Critical Success Factors Of Effective Business Continuity Management: A Malaysian Case Study

Abstract

This paper examines the critical success factors of effective Business Continuity Management (BCM) practiced by Malaysian organizations. The effectiveness of BCM is measured by the overall organizational performance which comprise of financial and non-financial performance indicators. For purpose of data collection, conventional and electronic survey questionnaires were deployed to a total of 147 organizations nationwide involving the private and public sectors. This study managed to obtain 77 usable responses from the respondents which reflecting 55 percent of effective response rate. Using the multiple regression analysis techniques, the study reveals that external requirement and embeddedness of continuity practices have significant relationships with the overall organizational performance. Meanwhile, the management support and organizational preparedness are not significantly related to overall organizational performance. Theoretically, the research framework is supported by the Resource Base View (RBV), crisis management and stakeholder theories. The study contributes in the theoretical framework for understanding the critical success factors that affect the establishment of effective BCM in an organization that eventually lead to superior performance. This study believes that by understanding the relationships, it could contribute to the betterment of the overall organizational performance. Furthermore, this paper also highlights the limitation of the study and recommendation for future researches.

Navigating turbulent waters: The impact of business continuity management (BCM) practices on financial and nonfinancial performance of tour operator companies

“…Implementing continuity practices within an organization necessitates activities like trainings and a well-planned communication strategy to guarantee that the BCM can be carried out in the organization's everyday operations. The significance of this embeddedness becomes evident through the findings of previous research conducted by Järveläinen (2013) and Abu Bakar et al (2017). Their studies underscore a noteworthy correlation between the depth of continuity practices' integration and an organization's overall…”

“…These findings align with established research on BCM perspectives, corroborating the work ofHerbane et al (2004),Hoong and Marthandan (2014),Järveläinen (2013),Lim et al (2021),Omran et al (2021) andWoodman (2008). AbuBakar et al (2017) andEkienabor and Egharevba (2021) affirm these findings, emphasizing the significance of ER and continuity practices in improving NFP. Their support is particularly noteworthy, as they highlight the substantial influence of these factors, especially within service-oriented sectors like tourism, hospitality and financial institutions.…”

“…Practically, Chow (2000) discovered 17 practices that were connected to the implementation of BCM and Chow and On Ha (2009) have expanded the BCM practices by proposing numerous business continuity attributes, whereas the committee must be informed of the projects and their duties so that the organization can record the process appropriately throughout the BCM implementation phase (Chow & On Ha, 2009). On the other hand, Abu Bakar et al (2015Bakar et al ( , 2017 claimed that prior literature studies have found multiple BCM practices, but several of them were redundant in terms of the definitions and functions of the components. As a result, Abu Bakar et al (2019) proposed four dominating BCM practices which are (i) MS, (ii) ER, (iii) OP and (iv) ECP (see Table 1).…”

“…As studied by Abu Bakar et al (2017) and Bajgoric et al (2022), BCM is related to the concept of Resource-Based View (RBV) and CMT. RBV is introduced by Wernerfelt (1984), arguing that organizational resources heavily influence organizations' competitiveness and performance.…”

“…nonfinancial support through aspects like budget allocation, training initiatives and employee motivation (Abu Bakar et al, 2015Bakar et al, , 2017Jarvelainen, 2020). Since BCM implementation is a long-term commitment, obtaining appropriate support from senior management is critical before proceeding with other BCM implementation initiatives (Chan et al, 2020;Filimonau & De Coteau, 2020).…”