behavioral intention. A total of 427 Malaysian local university students were surveyed using a standard questionnaire. The results showed that system quality, information quality, and service quality are determinants of behavioral intention. The results of the study suggest empirical justification for the developers and practitioners to purify the information management strategies in Malaysia.

[]Keywords Student satisfaction System quality Statistical Package for Social Science

[]Service quality E-learning

[]1 Introduction Information and communication technology (ICT) have the capability to improve the operational processes of any business and education industry (Siritongthaworn and Krairit 2006). In fact, it plays a big role in many teaching activities, such as instructional delivery, material preparation, class communication, and evaluation. F.Z.B. Abdul Razak (&) Faculty of Education, Social Science University College ShahPutra (UCSA), BIM Point, 25200 Bandar Indera Mahkota, Kuantan, Pahang, Malaysia e-mail: [email protected] A. Abu Bakar W.S.W. Abdullah Faculty of Social development, Universiti Malaysia Terengganu, 21030 Kuala Terengganu, Malaysia M.A. Abdullah Universiti Teknologi MARA Pahang, 26400 Jengka, Pahang, Malaysia © Springer Science+Business Media Singapore 2016 M.A. Abdullah et al. (eds.), Regional Conference on Science, Technology and Social Sciences (RCSTSS 2014), DOI 10.1007/978-981-10-1458-1_35

[][email protected]

[]367

[]368

[]F.Z.B. Abdul Razak et al.

[]E-learning has several advantages such as it can take advantage of coaching and facilitated learning by building online knowledge repositories, such as lessons learned and others (Hassanzadeh et al. 2012). In Malaysian context, Ministry of Education Malaysia (2012) in the preliminary report of Malaysia Education Blueprint 2013–2025 said that students not only learn how to use ICT but are able to leverage it effectively to enhance their learning. Furthermore, the UNESCO review noted that Malaysia was among the first few countries in the world to have pioneered a strategic ICT plan for its education system. Despite its great advantages, rarely known about what is the predictor that contribute to students’ satisfaction on e-learning usage. Research on students’ satisfaction is crucial as student satisfaction is an important factor in measuring the effectiveness of e-learning (Baturay 2011). As mentioned by Lemos and Pedro (2012), it is critical to know which factors influence student satisfaction in e-learning, because they can be used as regulatory indicators of the adequacy of the course design and the fitness of the virtual learning environment. Furthermore, satisfaction is widely accepted as a desirable outcome of any product or service experience (Siritongthaworn and Krairit 2006), thus it is crucial to know what drives e-learners’ satisfaction in order to retain student engagement in e-learning usage. Research on e-learning satisfaction has shown that several factors affected e-learners’ satisfaction. Previous research on You Tube users’ satisfaction has demonstrated the significant role of perceived usefulness (Lee and Lehto 2013). In the context of digital object identifier systems, perceived usefulness, system quality and information quality were found to play a significant role in users satisfaction. (Park et al. 2011). Perceived usefulness and positive disconfirmation were found to have positive and significant relationship on users’ satisfaction in e-negotiation system usage (Doong and Lai 2008)

[]2 Literature Review 2.1

[]E-learning in Higher Education

[]E-learning systems are rapidly becoming an integral part of the teaching and learning process (van Raaij and Schepers 2008). Furthermore, e-learning systems enhance face-to-face teaching as well as improves communication efficiency, both between student and teacher, as well as among students (van Raaij and Schepers 2008).

[]2.2

[]Satisfaction

[]Satisfaction is an individual’s feelings of pleasure or disappointment resulting from comparing a product’s perceived performance (or outcome) in relation to his or her expectations (Chiu et al. 2005). Satisfaction is also said to be positively correlated with future intention, both directly and indirectly via its impact on attitude

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[]Determinant of Satisfaction in E-learning Usage …

[]369

[](Oliver 1980). It is crucial to know which factors influence student satisfaction in distance learning or web-based learning, because they can be used as regulatory indicators of the adequacy of the course design and the fitness of the virtual learning environment (Lemos and Pedro 2012). Thus, it can help identify effective strategies and services for student’s online support, contributing to promote student’s general satisfaction with these new course formats. Previous studies have shown that satisfaction was explained by various factors including distributive fairness, procedural fairness, interactional fairness, attainment value, and intrinsic value (Chiu et al. 2007), communication quality, information quality, system quality and service quality (Wang and Chiu 2011), perceived usefulness and confirmation (Liao et al. 2009) human–computer interaction, social interaction, hedonic value and utilitarian value (Chang 2013a), perceived usability, usability disconfirmation, perceived quality, quality disconfirmation, perceived value, value disconfirmation (Chiu, et al. 2005), course delivery, tutor quality, facilitating conditions, and perceived ease of use (Teo 2010).

[]3 Research Model and Hypotheses 3.1

[]The Influence of System Quality

[]Previous studies have shown that system quality has been represented by ease of use. Prior studies on information system success have also provided support for the notion that system quality positively affected user satisfaction (Freeze et al. 2010; Wang and Chiu 2011). Therefore, the following hypothesis is proposed: H1 System quality is positively related to learners’ satisfaction with e-learning system.

[]3.2

[]The Influence of Service Quality

[]According to Oliver (1980), service quality is a performance perception which influences customer satisfaction through two mechanisms, directly via customer observation of good or bad service quality and indirectly via an input to the disconfirmation comparison (i.e. discrepancy between performance and expectation). In this paper, service quality refers to the assessment of the service provided via the system. Prior studies (Chang 2013b; Wang and Chiu 2011) indicated that service quality was significantly related to student’s’ satisfaction. Therefore, the following hypothesis is proposed: H2 Service quality is positively related to learners’ satisfaction with e-learning system.

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[]370

[]3.3

[]F.Z.B. Abdul Razak et al.

[]The Influence of Course Content Quality

[]The course content quality is defined as the judgment by (the students) of the degree to which course content management systems are provided with valuable content, with regard to the defined needs of the students (Adeyinka and Mutula 2010). The same definitions as described above were used for this study. The quality of course content is measured by its timeliness, relevance of course content to students’ needs, usefulness to students, accuracy, importance, availability, and completeness (Adeyinka and Mutula 2010). In this study; content quality is used because the output of course content management system is the content it produces. Therefore, content quality is more suitable instead of information quality. Since course content quality and information quality is almost similarly constructed, this study will use previous literature of information quality to determine the direction of the hypotheses. Thus, according to Delone and Mclean’s information system success model (Delone and McLean 2003), information quality influence users’ satisfaction. This study therefore sought to test the following hypotheses: H3 Course content quality is positively related to learners’ satisfaction with e-learning system. The research model for this study is shown by Fig. 1.

[]SYSTEM QUALITY

[]H1 SERVICE QUALITY

[]H2 SATISFACTION

[]H3 COURSE CONTENT QUALITY

[]Fig. 1 Research model

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[]35

[]Determinant of Satisfaction in E-learning Usage …

[]371

[]4 Methodology 4.1

[]Sample

[]The participants in this study were 427 students of a Universiti Malaysia Pahang and Universiti Teknologi Mara Pahang that use e-learning platforms provided by their universities. However, invalid questionnaires were excluded due to empty fields, giving a final sample size of 416 students This empirical research is based on a non-probabilistic and self-selection sampling method, therefore it is a convenience sample.

[]4.2

[]Instrument Development

[]Most of the constructs used in the study were borrowed or modified from existing scales (Bhattacherjee 2001; Tella 2011) in the literature. All the items were measured using 5 point Likert-type scale ranging from 1 (Strongly Disagree) to 5 (Strongly Agree). The instrument for measuring satisfaction was modified from Bhattacherjee (2001). System quality was assessed on seven item scale utilized from Delone and McLean (2003) and course content quality was measured using six item scale modified from Tella (2011). Some terms were changed to fit the context of the study. To verify the adapted survey items, individual meetings were held with students during the pilot study to discuss the appropriateness of the questionnaire items and the possibility of ambiguity in the questionnaire items. Based on positive feedback received, the questionnaire was further retained.

[]4.3

[]Data Analysis

[]The proposed models and hypothesis testing is conducted using statistical package for the social sciences (SPSS 19). Descriptive statistics (e.g., frequencies, means and standard deviations) were computed for all item scores. Cronbach’s alpha was used to measure internal consistency of each scale in the survey. Multiple regression analyses were used to determine the relationship between satisfaction to use e-learning and the model constructs (system quality, service quality and course content quality). A P value of 0.05). While for helpfulness in learning the Chinese language, the difference in perception is significant (t = 2.442, the value of sig. = 0.015 < 0.05). This implies that the diploma respondents found that in learning new vocabulary in Chinese fantasy novel can assist them more in learning the Chinese language in comparison with the Bachelor respondents (Table 7). As a summary, the results of the findings are positive. It has been shown that the learning materials with new vocabulary in Chinese fantasy novel can be used as additional material in acquiring new vocabulary.

[]5 Discussion and Suggestions The findings have shown that the students are willing and able to accept new vocabulary in Chinese fantasy novel as learning supporting materials. Although the diploma respondents show a higher level of readiness compared with Bachelor respondents, it is in line with the view of Hu (2010) that, various teaching materials

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[]B.C. Meng and G.Y. Soon

[]can be used as learning materials to support the acquisition of Chinese new vocabulary and the expansion of Chinese vocabulary in the learning process. A few suggestions are also presented as a measure of improvement in the use of Chinese fantasy novel in preparing learning materials for new vocabulary acquisition. These include improving the interest of Bachelor degree students in the use of diverse learning materials in the process of learning Chinese as a foreign language. In addition, the instructor is also able to use the pinyin text to speech system to increase student’s interest in the process of expanding their vocabulary (Goh et al. 2013). For example, the students can learn to make sentences using vocabulary that has learned, and try listening to the pronunciations of these sentences that have been made in the pinyin text to speech system at http://terengganu1.uitm.edu. my/mandarin/. With these they will be more confident to use the new vocabulary in the Chinese fantasy novel, which they have learned in their daily life for communication. In addition, the effectiveness of the learning materials should be evaluated in terms of its usefulness (Norlina et al. 2013). With this, as improvements of this study, a quantitative study on the usefulness of these learning materials can be done as a measure of strengthening the teaching materials.

[]6 Conclusion The purpose of this paper is to discuss on Malay students’ awareness of learning new vocabulary in Chinese fantasy novel. Indeed, there is a variety of teaching materials that can be used in support to the process of learning the new Chinese vocabulary. Efforts to integrate the new vocabulary of the Chinese fantasy novel for vocabulary expansion among the non-native Chinese students should be encouraged to diversify the teaching methods of Chinese as a foreign language. Acknowledgment This article is part of our study under RAGS (Research Acculturation Grant Scheme) research project scheme. It is under the sponsorship of the RMI (Research Management Institute), UiTM, Shah Alam, Malaysia. We convey our thanks for their support.

[]References Bloom, B. S. (1956). Taxonomy of educational objectives, handbook I: The cognitive domain. New York: David McKay Co Inc. Bok, Z. M., & Goh, Y. S. (2014). Vocabulary teaching in cognitive approach of Chinese fantasy novel: Dick And Carey’s Model. In Proceedings of 3rd ILANNS: Issues in Language Teaching and Learning amongst Non-native Speakers—Enhancing Language Performance, The Concorde Hotel, Shah Alam Malaysia, February 18 and 19, 2014. Chen, W. H. (2006). Research on the cognitive psychology for second language vocabulary acquisition (中国学习者二语词汇习得认知心理研究). China: Huadong Normal University.

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[]Dick, W., & Carey, L. (1996). The systematic design of instruction (4th ed.). New York, NY: Harper Collin. Fang, B. P. (方菶泙). (2011). Chinese fantasy novel in the university campus (大学校园题材网络 小说). Journal of Feitian (飞天), Issue 14, 2011年14期. Gai, B. (盖博). (2006). Analysis of popular trend of Chinese fantasy novel (中国玄幻小说热潮现 象的多元解析). Journal of Scientific Publication (出版科学), Issue 5 (2006年05期). Goh, Y. S. (2010a). IQ Chinese reader for chinese characters reading (a review) [IQ Chinese Reader: 打开中文阅读之窗]. Electronic Journal of Foreign Language Teaching, 7(2), 257– 262. (Centre for Language Studies, National University of Singapore). Goh, Y. S. (2010b). Personalizing IQ Chinese reader in assisting struggling learners in the acquisition of reading skill among non-Chinese learners for the teaching of chinese as a foreign language. In Global Conference on Learning and Technology (p. 27763). Penang: AACE (Association for the Advancement of Computing in Education). Goh, Y. S. (2013). Using Gagné’s instructional events to supplement speaking and listening instruction for teaching of chinese as a foreign language. The Journal of Modernization of Chinese Language Education, 2(1), 17–25. Beijing: Association for Modernization of Chinese Language Education. Goh, Y. S., & Saiful, N. W. (2013a). Malay-Mandarin dictionary (SMMD): Support vocabulary acquisition in teaching Chinese as a foreign language (p. 5). Language Bulletin, Issue Jan-Mac. UiTM (Terengganu): Academy of Language Studies. Goh, Y. S. & Saiful, N. W. (2013b). Penggunaan kamus bahasa melayu ke bahasa cina dalam penambahan kosa kata bahasa cina. Academia Journal, 2(1), 8–14. Goh, Y. S., Saiful, N. W., Aileen Farida, M. A., & Mohd Suhaimi, S. (2013). Pinyin to speech system fostering Chinese speaking skill among non-native speakers of Chinese as a foreign language. Jurnal E-acedemia UiTM (Terengganu), 2(2), 52–60. Goh, Y. S., Saiful, N. W., Hasiah, N., & Norlina, S. M. (2012). Instructional Technology design of smart Malay-Mandarin dictionary (SMMD) to support vocabulary acquisition in teaching Chinese as a foreign language. In N. Alias & S. Hashim (Eds.), Instructional technology research, design and development: Lessons from the field (pp. 256–269). New York: IGI-Global. doi:10.4018/978-1-61350-198-6.ch016 Hu, R. (胡瑞). (2010). Vocabulary teaching in TCFL (对外汉语教学中的词汇教学). Journal of Literature Education, 文学教育(中), Issue 01, 2010 年01期. Lee, H. M., & Wang, J. (2013). Second language learning motivation perspective (二语学习动机 研究的动态系统论视角). Journal of Huaihai Institute of Technology (Humanities & Social Sciences Edition) (淮海工学院学报(人文社会科学版)), 10(1), 19–31. Li, S. M. (李双梅). (2009). Discourse on the vocabulary teaching for Chinese as a foreign language. (试论对外汉语词汇教学). Journal of Heilongjiang (黑龙江史志), Issue 16, 2009 年16期. Long. B. (龙滨). (2011). Cultural introduction in vocabulary teaching of Chinese as a foreign language. (对外汉语词汇教学中的文化导入). Changchun Industry University (长春工业大 学). Ma, J. X. (马菊香). (2011). Thoughts on the current college students’ enthusiasm for fantasy novels (对当前大学生热衷玄幻小说的思考). Journal of Shihezi University, Social Science Edition (石河子大学学报, 哲学社会科学版), Issue S1, 2011年S1期. Norlina, M. S., Hasiah, M., Goh, Y. S., &Yau’Mee H. M. Y. (2013). A quantitative approach in the usability evaluation of a courseware. JNIT: Journal of Next Generation Information Technology, 4(2), 29–38. Song, S. F. (宋守富). (2011). The YY of Chinese web-based novel (网络小说的YY). Journal of Anhui Literature (安徽文学) (下半月), Issue 6, 2011年06期. Tang, H. P., & Jiang, M. (覃红波 & 姜萌). (2011). Exploring the culture introduction of vocabulary teaching in college foreign language classroom (高校外语课堂词汇教学中的文 化导入初探). Journal of Huajing (华竞), Issue 12, 2011年12期. Teng, W. (滕巍). (2011). Research and critics of China fantasy novels (中国玄幻文学研究十年 述评). Journal of Chongqin Sanxia College (重庆三峡学院学报), Issue 01, 2011年01期.

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[]Yan, C. (2013). Affective differences among second language learners (试论二语学习者个体情 感差异及其习性倾向). In Proceedings of the 4th International Conference on Engineering and Business Management, Shanghai, China (pp. 1046–1058). Yu, J. (俞静). (2011). Discourse on vocabulary teaching in TCFL (论对外汉语教学中的词汇教 学). Journal of Literature Education, 文学教育(下), Issue 08, 2011年08期. Zhang, L. (张翎). (2008). Foreign Language Vocabulary Teaching from the Perspective of Cross-cultural Study. (从跨文化的角度探讨对外汉语词汇教学). Shanghai Foreign Language University (上海外国语大学). Zhang, B., & Li, C. Y. (2011). Classification of L2 vocabulary learning strategies: Evidence from exploratory and confirmatory factor analyses. RELC Journal, 42(2), 141–154. Zhu, H. (朱华). (2009). Introduction of culture in Chinese vocabulary teaching (对外汉语词汇教 学的文化性和导入). Journal of Yichun College (宜春学院学报), Issue 03, 2009年03期.

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[]Chapter 38

[]Fostering Unity and Improving Creativity—New Experiences in the Culturally Responsive Visual Art Education Siti Zuraida Maaruf, Saedah Siraj and Voviana Zulkifli

[]Abstract Culturally responsive pedagogy is developed based on cultural knowledge, the experiences of students from multi-ethnicity, their references and performance in learning. The present research utilizes the Design and Develop method as suggested by Richey and Klein (2007) focusing on the processes of developing a module which is appropriate in the teaching of Visual Arts Education at upper secondary level. The respondents consist of 60 upper secondary students of Malay, Indian, and Chinese ethnicity involved in the implementation process. Results show positive responses from students and their strong optimist perceptions towards Culturally Responsive Traditional Art crafts in Visual Arts Education in Secondary School. Therefore, results obtained proved that there is a need for developing a teaching module that is culturally responsive in teaching and learning of traditional art crafts in Visual Arts Education.

[]Keywords New experience Foster unity responsive Visual art education

[]Improve creativity

[]Culturally

[]1 Introduction The importance of tolerance and unity is becoming central in educational plan and curriculum especially in countries like Malaysia which is made up of multi-ethnicities. As ethnic diversity increases, education in Malaysia introduces students to the significance of cultural heritage in the process of instilling values or educational socialism (Tang 2006). It is essential that a curriculum design or plan identifies the curriculum foundation by weighing in the whole progress plan to S.Z. Maaruf (&) Univesiti Teknologi MARA (UiTM), Shah Alam, Selangor, Malaysia e-mail: [email protected] S. Siraj V. Zulkifli University Malaya, Kuala Lumpur, Malaysia © Springer Science+Business Media Singapore 2016 M.A. Abdullah et al. (eds.), Regional Conference on Science, Technology and Social Sciences (RCSTSS 2014), DOI 10.1007/978-981-10-1458-1_38

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[]attain the ideal educational socialism (Siraj 2008). Consequently, the curriculum dynamics should be able to propagate students’ potentials in the intellectual, physical, spiritual, and social aspects in the hope that students would be able to maximize their potentials to become skilled and trained citizens for national development. Banks and Banks (2010) introduced the Human Relation Approach which may minimize the gap between cultures in pursuit of similarities among individuals. This approach is promising because it utilizes feedback from students with regard to cultures, ethnicities, disabilities, gender, and social class by identifying students with stereotype characteristics. A pedagogical module that addresses these characteristics is therefore favorable to bridge understanding among the different groups of students.

[]2 Literature Review Khader (2012) suggested that the government is considered as the body which holds the responsibility to develop and uphold an education system that would indisputably foster unity in its diverse citizens without eluding their originality and unique qualities. It is also essential that such education system and curriculum provide the environment for positive interaction in the educational setting. In this context, the curriculum for Visual Art education in Malaysian needs a revamp that is more multicultural and oriented to remain relevant with contemporary conditions. This is in keeping with the proposal by Bates (2000) that art education should be multicultural in nature and encompass all segments of society. Nevertheless, a curriculum need not be created to cater to every ethnic group and a curriculum also need not be concentrated on a majority ethnic group either. Ibrahim and Hassan (2003) also stated that the diversity of culture should be given due consideration as the main objective in Art Education. It can be safely concluded that art is not necessarily confined to a particular race or community alone. This is because art education should serve as the main bridge that enables us to know, to learn, to comprehend and consequently to appreciate the culture belonging to the entire Malaysian society specifically and the global community generally in accordance with how multicultural art is defined. Visual Art Education is a subject found in the education system curriculum in Malaysia that is introduced as early as at the pre-school level to the secondary school level. Visual Art Education is an area of art that focuses solely on visual art and does not include other art forms such as music, dance, and martial art as outlined in the Secondary School Education Syllabus (Description of Visual Art Education Syllabus 2002). The Visual Art Education curriculum covers visual communication, design industry and traditional craft. Visual Art Education incorporates the process of creating artworks from the perspective of understanding and a high degree of critique on esthetic values and individual creativity. This subject combines theory and practice to assist students to become more creative, more aware, and more sensitive of their environment. Referring to the existing Malaysia Description of

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[]Visual Art Education Syllabus (2002), particularly the craft component, it focuses on the handicraft of the Malay society and those of ethnic natives only. Therefore, in the name of equality, it is most appropriate to provide the same opportunity to every individual student to learn and to explore the diversity of crafts. For instance, a Chinese student may learn to understand and thereby respects the artistic value found in the handicrafts of the Malay and Indian communities, and vice versa. If the curriculum is centered on a particular dominant ethnicity only, it will be more difficult for the efforts promoting integration, sensitivity and tolerance among multi-ethnic students to be realized. This will also contribute to the difficulty in the process of knowledge sharing relating to the similarities in the element of art in a diverse culture as aspired by the Malaysia National Education Philosophy.

[]3 Objectives of the Study The objective of the study is to investigate students’ perceptions on the usefulness of culturally responsive pedagogical module for traditional craft in Visual Art Education in secondary schools.

[]4 Methodology Students’ responses are qualitatively analyzed by analyzing the open-ended questions included in a set of Usability Test adapted from Toh (1998) and Harrini (2012). Responses from 60 students who participated in the learning process based on the culturally responsive pedagogical module for traditional craft in Visual Art Education for secondary schools are discussed in the analysis of the research findings. The research will investigate the advantages and barriers faced by students when applying the culturally responsive pedagogical module for traditional craft in Visual Art Education for secondary schools.

[]5 Findings The first analysis examined the suitability of the culturally responsive pedagogical module for traditional craft in Visual Art Education for secondary schools as per students’ assessment. The results are tabulated in Table 1 that leads to the distinguishing of five themes from the results obtained which are: i. instilling awareness and interest in students ii. increasing knowledge and new experience

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[]Table 1 Suitability of the culturally responsive pedagogical module for traditional craft in Visual Art Education for secondary schools as per students’ assessment To instil awareness and interest in students To increase knowledge and new experience To improve skills and creativity To foster unity Two-way communication

[]Frequency

[]Percentage

[]7 29 15 8 1

[]11.7 48.3 25.0 13.3 1.7

[]iii. enhancing skills and creativity iv. fostering unity v. two-way communication Generally, all students agreed that the culturally responsive pedagogical module for traditional craft in Visual Art Education for secondary schools is suitable to be integrated into the existing Visual Art Education curriculum. Relying on the analysis of the answers to the open-ended questions submitted to all the 60 students involved in the learning process based on the culturally responsive pedagogical module for traditional craft in Visual Art Education for secondary schools and the presentation of the interactive multimedia teaching material via questionnaire on the evaluation of the usefulness of the module, the researcher has distinguished five main themes on the suitability of the culturally responsive pedagogical module for traditional craft in Visual Art Education for secondary schools according to students’ evaluation. Secondly, the analysis looks at the strengths and advantages of the culturally responsive pedagogical module for traditional crafts in Visual Art Education for secondary schools and the presentation of the interactive multimedia teaching material as demonstrated in Table 2. Conclusively, the students gave positive feedback on the strengths and advantages of the culturally responsive pedagogical module for traditional craft in Visual Art Education for secondary schools. The secondary school students also provided positive feedback about the presentation of the interactive multimedia teaching material. From the students’ assessment of the

[]Table 2 The strengths and advantages of the culturally responsive pedagogical module for traditional crafts in Visual Art Education for secondary schools and the presentation of the interactive multimedia teaching material Theme

[]Frequency

[]Percentage

[]Improving knowledge and enhancing skills Application of good values Attractive and EASY to follow Dedicated teachers Tolerance and communication Module and BBM facilitate P&P process Respect toward other cultures

[]20 5 11 5 6 6 7

[]33.3 8.3 18.3 8.3 10.0 10.0 11.7

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[]usefulness of the module, the researcher identified seven main themes with regard to the suitability of the culturally responsive pedagogical module for traditional craft in Visual Art Education for secondary schools. Following are the seven themes: i. ii. iii. iv. v. vi.

[]increase knowledge and enhance skills application of good values attract interest and easy to follow dedicated teachers tolerance and communication the module and teaching and learning materials facilitate the teaching and learning process vii. respecting other cultures. The analysis then looks at the weaknesses and disadvantages of the culturally responsive pedagogical module for traditional craft in Visual Art Education for secondary schools and the presentation of the interactive multimedia teaching material. The analysis is provided in Table 3. Generally, all the students provided very positive suggestions toward improving the Culturally Responsive Pedagogical Module for Traditional Craft in Visual Art Education for secondary schools as well as the presentation of the interactive multimedia teaching materials. Using the analysis of the responses to the open-ended questions from the 60 students involved, the researcher have distinguished five main themes pertaining to the suitability of a Culturally Responsive Pedagogical Module for Traditional Craft in Visual Art Education for secondary schools as indicated by the students’ assessment. Below are the said five themes: i. the module is very suitable to be integrated into the current Visual Art Education curriculum ii. the quality of the video and audio need to be upgraded iii. produce a new dimensional craft iv. increase the elements of traditional crafts from various races v. increase the length of the teaching and learning time.

[]Table 3 The weaknesses and disadvantages of the culturally responsive pedagogical module for traditional craft in Visual Art Education for secondary schools and the presentation of the interactive multimedia teaching material Difficulty to produce craft Poor audio system Lengthy video Time constraints Suitability of place No weaknesses

[]Frequency

[]Percentage

[]24 15 10 4 6 1

[]40.0 25.0 16.7 6.7 10.0 1.7

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[]6 Conclusion The 60 students who participated in the learning process based on the module that was developed showed that almost all the students had given highly positive responses toward the module contents for the evaluation of its usefulness. The research findings also demonstrated that a majority of the students had given excellent perceptions toward the ease of using the module for the evaluation of the module’s usefulness. The research findings also indicated that the module has high potential to be incorporated into the current curriculum as it is a new pedagogical approach that is responsive to multicultural education. The findings of this research also support the research findings of da Silva and Lopes Villas-Boas (2006) who found that the use of art-based education from different cultures promoted the development of a healthy attitude among students toward cultures different from theirs. Additionally, teachers and students felt that the existence of this module enables improvement toward the existing Visual Art Education curriculum to be carried out and that it introduces a new approach for the application of good values across the curriculum. Active participation which works involving communication between the teacher and students and among peers provides a platform for active learning which according to Ahmad et al. (2013) becomes the bridge for racial unity in the Malaysian classroom. The research findings have also distinguished the strengths and weaknesses of a culturally responsive pedagogical module for traditional craft in Visual Art Education for secondary schools. Among the opinions offered by the students was that the culturally responsive pedagogical module for traditional craft in Visual Art Education for secondary schools managed to arouse the interest of students to enquire and to learn a multicultural element of crafts and that it was easy to follow. Hence, Ahmad et al. (2013) in their findings reported that unity may be infused when teachers vary their teaching methods and techniques. In line with the research conducted by Erwin et al. (1996) discovered that students were able to understand, to have interest and to get inspiration from their observation of the production of art craft from other cultures. Observation on the creation of craft work and their attempts to produce their own handicraft gave the students concerned inspiration in respect of originality of ideas, creativity of designs and satisfaction in the fine workmanship for these students to produce their own craft works. Therefore, to achieve unity and fostering unity in the culturally responsive Visual Arts classroom, it is timely to consider the suggestion provided by Malakolunthu (2011) that emphasis must be given to several aspects in education such as teachers’ professional development, curriculum development, pedagogy strategies, teaching and learning materials, and assessment methods.

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[]References Ahmad, A. R., Rahim, A., & Seman, A. A. (2013). Active learning through history subject towards racial unity in Malaysia. The Social Sciences, 8(1), 19–24. Banks, J., & Banks, C. A. M. (2010). Multicultural education: Issues and perspectives (7 ed.). New York: Wiley. Bates, J. K. (2000). Becoming Art Teacher. Wadsworth: Australia. da Silva, J. P., & Lopes Villas-Boas, M. A. (2006). Promoting intercultural education through art education. Intercultural Education, 1(1), 95–103. Erwin, B., Hopper P. S., Kauffman, M. (1996). Integrating Art and Literature Through Multicultural Studies: Focusing on Native American Sioux Culture. Reading Horizons, 36(5), 419–440. Harrinni, M. N. (2012). The effects of visual thinking courseware on critical thinking and art criticism skills in art and design education. Pulau Pinang: Tesis Ijazah Doktor Falsafah yang tidak diterbitkan, Universiti Sains Malaysia. Ibrahim, N., & Hassan, I. (2003). Pendidikan Seni Untuk Maktab & Universiti, Pahang: PTS Publication & Distributors Sdn. Bhd. Khader, F. R. (2012). The Malaysian experience in developing national identity, multicultural tolerance and understanding through teaching curricula: Lessons learned and possible applications in the Jordanian context. International Journal of Humanities and Social Science, 2(1), 270–288. Malakolunthu, S. (2011). Multicultural Education as a reform initiative: Alignment of critical domain. Journal of Education, 3(1). http://journal.uny.ac.id/index.php/joe/article/view/486. Richey, R. C., & Klein, J. D. (2007). Design and development research: method, strategies, and issues. London: Erlbaum. Siraj, S. (2008). Kurikulum Masa Depan. Kuala Lumpur: Penerbitan Universiti Malaya. Tang, C. H. (2006). Faktor-Faktor Yang Mempengaruhi Perlakuan Buli Di Sekolah Menengah Kebangsaan Skudai Di Sekitar Skudai, Johor Bahru. Satu Kajian Kes. Laporan Tesis Yang Tidak Diterbitkan. Fakulti Pendidikan, Univesiti Teknologi Malaysia. Toh, S. C. (1998). Couseware evaluation form. Centre for Instructional Technology and Multimedia, Penang: Pulau Pinang. Visual Art Education Syllabus (2002). Huraian Sukatan Pelajaran Pendidikan Seni Visual KBSM. Kuala Lumpur: Pusat Perkembangan Kurikulum, Kementerian Pendidikan Malaysia.

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[]Chapter 39

[]Cloud-Based Mobile Learning Adaptation in Nonformal Learning: A Review Mohd Norafizal Abd Aziz, Rafidah Md Noor and Norazlina Khamis

[]Abstract The concept of learning using mobile and cloud is the latest technology which supports the development and implementation of learning. Even though the concept is still new, it has potential that will provide an impact to the learning environment such as nonformal learning setting. With later aim, this paper presents a review on the background of cloud-based mobile learning that consists of mobile learning and cloud computing technology, nonformal setting. It then discussed the issues and challenges on the adaptation with three identified factors: (1) cloud learning devices, (2) cloud learning services, (3) cloud learning environment. The rest of the paper will points out promising future research direction and conclusion. Keywords Cloud computing ing Adaptation

[]Mobile learning (m-learning) Nonformal learn-

[]1 Introduction Development of mobile and cloud-based technology is growing in many areas for example, education, business, health, etc. In learning for instances, the use of mobile technology will benefits learners effectively. With the current concept of

[]M.N.A. Aziz (&) R.M. Noor Faculty of Computer Science and Information Technology, University of Malaya, Kuala Lumpur, Malaysia e-mail: azizafi[email protected] R.M. Noor e-mail: fi[email protected] N. Khamis Faculty of Computing and Informatics, University Malaysia Sabah, Kota Kinabalu, Sabah, Malaysia e-mail: [email protected] © Springer Science+Business Media Singapore 2016 M.A. Abdullah et al. (eds.), Regional Conference on Science, Technology and Social Sciences (RCSTSS 2014), DOI 10.1007/978-981-10-1458-1_39

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[]“bring your own devices” (BOYD), learners’ will determine their learning independently, anytime and anywhere. Also, with the capabilities of mobile devices, learners’ will access appropriate information, store important learning files, accessing universities portal information efficiently. Hence, this will give great potential of the learning institutions to provide advance learning support services to the learners by using cloud technologies. Cloud computing (CC) concept is capable to support the process of learning and provide a new dimension and philosophy to learning environment and implementation. Such new dimensions include benefits provided by the cloud services as a powerful learning support instrument that will provide more opportunities to the continuous and seamless learning (Butoi et al. 2013). National Institute of Standard and Technology (NIST) define CC as resource pool consists of network, servers, storage, applications, and services which can be used by the end user with minimum effort on operational and interaction (Mell and Grance 2013). Additionally, current cloud providers provide free services with specific allocation of data storage. This capability will allow advantages to the implementation of learning with cloud and mobile technology. However, with the challenges and issues exist in the implementation, there is a potential limitation of mobile devices and cloud services that may be failed to support learning process hence it will affect the overall performance of the learning and to the learners. Therefore, with these limitations on both components of the technologies, it may give impact to the adaptation of the technologies use in the nonformal learning environment. In general, the implementation of nonformal learning is totally dependent to the technology by the learners. Therefore, this paper will review such impacts on the challenges and issues regarding the adaptation. The review focusing on three factors includes cloud services, environment, and devices. This review will be referring to the current research work on the research domain. This paper is organized as follow: Section two discusses the background of cloud computing, nonformal learning, mobile learning that include concepts and principles. Section three reviews the cloud-based mobile learning technologies that include the concepts and principles and further discuss issues and challenges with open research issues that are related to the adaptation on nonformal learning. Finally, section four concludes the discussion.

[]2 Background Development and implementation of mobile and cloud-based learning although relatively new, the concept had began to be discussed as early in the year 2011. The following section provides the discussion on the nonformal learning, mobile learning, cloud computing, and the cloud-based mobile learning.

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[]Nonformal Learning

[]Cedefop (2000) define the nonformal learning as learning embedded in planned activities that are not explicitly designated as learning. European commission (EC) define the nonformal learning as learning that is not provided by an education or training institution and typically does not lead to certification (European Commission 2001). Table 1 shows the differences between nonformal learning with formal and informal regarding the learning context. Therefore, the definition of nonformal learning will be used in this paper are stated as organized, structured as intentional from the learner’s view. Current learning practices in most Higher Education institution include formal and nonformal learning with face-to-face (F2F) and non-face-to-face (NF2F) session, respectively. For example, in Malaysia education system implement the allocation of F2F and NF2F in the calculation of student learning time (SLT). The calculation of SLT with total credit is multiplies with 40 national hours. In most implementation, the overall total SLT with NF2F session contributed higher percentage with more than 65 % of the total SLT calculated (Malaysian Qualification Agency 2011). Thus, the implementations of the nonformal learning with the support use of technologies such as mobile, cloud, and others based on the implementation shows the great potential and significant that need to be discover further in various aspects of factors include impact, overall quality, satisfaction, and others.

[]2.2

[]Mobile Learning

[]Transformation of electronic learning has changed with mobile technology support. With the mobile capabilities allow learners to access learning resources with the use of the mobile technology. Therefore, the previous research has discussed the important of this mobile technology toward electronic learning implementation. According to Ally (2009) defined mobile learning as state of learning associated with the use of mobile, accessing learning content through the use of mobile devices. Although mMobile learning definitions have been provided from different aspects, they share the same idea, i.e., the mobile devices (such as personal digital assistants, cellular phones, and tablets) play an important role in the learning activities no matter whether the activities are conducted in the field or in the classroom (Vavoula et al. 2009). Therefore, a commonly accepted definition of

[]Table 1 Learning context (Wenquin 2010)

[]Formal

[]Nonformal

[]Informal

[]Intentional Structured Controlled

[]Intentional Structured –

[]Nonintentional – –

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[]Fig. 1 The framework of mobile learning (Koole 2009)

[]mobile learning to be used in this paper stated that mobile learning is using mobile technologies to facilitate and promote learning anywhere and at anytime’ (Shih et al. 2010). Mobile learning development involved mobile and learning aspects. The learning contents can be access through mobile devices by the learners. Koole (2009) introduced the Koole’s FRAME model on mobile learning framework that comprising learner aspect, device, aspect and social aspect as shown in Fig. 1. Koole’s FRAME also provides subcriteria that include aspects of devices usability, social technology and interaction technology. Mobile Learning research trends include various aspects of research work. According to review by Hwang and Tsai (2011), this research field grew at a fast pace from 2008. The research main focused on the investigation of motivations, perceptions and attitudes of student toward mobile learning. Regarding the contributing countries that actively involved in mobile learning research has shown Taiwan is actively involved with the initiation of the mobile learning project. However, there is no studies involve any learning domain given (Embi et al. 2013).

[]2.3

[]Cloud Computing

[]Cloud computing has become a popular phrase since 2007 until today. National Institute of Standards and Technology (NIST), defined CC as a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services)

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[]Table 2 Service and deployment model of cloud computing (Mell and Grance 2013) Services model Software as a service (SaaS) The capability provided to the consumer is to use the provider’s applications running on a cloud infrastructure. The applications are accessible from various client devices through either a thin client interface, such as a web browser (e.g., web-based email) or a program interface Platform as a service (PaaS) The capability provided to the consumer is to deploy onto the cloud infrastructure consumer-created or acquired applications created using programming languages, libraries, services, and tools supported by the provider Infrastructure as a service (IaaS) The capability provided to the consumer is to provision processing, storage, networks, and other fundamental computing resources where the consumer is able to deploy and run arbitrary software, which can include operating systems and applications. For all components describe, the user does not have access to control the components only from some aspects have the particular authorized control in the aspect of PaaS and IaaS as stated in the definition of the standard Deployment model Public cloud Private cloud Hybrid cloud Community cloud The cloud infrastructure that open and can be use as general by the public

[]The cloud infrastructure that restricted access to a single organization comprising multiple consumers

[]The cloud infrastructure that composition of two or more cloud infrastructure (Public; Private and Community) that bounded together strict to a certain procedure and policies

[]The cloud infrastructure that use by the specific community of consumers from the organizations that have share concerns

[]that can be rapidly provisioned and released with minimal management effort or service provider interaction (Mell and Grance 2013). The characteristics of CC consist of on-demand self-services, broad network access, resource pooling, rapid elasticity, and measured service. To discuss the function of CC, comprise of services model and deployment model as detail shown in Table 2. Figure 2a describes the framework of CC while Fig. 2b present the architecture of CC that comprises the services and deployment model of Cloud Computing.

[]3 Cloud-Based Mobile Learning Cloud-based mobile learning technology is a combination of mobile learning, support by the cloud-based that learning resources are available in the cloud. The inheritance of CC and mobile learning technology, provide a new learning

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[](a)

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[](b)

[]Resource Pool Computing Storage Network Virtualization

[]PaaS

[]Parallel Programming Environment Structured Data Management Distributed File System Other System Management Tools

[]IaaS

[]Core Middle ware

[]Various Software Service

[]Sa S

[]Client & Agent

[]Physical Hardware server & storage

[]Fig. 2 a Architecture of cloud computing (Qi and Gani 2012). b Framework of cloud computing (Qi and Gani 2012)

[]Fig. 3 a The architecture of cloud-based mobile learning (Khan et al. 2012). b The concept of cloud-based mobile learning (Hirsch and Ng 2011)

[]technology that enhanced learning process entirely. One of the benefits of cloud-based mobile learning technologies, it will obstacles issues on the performance, such as battery life, storage, and bandwidth and the environment that include heterogeneity, scalability, and availability and finally the security aspects (Dinh et al. 2011). For the benefits to the learners, using these technologies to support learning will provide benefits on the sharing the knowledge and learning resources as a centralized sharing and it can be access in anyplace and at anytime by the learners (Rao et al. 2012; Wang et al. 2014). It also allows learners to access learning content such as text, audio, and video that is available in the cloud easel (Kitanov and Davcev 2012). The following diagram in Fig. 3a, b illustrated the architecture development of the cloud-based mobile learning.

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[]Cloud-Based Mobile Learning Adaptation in Nonformal Learning

[]Based on the review by the International Telecommunication Union (ITU) from the latest report on World Telecommunication/ICT Indicator Database 2014, reveal that the mobile users percentage has increased to 95.5 % that in line with the use of the Internet by the user that indicate 40.4 % increased compared to the previous study (ITU 2014). According to World Telecommunication/ICT Indicator Database 2014 by the International Telecommunication Union (ITU), conclude that mobile users percentage increased to 2.4 % from the 93.1 % recorded in 2013. While for Internet user percentage, it shows 6.1 % increment from the previous statistic with 37.9 % in 2013. Wang et al. (2014) indicated 80 % of the students using mobile and computer devices to support their learning in the university. Similarly, the need for mobile devices and Internet are important to be use in learning (Kennington et al. 2010). From the statistic findings, it shows that there is an important use of technology such as mobile and Internet with learning. Therefore, the adaptations between the cloud-based mobile learning with nonformal learning environment exist. With the adaptation opportunities, it will increase the ability of the student to learn independently. While considering the architecture of cloud-based mobile learning, adapting nonformal learning into cloud-based mobile learning may consider three factors; (a) cloud learning devices, (b) cloud learning services, (c) cloud learning environment (Arina 2011). Therefore, the discussion on issues and challenges will be discussing base on the selected research work as shown in Table 3.

[]Table 3 Current research work on cloud-based mobile learning Author(s), Year

[]Factors cloud learning services

[]Cloud learning devices

[]Cloud learning environment

[]Learning *FL

[]**NFL

[]Chen et al. (2010)

[]No

[]No

[]Yes

[]Yes

[]No

[]Elias (2011)

[]No

[]Yes

[]No

[]No

[]No

[]Hirsch and Ng (2011)

[]No

[]No

[]Yes

[]Yes

[]No

[]Chen et al. (2011)

[]Yes

[]No

[]No

[]No

[]No

[]Thomas (2011)

[]Yes

[]No

[]Yes

[]No

[]No

[]Abu El-Ala et al. (2012)

[]Yes

[]No

[]Yes

[]Yes

[]No

[]Chang et al. (2012)

[]Yes

[]No

[]Yes

[]No

[]No

[]Ickin et al. (2012)

[]No

[]Yes

[]No

[]No

[]No

[]Rao et al. (2012)

[]Yes

[]No

[]No

[]No

[]No

[]Butoi et al. (2013)

[]Yes

[]No

[]No

[]Yes

[]No

[]Benson and Morgan (2013)

[]No

[]Yes

[]Yes

[]No

[]No

[]Velev (2014)

[]Yes

[]Yes

[]Yes

[]No

[]No

[]*FL (formal learning), **NFL (Nonformal learning)

[][email protected]

[]410

[]3.1.1

[]M.N.A. Aziz et al.

[]Issues and Challenges on Cloud Learning Devices

[]In the adaptation of smart devices in cloud-based mobile learning technology, the user should consider the capabilities as the main factors that will success the adaptation. Elias (2011) states the issues on devices capabilities such as screen sizes with poor resolution; color, contrast and awkward text input may reflect the use of devices in nonformal learning environment. The dependent of devices by the learners are crucial at this implementation stage. Previous research has also investigated the factors that influencing user experiences on devices capabilities toward mobile applications (Ickin et al. 2012). That is including the issues on battery efficiency and devices features that may affect the user experiences. Battery efficiency will limit the phone usage while missing features on the devices such as lack of flash player will hinder the user experiences as well. Therefore, with those issues on learning devices bring the biggest challenges to the learners. They have to set the appropriate criteria that will benefit them in adapting nonformal learning with the use of mobile devices that may satisfy the learners learning as well as ensuring the success of the learning. Other limitations on the compatibility of learning applications that applicable with devices remain as another open issues (Educational Publishing 2012). The compatibility issues are remaining open due to the various operating systems that support different requirement of mobile devices. With the current implementation, the development of mobile application should determine the development in various platforms that will support the use of variety of mobile devices. Previous research has been conducted to investigate the compatibility issues by the learners (Blackboard 2012) and the comparison between mobile device and PC in the compatibility perspective (Ickin et al. 2012) and the findings are still not belongs to the mobile devices where the issues on compatibility is one the priority that need to be consider by the application developer in any mobile application development. With these issues exists, it may give such impact on the expectations regarding the performance by the user, which may resulted in high expectation but low in user experiences. Therefore, the device compatibility issues need to be improved in future, which will give impact indirectly to the adaptation of the cloud-based mobile learning in nonformal environment.

[]3.1.2

[]Issues and Challenges on Cloud Learning Services

[]Cloud learning services point out to the network services available that will support the learning. However, the most challenges that the previous researcher had point out is the possibilities of system failure that substantial decrease occur in the cloud environment since cloud is not only in one place (Velev 2014). In adaptation purpose, the availability of network and cloud services will become major issues that may effect the overall implementation. With total dependent of learners to the services available, it may or may not satisfy the learners.

[][email protected]

[]39

[]Cloud-Based Mobile Learning Adaptation in Nonformal Learning …

[]411

[]Cloud learning services factors include performances and speed of the cloud and network transmission. For example, the performance of 3G, 4G networks, and Wi-Fi services may differ on the availability and location of accessing the network. Therefore, issues on cloud and network availability may reflect the learners experience and the overall services satisfaction. From this point of view, the quality services (cloud and network speed, performance) and quality experiences (learners overall satisfaction) are vital to be discovered. As a value added from the quality services and experiences, it also can determine the overall performances and outcome of the learners in nonformal learning environment.

[]3.1.3

[]Issues and Challenges on Cloud Learning Environment

[]The main issues in adaptation the cloud-based mobile learning technology in nonformal learning setting referring to the implementation. The implementation comprises of adaptation rate, acceptance, perception survey, and impact on the learners performance and outcome. However, according to Teachthought (2012) on the cloud adaptation rate in education sectors, only 28 % of the survey colleges implementing the cloud with 6 % are maintaining the cloud services in education. Remain percentage are in the discovery, planning and not considering to adapt the cloud in education. While in acceptance and perception survey shows more than 80 % be able to accept and use mobile and cloud technology in learning (Embi et al. 2013). To conclude, there is a gap exist between the acceptances of the technology compare to the implementation of the technology. While, other aspects on learning content, location, storage of learning content, and organization of learning content and collaboration (Arina 2011) comprise various issues that need to be consider. Learning content and storage of the content in the cloud are mandatory by the learners. If there are difficulties on accessing the content and storage the learning content, it will reflect the overall learners’ performances and experience in adaptation of the technology in nonformal environment.

[]3.1.4

[]Open Research Issues and Challenges

[]Previous discussion on issues and challenges regarding adaptation of cloud-based Mobile learning and nonformal learning had given opportunities to enhance the exploration on this research area. The monitoring, investigation, and exploration can be penetrated into the future research direction to explore on the adaptation. Therefore, Table 4 below described the overall open research issues and challenges that need to be determine in the adaptation.

[][email protected]

[]Environment

[]• Investigate the devices capabilities and compatibility in nonformal learning • Investigate impact on the mobile application use in nonformal learning • Monitoring usage of cloud-based mobile learning in formal and nonformal learning, differences, impact • Learner acceptance toward cloud-based mobile learning in nonformal learning • Learners experience monitoring on using cloud-based mobile learning • Learner outcome evaluation on cloud-based mobile learning • Learner assessments impact on using cloud-based mobile learning, differences between assessments in formal learning

[]• Monitoring and tools that measure cloud performance in nonformal learning • Monitoring and tools that measure cloud speed in nonformal learning

[]• Cloud performances • Cloud speed • Capabilities • Compatibility • Implementation • Learning content • Learning locations • Learning applications

[]Services

[]Devices

[]Open research challenges

[]Open research issues

[]Cloud learning

[]Table 4 Further open research issues and challenges in details

[]412 M.N.A. Aziz et al.

[][email protected]

[]39

[]Cloud-Based Mobile Learning Adaptation in Nonformal Learning …

[]413

[]4 Conclusion The important technology of cloud computing, mobile learning environment will benefit learning implementation by the learners. Therefore, the adaptation of this technology with the nonformal learning environment will provide more opportunities in research that can discover positive findings and impacts on the implementation. Therefore, from the above review on the adaptation cloud-based mobile learning technology in nonformal learning regarding issues and challenges, there is an opportunity exist that will support the implementation of nonformal learning. The advantages of cloud computing and mobile learning will benefits the nonformal adaptation, however, further research regarding open issues on devices, environment, and services need to consider. The explanation given in this review will give future direction on the research adaptation of cloud-based Mobile Learning in nonformal learning.

[]References Abu El-Ala, N. S., Awad, W. A., & El-Bakry, H. M. (2012). Cloud computing for solving E-learning problems. International Journal of Advanced Computer Science and Applications, 3 (12), 135–137. Ally, M. (2009). Mobile learning: Transforming the delivery of education and training. [Online]: http://www.zakelijk.net/media/boeken/Mobile%20Learning.pdf. Accessed July 15, 2014. Arina, T. (2011). Cloud learning as universal primary education. [Online]: http://tarina.blogging. fi/2011/11/12/cloud-learning-as-universal-primary-education/. Accessed July 29, 2014. Benson, V., & Morgan, S. (2013). Student experience and ubiquitous learning in higher education: Impact of wireless and cloud applications. Creative Educations, 4(8A), 1–5. doi:10.4235/ce. 2013.48A001 Blackboard. (2012). Transforming the experience with blackboard mobile. [Online]: http://www. blackboard.com/Platforms/Mobile/Client-Stories/Client-Stories.aspx. Accessed July 15, 2014. Butoi, A., Tomai, N., & Mocean, L. (2013). Cloud-based mobile learning. Informatica Economica, 17(2), 27–39. doi:10.12948/issn14531305/17.2.2013.03. Cedefop. (2000). Glossary. In Making learning visible. Thessaloniki: Cedefop. Chang, C. S., Chen, T. S., & Hsu, H. L. (2012). The implications of learning cloud for education: From the perspectives of learners. In Proceeding of the 7th IEEE International Conference on Wireless, Mobile and Ubiquitous Technology in Education (pp. 157–161). Chen, S., Lin, M., & Zhang, H. (2011). Research of mobile learning system based on cloud computing. In Proceeding of the International Conference on e-Education, Entertainment and e-Management (pp. 121–123). Chen, X., Liu, J., Han, J., & Xu, H. (2010). Primary exploration of mobile learning mode under a cloud computing environment. In Proceeding of the International Conference on E-Health Networking, Digital Ecosystem and Technologies (pp. 484–487). Dinh, H. T., Lee, C., Niyato, D., & Wang, P. (2011). A survey of mobile cloud computing: Architecture, applications, and approaches. Wireless Communications and Mobile Computing, 1587–1611. Educational Publishing. (2012). 10 mobile learning trends for 2012. [Online]: http://aepweb.org/ aepweb/?p=1844&option=com_wordpress&Itemid=68. Accessed August 15, 2014. Elias, T. (2011). Universal instructional design principles for mobile learning. The International Review of Research In Open And Distance Learning, 12(2), 143–156.

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[]Embi, M. A., Nordin, N. A., & Panah, E. (2013). Mobile learning research initiatives in Malaysia. In M. A. Embi & N. M. Nordin (Eds.), Mobile learning: Malaysian initiatives & research findings (pp. 9–18). Malaysia: UKM. European Commission. (2001). Communication: making a European area of lifelong learning a reality. [Online]: http://www.europa.eu.int/comm/education/life/index.htm. Accessed August 15, 2014. Hirsch, B., & Ng, J. W. (2011). Education beyond the cloud: Anytime-anywhere learning in a smart campus environment. In Internet Technology and Secured Transactions (ICITST), 2011 International Conference (pp. 718–723). IEEE. Hwang, G. J, Tsai, C. C. (2011). Research trends in mobile and ubiquitous learning: A review of publications in selected journals from 2001 to 2010. British Journal of Educational Technology, 42(4), 65–70. doi:10.1111/j.1467-8535.2011.01183.x Ickin. S., Wac, K., Fiedler, M., Janowski, L., Hong, J. H., & Dey, A. K. (2012) Factors influencing quality of experience of commonly used mobile applications. In IEEE Communications Magazine, 50(4), 48–56. doi: 10.1109/MCOM.2012.6178833 ITU. (2014). Global ICT development 2001–2014. [Online]: http://www.itu.int/en/ITU-D/ Statistics/Pages/stat/default.aspx. Accessed August 11, 2014. Kennington, J., Olinick, E., & Rajan, D. (Eds.). (2010). Wireless network design: Optimization models and solution procedures. Berlin: Springer. Khan, A. N., Mat Kiah, M. L., Khan, S. U., & Madani, S. A. (2012). Towards secure mobile cloud computing: A survey. Future Generation Computer Systems, 29, 1278–1299. Kitanov, S., & Davcev, D. (2012). Mobile cloud computing environment as a support for mobile learning. In Cloud Computing 2012, The Third International Conference on cloud computing, GRIDs, and Virtualization (pp. 99–105). Koole, M. L. (2009). A model for framing mobile learning. Mobile Learning: Transforming the Delivery of Education and Training, 38. Malaysian Qualification Agency. (2011). Garis Panduan Amalan Baik: Reka bentuk dan Penyampaian Kurikulum. [Online]: http://www.mqa.gov.my/garispanduan/GGP%20CDD% 20BM%20(09012012).pdf. Accessed July 29, 2014. Mell, P., & Grance, T. (2013). The NIST definition of cloud computing—Recommendations of the National Institute of Standards and Technology. http://csrc.nist.gov/publications/nistpubs/800– 145/SP800-145.pdf. Accessed July 27, 2014. Qi, H., & Gani, A. (2012). Research on mobile cloud computing: Review, trend and perspectives. In Proceeding of the International Conference on Digital Information and Communication Technology and It’s Applications (DICTAP) (pp. 195–202). Rao, N. M., Sasidhar, C., & Kumar, V. S. (2012). Cloud computing through mobile-learning. [Online]: http://arxiv.org/pdf/1204.1594.pdf. Accessed July 29, 2014. Shih, J. L., Chuang, C. W., & Hwang, G. J. (2010). An inquiry based mobile learning approach to enhancing social science learning effectiveness. Educational Technology & Society, 13(4), 50–62. Teachthought. (2012). 4 benefits to cloud-based learning. [Online]: http://www.teachthought.com/ technology/4-benefits-to-cloud-based-learning/. Accessed July 15, 2014. Thomas, P. Y. (2011). Cloud computing a potential paradigm for practicing the scholarship of teaching and learning. The Electronic Library, 29(2), 214–224. doi:10.1108/02640471111125177 Vavoula, G., Sharples, M., Rudman, P., Meek, J., & Lonsdale, P. (2009). Myartspace: Design and evaluation of support for learning with multimedia phones between classrooms and museums. Computers & Education, 53(2), 286–299. Velev, D. G. (2014). Challenges and opportunities of cloud-based mobile learning. International Journal of Information and Education Technology, 4(1), 49–53. Wang, M., Chen, Y., & Khan, M. (2014). Mobile cloud learning for higher education: A case study of Moodle in the cloud. The International Review of Research in Open and Distributed Learning, 15(2). Retrieved from http://www.irrodl.org/index.php/irrodl/article/view/1676 Wenquin, P. (2010). Recognising non-formal and informal learning. [Online]: http://www.eucen. eu/sites/default/files/OECD_RNFIFL2010_Werquin.pdf. Accessed August 15, 2014.

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[]Chapter 40

[]Reading and Writing Connection in ESP Context: Students’ Performance and Perceptions Rosita Aminullah and Jun Nirlawati Mohd Sahidol

[]Abstract This study is aimed at investigating the connection between the reading and writing performances among Malaysian university English for Specific Purposes (ESP) students. The subjects of the study were students of English language from various faculties of Universiti Teknologi MARA Pahang. The data were taken from the students’ results in two reading comprehension tests and one writing test in the English for Academic Purposes final examination as well as the results from a structured interview conducted among the students who were currently taking the course. The findings of the study showed that there was a fairly strong positive connection between the students’ reading and writing performance. The findings of the interview revealed that students perceived reading and writing to be interconnected. Therefore, English language lecturers need to nurture greater success in the students’ reading and writing abilities. In this way, the connections between the two language proficiency skills can be exploited for the benefits of university ESP students. Keywords Reading–writing connection reading/writing EFL reading/writing

[]Reading–writing relationship

[]ESL

[]1 Introduction A great majority of university students find reading a vast amount of English reading materials to be a big problem. The problem intensifies when they need to read in order to generate ideas for their academic papers. Moreover, in the belief of helping students acquire abilities in reading and writing, curricula are usually R. Aminullah (&) J.N. Mohd Sahidol Academy of Language Studies, Universiti Teknologi MARA Pahang, Bandar Pusat Jengka, Pahang, Malaysia e-mail: [email protected] J.N. Mohd Sahidol e-mail: [email protected] © Springer Science+Business Media Singapore 2016 M.A. Abdullah et al. (eds.), Regional Conference on Science, Technology and Social Sciences (RCSTSS 2014), DOI 10.1007/978-981-10-1458-1_40

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[]designed separately to provide specific focus on both language skills. However, this division overlooks the interactive relationship between reading and writing and fails to see the contributions that the connection of reading and writing can make on students’ language acquisition (Tsai 2006) and performance. It is now a common consensus among educators and researchers that the students’ ability to write in L2 depends on their efficiency in reading. They feel that students need to be able to perform equally well in both reading and writing. Since the 1980s, a lot of studies had been conducted to study the connection between these two important language skills but very few studies were conducted in the ESP context and almost none that focused into reading and writing performance. Therefore, this study investigates the connection between students’ reading and writing performance in the English for Specific Purposes (ESP) context. Apart from that, students’ perceptions on reading and writing and the connection between the two language skills will also be looked upon.

[]2 Overview of Literature Studies on the connection between reading and writing have been made as early as the 1930s. Since then, many researchers have explored the relationship between these two important language skills, both in the first and second languages. Most of these studies revealed that reading is connected to writing. One of them, Stotsky (1983) found that better readers tended to be better writers and that better writers read more than poor writers, and better readers produced more syntactically mature writing than poor readers. In other words, reading and writing work in synergy (Tierney 1992). In the first language, reading–writing and writing–reading connections have shown a number of correlations: between reading achievement and writing ability, between writing quality and reading experience, between reading ability and complexity in writing (Carson 1994, as cited in Kavaliauskiene 2001). In the second language, Krashen’s (1984) argument that “it is reading that gives the writer the ‘feel’ for the look and texture” (as cited in Hirvela 2004) paves the way, leading writing researchers and instructors to the vision of reading/writing connection. Krashen claims that reading which builds the knowledge base of written texts, helps L2 learners acquire necessary language constructs such as grammatical structures and discourse rules for writing, and facilitates the process of language acquisition. It could be seen that Krashen’s viewpoints recognize the contributions that reading can make to writing (Tsai 2006). Apart from that, some of the recent researches in the ESL and EFL courses indicate that instruction on writing can have positive impact on reading comprehension skills (Graham and Herbert 2010; Fitzgerald and Shanahan 2000; Moats 2005/2006; Neville and Searls 1991).

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[]Reading and Writing Connection in ESP …

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[]Nevertheless, little research has been conducted on either reading-writing or writing-reading relationship in the ESP, and almost none that focus on students’ performance. Since Graham and Herbert (2010) claimed that “we know surprisingly little about the nature of this connection or the interactions between reading and writing with regard to the development and student achievement,” therefore, it is high time that the current research is conducted to find out the connection between these two important skills.

[]3 Methodology This study is aimed at investigating the connection between reading and writing in terms of performance and perceptions among university ESP students. The subjects of the study were 408 students taking the English for Academic Purposes course at UiTM Pahang (Social Sciences = 211 students, Science and Technology = 197 students). The data was obtained from the students’ reading comprehension and writing marks in their ‘English for Academic Purposes’(BEL311) final examination. They were required to read two reading passages with two related topics and answer the reading comprehension questions. Then, they were required to write an academic essay by using the information from the two given reading passages. They were to include in-text citations and references used. Therefore, the marks involved two reading comprehension tests and one writing test, which were utilized to provide indicators of their performance that could potentially reflect the connection between their reading and writing performance. The data was processed using Statistical Package for Social Sciences (SPSS) Version 20.0 for Windows and was analyzed using both the descriptive and inferential methods. Correlation, regression, and independent sample test were run to study the connection between reading and writing performance. Other than finding out the connection between reading and writing performance of the students; finding out the students’ perceptions on this relationship are equally importance. Thus, in order to find out the perceptions of students’ towards reading and writing, and subsequently find out the connection and relationship that reading and writing have, a structured interview was conducted. The following are the questions of the structured interview: i. ii. iii. iv. v.

[]What does a person have to do in order to be a good academic writer? How do you come up with ideas for writing your academic papers? What helps you the most to make your writing better? What does a person have to do to be a good reader? How does the ability to read help you to write academic papers?

[]A purposive sampling of 73 students taking the course ‘English for Academic Purposes’ (BEL 311) from the Faculty of Social Science and Faculty of Science &

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[]Technology of UiTM (Pahang) were chosen. The method of sampling was chosen due to its low cost and convenience. Apart from that, this type of sampling is useful in attitude and opinion surveys (Ary et al. 2010). They were interviewed two weeks before they sat for their final examination by their respective lecturers during class hours. The questions asked were related to their experience in writing their academic paper, during which they have to read extensively on the topic that they were to write. They were also required to provide in-text citations and references to support their views or ideas in their academic paper. Students began writing by preparing a detailed outline followed by the first draft and later the final draft. The students’ responses to the interview questions were analyzed using descriptive methods.

[]4 Findings The total marks for the reading and writing tests was 20 marks each. Therefore, equal marks were allotted for both tests. From the descriptive statistics in Table 1, it could be seen that the minimum marks acquired by the students for reading and writing are the same (reading = 5, writing = 5) and the maximum marks for reading and writing are also very close (reading = 17, writing = 16.5). In spite of that, reading has a higher mean (11.24) compared to writing (10.41). The standard deviations for both reading and writing are almost the same. The aim of this study is to investigate the connection between the ESP reading and writing performance among the students. Based on the results of the Pearson correlation analysis (refer to Table 2), it was found that the correlation coefficient was 0.544. The significance level of 0.000 was less than the 0.01 cut off, which Table 1 Descriptive Statistics Reading mark Writing mark Valid N (listwise)

[]N

[]Minimum

[]Maximum

[]Mean

[]Std deviation

[]408 408 408

[]5.00 5.00

[]17.00 16.50

[]11.2353 10.4142

[]2.30154 2.18599

[]Table 2 Correlations Reading mark

[]Pearson correlation Sig. (2-tailed) N Pearson correlation Writing mark Sig. (2-tailed) N **correlation is significant at 0.01 level (2-tailed)

[]Reading mark

[]Writing mark

[]1

[]0.544** 0.000 408 1

[]408 0.544** 0.000 408

[][email protected]

[]408

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[]means that there was a significant correlation. This is a fairly strong connection between the reading and writing performance. Based on the regression analysis, it was found that there was a fairly strong positive connection between reading and writing performance. This is proven by the value of R = 0.544 (refer to Table 3) and the significance level of 0.000 (refer to Table 4), which is less than 0.05 which means that the writing mark is a statistically significant predictor of the reading mark. The ANOVA in Table 4 shows that the significance level is 0.000. Therefore, reading mark can be predicted from the writing mark. Since there was a fairly strong correlation between the reading and the writing performance (R = 0.544, p = 0.000), it is possible to make predictions on the students’ marks by using the linear equation, y = a + (b)(x). Based on Table 5, writing mark has a regression coefficient of 0.57. Thus, as writing mark increases by one unit, reading mark increases by 0.57. The regression constant (a) is 5.27 and the regression coefficient (b) is 0.57. Therefore, if writing mark (x) is 13, the reading mark (y) would be 5.27 + 0.57(13), which is 12.68. Another example, if writing mark (x) is 14, the reading mark would be 5.27 + 0.57(14), which is 13.25. From the structured interview conducted, it was found that there was some connections between reading and writing. The results are shown in Table 6. Table 3 Model summaryb Model

[]R

[]R square

[]1 0.544a 0.296 a Predictors: (constant), writing mark b Dependent variable: reading mark

[]Adjusted R square

[]Std. error of the estimate

[]0.294

[]1.93344

[]Table 4 ANOVAa Model

[]Sum of squares

[]Regression 638.212 1 Residual 1517.699 Total 2155.912 a Dependent variable: reading mark b Predictors: (constant), writing mark

[]df

[]Mean square

[]F

[]Sig.

[]1 406 407

[]638.212 3.738

[]170.728

[]0.000b

[]Table 5 Regression Coefficients Model

[]Unstandardized coefficients B Std. error

[]1 (constant) Writing mark

[]5.270

[]0.466

[]0.573

[]0.044

[]Standardized coefficients Beta

[]0.544

[]t

[]Sig.

[]95.0 % confidence interval for B Lower Upper bound bound

[]11.296

[]0.000

[]4.353

[]6.187

[]13.066

[]0.000

[]0.487

[]0.659

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[]Table 6 Structured interview results 1

[]2

[]3

[]4

[]5

[]What does a person have to do in order to be a good academic writer? How do you come up with the ideas for your academic writing? What helps you the most to make your writing better? What does a person have to do to be a good reader?

[]How does the ability to read help you to write an academic paper?

[]Have wide knowledge 8 (10.95 %)

[]Do research

[]Practice 16 (22 %)

[]Read lots of books 26 (35.6 %)

[]8 (10.95 %)

[]From experience 7 (9.6 %)

[]Irrelevant 15 (20.5 %)

[]Brainstorming

[]Surrounding

[]Reading

[]Irrelevant

[]26 (35.6 %)

[]3 (4 %)

[]32 (44 %)

[]5 (6.8 %)

[]Format given

[]Dictionary

[]Reading materials

[]Irrelevant

[]7 (9.6 %) Lots of reading

[]6 (8.2 %) Refer to expert

[]36 (49.3 %) If you can read, you can write

[]6 (8.2 %) Reading improves writing

[]11 (15.1 %)

[]28 (38.4 %)

[]32 (44 %) Improve vocabulary and grammar 8 (10.95 %) Reading generate ideas to write 18 (24.7 %)

[]Lecturer & Friends 13 (17.8 %) Practice

[]15 (20.5 %) Irrelevant

[]10 (13.7 %) Irrelevant

[]13 (17.9 %) No answer

[]8 (10.95 %)

[]8 (10.95 %)

[]Beside the structured interview questions, some general questions about reading and writing were also asked in the hope to gain more students’ perceptions on reading and writing. The questions are as follows: i. Do you read a lot? How many book/articles a week? What type of books/articles do you read? ii. How often do you write? What do you write? iii. Do you read to do your assignment? How do you find the articles/texts that you read? Do you think reading help you to write? iv. Which do you find more difficult, reading or writing? Why? Overall, the responses toward the four general questions indicate that students do read and write for leisure and to fulfill required tasks or assignments. A number of students found that reading can sometimes be difficult due to the use of high-level words which impede meanings and they often need to refer to a dictionary. Most students think that reading helps them to write better. Generally, students find writing to be more difficult. However, a few of them find that reading is more challenging.

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[]5 Discussion and Conclusion Generally, students found that reading was easier than writing. Among the reasons given was that writing requires them not only to generate ideas, but also put those ideas in the most proper and logical order and then substantiate each point. At the same time they need to focus on the use of the correct parts of speech, grammar, and sentence structures. To fulfil the required ESP curricula, students have to write academic papers. In doing so, they have to follow specific formats when presenting their ideas. This can be quite technical and time consuming. However, there were a number of students who thought reading to be more difficult. Among the reasons given were that most the reading texts were difficult and require students to work with a dictionary or consult their lecturers or friends to better understand the texts. The results of the structured interview also showed that most of the time students need to read further on the subject before being able to discuss or argue their points. In spite of these problems, it could be seen that intensive and extensive reading can help students write better and at the same time build up their reading skills. This supports Krashen’s (1984) argument that it is reading that assists the writer in his writing (as cited by Hirvela 2004). Nevertheless, the nature of the ESP syllabus in general and in EAP syllabus specifically, requires students to be good in both reading and writing. This is important in order to fulfil the course requirements where students need to write academic paper besides being tested on reading comprehension as well as academic writing in their final examination. The findings of the current study, shows that in the ESP context, reading and writing are interconnected. In fact, there was a fairly strong positive connection between the two. These findings support the previous studies on the connection between the text read and the students’ ability to write (Tierney 1992; Eckhoff 1983, Taylor and Beach 1984; Crowhurst 1991; Tierney and Soter et al. 1989). This means that students who can read better also can write better. The findings of the current study also supports the findings in Stotsky (1983) study that better readers tend to be better writers and that better writers read more than poor writers, and better readers produce more syntactically mature writing than poor readers. Good readers may have problems in writing, but findings of the past studies show that it is rare to have poor readers who are good writers (Myklebust 1973; Stotsky 1983; Tierney and Shanahan 1991). In other words, reading and writing work in synergy (Tierney 1992). In relation to that, the connection that exists between reading and writing is also being strengthened through the four general questions that were asked on students’ perceptions concerning reading and writing. Based on the answer given by the students there were indications of some positive attitudes toward reading and writing. All of the students agreed that for them to complete their assignments they need to read for information and that reading help them to write better academic essay in their final examination. Even though most of them said that writing was difficult for various reasons but more than half of them agreed to the fact that

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[]writing was difficult due to their lack of knowledge in certain field and subsequently due to the lack of reading. Thus, this shows that reading and writing in ESP are indeed inseparable. In conclusion, the connection between reading and writing in the ESP context should be viewed positively and the knowledge can be utilized in designing future ESP curricula. Reading and writing should not be taught in isolation as segregating these two language skills would impede students’ performance in their reading and writing performance at tertiary education level. Apart from that, further studies need to be conducted to find the best way to help ESP university students achieve higher levels of reading comprehension and to increase their writing ability. This might shed some lights on how to help university ESP students write better academic papers or to fulfil the required curricula, and to use both language skills confidently and efficiently in their future career.

[]References Ary, D., Yacobs, L. C., & Sorenson, C. (2010). Introduction to research in education. Wadworth: Cengage Learning. Carson, J. E. (Ed.). (1994). Reading-writing connections: towards a description for second language learners. Second language Writing.CUP, 88–107. Crowhurst, M. (1991). Interelationship between reading and writing persuasive discourse. Research in the Teaching of English, 25(3), 314–335. Eckhoff, B. (1983). How reading affects children’s writing. Language Arts, 60(5), 607–616. Fitzgerald, J., & Shanahan, T. (2000). Reading and writing relations and their development. Educational Psychologist, 35, 39–50. Graham, S., & Hebert, M. A. (2010). Writing to read: Evidence for how writing can improve reading. A carnegie corporation time to act report. Washington, DC: Alliance for Excellent Education. Hirvela, A. (2004). Connecting reading and writing in second language writing instruction. Ann Arbor, MI: University of Michigan Press. Kavaliauskiene, G. (2001). Reasearch into reading-writing connections in english for specific purposes. English for Specific Specific Purposes World. www.esp-world.info/Articles_9/ Galina_9.htm Krashen, S. (1984). Writing: Research, theory and applications. Laredo: Beverly Hills. Moats, L. (2005/2006). How spelling supports reading: And why it is more regular and predictable than you may think. American Educator, 12–22, 42–43. Myklebust, H. (Ed.). (1973). Development and disorders of written language: Vol 2. In Studies of normal and exceptional children. New York, NY: Grune & Stratton. Neville, D., & Searls, E. (1991). A meta-analytic review of the effects of sentence-combining on reading comprehension. Reading Research & Instruction, 31, 63–76. Stotsky, S. (1983). Research on reading/writing relationships: A synthesis and suggested directions. Language Arts, 60(5), 627–643. Taylor, B. M., & Beach, R. W. (1984). The effects of text structure instruction on middle-grade student’s comprehension and production of expository text. Reading Research Quarterly, 19(2), 134–173. Tierney, R. J. (1992). Ongoing research and new directions. In J. Irwin & M. Doyle (Eds.), Reading/Writing connections: Learning from research (pp. 246–260). Newark. DE: International Reading Association.

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[]Tierney, R. J., & Shanahan, T. (1991). Research on the reading–writing relationship: Interactions, transactions, and outcomes. In R. Barr, M. Kamil, P. Mosenthal, & P. D. Pearson (Eds.), The handbook of reading research (Vol. 2; pp. 246–280). New York: Longman. Tierney, R. J., Soter, A., O’Flahavan, J. F., & McGinley, W. (1989). The effects of reading and writing upon critical thinking. Reading Research Quarterly, 24(2), 134–173. Tsai, J. (2006). Connecting reading and writing in college EFL courses. The Internet TESL Journal, XII(12). http://iteslj.org/Articles/Tsai-ReadingWritingConnection.html

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[]Chapter 41

[]Preferred Learning Modalities Among First-Year Medical Students at a Private Medical College in Malaysia Fazlin Zaini, Sandheep Sugathan, Siti Nadiah Md Sabri, Siti Syahida Abd Malek, Safura Najlaa Mat Salleh and Puteri Hafawati Faizan

[]Abstract Knowledge of students’ learning style preference is important for the improvement of teaching–learning process. Four modalities [visual (V), aural (A), read/write (R) and kinaesthetic (K)] have been applied to distinguish the learning style preferences among individual. The aimed of this study was to determine the learning preference among the first-year medical students at Universiti Kuala Lumpur Royal College of Medicine Perak. The VARK questionnaire developed by Fleming was administered to 120 first-year medical students. Data was calculated and categorised into multimodal and unimodal. For multimodal category, data was further subcategorised into high and low learning preferences. The chi-square analysis was performed to determine the association between learning style preferences and gender. All first-year medical students preferred the multimodal learning style. Among all the learning modalities, the majority of them have high preference for the kinaesthetic modality. However, they appear to have low preferences in three other modalities. No significant association was seen between the learning style preference and gender (p > 0.05). The first-year medical students at Universiti Kuala Lumpur Royal College of Medicine Perak appear to be multiF. Zaini (&) S. Sugathan S.N. Md Sabri S.S. Abd Malek S.N. Mat Salleh P.H. Faizan Faculty of Medicine, Universiti Kuala Lumpur Royal College of Medicine Perak, No. 3, Jalan Greentown, 30450 Ipoh, Perak, Malaysia e-mail: [email protected] S. Sugathan e-mail: [email protected] S.N. Md Sabri e-mail: [email protected] S.S. Abd Malek e-mail: [email protected] S.N. Mat Salleh e-mail: [email protected] P.H. Faizan e-mail: [email protected] © Springer Science+Business Media Singapore 2016 M.A. Abdullah et al. (eds.), Regional Conference on Science, Technology and Social Sciences (RCSTSS 2014), DOI 10.1007/978-981-10-1458-1_41

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[]modal learners and they have the highest preference for the kinaesthetic learning style. Gender has no influence on the learning style preference.

[]Keywords First-year medical student Learning preference Multimodal learners

[]1 Introduction Learning preference is when learners use their preferable mode to take and process knowledge. The learning preference has been investigated in many studies as knowledge of this is crucial for improving teaching–learning initiatives (Shah et al. 2012; Nuzhat et al. 2013; Samarakoon et al. 2013; Sinha et al. 2013; Mon et al. 2014). Students who are aware of their preferred learning style will be able to adapt to the various teaching–learning methodologies such as seminar, group discussion, practical and tutorial. Furthermore, this information is beneficial for lecturers in developing appropriate teaching methods and to improve their quality of presentations for students’ satisfaction. Thus, it facilitates an effective teaching-learning process. The Visual-Aural-Read-Kinaesthetic (VARK) tool was applied in this study of first year of medical students. Medicine is one of the toughest fields of study due to its heavy contents. First-year medical students are among the group that has the greatest challenge as they are new to the medical learning system and yet need to adapt to this system that requires a rapid master of a large volume of information (Dyrbye et al. 2005) with a lot of new terms and terminologies throughout the beginning year. According to Fleming, there are four modalities that can be used to distinguish the learning preferences among individual. These are visual (V), aural (A), read (R) and kinaesthetic (K) (Fleming 1995). Visual learners prefer to learn through seeing drawings, photographs, diagrams and other visual teaching aids. Learners who preferred auditory learn best by listening to lectures and discussing materials. Read learners have a preference to learn through reading written materials, whereas kinaesthetic learners learn through physical experiences such as performing activities and manipulating objects. Learners may have one, two, three or four strong preferred learning styles. Unimodal learners have a single learning style preference whereas multimodal learners prefer a sort of learning modalities with two, three or four combinations (Fleming 1995). In this study, questionnaires based on Fleming (2012) were used to identify the learning preferences mentioned above. The purpose of this study was to determine the learning style preference among the first-year medical students at Faculty of Medicine, Universiti Kuala Lumpur Royal College of Medicine Perak (UniKL RCMP).

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[]2 Method This descriptive cross-sectional study was performed at UniKL RCMP, Malaysia in September 2013. A total of 120 (35 males and 85 females) first-year medical students consented to participate in this study. The VARK questionnaire developed by Fleming (2012) [Copyright version 7.2 (2012)] was administered to the first-year medical students. There were 16 questions consisting of four options each. Students were allowed to answer more than one option if necessary. Data from the questionnaire were recorded and calculated using the VARK score sheet. Data was categorised into multimodal and unimodal based on the calculated score. For multimodal category, data was further subcategorised into high and low learning preferences according to the percentage score for each learning modality. High learning preference category was indicated by a percentage of more than 25 %, while the percentage for low learning preference was 25 % and below. The chi-square analysis was performed to determine the association between the learning style preferences and gender. P < 0.05 was considered statistically significant.

[]3 Results The ethnic majority in this study is Malay and the predominant gender is female as shown in Table 1. All the first-year medical students appeared to be multimodal learners. Only 2.9 % male and 9.4 % female are trimodal. A majority of them preferred the combination of all four learning modalities with percentage of 97.1 and 90.6 % in male and female, respectively (Fig. 1). Among all the learning modalities, the majority of the first-year medical students had high preference for the kinaesthetic modality (62.5 %). However, they appear to have low preferences in the other three modalities with the highest percentage observed in the visual modality (72.5 %), followed by read (67.5 %), and auditory (50.8 %) (Table 2). Chi-square analysis was done to determine the association Table 1 Socio-demographic data of the first-year medical students Ethnicity

[]Sex

[]Malay Chinese Indian Others Male Female

[]Number (n = 120)

[]Percentage (%)

[]109 3 5 3 35 85

[]90.8 2.5 4.2 2.5 29.2 70.8

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[]80

[]Quadmodal

[]70 60 50 40 30 20 10 0 Quadmodal Trimodal

[]Male 34 1

[]Female 77 8

[]Fig. 1 Bar chart showing the percentage of medical students who are tri-modal and quad-modal learners by gender (male: n = 35; female: n = 85)

[]between learning preference and gender. However, no significant association was seen between them (p > 0.05) (Table 2).

[]Table 2 Learning modalities according to gender Learning preference Visual

[]Male

[]Female

[]High

[]Total

[]8 25 33 (22.9 %) (29.4 %) (27.5 %) Low 27 60 87 (77.1 %) (70.6 %) (72.5 %) Auditory High 19 40 59 (54.3 %) (47.1 %) (49.2 %) Low 16 45 61 (45.7 %) (52.9 %) (50.8 %) Read High 12 27 39 (34.3 %) (31.8 %) (49.2 %) Low 23 58 81 (65.7 %) (68.2 %) (67.5 %) Kinaesthetic High 21 54 75 (60 %) (63.5 %) (62.5 %) Low 14 31 45 (40 %) (36.5 %) (37.5 %) High learning preference indicates >25 %, low learning preference 25 %

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[]p > 0.05

[]p > 0.05

[]p > 0.05

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[]4 Discussion Knowledge of students’ learning preference is important for the improvement of teaching–learning process, both from the perspective of the students and teachers. Therefore, the aim of this study was to determine the learning style preference among medical students at UniKL RCMP, with the primary focus on the first-year students as they are entering a different phase in their learning process, moving from school-based educational environment which are predominantly teacher centred to a student-centred learning environment at the university. Based on our analysis, the first-year medical students of UniKL RCMP appear to prefer the multimodal learning style where they are either tri-modal or quad-modal learners. This is in contrast with similar studies in other institutional environments which showed the presence of both group of multimodal and unimodal learners even though multimodal learning remain in the majority (Lujan and DiCarlo 2006; Slater et al. 2007; Choudhary et al. 2011; Shah et al. 2012). In addition, studies conducted in two medical schools in Malaysia are also not consistent with our study where majority of the preclinical students prefer the unimodal and multimodal, respectively (Mon et al. 2014; Liew et al. 2015). Recent studies have suggested that students who are physically unimpaired will use all the modalities in learning (Kumar et al. 2012; Mon et al. 2014). This appears to be a natural approach as earlier study has suggested that learning becomes more effective when all learning modalities are applied. Student will only remember 20, 30, 40, 50, and 60 % of what they read, hear, see, say and do, respectively; a combination of all these learning modalities increases the percentage to 90 % (Bonwell and Eison 1991). Therefore, it is believed that the multimodal learners have the advantage to score a high grade in the university entrance examination (Baykan and Nacar 2007). Moreover, multimodal students may get benefit from active learning strategies as these strategies may reach all types of learners. The active learning strategies such as role play, debates and games, have been suggested to be helpful in enhancing critical thinking, reasoning, problem-solving and decision-making skills. The adoption of these teaching strategies are, therefore, favourable as the skills mentioned are said to be the key factors that influence employment opportunities (Lujan and DiCarlo 2006). Moreover, it is believed that multimodal learners have the advantage to score a high grade in the university entrance examination (Baykan and Nacar 2007). However, among the four learning modalities, the kinaesthetic modality is found to be the highest learning preference in both male and female students. This is similar to earlier findings (Choudhary et al. 2011). Previous studies have suggested kinaesthetic learning as the strongest preference in the unimodal category in both first-year medical students and clinical students (Baykan and Nacar 2007; Sinha et al. 2013). The findings suggest that first-year medical students prefer to learn through hands-on activities, which can be made available through practical and tutorial classes.

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[]In addition, the studies also found that they have a low preference for the visual and read modalities. This is in agreement with an earlier study by Baykan and Nacar (2007), where the visual and read is found to be low compared to the other two modalities (Baykan and Nacar 2007). This is something that needs to be addressed as lecture teaching style makes up a big portion of the teaching strategies used in medical education, especially in the preclinical years, where students are required to do a significant amount of reading and listening. Therefore, the learning environment needs to be such that students are more actively involved in their studies. It was noted that the majority of the first-year medical students in UniKL RCMP is female. This may have influenced our findings as gender has been suggested to influence the students’ learning style (Choudhary et al. 2011). This suggestion is corroborated by later studies which showed that gender did significantly influence learning preference (Choudhary et al. 2011; Nuzhat et al. 2013). The significant difference could be attributed to males who are more externally focused whereas females are more introspective and self critical (Shah et al. 2012). However, our findings showed no gender influence in the learning preference and this is not limited to our study (Baykan and Nacar 2007; Slater et al. 2007; Kumar et al. 2012; Mon et al. 2014). However, many other factors could have contributed to these perceived preferences. It has been suggested that the variation in learning style could be due to factors such as culture, the nature of the studies and the characteristics of students (Nuzhat et al. 2011).

[]5 Conclusion The first-year medical students at UniKL RCMP appeared to be multimodal learners and they have the highest preference for the kinaesthetic learning style. Gender has no influence on the learning preference. Academician should play a role is assisting the students to identify their preferred learning style and at the same time to adjust their teaching approach that suit to their students in order to make the teaching–learning activities become more effective. In addition, learning activities that can promote reading and visualising need to be improved as these modalities are used mainly in studying during the preclinical years. Acknowledgments The authors would like to acknowledge the Dean of the Faculty of Medicine, UniKL RCMP, Professor Dr Osman Ali and the Chairperson of the Journal Writing Workshop Committee, Puan Resni Mona, for their assistance in writing the manuscript. A special thank to the first-year medical students of UniKL RCMP session 2013/14 who participated in this study.

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[]References Baykan, Z., & Nacar, M. (2007). Learning styles of first-year medical students attending Erciyes University in Kayseri, Turkey. Advances in Physiology Education, 31, 158–160. doi:10.1152/ advan.00043.2006 Bonwell, C. C., & Eison, J. (1991). Active learning: Creating excitement in the classroom. Washington, DC: The George Washington University. Choudhary, R., Dullo, P., & Tandon, R. V. (2011). Gender differences in learning style preferences of first year Medical students. Pakistan Journal of Physiology, 7(2), 42–45. Dyrbye, L. N., Thomas, M. R., & Shanafelt, T. D. (2005). Medical student distress: Causes, consequences, and proposed solutions. Mayo Clinic Proceeding, 80(12), 1613–1622. Fleming, N. D. (1995). I’m different; not dumb. Modes of presentation (VARK) in the tertiary classroom. In A. C. L. Zelmer, A. Zelmer, & A. Chiou (Eds.), Research and development in higher education: Blending tradition and technology. Proceedings of the 1995 Annual Conference of the Higher Education and Research Development Society of Australasia (pp. 308–313). Rockhampton: Professional Education Centre, Faculty of Health Science, Central Queensland University for HERDSA. Fleming, N. D. (2012). VARK: A guide to learning habits. http://www.vark-learn.com/english/ page.asp?p=questionnaire. Accessed July 23, 2013. Kumar, A. A., Smriti, A., Pratap, S. A., & Krishnee, G. (2012). An analysis of gender differences in learning style preferences among medical students. Indian Journal of Forensic Medicine and Pathology, 5(1), 9–16. Liew, S. C., Sidhu, J., & Barua, A. (2015). The relationship between learning preferences (styles and approaches) and learning outcomes among pre-clinical undergraduate medical students. BMC Medical Education, 15(44), 1–7. Lujan, H. L., & Dicarlo, S. E. (2006). First year medical students prefer multiple learning styles. Advances in Physiology Education, 30, 13–16. doi:10.1152/advan.00045.2005 Mon, A. A., Fatini, A., Ye, C. W., Barakat, M. A., Jen, P. L., & Lin, T. K. (2014). Learning style preferences among pre-clinical medical students. Journal of Medical & Allied Sciences, 4(1), 22–27. Nuzhat, A., Salem, R. O., Quadri, M. S., & Al-Hamdan, N. (2011). Learning style preferences of medical students: A single-institute experience from Saudi Arabia. International Journal of Medical Education, 2, 70–73. doi:10.5116/ijme.4e36.d31c Nuzhat, A., Salem, R. O., Quadri, M. S., Al-Hamdan, N., & Ashour, N. (2013). Gender differences in learning styles and academic performance of medical students in Saudi Arabia. Medical Teacher, 35, S78–S82. doi:10.3109/0142159X.2013.765545 Samarakoon, L., Fernando, T., Rodrigo, C., & Rajapakse, S. (2013). Learning styles and approaches to learning among medical undergraduates and postgraduates. BMC Medical Education, 13, 42. doi:10.1186/1472-6920-13-42 Shah, C., Pate, S., Diwan, J., & Mehta H. (2012). Learning habits evaluation of first M.B.B.S students of Bhavnagar Medical College. International Journal of Medical Science and Public Health, 1(2), 81–86. doi:10.5455/ijmsph.2012.1.81-86 Sinha, N. K., Bhardwaj, A., Singh, S., & Abas, A. L. (2013). Learning preferences of clinical students: A study in a Malaysian medical college. International Journal of Medicine and Public Health, 3, 60–63. doi:10.4103/2230-8598.109325 Slater, J. A., Lujan, H. L., & Dicarlo, S. E. (2007). Does gender influence learning style preferences of first-year medical students? Advances in Physiology Education, 31, 336–342. doi:10.1152/advan.00010.2007

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[]Chapter 42

[]Learning Preferences of Students Taking a Course in Integrated Course Study Norlaila Abdullah

[]Abstract Inquiring into the student learning preferences is a good practice of teaching as it enables the lecturer to match the student’s learning needs. This case study of the final year students in Bachelor in Accountancy of the Universiti Teknologi MARA (Pahang) uses the Dunn learning style model (1993) which encompasses the assessment of environmental, emotional, sociological, physiological and psychological behaviours of 78 accounting students towards learning the subject matters. Results indicated that 90 % of the students prefer informal seating environment, 81 % show responsibility towards their own learning, 38 % learn without support from friends, 78 % study well while taking food or drinks, 60 % are left-brain learners and 96 % concentrate and stay focused in class. While majority are reflective, some 4 % of the students tend to be impulsive, careless and simply do tasks without considering whether they are on the right track. Having diverse learning preferences in Integrated Case Study class, some teaching and learning approaches were implemented to match the students learning preferences that include flip teaching, lecture followed by a role play, fieldwork to explore the topics in real life, problem solving through why and why analysis and think-pair-share strategy. Results of summative assessments show that 100 % of the students obtained a grade point average (GPA) of 3.00 and above for the given course as opposed to its counterpart. Thus, understanding and exploring the student learning preferences enable the lecturer to utilize effective teaching and learning strategies and approaches for better student learning and outcomes.

[]Keywords Flip teaching Learning preferences Left-brain learner Reflective

[]Learning style model

[]N. Abdullah (&) Pusat Pengajian Perakaunan dan Undang-undang, Universiti Teknologi MARA Pahang, 26400 Bandar Tun Razak Jengka, Pahang, Malaysia e-mail: [email protected] © Springer Science+Business Media Singapore 2016 M.A. Abdullah et al. (eds.), Regional Conference on Science, Technology and Social Sciences (RCSTSS 2014), DOI 10.1007/978-981-10-1458-1_42

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[]1 Introduction The need to incorporate new knowledge and practices in imparting skills among students is highly imperative. This action research in the classroom uses Dr. Kenneth Dunn Learning Style Model (Dunn and Dunn 1993). The model encompasses five (5) stimuli such as environmental, emotional, sociological, physiological and psychological elements. The purpose of conducting this study is to investigate the students’ learning preferences and styles is not only to seek knowledge of how the students learn but also to design some teaching and learning strategies that match the students’ learning needs. Additionally, this study aims to analyse the impact of these strategies to the students’ academic performance in the given course code. As the lecturer of the course, I find that the students, having completed the diploma course in accounting plus two years in the bachelor program, are not able to identify the main problem in the case, identify and analyse opportunities, threats, strengths and weaknesses, formulate and recommend strategies and implement plan of actions. In class, the students were not attentive and receptive to class discussions. I can say that the need to understand and match their learning preference is necessary as I expect them to be active learners in and off classes in order to achieve the desired learning outcomes. A review of literature indicates that learning styles are an indicator of how the students perceive, interact with, and respond to the learning environment (Sims and Sims 1995) as there are individual differences in learning among students (Kolb 1984). Student approaches to learning differ due to differences in learning styles (Csapo and Hayen 2006) whereby students will learn best when they are taught and learn in a manner consistent with their primary and secondary learning styles (Dunn and Dunn 1978). To make teaching successful, it is imperative that lecturers have knowledge of learning styles and strategies (Sarasin 1999).

[]2 Methods The samples involved 30 bachelor accounting students enrolled in Integrated Case Study course at the Universiti Teknologi MARA (UiTM) Pahang, Jengka Campus. These students have completed their corporate internship and expected to have reasonable exposure to handle the case study. The students were asked to complete an online Dunn survey questionnaire consisting of five (5) learning preference stimuli and careful analysis of the resulting graph have been undertaken to determine the student learning style preferences in order for the lecturer to plan strategies that suit them best. There were 17 female and 13 male students who completed the survey.

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[]3 Results and Discussion 3.1

[]Environmental Elements

[]Figure 1 shows the results of the environment stimuli which are composed of four (4) paired elements of sound, light, temperature and seating design known as Envi-SLTD. The subsequent segment details the discussions on the Envi-SLTD.

[]3.1.1

[]Sound

[]Results show that 50 % of the students prefer to study in a quiet environment and the remainder can accommodate some music or sound disturbances. This indicates that students differ in the way they study. Students who dislike sounds and music while studying will not be able to think better or cast good answers in situations where disturbances are aplenty. This group of students like to complain about the environment in the hostel rooms and usually opt to find vacant classrooms after class hours to do the non-face-to-face learning. However, those students who are indifferent to music and sounds are likely to learn better regardless of the environment. This group of students are able to concentrate on the lesson even when sound and noise are soaring in the environment. As half of the students cannot tolerate sounds while the class is in progress, the university needs to provide conducive learning environment by eliminating some contractual sound-creating activities, i.e. trimming of lawn, within the academic building area.

[]3.1.2

[]Light

[]Percentage

[]Unlike the element of sound which was discussed earlier, the students vary considerably in their preferences to light where 72 % of them like to study in softer or more focused lightings as compared to 28 % who opt for brighter lighting. This point outs that majority of the students are distracted by bright lights, making them

[]100 80 60 40 20 0

[]Environmental Elements

[]Fig. 1 Environmental-SLTD in percent

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[]not only to lose focus during the learning process but also be inattentive during classroom activities. Given this type of students, it is imperative that the classroom should be furnished with proper curtains or blinds to avoid distraction of strong daylight. Based on ocular survey, almost all classrooms on campus are equipped with blinds to assist students in learning better. This group of students can perform well during night class sessions, to the despise of lecturers, in cases when the classroom are not light conducive. In this survey, a minority of students prefer bright lights when studying. As compared to their counterparts, this group of students choose to prepare assignments and other classroom related activities at daytime.

[]3.1.3

[]Temperature

[]Heat also affects student’s learning preferences. The findings indicate that 69 % of the students prefer to study in a cooler place as opposed to 31 % who like warm temperature when studying. Heat- averse students like to be seated near the place where the flow of cooler air is stronger while the other students who prefer warm atmosphere are seated near the window to avoid the cooler airflow. Finding the right classroom temperature that suits the students’ preferences enables both the lecturer and students not only to concentrate better in the teaching and learning activities but also greater retention of learned knowledge among students. When students have higher retention of knowledge, they would simultaneously sustain higher order thinking skills required in the subsequent advanced courses. On the other hand, there are students who like to study in warm temperature. They can think, analyse and complete their homework better in non-air-conditioned classrooms. They can adopt easily in the local temperate environment with no complains. However, evidence indicate that students who prefer to study in warm temperature may not perform better during the final examination when they are placed in the hall that is at high cold temperature. As students has low bargaining power over the procedures and policies of the university, it is good when they are able to cope easily with the situations.

[]3.1.4

[]Seating Design

[]Astonishingly, the students have unique preferences on seating arrangement where 10 % of them like to be seated in a formal or prescribed manner while 70 % desire to be seated informally. This reveals that majority of the students do not want to be told where they are to be seated. They want to choose their own seats in classrooms because they prefer to be seated with their close friends. The selection give the students the ease and comfort in communication during the learning process. For example, a left hander student will choose to be seated at the end of the row for reason of convenience as armed chairs are mostly right-handed. The left hander students find it most convenient in classrooms where tables and chairs are available.

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[]In contrast, minority of the students like to be seated in a designated chair in the classroom. The sense of belonging exist as the place is impliedly to belong to the students and this makes them feel comfortable. They can focus and learn better and this is an avenue to become an independent thinker.

[]3.2

[]Emotional Elements

[]The subsequent discussion relates to the emotional elements of the samples that comprises motivation, conformity, task persistence and structure as shown in Fig. 2.

[]3.2.1

[]Motivation

[]Percentage

[]Findings indicate that 73 % of the samples are self-motivated and the remainder belongs to an assisted group. The self-motivated learners are self-regulated; love to search and read various sources of materials and they study on their own. Self-motivated students have the ability to manage their own learning activities regardless of the difficulties they encounter in understanding a given topic or completing an assigned task. They try to do them on their own. On the contrary, some 27 % of the students are less motivated where learning is always initiated by someone else. Less motivated students undertake learning only when they are being told by the lecturer and most of the time they study to imitate others. Unlike the motivated ones, these students will only study when the lecturer gives them an assignment or when there is a forthcoming quiz and examination. With the introduction of outcome-based education coupled with blended learning, these less motivated students may not be more receptive to this mode of learning unless when the activities are accorded some grades. Abdullah et al. (2012) discovered that majority of the student feel lazy at times when studying and most of them belong to the less motivated samples. Making the less motivated students perform better needs some positive attitude from the lecturer. Some approaches adopted at a slight glance of motivation among 100 80 60 40 20 0

[]Emotional Elements

[]Fig. 2 Emo-MRPS in percent

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[]students includes being passionate about what I teach them, energetic in my delivery, attentive to the students actions that enables me to know what they are writing or how they answer a given exercise question, informative about the subject matter relative to the real life corporate practice and walking about the classroom as the learning process progresses. Use of drawings, pictorial illustrations and role play will also help students become engaged in learning.

[]3.2.2

[]Conformity/Responsibility

[]The study indicates that majority of the students (81 %) show conformity or responsibility towards their own learning experiences. Based on observation, the samples are more responsive and alert in class. They want to share their ideas making classroom discussions lively. Allowing the students to work on a group project is an ideal teaching and learning approach that matches their learning preferences. The lecturer, who acts as a facilitator, allows the students to plan and execute the project on their own using their own style and creativity. This approach challenges the students minds and make them more engaged in a fun learning environment. For the remaining 19 % of the students, who are nonconformists, the lecturer should guide and encourage them to be active during the discussion. The lecturer needs to provide some scaffolding after having have determine the extent of tasks that they could perform alone. Knowing the zone of proximal development (Vygotsky 1978) of the students, lecturers are able to utilize the necessary learning strategies to help the students advance their learning. Flip teaching, that requires the students to read, understand and analyse a given case study before coming to class is an andragogical approach that matches well with nonconformist. This prepares the students to be active in class discussion more specifically when this activity is a graded one. This strategy will make nonconformist students be engaged in the classroom discussions and other learning experiences. Another approach to manage better these less conforming students is to alter the way lecturers conduct the educational delivery in class. For example, a lecturer should introduce some technology-based learning tools to challenge their minds and give them the chance to lead the discussions. Alternatively, the lecturer could give them a fieldwork project with defined learning objectives and present the findings in class extemporaneously.

[]3.2.3

[]Task Persistence

[]Task persistence means the ability of the students to stay focused on a given task even when there are many other tasks to be completed. Results indicate that 40 % of students are focused and 60 % need to be reminded about the learning tasks. This reveals that majority of them need some reminders to complete the task on time.

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[]Since majority of them fall into this category, the lecturer needs to adopt some strategies to ensure that the students are progressively working on the projects. Failure to do so would mean that the students are going to submit their work late while others would submit for the sake of compliance without regard to quality. To make everyone achieve the learning outcomes, the lecturer should make it a habit to check and monitor the students’ projects on a regular basis and grades are provided based on completed tasks.

[]3.2.4

[]Structure

[]The study reveals that 81 % of the students prefer self-structure (internal) approach to learning as opposed to 19 % who desire assisted learning. Students opting for self-structured learning try to internalize subject matters through their own initiatives. They can perform the task in their own way regardless of the sequential mode or otherwise. Unlike the self-structured learners, the assisted ones prefer to seek the help of external party to learn better. Based on my observation, majority of the students initiate to learn on their own but when the learning becomes difficult they stop to do it as they lack perseverance. On the contrary, a few of them will try to ask questions and seek assistance from the lecturer. The lecturers should match the emotional attributes of learners when conducting classes. A good strategy to cope with the varied emotional learning preferences among students is the use of online discussion. A lecturer can post an online question through the Universiti Teknologi MARA (UiTM) i-Learn system. This approach is suitable to all types of learners’ emotional needs. The students will be actively involved in performing the assigned topics on condition that the task are accorded some grades. In addition, the online discussion allows students to be engaged in the learning process at their most convenient environment and time. Likewise, it can also accommodate varied learning preferences of the students.

[]3.3

[]Sociological Elements

[]In this section, the discussion will be highly concentrated on the varied sub-groupings of the sociological behaviour of students towards learning, i.e. self, pairs, peers, team, adult and varied as depicted in Fig. 3.

[]3.3.1

[]Self and Pair

[]Survey findings indicated that 41 % of the students prefer to study or do their job alone (self). They can think and do an assignment better when they are alone. In contrast, none of the students indicated that learning is taking place in pairs. This finding is a behavioural representation of the accountant’s work value of

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[]Percentage

[]440 100 80 60 40 20 0 Self

[]Pair

[]Focused

[]Team

[]Adult Variation

[]Sociological Elements Fig. 3 Sociological-SPPeTAV in percent

[]independence where work is done best alone. Working an assignment independently, the students are not only conscious of their level of accounting aptitude but it also a preparation for accounting real life practice where accounting work is done singly. Based on observation, the students prefer not to study in pair as they need to internalize the concepts first before they can communicate about it to others.

[]3.3.2

[]Focused and Team

[]On focused (peers) and team (group) learning preferences, it was discovered that 38 % of the students favour to learn with peers or friends while 10 % learn better in group. The author defines Peer that means the same age group while team represent a group of classmates who want to compete with one another. The findings indicate that 38 % of students can concentrate best when they are studying with peers and that 10 % prefer to be in groups. In a class activity where the students are given three options to learn with an expert (lecturer), peers and group members, 12 % of the students choose to learn in teams and the remainder (88 %) choose to undertake the activity with their classmates (peers). None of the students want to do the activity with their lecturer as they either prefer to complete their assignments in teams or with their peers. In this situation, the author has to initiate varied activities such as role play, case study analysis and field visit to accommodate the differences in learning styles of students for greater achievements. Performance wise, all students perform better when the activity fits their learning styles. There is lively presentation and deep analysis of the issues covered and good interactions among the students take place as well. Comparatively, those students who prefer to work in teams, I observe that they can think critically, analyse, and bring about some good outcomes of the project and, above all, there is fun and achievement that suits the students’ needs.

[]3.3.3

[]Adult and Variation

[]Adult, in this instance, refers to the lecturer’s authoritarian outlook while variation means the lecturer posses flexible attitude. Findings indicate that 12 % of students

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[]prefer variation attitude and nil for adult or authoritative approach. Further, students are able to concentrate best when the lecturer is approachable and flexible. Based on this sociological factors, there is a need for lecturers to adopt varied approach in teaching and learning including reasonable flexibility. Rigidity scares students. For instance, student achievement can be enhanced when a lecturer asks each student to perform scenario-based exercises individually. In cases when students are to perform a group project, grouping should be composed of three students (peer) otherwise learning experience will be minimal. Another teaching approach is class discussion where students who prefer to be alone will voice out his or her opinion about the topic using his or her own words as compared to those students who prefer to be in a group. The former could think well while the latter will be getting ideas once others start sharing.

[]3.4

[]Physiological Elements

[]The Webster’s New World College Dictionary defines the term physiological as having normal functions or characteristics of a living thing. In this context, the physiological attributes of students can be described as perceptual, intake, time and mobility as shown in Fig. 4. This section describes the normal characteristics of students during the learning process.

[]3.4.1

[]Perceptual

[]Percentage

[]The Institute for Learning Styles Research describes perceptual learning as the means by which the learners understand and perceive the concept by the use of their senses. Learning perceptions can be auditory, visual, tactile and kinaesthetic. In this survey, findings indicate that 27 % of the students are auditory, 41 % visual, 18 % tactile and 14 % kinesthetic. It is noted here that the majority of the students learn better through seeing visual depictions as compared to auditory (as listening to a

[]100 80 60 40 20 0

[]Physiological Elements

[]Fig. 4 Physiological-PITM in percent

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[]lecture); tactile (touching) and kinaesthetic (moving around while concentrating on learning variables). A lecturer should use varied teaching tools to accommodate the students’ idiosyncratic preferences to learning. For example, using PowerPoint with texts, graphs and pictures would be highly suitable for visual learners as opposed to those auditory learners who can study better with background music. PowerPoint can be more effective to aural learners when it is incorporated with multimedia elements. Other teaching and learning alternatives include role plays; dramas, lectures, and listening to tapes are much favoured by kinaesthetic and aural learners respectively.

[]3.4.2

[]Intake

[]Taking some drinks while studying is another physiological attribute of most students. Findings indicate that 78 % of the students can study well when they eat or take some drinks while studying and 22 % require no intake at all. Observations indicate that the majority of the students come to class with some kind of bottle of drinks or candies. They even smuggle sweets or titbits in the library for better concentration and grasp when studying. This enables them to be stimulated, think better and try to associate the learned topics through the taste of the drinks or the sweets. Therefore, a lecturer needs to understand the way the students learn and so do the librarians.

[]3.4.3

[]Time

[]Time of day is another element that influences the level of learning experience among students. This study indicates that 55 % of the students study early in the morning; 41 % at night and 4 % in the afternoon. Majority of the respondents like to get up early in the morning and study while others stay up late at night studying difficult information and only very few study in the afternoon. Based on observation, those students who can study in the early morning had enough sleep and they have better academic performance. On the contrary, those students who study late at night will feel drowsy due to being deprived of sleep. They come late to class; not alert and do not perform well when a test is taken in the morning. In the university, the students have to inculcate good time management to cope with the hectic schedule and volume of assignments. At the same time, they need enough sleep in order to think and concentrate better. Study time may change depending upon the activities of the students on campus. Students have to adjust their learning time and to take an effort to study at any time effectively. The lecturers have no influence over this issue, rather the students have to balance their time to study and rest for better academic performance. When the students are not punctual to class, the lecturer should allow them to sit and participate in class activities as opposed to barring them to attend the

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[]day’s class. However, the lecturer can impose some kind of penalty to deter students from persistently coming late.

[]3.4.4

[]Mobility

[]Findings indicate that 50 % of the students are passive or they sit still when learning while another 50 % are active and they prefer to have a break to move around in order to concentrate and think better. Sometimes, the students ask for a break in order for them to stretch out and move around and we always oblige by giving them a break regardless of the desire to continue. Upon resuming the class, we can observe that the students become active and participate more in class activities. The teaching methods can be varied too using moving visuals or a video. These can be an effective tool and at the same time it accommodates the learning needs of these active learners. A case study approach learning using a video or a movie can be another tool of learning that is preferred by active learners. Thus, a lecturer has to understand the needs of these impulsive students who learn better when they are mobile as opposed to their passive counterparts who do not mind sitting still when learning.

[]3.5

[]Psychological Elements

[]Kendra Cherry of About.com, a psychologist, defines psychological element as the social behaviour of a person. In learning preference, a student may behave global or analytical, hemispherical or left brain—right brain learner and impulsive or reflective as shown in Fig. 5. The ensuing section discusses the learning preferences based on the psychological behaviour of students.

[]3.5.1

[]Global—Analytical

[]As in About.com, the term global learner is defined by most psychologists as one, who learns best through an initial overview of the content or concept; understands

[]Percentage

[]100 80 60 40 20 0 Global

[]Analytical Right-Brain Left-Brain

[]Pyshological Elements

[]Fig. 5 Psychological-GHI in percentage

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[]Impulsive

[]Reflective

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[]N. Abdullah

[]and thinks about it, and then focuses on its details. On the other hand, the analytical learner learns best when they study the details of the concepts prior to understanding the whole concept. Findings of this study indicate that 55 % of the students are global learners and 45 % are analytical. This reveals that the majority of the respondents learn new information by getting the gist of the concept or reading the summary as opposed to getting through each component of a topic. When planning the teaching approach of a new topic for students who are mostly global learners, a lecturer should show the general outline of the topics or give the synopsis of the case study before attending to details. Subsequently, a lecturer should deliver the lesson on a systematic approach making global learners learn faster. However, global learners can suffer some pitfalls during examinations when questions are focused on details but they fail to explain the question well. Meanwhile, the lecturers can adapt the teaching approach to accommodate the analytical learners by giving the step-by-step sequence of a new topic. This approach enables them to think logically and learners become more focused on their learning experience as they emphasis more on logic prior to getting the whole concept. The lecturer should explain concisely and briefly the topic as this group of learners understands and reasons out deeply.

[]3.5.2

[]Right Brain and Left Brain (Hemisphericity)

[]Based on the right-brain and left-brain test, 40 % of the students have right brain dominance and 60 % are left-brain learners. Kendra Cherry, a psychologist, noted that a person who is “left-brained” is often said to be more logical, analytical and objective, while a person who is “right-brained” is said to be more intuitive, thoughtful and subjective. Right-brained learners are creative and emotional. They are visual learners. Left-brained learners prefer to learn and do the assigned task alone.Based on observation, they prefer to listen to the music while studying and they learn better by using colourful visual depictions such as diagrams, images, video and pictures. On the other hand, Grace Fleming of About.com, also a psychologist, contended that left-brained learners are organized, punctual and process information in a logical and sequential manner. Additionally, left-brained learners are auditory and analytical learners who learn best through auditory learning materials with emphasis on details with logical thinking. The findings of this study reveal that the majority of the respondents are left-brained learners who are ideally meant to be accountants as they focused more on numbers and logic. The lecturer can devise teaching methods that are specially tailored to this group using lectures and discussions. The instructor could begin with an outline and they should observe its sequence during their lecture avoiding long winding discussions.

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[]3.5.3

[]445

[]Impulsive–Reflective

[]Schmeck (1988) claims that impulsive learners (risk takers) tend to respond quickly as compared to reflective learners (cautious learners) who respond slowly and thoughtfully. Based on this study, 96 % of the respondents are reflective or cautious learners. These students possess a personality that is receptive in class, they concentrate and stay focused in class. This type of learner submits assignment on time studies their lessons daily and thinks before he or she answers a question. On the other hand, 4 % of the respondents tend to be careless and submit assignments late. When asked to do a project, they simply do it without considering whether they are on the right track. Their main concern is to complete and submit the task. Based on my observation, these students can easily be distracted from doing a classroom task and after an hour of classroom activity their minds start to wander. Once a complicated question is asked, they would respond quickly without regard to the correctness of the answer. A lecturer needs to understand these impulsive students by accommodating the response but at the same time give a correct explanation or answer to the question. Alternatively, a lecturer can ask simple questions to keep these students’ attention focused after a length of time in the classroom. One good thing about these impulsive learners is that they respond quickly rather than waiting for awhile before an answer is given. This is the personality of a reflective learner. Kolb (1986) indicates that the instructional methods that suit reflective learners include lecture method followed by demonstration, fieldwork work to explore the topic and followed by a tutorial. Based on my observation, Kolb description of reflective learners fits the majority of the respondents’ learning styles where I required them to go for fieldwork to discover and explore topics in real life practice. Upon completion of the task, I found that the majority of them followed carefully my instructions and they were able to submit good discoveries and recommendations.

[]4 Conclusion and Recommendation Based on this survey, a lecturer is able to obtain data that allows him or her to diagnose and interpret the learning styles of the students. This will help the lecturer to understand how students perceive, interact with, and respond to the learning activities in the classroom. This allows the lecturer to respond to the learning style needs of students. The learning styles of students are vital as it denotes their knowledge seeking preferences. By doing so, the lecturer is able to tailor his or her teaching techniques and deliveries to meet the diverse needs of students. Matching the students’ diverse needs in learning has direct impact on their academic

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[]performance. This claim is proven by the grade point average (GPA) results of the respondents in MAF680 for the semesters of March to July 2013 where all of them obtained a GPA of 3.00 and above. Academic performance of students in the subsequent semesters of September 2013 to January 2014 and March to July 2014 obtained similar GPA standings. Matching the learning styles of the students enables the lecturer to help the students to achieve better academic performance that conform to the academic quality standard of the university, that is, having at least 50 % of graduating students achieving a CGPA of 3.00 and above. Alternatively, every lecturer is to collect information on the learning styles of students to improve or transform their teaching deliveries. This information can be valuable to be used as a platform for continuous improvement initiatives among the faculties and the top management. This is essential in delivering quality graduates to the industry through diagnostic teaching and learning. Likewise, the students need some awareness on their own learning preferences to allow them to develop their own strategies in learning and ultimately succeed in the courses that they find most difficult. The finding on the impact of the learning preferences on the students’ academic performance covers only three semesters of academic performance which seems to be inadequate. There is a need to perform longitudinal studies on the impact of matching the learning preferences to the academic performance of UiTM Pahang students. Acknowledgment I wish to express my gratitude to Associate Professor Dr. Hadzli Hashim of the Institute of Leadership and Quality Management (iLQAM) of the Universiti Teknologi MARA, Malaysia who professionally gave inputs over this research undertaking as requirements for the completion of the Certificate in Education (CiED).

[]References Abdullah, N., Faizah Azam, A. A., Norlaila, M. D., Ahmad Daud, I., & Roslan, A. W. (2012). Reducing the gap between academic and internship skills among students. Malaysia: Universiti Teknologi MARA Innovative and Creative Circle Convention. Cherry, K. Understanding the myth and reality of left brain and right brain dominance. About. com, July 28, 2013. Csapo, N., & Hayen, R. (2006). The role of learning styles in the teaching/learning process. Issues in Information Systems, V11(1), 129–133. Dunn, R., & Dunn, K. (1978). Teaching students through their individual learning styles: A practical approach. Reston, VA: Reston Publishing. Dunn, R., & Dunn, K. (1993). Teaching secondary students through their individual learning styles: A practical approach for grades 7-12. Boston: Allyn and Bakon. Fleming, G. Left-brained students. About.com, July 28, 2013. Institute for Learning Styles Research. http://www.learningstyles.gov. Kolb, D. A. (1984). Experiential learning: Experience as the source of learning and development. Englewood Cliffs, NJ: Prentice-Hall. Kolb, D. A. (1986). Learning style inventory. Boston, MA: McBer Company. Sarasin, L. C. (1999). Learning styles perspectives: impact in the classroom. WI: Atwood Publishing.

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[]Schmeck, R. (1988). Learning Strategies and Learning Styles. New York: Plenum Press. Sims, R. R., & Sims, S. J. (1995). The importance of learning styles, course design and education. Westport CT, USA: Greenwood Publishing Group, Inc. Vygotsky, L. S. (1978). Mind and society: The development of higher psychological processes (pp. 79–91). Cambridge: Harvard University Press.

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[]Chapter 43

[]Parent Teacher Association (PTA) Responses to Changing Educational Policy: A Malaysian Experience Ahmad Zabidi Abdul Razak, Kazi Enamul Hoque, Simin Ghavifekr and Norazana Mohd Nor

[]Abstract This study aims to explore on how PTA members’ respond to a changing educational policy. Data were collected through interviews with selected PTA members from two secondary schools in Kedah, Malaysia. In total, six participants were involved in this qualitative study. Data analysis was carried out through analytic categories based on hermeneutics philosophy. The findings indicate that the PTA members believed that implementation of a new educational policy is only related to school, it was also believed that some challenges emerged at school as a result of the implementation of the policy and they provide ways that can assist the school to implement the new educational policy. The findings are essential to the Ministry of Education in involving parent in the implementation of a policy as it was stated that “one of the targets of the Malaysia Education Blueprint 2013–2025 is to engage every PTA to provide input on how the school can make the national curriculum more relevant to the needs of the local community” (Ministry of Education 2012).

[]Keywords Educational policy Malaysia Parent Teacher Association implementation Secondary school Teachers

[]Policy

[]1 Introduction The involvement of PTA members in Malaysia education system is important as Umat (2000) stated that collaboration between schools and communities is seen as a major factor in ensuring that school goals can be achieved. In addition, researchers A.Z.A. Razak (&) K.E. Hoque S. Ghavifekr N.M. Nor Department of Educational Management, Planning and Policy, Faculty of Education, University of Malaya, Kuala Lumpur, Malaysia e-mail: [email protected] © Springer Science+Business Media Singapore 2016 M.A. Abdullah et al. (eds.), Regional Conference on Science, Technology and Social Sciences (RCSTSS 2014), DOI 10.1007/978-981-10-1458-1_43

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[]from the USA, for example, have identified the essential parent and community ties to local schools, which can have an influence on the efficacy of work within the instructional triangle of teacher, student, and subject matter (Scheurich et al. 2010). Furthermore, Shirley (2009) suggested that community organizations can have considerable influence on educational change, arguing that it provides an important repertoire of practices for change leaders. Considering the importance of the views of parents and community towards school situations, therefore this study aims to explore their views on the implementation of a new educational policy. The involvement of PTA members as a source of data in this study in order to obtain a wider range of perspectives and positions to assist the examination of the complex phenomena of educational policy changes, their effects on teachers and the ways they assist school to cope with the challenges as a result of the implementation of the policy. For achieving the aim, this study formulated the following objectives: (i) To investigate Parent Teacher Association (PTA) Responses to Changing Educational Policy. (ii) To find the challenges and demands that the PTA believe teachers face as a result of the implementation of educational policy. (iii) To examine the efforts of the PTAs within schools in fostering the teachers’ ability to confront the changes.

[]2 Research Methods and Methodology 2.1

[]Research Design

[]In order to investigate the responses of PTA members about the implementation of new educational policy, this study aimed to draw on the data sources that could only be obtained within a national school setting because the implementation of the educational policy changes only involved national schools. In order to get a detailed understanding of this phenomenon, this study needed to be conducted in its natural context. The research purpose and focus are in line with the purpose and characteristics of a case study. A case study is conducted to shed light on a particular phenomenon (Gall et al. 2007) and thus it involves review and collection of a substantial amount of data about the specific case selected to represent the phenomenon (Denscombe 2007; Gall et al. 2007). According to Gall et al. (1999, p. 296), researchers often conduct interviews of field participants in a case study. In this study, interviews served as the data collection method.

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[]The Criteria in Selecting Research Sites

[]Three criteria were used in selecting research sites. These were involvement of the schools in current educational policy changes in Malaysia, school location and the willingness of participants to be involved in the study. As the research is focused on the implementation of current educational policy changes in Malaysia, this study was restricted to only National Secondary Schools and did not involve Private Secondary Schools because the latter were not involved in the educational policy changes. One school in an urban area and one school in a rural area were selected for this study because, firstly, as described by Economic Planning Unit (2006), there are differences in living standards among the population in urban and rural areas. This occurs because of limited employment opportunities in rural areas as opposed to urban areas. In addition, the issue of poverty also involves the indigenous people of Malaysia, who live mainly in rural areas and are among the poorest and least educated and this is a significant challenge for teachers. The Malaysian government faces the difficulty of integrating and assimilating them within mainstream society and also providing them with equal opportunities in education (Ministry of Education 2004). Second, schools in rural areas more than those in urban areas are faced with problems such as lacking appropriate infrastructure and teaching facilities (Ministry of Education 2006). Third, many teachers in rural schools lack of appropriate levels of expertise and have had inadequate teacher training (Ministry of Education 2001a). The Ministry is having serious problems in providing experienced teachers, especially female teachers, for school placement at schools in rural areas. In trying to solve this problem, the Ministry is taking the step of transferring experienced teachers to schools in rural areas, although generally teachers are reluctant to transfer, particularly females. This situation affects the quality of teaching and learning in rural schools. If teachers are unwilling to be transferred to schools in rural areas but are forced to comply, they are unlikely to be enthusiastic about their profession. These negative feelings are likely to translate onto the students (NUTP 2005). The above discussion summarizes differences between rural and urban locations in Malaysia. These differences between rural and urban locations led the researcher to select one school from an urban area and one school from a rural area to enable the researcher to identify any differences or similarities in responses of PTA members towards educational policy changes in two those very different settings. The willingness of PTA members to participate was crucial for the researcher to embark on the study. If the researcher was to select a school in which the participants were not willing to give their support and commitment over extended period of time, it would severely limit the quality of the data to be collected. Therefore, the willingness of participants to participate was important in selecting research sites. PTA members were used as a principal source of information in addressing the research question. Because of the large numbers of PTA members in the selected

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[]schools, it was not feasible to conduct interviews with of them. Instead, a sample that reflected an appropriate cross-section of gender, their position as PTA members and years of experience as PTA members in order to provide diverse perspectives was selected. The purpose of interviewing PTA members was to find out their views about the implementation of educational policy changes.

[]2.3

[]Participating Schools

[]Two schools were identified which met the research criteria outlined previously. Hereafter, these schools are referred to as Aman Secondary School and Bersatu Secondary School respectively. Both names are pseudonyms. Aman Secondary School was located in an urban locality surrounded by an affluent neighbourhood. The PTA members numbered 12 of whom 7 were aged under 40 years while the rest were aged over 40 years. A considerable majority of the PTA members were Malay with a small number of Chinese and a very small number of Indian descents (School record, March 2013). The majority of parents had higher and middle socio-economic backgrounds and were mostly professionals, businessmen and government officers. There were also a small number of students who came from lower income groups whose parents were factory workers and farmers. Bersatu Secondary School was located in a remote rural area. The PTA members numbered 12 of whom 5 were aged under 40 years while the rest were over 40 years with the majority of them being Malay and Siamese (School record, March 2013). The majority of parents had lower socio-economic backgrounds and were mostly farmers and rubber tappers. The aboriginal parents did not have any permanent jobs. They survived by hunting in the jungle and receive welfare payments from the Malaysian Government. There were also a small number of students who came from middle income groups whose parents were mostly teachers and staff for that school and schools in the surrounding area.

[]2.4

[]Negotiating Research Access and Entering the Field

[]This section focuses upon the outline of the processes that were used in order to get participant involvement in the study. In the process of negotiating and entering the field, the researcher contacted the school to request a meeting with the Principal to fully inform him about the study and to begin building a trusting relationship. At the meeting he was presented with all the documents related to the study including the letter requesting access, the information sheet, the letter of agreement to provide access to the school, the consent form and was given a brief overview and time

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[]frame for conducting the research. He promptly agreed to give permission to contact PTA members. In selecting members of the PTA from Aman Secondary School, after obtaining the Principal’s permission to directly contact the Chairperson of the PTA, the researcher made an appointment with him. At that meeting he was given the information sheet and consent form and a brief overview of the study, the procedures, their possible roles and the time requirements. He gave permission to have access to the PTA list of committee members in the school and from the list, three potential interviewees from the school PTA were randomly selected. After providing them with the same documents and an explanation of the procedure they willingly agreed to participate and be interviewed. Table 1 shows the participants’ profile from Aman Secondary School. All the participants are identified by pseudonyms. Briefly in Aman School, there were 2 male members of the PTA and 1 female. Their experience as members of the PTA, ranged from 10 to 15 years. Much of the same procedure was followed to enter the Bersatu Secondary School. The researcher went to the school and met the Assistant Principal (Academic) as the Principal was on medical leave. The researcher gave an explanation of the study whereupon the Assistant Principal expressed his delight because, as he stated, up until then, there had been no researcher or lecturer from any university in Malaysia who had visited their school and discussed with them the challenges that the teachers in the school were facing. Even though the Assistant Principal had given his consent to conduct the study in his school, as an outsider, the researcher believed it was necessary to meet the Principal before commencing the study. In a meeting the following day with the Principal, he gave his permission to conduct the study in the school and to approach other relevant personnel in the school. In selecting members of the PTA from Bersatu Secondary School, the Assistant Principal (Students Affairs) volunteered to contact the Chairperson of the PTA because they were very close and worked together to handle student issues at the school such as truancy. Individual appointments were made with the Chairperson and the same procedures were applied in inviting him and selecting members of the PTA in the school to participate in the study. They willingly agreed to be involved (Table 2). There were 2 male members of the PTA and 1 female. Their experience as members of the PTA ranged from 5 to 10 years.

[]Table 1 The participants’ profile from Aman Secondary School No.

[]Name (pseudonym)

[]Gender

[]Experience (years)

[]Positions

[]1 2 3

[]Saiful Noni Falah

[]Male Female Male

[]15 10 10

[]President Secretary Treasury

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[]Table 2 The participants’ profile from Bersatu Secondary School No.

[]Name (pseudonym)

[]Gender

[]Experience (years)

[]Positions

[]1 2 3

[]Mubin Kamila Nasir

[]Male Female Male

[]10 5 10

[]President Secretary Treasury

[]2.5

[]Data Analysis

[]In the analysis of interviews with all participants in the study, the researcher referred to the participants’ point of view and tried to represent their views as they saw it and reported they experienced it. Close attention was paid to emerging themes and patterns. The first step taken in identifying themes from the interview transcripts was to keep the research objectives in mind while reading the transcripts. Viewing each piece of data, paragraph by paragraph, sentence by sentence and identifying which of the objectives that particular paragraph or sentence(s) addressed. Draft the writing up of the findings in relation to preliminary identification of themes from the data from both schools commenced at that point. Subsequently, in order to ensure that no significant information contained in the interview transcripts was overlooked, the researcher reconsidered at length the data from each transcript that had not been included in the previous script. The content of this draft followed hunches, ideas and thoughts expressing some of the concepts, pictures and insights which emerged as the analysis was worked through. Having satisfied a degree of confidence with the analysis and believing that the researcher had made optimum use of the information from the interview transcripts, the new findings and the previous notations were combined to form themes applicable to the study. During this process, attempts were made to weave information, insights and thoughts to see whether common themes would emerge leading towards a broader picture which might have a significant impact on the study. The final products from this analysis were the researcher identified and listed several analytical themes that were answering the research questions. Hermeneutic Philosophy was used in analyzing the data regarding the response of PTA members for the implementation of educational policy. According to Barrett et al. (2011), Hermeneutic philosophy emphasizes the theoretical interpretation of the experience of how we can meet the challenges of this world and thus be able to generalize to understand the problems faced. Hermeneutic philosophy can be used to explain the actions of individuals and their needs in the organization. Therefore, this philosophy can be used to understand how PTA members can response to the implementation of a new educational policy.

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[]3 Findings 3.1

[]Parent Teacher Association (PTA) Responses to Changing Educational Policy

[]The discussion in this section reports the findings of interviews with six members of PTAs—three each from the Aman and Bersatu schools. The interviews aimed to identify any ideas that the PTAs response during the implementation of national educational policy. This section therefore looks at the perceptions of the PTA members in relation to the implementation of the policy; secondly, the challenges and demands they considered were facing teachers as a result of the implementation of the policy; and thirdly, the strategies used by them in order to assist teachers to cope.

[]3.1.1

[]Perceptions of the PTA in Relation to the Implementation of National Educational Policy

[]Even though they were not involved directly in the implementation of the policies, the PTA members’ interpretation of policy implementation might reasonably be expected to represent their thinking and understanding of the educational policies. The theme emerged in the members of PTA’s comments about the policies implementation: factors that assisted in the implementation of the policies.

[]3.1.2

[]Factors that Assisted in the Implementation of National Educational Policy

[]All members of the PTA from Aman School and several from Bersatu School emphasized the important role of Senior Management Teams (SMT) and teachers in ensuring the successful implementation of educational policy.

[]The Role of Senior Management Teams One of the PTA members from Aman School noted, “this Principal, he did the English year project and he explained his vision. So the teachers saw the activity and this motivated them to implement the policy” (Noni, Aman School, p. 4). In contrast, at Bersatu School, even though one member of the PTA believed that the role of the SMT could assist in the success of the implementation of national educational policy, he did not highlight any programmes initiated by the SMT. However, he emphasized that the SMT “is democratic and empowers teachers to implement the education policy based on their preferences” (Kamila, Bersatu School, p. 5–6). He added that, with SMT members having such attitudes, teachers

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[]felt happy to expand their ideas to implement the national educational policy and they carried out the duties without pressure.

[]The Role of Teachers All members of the PTA from Aman School and a number from Bersatu School said that teachers also had roles to assist the successful implementation of policy. One noted, “I still believe teachers in this school can implement the policy successfully. From my observations, I saw that they worked so hard, towards the success of this policy implementation” (Falah, Aman school, p. 6). Almost all members of the PTA who were involved in this study emphasized, however, that only teachers who worked diligently would be able to help in the successful implementation of national educational policy.

[]3.2

[]The Challenges and Demands that the PTA Believed Teachers Faced as a Result of the Implementation of Educational Policy

[]The PTAs believed that teachers were facing several challenges as a result of the implementation of national educational policy, including pressure from parents, teachers themselves and students.

[]3.2.1

[]Challenges from Parents

[]Analysis of the interviews identified three issues related to parents which were: the issue of developing parent knowledge about new educational policy; parents who were too dependent on the school; and a lack of cooperation from parents. The first topic is the difficulties that the PTA believed that teachers had with parent’s understanding of educational policy and their implementation. All three members of the PTA from Aman School but none from Bersatu School raised the issue. One of them said they faced questions in relation to parents’ understanding about any educational policies because “they always said that the new policy are not good and difficult to implement even though they have yet to see the full implementation of the policy” (Saiful, Aman School, p. 5). In addition, Noni said that some parents had little understanding of the policy and the PTA had little or no opportunity to explain it to them. She added that “we want to explain the policy implemented by the government to parents in meetings with them, but their attendance is really small. So, that is the challenge that teachers have to face because parents had limited knowledge about policy implementation” (Noni, Aman School, p. 2).

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[]The second debate from some parents was that they were too dependent on the school in all matters related to their children both in academic terms and in relation to disciplinary matters. Several members of the PTA (from each school) commented on this. They explained that most of the parents did not really involve themselves in their child’s studies. Once they put their child into school they did not become involved in anything else. They put all the responsibility on the school. One of them maintained that “the parents do not want to do anything to help their school” (Mubin, Bersatu School, p. 3). In addition, it was claimed that due to a lack of attention from the parents, “their children created problems at school and did not complete their homework and these attitudes interfered with teachers carrying out their work smoothly” (Nasir, Bersatu School, p. 2). At Aman School a PTA member said that they had made extra classes for Science and Mathematics after school hours but not many students attended because as he said, “I heard from teachers that parents do not care whether their children want to come to the extra classes or not” (Saiful, Aman School, p. 9). The next issue raised was a lack of cooperation and support for the school from parents. More members of PTA from Bersatu School than from Aman School raised this issue. Mubin said that “we always invited parents to meetings with us to discuss their children but they didn’t attend and it seemed they didn’t care about their children at school” (Mubin, Bersatu School, p. 2). Another PTA member explained that when the teachers get involved in disciplinary matters “the parents will get mad and blame the school for punishing their child. How can teachers possibly teach the students without any help from the parents themselves?” (Nasir, Bersatu School, p. 2). Several members of PTA from Bersatu School said that the parents were also less cooperative in paying the PTA fees. Mubin said that “we have problems helping funding the school to run their activities but some parents always delayed paying the fee” (Mubin, Bersatu School, p. 3) and Nasir said, “when they were asked to pay, parents will get mad and they will argue about it. Money is the biggest problem” (Nasir, Bersatu School, p. 2). The discussion in the next section relates to the different challenges faced by teachers raised by the PTA of the two schools.

[]3.2.2

[]Challenges from Teachers

[]All members of the PTA from Aman School said that they confronted demands in the implementation of national educational policies resulting from teacher issues. Several of them believed that the challenges came from teachers’ preparation for the implementation of national educational policies. One of them said “Are they ready enough to implement the new educational policies?” (Saiful, Aman School, p. 7). In addition another PTA member stated “As a father, my main challenge in facing a new educational policy issue is teachers; they need to be trained well enough. I don’t want my kids to be guinea pigs but are the teachers prepared for it?” (Falah, Aman School, p. 6).

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[]Additionally, Noni believed that the implementation of national educational policy also became a challenge for teachers to implement because “teachers are burdened with too much work, not only teaching, but also having to do many more jobs until there is not enough time for the teachers” (Noni, Aman School, p. 3).

[]3.2.3

[]Challenges from Students

[]Several members of the PTA from Bersatu School raised questions in relation to the implementation of national educational policy presented by students who were not interested in their studies. He noted, “the teachers have to force them and have to work hard and have to give 100 % to the students. It’s like a hammer and nails. You have to hit many times for them to do the work” (Kamila, Bersatu School, p. 1). Moreover, he explained that the situation with some students who obtained good results and subsequently transferred to better schools occurred often, particularly from schools with poor academic performances such as this school. Therefore the school found it difficult to implement policy with poor performing students who had little interest in learning and it was certainly a challenge for teachers in low-performing schools to implement a new educational policy.

[]3.3

[]Efforts of the PTAs Within Schools in Fostering the Teachers’ Ability to Confront the Changes

[]There were two ways PTAs supported teachers; they provided additional funding for their school and they also helped in establishing links between parents and the school.

[]3.3.1

[]Working in Unison with Schools: Providing Additional Funding for Schools

[]PTA members from both schools who were involved in this study had the view that the success of the schools was highly dependent on internal factors in the school, and also external factors which included the PTAs. Along these lines Falah said that “we have to work together as one team because if we didn’t have cooperation amongst us, it was impossible to shape and produce outstanding students” (Falah, Aman School, p. 1). He added that his responsibility was to collect PTA fees from parents and then he spent the money to provide for students’ activities such as extra classes. For example he said that they tried to help teachers to have more time for teaching by providing an amount of money to conduct extra classes and “this reduces the pressure on them to finish the syllabus during school hours, especially

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[]for the teaching and learning of Science and Mathematics in English because they need more time to teach in English” (Falah, Aman School, p. 2). In addition, “We give allowances to teachers who are involved in teaching an extra class and we help the school to deliver additional programmes to encourage students in using the English Language by donating some money to English Year Programmes” (Saiful, Aman School, p. 1). In Bersatu school, Mubin noted that when the school asked for money, they never rejected any application from the school because “we want to reduce the school burden” (Mubin, Bersatu School, p. 1). The members of PTAs emphasized that they attempted to understand teacher’s needs in the implementation of the policies and tried to meet those needs.

[]3.3.2

[]Helping to Establish Links Between Parents and the School

[]All members of the PTA from both schools who were involved in this study also spoke about this matter. Noni from Aman School explained that the PTA try to provide activities that can increase friendly relationships between the school and the parents. She said, for example, in order to attract the parents to come to the meetings, “we prepare gifts for the parents, so they will wait till the end. So we can attract them to come to the meeting and then during the meeting we can explain a new policy” (Noni, Aman School, p. 3). At Bersatu School, the PTA members tried to establish good relationships between school and parents. They used informal meetings outside school to listen to parents’ thoughts and ideas and at the same time as one of them said, “we can also explain to other parents what actually happens in the school as we know it very well. We are also trying to make them get involved with school activities” (Nasir, Bersatu School, p. 5). He said that he believed the parents from rural areas were happy to have informal meetings rather than formal. Therefore, the PTA members also endeavoured to establish cordial relationships with the parents. As such the parents were happy to contribute to the school.

[]4 Discussion Findings of the Study This section discusses the findings related to the views of the PTA members on the implementation of national educational policy, the challenges they believed teachers have faced in the implementation of the policy and the ways that can assist teachers to implement new educational policy. The discussion of the findings as follow:

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[]The Role of Senior Management Teams and Teachers in Ensuring Successful Policy Implementation

[]These findings revealed that PTA members recognized the role of school management in providing programmes relating to a policy in schools that empower teachers to implement such policy and that this could ensure its success. Similarly, they recognized that teachers who were diligent also helped to advance the implementation of policy. Briefly the results showed that the members of PTAs thought that only members of SMTs and teachers had a role in ensuring the successful implementation of a policy whereas in Profession Circular number 5/2001 (Ministry of Education 2001b) it was clearly emphasized that the PTA was established in all government schools with an aim of encouraging unity between parents and teachers in the school. In addition, according to Esa et al. (2010) the PTA’s involvement should include assistance in management and administration, together with improvement in students’ performance in curricula, co-curriculum, contentment, welfare and discipline. In contrast, the findings of this study showed that parents handed their children’s education to the school alone. The discussions on this matter earlier in sections regarding the teachers and school management have also confirmed this finding.

[]4.2

[]The Challenge of Informing Parents About New Educational Policies and Obtaining Their Cooperation

[]All the PTA members from Aman School stated that the main challenge arose from the parents not understanding their role. PTA members also said that if parents understood more about such a policy, they would become more involved in the implementation of policy rather than just handing over the matter to teachers. However, it was difficult to identify research that discusses this issue. Most findings in studies relating to parental involvement with schools referred to the general difficulties that schools faced in getting parent involvement in school activities (Cheng and Tam 2007; Esa et al. 2010; Lupton 2005) rather than focusing upon implementing national educational policies. There were a number of findings relating to parental involvement pointing to a variety of positive student academic outcomes including higher grade-point averages, (Gutman and Midgley 2000) increased achievement in reading (Sénéchal and LeFevre 2002) and proficiency in mathematics (Izzo et al. 1999). Positive student behavioural outcomes associated with parent involvement include increased ability to self-regulate behaviour (Brody et al. 1999) and higher levels of social skills (McWayne et al. 2004). Therefore researchers should continue to explore how to develop parents understanding about educational policy, how to encourage them to become more fully involved in the implementation of a particular policy and what is

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[]the relationship between parental involvement and successful policy implementation in specific cases. Members of the PTA from both schools also believed that teachers at their schools faced challenges due to a lack of cooperation from parents. This finding is consistent with a study by Lupton (2005, p. 595) who found that “parental participation was also low, with fewer than half of parents attending consultation evenings”. Additionally, these findings did not show any difference between the levels of parental involvement in school activities even though the school in the urban area was ethnically mixed and the school in the rural area was predominantly Malays. However the study by Lupton indicated that in the schools with predominantly white populations, his participants reported that many parents were disinterested in education, and a minority was hostile to the school. However, his study also showed that a more positive attitude from parents was reported in the schools in ethnically mixed areas. As the research did not show any difference, such studies should be continued, especially in Malaysia, to determine whether there is a relationship between parents’ ethnicity and the level of cooperation with the school.

[]4.2.1

[]Teacher Issues

[]Members of the PTA had concerns about the quality of the preparation teachers received for the implementation of national education policy, particularly the teaching of Science and Mathematics in English. They were concerned about teachers’ readiness for implementing the national education policy in general. The same issue was raised by Rice et al. (2009) who examined the issue of preparing teachers for policy implementation in the USA. They found that policy makers faced challenges in increasing the number of qualified teacher candidates, recruiting teachers to the schools where they were needed most, distributing teachers in equitable and efficient ways, and retaining qualified teachers over time in order to fulfil the requirements for implementing new policies. Many of the issues raised by Rice et al. were similar to what is currently happening in Malaysia in relation to the production of quality teachers who are able to assist schools in achieving the government’s policies. Member of the PTA from Aman School also believed that teachers faced challenges in implementing the new education policy because they had so many other responsibilities. Beckmann and Minaar (2010) investigated middle-class parent expectations of teacher workloads from a South African labour law perspective. Their findings showed that teachers were burdened with various workloads which included teaching responsibilities, classroom management, extra-curricular activities, pastoral and administrative duties as well as professional development. Their study listed in detail the various tasks of teachers, compared to this research that only stated that teachers were burdened with many tasks without detailed explanation. However their study focused on teachers’ daily work whereas this study only concentrated on the challenges that teachers faced

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[]during the implementation of national educational policies. This study demonstrates only that parents recognize the challenges that teachers face in implementing education policies due to a variety of tasks; they did not describe in detail the workload compared to the study by Beckmann and Minaar. Thus, a study could usefully be carried out to identify, in detail, the workload that can be a challenge for teachers in implementing education policy and parents’ recognition of this.

[]4.2.2

[]Student Issues

[]PTA members claimed that teachers faced challenges in implementing national education policy because students lacked of interest in their studies. Research findings from Dotterer et al. (2009) also showed that parents in their study claimed that students who are not interested in studying create difficulties for teachers. However, their findings have not addressed the challenges teachers face when implementing education policy, focusing rather on teachers improving the academic performance of the students. Even though this study and the study by Dotterer et al. showed different implications for teachers due to students’ lack of interest in their work, this issue needs to be addressed by policy makers because as Eccles, Wigfield and Schiefele (1998 cited in Dotterer et al. 2009, p. 509) stated “students’ interest in academia is an important component of academic motivation that facilitates learning”. Therefore if they were not interested in their study it became a challenge for teachers to implement an education policy that was linked to teaching. In addition, members of PTAs also believed that teachers faced the difficulties of students who obtained good results transferring from a lower performing school to a higher performing one. The majority of students that remained at the school were reportedly students who had no interest in learning and had low academic ability. As a result, the teachers reportedly found it difficult to implement a policy such as the teaching of Science and Mathematics in English with these students. The findings of this study showed that students who obtained good results did transfer to other schools, but a study by Garcia et al. (2008, p. 212) obtained different results when they found that “parents of students with lower achievement levels on standardized tests are entering the public school market and making an unnecessary decision to transfer schools”. Even though there were differing levels of achievement among transferred students, my findings showed that the parents had switched their children to other schools in order to achieve better results. Garcia and his colleagues also found that the “parents make this choice in the belief that the child will have a better chance of success in a different environment” (ibid, p. 212). This discussion shows that the parents emphasized their children’s performance in the examination and they were willing to transfer their child to another school in order to ensure that their goals would be achieved. Teachers had to face the situation that these movements may disturb their work, including the implementation of education policies.

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[]The Actions of PTA Members in Assisting Schools to Cope with Challenges in Executing New Educational Policy

[]The third issue to be discussed relates to findings in relation to methods that members of PTAs have applied in working with schools in order to assist schools to cope with the challenges of the implementation of national educational policies. The results revealed that members of PTAs supported schools with additional funding for the school and helped to establish links between parents and the schools.

[]4.3.1

[]Providing Additional Funding for Schools

[]Most PTA members said that a major role they could play in assisting the schools in implementing education policies was to provide financial assistance for the implementation of additional activities related to education policy such as providing extra time for teaching (extra classes) by providing money to buy teaching aids and giving allowances to teachers who were involved in these activities. These extra classes help teachers by giving them more time for teaching and indirectly reduce the burden on teachers of completing the syllabus during school hours especially with the teaching and learning of Science and Mathematics in English which requires more time. Several studies also found that the main contribution from PTA to schools was they provided financial aid to the schools in order to materialize the school programmes (Esa et al. 2010; Razali 2007). The majority of PTA members who raised this issue were from Aman School. At Bersatu School, the PTA members were less specific and only expressed in general that they provided financial assistance to their school upon request. It could be that this reflects the difficulty of collecting PTA fees in rural schools. The previous studies showed that PTAs provided financial support to promote school activities. However, the question is what is the best way that the PTA of schools in rural areas may get financial (or alternative) support from underprivileged parents?

[]4.3.2

[]Helping to Establish Links Between Parents and the School

[]Various methods have been attempted by the PTAs at Aman School and Bersatu School to attract parents in helping teachers ensure the success of school activities including the implementation of policies related to education. Research has clearly shown that strong parent–teacher relationships lead to increased parental involvement (Hoover-Dempsey and Sandler 1997; Lawson 2003). Many previous studies have indicated that the relationship between school and parents is important and may lead to positive school outcomes. However Knopf and Swick (2007) claimed that many educators found it extremely difficult to facilitate

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[]parental involvement at levels that would result in significant changes. In addition, Lawson (2003) reported that teachers and parents have differing ideas about parental involvement. Teachers were more school-based in their thinking, while parents have a broader community view of their involvement. These divergent views of the nature of parent involvement and the role parents should play in the process of education could lead to conflict and continued misunderstanding. Furthermore, in Malaysia, Esa et al. (2010) believed that there was limited time to set up a discussion between parents and teachers because both parents were working full time. This would certainly make it more difficult for the PTA to establish a close relationship between parents and teachers. Several studies identified strategies to build strong relationships between parents and schools such as making sure the initial contact with parents is a positive one (Seligman and Darling 2007), and communicating with parents consistently through a variety of means (Swick and Bailey 2004). This study showed that the PTA members at Aman School had prepared gifts for parents who attended the PTA meeting to establish a close relationship between the school and parents. The PTA at Bersatu School used informal meetings outside school to listen to parent’s thoughts and at the same time explain situations at the school. There is no evidence that either of these activities made a major contribution to improving relationships between school staff and PTA members. Therefore the number of studies regarding this issue needs to be increased because if the parents are to gain a better understanding of how they can support teachers, it is likely that they will be better able to make a substantial contribution to the successful implementation of a policy.

[]5 Conclusion The above discussion consisted of three sections. The first section focused upon perceptions of the members of the PTA regarding the implementation of the policies, the second section described the challenges they believed teachers faced as a result of the implementation of the policies and the third section discussed the strategies used by them. One theme emerged about PTA members’ perceptions about the implementation of educational policy which is they believed that the school management and teachers had played vital roles in terms of successful implementation of the policy. They also believed that teachers were facing several issues as a result of the implementation of the policies, including challenges from parents, teachers and students. The researcher found there were the two methods utilised by the PTAs from both schools in an attempt to assist teachers in the implementation of the policies. These were that they provided additional funding for their school and they also helped to establish links between parents and the school.

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[]6 Implication of the Findings of the Study There are several implications for secondary schooling policy and practice that can be derived from the findings of this study. One finding from the study showed that the schools faced difficulties in informing parents about the policy being implemented. The parents were also reluctant to become involved in the implementation of educational policy and delegated this responsibility fully to schools. Therefore, the Leadership Programme Providers especially from the Ministry of Education or Teacher Training Institutions should also provide for educational leaders some training that can help them to involve parents more systematically with the implementation of policies in schools. The researcher also suggests to the school leaders to identify suitable methods to involve parents in facilitating the implementation of policies at their schools. These need to be appropriate to the particular school situation. In this study, the majority of parents in the urban area had good academic backgrounds, but they were too busy with their work to become involved in the school. In contrast, most of the parents in the rural area had more time to become involved at school but they generally had low academic records which made it difficult for them to understand the intricacies of educational policies. In addition, some studies need to be carried out to more fully explore parents’ understanding about educational policy, how to encourage them to become more fully involved in the implementation of a policy and what is the relationship between parental involvement and successful policy implementation. Studies concerning the role of the PTA in assisting schools and teachers, particularly in the implementation of educational policies should be considered because, apart from this study, findings of previous studies have shown that PTA members may help teachers in general but that their help is not necessarily focused on the implementation of educational policies. As a result of this small-scale study, a little more is known about the way in which PTA members in urban and rural secondary schools in Malaysia respond to the implementation of new educational policy. The findings are useful at several levels and provide a sound basis for future research, policy development and the practice of PTA members to assist school to implement educational as on the target of the National Blueprint 2013-2015. The success of education policy development and implementation in Malaysia will be better informed as a result of this study and future research that builds on its findings.

[]References Barret, F. J., Powley, E. H., & Pearce, B. (2011). Hermeneutic Philosophy and Organizational Theory. Research in Sociology Organizations, 32, 181–213. Beckmann, J., & Minaar, L. (2010). The expectations of parent members of school governing bodies regarding teacher workload in South African schools. Africa Education Review, 7(1), 139–155.

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[]Brody, G. H., Flor, D. L., & Gibson, N. M. (1999). Linking maternal efficacy beliefs, developmental goals, parenting practices, and child competence in rural single parent African American families. Child Development, 70(5), 1197–1208. Cheng, Y. C., & Tam, W. (2007). School effectiveness and improvement in Asia: Three waves, nine trends and challenges. In International Handbook of School Effectiveness and Improvement (pp. 245–268). Denscombe, M. (2007). The good research guide: For small-scale social research projects (3rd ed.). Maidenhead, England, New York: Open University Press. Dotterer, A. M., McHale, S. M., & Crouter, A. C. (2009). The development and correlates of academic interests from childhood through adolescence. Journal of Educational Psychology, 101(2), 509. Eccles, J. S., Wigfield, S., & Schiefele, U. (1998). Motivation to succeed. In W. Damon (Series Ed.) & N. Eisenberg (Vol. Ed.), Handbook of child psychology: Vol. 3. Social emotional, and personality development (pp. 1017-1095). New York: Wiley. Economic Planning Unit, P. M. D. (2006). Ninth Malaysia Plan 2006–2010. Putrajaya. Esa, A., Yasak, Z., & Omar, Z. (2010). Teachers’ perception on the relationship between parents and school. US-China Education Review, 7(5), 47–54. Gall, J. P., Gall, M. D., & Borg, W. R. (1999). Applying Educational research: A practical guiede (4th ed.). New York, USA: Longman. Gall, M. D., Gall, J. P., & Borg, W. R. (2007). Educational research: An introduction (8th ed.). Boston: Pearson/Allyn & Bacon. Garcia, D. R., McIlroy, L., & Barber, R. T. (2008). Starting behind: A comparative analysis of the academic standing of students entering charter schools*. Social Science Quarterly, 89(1), 199– 216. Gutman, L. M., & Midgley, C. (2000). The role of protective factors in supporting the academic achievement of poor African American students during the middle school transition. Journal of Youth and Adolescence, 29(2), 223–249. Hoover-Dempsey, K. V., & Sandler, H. M. (1997). Why do parents become involved in their children’s education? Review of Educational Research, 67(1), 3. Izzo, C. V., Weissberg, R. P., Kasprow, W. J., & Fendrich, M. (1999). A longitudinal assessment of teacher perceptions of parent involvement in children’s education and school performance. American Journal of Community Psychology, 27(6), 817–839. Knopf, H. T., & Swick, K. J. (2007). How parents feel about their child’s teacher/school: Implications for early childhood professionals. Early Childhood Education Journal, 34(4), 291–296. Lawson, M. A. (2003). School-family relations in context. Urban Education, 38(1), 77. Lupton, R. (2005). Social justice and school improvement: Improving the quality of schooling in the poorest neighbourhoods. British Educational Research Journal, 31(5), 589–604. doi:10. 1080/01411920500240759. McWayne, C., Fantuzzo, J., Cohen, H. L., & Sekino, Y. (2004). A multivariate examination of parent involvement and the social and academic competencies of urban kindergarten children. Psychology in the Schools, 41(3), 363–377. Ministry of Education. (2001a). Education Development Plan 2001–2010. Putrajaya: Ministry of Education, Malaysia. Ministry of Education. (2001b). Letter of professional circular (No 5/2001). Kuala Lumpur: Ministry of Education. Ministry of Education. (2004). The Development of Education. National Report of Malaysia. Ministry of Education, Malaysia: Putrajaya. Ministry of Education. (2006). The National Blueprint 2006–2010. Putrajaya: Ministry of Education, Malaysia. Ministry of Education. (2012). Preliminary report—Executive summary Malaysia education blueprint 2013–2015. Malaysia: Putrajaya. National Union of Teaching Profession. (2005). Teachers fret over posting. Retrieved August 30, 2007, from www.nutp.org.

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[]Razali, M. F. (2007). Fully utilized parent and teacher association for school success. In Educator (pp. 44–45). Rice, J. K., Roellke, C., Sparks, D., & Kolbe, T. (2009). Piecing together the teacher policy landscape: A policy problem typology. Teachers College Record, 111(2), 511–546. Scheurich, J. J., Goddard, R. D., Skrla, L., McKenzie, K. B., & Youngs, P. (2010). The most important research on Urban School reform in the past decade? Educational Researcher, 39(9), 665. Seligman, M., & Darling, R. B. (2007). Ordinary families, special children: A systems approach to childhood disability. New York: The Guilford Press. Sénéchal, M., & LeFevre, J. A. (2002). Parental involvement in the development of children’s reading skill: A five year longitudinal study. Child Development, 73(2), 445–460. Shirley, D. (2009). Community organizing and educational change: A reconnaissance. Journal of Educational Change, 10(2), 229–237. Swick, K. J., & Bailey, L. B. (2004). Communicating effectively with parents and families who are homeless. Early Childhood Education Journal, 32(3), 211–215. Umat, J. (2000). Web-Based dissemination and utilization of learning resources: TiGERWeb Project. Paper Presented at The Asia and the Pacific Seminar/Workshop on Educational Technology: Seminar/Workshop on ‘The Development and the Utilization of a Learning Resources Package to Promote the Open and Flexible Lifelong Learning’—Six Programming Cycle of APEID Activities, Tokyo Gakugei University, Japan.

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[]Chapter 44

[]Validating ESP Test Using Weir’s Socio-cognitive Framework for Validating Language Tests Fahima Mohamed Bannur, Saidatul Akmar Zainal Abidin and Asiah Haji Jamil Abstract Validating language tests have not yet received sufficient attention from researchers and language teaching professionals in many universities. Students at universities need specific sets of language skills for success in their educational study and future careers. Such skills can be found in English for Specific Purpose (ESP) courses where English is tested within a specific context, such as Engineering in the sciences and Law in the social sciences. The focus on the validity event for testing ESP arose from the need to find a systematic and efficient method which will enable test developers to produce more effective tests. Testing ESP requires knowledge about candidates’ needs and goals of a course; it often applies the use of authentic materials and test tasks specific to the course context. This paper discusses the importance of a validation process in testing ESP reading, adopting Weir’s (Language testing and validation: An evidence-based approach. Palgrave Macmillan, Basingstoke, 2005) socio-cognitive framework for validating reading tests. The framework is comprehensive and ensures a meaningful test validity process and data gathering in all its stages. It enables validating the ESP test in three stages: before, during, and after the test administration. Data gathered from the validation study help in pointing problems such as test format, content, rating process, and administrative elements such as fairness and security. Keywords ESP

[]Reading test Socio-cognitive framework Validation

[]F.M. Bannur (&) S.A. Zainal Abidin A.H. Jamil Academy of Language Studies, Universiti Teknologi MARA, 40450 Shah Alam, Selangor, Malaysia e-mail: [email protected] S.A. Zainal Abidin e-mail: [email protected] A.H. Jamil e-mail: [email protected] © Springer Science+Business Media Singapore 2016 M.A. Abdullah et al. (eds.), Regional Conference on Science, Technology and Social Sciences (RCSTSS 2014), DOI 10.1007/978-981-10-1458-1_44

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[]1 Introduction The testing era has shifted from the period that focused on memorization and structural forms (usage) to an emphasis on communicative tests using language in authentic situations (use) especially in dealing with ESP context. In other words, tests that stress seriously on the language need to be contextualized and purposive to be used naturally in communication. Since, ESP students need to master English in specific areas of study and for future career, the need for communicative tasks has become pertinent in teaching and testing English as a foreign language (FL) in which all skills are required to achieve these outcomes (listening, speaking, reading, and writing). Nevertheless, many ESP students are still taught and examined in a traditional method where instructors still focus on testing usage of language (form) and vocabulary rather than language (use). Therefore, these tests are unable to reflect students’ real performance. Hence, these tests need to be validated to meet ESP course aims as well as student’s needs in which an ESP communicative test can be adopted as a safe valve to overcome ESP tests’ problems. Therefore, this paper puts an emphasis on the inevitability for validating ESP tests at universities to cope with modern, valid, and reliable tests adopting Weir’s (2005) socio-cognitive framework for validating reading tests. The core question addressed to be investigated throughout this paper is: • Can an operationalized framework for validating reading tests provide an evidential basis for validating a reading test under the ESP domain in light of the communicative approach? The motivation behind this paper is due to the fact that; to date not much research has been done in the field of ESP testing where problems in testing matters have not been addressed. Systematic and more professional test development processes are needed to improve test quality and validity. Moreover, the aspiration behind the paper is to ensure that ESP tests at the university level are capable to assess students’ real performance. Above and beyond this, the paper looks at the application of the framework for reading test validation (Weir 2005) in validating the ESP test, because the ESP test depends mostly on the reading materials. However, due to the framework’s length, the paper deals with just the first three components of the framework (context, theory-based and scoring validity) that represent the construct.

[]2 Review of Literature 2.1

[]Testing of Reading and the ESP Field

[]To many teachers, testers, test developers, and researchers testing reading occupies a significant place in the language test. Reading tests assess students’ ability in reading. Alderson (2000) argues that the results of the reading test can be

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[]interpreted as indicating candidates’ weaknesses and strengths, the teacher’s qualification, and weaknesses of the course. Since, testers cannot use all course content in the reading test, they must be selective where considerable samples can be represented in the test. The attainable purpose behind testing reading is to assist candidates and push them to read and comprehend EL in different real contexts to master it accurately. To regenerate meaning; the reader needs to interact positively with the ideas and language presented in the reading text by the text writer as a producer. Actually, there is a real interaction between ideas and vocabulary presented in the text and the ideas and vocabulary of the reader as a receiver (writer– reader relation). The challenge of constructing a reading test is how to vary the reading material in light of the purpose for which it is being read and tested. Various skills and strategies are involved in testing reading. The term ‘strategies’ is “used for conscious problem-solving activities” and that of ‘skills’ “for automatized abilities performed largely subconsciously” (Urquhart and Weir 2014). Further, they offer a detailed description about different reading skills and strategies such as: (i) skimming: refers to reading for gist (macro-structure) to find out what is the text about. (ii) Search reading: refers to locating information needed to answer the questions. (iii) Scanning: reading selectively; refers to search and find specific information. (iv) Careful reading: refers to reading in detail to handle the majority of information about the text. However, as Weir (2005) indicates, these skills and strategies are “still theoretically constructs, with only a hypothesized existence.” These skills are still in need to be investigated empirically to show their impact on reading proficiency. Further, most universities and institutions put a great emphasis on developing teaching and testing English for Specific Purposes (ESP). As a result, ESP has grown to be as a means that considers students’ needs to learn English and how to use it in their specified fields and real life communication. There are different fields which require ESP to achieve special purposes related to a certain field such as English for commerce and economic purposes, English for tourism, English for medical purposes, English for engineering, and English for law. Thus, there has been a great emphasis on the use of the communicative approach in teaching and testing ESP because both of them concern with language use in real situations. To reach all aims behind teaching and testing ESP, teaching and testing procedures and the relationship between them need to be discussed and evaluated regularly bearing in minds the course objectives and content and students’ real needs. A clear definition of (ESP) was presented by Hutchinson and Waters (1987); “an approach to language teaching in which all decisions as to content and method are based on the learner’s reason for learning.” According to Anthony (1997), a more precise definition was given describing the ESP as “the teaching of English used in academic studies or the teaching of English for vocational or professional purpose.” ESP is simply seen as “an ‘approach’ to teaching.” The ESP course puts great emphasis on using language in context. It deals with subjects in relation with students’ wishes and needs. Lorenzo (2005) clarifies that, the ESP concentrates more on language in context (use) than on just teaching language’s grammatical structures (usage). Fiorito (2005) claims that, the ESP

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[]program might focus on the most important skill for students according to their needs. Since, ESP deals with specific purposes for students, the course must be relevant to them. Chen (2006) puts an emphasis on the teaching of both English for Specific Purposes (ESP) and English for General Purposes (EGP) courses because EGP courses are needed for general language knowledge as grammatical functions and acquisition skills which can be regarded the base for ESP subject. To ensure the success of ESP courses, students must have a mastery of EGP. Additionally, the task of designing an ESP course needs to put into consideration certain issues; first, analyzing the learner’s specific needs. Second, the realistic goals and objectives need to be determined. Finally, integrating grammatical functions and the abilities needed for future communication and assessment and evaluation, (Gao 2007). Moreover, testing, evaluation, analysis, and validation are highly recommended in the ESP field, (Brown 2001; Richards 1990 cited in Chen 2009) reveal that, the ESP curriculum requires identifying objectives, syllabus design, methodology, and testing and evaluation. According to this view, testing and evaluation are conducted in comparable with program content and objectives to identify the instructors’ proficient level and students’ linguistic proficiency of ESP. It also requires variation in the stylistic features and using various types of testing to test ESP with regard to the implemented teaching method. It is mainly concerned with assessing particular uses of English among a specified specialized group of test takers. The traditional techniques such as quizzes, midterm, and final examinations are still used widely in testing and evaluating students. Moreover, evaluation and analysis are required in the ESP tests to examine and discover what students already know and what they need behind testing ESP, therefore, it is important to conduct test analysis and validation. Hence, the evaluation and analysis of ESP tests motivate instructors, testers, and researchers toward building tests based on authentic language situations that strengthen the sociolinguistic competence which is the goal to build competent students. Although not great deal of research has been done on the ESP reading tests, attempts at dealing with advanced reading tests have appeared at the tertiary level (universities and technical institution level) because students have confronted with technical and professional reading material in the EFL. According to Carrel (1988), the reading skill has become the pioneer among all other language skills in higher education programs. Further, the progression of the reading tests under the ESP domain, usually subject-related, it is an area where text and background knowledge are vital.

[]2.2

[]Weir’s Socio-cognitive Framework for Validating Reading Tests (2005)

[]As it is known to many experts in the testing field, a good test is characterized by its usefulness. Bachman and Palmer 1996 cited in Buck 2001 adopt this idea and use it as a base for quality control in the test development process. They believe that

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[]usefulness incorporates the measurement properties of the test. They suggest that usefulness is a function of six properties which are the cornerstones of the testing process: reliability, validity, authenticity, interactiveness, impact, and practicality. Since, validity is the most complex criterion of test properties, it can be regarded the core of the validation process of the ESP test in this study. In language testing, validity is usually defined as, “The extent to which the test measures what it is supposed to measure and nothing else” (Heaton 1994). Weir (2005) defined validity as “… the extent to which a test can be shown to produce data, i.e. test scores…” He proposed four frameworks that are in parallel with the four language skills, i.e., frameworks for validating the receptive skills (listening and reading) and the productive skills (speaking and writing). As stated earlier, the ESP test puts a great emphasis on the reading skill to cover as much reading material as possible on the ESP content such as vocabulary and terminology. Hence, Weir’s socio-cognitive framework for validating reading tests can offer guidelines for validating the reading ESP tests efficiently. The framework reflects how different types of validity fit together. The arrows indicate the principle direction(s) of any hypothesized relations: what has an effect on what, and the timeline runs from top to bottom: priori (before) the test is finalized (validation components of context and theory-based validity), then, during the test administration, and finally, posteriori what happens (after) test administration (validation components of scoring validity, consequential validity and criterion-related validity), see (Fig. 1). The framework ( Weir’s socio-cognitive framework for validating reading tests, 2005) is used for validating the ESP test which comprises five validity components headed by the test taker. The test taker occupies the central part within the validation process, as the series elements are related to the test taker which have a significant effect and a direct impact on the test performance. The framework’s components are as follows.

[]2.2.1

[]Context Validity

[]Recently, there has been a growing interest and attention on the significance of context. The vital role of context as a determining factor of communicative language ability is significant. The context must be acceptable to both students and testers or experts as appropriate situation to assess specific language ability. According to McNamara (2000), context validity is “the extent to which the test appropriately samples from the domain of knowledge or skills relevant to performance in the criterion.” Tests should aim to ensure both situational (contextual) and interactional (cognitive) authenticity (Douglas 2000; O’Sullivan 2006). Attempts need to be made to ensure situational authenticity. Though the full authenticity is not attainable in the language test, the settings selected for both testing and teaching should be made as realistic as possible in terms of various critical contextual features. Context validity for the reading test as proposed by Weir (2005) is divided into: task setting, task demands, and setting administration. The task setting includes: rubrics, test purpose, response format, known criteria, weighting, order of item, and time constraints. Task demands is further divided into: discourse mode,

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[]Test-taker Characteristics Physicalphysiological Psychological Experiential

[]THEORY-BASED VALIDITY

[]CONTEXT VALIDITY

[]Setting: Task •Purpose •Response format •Weighting •Known criteria •Order of items •Time constraints Setting: Administration •Physical conditions •Uniformity of administration •Security

[]INTERNAL PROCESS M EXECUTIVE O EXECUTIVE PROCEESSES N RESOURCES I • Language knowledge • Goal setting T • Visual recognition – Grammatical (lexical, O •Pattern synthesizer syntax) R -Textual I – Functional N G (pragmatic) -Sociolinguistic

[]Demands: Task •Linguistic -Discourse mode -Channel -Text length -Writer – reader relationship -Nature of information -Content knowledge -Lexical – Structural -Functional

[]• Content knowledge -Internal -External

[]RESPONSE

[]SCORING VALIDITY SCORING • Item analysis • Internal consistency • Error of measurement • Marker reliability

[]SCORE GRADE

[]CONSEQUENTIAL VALIDITY

[]CRITERION-RELATED VALIDITY

[]SCORE INTERPRETATION • Score Interpretation • Differential validity • Washback in classroom • Effect on individual within society

[]SCORE VALUE • Comparison within different versions of the same test • Comparison with the same test administered on different occasions • Comparison with other tests measurements • Comparison within future performance

[]Fig. 1 A socio-cognitive framework for validating reading tests (Weir 2005)

[]channel of communication or presentation, text length, writer-reader relationship, nature of information, content knowledge required, and other linguistic variables that are related to both task input and output which include; lexical, structural, and functional. The test administration involves: physical conditions, uniformity of administration, and test security, (Weir 2005; Khalifa and Weir 2009).

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[]Theory-Based Validity

[]Lately, it was renamed as cognitive validity (Khalifa and Weir 2009). It is related directly to the cognitive (internal mental) process in which it concerns with the acquisition of linguistic knowledge and comprises executive processing and executive resources. Executive processing includes: goal setting, monitoring, visual recognition, and pattern synthesizer. Executive resources include: language knowledge (grammatical knowledge: lexical & syntax), textual knowledge, functional (pragmatic) knowledge, and sociolinguistics knowledge, while content knowledge includes: internal (background knowledge) and external (task knowledge). However, in spite of treating context validity and theory-based validity components separately for descriptive purposes, it is essential to refer to the fact that there is a connection and an interactive relation between both of them with scoring validity to make construct validity.

[]2.2.3

[]Scoring Validity

[]It aims at achieving fair outcomes for all candidates. It deals with all test aspects that can influence scores’ reliability. It is an inevitable important procedure in which candidates’ observed scores are not totally due to their language capabilities, but influenced by other factors rather than language trait in which testers may be interested, i.e., sources of error, or unreliability (Zainal Abidin 2006). The scoring validity component consists of four elements: Item analysis: deals with analyzing test items in terms of their easiness or difficulty using statistics to contribute in providing more information about test takers and the abilities. Internal consistency: used in homogeneous tests in which statistics can provide data about how internally consistent (reliable) the test is. Error of measurement: shows the difference between an observed score and the corresponding true score or proficiency. Marker reliability: contributes and affects greatly in overall test reliability. It concerns with how the test items are marked. However, rating tests may be influenced by the type of the test items (objective or subjective), number of markers, the way in which the test is scored (manually or by computer) and rating conditions, (Weir 2005; Khalifa and Weir 2009).

[]2.2.4

[]Consequential Validity

[]It refers to the impact of tests and test scores interpretations on individuals, groups of test takers, educational system, policies and practices, schools, institutes, and society as a whole, (Weir 2005; Khalifa and Weir 2009). Recently, the concept of impact of the test has been used as an equivalent to the term washback or the

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[]backwash effect as it is named by some researchers as Shaw and Weir (2007). Backwash is usually known as the influence of the test on teaching in general. The aspects of consequential validity presented in the framework, deals with the effect of the test and its concern on three areas: differential validity, washback in the classroom or workplace, and the effect on individual on society. It is clearly observed that washback (backwash) has a great impact on teaching, learning, and testing, and its influence can be regarded either negative or positive. The test has a positive impact on teaching when it enhances beneficial and valuable teaching practices.

[]2.2.5

[]Criterion-Related Validity

[]One of the phases of external validity is criterion-related validity. The test has criterion-related validity if the relationship between test scores and other external measurements that assess the same ability can be demonstrated, (Weir 1993, 2005; Khalifa and Weir 2009). Besides, criterion-related validity is the zone which reflects the overlapping relation between validity and reliability. The elements as presented in the framework illustrated the external measurements that can incorporate with the scores or test values to examine criterion-related validity, these elements are: comparison with different versions of the same test (parallel or equivalent forms), comparison with the same test administered on different occasions, comparison with other tests/measurements, and comparison with future performance.

[]3 The Methodological Procedures Used in Conducting the Validation Event It is important here to refer that the framework was testified and carried out to validate the ESP test. A group of engineering students (200 students) who study English for engineering purposes and 10 staff members who teach the ESP subject at the University of Tripoli, Libya, were the target sample of the validation event. Evaluating and validating the ESP test started from the early stages where the whole teaching and testing programs were investigated to ensure producing a competent user of English in all language skills, see (Fig. 2) which summarizes the aim behind validating the ESP test. Although the concentration was on the reading skill, other language skills need to be considered by using the other language skills frameworks in future works. The effectiveness of the reading framework due to its capability in validating the ESP test in all its stages; before the test administration, the whole ESP program and its environment checked in terms of; the course being taught and its objectives, teachers’ qualifications, candidates’ profile, needs, performance, and teaching and testing methods as well as the test taker profile, then, during and after

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[]Fig. 2 Validating the ESP program

[]the test administration, where all administrative elements of the framework were applied. In carrying the validity process out, various instruments and methods were needed to gather as much data as possible. In the validity event, the validation process crucially adopted a triangulation method of data collection where various and multi-sources of data gathered were adopted. As Robson (2002) claims; triangulation usually refers to multi-sources of information used for data gathering techniques. In gathering data process, two types of triangulation were included: data triangulation, in which several methods of data collection were adopted such as (questionnaires, interviews, course documents, test documents, test scores, and observation), and methodological triangulation which integrates between using both quantitative and qualitative methods. By using triangulation, an attempt was made to counter threats to the validity of the data collection process. To overcome any problems, strides such as trialling and piloting of interviews and questionnaire items were taken into consideration. The framework was used as the backbone from the research design stage passing through instruments development and data collection steps and ending with data analyses and validation process report. Data collected were organized and analyzed according to the different validity components of the framework, and conclusions about test validity and the variables that affect test performance were made with reference to the framework. The interviews were recorded, transcribed, and analyzed, while the questionnaires were counter checked and entered into SPSS program. All documents were investigated and data gathered from different resources were itemized and compared. After conducting data analysis, the shortcomings of the ESP test were pointed and a validation report was reported for further investigation to study the test impact on teaching, individuals and society.

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[]4 Applying the Validation Instruments on the ESP Test and Statistical Analysis 1. The ESP test papers were the main source of data collection. Since, the test was in a written form, samples of the test papers (all the test items) were investigated, analyzed, and validated in details in light of the socio-cognitive reading framework elements with regard to data collected from other instruments. The test scores were investigated after the scoring process. Data obtained from the test papers was classified where the strengths and weaknesses of the test were reported. 2. The questionnaire was prepared in two versions. Students’ questionnaire composed of three sections A (about test taker characteristics); B (about context validity); and C (about theory-based validity). The staff’s questionnaire consisted of four sections. Sections; A, B, C were identical to the students’ questionnaire and section D was added to obtain data about the scoring validity component. 3. Since, the questionnaire was concerned with opinions and attitudes of the participants, the Likert scale was adopted. The statements of the questionnaire were ranked according to this scale (1 for ‘strongly disagree’ through 5 for ‘strongly agree’) to help in the analysis process in providing numerical data. Therefore, different agreement and disagreement views were obtained about the questionnaire items. However, the interviews were used to gather a considerable data and feedback from various participants who are directly and indirectly involved in the current ESP test. The views helped in validating the ESP test items and all its issues in terms of its context, theory-based, and scoring validity. 4. Different statistical analyzes were performed such as descriptive analysis, reliability, Mean, and Standard deviation. 5. To check the internal consistency of questionnaires items Cronbach Alpha Reliability Coefficient was used. The results showed that Cronbach Alpha Reliability among the questionnaires items and sections as in examples shown in Table 1. Table 1 Reliability analysis for the questionnaires items Section

[]No. of items

[](students’ questionnaire) Alpha

[](staffs questionnaire) Alpha

[]A B B B C C C D D

[]11 39 35 28 22 14 9 8 4

[]0.641 0.711 0.744 0.812 0.790 0.868 0.878 – –

[]0.735 0.730 0.769 0.873 0.900 0.843 0.829 0.811 0.828

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[]6. Frequency tables indicated clearly how candidates and staff members responded to the questionnaire items. In both questionnaire versions (students and staff), the majority number of responses were above 3; just few items had a mean rating below 3. The highest mean score was (4.54), while the lowest mean score was (1.56). 7. In both questionnaire versions (students and staff); the responses reflected the low rate of standard deviation where the majority of items were below one.

[]5 General Remarks About the Validation Process 1. Validating language tests process starts from investigating the teaching curricula and the time of constructing the test on a set of explicit specifications which presents both the cognitive and linguistic abilities involved when a candidate demonstrates in a context and conditions specified by the test. 2. The basic requirement of the test validation is to provide as much evidences as possible about the elements mentioned within the framework’s components. Each one of these elements has its own effect on the test validity and incorporates in ensuring its validity, for example; considering the test setting and administration, physical conditions, uniformity of administration, and test security where they should be equivalent and suitable for all candidates to avoid bias and to ensure test fairness which will increase its validity. 3. Data could be investigated after the test had been administered, apply statistical analyses to see how dependable the results are, and to enhance conducting more validation procedures. 4. Data gathered in all test stages from different sources enabled to investigate the current ESP deficiencies such as problems with the test format, techniques used, test length, time constraints, rating process. Hence, such data encouraged developing and revising tests regularly. 5. The validation report was used to suggest a new proposed ESP test to overcome the deficiencies in the existing test as well as to enhance and measure candidates’ real ability in reading using situations similar to what candidates need in their academic study and future career.

[]6 Conclusions and Recommendations Generally, it can be concluded that, Weir’s socio-cognitive framework for validating reading tests can offer guidelines for validating the reading ESP tests systematically and efficiently. It is constructive, comprehensive, and practical in which it enables the researcher to validate the reading ESP test from all aspects need to be investigated and validated.

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[]It was evident throughout the use of the framework that it was beneficial and convenient in terms of its purpose and applicability to validate language tests. There was an ability to operationalize its elements to validate the ESP tests effectively. It can be used from the stage of preparing data instruments to the stage of making decisions about the test outputs and the test impacts on different educational settings. Most teachers and instructors at universities are able to conduct tests depending on their experience rather than the valuable knowledge about testing. Therefore, using such a framework in validating tests will assist to discover the ESP test problems and to overcome obstacles they may encounter in dealing with these tests. Validating tests lead to improve testing as an educational measurement which influences the learning and teaching policy effectively. This will certainly lead to the developments on the quality of education as well as the quality of lifestyles within societies. Therefore, it is advisable and recommended to test all language skills periodically to ensure producing proficient outputs of the EFL users, where the four frameworks that proposed by Weir (2005) can be adopted to validate language skills following the procedures that was adopted in validating the reading ability framework.

[]References Alderson, J. C. (2000). Assessing reading. Cambridge: Cambridge University Press. Anthony, L. (1997). English for specific purposes: What does it mean? Why is different? Retrieved January 14, 2009 from http://www.antlab.sci.waseda.ac.jp/abstracts/ESParticle.html Buck, G. (2001). Assessing listening. Cambridge: Cambridge University Press. Carrel, P. L. (1988). Interactive text processing: Implications for ESL second language reading classrooms. In P. L. Carrel, J. Devine, & D. E. Eskey (Eds.), Interactive approaches to second language reading (pp. 239–259). Cambridge: Cambridge University Press. Chen, K. (2009). On the ESP teaching, test and evaluation, and teacher development. US-China Foreign Language, 7(8), 56–59. Retrieved August, 2009 from http://www.linguist.org.cn/doc/ uc200908/uc20090810.pdf Chen, Y. (2006). From common core to specific. The Asian ESP Journal, 1(3), Retrieved March 2, 2009 from http://www.asian-esp-journal.com/June_2006_yc.php Douglas, D. (2000). Assessing language for specific purposes: Theory and practice. Cambridge: Cambridge University Press. Fiorito, L. (2005). Teaching english for specific purposes (ESP). Retrieved from http://www. usingenglish.com/teachers/articles/teaching-english-for-specific-purposes-esp.html Gao, J. (2007). Designing an ESP course for Chinese university students of business. Asian ESP Journal, 3(1). Retrieved March 5, 2009 from http://www.asian-espjournal.com/April_2007_gj. php Heaton, J. B. (1994). Writing english language tests. London: Longman. Hutchinson, T., & Waters, A. (1987). English for specific purposes. Cambridge: Cambridge University Press. Khalifa, H., & Weir, C. J. (2009). Examining reading: Research and practice in assessing second language reading. Studies in Language Testing 29. Cambridge: UCLES, Cambridge University Press.

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[]Lorenzo, F. (2005). Teaching english for specific purposes. UsingEnglish.com. Retrieved March 2, 2009 from http://www.usingenglish.com/teachers/articles/teaching-english-forspecific-purposesesp.html McNamara, T. (2000). Language testing. Oxford: Oxford University Press. O’Sullivan, B. (Ed.). (2006). Issues in testing business english. Studies in language testing. Cambridge: Cambridge University Press. Robson, C. (2002). Real world research. Oxford: Blackwell Publishing. Shaw, S. D., & Weir, C. J. (2007). Examining writing: Research and practice in assessing second language writing. Studies in language testing 26. M. Michael, & W. Cyril (Eds.). Cambridge: UCLES, Cambridge University Press. Urquhart, A. H., & Weir, C. J. (2014). Reading in a second language: Process, product and practice. Routledge. Weir, C. J. (1993). Understanding and developing language tests. Prentice Hall. Weir, C. J. (Ed.). (2005). Language testing and validation: An evidence-based approach. Research and practice in applied linguistics. Basingstoke: Palgrave Macmillan. Zainal Abidin, S. A. (2006). Testing spoken language using computer technology: A comparative validation study of ‘live’ and computer delivered test versions using Weir’s framework. Unpublished doctoral dissertation, University of Roehampton, UK.

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[]Self-monitoring Action Skill Acquisition System: An Integrated Approach to Teaching and Learning Norlaila Abdullah, Roslan Abdul Wahab, Norlaila Mohd Din and Faizah Azam Ahmad Azam Abstract Students encounter many challenges in retaining accounting knowledge and skills while in the university making them ill-prepared to undertake internship tasks. As accounting is skill-based, interns who are less prepared will suffer from task discrimination. A self-monitoring action skill acquisition e-practice system was implemented to 48 students to better prepare them with 5-core accounting skills. The students were given non-structured problem solving activities in financial accounting, auditing, taxation, corporate secretary, internal control and a strategic management project to assess their level of knowledge and skills and create awareness of their standing. The e-practice system is comprised of a simulation process review, experiential skill enhancement program, and unstructured problem solving in addition to self-monitoring and English language corrective action awareness. The end results showed that the students have achieved the required skill level in all 5-core accounting tasks. Thus, giving some wide-ranging scaffolding activities while on campus, the students are better equipped with knowledge and skills required by the industry.

[]Keywords Accounting knowledge and skills Core accounting skills E-practice system Scaffolding activities Student feedback

[]1 Introduction Modern business environment is everywhere yet many accounting academics are still using traditional teaching and learning approaches in classrooms. Howieson (2003) discovered that the traditional approach of accounting teaching is inadequate

[]N. Abdullah (&) R. Abdul Wahab N. Mohd Din F.A. Ahmad Azam Faculty of Accountancy, Universiti Teknologi MARA Pahang, 26400 Bandar Tun Abdul Razak, Jengka, Pahang, Malaysia e-mail: [email protected] © Springer Science+Business Media Singapore 2016 M.A. Abdullah et al. (eds.), Regional Conference on Science, Technology and Social Sciences (RCSTSS 2014), DOI 10.1007/978-981-10-1458-1_45

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[]for the students to meet the challenges ahead. Abdullah et al. (2014) observed that students do not meet the needs of the industry where, during the students’ internship attachments, a greater number of them are deficient in skill to undertake tasks in financial accounting, auditing, taxation, company secretary, internal control and less proficient in written as well as spoken English. Additionally, the students are too focused on getting a passing mark in a given course and neglecting the element of being adequately prepared for the real life challenges after graduation. While at workplace, the students are unable to recall and apply various concepts, principles and standards in accounting and related areas making them unable to meet the datelines of work completion set by employers (internship firms or companies). The gap between the actual skills acquired in classrooms and the skills required at the workplace should be mitigated and replaced by competent graduates to meet employers’ expectations. When students failed to acquire the industry’s required skills, it is tantamount that the accounting academics failed to deliver the necessary course outcomes that are essential in outcome-based education. Review on literatures shows that relevant knowledge and skills acquired from a good accounting program is important to survive in challenging business environment (Okafor and Onwumere 2012). It provides students with the required knowledge, skills and know-how to apply those knowledge and skills (Mohamed and Lanshine 2003) and strong business knowledge (Albrecht and Sack 2000; Lin 2008). When accounting students show lack of accounting knowledge and communication skills, accounting educators should renew their commitments on skill development rather than stick to existing accounting curriculum (Albrecht and Sack 2000). The universities and academic communities need to innovate accounting education to train future knowledge workers (Howieson 2003) by teaching the accounting students on how to study and how to find the solution to problems than to cover all traditional accounting materials (Albrecht and Sack 2000). Incorporating experiential learning in the curriculum is essential for accounting students to gain technical knowledge as well as soft skills required in preparing them for future career (Beard et al. 2007). Soft-skills, such as communication skills and interpersonal skills, should be blended with technical skills to fit in demanding global business environment (De Villiers 2010), as employers are expecting accounting students to have analytical or problem solving skills, business knowledge, accounting technical knowledge as well as oral and written communication (Kavanagh and Drennan 2008). It is important that knowledge-based approach in accounting education should be replaced by process oriented to enable the accounting students to develop communication, interpersonal and intellectual skills to prepare them for global business environment (Mohamed and Lanshine 2003). Likewise, innovative ways of teaching and learning should be developed to accommodate the development of soft skills and imparting with technical knowledge preferably in team environment,

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[]multidisciplinary involvement, and part of continuous assessment and involve real-life application such as case-studies, role-play or simulation (De Villiers 2010). This research undertakes to introduce and implement the use of an innovative and creative teaching and learning system that is expected to enhance the skills acquisitions among the accounting students. In particular, this study envisages achieving the academic quality standard of the university where 50 % of graduating students having a Cumulative Grade Point Average (CGPA) or skill rating of 3.00 and above, in all 5-core accounting fields as mentioned earlier.

[]2 Research Methodology The researchers have developed a teaching and learning system named as Self-monitoring Skill Acquisition (SMASKA) system based on the TRIZ concept (Altshuller 1999). An Ideal Final Result was determined to enable the team to plot the core points and directions of SMASKA. This is vital in developing successful integrated teaching and learning tools that will enhance accounting students’ skill acquisitions and retentions. Matching the TRIZ win-win solution guide and given the amount of information available, the team has evaluated and capitalized the use of harmful effects to achieve positive effect as the main framework in developing SMASKA system. The target is to improve the quality of the educational delivery as well as develop some supportive skill enhancement programmes. SMASKA is built with some unique, integrated and experiential teaching and learning activities that include self-monitoring, simulation procedure review, English proficiency, quiz competitions and learn through product simulation. These are skill reinforcement activities that allow students to internalize accounting standards, concepts, principles and better judgment. Additionally, self-monitoring enables to test the student’s ability to identify their own mistakes and learn from these mistakes. Moreover, simulation procedure review exposes students to real accounting workplace practices. These integrated approaches in skill acquisitions and retentions making SMASKA a valuable tool in teaching and learning. The samples were the 48 final year students taking bachelor in accountancy for the semester of January–May 2012. Primary data were collected on every SMASKA activity that was implemented and given descriptive significance. Prior to conducting an activity, a notice was disseminated and samples were given the time to perform accounting procedure review. Schedule relating to place, date and time of assessment were announced in due course. Product simulations among the samples were conducted in strategic management that spanned over four months or a semester. Assessments were based on the samples’ GPA achievements for one semester over a number of evaluation rubrics. Final examination results were also analyzed to evaluate the impact on the students’ academic performance on post-SMASKA implementation.

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[]3 Results and Discussions 3.1

[]The Skill Gap

[]Based on companies’ feedback, the students had skill deficiencies in business knowledge (67 %), writing non-technical report (67 %), written English skills (65 %), accounting skills (60 %), writing accounting report (58 %) and general knowledge (50 %) as shown in Fig. 1. Students having inadequate real time accounting knowledge and skills find internship difficult as they are unable to meet deadlines (54 %) set by their superiors. This situation leads to some internship companies’ dissatisfactions as students failed to match their required level of expectations. Relatively, an independent skill assessment was undertaken on campus to test the students’ skills and a student is said to be deficient in skill when the score is less than a GPA of 3.00 or an equivalent grade of 65 %. Findings indicate that students’ skills were deficient in financial accounting (80 %), taxation (100 %), auditing (100 %), corporate secretary (85 %) and internal control (95 %). These results confirm that the students are really deficient in skills needed by the industry as shown in Fig. 2. The causal factor is that the students were too focused on building academic skills required in getting a passing mark in a given course and, in doing so, the final

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[]Fig. 1 Students skill deficiency

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[]Fig. 2 Skill: GPA less than 3.00

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[]year students were not adequately prepared for the skills required at the workplace. The recommendation of Albrecht and Sack (2000) is well accepted that accounting academics should focus on skill development in classrooms rather than maintaining to their outdated accounting curriculum. The skills required by the industry should be part and parcel of the teaching and learning process in classrooms to train accounting students’ real time necessities. It is difficult for the higher educational institutions to witness the students fail to acquire the skills required at the workplace, as it is tantamount that the lecturers’ and the faculty, in general, are flops to deliver the required academic outcomes during the teaching and learning process. As pointed out by Howieson (2003) that universities and academics need to make accounting education relevant and the researchers suggest that accounting education should incorporate skills required by the industry in the teaching and learning activities to reduce the gap between university and industry.

[]3.2

[]Impact of SMASKA System in Accounting Skills Acquisitions

[]A trial run was undertaken among the final year students where they were asked to solve work-related accounting tasks to test their accounting competencies. Prior to it, the students were given enough time to access themselves to SMASKA e-practice system for the review process and, thereafter, they were given a set of exercise problems on each of the five areas of accounting tasks as mentioned earlier. Figure 3 shows the skill assessment results after using SMASKA system as measured by the scales of 3.00 and above, 2.50–2.99, 2.00–2.49 and less than 2.00. A scale of 3.00 denotes the required skill level in the industry and that the students can perform the required tasks. The students’ performance were satisfactory where 65 % of students in taxation achieved a GPA of 3.00 and above, 85 % in financial accounting (FA), 81 % in auditing (Audit), 77 % in corporate secretary (CS) and 79 % in internal control (IC) as shown in Fig. 3. Undertaking simulation review process and other skill building activities in those core accounting areas are scaffolding strategies among final year students. The students are able to recall, reflect and improve their higher order thinking skills that enable them to solve varied accounting scenario exercises while off class hours on campus. Simulation review process provides the students learning avenues to acquaint themselves on those vital accounting processes necessary in undertaking accounting tasks. Mohamed and Lanshine (2003) indicated that accounting educators should provide students with the required knowledge and skills, but the authors are, in the contention, that retention of knowledge and skills while in the university campus requires some support activities that are experiential-based to stimulate acquisitions and retentions. Additions to and enhancements of the teaching and learning

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[]Fig. 3 Students skill assessment result in core accounting tasks

[]approaches and tools used in transferring knowledge and skills to the student should be exercised continuously to support retentions through innovative and creative means as in SMASKA system.

[]3.3

[]Impact of Self-monitoring Tool on the Students’ Competencies

[]Self-monitoring is one of the components of SMASKA system where the students are asked to track their accounting and related skill improvement through a case study. Mainly, the test involves the students to identify bad and missing accounting practices in the given case study in the view to improve accounting competencies in small businesses. Failing to determine the omitted accounting process or procedure signifies that the students are lacking of the required skills. Figure 4 shows the findings on self-monitoring exercise which indicate that the students were able to identify all the eighteen-ideal inappropriate actions. However, the intensity of the number of students who were able to identify those actions varies where, on average, 71 % of them were able to identify all the nine missing practices and the remainder was on the contrary. These nine accounting practices are coined as those with scores of 65–77 %. In addition, there were only 44 % of the final students who were able to identify other missing procedures, which have scores lower than 65 %. These included “no punch card system” (63 %), “overpayment to trade creditors” (60 %), “lack of proper documentation” (56 %), “Statement of Debtors were not sent” (48 %), “accounts had been paid but remained outstanding” (46 %), “employee deductions for KWSP were not remitted” (44 %), “director asked the auditors to issue unqualified report” (29 %), “directors in breach of fiduciary duties” (25 %), and the

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[]Fig. 4 Self-monitoring outcomes on major tasks

[]company “never had experienced a statutory audit” (21 %). These are common abnormalities among small businesses which an accountant ideally should be well-versed at. The need for the students to be able to identify these missing practices is imperative for them to be prepared for real life tasks after graduation in the event that they are employed in small firms that have no well-structured accounting system. The students need a comprehensive self-monitoring process extending to legal compliances which was not included in SMASKA system. The self-monitoring helps the students to track their strengths and weaknesses that enable them able to improve their abilities to pinpoint faulty accounting practices in the given cases. Additionally, it enhances students’ judgmental capabilities as they are given unstructured case studies.

[]3.4

[]Impact of SMASKA on Students’ English Proficiency

[]The SMASKA system also caters the needs of the final year students to improve their English proficiency by providing some tips on how to use and practice correct English language in both oral and written. In oral, the students were asked to participate in class discussions, role play, accounting quiz competitions and product innovation show. In these activities, they were required to express their ideas and answers orally. Mistakes were identified and corrected by experts. This served as a training ground for the next step, the written essays.

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[]25%

[]After

[]Before

[]Linear (After)

[]Linear (Before)

[]20% 15% 10% 5% 0%

[]Fig. 5 Reduction in english language errors

[]In essay writing, the students were required to compose an essay on their internship experiences without any time allocation to revise the English language rules. Several popular English language errors were discovered that included the use of “singular and plural” nouns (20 %), “verb form” (15 %), “subject-verb-agreement” (11 %), “part of speech” (9 %), use of an “article” (8 %) and “prepositions” (7 %). In another situation, the students were given some time to review the English language tips built-in the SMASKA system. Essay writing on the same topic was undertaken. Results showed slight improvement in the use of “singular and plural” nouns (18 %), “verb form” (13 %), “subject-verb-agreement” (10 %), and the use of an “article” (7 %). However, there were status quo in “part of speech” (0 %) and “preposition” (0 %) as shown in Fig. 5. Although, Fig. 5 discloses some noted improvements in “spelling mistakes”, “verb tense”, “word choice”, “use of –ing”, “word order” and “sentence structure”, the students have also committed some more mistakes on the use of “active or passive voice”, “relative pronoun” and “discourse marker”. This further indicates that students need in-depth knowledge on some uncommon English slip-ups in their essays. Continuous search for better English language proficiency among students should be undertaken by both academics and the university in and off classrooms. Having this strategy in place, the students are able to support better English language usage as they are non-native English users. In another perspective, students are held responsible on their own learning in the context of outcome-based education. It is expected that students ought to adopt some strategies while composing formal written reports that are common in the accounting practice. Among others, awareness on the use of English syntax rules, use of appropriate words and sentence structure and, most importantly, the students are able to express their ideas clearly to avoid misinterpretations by accounting information users and preparers.

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[]Impact of Product Simulation Learning in Students’ Skill Retention

[]Another enhancement activity in SMASKA system is product simulation learning as applied in strategic management course in the view of improving business capabilities of students as potential managers. The students were asked to innovate, working in groups, a product of their choice. The products were used as teaching and learning tools to apply the various strategic management processes learned and accordingly the students were required to prepare, analyse and evaluate the viability of the product including its financial results. Figure 6 exemplifies the final year students’ abilities in managing a pseudo business entity engaged in a commercially viable and innovative product of their choice. Results revealed that the final year students were having a good grasp of becoming good business managers and entrepreneurs as manifested by the ability to “identify problem” (80 %), “set goals” (76 %), “analyse opportunities and threats” (75 %), “analyse strength and weaknesses” (77 %), “identify business strategy” (83 %), “select business strategy” (86 %), “prepare organisational structure” (78 %), “prepare policies and procedures” (82 %), “prepare remuneration package” (79 %), “prepare capital expenditure budget” (84 %), “prepare working capital budget” (78 %), “prepare income statement forecast” (82 %), “analyse operating results” (81 %) and “evaluate and control” (79 %). In this segment, it is indicative that experiential learning in SMASKA system affords students better learning that leads to better skill retentions. Allowing the students to experience and carry out the details of the given tasks or activities enables the students to retain the skills better. This learning strategy gives more opportunities for the students to reflect more on the acquired skills that makes more 90

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[]constructive learning to take into effect that is not found in conventional lecture approach. On the other side of the coin, the academics should play a pivotal role of leading the final year students to retain more industry accounting skills. Academics and university supports are keys to making students earn more skills while in the university as physical resources, human and financial capitals are required to support these initiatives to become a reality.

[]3.6

[]The Academic Standing of Students Post SMASKA

[]During March–July 2014 semester, 52 % of students garnered a GPA of 3.00 and above and, thus, surpassed one of the academic quality standards of the university. Students’ skills acquisitions and retentions are improved by adopting different teaching and learning techniques in and off classrooms which influences the students’ academic performance. Furthermore, it is evident that the students involved in SMASKA have better academic performance as compared to non-SMASKA student users as discovered from an undisclosed analysis of the same source. Thus, SMASKA brings some valuable impact not only in skill acquisitions and retentions but also in students’ academic standing.

[]3.7

[]Student Feedback

[]On completion of SMASKA implementation, student feedback was obtained to determine the effectiveness of the system. Results indicate that students learn continuously even after the completion of the course through “acquaint with the real life practices” (93 %), “build task confidence” (87 %), “recall and apply learned knowledge” (73 %), “identify and find missing information” to complete the project (65 %) and “improve English language usage” (60 %) as shown in Fig. 7. This

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[]segment proves that SMASKA is well accepted by the students as a substitute learning mode while on campus in preparatory to life after graduation.

[]4 Conclusions This study concludes that skill acquisitions and retentions can be self-monitored while on campus through various and different teaching and learning techniques as exemplified by SMASKA system. The system delivers simulation process review, experiential skill enhancement programmes and product simulation teaching and learning in areas related to accounting, auditing, taxation, corporate secretary and internal control including good English language usage. The students are given simulations on the real life accounting practices that enable them to improve their knowledge and skill retentions and, at the same time, sustain those skills until their internship attachments and beyond. Introducing experimental learning activities on campus, the students are exposed to the tasks that they are expected to do in the industry, in addition to achieving better academic standing.

[]References Abdullah, N., Abdul Wahab, R., Mohd Din, N., & Ahmad Azam, F. A. (2014, June 3–5). Accounting knowledge and skills and the student challenges in the university. Paper presented at the 2nd Teaching & Learning Colloquium 2014, Universiti Teknologi MARA, Perdana Hotel, Kelantan, Malaysia. Albrecht, W., & Sack, R. (2000). Accounting education: Charting the race-through a perilous future. Accounting Education Series, 16, 1–72. Altshuller, G. (1999). The innovation algorithm: TRIZ, systematic innovation, and technical creativity. Worcester, MA: Technical Innovation Center. Beard, D., Schwieger, D., & Surendran, K. (2007). Incorporating soft skills into accounting and MIS curricula. In Proceedings of the 2007 ACM SIGMIS CPR Conference on Computer Personnel Research, SIGMIS CPR ‘07 (pp. 179–185). De Villiers, R. (2010). The incorporation of soft skills into accounting curricula: Preparing accounting graduates for their unpredictable futures. Meditari Accountancy Research, 18(2), 1–22. Howieson, B. (2003). Accounting practice in the new millennium: Is accounting education ready to meet the challenge? The British Accounting Review, 35, 69–103. Kavanagh, M. H., & Drennan, L. (2008). What skills and attributes does an accounting graduate need? Evidence from student perceptions and employer expectations. Accounting & Finance, 48(2), 279–300. Lin, Z. J. (2008). A factor analysis on knowledge and skill components of accounting education: Chinese case. Advances in Accounting, 24(1), 110–118. Mohamed, E. K. A., & Lashine, O. S. H. (2003). Accounting knowledge and skills and the challenges of a global business environment. Managerial Finance, 29(7), 3–16. Okafor, R. G., & Onwumere, J. U. J. (2012). Issues and challenges in enhancing efficient entrepreneurial accounting education in Nigerian universities. Developing Country Studies, 2 (11), 220–227.

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[]Chapter 46

[]Mathematics Outreach Program for Primary Schools Zarith Sofiah Othman, Zulkifli Ab. Ghani Hilmi and Mariathy Karim

[]Abstract In Malaysia, children of age 7–12 years old are registered in primary schools where they learnt several core subjects that play an essential role in their learning development as preparation for secondary education. Mathematics is one of them and it is important to cultivate students’ interest at this age as to lay a good foundation in mathematics. As the country is to become a developed country by 2020, it needs 60 % of students at the tertiary level to be enrolled in science and technology programs where mathematics is a requirement. Nevertheless, the decrease of enrolment in science and technology programs at the tertiary level is of major concern. As an early intervention to inculcate positive perception toward mathematics, the Department of Mathematics, initiated a Mathematics Outreach Program for 96 students from 22 primary schools. This paper reviews the effectiveness of the program in achieving its stated objectives as measured by a pre- and post-test instrument. Experiencing and appreciating mathematics through hands-on experience and in a relax environment contribute positively on students attitude and outlook toward mathematics. This study shows that early intervention is important and effective in helping students reduce their maths anxiety and increase their appreciation of mathematics. Keywords Math interest

[]Motivation Outreach program

[]Z.S. Othman (&) Z.Ab.G. Hilmi Faculty of Computer and Mathematical Sciences, Universiti Teknologi MARA Pahang, 26400 Bandar Tun Razak Jengka, Pahang, Malaysia e-mail: zarithsofi[email protected] Z.Ab.G. Hilmi e-mail: [email protected] M. Karim Department of Quantitative Science, Faculty of Computer and Mathematical Sciences, Universiti Teknologi MARA (UiTM) Sarawak, 94300 Kota Samarahan, Sarawak, Malaysia e-mail: [email protected] © Springer Science+Business Media Singapore 2016 M.A. Abdullah et al. (eds.), Regional Conference on Science, Technology and Social Sciences (RCSTSS 2014), DOI 10.1007/978-981-10-1458-1_46

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[]1 Introduction Mathematics is an essential subject and a very important component in all fields. To increase the percentage of engineers, doctors, and scientists by 2020, education is one reasonable way to help developing the nation. Mathematics lesson in primary school is structured according to syllabus as a preparation for secondary education. In the process of learning in school, students are generally using classroom, or areas that are used for learning, such as library and study room as their learning space. Learning also emphasize on the nonstop string of numbers, exams, and deadlines that would be impractical in the real world. However, Mathematics Outreach Program is set for a variety of activities outside the classroom such as exchanging information, asking questions, and planning how to answer questions. In the process of learning, students are generally close to use the materials to be learnt in different environment to improve their chances of understanding. The aim of the outreach program is to ensure that students are able to understand and apply the knowledge to face examinations. It is also designed to support the important developmental achievements especially problem solving and social interaction with others. Within this context, they are capable of acquiring rich knowledge away from their families and be more independent. This paper is organized as follows: Sect. 2 introduces the literature review, Sect. 3 presents research objective, Sect. 4 presents the program, the findings, and discussion is in Sect. 5. Last, the conclusion is presented in Sect. 6.

[]2 Literature Review For the past several years, the Faculty of Computer and Mathematical Sciences, Universiti Teknolgi MARA has organized a lot of Mathematics Outreach Programs by cooperatives between few schools to develop the positive attitude toward mathematics learning (Karim and Hilmi 2009; Karim et al. 2012). Students are active learners who construct knowledge from side-to-side participation through hands-on activities. However, the support from the adults will give the maximum benefit from the activities. French (2004) indicated that the adult guidance can enrich students in learning while build on their considerable competence and can give motivation to learn. It has been supported by Vygotsky (1978) that students get more knowledge over social interaction with others. Variety of program has been done for primary school to motivate and encourage them to succeed in Ujian Penilaian Sekolah Rendah (UPSR). A study by Kiray and Kaptan (2012) to measure the effectiveness of the integrated Science and Mathematics Program on 90 students using mixed method by variance analysis and covariance analysis. The output from the pre- and post-test shows there is significant relation between the understanding of students from mathematics to science and can increase the achievement of answering integrated questions exceeding the

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[]scope of a class. A research by Lianghuo et al. (2005) has proven that there is positive relation between student’s attitude and mathematics learning.The reliability test for the items under anxiety level yields a high Cronbach Alpha of 0.81. The researchers found that students are generally anxious about their mathematics learning. Based on the results, it shows that anxiety level is one of the important items in measuring the effectiveness of a program. This fact is more concrete when Nuria et al. (2006) proves self-confidence, attitudes, and emotions that important factors in learning process of success in mathematics subject. Analysis of questionnaires from 346 participants who are students of secondary schools in the education system in Badajoz shows that there is relation between beliefs and attitudes in learning mathematics. Based on the discussion and analysis made by (Nuria et al. 2006; Lianghuo et al. 2005; Kiray and Kaptan 2012) the dimension of self-confidence, attitudes, and anxiety levels are included in the questionnaire that have been used in this research. To build a questionnaire that measures the effectiveness of Mathematics Outreach Program, researchers studied that affective dimension is one of the important dimension in this study beside anxiety level, usefulness of mathematics, and satisfaction of the program. Other findings by Valiente et al. (2012) about the linkage between students’ emotion and academic achievement proved that Mathematics Outreach Program could improve the anxiety, affective, attitude of students toward mathematics subject. Valiente et al. (2012) manage to prove there is positive relation between students emotion with their achievement in classroom in using cognative skills. Lambert and Guiffre (2008) had run an outreach program for grade 4 school students for Computer Science subject to indicate the improved confidence and interest in Computer Science and Mathematics subjects. The researchers use mathematics questions that need to solving using action (movements) and also the knowledge of binary numbers which is related to computer science. The analysis of the pre- and post-test indicated that students were more interested in computer science and more confidence in mathematics subjects. The researcher use likert scale in the pre- and post-test questions. There are few camps conducted to improve mathematics knowledge worldwide. Rowe (2014) highlighted the fact that Felix Recio, a senior lecturer emeritus in University of Toronto’s Department of Mathematics was mentioned in the University of Toronto Magazine for Spring 2014 edition Recio mention that “teachers can’t pass confidence on to their students if they are suffering from anxiety themselves.” This fact shows anxiety level as one of the most important item that need to be considered. This Outreach Program also shows how important mathematics is to either young people or adults.

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[]3 Research Objective The modules in the Mathematics Outreach Program were prepared with the purpose of reducing maths anxiety level, making maths more enjoyable, and increasing awareness of maths application in everyday life. Thus, the general objective of this study was to determine the effectiveness of the program in reducing anxiety and negative attitudes toward mathematics, thereby cultivating interest and selfconfidence in mathematics among the participants. Three factors were measured, namely, maths anxiety, affective (enjoyment of learning mathematics), and value (usage of mathematics in life). More specifically, the following research questions were addressed: i. Does the program resulted in a significant increase in students’ selfconfidence, thereby reducing maths anxiety? ii. Does the program resulted in a significant increase in students’ affection toward mathematics? iii. Does the program resulted in a significant increase in student’ awareness on the usefulness and real-life application of mathematics?

[]4 Mathematics Outreach Program The 96 students from 22 primary schools lesson is divided into five modules, two of which are activities related to mathematics. Two other modules consists sets of exam questions prepared by an experienced primary school teacher and the last module is a motivational talk by facilitators and a consultant from Peers Encouraging Enabling and Respecting through Socialization (PEERS) Club UiTM Pahang. The Mathematics Outreach Program was designed as a two day and one night program at UiTM Pahang. It was also designed as an integrated approach to early childhood education. It was developed by the author, the Mathematics Club of UiTM Pahang, facilitated by lecturers in the Department of Mathematics and Statistics, the Faculty of Computer and Mathematical Science with Bachelor’s students of Computational Mathematics. The modules lasted approximately one and a half hours. The engaging activities also provided a setting for training in group, literacy-related activities such as talking about activities, exchanging information, and asking question and planning how to answer questions in 4–5 students in a group. All the five modules are conducted in Bahasa Melayu.

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[]4.1 4.1.1

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[]Modules of Mathematics Outreach Program Module 1: My Dignity

[]This module was conducted in groups. The objective of this module was to expose students the concept of involving currency multiplication. The module was addressed as follows: i. The students into a group of 10 person. ii. Female students were assigned the amount of 20 cents while male students were assigned the amount of 10 cents. iii. Instructions were given by facilitators in regards to the amount needed. iv. Then each group, which consisted of both male and female students worked together to present the same amount requested. v. The winner was the group that was able to complete the task given. For example, facilitators want the total amount of RM1.40 in 5 min, students should find their valuable friends for a total price of RM1.40. A group with the correct total amount manage in the time given by facilitators is the winner.

[]4.1.2

[]Module 2: Efficient Memorization

[]The objective of this module was to memorize the multiplication table efficiently. The module was addressed as follows: i. This module is a game issued out for about 10 people in a group. ii. Instructions were given by facilitators where they asked students to say number 1 until 3 followed by the word ‘boom’ to replace number 4. iii. The process continued with other sets of numbers such as 5, 6, 7, “boom.” iv. The activities ended when a group incorrectly said the order of the numbers. For example, for the table of four, students should mention 1, 2, 3, boom, 5, 6, 7, boom, and so on. If a student in a group said ‘boom’ but the other said number 4 then the group lost and cannot continue. The other group will proceed with the game until they found the last group that managed to say all the numbers correctly. 4.1.3

[]Module 3: Math Forum: The Reality is Here

[]This module was held for about one and a half hours. The key of elements in this module is sharing experience in mathematics anxiety and encourage students to have a growth mindset toward mathematics ability. The module I set up as a forum of 3 panels and a moderator. One of the panels was chosen based on high achievements in mathematics with good results in Sijil Pelajaran Malaysia (SPM) and Diploma certificates. The panel shared about useful tips in learning mathematics. The other panel was chosen based

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[]on the person’s experience in dealing with difficulties of learning mathematics. The second panel is also one of the facilitators in this program. The second panel shared how the experiences on managing the difficulties in understanding mathematical abilities and also to manage the fears about mathematics. The second panel encouraged students to play the math puzzle and games in mathematics such as Sudoku, Bingo, and others. The games are more enjoyable and create a fun atmosphere. It also develop the numeracy and logic skills in mathematics. The last panel is the consultant of Peers Encouraging Enabling and Respecting through Socialization (PEERS) Club UiTM Pahang. The person shared about motivation in studying mathematics which can give good impacts to learners. The last panel also gives some other related experiences given by the other students who are interested and appreciated mathematics.

[]4.1.4

[]Module 4 and 5: Part A and Part B Exam Questions

[]These modules consist of sets of examination questions prepared by an experienced mathematics teacher from a primary school. Module 4 comprised the topics for multiple choice questions and module 5 included the topics for long calculation. The objectives of the modules are to give students the view and the idea of the possible topics that would be included in the exam. The modules were also the most helpful tools as the preparation for the upcoming UPSR examination. Before the program was held, the teacher gives the modules with the answer schemes. Next, facilitators studied the set of exam questions. After one or two days they came to the tutoring class, which is tutored by lecturers in Department of Mathematics and Statistics, Faculty of Computer and Mathematical Science to discuss about the answers for the given question in the modules. Students are divided into 4–5 students in a group which are facilitated by a student of Bachelor of Computational Mathematics. They are given the same set of exam questions to be solved in front of the facilitators. It is a face-to-face contact by facilitators and students. Therefore, the message of discussion will be received immediately by students. At the same time, facilitators tried to convey that mathematics which is not a reading subject and they need a lot of practices in order to obtain the mathematical ability to solve problems.

[]4.2

[]Research Methodology

[]A random sample of 96 primary school students (38 males and 58 females) selected at random from a population of participants attending the Mathematics Outreach Program was selected. The instrument used was a structured questionnaire with Likert-scale items ranging from 1 (strongly disagree) to 5 (strongly agree) with six items measuring maths anxiety, six items measuring affective (enjoyment of learning maths), and five items measuring value (usefulness of mathematics).

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[]501

[]The respondents were asked to rate each item before the program started and after it ended. Internal consistency of the instrument was measured for both pre- and post-program. Paired sample t-tests were conducted since the purpose of the study was to evaluate the effectiveness of the outreach program in increasing participants’ interest in mathematics. Some descriptive statistics were also obtained.

[]5 Findings and Discussion The reliability of the instrument as measured by Cronbach’s Alpha for maths anxiety, affective, and the usefulness of mathematics was 0.79, 0.67, and 0.63, respectively for pre-program and 0.80, 0.72, 0.76, respectively for post-program. One item for factor “Value,” (There is nothing creative about mathematics, just remembrance of formulas and steps) was removed due to a low internal consistency. Table 1 shows the mean and standard deviation and results of the paired t-test for the three factors and also the individual items in the questionnaire for both preand post-program. A higher value indicates a more favorable attitudes toward mathematics. Table 1 shows that for factor ‘Mathematics Anxiety’, the 96 participants had an average difference of 0.52 (SD = 0.76) between post- and pre-program scores, indicating the program resulted in a significant increase in mathematics self-confidence, t(95) = 6.80, p < 0.001, 95 % CI (0.37, 0.68). Thus, the program resulted in a significant increase in students’ self-confidence, thereby reducing mathematics anxiety. For the factor ‘Affective’, the 96 participants had an average difference of 0.36 (SD = 0.50) between post- and pre-program scores, indicating the program resulted in a significant increase in students’ enjoyment of learning mathematics, t (95) = 4.95, p < 0.001, 95 % CI (0.21, 0.50). Thus, the program resulted in a significant increase in students’ affection toward mathematics. For the factor ‘Value’, the 96 participants had an average difference of 0.24 (SD = 0.64) between post- and pre-program scores, indicating the program resulted in a significant increase in students’ awareness on the usefulness of mathematics, t (95) = 3.44, p < 0.001, 95% CI (0.09, 0.35). Thus, the program resulted in a significant increase in students’ awareness on the usefulness and real-life application of mathematics. Analysis of individual items revealed that the paired differences were significant except for item ‘Learning mathematics is fun’ and ‘Mathematics will be useful for my future career’. However, this was due to the high score for these items before the program started. The three highest increments after the program are ‘I have no fear of learning mathematics’, ‘I enjoy solving problems in front of class’, and ‘I like asking questions in class’.

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[]Mathematics anxiety (self-confidence) 1. I am capable of learning maths 2. I have no fear of learning maths 3. I am able to think clearly when learning maths 4. I do not fear maths tests more than other subjects 5. I know how to prepare for maths test 6. I am very confident in solving maths problems Overall mean score Affective (likes and enjoy mathematics) 1. Mathematics is my favorite subject 2. I enjoy learning mathematics 3. Learning mathematics is fun 4. I like asking questions in class 5. I enjoy solving problems in front of class 6. I like to participate in group discussion Overall mean score Value (usefulness of mathematics) 1. Mathematics is one of the most important subjects 2. Mathematics is used in everyday life. 3. Mathematics is needed in every academic program 4. Mathematics will be useful for my future career Overall mean score *p < 0.05, **p < 0.001 0.83 1.10 1.03 1.11 1.10 1.14 0.74 0.88 0.89 0.84 1.20 1.08 0.68 0.58 0.78 0.83 0.81 0.84 0.55

[]4.10 3.75 3.96 3.70 3.80 3.78 3.85 4.18 4.06 4.38 3.51 3.42 4.47 4.00 4.30 4.11 4.27 4.43 4.15

[]Pre-program M SD

[]Table 1 Descriptive summary and paired sample t-test of each factor and its items

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[]4.49 4.44 4.51 4.57 4.39

[]4.58 4.31 4.48 4.07 4.06 4.64 4.36

[]4.59 4.44 4.42 4.24 4.28 4.27 4.37

[]0.70 0.79 0.74 0.79 0.61

[]0.68 0.70 0.99 1.14 1.12 0.62 0.58

[]0.73 0.81 0.89 0.92 0.98 1.02 0.63

[]Post-program M SD

[]0.19 0.32 0.24 0.15 0,24

[]0.41 0.25 0.10 0.56 0.65 0.17 0.36

[]0.49 0.69 0.46 0.54 0.48 0.49 0.52

[]Paired diff.

[]2.30* 3.83** 3.39* 1.37 3.44**

[]4.42** 3.19** 1.01 4.05** 5.07** 2.27* 4.95**

[]5.85** 5.88** 4.57** 5.08** 4.14** 4.10** 6.80**

[]t-value

[]502 Z.S. Othman et al.

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[]6 Conclusion and Recommendation Results of the study indicates that the Mathematics Outreach Program was effective in increasing self-confidence, feeling of affection, and awareness on the usefulness and real-life application of mathematics. The modules were created to make learning mathematics fun and enjoyable for the young students. Students were more at ease in learning mathematics when there is no pressure of examinations and fulfilling school and parent’s expectation. Putting them in a different environment from an ordinary classroom and with the friendly help of university students as facilitators, took away some of the maths anxiety in them. The main purpose of the outreach program is for the students to have a good experience with mathematics and not ‘nightmares’. This is consistent with Nuria et al. (2006) findings that self-confidence, attitudes, and emotions are important factors in mathematics learning. There are some barriers in the implementation of this program if more schools and participants are to be involved. Apart from the usual issue of money, time, and work force, there are other constraints such as getting trained and experience facilitators and getting sponsorships. There must be commitment and good collaboration between the Mathematics Department and the primary schools if the outreach program were to be conducted on a regular basis. It is recommended that all parties involve such as the Mathematics Department of UiTM, the District Education Offices, the primary schools, and the agencies that have grants to finance the outreach program, lay out a plan so that the program can be conducted on a regular basis, for example, twice a year. Conducting mathematics camp for a week during school holidays would also be of interest. The Mathematics Department could share the modules with the school teachers so that they can conduct such programs internally. University students who should involve in community work can be trained to become facilitators for the program. This study shows that early intervention is important and effective in helping students reduce their maths anxiety and increase their appreciation of mathematics.

[]References French, L. (2004). Science as the center of a coherent, integrated early childhood curriculum. Early Childhood Research Quarterly, 19, 138–149. Karim, M., & Hilmi, Z. A. G. (2009). Giving back to the community through maths education program. Compilation of Pahang Scholars’ Synergy (COMPASS), 1(3), 27–31. Karim, M., Hilmi, Z. A. G., & Othman, Z. S. (2012). Cultivating students’ interest in mathematics through maths outreach program. In Proceedings of International Conference on Science Technology and Social Sciences (iCSTSS) (pp. 173–177). Kiray, S. A., & Kaptan, K. (2012). The effectiveness of an integrated science and mathematics program: Science-centred mathematics-assisted integration. Energy Education Science and Technology Part B: Social and Education studies, 4(2), 943–956.

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[]504

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[]Lambert, L., & Guiffre, H. (2008). Computer science outreach in an elementary school. In Consortium for Computing Sciences Colleges (CSSC): Estern Conference (pp. 118–124). Lianghuo, F., Seng, Q. K., Yan, Z., Mendoza, L. P., & Yee, L. P. (2005). Assessing Singapore students’ attitudes toward mathematics and mathematics learning: Finding from a survey of lower secondary students. Paper presented at 3rd East Asia Regional Conference On Mathematics Education, Shanghai, China. Nuria, G. I., Lorenzo, J. B. N., & Eloisa, G. B. (2006). The effective domain in mathematics learning. International Electronic Journal of Mathematics Education, 1(1), 16. Rowe, J. (2014). Fighting Math Anxiety: University of Toronto’s Math Outreach instructors are changing hearts and minds about an often-feared subject. Retrieved September 29, 2014, from University of Toronto Magazine: http://www.magazine.utoronto.ca/life-on-campus/fightingmath-anxiety-preparing-for-university-math-program-pump-math-outreach/ Valiente, C., Swanson, J., & Eisenberg, N. (2012). Linking students’ emotions and academic achievement: When and why emotions matter. Child Development Perspectives, 6(2), 129–135. Vygotsky, L. S. (1978). Mind in society: The Development of higher psychological process. In Cole, M., John-Steiner, V., Scribner, S., & Souberman, E. (Eds) Cambridge, MA: Harvard University Press.

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[]Chapter 47

[]Competition-Based Learning: Determining the Strongest Skill that Can Be Achieved Among Higher Education Learners Safura Adeela Sukiman, Haslenda Yusop, Rashidah Mokhtar and Nur Huda Jaafar

[]Abstract Learners these days are expected to possess a hybrid set of soft skills within themselves in order to face the demanding working environment. They should be exposed to a more stimulating learning environment in order to gain adequate level of soft skills. This is a preliminary study to find out the strongest soft skill that can be acquired, applied to programming course in a university level through competition-based learning. A programming competition that consists of diverse level of programming questions were given to the participants and they were asked to complete them within 3 h. The participants are allowed to form a group of not more than two learners. A questionnaire consists of 34 questions was disseminated at the end of the competition. The participants are required to indicate their level of agreement on the level of soft skills they already gained through out the competition. An overall reliability test is conducted in order to determine whether the questionnaire distributed is applicable to the competition-based learning environment. The analysis continues with factor analysis to uncover all possible soft skills that can be achieved through competitive learning. Finally, the reliability test is reconducted for each soft skill to conclude and confirm the strongest skill achievable S.A. Sukiman (&) R. Mokhtar N.H. Jaafar Department of Computer Science, Faculty of Computer and Mathematical Sciences, Universiti Teknologi MARA Johor, KM12, Jalan Muar, 85009 Segamat, Johor, Malaysia e-mail: [email protected] R. Mokhtar e-mail: [email protected] N.H. Jaafar e-mail: [email protected] H. Yusop Department of Statistics, Faculty of Computer and Mathematical Sciences, Universiti Teknologi MARA Johor, KM12, Jalan Muar, 85009 Segamat, Johor, Malaysia e-mail: [email protected] © Springer Science+Business Media Singapore 2016 M.A. Abdullah et al. (eds.), Regional Conference on Science, Technology and Social Sciences (RCSTSS 2014), DOI 10.1007/978-981-10-1458-1_47

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[]505

[]506

[]S.A. Sukiman et al.

[]through competition-based learning. This paper reveals that there are seven strongest skill can be accomplished by the learners. Problem solving attitude and creative thinking are identified as the two topmost skills attainable through competitionbased learning and consequently, the authors propose that competition to be introduced as one of the learning method in higher education level. Keywords Competitive learning Soft skill

[]Game-based learning Programming course

[]1 Introduction Active learning environment is extensively discussed in higher learning institutions nowadays. Most universities are continually striving their best to differ their teaching pedagogy and learning surroundings in order to produce graduates that have adequate problem solving skill, can relate their critical thinking in real work environment and possess high communication skill with respective clientele. Mathias (2014) emphasised that the goal of active learning is to balance between lecturing in class and mastering the exercises, assignments, presentations and other active learning methods. A lot of teaching and learning innovations are likely to contribute towards active learning practice, for instance, flipped classroom approach, blended learning, constructive learning and etc. All these teaching and learning innovations have one major aspire which is to switch from traditional face-to-face lecture into learner centered learning. According to Weimer (2013), in learner centered learning, the role of the instructors change from “sage on the stage” to the “guide on the side”. In this research paper, competition-based learning is highlighted and the strongest soft skills that can be achieved particularly by learners in the field of Information Technology (IT) are revealed. Competition-based learning is becoming in style due to the fun experience the learners can acquire during the competition. In addition, a study by Silva and Madeira (2010) confirmed that learners must be exposed to two learning methods, which are direct and indirect. Direct refers to face-to-face approach while indirect refers to competitive learning. Subsequently, Hwang et al. (2014) proved that learning using game-based approach can enhance learners’ problem solving skill as compared to the conventional learning style.

[]2 Literature Review 2.1

[]ICT Employability Skills

[]Rapid paced advancement in today’s ICT world is making this industry becomes more choosy in finding their ideal employees. A survey analysis conducted by Benamati (2007) verified that ICT industry prefers graduates that understand both

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[]technology and business to work with them. This shows that ICT graduates should also possess non-technical skills or soft skills when stepping into the ICT industry. However, still exist continuous reports that ICT graduates produced by universities nowadays are incapable to meet the industry’s requirements and face the ever-changing obstacles. This fact is supported by Nurita et al. (2004). According to their study, Malaysia ICT graduates are well trained in their specialized area but regrettably, they have insufficient level of soft skills. The skill gaps that exist in today’s ICT industry is also acknowledged by students and graduates. Ramakrishnan and Yasin (2011) confirmed that among 248 samples of ICT graduates in Malaysia, 50.4 % of them are not secure of their soft skills level can meet the rising demand from Malaysia ICT industry. While 8.78 % of them revealed that even though they completed good grades in their study years, they are not capable to communicate effectively due to lack of confidence. A research by Suhaimi and Sukiman (2012) clearly described that an ideal ICT graduate should possess a combination of technical and soft skills. The analysis conducted by them validates their hypothesis as they list down the top 10 skills required by Malaysia ICT industry as further shown in Table 1. Llorens-Garcia et al. (2009) also conducted a research to discover the proficient values that each ICT Specialist should acquire. They agreed that 20 important skills and abilities must be applied by ICT graduates during their study years in preparing them to be great ICT Specialists. That skills include software development, deployment of Information Technology, communication, creativity, leadership, problem solving skills and team work. With respect to producing ideal ICT graduates, universities can no longer depend on the conventional face-to-face lecture environment. The learners should be given the opportunity to practice other learning methods and cultures. The next section highlights that competition-based learning has been accepted and applied broadly in fields other than Information Technology. In addition, Sect. 2.2 also justifies that a mixture of soft skills can be accomplished through competition-based learning environment. Table 1 Top 10 essential skills as perceived by Malaysia ICT industry Rank

[]Description

[]Type

[]Level of agreement in percentage

[]1 2 3 4 5 6

[]Problem solving process Team work skills Listening skills Time management skills Ability to apply knowledge Ability to design user friendly applications Adaptability to new technologies and languages Ability to code programs Ability to multitask Ability to implement programs

[]Soft skills Soft skills Soft skills Soft skills Soft skills Technical skills

[]86.6 85.0 81.7 81.7 81.7 80.0

[]Soft skills

[]78.4

[]Technical skills Soft skills Technical skills

[]76.7 76.7 76.6

[]7 8 9 10

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[]2.2 2.2.1

[]S.A. Sukiman et al.

[]Competition-Based Learning Introduction

[]Competition is originated from Latin which has different definitions depending on its context. Generally it is defined as a contest to accomplish mission in which a winner is selected from among two or more entrants. Competition is also very synonym with a series of games. In this research, the competition term is used in computer programming context. There are hundreds of local and international competitions attracting students at all levels of education especially for computer programming. The competitions can be conducted on annual basis or on-going basis. For example, some of the well-known competitions in the computer programming area may include: ACM Collegiate Programming Contest, International Conference on Functional Programming, Google Code Jam, Project Euler, Intel’s Threading Programming Problems, Codechef, British Informatics Olympiad, and HP Code Wars. These competitions are one of the students’ motivations to learn programming and also one of the best learning styles, which is competition-based learning. Competition based learning (CBL) is a learning technique which applies the concept of reward after the task completed. Similar to competitive and collaborative learning (Silva and Madeira 2010) and active learning (Carroll 2013). According to Carroll (2013), CBL is essentially project-based learning, still involving teams of students in an open-ended assignment resembling a scaled down version of a problem. Previous researchers have incorporate competition method with others learning styles such as project-based Willard and Duffrin (2003). Other than that it also can be hinged with collaborative learning, cooperative learning, and game-based learning. The goodness of CBL cannot be disputed because it will increase student’s performance, knowledge and skills. Willard and Duffrin (2003), find out when the instructor incorporates competition into an assignment, students have a higher stake in the outcome of their projects and therefore, there is a greater intensity to learn. Through CBL while the students learn complicated concepts, they also gain technical and soft skills. Since, there are so many advantages of CBL, a lot of researches have been done on competition-based learning in engineering (Chen et al. 2014; Grover et al. 2014; Li et al. 2009; Tukiran et al. 2008). A few researches look into CBL in computer programming (Burguillo 2010; Chung 2008; Silva and Madeira 2010), particularly in determining the students’ soft skills. Therefore, this study is in-depth the soft skills of students in CBL. 2.2.2

[]Competition-Based Learning Motivates Students in Soft Skills

[]In CBL, skills can be divided into technical skills and soft skills. In this study, we focus on the soft skills gained by students through the competition process. Previous researches findings proved that the CBL motivates students to polish their soft skills. Table 2 shows the example of soft skills that can be extracted using the CBL

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[]Introductory food science course Digital system design course Mechatronic course Mechatronic course Engineering topics with soccer playing humanoid robots Competition based course on climbing robot

[]Willard and Duffrin (2003)

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[]Li et al. (2009)

[]Tukiran et al. (2008) Grover et al. (2014) Chen et al. (2014) Mohan et al. (2008)

[]Area implemented

[]Researchers

[]/

[]/

[]/

[]/

[]/

[]/

[]/

[]/ /

[]/

[]/

[]/

[]/

[]Soft skills in competition-based learning Communication Team Problem-solving work

[]Table 2 Previous research on soft skills in CBL

[]/

[]/

[]/

[]Critical thinking

[]/

[]/

[]/

[]/

[]Continuous learning

[]/

[]Entrepreneurial

[]/

[]Ethics and professional values

[]/

[]/

[]Leadership

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[]approach. The soft skills developed through CBL are communication, teamwork, problem solving, critical thinking, continuous learning, entrepreneurial, ethics and professional values and leadership skills (Willard and Duffrin 2003; Tukiran et al. 2008; Grover et al. 2014; Chen et al. 2014; Mohan et al. 2008; Li et al. 2009). From the previous studies, it shows that communication, teamwork, problem solving and continuous learning skills are the soft skills that always achievable in CBL approach. This is due to most of the courses that apply the CBL combine the CBL with problem-based learning or project-based learning approaches. Besides these soft skills, the instillation of competitive skill among students may also exist through the CBL because they need to ensure their output is the best in order to win the competition. The teamwork spirit is very important to achieve this goal. Good collaboration, cooperative and communication are the recipe to have successful team (Willard and Duffrin 2003; Tukiran et al. 2008). Through CBL also, we encourage the students to achieve more in the class (Willard and Duffrin 2003; Mohan et al. 2008). For example, they may need to explore the new tools that they not learn in the class in order to deliver the best output for winning the competition. In addition, they need to come out with creative ideas to complete the tasks or project given. Indirectly, the skill in analysing the problem or project in critical ways can be polished through the CBL. They easily get hold of deeper understanding towards their courses or subjects. All of these soft skills are beneficial to students as preparation prior starting their career in ICT industry. The CBL helps the students in preparing them to encounter real life situation (Tukiran et al. 2008; Mohan et al. 2008). They can obtain clearer picture towards circumstances of any relevant profession they may join. In conclusion, CBL is possible to help students prepare themselves in becoming motivated and high quality employees.

[]3 Methodology 3.1

[]Promed 2014—Overview

[]Promed 2014 is an acronym for programming competition participated by Computer Science learners earlier this year. The competition is divided into two categories which are beginner level and intermediate level. Rule of thumb for this competition is only junior learners are allowed to enter the beginner level, while the seniors can enter only the intermediate level of this competition. The learners are allowed to form a team of utmost two person. However, the competition has no restriction if the learners wish to battle alone. The time interval for this competition is 3 h. The learners are prohibited to bring any softcopy notes and references but they are allowed to bring hardcopy printed reading resources such as their programming text books. In terms of scoring, each team of learners was given the opportunity to answer only three times. The points

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[]given is dissimilar for each submission attempt. The learners get 10 points if their answer is right at the first attempt, 5 points if they failed during the first attempt and 3 points if they failed during the first and second attempts. No points are given for the forth attempt and so on. Then, the cumulative points are calculated and the team with highest points for each category wins Promed 2014. At the end of Promed 2014, all the participants were requested to answer a short questionnaire related to skills they have gained and increased through out the competition. The questions were selected after reviewing research papers related to competitive learning environment in university level. Only pertinent questions were pulled out and condensed accordingly to fit the current Malaysia university circumstance. A full and in-depth analysis of the questionnaire is further explained in Sect. 3.2.

[]3.2

[]Questionnaire Analysis

[]To conduct the relevant analysis in this study, the possible soft skills are determined by using factor analysis. The analysis begins with the reliabili