Examining the relationship between stakeholders focus and company performances: some empirical evidences from Malaysian business firms
This paper investigates the relationship between stakeholder focus capability; an important internal organisational capability with company performances. Stakeholder theory reflects that the firms’ performance will depend on how organisations balance the needs of their stakeholders. Meanwhile, TQ...
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| Format: | Article |
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Penerbit Universiti Kebangsaan Malaysia
2010
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| Online Access: | http://journalarticle.ukm.my/1969/ http://www.ukm.my/~ppsmfst/jqma/index.html |
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| _version_ | 1831354400923189248 |
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| author | Fazli Idris, Khairul Anuar Mohd Ali, Norsiah Aminudin, |
| author_facet | Fazli Idris, Khairul Anuar Mohd Ali, Norsiah Aminudin, |
| author_sort | Fazli Idris, |
| building | Tun Sri Lanang Library |
| collection | Institutional Repository |
| content_provider | Universiti Kebangsaan Malaysia |
| content_source | UKM Journal Article Repository |
| continent | Asia |
| country | Malaysia |
| description | This paper investigates the relationship between stakeholder focus capability; an important
internal organisational capability with company performances. Stakeholder theory reflects that
the firms’ performance will depend on how organisations balance the needs of their
stakeholders. Meanwhile, TQM model, while recognising the stakeholders needs, limits the
scope to only few vital groups. Furthermore, TQM model specifies the internal capability to
focus on important stakeholders and therefore we shall use TQM as our research framework.
This study focuses on three important stakeholders; customer, employee, and community
because of their direct relationship with business outcomes. An instrument is developed to
measure the related constructs and is found to be reliable. Using exploratory factor analysis,
we found that the items clearly group into the three factors; customer focus, employee focus,
and community focus. Another factor analysis on the company performance measure results in
a single factor. We proceed with the multiple regression analysis to test the relationship
between the dependent, company performances and the independent factors, the three
dimensions of stakeholder focus capability. The percentage variance explained by the three
factors is 68 percent. Customer, community and employee focus significantly influence the
company performances with beta coefficient of 0.563, 0.465, and 0.424 respectively. The
relationship is moderated by the company size with large companies is observed to have a
higher ability to focus. We conclude that emphasis on these three groups are important thus
developing the capability to focus on them must be given due consideration. Theoretical and
practical implications are discussed |
| format | Article |
| id | my-ukm.journal-1969 |
| institution | Universiti Kebangsaan Malaysia |
| publishDate | 2010 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| record_format | eprints |
| spelling | my-ukm.journal-19692011-06-21T03:56:56Z http://journalarticle.ukm.my/1969/ Examining the relationship between stakeholders focus and company performances: some empirical evidences from Malaysian business firms Fazli Idris, Khairul Anuar Mohd Ali, Norsiah Aminudin, This paper investigates the relationship between stakeholder focus capability; an important internal organisational capability with company performances. Stakeholder theory reflects that the firms’ performance will depend on how organisations balance the needs of their stakeholders. Meanwhile, TQM model, while recognising the stakeholders needs, limits the scope to only few vital groups. Furthermore, TQM model specifies the internal capability to focus on important stakeholders and therefore we shall use TQM as our research framework. This study focuses on three important stakeholders; customer, employee, and community because of their direct relationship with business outcomes. An instrument is developed to measure the related constructs and is found to be reliable. Using exploratory factor analysis, we found that the items clearly group into the three factors; customer focus, employee focus, and community focus. Another factor analysis on the company performance measure results in a single factor. We proceed with the multiple regression analysis to test the relationship between the dependent, company performances and the independent factors, the three dimensions of stakeholder focus capability. The percentage variance explained by the three factors is 68 percent. Customer, community and employee focus significantly influence the company performances with beta coefficient of 0.563, 0.465, and 0.424 respectively. The relationship is moderated by the company size with large companies is observed to have a higher ability to focus. We conclude that emphasis on these three groups are important thus developing the capability to focus on them must be given due consideration. Theoretical and practical implications are discussed Penerbit Universiti Kebangsaan Malaysia 2010-12 Article PeerReviewed Fazli Idris, and Khairul Anuar Mohd Ali, and Norsiah Aminudin, (2010) Examining the relationship between stakeholders focus and company performances: some empirical evidences from Malaysian business firms. Journal of Quality Measurement and Analysis, 6 (2). pp. 33-45. ISSN 1823-5670 http://www.ukm.my/~ppsmfst/jqma/index.html |
| spellingShingle | Fazli Idris, Khairul Anuar Mohd Ali, Norsiah Aminudin, Examining the relationship between stakeholders focus and company performances: some empirical evidences from Malaysian business firms |
| title | Examining the relationship between stakeholders
focus and company performances: some empirical
evidences from Malaysian business firms
|
| title_full | Examining the relationship between stakeholders
focus and company performances: some empirical
evidences from Malaysian business firms
|
| title_fullStr | Examining the relationship between stakeholders
focus and company performances: some empirical
evidences from Malaysian business firms
|
| title_full_unstemmed | Examining the relationship between stakeholders
focus and company performances: some empirical
evidences from Malaysian business firms
|
| title_short | Examining the relationship between stakeholders
focus and company performances: some empirical
evidences from Malaysian business firms
|
| title_sort | examining the relationship between stakeholders
focus and company performances: some empirical
evidences from malaysian business firms |
| url | http://journalarticle.ukm.my/1969/ http://www.ukm.my/~ppsmfst/jqma/index.html |
| url_provider | http://journalarticle.ukm.my/ |