The Effect Of Ethical Culture Leadership Qualities, Entrepreneurship And Innovation On The Performance Of Government Linked Companies

Abstract

Government-linked companies (GLCs) play an essential role in the expansion of the Malaysian economy. GLCs are contributing a significant percentage of the nation’s gross capital formation and National Gross Domestic Product and they have been regarded as instruments of national growth and supplementing government’s effort in promoting social and economic goals. Nevertheless, the performance of GLCs remains as a major concern. Although many research have been done on organisations and enterprises there is lack of research done on GLCs’ performance. Previously, the performance of GLCs in Malaysia has been affected by the poor performance of its key companies such as Proton Holdings Berhad and Malaysia Airline System (MAS). Hence, this study attempts to examine on the effect of ethical culture practices, leadership qualities, entrepreneurship orientation, and innovation existence towards the performance of Malaysian GLCs. In this study, the data is gathered via questionnaires survey collected from 102 state and federal level GLCs. The results of coefficient of independent variables showed that leadership qualities and innovation are positively correlated with organisational performance. This study suggests to improve the performance of GLCs through emphasizing on leadership qualities and placing high emphasis on innovation.