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Dahlan, AN 2010, 'The critical success factors for the effective performance of Malaysian government linked companies', DBA thesis, Southern Cross University, Lismore, NSW.

Copyright AN Dahlan 2010


Malaysian Government-Linked Companies (GLCs), a major component of the economy, are implementing a Transformation Programme to improve their business performance. Since they face challenges, this research was aimed at offering recommendations to address them. Largely exploratory in nature, the research reviewed the pertinent literature and identified the research gaps for the crafting of four research propositions for testing by this research. Data was collected through a Focus Group meeting and a structured Questionnaire Survey. The key findings are as follows. First, the Government should review its policies on GLCs to ensure that they only focus on core activities and dispose non-core activities outside their areas of competence. Second, GLCs should, through an open recruitment system, appoint CEOs who have the necessary professional and personal attributes to lead large corporations. Succession plans should be in place to provide for continuity when the CEO leaves. Third, to discontinue the current practice of appointing directors with political connections. All appointments must be on the basis of merit and without political interference. Fourth, the GLCs should emphasise on strategic CSR by integrating social impact into their overall strategies. This will enable the GLCs to develop and benefit from reputational advantage. Fifth, GLCs should accelerate the pace of strategic alliances with transnational corporations or with regional firms for reaping the new market opportunities emerging from globalisation. Sixth, to consider using the Balanced Score card as a complimentary measurement tool as it can translate strategy into realistic and achievable goals and targets with KPIs measuring performance. The research findings also contributed to theory development by modifying Rondinelli’s Management-led Model to reflect the importance of other critical factors for the effective and efficient performance management of Malaysian GLCs. Finally, the research identified opportunities for follow up research.

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