Entrepreneurial Orientation (EO) and Performance of Government-Linked Companies (GLCs)

• Autorzy: Koe Wei-Loon
• Języki publikacji: EN

Abstrakty

EN

Quite often, people have negative views on government-linked companies (GLCs) due to the unsatisfactory performance of some key players. In order to improve the performance of GLCs in the country, Malaysian government implemented GLC Transformation Program (GLCT) in 2004. As the program is approaching its ending phase, some efforts are needed to assess the performance of GLCs. This study aimed to examine the influence of EO dimensions on the performance of GLCs. The sample of this study consisted of 153 subsidiaries and branches of G20. Based on the multiple regression analysis performed, this study found that all the five dimensions in EO, namely innovativeness (INNO), pro-activeness (PROA), risk-taking (RISK), competitive aggressiveness (COMP) and autonomy (AUTO) recorded significant positive effects on performance of GLCs. Competitive aggressiveness was identified as the most important factor that influences the performance of GLCs. As such, all the hypotheses developed for this study were supported. The results suggested that EO is not only suitable to be applied in privately owned companies, but also in GLCs. Hence, GLCs should not be perceived as public entities and they should be more entrepreneurial in managing their organizations to achieve high performance. Furthermore, this study also verified that EO is a good determinant of GLCs' performance. At the end of this paper, recommendations for future research have been put forth. (original abstract)

Ludzie bardzo często mają negatywne opinie na temat firm powiązanych z rządem (GLC), co spowodowane jest niezadowalającą efektywnością głównych graczy w tej branży. W celu poprawienia efektywności firm państwowych, rząd Malezji w 2004 roku wdrożył Program Transformacji GLC. Jako iż program dobiega końca, należałoby ocenić efektywność GLC. Nasze badania objęły 153 filie i oddziały firm z grupy G20, a celem było zbadanie wpływu wywieranego przez wymiary orientacji przedsiębiorczej na GLC. Opierając się na przeprowadzonej analizie wielokrotnej regresji, badania nasze dowiodły, iż innowacyjność (INNO), proaktywność (PROA), podejmowanie ryzyka (RISK), agresywne konkurowanie (COMP) oraz autonomia (AUTO) odnotowały znaczący pozytywny wpływ na efektywność GLC. Jako takie, wszystkie hipotezy sformułowane podczas naszych badań znalazły potwierdzenie. Wyniki sugerują, że orientacja przedsiębiorcza nie tylko nadaje się do zastosowania w firmach prywatnych, lecz także w GLC. Dlatego GLC nie powinny być postrzegane jako organizacje publiczne; powinny one wykazywać większą przedsiębiorczość w zarządzaniu organizacją, by osiągnąć lepsze efekty. Ponadto, badanie zweryfikowało, że orientacja przedsiębiorcza jest dobrą determinantą efektów osiąganych przez GLC. Praca kończy się zaleceniami dotyczącymi przyszłych badań. (abstrakt oryginalny)

Słowa kluczowe

EN

Pro-activity; Entrepreneurial orientation; Effectiveness; State enterprises; G20 summits

PL

Proaktywność; Orientacja przedsiębiorcza; Efektywność; Przedsiębiorstwo państwowe; Szczyt G20

• Czasopismo: Journal of Entrepreneurship, Management and Innovation (JEMI)
• Rocznik: 2013
• Tom: 9
• Numer: nr 3 Entrepreneurial Orientation and Opportunities
• Strony: 21--41

Twórcy

autor

Koe Wei-Loon

• Universiti Teknologi MARA, Malaysia

Bibliografia

• Ang, J.S. and Ding, D.K. (2006). Government Ownership and the performance of government-linked companies: The case of Singapore. Journal of Multinational Financial Management, 16, 64-88.
• Arbaugh, J.B., Cox, L.W., Camp, S.M. (2009). Is entrepreneurial orientation a global construct? a multi-country study of entrepreneurial orientation, growth strategy, and performance. The Journal of Business Inquiry, 8(1), 12-25.
• Avlonitis, G.J., Salavou, H.E. (2007). Entrepreneurial orientation of SMEs, product innovativeness, and performance. Journal of Business Research, 60(5), 566-575.
• Awang, A., Khalid, S.A., Yusof, A.A., Kassim, K.M., Ismail, M., Zain, R.S. and Madar, A.R.S. (2009). Entrepreneurial orientation and performance relations of Malaysian Bumiputera SMEs: The impact of some perceived environmental factors. International Journal of Business and Management, 4(9), 84- 96.
• Boubakri, N., Cosset, J.C., Guedhami, 0. (2009). From state to private ownership: Issues from strategic industries. Journal of Banking and Finance, 33(2), 367-379.
• Casillas, J.C., Moreno, A.M. (2010). The relationship between entrepreneurial orientation and growth: The moderating role of family involvement. Entrepreneurship & Regional Development, 22(3-4), 265-291.
• Chandrakumara, A., Zoysa, A.D., Manawaduge, A. (2011). Effects of the entrepreneurial and managerial orientations of owner-managers on company performance: An empirical test in Sri Lanka. International Journal of Management, 28(1), 139-158.
• Chen, Y.C., Li, P.C., Evans, K.R. (2012). Effects of interaction and entrepreneurial orientation on organizational performance: Insights into market driven and market driving. Industrial Marketing Management, 41,1019-1034.
• Cooksey, R.W. (2007). Illustrating Statistical Procedures: For Business, Behavioral and Social Science Research. Australia: The Tilde Group.
• Covin, J.G., Slevin, D.P. (1989). Strategic management of small firms in hostile and benign environments. Strategic Management Journal, 10, 75-87.
• Covin, J.G., Slevin, D.P. (1991). a conceptual model of entrepreneurship as firm behavior. Entrepreneurship Theory and Practice, Fall, 7-25.
• Davis, J.L., Bell, R.G., Payne, G.T., Kreiser, P.M. (2010). Entrepreneurial orientation and firm performance: The moderating role of managerial power. American Journal of Business, 25(2), 41-54.
• Elifson, K.W., Runyon, R.P., Haber, A. (1998). Fundamental of Social Statistics. New York: McGraw Hill.
• Fairoz, F.M., Hirobumi, T., Tanaka, Y. (2010). Entrepreneurial orientation and business performance of small and medium scale enterprises of Hambantota District Sri Lanka. Asian Social Science, 6(3), 34-46.
• Grande, J., Madsen, E.L., Borch, O.J. (2011). The relationship between resources, entrepreneurial orientation and performance in farm-based ventures. Entrepreneurship & Regional Development, 23(3-4), 89-111.
• Hafeez, S., Chaudhry, R.M., Siddiqui, Z.U., Rehman, K.U. (2011). The effect of market and entrepreneurial orientation on firm performance. Information Management and Business Review, 3(6), 389-395.
• Hair, J.F., Black, W.C., Babin, B.J., Anderson, R.E. and Tatham, R.L. (2006). Multivariate Data Analysis, (6th Ed). Upper Saddle River, NJ: Prentice Hall.
• Hameed, I. and Ali, B. (2011). Impact of entrepreneurial orientation, entrepreneurial management and environmental dynamism on firm's financial performance. Journal of Economics and Behavioral Studies, 3(2), 101-114.
• Huang, S.K., Wang, Y.L. (2011). Entrepreneurial orientation, learning orientation, and innovation in small and medium enterprises. Procedía Social and Behavioral Sciences, 24, 563-570.
• Hughes, M., Morgan, R.E. (2007). Deconstructing the relationship between entrepreneurial orientation and business performance at the embryonic stage of firm growth. Industrial Marketing Management, 36, 651-661.
• Huit, G.T.M., Hurleyb, R.F., Knight, G.A. (2004). Innovativeness: Its antecedents and impact on business performance. Industrial Marketing Management, 33, 429-438.
• Javalgi, R.G., Todd, P.R. (2011). Entrepreneurial orientation, management commitment, and human capital: The internationalization of SMEs in India. Journal of Business Research, 64(9), 1004-1010.
• Keh, H.T., Nguyen, T.T.M., Ng, H.P. (2007). The effects of entrepreneurial orientation and marketing information on the performance of SMEs. Journal of Business Venturing, 22, 592-611.
• Lau, Y.W., Tong, C.Q. (2008). Are Malaysian Government- Linked Companies (GLCs) creating values? InternationalApplied Economics and Management Letters, 1(1), 9-12.
• Li, Y.H., Huang, J.W., Tsai, M.T. (2009). Entrepreneurial orientation and firm performance: The role of knowledge creation process. Industrial Marketing Management, 38, 440-449.
• Lumpkin, G.T., Dess, G.G. (1996). Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of Management Review, 21(1), 135- 172.
• Madhoushi, M., Sadati, A., Delavari, H., Mehdivand, M., Mihandost, R. (2011). Etrepreneurial orientation and innovation performance: the mediating role of knowledge management. Asian Journal of Business Management, 3 (4), 310-316.
• Madsen, E.L. (2007). The significance of sustained entrepreneurial orientation on performance of firms - a longitudinal analysis. Entrepreneurship & Regional Development, 19 (March), 185-204.
• Miller, D. (1983). The correlates of entrepreneurship in three types of firms. Management Science, 29, 770-791.
• Najid, N.A., Rahman, R.A. (2011). Government ownership and performance of Malaysian government-linked companies. International Research Journal of Financial and Economics, 61,42-56.
• Norhayati, M.A., Siti-Nabiha, A.K. (2009). a case study of the performance management system in a Malaysian Government Linked Company. Journal of Accounting and Organizational Chang, 5(2), 243-276.
• Omar, A.R.C., Mohamad, M.R., Kader, R.A. (2012). Entrepreneurship Orientation and Malaysian State-owned Enterprises: The Management Challenges. Proceedings in 3rd International Conference on Business and Economic Research (ICBER), March 12-13, 2012. Bandung, Indonesia.
• Pallant, J., 2011. SPSS Survival Manual: a Step by Step Guide to Data Analysis Using SPSS, (4th Ed). Australia: Allen & Unwin.
• PCG Secretariat. (2005). Catalysing GLC Transformation to Advance Malaysia's Development. Retrieved from: http://www.pcg.gov.my/PDF/ PCG_Secretariat_ 29Jul05.pdf.
• Rahman, B.A., Shariff, M.N.M. (2009). Knowledge-based Malaysian GLC: Are they more innovative and performing much better? Malaysian Management Journal, 13( 1&2), 11- 19.
• Ramasamy, B., Ong, D., Yeung, C.H. (2005). Firm size, ownership and performance in the Malaysian palm oil industry. Asian Academy of Management Journal of Accounting and Finance, 1, 81-104.
• Razak, N.H.A, Ahmad, R., Joher, H.A. (2008). Ownership Structure and Corporate Performance: a Comparative Analysis of Government Linked and Non-government Linked Companies from Bursa Malaysia. Proceedings in 21st Australasian Finance and Banking Conference, August 24, 2008.
• Razak, N.H.A, Ahmad, R., Joher, H.A. (2011). Does government linked companies (GLCs) perform better than Non-GLCs? Evidence from Malaysian listed companies. Journal of Applied Finance & Banking, 1(1), 213-240.
• Ripollés-Meliá, M., Menguzzato-Boulard, M., Sánchez-Peinado, L. (2007). Entrepreneurial orientation and international commitment. Journal of International Entrepreneurship, 5, 65-83.
• Sekaran, U., Bougie, R. (2009). Research Methods for Business: a Skill Building Approach, (5th Ed). West Sussex, UK: John Wiley & Sons.
• Soininen, J., Martikainen, M., Puumalainen, K. and Kyláheiko, K. (2012a). Entrepreneurial orientation: Growth and profitability of Finnish small-and medium-sized enterprises. International Journal of Production Economics, 140(2012), 614-621.
• Soininen, J., Puumalainen, K., Sjogren, H. and Syrja,P. (2012b),The impact of global economic crisis on SMEs: Does entrepreneurial orientation matter? Management Research Review, 35(10), 927-944.
• Stevenson, H.H., Jarillo, J.C. (1990). a paradigm of entrepreneurship: Entrepreneurial management. Strategic Management Journal, 11, 17-27.
• Sun, Q., Tong, W., Tong, J. (2002). How does government ownership affect firm performance? Evidence from China's privatization experience. Journal of Business Finance Accounting, 29(1/2), 1-28.
• The Economist. (2005). The Malay Way of Business Change: An Attempt to Revive Malaysia's Underperforming State-owned Firms. August 18. 2005. Retrieved 10 October 2012 from: http://www.economist.com/ node/4307606.
• Tzokas, N., Carter, S., Kyriazopoulos, P. (2001). Marketing and entrepreneurial orientation in small firms. Enterprise and Innovation Management Studies, 2(1), 19-33.
• Wang, C.L. (2008). Entrepreneurial orientation, learning orientation, and firm performance. Entrepreneurship Theory and Practice, July, 635-657.
• Wiklund, J., Shepherd, D. (2005). Entrepreneurial orientation and small business performance: a configu rational approach. Journal of Business Venturing, 20, 71-91.
• Zainol, F.A., Daud, W.N.W. (2011). Indigenous ("Bumiputera") Malay entrepreneurs in Malaysia: Government supports, entrepreneurial orientation and firms performances. International Business and Management, 2(1), 86-99.