Sains Malaysiana 53(7)(2024): 1703-1713

http://doi.org/10.17576/jsm-2024-5307-17

Mediating Effects in the Structural Equation Model of Malaysian Public Service Competitiveness

(Kesan Pengantaraan dalam Model Persamaan Struktur Daya Saing Perkhidmatan Awam Malaysia)

SYAHRUL IDZUAN MOHAMAD*, NUR RIZA MOHD SURADI & FARIDATULAZNA AHMAD SHAHABUDDIN

 Department of Mathematical Sciences, Faculty of Science & Technology, Universiti Kebangsaan Malaysia, 43600 UKM Bangi, Selangor, Malaysia

Received: 3 January 2024/Accepted: 31 May 2024

Abstract

These days, public service performance is determined by competitiveness. Due to a prolonged period of stagnation, Malaysia's competitive performance is at a critical level. The public service is therefore under pressure to demonstrate that all policies and programs are highly valued. This study aims to determine the primary variables influencing the ability of Malaysia's public services to compete. Data were acquired through surveys completed by 373 respondents from 26 ministries. The relationships between talent management, human capital, and competitiveness were analysed using structural equation modelling. The results indicate a significant and positive relationship between talent management and competitiveness, with human capital serving as a significant partial mediator. This study highlights the direct importance of talent management for public services competitiveness and its indirect impact through human capital. These insights can assist policymakers in developing a strategic framework to keep the Malaysian public service competitive.

Keywords: Competitiveness; human capital; mediator; structural equation modeling; talent management

Abstrak

Hari ini, prestasi perkhidmatan awam ditentukan oleh daya saing. Disebabkan oleh tempoh genangan yang berpanjangan, prestasi daya saing Malaysia berada pada tahap kritikal. Justeru, perkhidmatan awam berada di bawah tekanan untuk menunjukkan bahawa semua dasar dan program sangat dihargai di mata orang ramai. Penyelidikan ini bertujuan untuk menentukan pemboleh ubah utama yang mempengaruhi keupayaan perkhidmatan awam Malaysia untuk bersaing. Seramai 373 responden daripada 26 kementerian telah diberikan borang soal selidik untuk dilengkapkan bagi mengumpul data. Pemodelan persamaan struktur dilakukan untuk menganalisis hubungan antara pengurusan bakat, modal insan dan daya saing. Hasil analisis menunjukkan terdapat hubungan yang signifikan dan positif antara pengurusan bakat, daya saing dan modal insandengan modal insan merupakan pengantara separa yang signifikan terhadap hubungan antara pengurusan bakat dan daya saing perkhidmatan awam. Secara keseluruhannya, kajian ini menunjukkan kepentingan pengurusan bakat secara langsung terhadap prestasi kompetitif perkhidmatan awam dan secara tidak langsung melalui modal insan. Keputusan ini dijangka memberi manfaat kepada penggubal dasar dalam membangunkan rangka kerja strategik bagi memastikan perkhidmatan awam Malaysia kekal berdaya saing.

Kata kunci: Daya saing; modal insan; pemodelan persamaan struktur; pengantara; pengurusan bakat

REFERENCES

Ahmad, S. & Schroeder, R.G. 2011. Dimensions of competitive priorities: Are they clear, communicated and consistent? The Journal of Applied Business Research 18(1): 77-86.

Al Jawali, H., Darwish, T.K., Scullion, H. & Haak-Saheem, W. 2021. Talent management in the public sector: Empirical evidence from the emerging economy of Dubai. International Journal of Human Resource Management 33(11): 2256-2284.

Azmi, R. & Suradi, N.R.M. 2019. Innovation capability and organization performane in Malaysian public sector: A conceptual framework. AIP Conf. Proc. 2111: 020016.

Bajpai, R. & Ibrahim, A.M. 2019. Perkhidmatan awam tonggak kemakmuran bersama. Berita Harian. https://www.bharian.com.my/rencana/muka10/2019/07/584654/perkhidmatan-awam-tonggak-kemakmuran-bersama Accessed on 03 January 2020.

Barkhordari, S., Fattahi, M. & Azimi, N.A. 2018. The impact of knowledge-based economy on growth performance: Evidence from MENA countries. Journal of the Knowledge Economy 10: 1168-1182.

Barney, J.B. 1995. Looking inside for competitive advantage. Academy Management Executive 9(4): 49-55.

Baron, R.M. & Kenny, D.A. 1986. The moderator-mediator variable distinction in social the moderator-mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology 51(6): 1173-1182.

Boon, C., Eckardt, R., Lepak, D.P. & Boselie, P. 2018. Integrating strategic human capital and strategic human resource management. International Journal of Human Resource Management 29(1): 34-67.

Chartered Institute of Personnel and Development. 2020. Talent Management. London: Chartered Institute and Development.

Collings, D.G. 2014. Integrating global mobility and global talent management: Exploring the challenges and strategic opportunities. Journal of World Business 49(2): 253-261.

Collings, D.G. & Mellahi, K. 2009. Strategic talent management: A review and research agenda. Human Resource Management Review 19(4): 304-313.

Collings, D.G., Mellahi, K. & Cascio, W.F. 2019. Global talent management and performance in multinational enterprises: A multilevel Perspective. Journal of Management 45(2): 540-566.

Economic Planning Unit. 2015. Eleventh Malaysia Plan 2016-2020: Anchoring Growth on People. Putrajaya: Economic Planning Unit.

Farndale, E., Scullion, H. & Sparrow, P. 2010. The role of the corporate HR function in global talent management. Journal of World Business 45(2): 161-168.

Gallardo-Gallardo, E., Thunnissen, M. & Scullion, H. 2019. Talent management: Context matters. The International Journal of Human Resource Management 31(4): 457-473.

Ghosh, B., Kumuthadevi, K. & Jublee, D. 2016. Linkage among competitiveness, competitive advantage and competitive priority of apparel export firms at Tirupur. International Journal of Management Research & Review 6(8): 1012–1029.

Gurbuz, F.G., Acar, P. & Yener, M.I. 2017. Development and validation of a talent management measurement instrument. Pressacademia 6(3): 233-245.

Hadad, S. 2017. Knowledge economy: Characteristics and dimensions. Management Dynamics in the Knowledge Economy 5(2): 203-225.

Hair, J.F., Babin, B.J., Anderson, R.E. & Black, W.C. 2018. Multivariate Data Analysis. 8th ed. Uttar Pradesh: Cengage India.

Ho, R. 2014. Handbook of Univariate and Multivariate Data Analysis and Interpretation With IBM SPSS. NW. Milton Park: Taylor & Francis Group.

Ibidunni, S., Osibanjo, O., Adeniji, A., Salau, O.P. & Falola, H. 2016. Talent retention and organizational performance: A competitive positioning in Nigerian banking sector. Periodica Polytechnica Social and Management Sciences 24(1): 1-13.

Isa, S.N.I., Ishak, I., Ab Rahman, A., Mohd Saat, N.Z., Che Din, N., Lubis, S.H., Mohd Ismail, M.F. & Mohd Suradi, N.R. 2021. Quality of life among caregivers of children with special needs in Kelantan, Malaysia: The importance of psychosocial mediators. Malays. J. Med. Sci. 2021(2):128-141.

Kaleem, M. 2019. The influence of talent management on the performance of employees in public sector institutions of the UAE. Public Administration Research 8(2): 8-23.

Kolesnichenko, E.A., Radyukova, Y.Y. & Pakhomov, N.N. 2019. The role and importance of knowledge economy as a platform for formation of industry 4.0. Studies in Systems, Decision and Control 169: 73-82.

Kravaritia, F., Tasoulisb, K., Scullion, H. & Khaled, M.A. 2022. Talent management and performance in the public sector: Role of organizational and line managerial support for development. The International Journal of Human Resource Management 34(9): 1782-1807.

Krejcie, R.V. & Morgan, D.A. 1970. Determining sample size for research activities. Educational and Psychological Measurement 30(8): 607-610.

Lewis, R. & Heckman, R. 2006. Talent management: A critical review. Human Resource Management Review 16(2): 139-154.

Lopez Leyva, S. & Mungaray-Moctezuma, A.B. 2017. Knowledge-based economy as a foundation for the economic development of countries. Management Dynamics in the Knowledge Economy 5(4): 481-501.

Luna-Arocas, R. & Morley, M.J. 2015. Talent management, talent mindset competency and job performance: The mediating role of job satisfaction. European J. of International Management 9(1): 28-51.

Maingi, D.K. 2013. Operations competitive priorities and performance of multinational corporation in Kenya. Masters Project School of Business, Univ. of Nairobi (Unpublished).

Mcdonnell, A., Collings, D.G., Mellahi, K. & Schuler, R. 2017. Talent management: A systematic review and future prospects. European J. International Management 11(1): 86-128.

Meyers, M.C., Van Woerkom, M., Paauwe, J. & Dries, N. 2019. HR managers’ talent philosophies: Prevalence and relationships with perceived talent management practices. International Journal of Human Resource Management 31(4): 562-588.

Mohamad, S.I., Mohd Suradi, N.R., Zamzuri, Z.H. & Mohd Ramli, S.N. 2023. Talent management and public service competitiveness in Malaysia. Jurnal Pengurusan 69: 03.

Mulului, P.S. 2017. Review on talent management, competitive advantage and organizational performance: A research agenda. Research Journal’s of Human Resource 5(1): 1-8.

Norani Amit, Hasimah Sapiri & Zahayu Md Yusof. 2022. Factors affecting housing price in Malaysia using structural equation modeling approach. Sains Malaysiana 51(12): 4161-4173.

Slack, L. & Lewis, M. 2018. Operation Strategy. 5th edition. India: Pearson.

Slavković, M., Babić, V. & Aleksić, V.S. 2015. Talent management: Opportunities and limitations for Serbian organizations. TEME:Casopis Za Drustvene Nauke39(2): 361-379.

Stahl, G., Björkman, I., Farndale, E., Morris, S.S., Paauwe, J., Stiles, P. & Wright, P. 2007. Global Talent Management: How Leading Multinationals Build and Sustain Their Talent Pipeline. INSEAD Working Papers Collection No. 2007/34/OB. Fontainebleau, France.

Tabachnick, B.G. & Fidell, L.S. 2019. Using Multivariate Statistics. 7th ed. New York: Pearson.

Tatoglu, E., Glaister, A.J. & Demirbag, M. 2015. Talent management motives and practices in an emerging market. Journal of World Business 51(2): 278-293.

Thunnissen, M. 2016. Talent management: For what, how and how well ? An empirical exploration of talent management in practice. Employee Relations 38(1): 57-72.

Unit Perancang Ekonomi (EPU) 2023. Kajian Separuh Penggal Rancangan Malaysia ke 12 2021-2025, Malaysia Madani; Sejahtera, Kemampanan dan Berpendapatan Tinggi. Kuala Lumpur: Percetakan Nasional Berhad (PNB).

Vargas, J. 2017. Bases for Organizational Competitiveness : Organizational Competitiveness Status Report in Hungary. Journal of International Scientific Publications 4: 9-15.

Widya Ariyani, Arief Daryanto & Sahara. 2018. Operationalization of internal analysis using the VRIO Framework: Development of scale for resource and capabilities organization (Case study: XYZ company animal feed business unit). Asian Business Research Journal 3(1): 9-14.

World Bank Group. 2019. Malaysia Economic Monitor: Re-energizing the Public Service.

Yildiz, R.Ö. & Esmer, S. 2021. Talent management related concepts and debates in container shipping industry by an emerging market perspective. Journal of Shipping and Trade 6: 6.

Zikmund, W.C., Babin, B.J., Carr, J.C. & Griffin, M. 2013. Business Research Methods. Boston: Cengage Learning Custom Publishing.

*Corresponding author; email: idzuan@kuskop.gov.my