CEO severance has captured the attention of a wide array of audiences, yet it remains largely unexplored by management scholars. This paper offers a rigorous theoretical examination of CEO severance with the goal of developing a foundation for a systematic research agenda. In particular, we consider if, and how, severance agreements can be effective in serving the interests of both CEOs and shareholders. We argue that severance agreements have potential value as both an executive recruitment and governance tool, but that the way they are conventionally structured undermines the value that shareholders realize from them. The implications of structure have been almost entirely overlooked by scholars, perhaps because the influence of compensation consultants has left little variance in how severance agreements are implemented across firms. We address this gap by theorizing about how severance agreements could be structured to effectively generate value for executives and shareholders. To do this, we introduce a categorization of key dimensions of CEO severance agreements, and consider how each of these dimensions can be structured to facilitate CEO recruiting, while simultaneously mitigating future governance problems. Our propositions offer new opportunities for governance and compensation scholars to link CEO severance agreements to important organizational outcomes.

Do firms learn from their failed innovation attempts? Answering this question is important because failure is an integral part of exploratory learning. In this study, we explore whether and under what circumstances firms learn from their small failures in experimentation. Building on organizational learning literature, we examine the conditions under which prior failures influence firms' R&D output amount and quality. An empirical analysis of voluntary patent expirations (i.e., patents that firms give up by not paying renewal fees) in 97 pharmaceutical firms between 1980 and 2002 shows that the number, importance, and timing of small failures are associated with a decrease in R&D output (patent count) but an increase in the quality of the R&D output (forward citations to patents). Exploratory interviews suggest that the results are driven by a multi-level learning process from failures in pharmaceutical R&D. The findings contribute to the organizational learning literature by providing a nuanced view of learning from failures in experimentation.

We consider how social and psychological connections among CEOs explain the propensity for corporate leaders to distance themselves socially from journalists who engage in negative reporting about firm leadership at other companies, and we examine the consequences for the valence of journalists' subsequent coverage. Our theoretical framework suggests that journalists who have engaged in negative coverage of a firm's leadership and strategy are especially likely to experience distancing from other leaders who (i) have friendship ties to the firm's CEO, (ii) are demographically similar to the CEO on salient dimensions, or (iii) are socially identified with the CEO as a fellow member of the corporate elite. Our theory and findings ultimately suggest that, due to the multiple sources of social identification between CEOs, journalists who engage in negative coverage of firm leadership tend to experience social distancing from multiple CEOs, and such distancing has a powerful influence on the valence of journalists' subsequent reporting about firm leadership and strategy across all the firms that they cover. We also extend our theoretical framework to suggest how the effect of social distancing on the valence of journalists' coverage is moderated by the early and late stages of a journalist's career.

Management educators often assume that research-based arguments ought to be convincing to students. However, college students do not always accept even well-documented research findings. Among the reasons this might happen, we focus on the potential role of psychological mechanisms triggered by scholarly arguments that affect students' self-concepts, leading them to engage in self-enhancing or self-protective responses. We investigated such processes by examining students' reactions to a research argument emphasizing the importance of intelligence to job performance, in comparison to their reactions to research arguments emphasizing the importance of emotional intelligence and/or fit. Consistent with our predictions, students were less likely to accept the argument for the importance of intelligence compared to the alternative, less threatening, arguments (i.e., the importance of emotional intelligence or fit). Further, acceptance of the argument about the importance of intelligence was affected by students' grade point average (GPA) and moderated by their emotional stability. Specifically, consistent with self-enhancement theory, students with lower GPAs were more likely to reject the argument for intelligence and give self-protective reasons for their responses, whereas students with higher GPAs were more likely to accept the argument and give self-enhancing reasons. Implications for future research and for management teaching are discussed.

While many studies explain how social science theories shape social reality, few reflect critically on how such theories should shape social reality. Drawing on a new conception of social welfare and focusing on financial regulation, we assess the performative effects of theories on public policy. We delineate how research that focuses narrowly on questions of efficiency and stability reinforces today's technocratic financial regulation that undermines social welfare. As a remedy, we outline how future management research can tackle questions of social justice and thereby promote an inclusive approach to financial regulation that better serves social welfare.

Psychological empowerment has been studied extensively over the past few decades in a variety of contexts and appears to be especially salient within dynamic and complex environments such as healthcare. However, a recent meta-analysis found that psychological empowerment relationships vary significantly across studies, and there is still a rather limited understanding of how empowerment operates across levels. Accordingly, we advance and test a multi-level model of empowerment which seeks to better understand the unique and synergistic effects between unit and individual empowerment in hospital units. Analysis of data involving 544 individuals in 78 units, collected from multiple sources over three different time periods, revealed that unit empowerment evidenced a synergistic interaction with individual-level psychological empowerment as related to individuals' job performance, as well as an indirect effect on performance via individual empowerment, while controlling for previous performance levels. Notably, these effects were significant at relatively high, but not at relatively low levels of unit empowerment. Furthermore, we found that unit voice climate increased unit empowerment and thereby enhanced individual psychological empowerment. These findings suggest that, in complex and dynamic environments, empowering work units is an important means by which leaders can enhance individuals' performance.

We develop and test a theoretical model that explores how individuals appraise different types of stressful job demands and how these cognitive appraisals impact job performance. The model also explores how charismatic leaders influence such appraisal and reaction processes, and by virtue of these effects, how leaders can influence the impact of stressful demands on their followers' job performance. In Study 1 (n = 74 U.S. Marines), our model was largely supported in hierarchical linear modeling analyses. Marines whose leaders were judged by superiors to exhibit charismatic leader behaviors appraised challenge stressors as being more challenging, and were more likely to respond to this appraisal with higher performance. Although charismatic leader behaviors did not influence how hindrance stressors were appraised, they negated the strong negative effect of hindrance appraisals on job performance. In Study 2 (n = 270 U.S. Marines) charismatic leader behaviors were measured through the eyes of the focal Marines, and the interactions found in Study 1 were replicated. Results from multilevel structural equation modeling analyses also indicate that charismatic leader behaviors moderate both the mediating role of challenge appraisals in transmitting the effect of challenge stressors to job performance, and the mediating role of hindrance appraisals in transmitting the effect of hindrance stressors to job performance. Implications of our results to theory and practice are discussed. Keywords: stress, leadership, job performance, multilevel modeling

Previous academic and popular literature has raised important debates concerning the contradictory incentives of international firms to reduce their environmental impacts and offer transparent environmental information about their operations. As an exhaustive review of this literature reveals mixed and partial evidence, we compared the individual corporate environmental performance and disclosure of the 100 most international non-financial firms in the world to those of 16,023 firms in their industries and a group of matched pairs of firms for three different years. Our results show that although the top international firms have a much better record of environmental disclosure than the firms within their industries and the matched pairs, the top international firms also show worse environmental performance than their peers. The results suggest that the top international firms seek legitimation for their environmental activities by means of voluntary disclosure.

We extend the knowledge-based perspective to consider the impact of spin-out founders on knowledge transfer to new ventures. We argue that existing theory largely ignores the founder's role as team catalyst who mobilizes a team and transmits the team's knowledge to a new venture. We address this gap by building theory on the role of a spin-out founder as a facilitator of co-mobility, and whose impact on firm outcomes is mediated by the size and organizational experience of the recruited team. The support for our hypotheses, through use of linked employee-employer US Census data from the legal services industry, has theoretical and practical implications for the knowledge-based view and human resource strategies for both existing and entrepreneurial firms.

Using data from 607 subjects organized in 161 teams (84 laboratory teams and 77 organizational field teams), we examined how leader humility influences team interaction patterns, emergent states, and team performance. We developed and tested a theoretical model arguing that when leaders behave humbly, followers emulate their humble behaviors, creating a shared interpersonal team process (collective humility). This collective humility in turn creates a team emergent state focused on progressively striving toward achieving the team's highest potential (collective promotion focus), which ultimately enhances team performance. We tested our model across three studies wherein we manipulated leader humility to test the social contagion hypothesis (Study 1), examined the impact of humility on team processes and performance in a longitudinal team simulation (Study 2), and tested the full model in a multistage field study in a health services context (Study 3). The findings from these lab and field studies collectively supported our theoretical model, demonstrating that leader behavior can spread via social contagion to followers, producing an emergent state that ultimately affects team performance. Our findings contribute to the leadership literature by suggesting the need for leaders to lead by example, and showing precisely how a specific set of leader behaviors influence team performance, which may provide a useful template for future leadership research on a wide variety of leader behaviors.

Agency theory-grounded research on boards of directors and firm legitimacy has historically viewed CEO power as de-legitimating, often taking this fact for granted in theorizing about external assessors' evaluations of a firm. With few exceptions, this literature has focused exclusively on capital market participants (e.g., investors, securities analysts) as the arbiters of a firm's legitimacy and has accordingly assumed that legitimate governance arrangements are those derived from the shareholder-oriented prescriptions of agency theory. We extend this line of research in new ways by arguing that customers also externally assess firm legitimacy, and that firms potentially adjust their governance characteristics to meet customers' norms and expectations. We argue that the cultural-cognitive institutions prevalent in customers' home countries influence their judgments regarding a firm's legitimacy, such that firms competing heavily in high-power distance cultures are more likely to have powerful CEOs, with CEO power a source of legitimacy—rather than illegitimacy—among customers. We also argue that the more dependent a firm is on its customers and the more salient cultural power distance is as a demand-side institutional norm, the greater this relationship will be. Data from 151 U.S. semiconductor and pharmaceutical firms over a 10-year period generally support our predictions.

Drawing on theories of behavioral decision making and situational strength, we developed and tested a multilevel model that explains how the performance outcomes of personal initiative tendency depend on the extent of alignment between organizational control mechanisms and proactive individuals' risk propensities. Results from a sample of 383 middle managers operating in 34 business units of a large multinational corporation indicated that risk propensity weakens the positive relationship between personal initiative tendency and job performance. This negative moderating effect was further amplified when middle managers receive high job autonomy but was attenuated in business units with a strong performance management context. We discuss the implications of these findings for research on proactivity, risk taking, and organizational control.

A key finding in the literature on industry evolution and strategy is that knowledge "inherited" from the founder's previous employer can be an important source of a new firm's capabilities. We analyze the conditions under which knowledge that is useful for carrying out a key value chain activity is inherited, and explore the mechanism through which such an inheritance shapes an entrant's strategies and, in the process, influences its performance. Evidence from the early U.S. auto industry indicates that employee spinoffs generated from incumbents that had integrated a key value chain activity were also more likely to integrate that activity than other entrants, which, we suggest, reflects the application of knowledge inheritance relative to that activity. Moreover, we find that the integration of this key activity, stimulated by knowledge inheritance, contributed to the establishment of defensible strategic positioning, thereby enhancing the survival duration of inheriting spinoffs. We thus link together the phenomena of knowledge inheritance, vertical integration, and strategic positioning to explain entrant performance. These three phenomena tend to be treated disparately in the literature, rather than in combination.

Despite the proliferation of strategy process and practice research, we lack understanding of the historical embeddedness of strategic processes and practices. In this paper, we present three historical approaches with the potential to remedy this deficiency. First, realist history can contribute to a better understanding of the historical embeddedness of strategic processes; in particular, comparative historical analysis can explicate the historical conditions, mechanisms, and causality in strategic processes. Second, interpretative history can add to our knowledge of the historical embeddedness of strategic practices, and microhistory can specifically help to understand the construction and enactment of these practices in historical contexts. Third, poststructuralist history can elucidate the historical embeddedness of strategic discourses, and genealogy can in particular increase our understanding of the evolution and transformation of strategic discourses and their power effects. Thus, this paper demonstrates how in their specific ways historical approaches and methods can add to our understanding of different forms and variations of strategic processes and practices, the historical construction of organizational strategies, and historically constituted strategic agency.

Studies suggest that category-spanning organizations receive lower evaluation and perform worse than organizations focused on a single category. We propose that (1) these effects are contingent on clients' theory of value and that as clients expect more sophisticated services, they tend to value category spanners more positively and (2) the evaluation of producers mediates the relationship between category spanning and performance. We test our hypotheses using original data on corporate legal services in three markets (London, New York City, and Paris) over the decade 2000-2010. We find that (1) category spanners receive a better evaluation, and more so when their categorical combination is more inclusive and (2) evaluation mediates significantly the relationship between category spanning and performance. This study enriches our understanding of how audiences apprehend a whole market category system and why organizations span categories.

The number of constructs developed to assess workplace aggression has flourished in recent years, leading to confusion over what meaningful differences exist (if any) between the constructs. We argue that one way to frame the field of workplace aggression is via approach/avoidance principles, with various workplace aggression constructs (e.g., abusive supervision, supervisor undermining, and workplace ostracism) differentially predicting specific approach or avoidance emotions and behaviors. Using two multi-wave field sample of employees, we demonstrate the utility of approach/avoidance principles in conceptualizing workplace aggression constructs, as well as the processes and boundary conditions through which they uniquely influence outcomes. Implications for the workplace aggression literature are discussed.

This paper investigates how "dual directors" enable firms that undertake corporate spinoffs to manage their post-spinoff relationships with the firms they divest, as well as the performance implications of dual directors serving simultaneously on these companies' boards. While the presence of dual directors is positively associated with the average stock market returns of parent and spinoff firms, their presence is increasingly positively associated with parent firm performance but increasingly negatively associated with spinoff firm performance as the share of sales a spinoff firm makes to its parent firm rises. These findings show that while dual directors give a parent firm power over its spinoff firm, dual directors only exercise that power at the spinoff firm's expense when that company is highly dependent on its parent firm.

Female corporate leadership has drawn increasing attention from academia and practitioners. We contribute to the literature by examining the impact of CEO succession with gender change—i.e., a male CEO succeeded by a female or vice versa. We propose that due to gender differences in executive leadership positions, CEO succession with gender change may amplify the disruption of the CEO succession process and thus adversely affect post-succession firm performance and increase the likelihood of successor early departure. Using data from 3,320 CEO successions in companies listed in China's Shanghai and Shenzhen Stock Exchanges from 1997 to 2010, we find evidence to support this argument. We also find that the negative (positive) impact of male-to-female succession on firm performance (the likelihood of successor early departure) may be weakened by positive organizational attitudes toward female leadership as indicated by the presence of other female leaders on the firm's board of directors and/or top management team, and the successor's inside origin.

For now, there are several good choices for gun owners that DeWine can make, a few problematic ones, and one that’s completely unacceptable, his previous pick Dolan.

THIS Hari Raya, The Gardens Mall is bringing the comfort of home and the memories of celebrations with loved ones to its mall decor. With many unable to travel back to their kampung to visit grandparents and other loved ones, the Mall decided to bring elements of grandma’s eclectic home to the mall for all to enjoy this year.

Step into the mall and be greeted by a burst of colour and patterns with traditional woven pandanus ware and hand-sewn patchwork fabric. Snap photos with friends and family at the various vignettes set-up along the Ground Floor. Much like atok’s garden, there is much greenery around
to coax nostalgia for the simple kampung life.

Not forgetting the underprivileged this season, over at the South Palm on the Ground Floor, The Gardens Mall is collecting your unwanted denim to donate to the single mothers of SURI. SURI is a social enterprise that employs single mothers from low-income communities to turn unwanted denim material into fashionable apparel and other household items. SURI also believes in protecting the environment through upcycling.

As part of the partnership during Hari Raya, The Gardens Mall has pledged RM10,000 to SURI for its efforts in helping these single mothers gain financial independence.

HEINEKEN MALAYSIA BERHAD (Heineken Malaysia) recently announced that it had achieved a significant sustainability milestone in its mission to balance more than 100% of water used in its products.

Thanks to strides made under its Every Drop water strategy, the company was able to achieve this goal last year, 10 years ahead of schedule.

Speaking at the virtual launch of the Company’s Water Balancing Report 2020, Heineken Malaysia managing director Roland Bala said: “Water is central to Heineken and indeed a precious resource that is essential to all life. Our efforts in protecting our water resources over the years have enabled us to fully balance water used to brew our beers and ciders.

“We have an ambitious target to balance 1.5 litres for every 1 litre of water used in making our products.”

He added that last year, through initiatives like river and peatland conservation, rainwater harvesting, reforestation, and other community initiatives, Heineken Malaysia exceeded its water balancing target by 267%.

Heineken Malaysia’s water balancing achievements are quantified in line with international industry-standard methodologies consistent with the Volumetric Water Benefit Accounting framework published by the World Resources Institute. The results are independently validated and verified by LimnoTech, a leading international environmental science and engineering firm based in the USA.

Also at the launch were Heineken Malaysia corporate affairs and legal director Renuka Indrarajah and mananger for the RIVER Care Programme of GEC Dr. Kalithasan Kailasam, who spoke at length about the company’s various other initiatives under the W.A.T.E.R Project, a partnership between SPARK Foundation and GEC, which started in 2007.

Among the success stories were:

● The rehabilitation of Sungai Way, an urban river in an urban industrial zone, resulting in the improvement of the river’s water quality from Class IV – V (extremely polluted, not suitable for living organisms) to Class III (suitable for living organisms);

● Construction of a 305m clay dyke at the Raja Musa Forest Reserve that stores up to 136.1 million litres of water annually, contributing to the long-term sustainability of Sungai Selangor;

● Installation of over 1,000 water thimbles for more than 500 households in the Klang Valley, which resulted in water savings of 19 litres per capita per day on average;

● Installation of 16 rainwater harvesting systems for communities in Selangor, thus providing them with an alternative water source and reduce reliance on treated water for non-potable usage as well as relieving pressure on our water resources;

● Reforestation of one hectare of degraded peatland at the Raja Musa Forest Reserve, which reduces the risk of peat fires and increases the peatland’s water table, contributing to the health of Sungai Air Hitam within the Sungai Selangor watershed.

Roland added that he was optimistic that the company, buoyed by this recent achievement, would achieve the rest of its planned sustainability targets going forward.

“It is challenging,” he said, “but we believe in Heineken’s [mission]. We can do it as an organisation, and we are committed to do what we need to get there.”

Heineken Malaysia’s Water Balancing Report 2020 is available to the public via this link.

DURING my visit in 1985, I had met the management staff at the plantation in Ghana. The one I remember most was Al Doku.

He was the chief accountant, about 45 years old, working for the managing director, Bill Morrison.

At the meeting in Morrison’s office, he could remember the figures well, and I was impressed. It was just that he was quiet for most of the time, and I could see that his eyes were sad.

At that time, there were many reasons to feel that way. The cedi was devaluing every week, and to go for dinner in town was a major decision for it would involve bringing your money in big wads to pay for it.

This is despite the income from gold that Ghana was blessed with as well as cocoa, which has a flavour that commands a premium. The country also produces shea nut, the fruit of massive trees that grow in the north. The oil is like cocoa butter.

However, that year the food shortage was bad, even potatoes were hard to find. They had to be imported.

Morrison had helped with giving breakfast to the workers, and they would line up for the palm oil, tapioca and fish cooked in large pots in front of them before they started work for the day.

Due to the shortage of hard currency, the plantation too had to make do without many things, and building of workers’ houses was one of them as no imported material was used.

At the housing project for workers, I had no time to ask about Al Doku.

I watched Bill giving instructions to the building supervisor. He was using earth to make a thick wall to build a house, and when it was dry after a few days, he added another level, until the building had a coat of cement and more walls for the rooms. I had not seen a building made in that way before. Bill was thorough.

“Saves a lot of money,” he said, as we had breakfast back in his bungalow. I had fried eggs and a lot of tapioca done very well that they looked like baked potatoes.

I knew that in London Leslie Davidson had advocated using raw materials for buildings, and even for expatriates, he said they could save by eating what is available in the local market and eat like what the locals do, but as usual Bill did not do anything by halves.

“We should be leaving soon to see the country, first to the slave castle at Cape Coast.”

It was in the car that he talked about Al Doku.

“He is going to London on a course that I had arranged for him. But the other reason is it gives him a chance to take his daughter there for treatment. She is losing her eyesight and probably it could be saved by the doctors there.”

“Let him know that I will be in London. I will take him to my house and have lunch with him. He impresses me.”

At the slave castle in Cape Coast, Bill had paid a guide to take us through the full tour. I saw the high white walls and the dark cellars made for the incarceration of human captives. The guide said they were standing in human waste until the time the ship arrived, and they were whipped and pushed through a small exit that all would call the “door of no return”.

We climbed into bright sunlight again to the chapel and the quarters of the commandant. The castle had been fought over by the Swedes, the Norwegians, the Danes and the Dutch before it fell to the English. They traded the slaves in the New World, coming home with cotton and sugar, and out again with cloth and guns to the Gold Coast, and the cycle went on for years.

I was tired after the tour. Bill said to me: “Now I will take you to Elmina castle.”

I did not expect that. It was more or less the same, tiring, as I walked on the hot open yard with rusted cannons lined over the thick stone walls facing the Atlantic below. Coconut trees leaned by the shore where lazy waves lapped away at the sand.

But where our car was parked, we were stopped by many hawkers, who made a brisk business selling handicraft, and what interested me most was the colourful cloth weaved in bright red, yellow and green that I knew was the work of skilled people. The pattern attracted me.

“Fine kente cloth, but tourist prices,” Bill said.

“Can you ask Al Doku if he can bring back a piece and I will pay him in London.”

That was how Al Doku met me again and on a weekend. I invited him for lunch with my family in Surrey and he brought the piece of cloth. It must have cost him a lot of money, and I did not mind paying him a premium for his effort, and it was very beautiful, and probably fit for a minor chief to wear in Ghana.

His daughter was getting medical treatment at a hospital.

I did not hear of Al Doku for many years after I left Unilever, but I still thought of his visit and the lunch like it was yesterday. I had always wondered how he got on after all these years. I remembered him warmly.

By chance, I met him again when he was attending an oil palm conference in Kuala Lumpur. It was just before the conference dinner. I was delighted to see him again and hugged him. I felt a glow of old friendship.

“But I don’t remember you,” he said.

I drew back and explained that he was my guest for lunch in England, and I had bought the kente cloth. I asked him how his daughter was.

But he still could not remember me. Long years had passed but surely he could not have forgotten.

I was told by then he was the managing director of the plantation business. I was upset through the courses of the dinner.

It was at the dessert stage that Al Doku walked up to my table and said with a smile.

“I am so sorry I could not remember you. I think I can remember you now.”

He tried to smile again.

“That’s all right,” I said returning to my dessert.

He tried to be nice to me but the glow of friendship was gone.

The writer has extensive experience in the management of oil palm plantations. Comments: letters@thesundaily.com

KUALA LUMPUR: As the takaful industry contends with escalating medical inflation and the rising costs of healthcare, the Malaysian Takaful Association (MTA) has called for increased government and private sector collaboration to ensure affordable, accessible protection options for all Malaysians.

MTA CEO Mohd Radzuan Mohamed envisions takaful becoming a leading option for Malaysians seeking protection.

With only 60% of the population currently insured or covered by takaful, he sees untapped potential among the remaining 40%, primarily in underserved and unserved communities.

“Our goal is to make takaful an accessible option, particularly for groups like the BM40 (top 20% of B40 and bottom 40% M40), who often do not receive enough attention from traditional agents,” he told SunBiz at the recent launch of Hijrah27.

Radzuan said the takaful sector has struggled to expand its market share, currently at about 20% after four decades.

In response, he said, they are considering how digital transformation, distribution enhancements and technology can address these challenges.

“Malaysia’s transformation plan and recent initiatives, like the financial sector blueprint, outline steps to close this gap by focusing on underserved communities, leveraging financial literacy campaigns, and engaging technology to make takaful accessible,” he added.

Additionally, he said co-payments, a shared cost model between the insurer and the insured, is seen as a potential solution to rising premiums fuelled by medical inflation.

“Collaborating with the Ministry of Health and Bank Negara Malaysia, takaful providers aim to develop cost-sharing models that help balance affordability and coverage. With co-payments, premiums could become more manageable, helping to mitigate the effects of medical inflation and making Takaful accessible for more people.”
While the adoption of co-payments is currently optional, Radzuan said, making it mandatory could have far-reaching implications on the takaful industry. “A balanced co-payment structure can be beneficial, but affordability must remain a priority to avoid defeating the purpose of protection,” he emphasised.

Looking forward, Radzuan said the association is exploring new technology-driven initiatives, such as the Hijrah27 framework, to improve customer service and operational efficiency. “Collaborations with fintech firms and the rise of AI-based solutions also show promise in elevating the industry’s standards and expanding reach,” he added.

KUALA LUMPUR: The shift towards subscription-based services is gaining traction in Malaysia, aligning with a broader global trend that redefines how consumers access products.

This model provides an appealing option for many Malaysians, particularly young families and newlyweds, who face rising living costs.

Offering high-quality appliances on a subscription basis eases the financial burden of ownership, allowing consumers to enjoy premium products without the pressure of a large upfront investment.

One notable brand offering subscription-based home appliance services is the South Korean brand, LG.

LG Malaysia product director of subscription business Hojin Jung said the introduction of the LG Rent Up Subscription in Malaysia is a natural progression of the company’s commitment to providing innovative and accessible solutions tailored to the evolving needs of modern consumers.

“LG Rent Up Subscription is inspired by our success with subscription models in South Korea, where we saw significant growth, driven by increasing demand for convenience and affordability.

“Recognising similar trends here, we noticed a growing interest in flexible ownership models in Malaysia, spurred by the need for more cost-effective solutions amidst rising living expenses and fuelled by shifting consumer preferences.

“Since its launch in March 2024, the market response has been encouraging. We have seen growing inquiries from customers who have signed up for our water purifier subscription model and are now exploring subscriptions for other high-demand appliances such as refrigerators, washing machines and TVs.

“This shift highlights a changing mindset in how Malaysians approach home appliance ownership – especially among younger, urban consumers who prioritise access over ownership, seeking premium products without the upfront financial commitment,” Hojin told SunBiz.

He said urbanisation and the desire for more sustainable, convenience-focused living have made subscription services an attractive option.

“By offering top-tier technology on a subscription basis, we make high-end living more accessible while emphasising affordability and environmental responsibility. LG’s Rent Up Subscription model meets Malaysians’ evolving needs, allowing them to enjoy premium technology without the burden of ownership,” he said.

Hojin said the subscription model is gaining popularity among young Malaysians, especially urban professionals and families facing high living costs and limited space.

This trend, he said, reflects a growing shift toward a ‘sharing economy,‘ where access to energy-efficient appliances without the financial strain of ownership is valued.

LG Rent Up Subscription’s launch saw a strong uptake in Kuala Lumpur and major cities, where 40% of tech-savvy millennials prefer renting to stay updated with technology affordably.

Elaborating on the model further, Hojin said that although subscription services share similarities across markets, the Malaysian context has distinct differences.

“In South Korea, for example, the rental model for water purifiers is well-established, with over 70% market penetration. Malaysia, meanwhile, is still in its early phase, but consumer awareness is rising quickly. Moreover, this trend is not isolated to Malaysia. LG is actively preparing to introduce the subscription model in other markets, including Taiwan and Thailand, by year-end.”

Touching on the vision for LG Rent Up in Malaysia, Hojin said the LG Rent Up Subscription is just the beginning of a transformative journey in how it engages with consumers in Malaysia.

“As we look ahead, we plan to expand our subscription offerings to include a wider array of smart home appliances and electronics, reflecting the growing demand for connected living solutions.

“Our vision for LG Rent Up Subscription is to enhance the customer experience by offering seamless integration with our LG ThinQ technology, which already empowers our appliances to be more intuitive and user-friendly. This will allow our customers to enjoy a smart, responsive lifestyle, further elevating the convenience and efficiency of their homes,” he explained.

Hojin said that as the subscription economy continues to evolve, particularly among tech-savvy and environmentally conscious consumers, LG Rent Up Subscription aims to play a pivotal role in making premium technology more accessible.

“Our ultimate goal is to foster a circular economy model in which subscribing to high-quality appliances reduces the financial burden on consumers and contributes to sustainability by extending product lifecycles and minimising waste.

“The more we enhance our subscription model, the more committed we are to making innovative technology more attainable. We ultimately aim to enrich the lives of our customers while promoting responsible consumption and environmental stewardship,” Hojin said.

Volkswagen Group is seeking significant cost reductions as it faces declining demand, rising expenses, and mounting competition. The automaker has proposed a 10 per cent wage reduction for its union employees after IG Metall, the union representing Volkswagen’s workforce, requested a seven per cent raise. This wage cut comes as part of broader measures Volkswagen is considering to address financial difficulties, which include restructuring bonuses and possibly eliminating anniversary and monthly bonuses.

Despite these proposed changes, Volkswagen’s CEO Thomas Schafer has not ruled out more drastic options, such as plant closures, if cost-cutting goals are not met through negotiations. “Successful operations are a prerequisite for job security,” said Arne Meiswinkel, VW’s lead negotiator, highlighting the necessity for lower labour costs to stabilise the company.

Volkswagen reported a steep 42 per cent drop in third-quarter operating profits, and its core brand posted only a two per cent operating margin through September. According to CFO and COO Arno Antlitz, this underscores the need for “significant cost reductions and efficiency gains” to sustain the company’s operations.

Rumours of potential plant closures in Germany have circulated as the company confronts inefficiencies across several domestic sites. Schafer remarked that the issues cannot be resolved by “simple cost-cutting measures,” indicating deeper structural challenges within the automaker’s German manufacturing operations.

Volkswagen and IG Metall will resume negotiations on November 21.

Move over, Dr. Evil; Russia has just hit Google with a fine that would make even him laugh maniacally. That’s right: a whopping $20 decillion! For context, that’s $20,000,000,000,000,000,000,000,000,000,000. It’s the kind of number so absurd that it stops being math and starts becoming pure science fiction. ...

If you’ve sent kids to college, you’ve probably heard of FAFSA (Free Application for Federal Student Aid). FAFSA offers federal government aid via loans, grants and work-study options. It determines how much financial aid your children will get for college based on your family’s income and assets. As a parent, that includes your income, investment […]

The post How Do I Avoid the Money in My Bank Disqualifying My Children From Financial Aid for College? appeared first on Clark Howard.

The number of drivers who let their insurance monitor their driving has more than doubled in less than a decade! While many drivers were once skeptical of the practice, the benefits are becoming more and more appealing as people make the switch to usage-based insurance. And as car insurance rates continue to climb, even more […]

The post Should You Allow Your Auto Insurance To Monitor Your Driving? appeared first on Clark Howard.

Last year, the Federal Trade Commission (FTC) received more than 1 million reports of identity theft! And the AARP found that, “American adults lost a total of $43 billion to identity fraud in 2023.” So, it makes sense that — if protection exists against identity theft exists — you want it. There’s no shortage of […]

The post What Is Identity Theft Insurance and Should You Buy It? appeared first on Clark Howard.

It’s estimated that 27% of people in America live in a condo or homeowner’s association (HOA) property. If you’re one of them, then you’re all too familiar with the double-edged sword that is your HOA. On the one hand, your HOA can ensure that your community is kept to a certain standard. On the other […]

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There’s a high chance your car insurance has gone up recently. If not, the bad news is it might increase at your next renewal. But there’s good news, too. You don’t have to simply accept an auto insurance increase! Take money expert Clark Howard’s advice to save. He says: “This year coming up in ‘25 […]

The post Why You Need To Re-Shop Your Car Insurance Right Now appeared first on Clark Howard.

Worried about living a life of poverty during your golden years? Longevity insurance is a little-known policy that could prevent that.

The post Longevity Insurance: What Is It and Do You Need It? appeared first on Clark Howard.

Many people don't understand their rights as a an airline passenger or when they're due compensation. Here's what you need to know before your next flight.

The post What To Do if Your Flight Is Delayed or Canceled appeared first on Clark Howard.

Ducati achieved a fourth-place finish at the Suzuka 8 Hours last weekend, and plans for the future could include Pecco Bagnaia.

The post Could Francesco Bagnaia Race the 2025 Suzuka 8H Hours? appeared first on BikeSport News.

Star-studded nuptials started in March with a three-day pre-wedding party with a performance by superstar Rihanna

The settlement brings end to two separate investigations focused on illegal drilling practices and consumer deception

Visa investing in building digital payment infrastructure in the country to make process less costly, more manageable

Partners with 1Link to streamline remittances, encourage digital transactions.

Former actress accuses Olympian of letting fame get to his head after a video shows him ignoring a reporter

The popular host said she did not intend to break any confidential news, explaining her side.

The actress shared the news of her husband’s passing on Instagram.

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An undated image of a pyramid in Egypt. — Unsplash

The Egyptian pyramids continue to captivate the world with their immense size, ancient history, and the enduring mysteries surrounding their construction.

Built as grand tombs for pharoahs thousands of years ago, these...

Breast cancer awareness: A contrast of its history in PakistanAn ode to breast cancer awareness:

As the month of October comes to an end with its sea of pink ribbons, it has reminded us once again of a critical issue that deserves more than just symbolic gestures: breast cancer awareness....

Benny Blanco spills on special moment of day with Selena Gomez

Benny Blanco candidly shared that the early morning hours are his "favorite time" with Selena Gomez

In a recent chat with People, the music producer uncovered that he is a "real morning person" and this is his favorite...

Renowned media figures, analysts urge Nawaz Sharif to submit to mandate of winners and concede defeat

In this recent Ask the Experts question, learn the difference between a standard and a specification. For more answers, visit the Ask the Experts page.

The movie will perhaps force us to ask questions about topics usually reserved for the back pages of a newspaper

Plus: Chrysler minivans recall, the SRT High Performance Tour and Fiat 500 by Gucci.

It weakened from a Category 2 hurricane to a tropical depression as it moved northeastward over central Mississippi