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DAYAK ENGINEERS PARTICIPATION AS ENTREPRENEURS IN THE CONSTRUCTION
INDUSTRY
Lainus anak Lichok
Corporate Master in Business Administration 2012
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
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
11
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
.
111
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
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.
v
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
VI
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
Vll
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
Vlll
.,
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
I
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;
2
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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.
3
i
I
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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
4
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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?
5
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
I
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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).
7
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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