Rasch Model: Employment Transition in Malaysia Driven by Environmental, Social, and Governance-Driven Transformation and Sustainable Social Innovation

Abstract

Employment transition in Malaysia is undergoing significant change as organizations adapt to sustainability demands and shifting workforce dynamics for economic growth. This paper presents a pilot study investigating the influence of Environmental, Social, and Governance (ESG) and sustainable social innovation on employee transition. The sample comprised 31 audit firms registered with the Malaysian Institute of Certified Public Accountants (MICPA). The research employed a quantitative survey design, with data analyzed using the Rasch measurement model to assess the validity and reliability of the instruments. Data were analyzed using the Rasch Rating Scale Model (RSM), with the Partial Credit Model (PCM) applied where response categories varied. Model evaluation included category functioning, item-person fit, and reliability and separation indices. Targeting was examined using Wright maps, while unidimensionality was assessed through principal component analysis (PCA) of residuals. Local item dependence and differential item functioning (DIF) were also explored to ensure measurement validity. The survey instrument was designed to capture three latent constructs: ESG adoption, SSI practices, and ET readiness. The results show strong psychometric properties, with person reliability of 0.82 and item reliability of 0.91, confirming consistency and structural soundness. Person and item separation indices of 2.11 and 3.15 further demonstrate the model's effectiveness in differentiating between ability levels and item difficulty. However, some misfit items and potential multidimensionality highlight areas for refinement. This study places ESG and sustainable social innovation in the context of Sustainable Development Goals (SDGs) and focuses on their potential to create inclusive and sustainable solutions. Overall, the pilot study indicates that the measurement is valid and reliable, and therefore suitable for use in the main study.