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Strategic management (competitive strategy and supply chain management) and management accounting (product pricing and costing techniques).

Final year of business undergraduate programme and MBA programme.

This case illustrates how emergence of generic products had threatened the survival of DCPM and forced its management to urgently review the company's existing approach to pricing of its main herbicide product. The case presents opportunities for readers to discuss the deficiencies of DCPM's existing product costing approach and recommend modifications to meet the price and gross profit margin targets specified. It also highlights issues relating to supply chain management and human resource practices that might have to be improved to enhance DCPM's long-term competitiveness.

To understand the effects of globalisation and emergence of generic products on intensity of market competition for branded products. To identify deficiencies of the current product costing system of DCPM for pricing decision. To apply alternative contemporary approach to product costing and pricing of Metrix and the other value-added services. To identify measures to enhance supply chain management and inventory management in DCPM. To assess DCPM's human resources practices. To evaluate the effectiveness of DCPM's existing competitive strategy and formulate new competitive strategy to sustain DCPM's long-term competitiveness.

Teaching notes.

Based on the knowledge sharing model by Nonaka (1994), this study examines the relative efficacy of various Information Communication Technologies (ICTs) applications in facilitating sharing of explicit and tacit knowledge among professional accountants in Malaysia. The results of this study indicate that ICTs, generally, facilitate all modes of knowledge sharing. Best‐Practice Repositories are effective for sharing of both explicit and tacit knowledge, while internet/e‐mail facilities are effective for tacit knowledge sharing. Data warehousing/mining, on the other hand, is effective in facilitating self learning through tacit‐to‐tacit mode and explicit‐to‐explicit mode. ICT facilities used mainly for office administration are ineffective for knowledge sharing purpose. The implications of the findings are discussed.

This study aims to investigate the effects of individual knowledge/experience on the audit expectation gap of loan officers in Malaysia and the subsequent effect of the audit expectation gap on their loan decision quality. In addition, the mediation role of the audit expectation gap is examined.

Copies of a structured questionnaire were randomly distributed to three hundred and twenty loan officers of the top four commercial banks in Malaysia. A total of 212 completed questionnaires were analysed using structural equation modelling.

The findings indicate that the knowledge/experience factors could significantly mitigate the audit expectation gap. More importantly, the audit expectation gap is found to adversely affect the loan decision quality. The mediating role of the audit expectation gap is also supported.

The findings of this study may not be generalizable to other economic, cultural and political settings.

Banks may narrow their loan officers' audit expectation gap and hence, their non‐performing loans through selective recruitment or appropriate knowledge/skill enhancement in‐house training programmes.

This study provides the needed empirical evidence of the adverse effect of audit expectation gap on the loan decision quality of bank officers in Malaysia. Unlike the 2009 findings of Noghondari and Foong, which was based on an Islamic banking context in Iran, this study, which was based on the conventional banking context, found that accounting‐related and job‐related work experience of bank officers had significantly mitigated the audit expectation gap. The findings have important implications on the recruitment and training of loan officers by banks.

This study examines the extent and nature of voluntary intellectual capital (IC) disclosure by public‐listed companies in Malaysia and how the disclosure may be explained by the economics or other rationale of corporate disclosure. Those intangible assets that are required to be disclosed under the extant accounting standards were specifically excluded from this study. The top 30 and the bottom 30 companies were selected from the list of top 100 largest public‐listed companies by market capitalization at the end of 2003. Content analysis was used to measure the extent of voluntary IC disclosure in the 2003 annual reports of the selected companies. This study found that the voluntary disclosure of IC information is generally not extensive among the publiclisted companies in Malaysia and narrative description of their IC attributes is the most often adopted format. The findings suggest that the IC disclosure behaviour of the sample companies may be explained based on both economic and non‐economic rationale. Implications of the findings are discussed.

The purpose of this paper is to investigate the relationship between cost‐system functionality and the performance of oil‐palm enterprises in Malaysia, as well as whether manager's perceived usefulness of cost information mediates the cost‐system functionality‐performance relationship.

A structured questionnaire is used to gather data from oil‐palm enterprises located in Sarawak.

The results indicate that the cost relevance/timeliness dimension of cost‐system functionality significantly enhances the performance of oil‐palm enterprises. However, manager's perceived usefulness of cost information only partially mediates the cost‐system functionality‐non‐financial performance relationship, and this is possibly due to the nature of control over the estate operations by the head office.

Owing to the small‐sample size and because the oil‐palm enterprises are located only in Sarawak, the generalisability of the results may be limited. Besides, the findings are based on the estate setting whereby decisions made are relatively structured and therefore, they may not apply in less‐structured decision‐making settings.

Past findings on the causal link between cost‐system functionality and performance are mixed. However, high‐functional cost systems are expected to be more cost beneficial when environment is highly uncertain. The palm oil industry operates in a highly turbulent economic environment due to serious external challenges and it is expected to benefit from high‐functional cost systems. Unlike previous studies based on firms from diverse industries, the operational homogeneity of the oil‐palm enterprises in this paper enables the effects of cost‐system functionality on performance to be examined in a more controlled setting. By analyzing the attributes of cost‐system functionality into two major dimensions, this paper shows that performance could be enhanced only through provision of relevant and timely cost information.

The purpose of this paper is to examine the effect of leverage on the financial performance of general insurance companies in Malaysia, and investigate whether the leverage‐performance relationship is a function of or contingent on the extent of product diversification.

The sample consisted of the entire population of authorized general insurance companies operating during the period from 2006 to 2009 in Malaysia. A total of 94 observations were analysed. All the data used were sourced from the Malaysian Central Bank's (BNM) database.

It is found that leverage is negatively associated with firm performance. However, there is a significant interaction effect between leverage and product diversity on firm performance. The finding indicates that leverage could be beneficial or detrimental to the financial performance of general insurance firms, contingent on the extent of product diversity of the firm.

As the scope of study is limited to the general insurance industry and the sample size is small, the findings of the study must be interpreted with caution and the results may not be generalizable to the life insurance sector or other industry.

Findings of prior empirical studies on leverage‐performance relationship and effect of insurance product diversification are rather mixed and inconclusive. Based on analysis of a single insurance (general) sector that is highly regulated, the paper provides empirical evidence that the benefits of product diversification strategy are contingent on level of the firm's leverage. The paper hence, enhances understanding and contributes to the existing literature on impact of leverage, product diversification on performance of the highly regulated general insurance firms in a developing country.

The purpose of this paper is to examine the influence of accounting students’ attitude on their current knowledge enhancement intention and the moderating role of the learning environment on the attitude-intention relationship. The relationship between current knowledge enhancement intention and level of current knowledge acquired is also investigated.

Copies of a structured questionnaire were randomly distributed to 400 final-year accounting students from three major public universities and 243 completed questionnaires were analyzed.

Attitude is a significant predictor of students’ current knowledge enhancement intention, which, in turn, positively impacts their level of current knowledge. The learning environment significantly moderates the attitude-intention relationship. An inhibiting learning environment tends to accentuate the differences in current knowledge enhancement intention between students with good attitude and those with poor attitude toward current knowledge enhancement.

The study has the limitations often associated with self-administered questionnaire research. The findings also may not be generalizable to other student and current knowledge settings.

There is a need to re-orientate the accounting curriculum design and the accounting academics’ attitude from one that is overly technical focussed to one that emphasizes on other competencies necessary for sustained professional success. Educators and teaching pedagogy that promotes a culture of lifelong learning and current knowledge enhancement among students should be encouraged.

This study fills the gap in the literature by examining the role of the learning environment not as a direct determinant of students’ attitude and their intention, but rather as a moderator of the attitude-intention relationship. The implication is that modifying the learning environment could facilitate or promote development of the desired attitude and hence, intention. The findings of this study support the moderating role of the learning environment in the relationship between current knowledge enhancement attitude and intention of accounting students in Malaysia.

The purpose of this paper is to examine how decision rationality affects ERP adoption extensiveness and subsequently, organization performance. The mediating roles of system usage and user satisfaction on the relationship between adoption extensiveness and organizational performance are also examined.

This study was based on a questionnaire survey of 976 public-listed companies and 200 unlisted manufacturing companies. Responses of 93 ERP adopters were analyzed.

ERP adoption extensiveness is significantly affected by the overall measure of expected economic benefits, but not by any of the economic benefit type individually. On the other hand, mimetic pressure individually affects ERP adoption extensiveness, but not the overall measure of institutional pressures. ERP adoption extensiveness is significantly associated with organizational performance, and the mediating roles of system usage and user satisfaction are supported.

This study has the limitations associated with questionnaire-based research and its small sample size may also limit the generalizability of its findings.

The high emphasis on operational benefits of ERP adoption and the significant effect of mimetic pressure on ERP adoption extensiveness imply that organizations in Malaysia are largely “followers” of the technological innovation and generally have yet to exploit the full potentials of their ERP systems. Government agencies may need to play a more active role to facilitate fuller utilization and adoption of the higher end ERP applications. Vendors of ERP systems may need to review their strategies to increase their sales of ERP systems to the smaller business enterprises.

The paper addresses the relatively void in literature on the link between decision rationality and technology adoption extensiveness and the subsequent organizational performance in the context of an emerging economy.

The purpose of this paper is to present a study on relationships between the design of management control systems (MCS), the use of MCS and organisational learning (OL).

This study adopted a survey method. A written questionnaire was prepared and mailed out to collect quantitative data. After analysis of the empirical results, follow-up interviews were conducted to develop a deeper understanding of the empirical results.

Findings of the study show that both the design and use of MCS are significantly associated with levels of OL activities in organisations, and the use of MCS is found to be a more influential factor in OL.

This paper contributes to the accounting literature by providing empirical evidence on the relative impacts of the design and use of MCS on OL activities in organisations and the interaction between the design and use of MCS in influencing OL.