Risk Management and Value Creation: Empirical Findings From Government Linked Companies in Malaysia

Said, J., Alam, M.M., Abdullah, N.H.N. and Zulkarnain, N.N. 2016. Risk Management and Value Creation: Empirical Findings from Government Linked Companies in Malaysia. Review of European Studies. 8(2): 124-132.

8 Pages Posted: 31 Mar 2017 Last revised: 3 Apr 2017

See all articles by Jamaliah Said

Jamaliah Said

Universiti Teknologi MARA (UiTM)

Md. Mahmudul Alam

Universiti Utara Malaysia

Nik Herda Nik Abdullah

Universiti Teknologi MARA (UiTM)

Nur Zulkarnain

Universiti Teknologi MARA (UiTM)

Date Written: 2016

Abstract

This study is an attempt to assess the status of current level of value creation among the Government Linked Companies (GLCs) in Malaysia. This study collected primary data based on a set of questionnaire survey among 134 executives and managers of GLCs in Malaysia. The data were collected based on opinions of the ten factors of value creation practices by using the five-point Likert scale. The data were analysed using descriptive statistics. Further, the reliability of the data was tested using Cronbach’s alpha test, the validity of the data was tested by checking the normality test through skewness and kurtosis, and the consistency of the data was tested using factor analysis. On an average, 80.6% of the respondents agreed that they focus on these factors of value creation. Overall, the federal owned GLCs place more emphasis on certain elements of value creation than the state owned GLCs. Among the elements of value creation, the state owned GLCs emphasize the most on quality development and brand value creation, where the federal owned GLCs emphasized the most on reputation. The GLCs engaged in service sector emphasized the most on brand value and the GLCs engaged in manufacturing sector emphasized the most on customer satisfaction and quality development. This study suggest that GLCs in Malaysia improve the overall value creation by emphasizing on responsiveness, average return on investment, sales growth, profit growth and average return on sales.

Keywords: value creation, Government Linked Companies (GLC), risk, sustainable competitive advantage, Malaysia

Suggested Citation

Said, Jamaliah and Alam, Md. Mahmudul and Nik Abdullah, Nik Herda and Zulkarnain, Nur, Risk Management and Value Creation: Empirical Findings From Government Linked Companies in Malaysia (2016). Said, J., Alam, M.M., Abdullah, N.H.N. and Zulkarnain, N.N. 2016. Risk Management and Value Creation: Empirical Findings from Government Linked Companies in Malaysia. Review of European Studies. 8(2): 124-132.. Available at SSRN: https://ssrn.com/abstract=2943344

Jamaliah Said

Universiti Teknologi MARA (UiTM) ( email )

Md. Mahmudul Alam (Contact Author)

Universiti Utara Malaysia ( email )

Sintok, Kedah
Malaysia

Nik Herda Nik Abdullah

Universiti Teknologi MARA (UiTM)

40450 Shah Alam
Johor
Dungun, Selangor 23000
Malaysia

Nur Zulkarnain

Universiti Teknologi MARA (UiTM)

40450 Shah Alam
Johor
Dungun, Selangor 23000
Malaysia

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