Role of intellectual capital on organisational sustainability / Nur Hayati Ab Samad

In order to successfully accomplish their social and business mission, social entrepreneurial non-profit organisations (NPOs), which are also known as social enterprises, need to identify the appropriate elements of resources that affect their performance, since the management of resources is important to ensure organisational sustainability in the future. Thus, this study aims to examine the role of intellectual capital, in terms of human capital (HC), structural capital (SC) and relational capital (RC) on the sustainability of social enterprise in Malaysia. Content analysis was used as the research instrument in order to measure the sustainability index from information disclosed in the annual reports by 210 organisations registered under the Registry of Societies (ROS) in Malaysia for the year 2010. Various statistical analyses were carried out to examine the relationship between IC and the sustainability of social enterprise. Based on the multivariate analysis, the results have highlighted that SC had significant positive influence on sustainability of social enterprise while HC and RC did not have a significant positive relationship with the sustainability of social enterprise. Overall, this study hopes to contribute to a better understanding on the role' of IC on the sustainability of social enterprise. The findings offered several main implications for academicians, researchers, regulators as well as for the social enterprise itself by highlighted that SC was the most influential factor that was able to increase the sustainability of the social enterprise

Sustainability and accountability of social enterprise / Nur Hayati Ab Samad ... [et al.]

Sustainability and accountability are pervasive issues for social entrepreneurial non-profit organisations (NPOs), which are also known as social enterprises as they seek to balance their social mission with financial responsibility. With the increased in the scope and size of the social enterprise, there is also increased need for accountability and organisational sustainability. Thus, in order to successfully fulfil these needs, social enterprises need to identify the relevant factors of sustainability that relates closely with accountability and organisational performance. This study aims to examine the extent social enterprise’s sustainability based on the factors identified using self-constructed sustainability index. The four main factors are leadership capacity, adaptive capacity, management and technical capacity and financial viability. Content analysis was used to measure the sustainability index from the information disclosed in the annual reports by 210 organisations registered under the Registry of Societies (ROS) in Malaysia for the year 2010. Findings from the study indicates that most of the social enterprises are aware that effective leadership is vital for organisational sustainability. However, management and technical aspects tend to be neglected possibly due to lack of adequate resources and facilities to adapt to current changes. Overall, this study highlights that in order to survive in the future, the social enterprise need to appropriately address relevant factors that influence financial accountability and organisational sustainability especially on management and technical aspect in order to survive in the future

Effectiveness, accountability and understanding board characteristics of non-profit organisations in Malaysia / Norliza Omar … [et al.]

Non-profit organisations (NPOs) exist to fulfil the needs of societies that cannot be reached by the government and profit centres. Their ultimate goal is to create social values by solving social problems. In order to fulfil this social mission, it is vital for the NPOs to be effective. NPOs are associated with effective Board of Directors because they are the backbone for organisational success. Of late, there are growing media reports on mismanagement and diversion of NPOs funds. Despite having Board of Directors as trustees in NPOs, mismanagement is still on the rise. Previous findings suggest that NPOs’ board characteristics can be divided into two groups - (1) board characteristics that enhance NPOs’ effectiveness and (2) board characteristics that reduce NPOs’ effectiveness. Hence, this study aims to examine selected board characteristics of Malaysian NPOs. The selected board characteristics are board size, board engagement, board efficiency, board commitment, board with political connection and board professionalism. Using content analysis of NPOs registered under the Companies Commission of Malaysia (CCM), this study finds that, in general, the number of members on the board is seven. Board efficiency and engagement indicate that less than 50% of the members are committed in generating funds for the NPOs. However, results on board commitment indicate that board members are committed in managing their organisations efficiently. In relation to politically affiliated board members and professional affiliation, the results are 44% and 14% respectively. In summary, the findings provide insights on the characteristics of Malaysian NPOs’ board members in. It also provides a basis for future research in examining the influence of board characteristics on effectiveness as well as other areas of concern in NPOs