Strategic adaptation and the value of forecasts: The development of a conceptual framework

This paper examines the lack of emphasis on the value of forecasts in strategic adaptation frameworks. The objective of this paper is to offer a conceptual framework of strategic adaptation that incorporates and emphasizes the value of forecasts. In developing the framework, we incorporate three different studies. Eunni's model (2003) purports to rank companies with high strategic adaptation ability in an industry. Further, in developing our framework, we specifically link the contributions of Lawrence et al. (2006) and Mentzer et al.(1996, 1999). Our study highlights that companies with high strategic adaptation ability need to be examined further in order to understand and take on board how they withstand the volatile market. It is intended that the conceptual framework, driven by previous studies and the current scenario, will offer a better direction for companies to adapt towards an objective indicator of the value of forecasts for strategic purposes. First published online: 14 Oct 201

Value relevance of aggregated vs disaggregated book value and earnings : evidence from Malaysian high-tech firms / Mohd Halim Kadri, Muhd Kamil Ibrahim and Rozainun Abdul Aziz.

This study is aimed at investigating the value relevance of aggregated and disaggregated book value and earnings of high-tech firms listed on Bursa Malaysia for the period from 2003-2008. Using the Ohlson (1995) basic and modified equity valuation models, this study investigated whether disaggregated book value and earnings could explain the variation in market value better than aggregated book value and earnings. The results of the basic model show that the explanatory powers of both book value and earnings are fluctuating with book value is in a decreasing trend whereas earnings is in an increasing trend. The results of the modified models show that disaggregated book value and earnings could explain the variation in market value better than aggregated book value and earnings

Governance mechanisms and firm performance in family-owned companies in Malaysia / Azmi Abd. Hamid, Rozainun Abdul Aziz and Asyifa Laila Hosni

The study examines the relationship between management and governance mechanisms upon the performance of family-owned companies. The results indicated that the performances of family-owned companies' were influenced by the implementation of corporate governance in their management processes. Hence, the result reveals a significant association between family-owned companies' performance in relation to management and governance mechanisms. However, the findings found that Malaysian family-owned companies may be reluctant to protect the minority shareholders’ rights as the findings show that the independent directors portrayed significant negative association with the firm’s performance. The presence of the independent directors in the company could not improve the monitoring of the management activities and on shareholders' influence. In addition, the ROE result shows that the larger managerial ownerships, the higher the firms' performance but in turn it will heighten the minority shareholders' expropriation. The higher level of managerial

Strategic performance measurement system and organisation capabilities: Using levers of control framework

The purpose of this paper is to use the levers of control to examine the relationship between strategic performance measurement system and organisational capabilities. The main objective is to examine how strategic performance measurement system influences organisational capabilities. This study proposes that strategic performance measurement system is positively related to organisational capabilities. This paper reports the results of a pilot study of a mail survey. The response came from the top management of 80 Malaysian manufacturing and service firms. The results indicate that beliefs, boundary, diagnostic and interactive control system is positively and significantly correlated with overall organisational capabilities. As for the relationship of levers of control dimension and individual organisational capabilities, the result indicates an overall positive and significant relationship. However, the relationship between diagnostic use and entrepreneurship is not significant

Strategic performance measurement systems and organisational learning

This paper reports the results of a study on strategic performance measurement systems (SPMS) and organisational learning.The main research question in this study is whether SPMS are able to facilitate organisational learning. The data was collected from a mail survey to top management of Malaysian listed companies.The results show that SPMS design makes a unique and significant contribution with organisational learning

Strategic Performance measurement system, Organisational capabilities and competatitive advantage

This study examines organisational capabilities as a potential mediator in the link between SPMS use and organisational competitive advantage. The data was collected using a mail survey to top management of listed companies in Malaysia. The results show that SPMS makes a significant contribution with organisational competitive advantage and capabilities. However, diagnostic use is not significantly associated with organisational capabilities. The findings contribute to the body of knowledge by showing the role of SPMS from the perspective of the resource-based view theory and levers of control framework. The findings acknowledge that SPMS can be an indirect source for competitive advantage through its ability to enhance organisational capabilities

Corporate governance reporting of top 250 companies: Recent evidence from emerging economic

Abstract The aim of the research is to determine the intensity of corporate governance reporting and disclosure by the top 250 public listed companies (PLCs) in Malaysia. Subsequently, this study determines whether corporate governance reporting has any significant relationship with firm's performance. Using the corporate governance disclosure index, top 250 public listed company's annual report is examined and the scores are recorded for each disclosure item stated. Finding of the study revealed that there is no specific pattern on corporate governance reporting among the Top 250 PLCs in Malaysia and the disclosure index. Some companies had provided a concise and detailed disclosure on every aspect of governance matters as compared to others. The findings also show that there is a very weak negative relationship between the governance score and firm's performance. This finding indicates that corporate governance mechanism in Malaysia is not specifically for the purpose of enhancing the firm performance but as an important element for directors to perform their oversight responsibilities and efficiently monitor the management

Strategic performance measurement system design and organisational capabilities / Rapiah Mohamed, Wee Shu Hui, Ibrahim Kamal Abdul Rahman and Rozainun Abdul Aziz

This paper reports the results of strategic performance measurement system (SPMS) design and organisational capabilities i.e. market orientation, entrepreneurship, innovation and organisational learning. The main research question of this study is ‘does the adoption of SPMS that consists of financial and non-financial measures enhance organisational capabilities’. The data was collected using a mail survey to top management of listed companies in Malaysia. The results found that overall SPMS design had a statistically significant influence on organisational capabilities