Purpose: The purpose of this paper is to examine the impact of preparation level of heirs and the relationship between family and business members on the performance of family business in small- and medium-sized enterprises (SMEs) in Malaysia.Design/methodology/approach: A quantitative research design involving the use of a survey questionnaire was implemented to investigate the influences of succession planning factors on the performance of family business in SMEs. The survey was conducted on 50 family business successors in Malaysian SMEs.Findings: The result showed that the two studied factors – preparation level of heirs and the relationship between family and business members – have a positive impact on the performance of family business.Research limitations/implications: The research concentrated on the performance of family business in SMEs in Malaysia’s southern region. The generalization therefore must be made very cautiously to the overall Malaysian SMEs.Practical implications: The findings help family businesses to better understand the importance of the preparation level of heirs and the relationship between family and business members on business performance. This study shows the importance of key factors influencing succession planning so that the successor to the family business can bring the family firm to the next stage of success.Originality/value: This study serves as a reference or guide for the management of family businesses to better understand the important factors for effective succession planning. It considers the best possible preparation and family-related factors affecting the end results of business, particularly in Malaysian SMEs.

Purpose: The purpose of this paper is to investigate the effect of chief executive officer (CEO) characteristics and involvement in networks on strategic management accounting (SMA) and, in turn, the indirect effect of SMA on company performance.Design/methodology/approach: A model is advanced and tested using partial least-squares path modelling and data were collected from a sample of 121 service small and medium-sized enterprises (SMEs) in Malaysia.Findings: The results indicate significant and positive relationships between the CEO education and the application of SMA as well as between involvement in networks and SMA. Moreover, it is found that SMA has an indirect effect in relations of CEO education, involvement in networks and company performance.Practical implications: SMEs’ leaders may realize their important role in affecting outcomes by their choices, which are in turn affected by their characteristics and activities.Originality/value: This study provides an empirical evidence on the impact of two new factors on the SMA by considering contingency theory and upper echelons theory simultaneously for explaining relationships and developing a new model.

There has been a call for integrating a strategic performance measurement system and enterprise risk management (ERM) as a proposed best practice for risk management. This study examines the effects of ERM and performance measurement systems (PMS) on organizational performance. In addition, this study also examines the effects of a linked ERM-PMS tool on organizational performance. The research method involved administering an online questionnaire survey to 196 public listed firms. The respondents were the head of risk management department of the firms. In the case of ERM and PMS effects on organizational performance, the result of simple linear regression supported the research hypotheses. However the results from the moderated multiple regression which was employed to test the joint effect of ERM and PMS on organizational performance did not support the research hypothesis. Based on the study results it is recommended that firms may practice ERM and PMS separately rather than linking them together, since their integration may complicate the PMS framework. Keywords: Enterprise Risk Management; Performance Measurement System; Balanced Scorecard; Organizational Performance.

How has Basel III (Bank for International Settlements), regarding the computation, measurement, and management of the liquidity coverage ratio (LCR), vitalized the Islamic banking sector in emerging economies? Vice versa, what is the Islamic banking sector’s capacity to respond in embracing Basel III? This study aims to review the current issues faced by a bank as it discusses the current regulatory guidelines and operational challenges in implementing the system. Based on the implementation of LCR preliminary secondary data of Malaysian banks between 2010 and 2016, this study finds that the readiness of LCR system implementation in the Islamic banking industry is currently low because LCR is still relatively new for all financial institutions and vendors. There is a huge gap between the present system infrastructure of the banks and the LCR model requirements as defined by BNM (Bank Negara Malaysia) under Basel III. Nevertheless, this finding opens new horizons of understanding and practically offers further investigations for the whole banking sector in Malaysia. Thus, policy makers, regulators, and industry players should utilize a unique framework for Islamic banks when strategizing liquidity risk management.

Manuscript type: Research paper Research aims: Risks can challenge the public sector’s service delivery system and growth sustainability. While the notion of modern accountability demands some display of risk management (RM) initiatives, less attention has been given to the impact of RM practices on organisational accountability as well as the effect of performance measurement system (PMS) use on RM practices. Drawing from the resource-based view, this study attempts to investigate the predictive effect of RM practices and (PMS) use on accountability by using a mediation framework. Design/Methodology/Approach: Cross-sectional survey is applied to collect data from the top management of the Malaysian Federal Statutory Bodies (FSBs). The research framework is tested by analysing the data of 110 Malaysian FSBs through the structural equation modelling technique (PLS-SEM). Research findings: The result of the study demonstrates that PMS use for monitoring and PMS use for attention-focusing have a significant positive effect on RM practices. Additionally, RM practices mediate the relationship between PMS use and accountability. Theoretical contribution/Originality: This paper is among the few to assess the effect of PMS use on RM practices and to determine the mediation effect of RM practices on the relationship between PMS use and accountability. Practitioner/Policy implication: These findings provide valuable insights for authorities in the public sector on the ways to enhance public sector governance through new mechanisms of accountability such as RM practices. Research limitation/Implication: This study uses a non-probability sampling. Considering the difference in design and use of control systems among the different sectors or industries, the results may not be generalised to other populations. However, the outcome of this study suggests that RM practices do strengthen public sector accountability with the appropriate use of the PMS. Keywords: Risk Management, Performance Measurement System, Accountability, Public Sector JEL Classification: M41

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