Risk Perception is a Mediator Between Cognitive Biases and Risky Investment Decision Empirical Evidence From Pakistan's Equity Markets
Investors play a vital role in stock exchange. Sometimes the decisions are based on rational behavior and sometimes these decisions consist of irrational behavior. Traditionally researchers argued that investors behave like a rational agent. This study explores the investor's cognitive biases and how these biases put affect on investor decision. At the same time due to globalization stock market situation is changed day by day even after few seconds.
The research examined and explored the impact of cognitive biases on risky investment decision and foremost intention of this study to check the effect of cognitive biases on risky investment decision and more specifically the effect of mediating variable on risky investment decision. There are numerous biases which are putting affect on investor decisions but this study explores the combined effect of two biases i.e. heuristic and overconfidence on risk perception, which is mediating variable and also examined the effect of these cognitive biases on risky investment decision.
This study is conducted at three stock exchanges; KSE, ISE and LSE. As this study belongs to the behavior of investor so it comprise of primary data. For this purpose adapted questionnaire is used. 450 questionnaires are distributes out of which 400 questionnaires are returned. The data is run on SPSS. To check the reliability of questionnaire, Cronbach's alpha is applied and the result of reliability is above than 0.7 which is considered to be fit tool for research. Descriptive statistics are used to check the frequency of each respondent towards their age, business tenure and respective stock exchange.
The study finds a significant relationship between cognitive biases (heuristic and overconfidence) and risky investment decisions. There is partial mediation between overconfidence and risky investment decision and full mediation between heuristic and risky investment decision while risk perception is a mediating variable. Study also indicates that risk perception have also positive and significant relation with risky investment decisions.
The Impact of Learning Organization on Organizational Performance: An Empirical Study on Moderating Role of Knowledge Sharing
This study explore the impact of learning Organization on Organizational Performance and moderating role of Knowledge Sharing. Research Questions of the study are: What is learning level of learning in Telecommunication companies in Pakistan? What is the impact of Learning Organization on organization Performance in Telecom companies of Pakistan and what is the Moderating Role of knowledge sharing is? Hypothesis explores positive relationships of basic building blocks of learning organization, with Organizational Performance. There is positive relationship between Supportive learning environment have with organizational performance, concrete learning process and practices with Organizational Performance and leadership that reinforce learning with Organizational Performance. Study explores moderation effect of knowledge sharing on learning organization and organizational performance.
In study, quantitative research design is used. Instrument is integrated 73 items. Instrument contains three parts, (1) Learning Organization (Garvin, Edmondson, & Gino, 2008), (2) organizational Performance (Li & Lu, 2007) and (3) knowledge sharing (S. Kim & Lee, 2006). Correlation Analysis of each items of major variable confirms the moderate relationships between them. Data is collected from population of 600 front and middle managers of telecommunication companies in Faisalabad, Pakistan. 245 valid responses are entered in statistical program tool (SPSS 20) to perform data analysis. Results and discussion of the study discuss that research fulfill the objectives of the study. In Pakistan, companies are at initial stage of learning which means all companies need to focus on all building blocks of learning organization to achieve competitive edge. Companies can use these findings in future to analyze themselves from wider perspectives.
This research can help R&D departments to work on these areas for better performance of companies. Due to some limitations of study, this research suggests some future recommendations. Due to limited time and other resources, research was limited to small population and sample size. In future, research can be conducted for large population. In future, other companies can use this research for their better performance.
The Effect of Leadership Style in Group Effectiveness: The Mediating Role of Counterproductive Behavior
This research is an attempt to solve the Dilemma of leadership regarding the behavior of leaders towards their subordinates. Most of the previous literature on the leadership suggests that the leaders should differentiate their behaviors depending upon the needs of subordinates as well as their level of maturity. But the current research suggests the differentiation of behaviors on the part of leaders hampers group effectiveness. Furthermore this differentiation also results in increase in counterproductive behaviors of employees.
When the employees observe that the leader is giving more attention to some group members and less to some they feel that injustice is there in the organization. Due to this feeling of presence of injustice in the organization they are engaged in counterproductive behaviors that decrease the overall effectiveness of the group. These behaviors are not only harmful for the well being of the organization but employees as well. The research data is gathered through structured questionnaires from different organizations in Faisalabad to enhance the genralizability of research findings. The sample size comprised of 71 workgroups. The research tested a model addressing group focused Leadership as well as differentiated individual Focused leadership.
Results of study revealed that differentiated Individual focused leadership is related negatively to group effectiveness through increasing counter productivity where as group focused leadership relates positively to group effectiveness by decreasing counter productivity. Managerial as well as future implications of the research are also discussed. This research can be an effective guideline for the managers who think to differentiate their behaviors towards their subordinates.
Supply Chain Management Practices As Precedent of Operational and Organizational Performance in Textile Firms of Pakistan
The purpose of this study was to determine the underlying dimensions of Supply Chain Management (SCM) practices and to test empirically, a framework that identify the significant relationship among SCM practices, operational performance and overall organizational performance with special emphasis on textile sector of Pakistan. The undercut research conceptualized already developed five dimensions of SCM practice (strategic supplier partnership, customer relationship, level of information sharing, quality of information sharing, and postponement) and tested its association between operational performance which have four dimensions production cost, product delivery, product quality, and production flexibility and in last over all organizational performance embraces on two dimensions financial performance and marketing performance.
Data for the study were collected by a sample of 210 Textile firms of Pakistan by using cluster sampling method from overall population of 376 textile firms registered with APTMA. Data collection methodology was email, online and personal administrated questionnaire. The research framework was first tested by using correlation analysis through SPSS 20th version. Based on literature, it was assumed that all constructs are multidimensional so 2nd order confirmatory factor analysis and structural equational path analysis by using maximum-likelihood method through AMOS 20th version.
Analysis of data indicated that there was no reliability or normality issues in all constructs. All item were significantly correlated. Correlation and path analysis confirms the relationship between SCM practice OP and ORP. Moreover, based on 2nd order confirmatory factor analysis, it was concluded that all dimensions have significant loadings with their relative constructs and relationships is also confirmed through path analysis. Perhaps, the most serious limitation of this study was its narrow focus on Pakistani textiles, thus precluding the generalization of findings to other emerging countries as well as other sectors such as service and government sectors that may benefit from a sound SCM strategy. By developing and validating a multi-dimensional construct of SCM practices and by exhibiting its value in improving operational performance of textiles it provides SCM managers with useful tool for evaluating the efficiency of their current SCM practices. Second, the analysis of the relationship between SCM practices and operational performance indicates that SCM practices might directly influence operational performance of textiles and SMEs. Moreover it was also noted that the operational performance significantly mediate between SCM practices and organizational performance.
This paper adds to the body of knowledge by providing new data and empirical insights into the relationship between SCM practices and performance of textiles in Pakistan.
This study examines the influence of board control on the firm performance. The board structure, board power, board communication, board meetings are the predictors of a firm performance. The objective is to investigate either there exist an association between the firm performance and the selected predictors. For measuring the performance, sales of the textile firms have been used and 250 textile firms of Faisalabad are used as sample and for collecting the data convenient sampling method have been used. For collecting the data five point Likert scale questionnaire is used and descriptive statistics in which mean and standard deviation is calculated on the response data. Pearson correlation and simple linear Regression and multiple linear regression methods have been applied to test the hypothesis.
The purpose of the first research hypothesis is to explore whether any significant relationship between the board structure and firm performance is found or not. The simple linear regression has been used in which significant result and positive coefficient indicates that positive association between the board structure and the firm performance is observed. Further to check the association between the board power and firm performance simple linear regression is used which also indicates significant result. Simple linear regression and significant relationship between the board communication and firm performance is confirmed. The simple linear regression results indicate that there is significant association between the board meeting and firm performace.The last research hypothesis has significant relationship between the firm performance and board structure, board power, board communication and board meeting. The multiple linear regression model is used and the assumption of multiple regression has also diagnosed the linearity and normality of the data and found that data is following the assumption of multiple linear regression.
It is concluded that well defined board structure and authorized and responsible board of directors that used their power for the long term decision and keep an eye on the management increase performance of the firm. The strong communication system among different levels of management and the board of directors and the increase in the frequency of board meetings boost the performance of the firm.
A Study of Causal Relationship Between Counterfeit Products And Consumer Preferences A Case Study of Faisalabad
The reason of this research study is to develop a model and test this model also that are about the extraction of major experiences of the consumers which they got from intentional arrogance and readiness to purchase of the substitutes of the luxury fashion products. The watching and investigation of the effects of different many socio-psychological and socio-economic appearances are done in this research study. Theoretical framework is constructed which describes the estimating factors intentions to buy the substitutes of the fashion products after studying previous experiential work and available literature. Covetousness, tendency to avoid risk, monetary and personal benefits, veracity, and social standing symbols, arrogance towards substitutes and readiness to purchase substitutes tells about some details but extravagant spending and tendency to avoid risk were the double determinants of the paradigm. The hypothesis are developed in sound relation with previous literature.
Substitutes has created serious challenges for all countries of the globe. The problem has been experienced by the original brand's authentic products manufacturing companies. The intake of the substitutes is studied in this research. To fill the gap in literature for the readiness to buy substitutes of the luxury fashion products in Pakistan, for extracting determining factors study is done. Found south of East Asia as hub for trading and consuming the substitutes.
The study was done with 257 samples from three big markets (Katchery Bazar, Satyana Road, and D-Ground) of Faisalabad. Questionnaires are used for data collection in all days (weekends and weekdays) from people come with intention to buy substitutes.
To check the relation between variables (independent, dependent and mediating) and testation of the hypothesis SEM (structure equation modeling) technique was used. Study closed with these results; Tendency to avoid risk was negative but trivial, Peer Effect, Previous Outing, arrogance and monetary arrogance towards substitutes were found significant and positive, Tendency to avoid risk insignificant and negative, appealing characteristics of purchase of substitutes and readiness to buy resulted positive and insignificant. This study found after studying previous researches and theories available in the field of marketing and consumer behavior successive to explore the major determining factors after testing a wide range model. These major determining factors are arrogance towards substitutes and users readiness to purchase the substitutes of the luxury fashion products.
Impact of Training on Employee Job Performance with Job Involvement as Mediator: A Study of Textile Companies
This study evaluates impact of training on employee job performance with job involvement as mediator on textile companies of Pakistan. Both literature review and research survey questionnaire of this study discover that training whether on-the-job or off-the-job can get its result through proper design and implementation which should be schematic as per need, creates enthusiasm, job loyalty and enhancement in employee job performance. For this purpose, 240 questionnaires had been distributed in textile companies in Faisalabad for the collection of data. 200 questionnaires data had been processed and analyzed through statistical techniques correlation, regression and multiple regression by using SPSS. There results show that most of the companies take their need of training extemporary way meanwhile other developed textile companies tailor their need for training and then execute with proper control to get the desired job performance from their employees.
The study concludes with a note that if companies choose true and appropriate training program in on-the-job or off-the-job method for their employees then it boasts dedication, job likeability, job security and job performance which adds to competencies and skills. The findings of this research also disclosed that training indicated a highly positive impact on job involvement than on employee job performance. Due to increase in job identification, commitment and loyalty, employees are more attached and satisfied with their jobs which results in job retention and effective job performance. Furthermore training enables the employees to cater their needs in facing the rapid advancement in technology, trends of competition and quality standards and it is also a significant role player in improving the employee job performance.
Employees' Readiness For Change: Effects of Organizational Commitment And Social Support at Workplace
mmitment And Social Support at Workplace
Development of organization is indispensable to encounter the changing requirements and competition. Change Management can aid organizations in bringing about change in their processes and people. People are considered considerably significant in the process of change, so their readiness for change matters a lot. This research probes the relationship of organizational commitment, social support and employees' readiness for proposed change.
The study was carried out in telecommunication sector of Pakistan. Data was collected through email and self-administered questionnaires. Correlation and regression were applied to check the hypotheses and to test the intensity of relationship among the variables. Results showed a significant relationship between organizational commitment and readiness of employees for change. Committed employees showed a high level of readiness for change. Social support delivered by peers at workplace is useful in building morale and reducing resistance for adapting the changed methods and procedures.
Social support significantly affects the change readiness. Response of one person may differ from that of other for the same change message and depends upon the cognitive structure of that person. Personality and culture are significant factors for change readiness. Problems related to readiness for change can be administered through a model called Five Message Component. Each component of this model can he analyzed and used for enhancing the degree of readiness for proposed change. There are many other factors which may influence the employees' readiness for change.
There is a need to study change agents, clarity of change message and initiation of change process. This study is groundwork for advance research to comprehensive level of generalization.
Impact of Leverage and Liquidity on Performance of Firms
The study is made to explore the impact of leverage and liquidity on the performance of firms. Liquidity and leverage are two of the most important pillars and on these pillars whole operations of the business stand. This research has attempted to establish a relationship between leverage and liquidity with the financial performance of firms operating in Pakistan. Some selected textile firms operating in Pakistan were selected as sample for the research.
The data of 76 textile firms was collected. The variables included in this research relating to leverage are as follows total debt to total asset ratio, short term debt to total asset ratio and long term debt to total asset ratio. Liquidity was calculated by using current ratio only. Size was included as control variable. Seven performance variables are used in this research like
ROE, ROA, and EPS etc. Descriptive, correlation and panel data analysis were made. Panel data test was applied to find regression between variables. The findings of this research were that low leverage ratios mean high performance as it is negatively associated with performance. Liquidity was significantly and positively related to the performance of textile firms. All the variables except stock price (SP) have positive and significant relationship with the leverage and liquidity of the textile firms. Stock price has no relation with the leverage of the firm while, positive and significant relation with the liquidity of the textile firms.
Government should take considerable steps in promoting investment and growth of textile sectors_ Management should formulate careful strategies relating to the decisions involved in the capital structure and liquidity. The similar research can be repeated by adding new variables and by changing the nature of study into exploratory research.
Investigating the Impact of Knowledge Management on Innovation: A Study of The Banks of Faisalabad
Banking industry is considered the most crucial financial intermediary in service sector in any state. The concept of knowledge management has been around for past many decades but its true potential has been realised in recent times. Despite of so much attention to this concept, its perfect description and explanation is still far from complete. As Knowledge Management (KM) practices have benefitted many business organizations from various industries, its adaptation to the banking institutions is still unrealised.
Ever growing global competition has introduced a new world order, 'Innovate or Die'. Constant innovation is an enormous challenge for modern organizations. Many of the organizations look for concepts and practices to enable themselves to develop and maintain sustainable competitive advantages over others. Knowledge management (KM) philosophy has gained importance in the business world as one of the critical enablers for innovation activities.
This study was conducted with the objective to investigate the impact of various dimensions of KM; knowledge acquisition, knowledge dissemination and responsiveness to knowledge on innovation in the banks of Faisalabad. The author used Structure equation modelling (SEM) technique to develop a model among three endogenous KM factors and one exogenous factor innovation and attempted to study this relationship with authentic empirical evidence and a firm belief that KM philosophy, if implemented in its true spirit, may improve the organization's ability to innovate and perform effectively.
One of the major findings of the study was the significant effect of all three dimension of KM on innovation. The empirical evidence acquired through test results of the Confirmatory Factor Analysis (CFA) and structural model showed that all factors support innovation activities but on a different proportion. The results of the study indicated that responsiveness to knowledge has the most favorable effect on innovation, in comparison to other dimensions of KM. Knowledge gives best results when it is shared and used purposefully. Knowledge must be put in use through processes, routines and systems to promote innovation. Innovation is a result of active use of knowledge and idle knowledge is of no help for innovation.
Impact of Workplace spirituality on Organizational Performance: Case Study of Pharmaceutical Distribution companies of Southern Punjab
The aim of the current study is to identify the impact workplace spirituality on organizational performance and how emotional intelligence and organizational culture mediate between this relationships. This study develops and integrates the above variables and tests the conceptual framework which predicts that organizational culture and emotional intelligence will act as mediating variables. For the better understanding of the mediation effect, the current study takes the important analysis steps.
Data were collected from the 625 medical representatives of the pharmaceutical distribution companies, by making stratas of Multinational and National distribution companies and by using the self-administered questionnaires. Data were analyzed through different techniques includes the normality, linearity, correlation analysis and the reliability test check the reliability of the data. In current study multiple regression analysis was conducted in order to check the mediation effect of both variables. Through regression analysis the direct and indirect effects were also checked. All hypothesized variables were supported in present empirical study.
The research findings have provided that workplace spirituality increase the overall performance of the organization. As spiritualit\ in the workplace increases the overall performance of employees of the organization, absence of these can reduces the performance of employees. Primary data were collected from the two cities of the southern Punjab including Multan and Bahawalpur. It would be highly appreciable to use the current study in the other sector or replicating this study in other firms or in a different geographical area.
The current study having the both academic and managerial implications, the limitation of the study and provides the further recommendations for the future studies.
Determinants of Technological and Administrative Innovations in Non-Profit Organizations
Non-profit Organizations (NPOs), distinct from the governmental and private organizations, are a main part of a country and society. Time has shown the importance of NPOs in a country. They not only affect the society, but also the economy. The changing conditions of the economy imply NPOs to innovate their structures, policies, rules and doings in order to survive better. For this innovation has always been a major characteristic of NPOs. Non-profits should understand the different factors that bring such innovations.
This study tries to analyse those factors which cause innovation and their effects on innovation. The study aims to explore the differential effects of structural, process and human factors on two types of innovations; administrative and technological.
A data set of 324 respondents from non-profit organizations has been collected through interviews with heads of the organizations and through self-administered questionnaires. The responses have been statistically analysed through regression analysis and correlation matrix through SPSS 16. The positive and negative impacts of the five independent variables upon two dependent variables have been analysed by these tests.
The results show that the factors that are favourable to technological innovations are almost the same as factors conducive to administrative innovations. Two variables; centralization and specialization are significant predictors'of administrative innovation and the same two factors plus transformational leadership are significant predictors of technological innovation. Based on these results, implications for the management of non-profits and future research suggestions have been recommended.
Impact of Service Quality & Trust on Repurchase Intention evidence From Selected Airlines of Pakistan
Retaining customers is very important for the future of many companies; this is even more the case in stagnating markets where service or product differences are minimal. This study attempts to investigate a few of directional paths in order to identify which factors can contribute in retaining customers in the industry. Objective of the study is to investigate the domains of the service quality, Trust, customer satisfaction, Brand image and WOM to identify the linkages among these variables and to establish and examine the causal relationship and effects or influences of these variables on each other.
This study aims to explore how organizations may retain customers by increasing repurchase intentions through different factors. Data of 500 respondents from international frequent flyer members of Pakistan International Airline and Shaheen Airline was collected by using self-administered questionnaire. Data was analysed through rigorous statistical technique to explore the nature of relationship among variables by examining construct validity and normality. To identify the extent of effects variables cast upon each other, the technique of Structural Equation Modeling (SEM) is applied through AMOS 20 yielding interesting insights about association among variables.
The research findings have provided support to conceptual framework showing both direct and indirect relationships among the variables thus endowing with quantitative model and insights. The study carries both academic and managerial implications, future direction and recommendations that can provide base for future studies.
Impact of Religiosity and Awareness of Islamic Banking on Selection of Islamic Banking
This study find the relationship between intrinsic, extrinsic religiosity and awareness About Islamic banking with selection of Islamic banking awareness selection of Islamic banking. The objective is tofind out that is there positive relationship between religiosity and selection of Islamic banking, also is there any positive relationship between awareness of Islamic banking and selection of Islamic banking.
To conduct this research a survey is conducted through a questionnaire through a modified questionnaire developed after having literature review. This survey used sample of 500 respondents who are in capacity to make contract with bank. Data collected from the survey is filtered, screened out for outliers. Normality, linearity, Multicollinearity test and Heteroscedasticity tests applied to check appropriateness of data to run regression analysis. Multiple regression is tested on the model.
Results show that most of the account holders are males by gender, employees by profession and want to deal with Islamic banks but currently mostly have conventional banking account. Intrinsic religiosity is high among the participants in comparison to other independent variable extrinsic religiosity and awareness of Islamic banking. The study reveals that extrinsic religiosity is very low among the participants and awareness of Islamic banking exist but at a low level. Research conclude that it is intrinsic religiosity which impact the most for selection of Islamic banking, banking customers in Pakistan have a low level of awareness of Islamic banking that's why they prefer Islamic banking but don't deal with Islamic banks.
It is recommended that Islamic banks of Pakistan must put their resources to improve the level of awareness of banking customers of Pakistan and develop programs for awareness campaigns to make all the potential customers into active customers of Islamic banking.