This study examined the role of management practices and legislation on OSH (occupational safety and health) implementation in SMEs (small and medium enterprises) in Malaysia. A questionnaire was administered to 152 SMEs across various industries in Northern Malaysia. The results of a hierarchical regression analysis showed that employee participation and safety training were important for achieving certain OSH implementations. Additionally, legislation enhanced the relationship between safety rewards and OSH implementations, and higher levels of legislation strengthened the impact of management commitment and safety training on OSH implementation. The study provides insights into improving OSH practices in Malaysian SMEs through strategic management practices and appropriate legislative support.

1. OSH Implementation in SMEs in Malaysia:
The Role of Management Practices and Legislation
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Assoc. Prof Dr Lilis Surienty (lilis@usm.my)
School of Management, Universiti Sains Malaysia. 11800 Minden. Pulau Pinang. Malaysia
Acknowledgments:
USM RU Grant: 1001/PMGT/816052
Video-PosterAbout the author
Dr Lilis is keen in finding solutions to a sustainable safety management
practices for SMEs.
She is working collaboratively with partners in Canada, Norway and Britain.
Introduction
Methodology
Results
DiscussionS
Aims
References:
Department of Occupational Safety and Health (DOSH). (2016). Strategic Plan for Occupational Safety and Health: Small Medium Industry Sector 2016-2020,
DOSH: Putrajaya.
Dillard, B.G. (1997). Employee involvement: An effective strategy for reducing workers’ compensation costs. Journal of Fashion Marketing and Management,
2, 318-328.
Fairman, R. and Yapp, C. (2005). Making an impact on SME compliance behaviour: An evaluation of the effect of interventions upon compliance with health
and safety legislation in small and medium sized enterprises. Research Report 366. Kings Centre for Risk Management, Kings College London.
Khor, L. K. 2017. Safety capital and safety participation in occupational safety and health management system (OSHMS) in Malaysia manufacturing
companies. Unpublished Thesis. Universiti Sains Malaysia: Georgetown.
McQuiston, T. H., Zakocs, R. C., & Loomis, D. (1998). The case for stronger OSHA enforcement--evidence from evaluation research. American Journal of
Public Health, 88(7), 1022–1024.
SME Annual Report 2015. (2016). Retrieved from http://www.smecorp.gov.my/sites/default/files/SME%20AR08%20Eng%20Text.pdf on 3-2-2017.
Vredenburgh, A.G. (2002). Organizational safety: Which management practices are most effective in reducing employee injury rates? Journal of Safety
Research, 33, 259-276.
Worsfold, D., & Griffith, C.J. (2003). A survey of food hygiene and safety training in the retail and catering industry. Nutrition & Food Science, 33, 68-79.
Management Practices
• Management
Commitment
• Hiring Practices
• Employee Participation
• Safety Reward
• Safety Training
OSH Implementations
• General Compliance
• Safety
Procedures/Policy
• Safety
Communication/
Documentation
• Safety Resources
• Suppliers OSH
• Risk Assessments
Legislation
99%
Questionnaire
Translated to Bahasa Melayu (national language) and Mandarin.
Participants
152 SMEs in the Northern Region of Malaysia (67.7% response rate).
59% small size firm, No of Accidents reported (0 to 20 cases): 25% (Zero), 59% (4 or less), Co.’s Age; 4% (5 years and
less), 55% (11 to 20 years) & 21% (21 years and more)- M = 16 years, SD = 8.12,
Stratified random sampling using a computer software was adopted and the self-administered survey was
answered either by the safety and health officer (SHO) or personnel incharged of OSH management.
66% male (M = 38.5 years old, SD = 9.2) , 39% Malay, 47% Chinese & 14% Indian, Tenure with Co (M = 8.3
years, SD = 6.2)
• OSH Implementations: 89-item instrument adapted from an OSH Work Inspection Checklist used for Proton vendors based upon Part 1:2005 OSH MS
OSH Act 1994 and an ILO-OSH 2001 Guidelines on Occupational Safety and Health Management System document. Example of statements are,
“Employees have the right to access records relevant to their working environment health, while respecting the need for confidentiality” and “There is a
provision of information and training concerning OSH to all personnel at workplace”.
• Management Practices: 26-items adapted from Vredenburgh (2002), Worsfold and Griffith (2003) and Dillard (1997). Covers the 5 dimensions.
• Legislation: 8-items adapted from McQuiston, Zakocs, and Loomis (1998) and Fairman and Yapp (2005) whom both were investigating the enforcement
elements of legislation on safety behaviours.
All response scale was a 7-point Likert scale (1 = Strongly Disagree, 7 = Strongly Agree).
OSH Implementations:
General
Compliance
Safety
Documentation
Safety
Procedure
Safety
Resources
Suppliers
OSH
Risk
Assessment
β R2 β R2 β R2 β R2 β R2 β R2
Management Practices
Management Commitment .65 - - -.45 .26 -.52
Hiring Practices - .38 .33 .19 .22 -
Employee Participation .25 .21 .24 - - -
Safety Reward .10 - -.26 - - -
Safety Training - .81c .18 .42c .34 .45c - .30c .27 .32c - .23c
Moderator
Legislation .12 .82c - .42 - .45 - .31 - .32 - .23
2-way Interactions
Management Commitment X
Legislation
- 1.48 1.63 -2.38 2.15 -2.61
Hiring Practices X Legislation -.61 - - - - 1.55
Employee Participation X
Legislation
- - - - - -
Safety Reward X Legislation -.70 -1.72 - 2.69 -1.59 1.17
Safety Training X Legislation - .84b - .50c - .48 - .42c -.66 .39a - .33c
Table 1.
Results of Hierarchical Regression Analysis for OSH Implementations, Management Practices, and
Legislation, their Interactions with the Moderator
Note. N = 149. Non significant coeeficients are not included. . a p < .05. b p < .01. c p < .001.
q Employee participation is important in achieving safety
implementations with nature that require collective employees efforts
to complete.
q Safety training helps OSH implementations in area where there
involves systems and structure.
q Legislations enhances the relationships between safety reward and
OSH implementations. Safety reward is important towards achieving
OSH implementation with the influence of legislation. Safety reward
alone, does not influence OSH implementation.
q Higher amount of legislations enhances the achievement of OSH implementation.
Similar to Khor (2017) recent findings that management commitment for Malaysian
manufacturing has no direct influences toward OSH implementation.
q Small amount of legislation moderates the influences of safety training towards
Suppliers OSH implementation. Even when safety training is lowest, OSH
implementation is better when there is higher amount of legislation.
q Future research may want to investigate the mediating role of legislation or support
specifically in OSH implementation.