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The impact of economic literacy on organizational performance

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General Information Cached
Title
The impact of economic literacy on organizational performance
Type
Article
Main Author
Nek Kamal Yeop Yunus
Additional Authors
  • Salomawati Ishak
  • Che Noraini Hashim
Subject
HD Industries. Land use. Labor
ISSN
2232-0032/eISSN 0128-0481
Language Code
eng
Bibliographic Details
Place of Production
Tanjong Malim
Publisher
Fakulti Pengurusan dan Ekonomi
Year of publication
2012
Notes
Vol. 2 (2012): Journal of Contemporary Issues and Thought (JCIT)
Degree Type
Others
Corporate Name
Perpustakaan Tuanku Bainun

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. Keywords human capital, economic literacy, organizational performance, structural equation modeling.

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