THE IMPACT OF ECONOMIC LITERACY ON ORGANIZATIONAL PERFORMANCE

  • Nek Kamal Yeop Yunus Universiti Pendidikan Sultan Idris
  • Salomawati Ishak International Islamic University Malaysia
  • Che Noraini Hashim International Islamic University Malaysia
Keywords: Human capital, Economic literacy, Organizational performance, Structural equation modeling

Abstract

This study investigates the influence of lecturers’ economic literacy on their organizational performance either directly or indirectly via commitment, teamwork, knowledge/skills and attitude. The basic theoretical framework consists of lecturers’ economic literacy as independent variable and lecturers’ organizational performance as dependent variable while knowledge/skills, teamwork, attitude and commitment as intervening variables. Five main hypotheses and fifteen specific hypotheses were posited and tested. The study was based on a survey design and the time horizon was cross sectional with minimal researcher’s interference. The survey was carried out in 4 educational departments selected randomly from 7 clustered polytechnics out of 21 polytechnics in Malaysia. The final number of participants for this study was 28 departments. The sample size comprise of 200 respondents of the total population. The research hypotheses represented a conceptual model of performance. The model hypothesized that performance would be a function of human capital (economic literacy) and behavioral intervention is in the form of attitude, teamwork, skills/ knowledge and commitment. The study hypotheses were tested by employing Structural Equation Modeling (SEM) analysis method using AMOS 4 data fitting program which will better explain and postulate causal relationships. Besides, it examines more complex relationships and compares different models, nested and competing. This study is important in such a way that, it might help to promote the status of economic literacy of the respondents as well as improve their quality in rendering services to organization’s customers. It will also benefit the management of the organization’s system and other educational institutions’ system by identifying and improving its weaknesses for the betterment of its future performance. In conclusion, this study provides an insight and further understanding of the interrelationships among economic literacy, attitude, teamwork, skills/ knowledge, commitment and organizational performance, and hence allows practitioners to gain in depth knowledge of the impact of economic literacy.

Downloads

Download data is not yet available.

References

Al Quranul Kareem, surah Al Iqra’, verse 1-3

Antti Pitkanen, (2006), The importance of intellectual capital for organizational performance, A research proposal for PhD theses to be presented at the national doctoral tutorial for accounting in Lappeenranta.

Arbukle, J.L., & Wothke, W. (1999). AMOS 4.0 User’s Guide, Chicago:SmallWaters Corporation.

Ballard, B., & Clanchy, J. (1988). Literacy in the university: An anthropological approach in Gordon et al. Literacy by Degrees. Open university Educational Enterprises Limited. Milton Keynes, UK.

Blaug, M.,(1970), An Introduction to the Economics of Education, Penguin Books Ltd., Harmondsworth, Middlesex, England.

Becker, H. (1960), “Notes on the concept of commitment”, American Journal of Sociology, Vol. 66 No.1, pp.32-40.

Blaug,M., (1976), The empirical study of human capital theory: a slightly jaundiced survey, Journal of Economic Literature, Vol 14 pp.827-55

Coleman, J.S. (1988), “Social capital in the creation of human capital”, American Journal of Sociology, Vol. 94 pp.S95-S120.

Hair, J. F. Jr., Anderson, R.E., Tatham, R. L. & Black, W. C. (1998). Multivariate Data Analysis with Readings,(5th ed). , New Jersey: Prentice Hall, Inc.

Hansen., W.L. et al.,(1977), Master Curriculum Guide in Economics for the Nation’s schools, Joint Council on Economic Education.

Hashim, C. N. (1995), Economic literacy among secondary school students and pre-service teachers in Malaysia. Unpublished PhD thesis, University of Birmingham at Aston.

Florin, J., Lubatkin, M., Schulze, W. (2003), “A social capital model of high-growth ventures”, Academy of Management Journal, Vol. 46 No.3, pp.374-84.

Friedman, R.A., Krackhardt, D. (1997), “Social capital and career mobility: a structural theory of lower returns on education for Asian employees”, Journal of Applied Behavioral Science, Vol. 33 No.3, pp.316-34.

Ishak, S. (1998), A study of the effect of a diploma in marketing course on students’ attitude to work at one Malaysian Polytechnic, Master in Business Education Studies, unpublished Masters Thesis, University of Hull, England. UK

Abdullah Ahmad Badawi, (2005)

Mohd Najib Razak (2005),

Hertzberg, F., Mausner, B., (1967) Motivation to work, London: John Wiley and Sons Inc.

Johnes, G. (1993) The Economics of Education,The McMillan Press Ltd., England

Nahapiet, J., Ghoshal, S.G. (1998), “Social capital, intellectual capital, and the organizational advantage”, Academy of Management Review, Vol. 23 No.2, pp.242-66.

Leenders, R.T.A.J., Gabbay, S.M. (1999), Corporate Social Capital and Liability, Kluwer, Boston, MA, .

Ismail, N. A. H (1999), Perceptions of leadership amongst ethnic Malay Pupils in Residential Secondary Schools in Peninsular Malaysia in the context of national development, PhD Thesis, UK

Morrow, P. (1993), The Theory and Measurement of Work Commitment, JAI, Greenwich, CT, .

Meyer, J., Allen, N. (1997), Commitment in the Workplace: Theory, Research and Application, Sage, Thousand Oaks, CA,.

Roos, G., Roos, J., Edvinsson, L., Dragonetti, N.C. (1997), Intellectual Capital – Navigating in the New Business Landscape, New York University Press, New York, NY,.

Tworney, K. & Kleiner B. H. (1996), Teamwork: the essence of the successful organization, Team Performance Management, Vol 2 No 1 1996 pp. 6-8

Otley, D. (1999). Performance management: a framework for management control research. Management Accounting Research, 10, 363-382.

Sun, H. (2000), Total quality management, ISO 9000 certification and performance improvement. International Journal of Quality and Reliability Management, 17(2), 168-179.

Corrigan, J. P. (1994). Is ISO 9000 the path to TQM? Quality Progress, Mei, 27, 33-36

Gronroos, C. (1990), Service Management and Marketing: Managing the Moment of Truth in Service Competition, Maxwell Macmillan, Singapore,.

Lehtinen, U., Lehtinen, J.R. (1991), “Two approaches to service quality dimensions”, The Service Industries Journal, Vol. 11 No.3, pp.287-303.

Petruzzellis, L., D’Uggento, A.M., and Romanazzi, S. (2006) Student satisfaction and quality service in Italian Universities, Managing Service Quality, Vol 16 No.4 pp349-364

Fallows, S. & Steven, C. (2000), Building employability skills into the higher education curriculum: a university guide initiative, Education and Training, Vol 42 No 2 pp 75 – 83

Tenopir, C. (2000), “I never learned that at library school: curriculum changes in LIS”, Online, Vol. 24 No.2, pp.42-6.

Goulding, A. (2001), “Never the twain shall meet? – Changing syllabi of LIS schools, or from cat [cataloguing] and class [classification] to intranet construction and does it matter?”, Impact. Journal of Career Development Group, Vol. 4 No.4, pp.65-6.

Fisher, B., Hallam, G., Partridge, H. (2005), “Different approaches – common conclusions: the skills debate of the 21st century”, in Genoni, P., Walton, G. (Eds),Continuing Professional Development: Preparing for New Roles in Libraries: A Voyage of Discovery, Sixth World Conference On Continuing Professional Development and Workplace Learning for the Library and Information Professions, Oslo, 10-13 August, pp.41-52.

National Council on Economic Education, (2003) website www.econ.edu.com.

Said, I. (2005), The Implimentation of ISO 9000 Quality Management System and Business Performance of Contractors in Malaysia, Unpublished PhD Dissertation, University Utara Malaysia.

Ismail, A. I. (2003), Mission Statement Practice: Cascading Impact On Firm Performance, Unpublished PhD Dissertation, University Utara Malaysia.

Utusan Malaysia, 31 August 2005, Perkasakan modal Insan: PM, Negara memerlukan rakyat cemerlang berbudaya ilmu dan berakhlak mulia.
Published
2012-10-05
How to Cite
Yeop Yunus, N. K., Ishak, S., & Hashim, C. N. (2012). THE IMPACT OF ECONOMIC LITERACY ON ORGANIZATIONAL PERFORMANCE. Journal of Contemporary Issues and Thought, 2, 30-40. Retrieved from https://ejournal.upsi.edu.my/index.php/JCIT/article/view/919