DAYAK ENGINEERS PARTICIPATION AS ENTREPRENEURS IN … engineers participation as entrepreneurs in...

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DAYAK ENGINEERS PARTICIPATION AS ENTREPRENEURS IN THE CONSTRUCTION INDUSTRY Lainus anak Lichok Corporate Master in Business Administration 2012

Transcript of DAYAK ENGINEERS PARTICIPATION AS ENTREPRENEURS IN … engineers participation as entrepreneurs in...

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DAYAK ENGINEERS PARTICIPATION AS ENTREPRENEURS IN THE CONSTRUCTION

INDUSTRY

Lainus anak Lichok

Corporate Master in Business Administration 2012

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Pusat Khidmat MakJumat Aka4emik UNlVEllSm MALAYSIA SARAWAK

P.KHIDMAT MAKLUMAT AKADEMIK

1IIIIIIIIIriiiflllllllili 1000245958

DAYAK ENGINEERS PARTICIPATION AS ENTREPRENEURS IN THE CONSTRUCTION

INDUSTRY

LAINUS ANAK LICHOK

A dissertation submitted in partial fulfillment of the requirements for the degree of Corporate Master in Business Administration

Faculty of Economics and Business UNIVERSITI MALAYSIA SARA W AK

2012

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DECLARATION AND COPYRIGHT

Name Lainus anak Lichok

Matric Number 05031327

I hereby declare that this research is the result of my own investigation, except where

otherwise stated. Other sources are acknowledged by footnotes giving explicit references and

a bibliography is appended.

Signature

Date

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APPROVAL PAGE

I certified that I have supervised and read this study and in my opinion it conforms to

acceptable standards of scholarly presentation and is fully adequate, in scope and quality, as a

research paper for degree of Corporate Master in Business Administration.

Prof. Dr. Ernest Cyril de Run Supervisor

This research paper was submitted to the Faculty of Economics and Business, UNIMAS and

is accepted as partial fulfillment of the requirements for the degree of Corporate Master in

Business Administration.

Prof. Dr. Shazali Abu Mansor Dean, Faculty of Economics and Business UNIMAS

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ACKNOWLEDGEMENT

Praise and thanks be to God for gIvmg me the knowledge, courage, strength, wisdom,

understanding and counsel throughout the years that 1 have gone through this Corporate

Master in Business Administration course with the completion of this study.

I would like to express my gratitude to all those who gave me the possibility to complete this

thesis. I am deeply indebted to my supervisor; Prof Dr. Ernest Cyril de Run whose advice,

stimulating suggestions, guidance and encouragement throughout my research from the initial

stage until the completion stage enabled me to develop an understanding of this study. My

gratitude also goes to all the Dayak engineers as entrepreneurs who for their cooperation,

understanding and willingness to be interviewed despite their busy schedule. I also wish to

thank the staffs of Kejuruteraan Janje Sdn Bhd and Perunding Janje, for their understanding,

assistance and cooperation during my absence while preparing this thesis. My gratitude also

goes to those who assisted in the transcribing the interviews.

Lastly, to my wife; Robicca anak Manggang and my children; Valarie Megumi, Natalie

Hikaru, Anastasia Ritsu, Abraham Tsuyoshi and Yvonne Noriko for their love, support and

understanding throughout the years, that makes it possible for the completion of my study.

My wish is that the abundance blessings and grace of God will pour upon you all your

endeavours.

IV

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ABSTRACT

DA YAK ENGINEERS PARTICIPATION IN THE CONSTRUCTION

INDUSTRY

LAINUS ANAK LICHOK

, This study aims to examme and understand 1) what are the dilemmas faced by Oayak

engineers during the start-up of the business in the Construction Industry?, 2) what are the

motivating factors that led the Oayak engineers to become entrepreneurs in the Construction

Industry? and last'ly, 3) what are the strategies that these Oayak Engineers adopted in order to

sustain their business and be successfulV

The result showed that the Oayak engineers who took the plunge to become entrepreneurs

were motivated by the financial attraction, time freedom and being own boss. The dilemmas

they faced during their business start-up were mainly lack of capital, securing job and the

ability to sustain. They adopted various strategies in order to be successful or to sustain their

business. Among the strategies adopted in ranking order among others are; diversification

into other business, good networking, specialization, deiivery of projects/services with quality

and upgrading of knowledge/resources/skills.

It can be concluded that the Oayak engineers as entrepreneurs had high self-efficacy, willing

to learn, hard-working and are able to adapt and overcome the challenges they faced by

adopting various strategies in order to sustain and made their business successful.

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1 PUS3( KJlidmat Maklumat Akademik UNIVERSm MALAYSIA SARAWAK

TABLE OF CONTENTS

CONTENTS PAGE

DECLARATION AND COPYRIGHT . •.• . . . . . . . .. . .. . ... . .. . .. . .. . .• . .. . . . . . . . • . . .. . •. . .. 11

APPROVAL PAGE . . .. . ... .. . .. ... . .. . .. ... . .. . .. . .. . .... .. ... . .... . . .. . .. . .. . .. . .. . .. . .. III

ACKNOWLEDGEMENT .......... .... ... ........ ............................ '" . .. . .. IV

ABSTRACT ................................................................................ V

CHAPTER 1 INTRODUCTION

1.0 Introduction 1

1.1 Background .............................. ....... ...... .... .. ...................... ... . . ... . 3

1.2 Problem Statement . . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . ... . .. . .. . ... .. . . .. ........ . .. . .. 4

1.3 Objective of the Study ............................................................... 5

1.4 Significance of the Study ...... ....... .... .... ...................................... ... 6

1.5 Theoretical Framework ........ ... ..... ......... . ......... ........................... 7

1.6 Scope of Study ....................................................................... 8

1.7 Conclusion ............................................... ............ ..................... 8

CHAPTER 2 LITERATURE REVIEW

2.0 Introduction 9

2.1 The Dayak 9

102.2 The Construction Industry

2.3 Engineering and Engineers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . 12

2.3. 1 Defmition of Engineering and Engineer ................... .... ........... 12

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2.3.2 Characteristics of Engineers .. ............. . .................................... 13

2.4 Entrepreneurship and Entrepreneur .... .... .. ........ .. .... .................. .. .. ...... 14

2.4.1 Defmition of Entrepreneurship and Entrepreneur .......... .. .. ........ .. . 14

2.4.2 Characteristics of Entrepreneurs .................................... .. ..... 15

2.5 Entrepreneurship and Engineering . . .. . .. . . . . .. . .. . ...... . .. . .. . .. . .. ... . .. . . . . .. . .. . . 16

2.6 Engineers and Entrepreneurs .... ...... .. .. .......................... ...... ...... 18

2.7 Factors Influencing Entrepreneurship ... . . . ... .............. .. .. . . ...... ........ 19

2.8 Entrepreneurship in Malaysia .. .. .............. .. . . . .. ...... ........ ...... .. .... . 20

2.9 The Characteristics of Malaysian Entrepreneurs .................. .... .. ... ... .. . . 22

2.10 Business strategies .. .. . .. . ... .. . .. . .... .. . .. . .. ... ... . .. . .. . ..... . .. . .. . .. . .. . .. . .. . .. . . 23

CHAPTER 3 METHODOLOGY

3.0 Introduction .......... . ... .. . .. . . ......... .. ...... .. . . .. .... ... .. . .. ....... . ...... 25

3.1 Research Design .......... . .... . . ... ...................... .. . ..... .... .. .... ..... ... . . 25

3.1.1 Population and Sampling .. . . . .. . . .. .. . .. . ... . .. . .. . .. . .. . .. . ... .. . .. . .. . .. . .. . .. . .. . . 25

3.1 .2 Instrument .......... . . ... . .. .. . ........................ . . .. ..................... 26

3.2 Measurement .. .. .... ... ............ . ....................... . ...................... 26

3.2.1 Section A: Entrepreneur's Background . .... ... . .. ....................... 26

3.2.2 Section B: Background of Economic Activity .. ........ .. ... .... ...... 27

3.2.3 Section C: Interviews .................. .. .... . ... .. . . . ................ . . . 28

3.3 Data Collection ..... . ....... . ...................................................... . . 29

3.4 Data Analysis . ... ..... .... .. ........................ .... . . .. . ...................... 29

3.5 Conclusion .... ..... ... ... .... . .... . ... ... ....... ..... ..... . ................... . . 30

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CHAPTER 4 FINDINGS

4.0 Introduction . . . .... . . ......... ....... ......... ..... . ... .......... .. .... . .. ........ 31

4.1 Demographic Background .. .. . .. . .. . .. . ... . . . .. . ...... . .. . .. . . .. . . . ... .. . .. ... . . . . .. . . 31

4.2 Background of Economic Activity . .. ............. . ....... .. . ....... .. . . .............. 32

4.3 Interviews ................. ... .. . .. . ......... ... . .... ......... . .... .. .......... . . . ..... . . 33

4.3.1 Motivat!on to be Entrepreneurs ... .. . ................ .. ........... . . . ... .. 34

4.3.2 Dilemma during Start-Up . . .............. ... ................... .............. 35

4.3.3 Strategies Adopted ........ .. .............. .. . .. .. . ........... . . . . .. ... 36

4.3 Analysis ............ . .................. . ................. . ........ . ........ . ..... . .... 37

CHAPTER 5 DISCUSSION AND CONCLUSION

5.0 Discussion ....... . . .. ............... . ... . ............................... .. . . ............. 39

5.1 Motivation 39

5.2 Dilemma during Start-Up ... . .......... .. .. .... ............. . . .. ........... .. ... . . . ... 40

5.3 Strategies ........ .... ................ . ............ .. . . ................. . . . .. ............ 42

5.4 Limitation of Study . . ............ ......... ........ ... .. .... ......... .... .... . ... 44

5.5 Recommendation . . . .. .. . ... . .. . .. . .. .. . . .. . .. . . . . .. . .. . . . . . . . .. . . . . .. . ... . . . . . . . .. . ... 44

5.5 Conclusion ......... .... .............. .. ........... . .. .. . ... ........ ... .. ... . .......... ... 46

REFERENCES ...... . . . ... . ........ . .. . . .. ... ......... . .... . ................. .... ......... .. . 48

APPENDICES . . ... ....... .. ..... . ... ........ ...... .. . .............. . . . ......... . . .... . . ..... 52

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CHAPTER 1

INTRODUCTION

1.0 Introduction

The Malaysian economy is greatly influenced by the growth of the country's economIC

sectors, and also regional and global economies. This can be seen by the impact of the Asian

Financial crisis of 1998 and the September 11, 2001 attack on America, where Malaysia's

Gross Domestic Product (GDP) registered a negative 7.4% and a positive 0.3% growth

respectively. Before 1997, the Malaysian economy had been growing at more than 8 percent

annually (Mohammad, 2007). The same pattern is shown in the construction sector, which

posted a growth of negative 24.0% in 1998 and 2.3% in 2001 (Construction Industry

Development Board Malaysia, 2004).

The economy is dependent on business done both in and out of the country. In order for

business to exist there must be entrepreneurs. Malaysia's past and current policies to create a

cIa s of entrepreneurs has succeeded especially in the sense that there are more Bumiputeras

involved in business and entrepreneurship now as compared to before (Ariff and Abubakar,

u.d.). Bumiputera firms now consist of more than 80% of the total number of firms in the

construction industry (Pusat Khidmat Kontraktor, 2009). This is supported by laafar et aI.,

(2005) who tound that the construction industry is one of the main sectors which had recorded

high involvement of Bumiputera entrepreneurs. This high percentage can be attributed to the

implementation ofthe New Economic Policy (NEP) in 1970, which had the overriding goal of

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achieving national unity through poverty eradication and social restructuring (Mohd Yusuf,

1987: 1 02 cited in Lim, 2000).

The success of the creation of Bumiputera entrepreneurs in Malaysia reqUITes further

exploration. Various studies has been done in the past on the motivation of entrepreneurs

(Orhan and Scott, 2001, Gray et. aI, 2006), triggers and barriers to entrepreneurship Orhan

and Scott, 2001, Choo and Wong, 2006), and factors influencing start up (Mazzaro et aI, 1999,

Gelden et aI, 2004). These studies focused on the entrepreneurs in general. However, no

studies have been done on specific group of entrepreneurs, in the case of this research project;

the Dayak engineers, especially in the construction industry.

The Dayak ill Sarawak comprised ethnic groups of Ibans, Bidayuh and Orang Ulus

(Boulanger, 1999). About 80% of the Dayaks are rural dwellers, which consist of self

subsistent agriculturists, hunters and gathers (Bujang, 2004). In 2000, they make up about 47%

of the state's 2.0 million population (Monthly Statistical Bulletin Sarawak, 2010). Despite

their numbers, the participation of Dayak in commerce and industry is still at a low level as

compared with the other Bumiputera community in Sarawak (Jugah, 2003 cited in Howell, et.

aI., 2006). There are various programmes to engage the Dayaks to venture into business

especially in the Oil Palm industry through government agencies such as Sarawak Land

Consolidation Authority (SALCRA) and Land Cooperative Development Authority (LCDA).

With this scenario, besides grasping an insight on the participation of Dayak engineers as

entrepreneurs in the construction industry, this study aims;

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,......

I) to investigate the motivations that led the Dayak engineers to take the plunge to

become entrepreneurs in the construction industry

2) to investigate the dilemmas faced by Bumiputeras engineers as entrepreneurs during

their start up

3) to provide insight on the strategies adopted to sustain a successful business

1.1 Background

In Malaysia, the number of contractors has increased dramatically from 29,663 in 2001, to

48,017 in 2009, where the majority of the firms are owned by Bumiputera (Pusat Khidmat

Kontraktor, 2009). The institutional changes brought about by the National Economic Policy

(NEP) opened up unprecedented opportunities and incentives for Bumiputeras, where the

government pledged that by 1990, Malays and Malays' interests would own at least 30

percent of the corporate capital in the country (Gomez, 1990:43, cited in Lim, 2000).

The Dayaks in Sarawak, especially the engmeers also took advantage of the available

opportunities through the various incentives and programmes implemented by the government.

These Dayak engineers consisted oflban, Bidayuh, Melanau, Kenya,h, Kayan, Kelabit and the

other indigenous races that made up the Dayaks in Sarawak. In general, the Dayaks are

mo tly found in all the major cities in Sarawak, whereas the Bidayuhs are in Kuching, the

Kenyahs, Kayans and Kelabits in Miri and Bintulu, the Melanaus in Mukah. Some of the

other minorities such as the Muruts and Lun Bawangs are found in Limbang and Lawas.

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,.­ ---,

In recent years, there is seen to be an increase trend of Dayak engineers' participation as

entrepreneurs in the construction industry_ However, little is known on the quantum of this

participation, the dilemmas, the motivations faced and the strategies adopted by these

entrepreneurs due to the absence of study or research in this topic.

This study aims to _provide data on the participation of Dayak engineers as entrepreneurs in

the construction industry for future studies. It will also aim to act as a reference for aspiring

Dayak entrepreneurs especial1y the minorities such as the Bidayuh, Melanau, Kayan, Kenyah,

to gauge the challenges they may face when establishing their own business and to grasp the

strategies adopted to sustain their business.

1.2 Problem Statement

Despite the various incentives and programmes provided by the government to assist the

Bumiputera entrepreneurs since the 1970s, very few Dayaks entrepreneurs took advantage of

these programmes and incentives. Entrepreneurs such as Datuk Amar Leonard Linggi Jugah;

Chairman of Limar Group and Jugah Foundation and Mr. Donald Lawan; Managing Director

of MD Motors Sdn Bhd are among the very few pioneers who took the plunge and are ! successful in their businesses. The lack in participatien in business may be due to their

standing in society where most were poor, uneducated and not enterprising. Only in recent

years that more Dayaks have shown interest in doing their own business. The majority of ! these entrepreneurs are Dayak engineers, who realised the opportunity ofthe programmes and

incentives provided by the government warrants the need to conduct a study so as to

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Pusat Khidmat Maklumat AkademJk UNlVERSm MALAYSIA SARAWAK

understand their motivation that attracted them to take the plunge to become entrepreneurs in

the construction industry.

There is also a need to investigate the challenges and dilemma this group faced and to fmd out

how they tackled these challenges and dilemmas. Lastly, there is a need to investigate the

strategies they adopt in order to sustain their business and be successful.

1.3 Objective of the Study

Most of the studies in regards to Small Medium Enterprise (SME) in Malaysia are focused

mostly on the Malay entrepreneurs from Peninsula Malaysia. The sign of an increasing trend

of Dayaks especially the engineers invo Iving themselves in business in recent years coupled

with the lack of studies on these groups of entrepreneurs warrants the need to study focusing

on them.

In general, this study aims to examine and understand what brings about the sudden interest of

the Dayaks to be involved in business after being lukewarm for the past 40 years.

The specific objectives of the study are as follows-:

I) What are the dilemmas faced by Dayak engineers during the start-up of the business in

the Construction Industry?

2) What are the motivating factors that led the Dayak engineers to become entrepreneurs

in the Construction Industry?

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3) What are the strategies that these Dayak Engineers adopted in order to sustain their

bu iness and be successful?

1.4 Significance of the Study

There are many studies conducted on entrepreneurship in the perspective of gender, ethnicity,

profession and etc, based on the factors that push or pulled these entrepreneurs. However,

there is no record of studies conducted on a specific group such as the Dayak engineers'

involvement as entrepreneurs in the construction industry.

The fmding of this study aims as a:­

I) reference for aspiring Dayak entrepreneurs especially the minorities such as Bidayuh,

Melanau, Kayan, Kenyah and etc to gauge the challenges they may face when establishing

their own business

2) reference for aspiring and existing Dayak entrepreneurs on the strategies to be adopted

in order to sustain a successful business

3) basis for future studies on the quantum of Dayak engineers' participation as

entrepreneurs in the construction industry

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1.5 Theoretical Framework

A theoretical framework is a theoretical model of how one theorizes or makes logical sense of

the relationship among the several factors that have been identitied as important to the

problem (Sekaran, 2003).

The motivations to become entrepreneurs are classified into categories of push and pull

factors (Hakim, 1989; McClelland et ai., 2005; Schjoedt and Shaver, 2007; Segal et ai., 2005

cited in Kirkwood, 2009). Baker (1995) argued that entrepreneurs who were motivated

chiefly by a desire to achieve, or gain independence could, for instance, be said to be

motivated by "pull" factors, whHe those whose main reason for starting a business was

redundancy could be said to have been "pushed". Adopting the approach by Baker (1995),

Table - 1 categorized the reasons for starting business, classified as negative reasons, or push

factors and as positive reasons and consequently pull factors.

.Table- 1 E n repreneurs t rtmg current bt reasons fcor sa usmess Motivations Start Business Push Factors

• Unemployment/Redundancy

• Insecurity in employment Confidence

• Did not wish to relocate

• Tired of Making money for others

• Dissatisfaction with previous employment Experience

Pull Factors

• Business opportunity

• Independence Capital

• To make money

• Achievement/to use skills Source: Adopted from Baker (1991) CIted ill Baker (1995).

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1.6 Scope of Study

This study focused on the Dayak engineers' participation in construction industry in Kuching,

Sarawak. The respondents of the study will be Dayak engineers who are entrepreneurs or

business owner involved in the construction industry as consultants (Civil & Structure and

Mechanical & Electrical) or contractors, regardless of age and gender. The targeted business

owners can be in a firm as sole proprietor/manager, partners or directors.

Here, Boulanger (1999) classified Dayak are classified into three (3) ethnic groups which are

the (1) Ibans, (2) Bidayuh, and (3) the Orang Ulus. The non-Muslim Melanaus are

categorized in the Orang Ulus group as their numbers are minimal.

1.7 Conclusion

The study on motivation of Dayak engineers to venture as entrepreneurs in the construction

industry will provide a useful framework for future related research.

The issues on the dilemma faced by Dayak engineers during business start up is expected to

be a reference for aspiring Dayak entrepreneurs with professional background to make the

decisions whether to venture in business and to overcome the challenges that they may faced.

The strategies adopted by the present Dayak engme€rs m order to sustain a successful

business will provide useful data for existing Dayak entrepreneurs are currently struggling to

maintain their business and also useful data for aspiring Dayak engineers who decide to

become entrepreneurs.

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CHAPTER 2

LITERATURE REVIEW

2.0 Introduction

Researchers around .the world have conducted extensive studies on entrepreneurship, focusing

mainly on the entrepreneur's motivations (Alsos, et. aI., 2003; Gray, 2006; Choo and Wong,

2006), characteristics (Jaafar, et. aI, 200 I), leadership style (Ardichvili, 200 I), and success

fact rs (Ghosh and Kwan, 1996), and etc. In Malaysia, similar studies on this topic focused

on franchising (A Hamid, et. aI., 2003), small medium enterprises (Jajri and Ismail, 2007; _,

u.d.), and strategies (Mastura, et. aI., 2006). Other researchers focused on the teaching of

entrepreneurship to engineers (Thomason, 1997; Carlson, et. aI., 1999; Creed, et. aI., 2002;

Lumsdaine and Blinks, 2003; Catherine and Georges, 2006; Versat and Bachelet, 2006).

However, there is no record of researches conducted on the Dayak engineers' participation as

entrepreneurs in the construction industry in Malaysia. Similar topics on the entrepreneurship

involving Dayaks was on the "Bidayuh participation in business" (Dango, 2003) and on the

"socio-cultural environment impact on Dayak entrepreneurial interest" (Howell, et. aI., 2006).

2.1 The Dayak

The Dayaks are the ethnic groups that made up the indigenous people of Malaysia. In

Sarawak, the Dayak population is estimated to be about 1,500,000 in 2000, making them the

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largest group of 41 percent of the total population (Anonymous, 2002 cited Howell, et. at ,

2006). The Ibans and the Malays formed more than 50% of this group.

Table 2.1 : Sarawak Population by Ethnic Group

Ethnic Group Population I Percentage

lban 603 ,735 29.1 % -

Bidayuh 166,756 8.1 %

Orang Ulu 117,690 5.7 % Malay 462,270 22.3 %

Melanau 112,984 5.5 %

Chinese 537,230 25.9 %

Olhers 70,841 3.4 %

Total 2,071,506 100.0 %

Source: Yearbook of Statistic Sarawak, 20 I 0

2.2 The Construction Industry

The construction industry is vital in the development of a developing nation like Malaysia. It

is shown previously that growth is parallel to the GOP of the country. In general, entry into

the construction industry is relatively easy but with high degree of fragmentation. In general,

despite the low barriers to entry, few people are involved in the industry, where only 8% of

the nation's workforce is found in the construction industry as compared to the other

industries. The low percentage of the local labour force in the construction sector may be

attributed to the following four (4) reasons (CIDB, 2004).

1) The Daily Paid System

2) The 3D Phenomenon (Dirty, Difficult and Dangerous)

3) No career development

4) Contractor's attitude that prefer cheap foreigners.

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The fierce competition for projects where only 6.5% and 5.6% contractors were awarded with

contracts in 2001 and 2002 respectively (CIOB, 2004) resulted in the heightened rivalry

intensity in the industry. Price is also far from being the only determining success factor

(Macombe, 1999, cited in Cheah and Chew, 2005). Moreover exits costs in the construction

industry are generally high due to existing contracts and capital investments that have limited

transfer value (Cheah and Chew, 2005). These are some of among the many factors that

contributed to the low level of participation in the construction industry as compared to the

other sectors.

Focusing on those who are involved in the construction industry, Bumiputera forms the

majority ofthe players, where more than 80% of the total numbers of firms in the construction

industry are owned by them (Pusat Khidmat Kontraktor, 2009). This is mostly attributed by

Malaysia's past and current policies to create a class of entrepreneurs (Ariff and Abubakar,

u.d., Mohd Yusuf, 1987: I 02 cited in Lim, 2000). This is supported by laafar et aI., (2005)

who found that the construction industry is one of the main sectors which had recorded high

involvement of Bumiputera entrepreneurs.

The trend shown by the Bumiputeras involvement in business is reflective for the Oayak

engineers' participation as entrepreneurs in the construction industry. The Oayak engineers,

with their skills and training, relevant experience, business networking and etc, has what it

takes to be successful entrepreneurs.

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2.3 Engineering and Engineers

2.3.1 Definition ofEngineering and Engineer

Engineering is defmed as the science of common sense (Anonymous), while Carlson, Sullivan,

Poole and Piket-May (1999) argued that Engineering is about building things for the benefit

ofsociety.

The tenn engineer originated in the eleventh century from the Latin ingeniator, meaning one

with ingenium, the ingenious one (Auyang, (2004) cited in Culligan and Pena-Mora, u.d.).

Indeed, Leonardo da Vinci held the official title oflngegnere Generale.

Wikipedia defmes an engineer as "a person professionally engaged in a field of engineering.

Engineers are concerned with developing economical and safe solutions to practical problems,

by applying mathematics and scientific knowledge while considering technical constraints.

As such, the work of engineers is the link between perceived needs of society and commercial

applications. Some consider this profession to be the link between art and science". The

Icelandic word for engineering means something in the order of 'the science of tasks' or

'actions' or 'the science ofpraxis , (Skulason, 2004).

Engineers with a Bachelor or Master degree are typically products of a four-year and two-year

university programs respectively, which vary little from university to university, or even

country to country (D'Cruz and Shaik, 2007). Engineers constitute, after teachers, the largest

profession in America (National Science Board, (2002), cited in America's science and

engineering workforce, 2009). Marken (2001) concurred after studying the formation 0 f more

than 150 companies, and talking with the heads often different venture capital organizations,

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he fo und that 90 percent of technology based firms are started by engineers. These trends are

producing a new type of engineers, the entrepreneurial engineers (Creed, Suuberg and

Crawford, 2002). This study will shed light on whether the Dayak engineers are going in the

same direction as their Americans counterpart towards becoming entrepreneurial engineers.

The most common among the many engineering disciplines that are related to the construction

industry are Civil, Electrical, Mechanical and Structure. In Malaysia, the Registration of

Engineers Act 1967 requires that any person who wants to take up employment as an engineer

must be registered as a Graduate Engineer with Board of Engineer Malaysia

(http://www.bem.org.my/v3/app~raduate.html). However, if an engineer wishes to engage

in an engineering consultancy practice, the person must be a registered Professional Engineer

who:­

1) registered as a Graduate Engineer with Board of Engineer Malaysia (BEM)

2) has satisfied the training requirements ofBEM

3) has pas ed the Professional Assessment Examination (PAE) of BEM or be elected as a

Corporate Member of the Institution of Engineers Malaysia (lEM)

4) has been residing in Malaysia for a period of not less than six months immediately

prior to the date ofapplication to be registered as Professional Engineer

2.3.2 Characteristics ofEngineers

''In England in the olden days, it was a known joke to ask "Any gin here?" if a place was dull

and needed livening up. This soon changed to the more colloquial form of Eny-gin-eer and

then to Engineer to describe someone who needed livening up or was miserable for having a

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1.4

2.4.1

.

low wage and self esteem" (http://www.eng-tips.comlviewthread.cfm?q id= 130620&page= 10).

In Sarawak, some locals confused engineers and an operator of "enjin nyor", local Malay

dialect for coconut engine operators.

The entrepreneurial engineers today need a broad range of skills and knowledge, above and

beyond a strong science and engineering background. They must be an effective

communicators and team players, with a knack for understanding the non-technical and

human factors issues that profoundly affect engineering decisions (Creed, Suuberg and

Crawford, 2002). Knowledge on accounting, taxation, human resource management, project

management and etc will be an added advantage.

This study will examine whether the Dayak entrepreneurial engineers has the skill, knowledge

and know-how in order to be successful in the construction industry.

Entrepreneurship and Entrepreneur

Definition ofEntrepreneurship and Entrepreneur

In recent years, a lot of studies have been done on entrepreneurship. Researchers all over

world define entrepreneurs with varying defmition but. all are based on the definition of

entrepreneurs by Joseph Schumpeter (1934). He defined entrepreneurs as those who

roduce new technology into the production process. To him the entrepreneurial function

promotes innovation, the introduction of new products or processes (Schumpter, 1934, cited

Osborne, 1987).

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• The modem interpretation of entrepreneurship derives from the French verb entrepredre,

which means 'to undertake', 'to take in one's own hands', or to adventure, to try (Schaper &

olery, 2004). While Universiti Teknologi Malaysia Entrepreneurship Study Group (UiTM

ESG, 2004) defines entrepreneurship as a process of creating and expanding businesses that

collectively form a force for national development and societal prosperity. Cunningham and

Lischeron (1991) defmed entrepreneurs as "extraordinary achievers", "founder", "creative

destruction", "creating value through the recognition of business opportunity, the

management of risk taking", "social architect" and ''those who pull together to promote

innovation". Catherine and George (2006) argued that entrepreneurship could effectively

been considered as; ftrstly, the speciftc activity of business formation and small business

management, secondly, as a new style of managerial behaviour in established organisations.

Such are the various defmition of entrepreneurship that there is no single deftnition for it.

However, common among these deftnitions is the notion of value creation through venture

creation (Jong, u.d.)

2.4.2 Characteristics ofEntrepreneurs

An entrepreneur refers to an individual who has a unique personality that is not possessed by

normal individuals (Jaafar, Remayah and Mohammad, ·200 I). UiTM ESG (2004) deftnes

entrepreneur as individuals who actively form or lead their own businesses and nurture them

fur growth and prosperity.

Dyer (1992) categorized entrepreneurs as 1) Technical Entrepreneurs, 2) Organization

Builders and 3) Deal Makers. He argued that technical entrepreneurs have strong technical

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