2nd INTERNATIONAL CONFERENCE ON MANAGEMENT (2nd ICM 2012) 11th - 12th JUNE 2012 HOLIDAY VILLA BEACH RESORT AND SPA, LANGKAWI KEDAH, MALAYSIA

CONFERENCE PROCEEDING ISBN NO: 978-967-5705-07-6 WEBSITE LINK: www.internationalconference.com.my/proceeding.htm

Organized by

CONFERENCE MASTER RECOURCES

www.internationalconference.com.my Sponsored by

GLOBAL RESEARCH AGENCY Journal of Global Business and Economics Journal of Global Entrepreneurship Journal of Global Management i Asia Pacific Journal Of Operations Management

www.globalresearch.com.my

2nd INTERNATIONAL CONFERENCE ON MANAGEMENT (2nd ICM 2012) PROCEEDING PANEL OF REVIEWERS ******************************************************************************* ****** Assoc. Prof. Dr. Norazah Mohd Suki Assoc. Prof. Dr. Fazli Idris Universiti Malaysia Sabah

National University of Malaysia

Prof. Dr. Raj K. Singh University of Riverside, USA

Assoc. Prof. Dr. Roderick Bugador De La Salle University, Manila, Philippines

Prof. Dr. Sami Ahmed Al-Smadi Yarmouk University, Jordan

Assoc. Prof. Dr. S. Saraswathi CBIT, India

Prof. Dr. Dina Rady Ain-Shams University, Cairo, EGYPT

Assoc. Prof. Dr. Hossein Ali Momeni Islamic Azad University, Iran

Prof. Madya Dr. Nik Mutasim Nik Ab. Rahman Universiti Kebangsaan Malaysia

Assoc. Prof. Dr. Walter Tan Teck Hong Sunway University College

Prof. Dr. Zoltan Veres Budapest Business School, Hungary

Assoc. Prof. Dr. Nader Alber Fanous Guirguis Ain Shams University, Cairo, EGYPT

Prof. Dr. Sadegh Bakhtiari Isfahan University

Assoc. Prof. Dr. Keoy Kay Hooi, Alan UCSI University

Assoc. Prof. Dr. Hemantkumar P. Bulsara National Institute of Technology, India

Assoc. Prof. Dr. Maria Jade Catalan-Opulencia Skyline University College, United Arab Emirates

Assoc. Prof. Dr. Ibrahim bin Ali, DSM, AMN DMDI International College, Melaka (DMDI-IC)

Assoc. Prof. Dr. K. Jayaraman Universiti Sains Malaysia

Assoc. Prof. Dr. Mohd Salehuddin Mohd Zahari Universiti Teknologi MARA

Asst. Prof. Dr. Faris Nasif ALShubiri Amman Arab University, Jordan

Assoc. Prof. Dr. Roshayani Dato' Arshad Universiti Teknologi MARA

Asst. Prof. Dr. Seyhan Sipahi Istanbul University, Turkey

Assoc. Prof. Dr. Adiqa Kusar Kiani Federal Urdu University Of Arts, Science And Tecnology, Pakistan

Dr. Haslindar Ibrahim Universiti Sains Malaysia Dr. Lily Wisker New Zealand Defence Force (NZDF), New Zealand

Assoc. Prof. Dr. Zafir Khan Mohammad Makhbul Universiti Kebangsaan Malaysia

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ii

2nd INTERNATIONAL CONFERENCE ON MANAGEMENT (2nd ICM 2012) PROCEEDING PANEL OF REVIEWERS ******************************************************************************* ****** Dr. Ahmad Fauzi Idris Dr. Azlina Abd. Aziz Kolej Universiti Insaniah

Universiti Malaysia Terengganu

Dr. Nasina Mat Desa Universiti Sains Malaysia

Dr. Nor Shaipah Abdul Wahab Universiti Utara Malaysia

Dr. Abdussalam Ismail Onagun Islamic Financial Services Board (IFSB)

Dr. Zuraina Dato Mansor Universiti Putra Malaysia

Dr. Joyce Nga Koe Hwee Sunway University College

Dr. Rosmah Mohamed Open University Malaysia

Dr. Zulnaidi Yaacob Universiti Sains Malaysia

Dr. Kamariah Ismail Universiti Teknologi Malaysia

Dr. Nek Kamal Yeop Yunus Universiti Perguruan Sultan Idris

Dr. Nor Azimah Chew Abdullah Universiti Utara Malaysia

Dr. Daisy Kee Mui Hung Universiti Sains Malaysia

Dr. Zainudin Arsad Universiti Sains Malaysia

Dr. Zarina Md Nor Universiti Sains Malaysia

Dr. Wan Fauziah Wan Yusoff Universiti Tun Hussein Onn Malaysia

Dr. Abdul Raheem Mohamad Yusof Universiti Perguruan Sultan Idris

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iii

2nd INTERNATIONAL CONFERENCE ON MANAGEMENT (2nd ICM 2012) is a traditional conference for scholars of management studies, welcoming participants from all around the world, with broad and diverse research interests. Among the many topics related to management, the special focus of the 2nd ICM 2012 is on social responsibility, professional ethics and management. The aim of the conference is to present and discuss research that contributes to the sharing of new theoretical, methodological and empirical knowledge, and to better understanding of management practices, in particular in the field of social responsibility and ethics in management. All papers at this conference proceeding are refereed papers and undergo a blind peer review process. PUBLISHED Published electronically (cd form) and in the website (online softcopy) - Open Access - by Conference Master Resources (SA0162468-A), No 33-2 Jalan 9/9C, Seksyen 9, 43650 Bandar Baru Bangi, Selangor Darul Ehsan Malaysia. Phone: +603-89271020, Fax: +603-89221020. DISTRIBUTED Distributed by Conference Master Resources (SA0162468-A). The views expressed in these proceeding are not necessarily those of the editorial staff or the publisher. All articles in this proceeding, unless otherwise noted, have undergone a blind review process. ORDERING INFORMATION This proceeding can be downloaded online (PDF softcopy) thru the website www.internationalconference.com.my (Open Access). It does also can be downloading from other website that has been acknowledgement by our institute/organization. ADVERTISING ENQUIERIES The cd form edition and online softcopy edition of this proceeding for advertising purpose can be asked thru the website www.internationalconference.com. or email us at: info@ internationalconference.com.my. Postal address: Conference Master Resources (SA0162468-A), No 33-2 Jalan 9/9C, Seksyen 9, 43650 Bandar Baru Bangi, Selangor Darul Ehsan Malaysia. Phone: +603-89271020, Fax: +603-89221020. COPYRIGHT It is a condition of publication that author assign copyright or license the publication rights in their articles, including abstracts, by the authors itself. Authors are themselves responsible for obtaining permission to reproduce copyright material from other sources. Copyright © 2012 Conference Master Resources. All right reserved. No part of this publication may be reproduced, stored, transmitted, or disseminated, in any form, or by any means, without prior written permission from Conference Master Resources, to whom all requests to reproduce copyright material should be directed, in writing. ABSTARCTING AND INDEXING SERVICES RePec, Conference Master Resources Database iv

2nd INTERNATIONAL CONFERENCE ON MANAGEMENT (2nd ICM 2012) PROCEEDING 11th - 12th JUNE 2012, HOLIDAY VILLA BEACH RESORT AND SPA, LANGKAWI KEDAH, MALAYSIA

CONTENTS PROCEEDING NO. & PAGES 001

TITLE

AUTHOR/S

INSTITUTION/ ORGANIIZATION/COUNTRY

A REVIEW OF SERVICE QUALITY MODELS

1.Ali Ramezani Ghotbabadi 2.Rohaizat Baharun (PhD) 3.Setareh Feiz

THE EFFECTS OF COMMISSIONER BOARD SIZE, CORPORATE LEVERAGE, CORPORATE SIZE, AND PROFITABILITY ON INFORMATION DISCLOSURE OF CORPORATE SOCIAL RESPONSIBILITY: EVIDENCES FROM MINING FIRMS IN INDONESIA

1.Zulhelmy bin Mohd. Hatta 2.Daryono

STRATEGIC ENVIRONMENT ANALYSIS USING DEMATEL METHOD THROUGH SYSTEMATIC APPROACH: CASE STUDY OF PETROLEUM DRILLING COMPANY IN IRAN WORKPLACE SPIRITUALITY AND NORMATIVE COMMITMENT

1.Negin Heydari 2.Reyhaneh Dehghan

Department of Management, Faculty Of Management and Human Resource Development, University of Technology Malaysia 1.Islamic university of Riau (UIR) Pekanbaru Indonesia. 1.PhD candidate from University of Malaya, Kuala Lumpur. 2.Fresh graduate in Economic faculty from Islamic University of Riau (UIR), Indonesia Industrial Management, University of Ershad Damavand, Iran

THE IMPACT OF ‘QUALBUS’ TOWARDS CUSTOMER SATISFACTION IN PUBLIC TRANSPORTATION

1.Tan Pei Kian 2.Khairunnisak Binti Latiff 3.Stany Wee Lian Fong

2.International Business School, Universiti Teknologi Malaysia 1.3.4.Faculty of Management and Human Resource Development, Universiti Teknologi Malaysia Faculty of Business and Law, Multimedia University, Melaka, Malaysia

MALAYSIAN CONSUMERS’ WILLINGNESS-TO-PAY FOR FUNCTIONAL FOOD

1.Phuah Kit Teng 2.Golnaz Rezai (PhD) 3.Prof. Zainalabidin Mohamed 4.Prof. Mad Nasir Shamsudin

Department of Agribusiness and Information Systems, Faculty of Agriculture, Universiti Putra Malaysia, UPM Serdang, Selangor, Malaysia

Page 1-8

002 Page 9-17

003 Page 18-29

004

1.Ebi Shahrin Suleiman 2.Wan Khairuzzaman Wan Ismail 3.Khalil Md Nor 4.Choi Sang Long

Page 30-44

005 Page 45-59 006 Page 60-70

v

007 Page 71-79

008 Page 80-92

009 Page 93-100

010

WHAT TYPE OF PROFESSIONALS DO YOU NEED IN YOUR ORGANISATION? EXPLORING THE IMPACT OF PROFESSIONAL TRAITS ON EMPLOYEE’S WORK PERFORMANCE STUDYING THE EFFECTS OF ORGANIZATIONAL CLIMATE IN RELATIONSHIP OF KNOWLEDGE MANAGEMENT AND ORGANIZATIONAL EFFECTIVENESS IN HIGHER EDUCATIONAL ORGANIZATION

1.Alharbi Mohammad Awadh 2.Wan Khairuzzaman Wan Ismail

PROMOTING STUDENTS’ CREATIVITY AT RESEARCH UNIVERSITIES IN MALAYSIA

1.Mojgan Afshari (PhD) 2.Simin Ghavifekr 3.Wumaierjiang Ayoufu

BRAND EQUITY IN AUTOMOTIVE SECTOR

1.Lim Hai Sze 2.Nik Intan Norhan Bt. Abd Hamid (PhD)

FACTORS CONTRIBUTING STUDENTS’ CREATIVITY

1.Wumaierjiang Ayoufu 2.Mojgan Afshari (PhD) 3.Simin Ghavifekr

ON THE RELATION BETWEEN KNOWLEDGE MANAGEMENT AND ORGANIZATIONAL INTEGRITY AND ENTREPRENEURSHIP OF EMPLOYEES IN THE UNIVERSITY ROLE OF SUPPLY CHAIN MAPPING IN SUSTAINABLE SUPPLY CHAIN MANAGEMENT

1.Sirous Hadadnia 2.Nima Shahidi 3.Zargham Yousefi

GUIDELINES FOR THE POTENTIAL DEVELOPMENT OF THE MUSHROOM FARM TO SUPPORT AGRO-TOURISM : A CASE STUDY OF THE MUSHROOM FARM IN HATYAI DISTRICT, SONGKHLA PROVINCE

1.Sawettachat Nakachat 2.THIRACHAYA MANEENETR (PhD)

MANAGEMENT FAILURE AS A MODE OF ASSESSING CORPORATE LIABILITY IN THE LAND PUBLIC TRANSPORT SERVICES SECTOR

1.Adilah Abd Razak 2.Ruzita Azmi

1.Nima Shahidi (PhD) 2.Siroos Hadadnia 3.Seyed Masoud Seyedi 4.Zargham Yusefi

Page 101-112

011 Page 113-119

012 Page 120-130

013 Page 131-148 014 Page 149-164

015 Page 165-175

1.Pradeepa Jayaratne 2.Lee Styger 3.Perera

vi

Universiti Teknologi Malaysia International Business School Malaysia 1.2.4.Noorabad Mamasani Branch, Islamic Azad University ,Noorabad Mamasani,Iran 3.Department of management, Shiraz Branslamic Azad university ,Shiraz, Iran Department of Educational Management, Planning and Policy, Faculty of Education, University of Malaya, Kuala Lumpur, Malaysia Faculty of Management & Human Resource Development Universiti Teknologi Malaysia Dept. Educational Management, Planning, and Policy Facutly of Education University of Malaya, Kuala Lumpur Noorabad Mamasani Branch, Islamic Azad University ,Noorabad Mamasani,Iran Sydney Business School University of Wollongong, Wollongong, NSW, Australia 1.Faculty of Management Science, Khon Kean University, Khon Kean Province, Thailand 2.Director of Centre for Asia-Pacific Tourism Research (CAPToR), Faculty of Management Science, Khon Kaen University, Thailand 1.Faculty of Economics and Management Universiti Putra Malaysia 2.College of Law, Government and International Studies Universiti Utara Malaysia

016 Page 176-185

017

A STUDY OF THE FACTORS THAT INFLUENCE INVESTOR IN MAKING GOLD DINAR INVESTMENT AT KOTA BHARU, KELANTAN

1.Wan Mohd Firdaus Wan Mohamad 2.Azzah Amran 3.Syazwani A.Malek@Abdul Malek 4.Nor Aslily Sarkam 5.Wan Saiful Azzam Wan Ismail 1.Norailis Ab Wahab (PhD) 2.Rozaini Bt Rosli

QUALITY OF WORK LIFE IN MALAYSIAN INSURANCE SECTOR

Page 186-194

018 Page 195-208 019 Page 209-220

020

MANAGEMENT STRATEGIES FOR ORGANISATIONAL IMPLEMENTATION OF SYSTEMIC CHANGE:A QUALITATIVE ANALYSIS IMPACT OF SOPHISTICATED PERFORMANCE MEASUREMENT SYSTEM DESIGN ON ORGANIZATIONAL PERFORMANCE - A CONCEPTUAL PAPER ONLINE SHOPPING BEHAVIOR OF JORDANIAN CUSTOMERS

1.Simin Ghavifekr 2.Mojgan Afshari 3.Wumaierjiang Ayoufu

Page 236-243

022 Page 244-256

023

Faculty of Technology Management, University Malaysia Pahang (UMP), Malaysia

1.Siti Norezam Othman 2.Nik Kamariah Nik Mat (PhD) 3.Mohammed A. Al-Jabari

College of business (COB), Universiti Utara Malaysia (UUM)

CROMPTON GREAVES: A CASE STUDY ON WHAT MAKES A MERGER SUCCESSFUL

1.N.M.Leepsa 2.Chandra Sekhar Mishra (PhD)

Vinod Gupta School of Management IIT-Kharagpur, Kharagpur, West Bengal, India

AN EMPIRICAL INVESTIGATION INTO FORMALISED STRATEGIC PLANNING IN SMALL AND MEDIUM ENTERPRISES (SMEs) IN SRI LANKA

1.Judy C. Wijesinghe 2.Evangeline Elijido-Ten (PhD) 3.Julie Foreman (PhD)

CUSTOMERS' ONLINE BUYING BEHAVIOR IN INDONESIA

Sulistyo Budi Utomo

1.Faculty of Management Studies and Commerce, University of Sri Jayewardenepura, Sri Lanka, -PhD at Swinburne University of Technology, Melbourne, Australia 2.3.Swinburne University of Technology, Melbourne, Australia Indonesia School of Economics Surabaya (STIESIA), Indonesia

ON FUZZY PREFERENCE OF DECISION MAKERS IN MULTIOBJECTIVE AND MULTILEVEL DECISION MAKING

1.Surafel Luleseged Tilahun 2.Hong Choon Ong (PhD)

THE DEVELOPMENT OF DECISIONSUPPORT MODEL FOR THE NEW OIL STATION BASED OF GEOGRAPHICAL INFORMATION SYSTEM (GIS) IN INDONESIA

1.Hening Widi Oetomo (PhD) 2.Marsudi Lestariningsih 3.Lilis Ardini 4.Daniel Harry Prasetyo

Page 257-269 024 Page 270-285 025 Page 286-302

1.Faculty Economic & Muamalat, Universiti Sains Islam Malaysia, Bandar Baru Nilai, Nilai, Negeri Sembilan 2.Medical Dept, Tokio Marine Faculty of Education University of Malaya

1.Ibrahim Ali Abushaiba 2.Prof. Yuserrie Zainuddin

Page 221-235

021

1.2.3.Faculty of Business Management, UiTM Kelantan 4.5.Faculty of Computer and Mathematical Sciences, UiTM Kelantan

vii

Universiti Sains Malaysia, School of Mathematical Sciences, Penang, Malaysia 1.2.3.School of Economics Indonesia (STIESIA) Surabaya, Indonesia 4.University of Surabaya

026 Page 303-312

027 Page 313-330 028 Page 331-345

029 Page 346-358

030 Page 359-378

031 Page 379-394 032 Page 395-410 033 Page 411-418

DETERMINING THE IMPACT OF HRM PRACTICE ON THE EMPLOYEES ATTITUDE: AN EMPIRICAL STUDY ON PHARMACEUTICAL COMPANY

1.Farhana Ferdousi 2.Sumayya Begum 3.Mohammad Amzad Hossain Sarker

THE EFFECT ANALYSIS OF SAVING AND SERVICE QUALITY TOWARD CUSTOMER SATISFACTION AND LOYALTY AT BANK JATIM APPLICATION OF NEW PUBLIC MANAGEMENT IN BANGLADESH: ANALYSIS OF POLITICOBUREAUCRATIC FACTORS

Khuzaini (PhD)

EXPLORING THE RELATIONSHIP AMONG JOB PERFORMANCE, SATISFACTION AND STRESS: A CONCEPTUAL FRAMEWORK OF MALAYSIA HIGHER LEARNING INSTITUITIONS ANALYSIS OF MOTIVATION, ABILITY, OPPORTUNITY, AND THREAT AND ITS INFLUENCE TO THE LECTURER EFFORTS TO IMPROVE ACADEMIC POSITION

1.Vi-Anne Ma 2.Huey-Wen Koh 3.Thiam-Yong Kuek

THE RELATIONSHIP BETWEEN SKILL BASED VOLUNTEERISM AND JOB PERFORMANCE AMONG VOLUNTEERS IN MALAYSIA REALITY ASSESSMENT OF THE CORRUPTION IN LIBYA AND SEARCH FOR CAUSES AND CURES

1.Chanthiran Veerasamy 2.Naresh Kumar

MANAGEMENT OF BIO-MEDICAL WASTE: AWARENESS AND PRACTICE IN SHIRAZ CITY OF IRAN

1.Parvin Lakbala (PhD) 2.Kavoos Dindarloo (PhD) 3.Farbood Ebadi Azar (PhD) 4.Mahboobeh Lakbala (PhD) 5.Hajeb Kamali (PhD)

1.Farhana Ferdousi 2.Prof. Lisheng Qiu

1.Marsudi Lestariningsih 2.Basuki

1.Ibrahim Noureddin Kamba 2.Mohd Fu’ad Sakdan

viii

1.School of Economics & Management, Wuhan University 2.3.School of Management Science & Engineering Wuhan University, P.R. China School of Economics Indonesia (STIESIA) Surabaya, Indonesia Faculty of Political Economics School of Economics & Management Wuhan University, China Faculty of Business and Finance Universiti Tunku Abdul Rahman

1.School of Economics Indonesia (STIESIA) Surabaya Indonesia 2.Faculty of Economics and Business, Universitas Airlangga, Surabaya, Indonesia Graduate School of Management University Putra Malaysia Ghazali Shafie Graduate School of Government, University Utara Malaysia (UUM) 1.Medical Record & Health Information Technology, Hormozgan University of Medical, Science, Bandar Abbas, Iran 2.School of Health Hormozgan University of Medical Science, Bandar Abbass, Iran 3.School of Health, Tehran University of Medical Sciences, Tehran, Islamic Republic of Iran, Iran 4.Shiraz University of Medical Science, Shiraz, Shoshtari Hospital, Iran 5.North Bristol Trust, NHS, England

034

DETERMINANTS OF CORPORATE SUSTAINABILITY ADOPTION IN FIRMS

1.Shamil, M.M.M. 2.Junaid M. Shaikh (PhD)

REFERENCE PRICES AND PURCHASE INTENTIONS: AN INVESTIGATION AT HOTELS

1.Mohd Taufik Zimri @ Zamri 2.Norzuwana Sumarjan (PhD) 3.Azdel Addul Aziz

AN IDENTIFICATION OF LEADERS′ VALUES IN SELECTED SUCCESSFUL IRANIAN COMPANIES

1.Gholamzadeh, Dariush (PhD) 2.Teimoory, Somayeh

COMPETENCY MODELING FOR PUBLIC SECTOR MANAGERS CASE STUDY: MIDDLE MANAGERS OF INDUSTRIAL SECTION IN IRAN

Dariush Gholamzadeh (PhD)

AN ANALYSIS OF STRATEGIC MANAGEMENT OF SME IN GUANGXI BEIBU GULF ECONOMIC ZONE, CHINA

1.Yuxiang Wang 2.Pusanisa Thechatakerng (PhD)

THE INFLUENCE OF FINANCIAL POLICIES ON EARNINGS MANAGEMENT, MODERATED BY GOOD CORPORATE GOVERNANCE (A STUDY BETWEEN LISTED COMPANIES IN INDONESIA STOCK EXCHANGE AND KUALA LUMPUR STOCK EXCHANGE) INNOVATION IN TEACHING – A CASE STUDY

1.Wahidahwati,SE.,Msi (PhD) 2.Didik Prasetiono,SE.,MM

THE INFLUENCE OF AUTHENTIC LEADERSHIP ON EMOTIONAL EXHAUSTION

1.Ying Yu, Chen (PhD) 2.Hsiao-Yi Chen

AWARENESS, SERVICE QUALITY AND PRODUCT EFFECTS ON SATISFACTION OF ISLAMIC BANKING IN BRUNEI DARUSSALAM

Mohamed Sharif Bashir (PhD)

IMPLEMENTING BIM FOR WASTE MINIMISATION IN THE CONSTRUCTION INDUSTRY: A LITERATURE REVIEW

1.Punitha Rajendran 2.Christy Pathrose Gomez (PhD)

Page 419-433 035 Page 434-446

036 Page 447-457

037 Page 458-479

038 Page 480-494

039 Page 495-520

040

Prerana Ashutosh Suru

Page 521-531 041 Page 532-543 042 Page 544-556

043 Page 557-570

ix

1.University of Kelaniya, Sri Lanka 2.Curtin University, Malaysia Department of Hotel Management, Faculty of Hotel & Tourism Management, Universiti Teknologi MARA, MALAYSIA 1.Faculty Of Management Islamic Azad University Centeral Tehran Branch, Iran 2.Isfahan University of Medical Sciences Vice-Chancellery for Cultural and Students Afairs Faculty of Economics and Management, Science & Research unit Tehran Azad University Central Branch Of Management Faculty, Tehran Azad University, Iran Business Administration Faculty of Business Administration Maejo University, Chiang Mai Province, Thailand 1.Sekolah Tinggi Ilmu Ekonomi Indonesia (STIESIA), Indonesia 2.Airlangga University, Indonesia

Modern College of Arts, Science and Commerce, Ganeshkhind, Pune Maharashtra, India Department of Business Administration, Aletheia University, Taiwan ROC Faculty of Business and Management Sciences Sultan Sharif Ali Islamic University- Brunei Darussalam Faculty of Technology Management, Business and Entrepreneurship University Tun Hussein Onn Malaysia

044 Page 571-582 045 Page 583-591

046 Page 592-600 047 Page 601-610

048 Page 611-638

049 Page 639-647

050 Page 648-667

051 Page 668-684

052 Page 685-695

053 Page 696-709

HUMAN RESOURCES IN EUROPEAN RESEARCH AREA - IMPACT ON EUROPEAN ECONOMY

Ecaterina Gica (PhD)

A MODEL OF ABSORPTIVE CAPACITY IN PUBLIC SECTOR: BASED ON INDIVIDUAL AND ORGANIZATIONAL COGNITIVE PROCESS

1.Nader Salehi 2.Rozeyta Bt Omar 3.Kamariah Bt Ismail

MARKETING STRATEGIES FROM PERCEPTION AND EXPECTATION OF REPEAT UMRAH VISITOR

1.Norailis Ab. Wahab (PhD) 2.Nursilah Ahmad 3.Rosnia Masruki 1.Mahfuz Abd Malek 2.Ainul Yusnita Mohamad Yusop 3.Norida Kamaruddin 4.Sudirman Zainal Abidin 1.Morni Hayati Jaafar Sidik (PhD) 2.Rahizah Abd Rahim 3.Farah Waheeda 4.Fitriya Abdul Rahim

AN ANALYSIS OF TECHNOPRENEURIAL INTENTION AMONG NON-BUSINESS STUDENT

CORPORATE SOCIAL RESPONSIBILITIES AND SMALL MEDIUM ENTERPRISES IN MALAYSIA

THE IMPROVEMENT OF HUMAN RESOURCE COMPETENCY OF FARMER GROUP DOING ORGANIC AGRICULTURAL PRODUCTION FOR THE STRENGTH OF SUSTAINABLE COMMUNITY ENTERPRISE AN EMPIRICAL EVIDENCE OF MALAY ACCOUNTING TERMINOLOGY IN MALAYSIAN ANNUAL REPORT

Jamnian Bunmark

A STUDY OF MALAY LANGUAGE USAGE IN MALAYSIAN ANNUAL REPORT

1.Mohd Noor Azli bin Ali Khan (PhD) 2.Shatira binti Mohd Zaini

STUDY OF FUNDAMENTAL PRINCIPLES OF SUSTAINABLE DEVELOPMENT WITH SPECIAL REFERENCE TO VOLUNTARY GIVING & PARTICIPATORY DEMOCRACY FOR ENVIRONMENT INVESTMENTS (A CASE STUDY OF HIWARE BAZAR) (TAL. AHMEDNAGAR, DIST. PUNE. MAHARASHTRA, INDIA) THE EFFECTS OF VIOLENCE ON RAW RUBBER PRODUCTION: A CASE OF PATTANI PROVINCE, THAILAND

Kailas N. Bavale (PhD)

1.Mohd Noor Azli bin Ali Khan (PhD) 2.Shatira binti Mohd Zaini

Sorfina Densumite

x

Faculty of Management, Academia de Stiinte Economice Bucharest, Romania Faculty of Management and Human Resource Development Universiti Teknologi Malaysia, Johor, Malaysia Fakulti Ekonomi dan Muamalat, Universiti Sains Islam Malaysia Universiti Kuala LumpurBritish Malaysian Institute, Malaysia

Faculty of Accountancy and Management University Tunku Abdul Rahman Bandar Sugai Long, Cheras, Selangor Darul Ehsan, Malaysia Faculty of Business Administration Maejo University, Sansai, Chiangmai, Thailand

Faculty of Management and Human Resource Development Universiti Teknologi Malaysia, Johor Faculty of Management and Human Resource Development Universiti Teknologi Malaysia, Johor -Principal, Pratibha College of Comm, Sci. & Comput Science, New Sangavi, Pune 27, India -Director , Pratibha Institute of Management & Research New Sangavi, Pune 27, India Center for Conflict Studies & Cultural Diversity Prince of Songkla University, Pattani Campus, Thailand

054 Page 710-722 055 Page 723-731

056 Page 732-738

057 Page 739-761

058

STRATEGIC HUMAN RESOURCE OUTSOURCING: AN EXPERIENCE OF AN MNC IN MALAYSIA

Mandy Siew Chen Sim

Nottingham University Business School, Malaysia Campus

DEVELOPMENT OF BATU PAHAT’S MOSQUES MANAGEMENT INFORMATION SYSTEM

1.Firkhan Ali Bin Hamid Ali 2.Rafidah Binti Hamzah

MALAYSIAN COMMUNICATIONS AND MULTIMEDIA COMMISSION’S POWERS IN MANAGING AND REGULATING ONLINE PUBLICATION

Farid Sufian Shuaib (PhD)

THE DETERMINANTS OF ORGANISATIONAL CULTURE THAT INFLUENCE CREATIVITY AND INNOVATION

1.Othman Aman 2.Noor Aniata Rahman 3.Albert Feisal@ Albert Ismail

TESTING THE CAPITAL ASSET PRICING MODEL ON THE EGYPTIAN STOCK

1.Abdalla Ab Sinusi Saiah 2.Abdul Talib Bin Bon (PhD)

FINANCING MECHANISM OF TVET INSTITUTIONS IN BANGLADESH – RECOMMENDATIONS FOR REFORM

Saif Rahman

Fakulti Teknologi Maklumat & Multimedia, Universiti Tun Hussein Onn Malaysia. (Formerly known as KUiTTHO), Johor , Malaysia Ahmad Ibrahim Kulliyyah of Laws International Islamic University Malaysia, Kuala Lumpur Faculty of Technology Management and Technopreneurship, University Technical Malaysia Melaka Faculty of Technology Management, Business and Entrepreneurship Universiti Tun Hussein Onn Malaysia School of Business North South University Bangladesh

A COMPARISON STUDY ON THE USE OF KNOWLEDGE MANAGEMENT SYSTEMS AND ENTERPRISE MICROBLOGGING SYSTEMS FOR ORGANIZATIONAL KNOWLEDGE SHARING BUSINESS JUDGMENT RULE: A NEW DEFENSE FOR BUSINESS AND MANAGEMENT DECISIONS BY COMPANY DIRECTORS?

1.Angela Lee Siew Hoong 2.Lim Tong Ming 3.Rasimah Aripin 4.Justin Lim Renn Aun

School of Computer Technology Sunway University, Bandar Sunway, Malaysia

1. Ruzita Azmi (PhD) 2.Adilah Abd Razak

FACTORS INFLUENCING FINANCIAL STABILITY DURING CHANGE MANAGEMENT PHASE: A CASE OF XYZ HOLDING BERHAD

1.Norzanah Mat Nor (PhD) 2.Ainaa Idayu Iskandar 3.Normaria Abdul Manaf 4.Mohamad Anuar Harun 5.Abu Hassan Ibrahim 1.Nik Ab Halim Nik Abdullah (PhD) 2.Sabariah Yaakub 3.Haim Hilman Abdullah

1.School of Law, UUM College of Law, Government and International Studies, Universiti Utara Malaysia 2.Faculty of Economics and Management, Universiti Putra Malaysia Faculty of Business Management University of Technology MARA, Shah Alam, Selangor, Malaysia

Page 762-772

059 Page 773-793 060 Page 794-815

061 Page 816-825

062 Page 826-841

063 Page 842-852

THE IMPACT OF CUSTOMER AND STAKEHOLDER PRESSURE, FINANCIAL AND COMPETITIVE PRESSURE, REGULATORY PRESSURE AND CORPORATE CITIZENSHIP PRESSURE ON REVERSE LOGISTICS ADOPTION

xi

1.2.Department of International Business School of International Studies Universiti Utara Malaysia 3.School of Management Universiti Utara Malaysia

064 Page 853-868

065 Page 869-881

066 Page 882-898 067 Page 899-914

068 Page 915-938 069 Page 939-948 070 Page 949-955 071 Page 956-968

072 Page 969-983

THE IMPACT OF ETHICAL CLIMATE ON ORGANIZATIONAL COMMITMENT AMONG ACADEMICIANS

1.Noorfaiz Purhanudin 2.Norharyani Adrus 3.Norhayati Md Isa

CYBER-ENTREPRENEURIAL INTENTION AMONG BUSINESS UNDERGRADUATES IN INSTITUIONS OF HIGHER LEARNING IN MALAYSIA

1.Mohd Nizam A. Badaruddin 2. Lawrence Arokiasamy (PhD) 3.Norhisham Mohammad Nordin (PhD) 4.Hamidah Yusof (PhD) 5.Thuraiya Zakaria

YOUTHS’ PERCEPTION AND INTENTION TOWARDS ENTREPRENEURSHIP ON ONLINE BUSINESS THE ROLE OF THE AUDIT COMMITTEE IN MODERATING THE NEGATIVE EFFECT OF NON-AUDIT SERVICES ON EARNINGS QUALITY

1.Muharratul Sharifah Shaik Alaudeen 2.Yong Azrina Ali Akbar

THE MANAGEMENT OF REPORTED EARNINGS IN SHARIAH COMPLIANCE COMPANIES: A PANEL DATA ANALYSIS OF ACCRUAL QUALITY BUILDING INFORMATION TECHNOLOGY MODEL IN SMEs SUPPLY CHAIN MANAGEMENT: REVIEW INFORMATION CONTENT ANALYSIS ON NEW REGULATION OF COMMERCIAL BANKS’ HEALTH: A STUDY ON INDONESIAN CASE FACTORS AFFECTING BRAND LOYALTY IN THE IRANIAN BANKING INDUSTRY

A STUDY OF WORKPLACE STRESS AMONGST MANAGERS AND ADMINISTRATORS

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Faculty of Accountancy University Teknologi Mara, Johor Faculty of Economics Bina Darma University, Palembang, Indonesia

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1.Training Manager And Tutor In Medicine Insurance Organization, Iran 2.Asst. Prof. Department Of Psychology, Payam Noor University, Iran 1.College of Graduate Studies, UNITEN 2.College of Foundation and General Studeis, UNITEN

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Department of Business, Faculty of Business and Finance, Universiti Tunku Abdul Rahman, Kampar, Perak 1.Department of Commerce and Accountancy University Tunku Abdul Rahman (UTAR) 2.School of Business and Management Quest International University Perak (QIUP) 3.4.Department of Computing Universiti Pendidikan Sultan Idris (UPSI), Perak, Malaysia 5.Department of Management and Leadership Universiti Pendidikan Sultan Idris (UPSI), Perak, Malaysia Faculty of Business Management Univeristi Teknologi MARA Johor Faculty of Accountancy Universiti Teknologi MARA, Johor

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Department of Agribusiness and Information System, University Putra Malaysia, UPM Serdang, Selangor, Malaysia School of Housing Building and Planning University Sains Malaysia

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Faculty of Management and Economics Universiti Malaysia Terengganu 1.International Islamic University College Selangor 2.National University of Malaysia

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School of Housing, Building and Planning, University Sains Malaysia

Faculty of Business Administration and Accountancy Universiti Sultan Zainal Abidin (UniSZA) Kampus Gong Badak, Terengganu, Malaysia Department of Management and Marketing, Faculty Economic and Management, University Putra Malaysia, Serdang, Selangor, Malaysia 1.Dept. of Technology Management Faculty of Technology Management, Business & Entrepreneurship 2.Dean, Faculty of Technology Management, Business & Entrepreneurship University Tun Hussein Onn Malaysia 3.Deputy Dean, Faculty of Technology Management, Business & Entrepreneurship, University Tun Hussein Onn Malaysia

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EXECUTIVE STOCK OPTION, CORPORATE GOVERNANCE AND VALUE OF THE FIRM: FACTS AND FICTION OF MALAYSIAN NONFINANCIAL LISTED COMPANIES THE SYNERGISM OF ABG TRIPLE HELIX : THE DEVELOPMENT OF BUSINESS INVESTMENT IN AGRICULTURAL (STUDY CASE: MALANG REGENCY INDONESIA) THE ADOPTION OF INFORMATION AND COMMUNICATION TECHNOLOGIES IN THE MANAGEMENT OF NIGERIAN OIL AND GAS SECTOR AN EMPIRICAL STUDY OF KNOWLEDGE MANAGEMENT PROCESSES IN AUDIT FIRMS IN MALAYSIA CORPORATE GOVERNANCE AND FIRM PERFORMANCE: A COMPARATIVE ANALYSIS OF TWO SECTORS OF MALAYSIAN LISTED COMPANIES INVESTIGATING AFFORDABILITY OF HOUSE OWNRESHIP AND THE CORPORATE SOCIAL RESPONSIBILITY IN MALAYSIA HOUSING DEVELOPMENT: CASE STUDY JOHOR BAHRU, MALAYSIA

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A STUDY OF QUALITY OF WORKING LIFE AMONGST MANAGERS IN MALAYSIAN INDUSTRIAL COMPANIES

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1.Amber Jamil 2.Fawad Asif Rana 3.Usman Raja (PhD)

Silvi Asna Prestiana Wati

Nathaniel C. Ozigbo (PhD)

Department of Business Administration University of Abuja, Abuja, Nigeria.

Fathiah Binti Hashim

Multimedia University, Melaka, Malaysia

1.Idris Adamu Alhaji 2.Wan Fauziah bt Wan Yusoff (PhD) 3.Mohammed Alkali

Department of Technology Management and Business, University Tun Hussein Onn Malasia, Johor, Malaysia

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Department of Real Estate Management Faculty of Technology Management, Business & Entrepreneurship University Tun Hussein Onn Malaysia (UTHM) Johor, Malaysia 1.College of Graduate Studies, UNITEN 2.College of Foundation and General Studeis, UNITEN International Islamic University, Islamabad, Pakistan

Azhar Harun (PhD)

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Department of Finance and Banking, Faculty of Business and Accountancy University of Malaya, Kuala Lumpur, Malaysia Economics And Business Faculty, University Of Brawijaya, Malang, Indonesia

School of Government, College of Law, Government and International Studies, Universiti Utara Malaysia, UUM Sintok, KEDAH, Malaysia 1.Faculty of Management Science, International Islamic University Islamabad, Pakistan 2.Shaheed Zulfiqar Ali Bhutto Institute of Science and Technology Islamabad Campus,

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1.Bahram Fathi 2.R.Tabande 3.M. Esmaelisan 4.K.Javadi

Pakistan 3.Faculty of Business Brock University, Canada Fakulti Teknologi Maklumat & Multimedia, Universiti Tun Hussein Onn Malaysia. (Formerly known as KUiTTHO) Johor, Malaysia 1.Institute of Administrative Sciences Punjab University, Lahore, Pakistan 2.3.Management Sciences Department COMSATS Institute of Information Technology, Lahore, Pakistan 1.3.Department of Economic, Aligoudarz Branch,Islamic Azad University, Aligoudarz, Iran 2.Population studies and Research Center in Asian and the pacific Universiti Teknologi MARA Kelantan Fakulti Business Management, Kampus Kota Bharu Wisma KUB, Kota Bharu Kelantan Faculty of Management Sciences, Riphah International University Islamabad, Pakistan Faculty of Social Sciences, Muhammad Ali Jinnah University, Islamabad, Pakistan 1.3.Department of Economic, Aligoudarz Branch,Islamic Azad University, Aligoudarz, Iran 2.Faculty of Economic and Management, University Kebangsaan Malaysia 4.Statistical Center of Iran 1.Accounting Departments, Islamic Azad University, Germi Branch, Iran 2.Accounting Departments, Islamic Azad University, Parsabad Branch, Iran

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1.3.4.Faculty of Business and Finance, Universiti Tunku Abdul Rahman, Perak Campus, Jalan Universiti, Kampar, Perak 2.Faculty of Education, National University Malaysia, Selangor Darul Ihsan 1.3.4.Faculty of Business and Finance, Universiti Tunku Abdul Rahman, Perak Campus, Jalan Universiti, Kampar, Perak 2.Faculty of Education, National University Malaysia, Selangor 1.2.4.Faculty of Business & Finance, UTAR 3.Quest International University

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AN ANALYSIS OF STRATEGIC MANAGEMENT OF SME IN GUANGXI BEIBU GULF ECONOMIC ZONE, CHINA Yuxiang Wang Master of Business Administration, Faculty of Business Administration, Maejo University, Chiang Mai, 50290, Thailand [email protected]

Pusanisa Thechatakerng (PhD) Faculty of Business Administration, Maejo University, Chiang Mai Province, 50290, Thailand [email protected] ABSTRACT A case study of Guangxi Huangshi Dairy Co., Ltd. was conducted in this research to explore: 1) how the company uses strategic management, and 2) if the company performance well, the strategic management would be expanded to other SME. Primary data were collected through in-depth interview and secondary data from websites, annual reports, and industrial analysis from academic documents. Internal Factor Evaluation (IFE) matrix and External Factor Evaluation (EFE) matrix was used to identify the company’s internal factors and external factors. The study focused on the strategic management process to analyze the chosen company.

Field of Research:

Strategic Management, SME, Guangxi Beibu Gulf Economic Zone, China

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1. INTRODUCTION Small and Medium-sized Enterprises (SME) are important for economic growth and business development due to their contribution to employment and job creation and to the innovativeness and high technology development in China. Ever since reform and opening up, especially the implementation of Western Development Program, the development of Guangxi Beibu Gulf Economic Zone (GBGEZ) witnessed remarkable progress. BGEZ has entered the best development period ever seen in history (Guangxi Beibu Gulf Economic Zone, 2011). However, in this new knowledge-based economic era, some new problems, such as unemployment, economic stagnancy, singleness of demand structure, insufficiency of market need and slump of stateowned large enterprises, appeared in the economic development of China, it is difficult for SME to survive, grow and develop due to several reasons. Foremost, the company lack of conscious and

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2nd INTERNATIONAL CONFERENCE ON MANAGEMENT (2nd ICM 2012) PROCEEDING 11th - 12th JUNE 2012. HOLIDAY VILLA BEACH RESORT & SPA, LANGKAWI KEDAH, MALAYSIA ISBN: 978-967-5705-07-6. WEBSITE: w w w . i n t e r n a t i o n a l c o n f e r e n c e . c o m . m y

experience of strategic management. Chinese SME network (Yu, 2003: 96) reported that 65% of SME closed within 5 years, 19% survived only for 6-10 years, and just 13% run business more than 10 years. In summary, there are some types of problems existed in SME in China (Fang, 2011: 63); Yanfeng Cao & Cunliang Yang, (2011: 22); Qin Liu & Bolin Zhou, (2010: 41): (1) some SME have no conscious of using strategic management; (2) some are Formalism; (3) some copy strategies from large corporations which not fit with themselves; (4) some never change their strategies once formulated; (5) some focus only on short-term operation, not long-term plan. In conclusion, on one hand, the strategic management is very important to the company’s survival and sustainable growth, on the other hand, the company confronts many problems that restraint its development. Improving competitiveness of small and medium-sized enterprises (SME) is an important approach to resolve these problems undoubtedly. The benefits of using strategic management can help SME to achieve competitive advantages by preparing the company to confront any controlled and/or uncontrolled issues, evaluating the implementation of the strategy, providing information of the issue of “environment fit”, and aids for understanding of the nature of environment change. According to several strategic management literatures, strategies are essential for building competitive advantages for SME (Analoui and Karami, 2003: 29; Coulter, 2008: 63). Guangxi Huangshi Dairy is a well performance company recommended by Guangxi Chamber of Commerce, China, which locates at Nanning new and high-tech development zone, Guangxi, China, which has been a listed company in Shen Zhen Stock Exchange (SZSE) in 2010, dozens of award was given by the both national and local government. As a ‘Star Enterprises’ with good performance in this area, the researcher is eager to explore how this company employ strategies to achieve such rapidly growth.

2. RESEARCH OBJECTIVES 1. To study how the company does use strategic management and its performance, 2. To study if the company performance well, the strategic management would be expanded to other SME. This research was conducted to focus only on strategic management implemented by Guangxi Huangshi Dairy Co., Ltd., which locate in Nanning New and High-tech Development Zone, Guangxi, China. And what the company performance is from 2008 to August 2011.

3. LITERATURE REVIEW The literature for this research review was based on the concept and theory of strategic management and its activities and process. In this thesis, the definition by Coulter (2008: 24) is used since this study focused on the strategic management process: Strategy is goal directed decisions and actions in which its capabilities and resources are aligned with the opportunities and threats in its environment.

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2nd INTERNATIONAL CONFERENCE ON MANAGEMENT (2nd ICM 2012) PROCEEDING 11th - 12th JUNE 2012. HOLIDAY VILLA BEACH RESORT & SPA, LANGKAWI KEDAH, MALAYSIA ISBN: 978-967-5705-07-6. WEBSITE: w w w . i n t e r n a t i o n a l c o n f e r e n c e . c o m . m y

Strategic Management is a concept and process of analyzing the current situation; developing appropriate strategies; putting those strategies into action; and evaluating, modifying, or changing those strategies as needed. That is, situation analysis, strategy formulation, strategy implementation, and strategy evolution (Coulter, 2008: 39). Figure 1 Basic Activities of Strategic Management

In general, the environment factors are classified into two main groups: external environment and internal environment, which includes PEST, industrial, and competitors analyze of external analysis and resources, dynamic capabilities of internal analysis. This paper focused on environment as sources of information, and how the external analysis (information) and internal analysis provide and influence the management in SME for planning and decision making was analyzed. This figure illustrates strategies of the research framework, regarding the effect of strategic management in SME performance. Figure 2 Theoretical Framework of Strategic Management.

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2nd INTERNATIONAL CONFERENCE ON MANAGEMENT (2nd ICM 2012) PROCEEDING 11th - 12th JUNE 2012. HOLIDAY VILLA BEACH RESORT & SPA, LANGKAWI KEDAH, MALAYSIA ISBN: 978-967-5705-07-6. WEBSITE: w w w . i n t e r n a t i o n a l c o n f e r e n c e . c o m . m y

4. RESEARCH METHODOLOGY The research was carried out in qualitative method since it aims to understand the phenomenon of SME strategic management on different levels. One of the important steps in this research is finding a respondent and doing semi-structured interview. One-on-one face-to-face interviews is mainly focused In order to gain more information, the writer conducted interview with middle corporate management of the company through face to face interview. This method helps to explore into deeper stages of analyzing the subject and support this research. Miles and Huberman (1994: 41) focus the process analysis into three sub processes, which are data reduction, data display, and verifying conclusion. Figure 3 Components of data analysis: interactive models

Regarding to reliability, the company was introduced to the researcher by the Guangxi Chamber of Industrial and Commercial, the researcher has been received with kindness and appreciation throughout the whole processes. Since the chosen company is a listed company in Shen Zhen Stock Exchange (SZSE), the secondary data is comprehensive and reliable that has been published in public. As to Validity, During the interview, the interviewees were given scope to express their opinion in their own way. The researcher also encourages them to elaborate, clarify their initial answers if necessary. Moreover, additional time for interview was given to ensure that the respondent feel free to respond without time pressure.

5. RESEARCH OUTCOME This study was conducted a case study to explore the strategic management implemented by Guangxi Huangshi Dairy Co., Ltd. Located in Guangxi Beibu Gulf Economic Zone, the company enjoys advantageous geography and rich resources. With the trend of economic development by the Chinese government in this area, the company takes opportunities from the government policies and GBGE Development Scheme.

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2nd INTERNATIONAL CONFERENCE ON MANAGEMENT (2nd ICM 2012) PROCEEDING 11th - 12th JUNE 2012. HOLIDAY VILLA BEACH RESORT & SPA, LANGKAWI KEDAH, MALAYSIA ISBN: 978-967-5705-07-6. WEBSITE: w w w . i n t e r n a t i o n a l c o n f e r e n c e . c o m . m y

From the interview and documents gathered, the chosen company is using both deliberate and emergent strategic management in its daily operation. It’s believed that the strategic management can affect company’s financial and non-financial performance.

6. SITUATION ANALYSIS The company focuses on its internal capabilities to build competitive advantages and also realized that internal factors can judge the feasibility of strategic decision. At the same time, it also pays attention to external factors since they stimulate the initiation of a strategic decision. The research indicates that understanding the role of internal and external factors, and constantly combine these two factors together into daily operation are the crucial factors for the company’s survival and growth. This paper analyzed the situation faced by the company in three aspects, they are, external environment analysis, internal environment analysis, and SWOT analysis. Table 1 Internal Factor Evaluation (IFE) Matrix Internal Weight Rating Weighted Strengths Score Local 0.3312 5 1.6560 resources Capital 0.1656 3.5 0.5796 Innovative 0.1104 4.5 0.4968 products Marketing 0.0783 4 0.3132 Technology 0.0662 4 0.2648 Quality control 0.0552 3.5 0.1932 Brand 0.0473 3.5 0.1655 Scale: local 0.0414 3 0.1242 largest manufacture Internal Weaknesses Insufficient 0.0368 2.5 0.0920 raw milk Raw material 0.0331 2 0.0602 price increase Customer 0.0301 2.5 0.0753 service Absolute competitive: 5; competitive: 4; average: 3; poor: 2; much poor: 1 Total 1 4.0208 weightedscore

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2nd INTERNATIONAL CONFERENCE ON MANAGEMENT (2nd ICM 2012) PROCEEDING 11th - 12th JUNE 2012. HOLIDAY VILLA BEACH RESORT & SPA, LANGKAWI KEDAH, MALAYSIA ISBN: 978-967-5705-07-6. WEBSITE: w w w . i n t e r n a t i o n a l c o n f e r e n c e . c o m . m y

Table 1 shows that Internal Factor Evaluation (IFE) matrix, which evaluated the internal factors of Guangxi Huangshi Dairy Co., Ltd. The weighted score at 4.0208 proves that the comprehensive level of internal factors of the company is on above average. Table 2 External Factors Evaluation (EFE) Matrix External Weight Rating Weighted Opportunities Score Industrial 0.3522 5 1.7610 growth Preferential 0.1761 4 0.7044 government policy Merger 0.1174 4 0.4696 Entrance to 0.0881 3 0.2642 first / second tier city Entrance to 0.0704 2.5 0.1760 international market External threats The recognition 0.0587 -3 -0.1761 of new brand and new product Customer 0.0503 -3 -0.1507 satisfaction Product 0.0440 -2.5 -0.1100 reputation New rules 0.0391 -1 -0.0391 issued by government Good opportunity:5; average opportunity: 1; great threat: -5; average threat:-1. Total weighted 1 2.899 score Table 2 reveals that the external factors of the firm was analyzed and evaluated, the weighted score is 2.899, which shows that the comprehensive external factors enjoys above average level.

Strategy Formulation Analoui and Karami (2003: 87) state that a vision statement comes from the “hearts” of top management, which means vision and mission often based on the value of the owner and top

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management, they try to share the same value with every employee in the organization , try to make sure that all employees have the same objectives with the company.

Corporate Strategy Vision: To be the most respectful leader in China’s dairy industry. Mission: Keep high quality, take care of people’s health. Corporate ideas: Create value for society, create opportunity for staff, and create fortune for investors.

Business Strategy 1. Adhere to consolidate and expand regional market by pasteurizing milk. Regional market, Guilin, Liiuzhou, Beihai in Guangxi province, is the base of the company. It’s now in the pilot stage under exploration. 2. Characterized of buffalo milk and tropical fruit milk, exploring the national market continuously. Buffalo is the unique resource based in Guangxi. The buffalo milk has the advantages of high nutrition and rare. As the technical improvement of buffalo breeding, it meet the needs of raw milk which can product high end product and avoid fierce competition. Moreover, Guangxi enjoys regional and geographical advance and rich tropical fruit resources. The company pays great attention to develop tropical fruit milk. Furthermore, the company will continue to research, development and promotion tropical fruit milk. 3. New products research, development, and manufacture. Yoghourt milk and lactobacillus drink is characterized with good taste and high nutrition, which is very popular among younger generations. It also brings back high profit margins. It’s one of priority programs of the company. It would become another income resource for the company. 4. Obtain sustainable development, bigger and stronger. Develop a new program named “Characteristic Industrial Processing of Buffalo Milk Products and Tropical Fruit Milk products.” These products would be sold to both national market and Asia countries.

Functional Strategy The objectives of the functional are as follows,

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Table 3 The functional strategy of the company Title Milk resource base development Manufacturing

Sales

Capital Human Resource

Detail 1. Improve the rate of own milk source, and increase at least 3,000 cows 2. Build 10 standardized cow breeding zone and 1 demonstrative zone 1. Develop the infrastructure production shop with 200 mu land. 2. Purchase 3 Tetra pak pouring production line 3. Initiate Cows Raised for milking and Beef program with 1000 mu land 1. Increase 3000 points of sell in the country. 2. Initiate 3 year sell plan in first-tire cities, that is, enter into the market the first year and be a influential brand after three years. 3. Solid the market explored of pasteurised milk in Guangxi, and deeper into the third-tire cities, towns. Merger, stock Align the interest of top management and shareholders, and promote equity incentive plan.

Strategy implementation The respondent was asked on how they implement the strategy as well as procedure for strategy making process. The respondent mentioned that if the strategy is top-down from the board of directors, the board of directors inform its subsidiary formally, then the subsidiary would implement it. If the strategy is proposed by department’s managers and general managers, basically, they would discuss it during the meeting. Mostly, the final decision is made by general manager. “If the strategies are made by the board of directors, they will convey it to us, and then we just implement it. In the weekly or monthly meeting for managers, all the managers can present their ideas during the meeting.” Before making a decision of implement a strategy, the company conducts a research, and analyse both internal and external environment. The empirical study revealed that the company typically has combination formal written strategic plan and rational model of strategy, which depends on condition and situation. This section of strategy implementation will analyse strategy planning process and decision making process and implementing process. High performance SME has written formal and clearly defined objectives (Analoui and Karami, 2003: 28). The empirical findings revealed that the chosen company has formal structure and process when implementing the strategy. If the decision comes from head office, the subsidiary will be informed formally, then directly implement it. Formal inform process often can prevent some communication error and misunderstanding, because information can be interpreted differently by individuals, which

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2nd INTERNATIONAL CONFERENCE ON MANAGEMENT (2nd ICM 2012) PROCEEDING 11th - 12th JUNE 2012. HOLIDAY VILLA BEACH RESORT & SPA, LANGKAWI KEDAH, MALAYSIA ISBN: 978-967-5705-07-6. WEBSITE: w w w . i n t e r n a t i o n a l c o n f e r e n c e . c o m . m y

would create problems. Thus, by using formal inform structure, to some extent, can affect the results of implementing strategy. The respondent mentioned that sometimes they use their intuition to make decision. According to business leader often use this intuition to make strategic decision, even though it’s not too accurate but it has benefit for them to explore something new (innovation). From the frame of reference, we mentioned two models of strategy which are rational and intuitive learning model. It seems this model also applied in the chosen company. Furthermore, the empirical findings revealed the selected company is familiar with SWOT (Strengths, Weaknesses, Opportunity and Threats) model and they also apply it even though they do not have some procedural SWOT analysis like the textbook models. They still consider those four aspects in its operation to solve the problem even they modified it in accordance with current situation. Strategic planning involves short and long term decision making. The empirical findings revealed that strategic plan consider for future direction which are not only based on personal strategic vision of the owner (top management). The company also consider financial aspect measurement as tools. Moreover, strategic alternative is part of planning process when they do some analysis related with financial perspective (budgeting plan) to anticipate problems which might occur.

Strategy Control & Development The chosen company was asked whether there are big troubles that they faced or have to face in the near future and whether they have solution for those troubles. “Our company now is still facing the problem of insuffient milk source, even though we have our own dairy cow base.” The chosen company was asked if the sales were fall down since Chinese milk sandal in 2008, which involving milk and infant formula, and other food materials and components, adulterated with melamine that lead to trust crisis with milk. Moreover, nitrite was detected from the milk, and how the company prevents this type of crisis. “Our company’s sales amount didn’t fall down, but rose. Our company is now enlarging the milk resource base on our own. We try our best to keep the quality of milk and be the first and safe brand of Guangxi” The companies have internal control system to control crisis when the correspondent was asked about the crisis management. They have the solutions to solve the problems if might occur. If they want to implement new strategy, they would have trial period for test the new strategy. The process of controlling and monitoring new strategy is in accordance with goal of the company. As an empirical finding reveals that one of the problems the company facing now is new products promotion. The buffalo milk is sure to be with high nutrition, however, as the formulated strategy, the company is now exploring the first-tire cities with high end products name buffalo milk. However, the data presented on the adverting doubted by the academic and customers, which are reported by

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2nd INTERNATIONAL CONFERENCE ON MANAGEMENT (2nd ICM 2012) PROCEEDING 11th - 12th JUNE 2012. HOLIDAY VILLA BEACH RESORT & SPA, LANGKAWI KEDAH, MALAYSIA ISBN: 978-967-5705-07-6. WEBSITE: w w w . i n t e r n a t i o n a l c o n f e r e n c e . c o m . m y

hundreds of websites all over the country. Which made wide influence to the national customers, it’s a barrier and big risk for the company’s entry national market ambition and its brand. Moreover, the company don’t pay much attention to customer satisfaction as the respondent said, “We don’t do works about customer satisfaction”. Another new was reported recently that one of the customer was refused to achieved what he/ she order unless pay the difference after price rising. This case didn’t deal with at the proper time, which leads to the hot debate on the internet. In summary, external and internal analysis are important factors in strategic decision process. They use internal and external analysis to cope with uncertainty market condition and adapt with changing environment. The internal capabilities, especially core competence or capabilities play a vital role for company survival and growth since company can use their internal capabilities to build competitive advantages in their industries. For instance, their internal capabilities enable them to develop new product and new technology and develop new market, or enable them to build good relationship and networks with supplier or customer. These new technologies and new product can help company to differentiate with competitors, and also relationship and networks are basically hard to be copied by their competitors, that means, internal capabilities do help company to build competitive advantage. Moreover, external factors can stimulate the initiation of strategic decision; internal factors (especially internal capability) can judge and examine the feasibility of strategy. All in all, understanding the role of external and internal factors, and consistently combine these two factors into the business are crucial strategic management factors for firm’s survival and growth. Through the case study, the conclusions are made as follows: 1. 2.

3. 4. 5.

The company has competitive advantages by evaluating both internal and external factors. The company knows clearly about themselves after the analyzing situation the company now. Clear vision, mission, and objectives, and make full use of the resources to survival in the competitive environment. It’s obvious that they know where they are, and where they are heading. The company can achieve its objectives, even though the risk of the industry. And make sustainable growth. The company is now merging the enterprises with main business to strengthen its capacity, and extending market channels in external province. The company uses the product development to achieve competitive advantage.

Strategic Fit and Firms Performance Strategic Fit The selected company’s strategy has impacts on company survival and growth. The evidence shows that the company provides special designed product for a special target group.

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2nd INTERNATIONAL CONFERENCE ON MANAGEMENT (2nd ICM 2012) PROCEEDING 11th - 12th JUNE 2012. HOLIDAY VILLA BEACH RESORT & SPA, LANGKAWI KEDAH, MALAYSIA ISBN: 978-967-5705-07-6. WEBSITE: w w w . i n t e r n a t i o n a l c o n f e r e n c e . c o m . m y

For the interview, the differentiation was chosen as the company’s strategy. The reasons are as following, First of all, the high end product which called Pasteurisation milk is highly produced. Secondly, buffalo milk with high nutrition is the competitive product that different with both national and local competitors. Thirdly, the company set the brand as the home (Guangxi) safety milk in Guangxi Province. Fourthly, the way of distribution channel is quite different from others. The company chose KTV, night club, restaurant since the price is not so sensitive in these places except supermarket, school. “In Guangxi province, the buffalo milk is unique resource with high nutrition. We chose KTV, night club, restaurant as selling place because the price in these places is not sensitive. We also trying to change the design of our product, and make sure it is more environmental protect.”

Company’s Performance The empirical findings reveal that implementing specific strategy in organization would improve company’s performance as long as it’s in the right way.

Financial / non financial performance Company performance includes two dimension which are financial and non financial, some of the non financial performance are intangible such as customer satisfaction, production performance, innovation, developing new product & new technology and others. From the interview, the chosen company is aware of the dimensions, they believe that the strategic management can affect company’s financial and non financial performance. Besides, some of respondent also mentioned that the non financial performance which will eventually reflect on financial performance. The sales growth of the company has increased 32.85% from 2009 to 2010, and the net profit has increased 15.77%. It’s reported that the total profit of the first half year in 2011 has increased 32.85% compared to the same period of last year. “Strategic management decides organization’s performance. If the strategy is right made, it would improve the company’s performance; on the contrary, it would weaken the organization’s performance. The performance is not limited to financial performance but also include other kinds of performance such as production performance, customer satisfaction etc. But almost all the other kinds of performance would reflect on financial performance eventually”. From the interview, it reveals that the final goal is to improve the financial performance by using strategy. The top management realized that organizational performance not only limited in boosting profit but also included creating value, build reputation for organization. “But the final goal is financial performance, the other aspects of performance are also very import because it will affect and reflect on financial performance directly or indirectly.”

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2nd INTERNATIONAL CONFERENCE ON MANAGEMENT (2nd ICM 2012) PROCEEDING 11th - 12th JUNE 2012. HOLIDAY VILLA BEACH RESORT & SPA, LANGKAWI KEDAH, MALAYSIA ISBN: 978-967-5705-07-6. WEBSITE: w w w . i n t e r n a t i o n a l c o n f e r e n c e . c o m . m y

According to the interview, the chosen company tries to develop new market by developing new product and technology. “We are trying to expand more new market outside of Guangxi, e.g. Beijing, Shanghai with our high end product Pasteurisation. Moreover, we also pay great effort on new technology. We have technique cooperation with Guangxi University for buffalo development.” The evidence shows that the company has clear understanding about how important the strategic management for company’s performance. They are aware of importance of strategic management and apply it in their business. Moreover, one of the important indicator for company’s performance stated in the frame of reference are financial and non financial. The empirical findings revealed that the chosen company understands the dimensions of performance are financial and non financial, they focus on not just financial performance, but also non financial aspects since they believe that the non financial performance will eventually reflect on financial performance. They understand that once they can create value on non financial performance, it will directly affect financial performance. Financial performance is the goal for most of company since it will directly increase company’s image externally as well as employees & share-holder (owner) wealth internally. Moreover, the Chinese company also try to improve the operational performance, by launching new product with better design and technology, doing innovation according to market needs. Evaluation of the performance also strongly related with the strategic process of the company. As stated in frame of reference, strategic process consists of formulation, implementation, control and development process. From this perspective, the relationship among those processes as the key success factors for long term growth for the chosen company. Moreover, most of the firm seek for profitable growth. According to Helfat (2007: 89) firm can improve their performance by reducing cost or raising price if they did not consider for growth. However, competition and market forces as well as technological constraints force them to increase sales of product and services, to improve product or new product in existing or new markets. To understand competition in market economy, analysis of growth is as important as analysis of profits. It was found that the sustainable growth, for instance they strive to develop new product in order to develop new market.

Strategic fit and Dynamic Capabilities From the interview, the respondent state that the company focus on core business and consistent with its strategy, thus it could be the best way for its survival in the fierce competition situation. To some extent, by using strategy which is fit with internal capabilities and in line with its core business will boost the performance. “This company is already doing quite a lot expansion in management.” According to the interview, it indicates that concentrate on its vision & mission and develops new technology & product can help company to build competitive advantage. Other factors such as

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2nd INTERNATIONAL CONFERENCE ON MANAGEMENT (2nd ICM 2012) PROCEEDING 11th - 12th JUNE 2012. HOLIDAY VILLA BEACH RESORT & SPA, LANGKAWI KEDAH, MALAYSIA ISBN: 978-967-5705-07-6. WEBSITE: w w w . i n t e r n a t i o n a l c o n f e r e n c e . c o m . m y

company’s reputation, good service, bank loan, cost control, resources, and others are also crucial for company survival and growth. “One factor is consistent with company’s vision and mission and supporting from all employees, the other factor can also come from bank loan which will help us survive. We should get Competitive advantage from corporate reputation, technology, product itself, innovation, service, market strategy on customers and pricing. Company survival and growth rely on enterprise image, products itself.” The interviewee outlined the importance of a clear vision and mission for the company. Mission concentrates on the present. Vision concentrates on the future and outlines what the organization wants to be. Vision and mission play an important role in inspiring or motivating employees in achieving the firm’s goals and objectives. One may argue, personal objective and goals are highly subjective and may or may not be correct (Analoui and Karami, 2003: 27). However, from the interview, the company has regular meetings for all the managers. They often share their information and listen to each other during the meeting, which means they can get more information and better understanding about current issues and future trends, this will help them make decision more objectively and appropriately. Strategic fit and dynamic capabilities are two important factors in business survivals. Combination of external environment analysis and internal capabilities will help to predict uncertainty condition of pursuing business opportunity. The empirical findings show that the chosen company has its own strategic choice to compete in the market. It focuses on its core business. However, it will not enough without develop their internal capabilities. If the internal capabilities are unique and difficult to imitate, it often called core capabilities. According to Leonard-Barton (1992: 39), core capabilities include four dimensions: employee knowledge and skills, technical systems, managerial systems and the values and norms. The core capabilities was analysed from four dimensions. First, employee knowledge and skills, the chosen company outline the importance of employee skills and knowledge, for some special work, they only hire employee with required certification. The second, technical systems, knowledge embedded in technical and technological system, such as financial accounting system embodied in the company to control the financial process. The third dimension is managerial system, represent formal and informal ways of creating knowledge and controlling knowledge, the chosen company has regular meeting for managers to share information and knowledge. The last dimension is value and norms, the chosen company shares their value to all the employees within the organization, vision and mission was put on notice board and their websites. The definition of dynamic capabilities has discussed. The evidence shows that the main components of dynamic capabilities in the chosen company are human resource and technology development. Some SME lacks managerial capabilities to improve their performance. To solve this problem, the company should try to renew its resources by recruiting the right people and expertises. The chosen company is aware of this solution and try to improve its performance by hiring expertise. Therefore, dynamic managerial capabilities have effect on identifying the opportunity and solving problem. Environmental awareness combined with dynamic capabilities is another concept of strategic fit that has discussed in frame of reference. Exploiting and creating change in the business environment can be achieved by continuously develop innovation. According to our empirical findings, the chosen company gives lots of support for business creation and innovation. Chinese Premier Wen Jiabao has called on

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2nd INTERNATIONAL CONFERENCE ON MANAGEMENT (2nd ICM 2012) PROCEEDING 11th - 12th JUNE 2012. HOLIDAY VILLA BEACH RESORT & SPA, LANGKAWI KEDAH, MALAYSIA ISBN: 978-967-5705-07-6. WEBSITE: w w w . i n t e r n a t i o n a l c o n f e r e n c e . c o m . m y

enterprises and officials to place priority on industrial upgrading and innovation. The chosen company also maintains its business growth through innovation to improve their core business. It also uses bank support and strongly focuses on its vision and mission as way to build competitive advantage.

7. RESEARCH OUTCOME DISCUSSION The chosen company can formulate strategy by analyzing the company’s external and internal factors, and implement it well. And most importantly, it can adjust the strategies according to business environment changes. However, the company doesn’t pay a lot attention to the customer satisfaction, it’s under supervision under the public since being listed company in 2010. It’s very dangerous for its sales and image. Moreover, the advertising of buffalo milk with inaccurate data arouses both academic and customer’s attention. It’s a risk and barrier for the company if it can’t deal with it well. It will great influence its ambition to explore the national market.

8. RESEARCH RECOMMENDATION The analysis of the empirical study has indicated a number of relevant issues that the thesis did not investigate. Firstly, the study should undertake a greater depth and broader range of research in order to uncover more detailed and comprehensive conclusions regarding the role of strategic management on SME performance. E.g. the financial aspect didn’t analyze in detail in this paper, which might has potential risk in operation. The future study could involve more SME and explore the characteristics of strategic management in order to obtain more holistic information about the awareness of strategic management in SME. Secondly, the study should be able to reveal and prove in detail how external and internal environment affect strategic management process. Further research should also pay more attention to the management style to obtain a deeper understanding regarding why similar companies took different action in the same or similar situation. Thirdly, this thesis should analyze in depth on customer needs, and satisfaction aspects. Finally, this thesis only focused on one person, the one company in one industry. The further study could involve in different industries in GBGEZ, such as logistics, trading companies between China and Asia countries.

ACKNOWLEDGEMENT Researcher would like to express appreciation to the management of Maejo University for value the importance and supports during the whole study. And would like to also recognize every peer reviews in providing comments and recommendations for the completeness of this research study.

REFERENCES Analoui, F. and Karami, A. (2003). Strategic Management in Small and Medium Enterprises. London: Thomson Learning.

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Coulter, Mary. (2008). Strategic Management in Action . New Jersey: Pearson Prentice Hall. Guangxi Beibu Gulf Economic Zone. (2011). “Guangxi Beibu Gulf Economic Zone Development Scheme”. [Online] Available http://www.bbw.gov.cn/zt/bdl/article.php?id=36751. (29 March 2011). Leonard-Barton, D. (1992). “Core capabilities and core rigidities: a paradox in managing new product development”. Strategic management journal 3: 111-125. Lijie, Fang. (2011). “Discussion on Strategic Management of SME”. Economist 3: 253-254. Miles, M. B. and Huberman, A. M. 1994. Qualitative Data Analysis: An Expanded Source book. California: Sage Publications. Qin, Liu and Bolin Zhou. (2010). The lacking of Strategic Management and its Solutions. New York : Strategy and Tactics. Yu, He (2003). “A Study on Competitive Strategy and Flexibility for Small-sized Enterprises.” [Online] Available http://www.lw23.com/lunwen_384868882/. (21 September 2011).