International Journal of Academic Research in Economics and Management Sciences

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Volume 6, Issue 1 (January, 2017)

Role of Social Networks in University Based Business Incubators in Promoting Entrepreneurship Growth in Kenya
Author(s): Kevin Wachira, Patrick Ngugi, Romanus Odhiambo Otieno      Pages: [1-14]
Abstract

Entrepreneurs are widely recognized as the prime movers of economic development; the people who translate ideas into action. The government of Kenya has initiated numerous programs and policies to support entrepreneurship growth in Kenya. For instance, it has undertaken policy reviews that have led to reduction of the required licenses to start and operate a business. It has initiated several monetary funds to assist entrepreneurs, particularly youth and women, obtain financing for their enterprises i.e. the Youth Enterprise Fund, Women Enterprise Fund and Uwezo Fund. Private sector players such as commercial Banks, Non-Governmental Organizations (NGOs), Microfinance Institutions (MFIs) and Savings and Credit Co-operatives Societies (SACCOs) among others have also come up with formal financial support schemes for entrepreneurs. However the start- up failure rate is still very high and the desired growth levels are yet to be achieved. Consequently some scholars and policy makers have turned to business incubators and particularly university based business incubators as a possible boost to entrepreneurship growth through nurturing start-ups. A major area in the operation of an incubator is the social networks created among incuatees themselves and other external parties outside of the incubator. Literature reviewed indicates that incubators play the role of networking facilitator. This study aimed to find out the role of social networks in university based business incubators on entrepreneurship growth in Kenya. The six active university based business incubators in Kenya were investigated with a specific focus on all the fifty nine graduated incubatees from the said incubators. Census technique was used given that the total number of all graduated incubatees (59) could be adequately studied. The study used a semi structured questionnaire as the main tool of data collection. A combination of tools was used to analyze the data because whereas some aspects of the study were qualitative others were of a quantitative nature. Quantitative data was analyzed using Statistical Package for Social Sciences (SPSS) Version 21 software through descriptive statistics; measures of central tendency (mean and mode), measures of dispersion (standard deviation and variance) and inferential statistics. Thematic analysis was used for qualitative data. The study found out that social networks have a significant positive effect on entrepreneurship growth. An improvement in social networks would lead to an 81% improvement on entrepreneurship growth. The study recommends that in order to create wider social networks for incubatees, university based business incubators need to reach out more to industry players and the already successful entrepreneurs.

Keywords

Business incubation, University based business incubator, Social network, Entrepreneurship growth

Full Text :PDF DOI: 10.6007/IJAREMS/v6-i1/2558
Workplace Bullying as a Predictor of Intention to Leave among Workers at the Industrial Organizations in Jordan
Author(s): Bahjat Eid Al- Jawazneh, Ziad Moh'd. Ali Smadi      Pages: [15-39]
Abstract

The major purpose of this study is to find out if workplace bullying can be a predictor to the intention to leave at industrial companies in one of the most important industrial estates in Jordan, which is the Alhasan industrial Estate. The study employed the descriptive and analytical methodologies in order to arrive at sufficient answers for its main problem. Primary data of the study came from a questionnaire which was designed for said purpose, and workplace bullying was measured using two sub-scales, namely work-related bullying and person-related bullying. The Negative Acts Questionnaire (NAQ) of Einarsen et al. (2001) and Einarsen and Raknes (1997) was adopted. With regard to the intention to leave items, researchers utilized the studies of Glambek et al. (2014) and Djurkovic et al. (2008). Questionnaires were distributed to 34 industrial companies. The major findings of this study are as follows: The level of presence of work-related bullying at the industrial organization in Jordan is high, while person-related bullying is medium and workplace bullying predicts only 6.7% of the intention to leave among the respondents of the study.

Keywords

Workplace Bullying, Intention to Leave, Industrial Organizations, Jordan

Full Text :PDF DOI: 10.6007/IJAREMS/v6-i1/2559
The Effect of Business Cycles' Fluctuations on Bank Profitability: The Case Study on Iran Melli Bank (1992-2014)
Author(s): Rafik Nazarian, Azade Mehrabian, Brjang Moradi, Leila Sedighikamal      Pages: [40-51]
Abstract

Regarding the analysis and stability of both fiscal and banking sectors, the link between business cycles’ fluctuations and banks’ profitability has been highly underscored up to this point. Macroeconomics conditions can impact banks’ performance, thereby they are possible to affect other economic sectors too. The present paper, based on Arellano and Bond (1991) GMM model, examines the impact of macroeconomic variables on Iran Melli Bank’s profitability. Paper’s respective data were extracted from Iran Melli Bank’s balance sheets and Iranian Central Bank temporal series data for the period of 1992-2014. Research findings demonstrate that there is a significant relation between business cycles’ fluctuations and Iran Melli Bank’s profitability, accordingly, in addition to downsizing itself for gaining more profits, it should consider investment and and the quality of its production for recession era and also improve its state of liquidity for the boom period.

Keywords

Business Cycles, Bank Profitability, GMM (Generalised Method of Moments)

Full Text :PDF DOI: 10.6007/IJAREMS/v6-i1/2560
Organizational Commitment of the Employees of the Ports Security Affairs of the State of Kuwait: The Impact of Human Recourses Management Practices
Author(s): Sulieman Ibraheem Shelash Al- Hawary, Hamad Mohammad Ali Alajmi      Pages: [52-78]
Abstract

The aim of the study was to explore the impact of human resource management practices on organizational commitment of the Ports Security Affairs of the State of Kuwait. The HRM practices applied in this study were human resource planning, recruitment and selection, rewards and incentives, training and development, and performance appraisal. Organizational commitment dimensions used in this study were affective commitment, normative commitment and continuance commitment. All managerial employees working in the Ports Security Affairs of Kuwait were included in the study sample. A questionnaire-based survey was used to collect data. In order to test study hypotheses, relevant statistical procedures were used. The result showed an average rate of HRM practices adoption. The significant impact of HRM practices (human resource planning, recruitment and selection, rewards and incentives, and performance appraisal) on organizational commitment were supported. Consequently, the research recommends keeping an eye on employees’ positive interaction while performing job tasks as well as their participation in decision making and making organization’s public policy.

Keywords

HRM Practices, Organizational Commitment, the Ports Security Affairs, Kuwait.

Full Text :PDF DOI: 10.6007/IJAREMS/v6-i1/2570
The Relationship between Establishment of Knowledge Management and Self-efficacy among Principals of Boys' State High Schools in Tehran
Author(s): Alireza Chenari, Reza Rafati, Ali Asghar Mogaveri, Akram Dehbashi      Pages: [79-92]
Abstract

The present study aims to investigate the potential relationship between the establishment of knowledge management and the self-efficacy among the principals of boys' state high schools in Tehran. This study was conducted within a descriptive framework through correlations and the statistical population included the principals of boys' state High schools in Tehran (204 individuals). From the mentioned population, 140 individuals were selected for this study based on Morgan's sample size table and through cluster and stratified sampling methods. The instruments used for this study included two researcher-made questionnaires which aimed to investigated self-efficacy and meta-cognition. The validity of the questionnaires was evaluated and confirmed through investigating theoretical principles as well as the comments provided by the experts and professors in the field and the reliability of the questionnaires was obtained though a pilot study. The data were analyzed by SPSS.16 through Pearson correlation coefficient as well as multiple regression and one-way ANOVA. The results of the data analysis revealed a significant relationship between establishment of knowledge management and self-efficacy among the principals. The results also indicated that there is a significant relationship between knowledge management elements and self-efficacy. Multiple regression was used for examining the predicting power of independent variables for dependent variables. According to the findings, organizing the specialized working teams could be mentioned as the most effective factor for improving the self-efficacy among the school principals. The potential implications and recommendations for the future studies are discusses in the last section.

Keywords

Knowledge Management, Self-Efficacy, Principals

Full Text :PDF DOI: 10.6007/IJAREMS/v6-i1/2571
Organizational Culture and Business Performance: An Empirical Investigation in the Pakistani Context
Author(s): Waheed Ali Umrani, Syed Mir Muhammad Shah, Pervaiz Ahmed Memon, Altaf Hussain Samo      Pages: [93-107]
Abstract

This study investigates the postulated relationship between organizational culture and business performance in the banking sector in Pakistan. The necessity of the assessment of this relationship is driven on the basis of the past literature. For the present inquiry, using the survey method a total number of 265 questionnaires were received from middle managers in the big five banks in Pakistan. The population was drawn using stratified random sampling technique. The Smart-PLS 3.0 was used for data analysis due to its increasing popularity in presenting authentic calculations. The reporting of the results is based on Smart-PLS standards that is followed by two-step approach: first the assessment of reliability and validity is conducted using measurement model and secondly assessment of hypothesed relationship is done using structural model. This study underlines that organizational culture has significant relationship with business performance in the banking industry in Pakistan. In the last section the insights on future research are provided.

Keywords

Business Performance; Organizational Culture; Banks, Pakistan

Full Text :PDF DOI: 10.6007/IJAREMS/v6-i1/2575
Abstract

Stock markets are considered as a measure of the economy, in which the condition of the stock exchange indicates the general development of the production sector. Nowadays, the importance of the stock exchange market is regarded among the most important financial tools, especially on the light of the Globalization and the new world order. Economists consider the exchanges as a mirror which reflects the reality of the conditions of the listed firms. While those exchanges had been the source of wealth for some investors, they had been the source of misery and bankruptcy of others, which can be ascribed to the high volatility at those exchanges (Esam, 2007). Organized Stock markets play a vital role in the recruitment of resources and savings, and their investment, as well as the role they play in the development of economy, and their contribution to attracting foreign and local investments. It can be said also that the success of economic reform programs depends on the presence of an active stock market, which extends and develops the exchange of stocks within an organized market.

Keywords

Stock Exchange, Indicators, Turnover Ratio

Full Text :PDF DOI: 10.6007/IJAREMS/v6-i1/2582
Abstract

This study sought to evaluate the effect of job design on labor mobility intentions of teaching personnel in Teachers Service Commission (TSC) Tertiary Institutions in Kenya. The limitation was that one factor was researched on hence not fully representative. Beneficiaries were government, other scholars, TSC and school managers. This study adopted descriptive research design. The target population was from all the TSC teachers in the TSC Tertiary institutions in Kenya. The study did stratified random sampling of institutions, 356 sample size was used. Questionnaires collected data. Questionnaires collected data. A pilot study of 36questionnaires was done to determine reliability and validity which was verified when all variables had a Cronbach Alpha of 0.7 and above while the content validity of the instrument was determined by seeking credible opinion of the study supervisors. Descriptive and inferential statistics were used and reporting was done through tables and figures. The response rate was 80%. The results revealed a significant negative relationship between job design and labour mobility intentions. The study encourages scholars to use same variable or more to test results in different industries. It also recommended that Kenyan government addresses some of the issues highlighted to ensure a motivated workforce to attract and retain more teaching personnel who will not desire to quit.

Keywords

Job design, Labour mobility intentions, Teacher Service Commission (TSC), Tertiary institutions

Full Text :PDF DOI: 10.6007/IJAREMS/v6-i1/2584
Impact of Fluctuations in the Prices of Crude Oil on Inflation: Evidence from Jordanian Economy
Author(s): Ghaith N. Al-Eitan, Hussein Ali Al-Zeaud      Pages: [134-145]
Abstract

Inflation remains a major and lasting challenge for the economies of most countries in the world, because of its undesirable effects on economic units. The research aims mainly to study and analyze the impact of fluctuations in the prices of crude oil on inflation in the Jordanian economy. The researchers collect financial data for the period from 1/1/2000 until 31/12/2013 on a monthly basis. The study shows that the inflation rate in the Jordanian economy is not much affected by fluctuations taking place in crude oil prices and gold prices. The results show that the effect after the global financial crisis began in the relationship between the growth of oil prices and gold prices and inflation. This result may be attributable to changes in domestic and international investment environment. The study recommends studying other factors that affect the inflation rate in the Jordanian economy, such as interest rates.

Keywords

Inflation, Gold price, Oil Price

Full Text :PDF DOI: 10.6007/IJAREMS/v6-i1/2594
The Relationship between Strategic Capabilities and Competitive Performance: The Moderating Role of Internal Cooperation
Author(s): Mehmet SEYHAN, Sibel AYAS, Umit SONMEZ, Ozlem YASAR UGURLU      Pages: [146-161]
Abstract

This study aims to explore the relationship between strategic capabilities and competitive performance and the moderating effect of internal cooperation on this relationship for the machine made carpet manufacturers operating in Turkey. As a result of analyses of 206 questionnaires collected from top and mid-level managers of machine-made carpet manufacturers which are operating in Turkey, it has been observed that marketing capabilities, market-linking capabilities, information technology capabilities and management related capabilities as dimensions of strategic capabilities have a positive effect on competitive performance. Besides, internal cooperation has moderate only the relationship between management related capabilities and competitive performance. Theoretical and practical implications are discussed.

Keywords

Strategic Capabilities, Internal Cooperation, Competitive Performance

Full Text :PDF DOI: 10.6007/IJAREMS/v6-i1/2603
Abstract

The current research paper was designed to explore the extent of benchmarking culture in industrial companies and its impact on operational performance. A total of 30 dimensions of benchmarking culture were figured out from the literature. Out of them 10 were regarded as common values among employees based on descriptive statistics. A sample consisted of 50 industrial companies was drawn randomly from Amman and Irbid. A questionnaire-based survey was conducted to collect data from employees working at these companies. Of the 315 questionnaires distributed to employees, 227 were returned complete and valid. The results indicated that all dimensions of benchmarking culture (prior benchmarking experience behavior of internal analysis behavior of external analysis continuous improvement mentality share of internal opinions searching for internal best practices comparison with a market leader quality policy communication organizational learning team development) had significant and positive influences on operational performance of industrial companies in Jordan. Hence, it was concluded that benchmarking culture play an important role in performance improvement. Therefore, Jordanian organizations, particularly industrial companies, are called to consider benchmarking culture in their way to improve organizational performance.

Keywords

Benchmarking Culture, Operational Performance, Industrial Companies

Full Text :PDF DOI: 10.6007/IJAREMS/v6-i1/2608
The Effect of Information Asymmetry and Environmental Uncertainty on Earnings Management Practices among Malaysian Technology-Based Firms
Author(s): Erlane K Ghani, Nur ‘Afifah Mohd Azemi, Evita Puspitasari      Pages: [178-189]
Abstract

This study examines the factors influencing firms to practice earnings management. Specifically, this study examines the effect of information asymmetry and environmental uncertainty on earnings management practices among technology-based firms listed in Bursa Malaysia. Using the annual reports of 83 firms over a period of two years from 2011 to 2012, this study found no significant relationship between information asymmetry and uncertainty environment on the occurrences of earnings management among the firms. Such results indicate that these two factors are not important factors for decision-making. The findings in this study contribute to the users of financial reports particularly the stakeholders in defining the determinants of earnings management practices among firms when it comes to decision-making.

Keywords

Information Asymmetry, Environmental Uncertainty, Technology-Based Firms, Malaysia.

Full Text :PDF DOI: 10.6007/IJAREMS/v6-i1/2617
New Continuum of Banking Quality Services and Customer Retention
Author(s): Zahra Idrees, Xia Xinping      Pages: [190-201]
Abstract

Nowadays, with the increased competition, service quality has become a popular area of academic research and has been acknowledged as an observant competitive advantage and supporting satisfying relationships with customers. So, this research paper empirically examined New Continuum of service quality and customer switching behavior and especially for service provider i.e., the Banking service provider. Respondents would be the users of a bank. Sample size of this research study is 500. The positivist research philosophy approached is used as the structured questioner was developed and distributed for the data collection. Personal administrated questionnaire was distributed and collect the questionnaire from them. Data analysis is divided into two categories; one is the Descriptive analysis and second is the inferential analysis. So, firstly, we analyzed the Demographic, Normality, Reliability, descriptive and correlation discussed. Secondly, Regression analysis and role of moderation is checked. Keeping into account the results of this study, it is confirmed that there is a positive relationship between service qualities with all its dimensions with customer retention as guided by the literature. Result of this relationship indicate that the improvement in the service quality significantly enhances the customer retention which is also evident in the literature which has redundantly shown that the service quality is the prime factor in the retention of the customers of any product. This result confirms that the service quality in the banking sector of Pakistan is also an important element towards the keeping the customers to the service provider company.

Keywords

Service quality, Banking Industry, Customer Retention

Full Text :PDF DOI: 10.6007/IJAREMS/v6-i1/2618
Abstract

This research study is to find out the moderating impact of customer’s relationship characteristics with each service quality dimension (Tangibility, Reliability, Responsiveness, Assurance, and Empathy) and customer retention, Respondents would be the users of a bank. Sample size of this research study is 500. The positivist research philosophy approached is used as the structured questioner was developed and distributed for the data collection. Personal administrated questionnaire was distributed and collect the questionnaire from them. Result showed that all service quality dimensions are also studies differently to test the customer relationship characteristics moderating role. The findings have shown that every dimension of service quality has significant positive relationship with customer retention in presence of customer relationship characteristics. Customer relationship characteristics is also tested as moderators with service quality (tangibility, reliability, responsiveness, assurance and empathy) and found significant.

Keywords

Tangibility, Reliability, Responsiveness, Assurance, Empathy

Full Text :PDF DOI: 10.6007/IJAREMS/v6-i1/2623
Abstract

In 2010, a government –owned bank (hereinafter referred to bank XYZ) initialized IPO and become the very first government-owned bank that go public. With this initiative, bank XYZ sees the necessary to transform not only their system, but also their values and talents to support their business growth. The need to transform push bank XYZ to understand what factor that affecting their performance. With this very reason, researcher conduct a research to measure performance based on HCM factor and corporate values factor in bank XYZ. Researcher conducts interview and questionnaire to gather the data with total sample of 150 employees. The data collected was measured by using partial least square (PLS) and the result is contradictive with general theory of human capital management where HCM supposed to be affecting performance positively, further explanation will be discussed in analysis result. With the affection of 21.7%, there is still 78.3% other factor that still unexposed or unknown by researcher.

Keywords

Human capital management, corporate values, corporate performance, state-owned bank, PLS

Full Text :PDF DOI: 10.6007/IJAREMS/v6-i1/2653
Analysis and Recommendation of Employee Engagement in PT. TI Indonesia
Author(s): Dematria Pringgabayu, Darwis Agustriyana      Pages: [241-257]
Abstract

Danone entered Indonesia for the first time, in 1998 when joined with PT. TI which produces water. The brands under PT. TI are Aqua, Mizone, and VIT. To prepare future leaders in key positions from internal and also to increase company branding for the fresh graduates, PT. TI is design Management Trainee under the Danone Group Indonesia. Management Trainee is an accelerated career program which contained to have value and culture same as the company, so the candidate can bring the company to the appropriate business. Management Trainee PT. TI begin from 2010. Over Management Trainee program, the HR division that serves to regulate the process of Management Trainee PT. TI is experiencing problem that is lacking of employee engagement, the detail are: there is a gap between the expectations of the company with the reality on the number of trainees who endure, the large number trainees who resign in Management Trainee program, and the impact of the resign trainees in the process of completion Management Trainee causes improvement projects unfinished and could hamper the development of the company. This research use qualitative method to find the root cause from these problem with using standardize open ended interview to employee of PT. TI who was recruited by the Management Trainee program and has been work at least 2 years. Standardize open ended interview has structured in term of the wording of the questions, always asked identical question, but the responses are open-ended. The result of interview uses coding method to analysis the root cause. Coding is a method to classify the information from all respondents with the same variable, then going into the parameters that have been determined. After coding, it show factors that make employee didn’t engage in the company, there are: uneven rotation method, lack of compensation given, and uneven knowledge mentor to the mentoring process Therefore, this research suggest to PT. TI to rotate trainees during the MT program, change the structure of compensation, and create mentoring workshop. Within applying these suggestions is expected the trainees more engage to the company. So, the company’s goal to prepare the future leaders from the internal through Management Trainee program can be achieved.

Keywords

Employee Engagement, Management Trainee Program.

Full Text :PDF DOI: 10.6007/IJAREMS/v6-i1/2693
Training Programs and their effect on the employees Performance at King Hussain Bin Talal Development Area at Al - Mafraq Governate in Jordan
Author(s): Sulieman Ibraheem Shelash Al-Hawary, Zaid Habas al-Kumait      Pages: [258-274]
Abstract

The study aimed to identify the training programs and their impact on the employees' performance of industrial companies in the Mafraq development area, the study population comprised all Jordanian employees in the industrial sector in the development area in Mafraq totaling 520 employees. Jordanian employees of King Hussain Bin Talal Development Area at Al - Mafraq Governate mounted (230) who got training programs during their work, because the study population is small in number, the researchers considered all the employees.176 questionnaires returned usable for statistics. To achieve the objectives of the study, the researchers designed a questionnaires which was distributed to Jordanian employees of King Hussain Bin Talal Development Area at Al - Mafraq Governate mounted (230), who got training programs during their work, because the study population is small in number, the researchers considered all the employees, after reviewing the questionnaires found (176) valid questionnaires for statistical analysis. Then, the researchers conduct statistical analysis by (SPSS version 21). The researchers found that industrial companies have an average interest in training programs, they also found a statistical significant impact of the training needs determination and training process evaluation on the employees' performance, and no statistical significant impact for the training programs design on employees' performance. Finally, the researchers recommend decision makers and managers of the industrial companies to increase interest in the training programs to raise the morale of employees, and benefit from their higher performance.

Keywords

Training Programs, Employees' Performance, Industrial Sector, Development Area. Jordan

Full Text :PDF DOI: 10.6007/IJAREMS/v6-i1/2711
Corporate Social Responsibility: The Misty Concept
Author(s): Tafer Zoheir, Abbar Mohamed      Pages: [275-285]
Abstract

For decades now, there has been a certain type of conformism, in the sense that as soon as a concept is invented by a reputed organism or by a powerful state, it’s taken over by everyone and everyone embellishes it in its own way. Translating concepts from one language to another may seem trivial, but we often risks missing key elements, and with regard to economic concepts, we often neglect the spatial and temporal context relative to the appearance of this or that notion, and it is mistakenly believed that such a word has the same meaning in all languages. The consequence of this can be very dangerous because, in addition to misunderstanding, this can lead to poor application and the remedy that is recommended to reduce the effects of an evil, reinforce them even more. In this paper, we will try to describe a major concept in development economics that is of Corporate Social Responsibility and demonstrate, by etymological analysis and by conclusions drawn from the literature that addressed the subject that this term was poorly translated from English into other languages (especially French and Arabic), and thus it is misunderstood and sometimes misused by companies to deceive consumers and public opinions by a practice called “Greenwashing”: to realize more profits, by making them believe to a pseudo responsibility towards the environment and society.

Keywords

Corporate, Organization, Enterprise, Social, Societal, Responsibility, ISO 26000, Greenwashing.

Full Text :PDF DOI: 10.6007/IJAREMS/v6-i1/2712