Malaysian Journal of Business, Economics and Management

The Optimization Model of the Phillips Curve using Shapiro-Stiglitz Model and the Kydland-Prescott Model for Fiscal and Monetary Policy Analysis

2026-04-27T08:58:22+00:00

Modern economic policy in many countries prioritizes short-run growth objectives. While such policies may generate immediate economic gains, they can also create long-run sustainability concerns through their effects on inflation and unemployment dynamics. Monetary economics proposes long-run equilibrium mechanisms that may mitigate these macroeconomic fluctuations. This study develops an analytical framework that integrates the Shapiro–Stiglitz efficiency wage model of unemployment with the Kydland–Prescott model of inflation setting and applies a Lagrangian optimization framework to estimate the optimal rate of economic growth subject to inflation targets set by the central bank of the Philippines. To examine the structural relationships implied by the theoretical framework, a Two-Stage Least Squares (2SLS) regression is employed, with results suggesting a significant disconnect between the policy objectives of the central government and those of the central bank. The predictive performance of the model is further evaluated using a quadratic ordinary least squares (OLS) regression comparing forecasted and observed output growth rates. The estimated model produces a higher coefficient of determination and statistically significant coefficients relative to regressions using Philippine GDP growth data, suggesting that the GDP optimization model may provide a useful analytical tool for informing macroeconomic policy design.

Mediating Effect of Employees Attitude on the Relationship Between Reward and Employees’ Engagement in Malaysian Private Higher Education around Klang Valley, Malaysia

2025-06-11T08:26:49+00:00

The model utilizes Partial Least Square (PLS) procedure on data collected from a survey that yielded 381 usable questionnaires. The goal of this study is to look into the indirect effect of employees’ attitude, reward, and employees’ engagement relationship in Malaysian private higher education around Klang Valley, Malaysia. To analyse the causal relationships amongst employees’ attitude, reward, and employees’ engagement, the Structural Equation Model (SEM) was adopted. The results showed that employees’ attitude and reward enhance employees’ engagement in Malaysian private higher education institute in Malaysia. It is essential to do the research using an experimental design by using longitudinal data in Malaysian private higher education institute by using vigorous measures. The findings recommend that the private higher education institute should put emphasis on employees’ attitude, and reward to ensure the advantageous increase in higher education employees’ engagement at their workplace. This research is one of the first recognized efforts to use employees’ attitude, and reward to study employees’ engagement in the private higher education sector in Malaysia by using Partial Least Square (PLS) procedure.

Effects of Entrepreneurial Framework Conditions and Psychological Capital on Informal Business Performance Run by Women Hawkers and Small Vendors

2025-08-13T14:35:53+00:00

The primary objective is to examine the impact of entrepreneurial framework conditions and psychological capital on sustainable business performance among women hawkers and small vendors. The second objective is to investigate the indirect impact of psychological capital. A study was conducted in Terengganu, Kelantan, Selangor, and Negeri Sembilan, Malaysia, to understand this phenomenon, involving 200 women hawkers and small vendors. The study data, obtained through a questionnaire, were analyzed using Structural Equation Modeling (SEM). This paper found that entrepreneurial framework conditions and psychological capital have a significant influence on sustainable business performance. Second, psychological capital mediates the relationship between entrepreneurial framework conditions and sustainable business performance. This study contributes to the literature by strengthening the underexplored theory of women's entrepreneurship in the informal sector through a holistic understanding of the influence of internal and external factors, thereby supporting the development of a more inclusive and contextual theory that aligns with the socioeconomic realities of women in the sector.

The Impact of the Digital Economy on SME Business Performance: The Moderating Role of Digital Capability and the Mediating Role of Value Creation

2025-09-07T00:02:56+00:00

This study investigates the impact of the digital economy on the performance of micro, small, and medium enterprises (MSMEs) in West Java, Indonesia, by integrating the roles of digital capabilities and value creation. This research develops and assesses a cohesive framework that links the digital economy, digital capacity, and value creation inside a singular structural model, unlike other studies that analyze these components independently. Analysis of survey data from 127 MSMEs employing structural equation modeling (SEM) reveals that digital competency does not influence the relationship between the digital economy and value creation. The Sobel test confirms that value creation fully mediates the impact of the digital economy on business success. This integration significantly demonstrates that the adoption of the digital economy enhances performance only when transformed into concrete value-creation processes—through value networking, business model enhancement, coopetition, and digital innovation—highlighting strategic pathways for MSMEs in evolving digital economies.

Analyzing Corruption, Political Influence, Socioeconomic Conditions, and Living Standards in Pakistan

2025-09-06T23:56:28+00:00

The analysis examines the relationship between economic indicators and final household consumption expenditures (FHCE) in Pakistan from 1991-2023. Four variables were used: total population, corruption perception index, political stability, and absence of violence. The results show a positive association between the general population and FHCE in both the short and long terms. However, the corruption perception index reduces FHCE by 0.4430 units, with a negative short-term effect. Political stability has a moderate long-term effect. PSVA has a negative influence on FHCE. The model explains 85.60% variation in FHCE, suggesting population growth management, corruption control, and political stability policies.

The Economic Situation and Strategies of Ride-Hailing Drivers Under Sharing Economy in Cavite, Philippines

2025-07-19T04:57:27+00:00

The study explores the rise of the sharing economy in Cavite, Philippines, focusing on the socioeconomic and work conditions, earning opportunities, and the different strategies of ride-hailing drivers. The study used a descriptive-comparative research design utilizing a sample size of 385 driver-participants. Key findings indicate that the majority of the ride-hailing drivers in Cavite were in the middle age (32-44 years), married, and owned their transport vehicle. Most drivers work full time, with a monthly income of P23,000-P31,000 and are living in Bacoor City. Results indicate that labor standards are generally met, with drivers reporting positive working conditions and adequate platform support. Surge-chasing emerged as the most effective strategy for income maximization. However, drivers continue to face challenges, including heavy traffic during peak hours, inappropriate passenger behavior, and limited transport insurance coverage. Motivational factors include passenger tipping and effective route and navigation management. The study underscores the need for strengthened government oversight and enforcement mechanisms to address unfair practices and ensure compliance with platform regulations. Enhanced regulatory engagement can contribute to safeguarding workers’ welfare while advancing the public interest within the evolving Philippine transportation economy.

The Causal Impacts of International Standard Certifications on Firm Performance: Evidence from Malaysia

2025-07-19T05:05:57+00:00

The objective of this study is to examine the causal effects of international standards certification (ISC) on the performance of Malaysian firms, while accounting for potential endogeneity between ISC and firms’ performance. Previous studies have rarely accounted for endogeneity between ISC and firms’ performance, which may bias estimates and lead to incorrect conclusions about their causal relationship. This study uses data from the World Bank Enterprise Survey (WBES), 2019-20. The estimation methods account for the endogeneity between ISC and firms’ performance by combining instrumental variables with treatment-effect modelling. Three performance measures are used: sales and gross profit per employee, and the cost of goods sold scaled by sales. The analyses, both univariate and multivariate, demonstrate that ISC improves the performance of Malaysian firms, especially manufacturing firms; however, the finding is not supported for firms in the service sector. Foreign ownership also improves firms’ performance. In terms of endogeneity, the cost of goods sold and performance are endogenously related, whereas sales and gross profit per employee are not.

Relationship between Organisational Support, Organisational Reward and Academic Staff Performance in the University of Maiduguri, Nigeria

2025-08-10T01:11:26+00:00

The organizational support, organizational rewards as part of Employee Value Proposition has emerged as a critical factor influencing organisational success, particularly in enhancing employee performance. Therefore, main purpose of this study is to investigate the organizational support, organizational rewards and academic staff performance in university of Maiduguri. This study is motivated by scarcity of studies on organizational support, organizational rewards and academic staff performance particularly in university of Maiduguri. The study adopted a survey approach. Questionnaire were personally administered to 387 academic staff in university of Maiduguri. Out of which 330 copies were completed and retuned which were used for the analysis. Data collected was analysed using regression analysis with the aid of SPSS 25. The findings of this study showed that there is a positive and significant relationship Organisational Support, Organisational reward and Academic staff performance in University of Maiduguri. The study concluded that University of Maiduguri management should adopt sound strategies on Organisational Support and Organisational reward to retain and attract high skill academic staff to ensure better performance. The study recommended the University, Policy Makers and other Stakeholders should be encouraged to utilise Organisational Support and Organisational reward attract and retain employees which would lead higher employee performance.

User-Generated Brand Image of National Parks: A Comparative Analysis of Visitor Reviews in France and Malaysia

2025-08-10T01:03:53+00:00

National parks like any tourism destination have unique brand images that are shaped by multiple stakeholders. It is crucial to understand the perceived brand image as it influences the visitation rate, customer satisfaction and long-term success. This study investigates the perceived brand image of 16 national parks in France and Malaysia by analyzing 160 Google Maps reviews. The reviews were manually collected and analyzed through a three-step approach grounded in Stimulus-Organism-Response framework - descriptive, content and thematic analysis to construct the image from reviews. The findings revealed that perceptions of national parks differ across cultures. French national parks are seen as untouched places of nature primarily for hiking, while Malaysian parks are perceived in combination of nature with experiences such as guided tours and boat rides, that changes the expectations and are influenced by the fee structure. This study proposes a new approach to identifying the perceived brand image through textual UGC. It addresses the gap in research of national parks in Malaysia and France adding to existing research on cross-cultural comparative analysis of brand image through UGC and provides practical implications to park managers.

Global Economic Integration and Entrepreneurial Success of Selected ICT Businesses in Ilorin Metropolis

2026-02-04T10:55:57+00:00

Research on global economic integration has garnered attention among scholars, particularly regarding its implications for competitiveness and survival of firms in emerging economies, such as Nigeria. This study investigated global economic integration and entrepreneurial success of selected ICT businesses in Ilorin, Kwara State. The specific objectives were to examine the effect of digitalization on the customer satisfaction of ICT businesses in Ilorin, Kwara State; and to evaluate the effect of trade openness on market share of ICT businesses in Ilorin, Kwara State. The population used for this study is made up of 165 ICT firms registered with the Information Technology Professionals Association (ITPA) in Ilorin, Kwara State. A total of 117 sample was estimated to be appropriate for this study using Raosoft Sample Size Calculator, and out of the 117 copies administered, 114 were properly completed and returned. and selected from the study population using a simple random sampling technique. Data were gathered using a structured questionnaire and analyzed using Partial Least Squares Structural Equation Modelling (PLS-SEM). Findings established a strongly positive effect of digitalization on customer satisfaction. It was also revealed that trade openness has a statistically significant positive effect on market share. It was therefore concluded based on the findings that digitalization and trade openness are key drivers of customer satisfaction and market share of ICT firms in the study area. Hence, global economic integration is essential for entrepreneurial success. This study recommended prioritization of investment in digital infrastructure, policy implementation for tariff reduction and streamlined import/export procedures, and adoption of customer-centric practices among ICT firms to improve their success and survival.