Articles
The effect of talent management and emotional intelligence on organizational performance: Applied study on pharmaceutical industry in Jordan
DOI: https://doi.org/10.24052/JBRMR/V13IS01/ART-01
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This paper studies the impact of talent management on organizational performance in Jordanian pharmaceutical companies and evaluates the mediating role of emotional intelligence in the relationship between talent management and organizational performance. A survey was distributed among managers of pharmaceutical companies in Jordan, and 1125 responses were collected. The respondent sample was constructed using random stratified sampling. The PLS-SEM was used to test the hypothesized relationships of the model. The study result revealed positive relationships between (1) talent management and organizational performance, (2) talent management and emotional intelligence, and (3) emotional intelligence and organizational performance. Employing PLS path modelling to evaluate the structural model is highly original. The paper emphasizes the importance of emotional intelligence as a mediator of the relationship between talent management and organizational performance in the pharmaceutical industry of Jordan.
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Factors that influence Malay students in purchasing skincare products in Malaysia
DOI: https://doi.org/10.24052/JBRMR/V13IS01/ART-02
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Skincare products have had a huge impact on the skin of users either positively or negatively. Most people are becoming more concerned about the harmful effects of chemicals used in skincare products. In Malaysia, most of the users are Malays who are generally Muslims. As Muslims, they use Halal products that are free of porcine or animal substances that are not being processed according to Islamic principles. Hence, this study aims to explore the main factors which are taken into consideration when Malay students purchase skincare products. A total of 100 questionnaires were distributed to Malay students in Kuala Lumpur, Malaysia to gain feedback on the factors that influenced them to buy skincare products. The findings show that most Malay students considered Halal, product safety, brand, price and quality as being the most important factors when purchasing skincare products. This paper highlights that most Malay university students in Malaysia preferred to purchase skincare products that are Halal, safe, of high quality and reputable brands. They were even willing to pay more for high quality skincare products that fulfil the above criteria. Thus, the findings of this study have an implication on appropriate marketing strategies to be implemented for future skincare products to boost sales and profits in the Malaysian market.
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Antecedents towards employees’ harmonious habitation of the environment and workplace environment-friendly behaviour: a case of Johannesburg employees within small and medium enterprises (SMES)
DOI: https://doi.org/10.24052/JBRMR/V13IS01/ART-03
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Despite the increasing research on green issues within the workplace environment, there is a dearth of studies that have investigated the impact that elements of green intellectual capital and green transformational leadership have on the harmonious habitation of the environment and workplace environment-friendly behaviour. Therefore, this study examines the relationships using a data set of 150 employees working with SMEs in Gauteng Province of South Africa. Seven research hypotheses were postulated, and the hypotheses were empirically tested using sample data from the SME sector in South Africa’s Gauteng Province. The collected data was analysed by means of Structural Equation Modelling using Partial Least Squares. The results indicated that the relationship between green human capital, green structural capital, green relational capital, green transformation leadership and employees’ harmonious habitation of the environment is positive in a significant way. However, green transformation leadership emerged to have a negative and an insignificant impact on workplace environment friendly behavior. Lastly the findings suggested that employees’ harmonious habitation of the environment has a positive and a significant impact on workplace environment friendly behavior. The research paper discusses both academic and managerial implications of the results and future research directions are suggested.
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Is service fairness influencing customers’ satisfaction and intention to pay insurance premium? A case in BPJS Kesehatan Indonesia
DOI: https://doi.org/10.24052/JBRMR/V13IS01/ART-04
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This study discusses the importance of service fairness variables – Interactional Fairness, Procedural Fairness, and Distributive Fairness – toward customer satisfaction, which further leads to customer intention to pay. There is limited previous empirical research on the effect of service fairness to service delivery, particularly in the healthcare industry. The authors hypothesised that there was a positive influence from three variables of service fairness, from customer satisfaction, to customer satisfaction, to intention to pay. Using the descriptive quantitative method, this pilot study was conducted to review the service delivery of BPJS Kesehatan service providers in various cities in Indonesia, with BPJS Kesehatan members as respondents. Data analysis was analysed with PLS-SEM with SmartPLS software. The study showed that there was a positive impact of Interactional Fairness and Distributive Fairness on customer satisfaction, and customer satisfaction on intention to pay. However, this study failed to show the relationship between Procedural Fairness to customer satisfaction. This study strengthens the building evidence of service fairness to customer satisfaction, specifically in-service delivery and in healthcare industry.
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Integrated marketing communication model for creating brand loyalty to Japanese cars in Thailand
DOI: https://doi.org/10.24052/JBRMR/V13IS01/ART-05
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Thailand automobile market has experienced growth for several years due to worldwide economic growth. The proposed policies present great opportunities for Japanese car companies who have such technologies and willing to invest in an emerging markets region. This research aimed to find the integrated marketing communication model for creating brand loyalty to Japanese cars in Thailand. The quantitative data was collected via questionnaire survey to 460 Japanese car customers in Thailand. The sampling method used the simple random sampling at the department of Land Transport, Bangkok, Thailand. The descriptive statistics applied in this research consist of mean average, percentage and frequency, whereas inferential statistics consisted of confirmatory factor analysis, path analysis and Structural Equation Modeling. The study found that the integrated marketing communication model for creating brand loyalty to Japanese cars in Thailand consisted of car factors, customer psychological factors, integrated marketing communication tools, and brand loyalty. The constructed model developed by this research is consistent with the empirical data and showed the ability to predict value perception to an acceptable degree with a multiple correlation’s squares ( of 87 %, GFI = 0.96, AGFI = 0.93, Chi-Square = 114.91, DF = 94, P-Value = 0.089, and RMSEA = 0.022. These finding were achieved through better understanding and addressing the Japanese car producer on integrated marketing communication model for creating brand loyalty in Thailand. The practical implication model has been suggested in this paper
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Burnout, Organizational Commitment and Turnover Intention
DOI: https://doi.org/10.24052/JBRMR/V13IS01/ART-06
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The purpose of this study is to examine the effect of burnout and organizational commitment on turnover intentions. The respondents in this study were auditors of the Audit Board of Republic of Indonesia (BPK) and The Finance and Development Supervisory Agency (BPKP). This study used convenience sampling method; the number of samples used in this study amounted to 326 auditors, consisting of 194 BPK auditors and 132 BPKP auditors. The methods used in data collection were the primary method of data collection, using questionnaires filled out directly by the survey respondents, while the data processing methods used was multiple linear regressions analysis. The result showed that burnout had positive effect on auditor turnover intention and organizational commitment had negative effect on auditor turnover intention.
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The effect of good corporate governance on financial performance and net working capital turnover as a mediation variable: evidence from Indonesia Stock Exchange (IDX)
DOI: https://doi.org/10.24052/JBRMR/V13IS01/ART-07
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The purpose of this study is to test empirically and analyze the relationship of good corporate governance principles in proxies with total institutional shareholdings (INSTITUSI), number of commissioners (KOMISARIS), number of joint meetings of board of commissioners (RAPAT), and number of company committees (KOMITE) against Return on equity (ROE) and analyze the role of mediating the concept of net working capital turnover (NWCT). This research was conducted in Indonesia Stock Exchange period (2010-2014) at manufacturing companies. The calculation of total samples obtained is 185 samples of company data (for 5 years) in the manufacturing period (2010-2014). After evaluating the outlier data, there are seventeen (17) outlier data issued based on outlier evaluation, the number of samples from 185 to 168 data.
In general, there are three main results of the study. First, the results show that INSTITUSI, RAPAT, and KOMITE have a significant positive effect on NWCT; only KOMISARIS variable is not proven. Second, based on the result of research, INSTITUSI, KOMITE and NWCT variables have a significant positive effect on ROE, while RAPAT and KOMISARIS are not proven. Thirdly, based on the result of mediation test by using Sobel test result, only NWCT is proven to mediate RAPAT relation to ROE, while in the other variables, mediations are not proven.
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The effects of an IT-related curriculum based on hybrid-style problem-based learning on career decision-making self-efficacy of women’s University students in Korea
DOI: https://doi.org/10.24052/JBRMR/V13IS01/ART-08
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The unemployment of university students has been emerging as a significant social issue in South Korea, making it more necessary for students to have the attitude and confidence needed to explore their future options. This study examines whether women’s university students are actively committed to making decisions and having confidence in their career choices when applying Problem-Based Learning (PBL) to the Information Technology Curriculum. For the design of this study, two women’s universities were selected: group A consisted of ‘A University’ students given hybrid-style PBL and group B consisted of ‘B University’ students given traditional lectures and practices. A Nonequivalent Control Group Pretest-Posttest Design was used to analyze the experimental group and the control group with pretest questionnaires at the beginning of a semester and posttest questionnaires at the end of the semester.
The study results confirmed that PBL improves the Career Decision Making Self-Efficacy of women’s university students in giving them confidence in their ability to collect career information, awareness of career objectives, belief in planning and doing, and self-assessment for choosing suitable careers for themselves. This study suggests that more problem-based learning curricula need to apply PBL to future IT-related curricula to help students make their own career decisions.
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Are cooperative relationships a viable option for accessing resources for female informal traders in South Africa?
DOI: https://doi.org/10.24052/JBRMR/V13IS01/ART-09
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Even though the number of female-owned businesses is rising at a fast rate, in emerging and developing markets they tend to operate in the informal sector concentrated in less attractive survivalist businesses. This study investigates the use of cooperative relationships (CRs) to improve the sustainability of female-owned informal retail businesses. It is important because women account for about 70% of the world’s poor and yet are more likely to use a higher proportion of their income on the wellbeing of their families. To investigate the use of and the factors that influence CRs amongst female informal traders, a convenience sample of 173 informal female traders was surveyed. Data analysis was done using Pearson Product-moment correlation. The findings show that CRs of most female informal traders focused on financial security, social and spiritual wellbeing of the respondents and their families. CRs with family and other traders were common but the latter were more widespread and perceived to be more beneficial to the business than the former in facilitating access to diverse business resources. The study concluded that the implementation of formal support for traders’ CRs could contribute to business sustainability through improved access to resources.
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Consumer purchase regret: how personality influences outcome regret and process regret
DOI: https://doi.org/10.24052/JBRMR/V13IS01/ART-10
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Consumers will evaluate the products they have purchased, whether the product meets their need. The discrepancy between what they want and what they have purchased may lead consumers in purchase regret. Personality plays an important role in determining of consumer purchase regret. The aims of this study are to investigate personality influences toward consumer post purchase regret. This study was quantitative and involved 207 undergraduate students at state University in Medan, Indonesia. The statistical analysis showed that Big Five personality traits; extraversion, agreeableness, conscientiousness, neuroticism, and openness to experience were related to post purchase regret, even outcome regret or process regret. The result confirms that anticipated regret is proved to lead to increased levels of effort, when consumer executes his/her behavioural intentions. Behavioural intentions are more likely to motivate and energize the target behaviour when they embodied with anticipated regret. These findings indicate that it is important for managers to focus on the antecedents of regret and to mitigate its consequences.
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The impact of financial accessibility constraints and government regulations on the organisational performance of small-and-medium-sized enterprises
DOI: https://doi.org/10.24052/JBRMR/V13IS01/ART-11
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This paper seeks to investigate the impact of financial accessibility constraints and government regulations on organisational performance of small and medium-sized enterprises (SME). On the basis of a literature review covering works specialising in financial accessibility constraints, government regulations and organisational performance, a quantitative study was carried out in Jordan using a sample composed by 291 Jordanian SMEs. Information was gathered by applying surveys addressed to the heads of accounting departments / financial managers in SMEs. The data collected using the questionnaire shows 159 usable questionnaires were received, which gives 54.6% response rate. The findings reveal that financial accessibility constraints negatively influence organisational performance, while government regulations are not significantly linked with organisational performance. In order to reduce the negative impact of financial accessibility constraints on SMEs performance, the government of Jordan and financial institutions should facilitate access to finance for SMEs as a critical factor influencing their performance. Further, the government of Jordan must legislate new regulations to improve performance and continue removing unnecessary burdens that may effect SMEs. Through study outcomes, the interested bodies including the government of Jordan, financial institutions, to name a few, could be assisted in formulating the policies associated with SMEs that are evidence-based. Aside from adding important knowledge to the body of the organisational performance of SMEs, this study can be a starting point for further investigation and analysis of organisational performance among SMEs.
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Determining shopping malls customers’ satisfaction and loyalty
DOI: https://doi.org/10.24052/JBRMR/V13IS01/ART-12
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The shopping mall retailers are operating in a highly competitive retail environment which requires effective management in order to satisfy the customers and achieve customers’ loyalty. The primary purpose of this paper was to determine the satisfaction and loyalty among shopping mall customers about the shopping malls. Secondly, this study aimed to determine whether statistically significant differences exist between the means of the shopping mall customers considering their age groups and gender. A quantitative research approach was followed to achieve research objectives. Self-administered questionnaires were used during data collection at the Kolonnade Shopping Centre in Gauteng Province, South Africa. Descriptive statistics and parametric tests, in the form of independent samples t-tests and One-way ANOVAs, were used to determine significant differences between different age groups. SPSS Version 23 software was used for analysing quantitative data. Internal consistency reliability of the measurement scales measuring shopping mall customers’ shopping motives were assessed by calculating Cronbach’s alpha values. The results of the study uncovered that the satisfaction level amongst the shopping mall customers tend to be high. The results further provided an important understanding of the relationship of demographics (age and gender) on customers’ satisfaction levels and loyalty at the shopping mall. This study contributes to the current literature and provides valuable information to retailers and shopping mall developers in general, with regard to marketing communications and marketing strategies that aim to attract shopping mall customers. Suggestions for future research are provided.
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Customers’ repurchase decision in the culinary industry: Do the Big-Five personality types matter?
DOI: https://doi.org/10.24052/JBRMR/V13IS01/ART-13
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This paper aims to explore the Big-Five (5) personality types on customers’ purchase decisions, as it is regarded within the phenomenon of customers’ experienced meaning, which would shape how a person’s personality would define their meaning of perceptions toward an experience in repurchasing decisions. A qualitative study with semi-structured interviews was employed in order to answer the research objectives by interviewing 84 customers in café and restaurants in Makassar city. In this paper it was discovered that participants whose high level of personality traits such as Openness, Conscientiousness and Agreeableness are the ones who will tend to make repurchase decision in the culinary industry. Moreover, those with low level in dimension of Neuroticism show a substantial relationship in making repurchase decision toward service/goods in culinary industry merely for identity making, particularly their social status in social media. Based on the research findings, there are several factors (themes) identified in exploring the relationship between the big-five personality types (Extraversion, Agreeableness, Conscientiousness, Neuroticism, and Openness to Experience) and repurchase decision in the culinary context. These are: 1) word of mouth and social status; and 2) price. This paper offers original contributions as this paper acknowledges the importance of a qualitative study in exploring the relationship between personality types and customers repurchase decision.
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The relationships among leadership styles, communication skills, and employee satisfaction: A study on equal employment opportunity in leadership
DOI: https://doi.org/10.24052/JBRMR/V13IS01/ART-14
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This study attempted to analyze the relationships among leadership styles, communication skills, and employee satisfaction. This study also examined the potential of women in leadership to support the practice of equal employment opportunities from gender side in organization. Data were collected from 200 self-administered survey using questionnaires completed by employees at private Islamic universities in Semarang city, Indonesia. Regression analysis was used to test the hypotheses. The results showed that leadership styles and communication skills have a significant effect on employee satisfaction. However, based on employees’ perceptions, this study revealed no significant difference between leadership styles and communication skills of male and female leaders.
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Forecasting the tendencies of the Russian vegetables market development
DOI: https://doi.org/10.24052/JBRMR/V13IS01/ART-15
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The article is devoted to studying the alternatives of development of the Russian vegetables market from the point of view of change of the level and structure of production and consumption of vegetables. The main objectives of the research are to collect and analyze data of the Russian market of vegetable production, modeling and scenario forecasting vegetables market, a substantiation of directions of development of the market under study. The methodological basis of the research is developing the combined economic & mathematical imitation model that is based on creation of the differential equations system. As any qualitative and quantitative changes of market factors lead to shifts in consumer behavior and the structure of consumed products, the scenario variants of development of the situation at the Russian vegetables market was analyzed depending on foreign trade limitations, level of development of infrastructure, and pricing factors of the market. As a result of the research, the volume of consumption of various types of vegetables is predicted for the variants of the forecasts, as well as consequences of the change of the situation for the Russian vegetable sphere on the whole.
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Internal audit quality dimensions and organizational performance in Nigerian federal universities: the role of top management support
DOI: https://doi.org/10.24052/JBRMR/V13IS01/ART-16
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The study examines the moderating effects of top management support in the relationship between internal quality dimensions and organizational performance in Nigerian federal universities. The study employed a sample of internal audit staff at senior level from 40 federally owned universities in Nigeria where 400 samples have been drawn for the analysis. Questionnaire instrument was used in generating the data having subjected to Exploratory Factor Analysis (EFA) and Confirmatory Factor Analysis (CFA) aimed at establishing underlying dimensions. The data was collected and analysed using inferential statistics and the findings revealed that interaction of internal audit competence, internal audit independence, and internal audit size, with top management support significantly and positively influence organization performance of Nigerian federal universities. The findings provide ground for new policy initiatives to strengthen internal audit and enriched the literature by providing the moderating effect of top management support as instrumental to organizational performance. It is therefore recommended that internal audit competence internal audit independence and internal audit size should be given more attention and mechanism through which these qualities can be employed and sustained for more internal audit service delivery and efficiency in Nigerian federal universities.
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Does the spin-off policy can accelerate the deposit funds in the Indonesian Islamic banking industry?
DOI: https://doi.org/10.24052/JBRMR/V13IS01/ART-17
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The purpose of this paper is to analyze the impact of spin-off policy that based on Islamic Banking Act No. 21/2008 to the deposit fund growth of Islamic banking industry in Indonesia. This research used panel regression with fixed effect. The variable used in this paper is spin-off variable that used as a dummy variable, and also included the internal factor of industry such as deposit margin, and efficiency ratio (measured by BOPO). Besides the internal element, this research also added the external factor such as economic growth rate, and net interest margin from conventional banking. The result showed that the dummy spin-off variable, operational efficiency ratio (BOPO) and growth rate had an impact on the deposit funds in four Islamic banks. The implication of this result is spin-off policy had a good effect on the growth of deposit funds in Indonesian Islamic banking industry. Spin-off decision is one of the business strategies from Islamic banks and not the goal of Islamic banking industry.
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Impact of motivational factors on knowledge sharing behaviour of managers in Ready Made Garments (RMG) Industry of Bangladesh
DOI: https://doi.org/10.24052/JBRMR/V13IS01/ART-18
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The study aimed to examine the impact of motivational factors on the knowledge sharing behaviour of managers in the Ready-Made Garments (RMG) industry of Bangladesh. Everyone has knowledge and can be part of knowledge sharing specially in organizations where employees need knowledge from the seniors or other personnel to perform better. However, barriers in the knowledge sharing process are common while some motivators could be effective to overcome those barriers and motivate individuals to share their knowledge with others in the organisations. This study integrates motivational perspectives into the Theory of Planned Behaviour (TPB) to examine the impact of both intrinsic and extrinsic motivators on managers’ knowledge sharing behaviour in selected organisational contexts. The study used a quantitative strategy and a cross-sectional survey method for data collection from 110 respondents comprising general managers, product managers, shift managers, quality managers and line managers from randomly selected top 30 RMG organizations in Dhaka, Bangladesh. The results showed that among the selected motivational factors, enjoyment in helping others was highly associated with knowledge sharing behaviour of managers in RMG organizations. However, expected organizational rewards, reciprocal benefits and knowledge self-efficacy have a moderate level of impact on managers’ knowledge sharing behaviour.
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The optimum refurbishment time of shopping centres
DOI: https://doi.org/10.24052/JBRMR/V13IS01/ART-19
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The optimum time in the life cycle of a shopping centre when refurbishment must be undertaken was investigated, based upon the analysis of three shopping centres in Durban, South Africa, which were older than thirty years and where refurbishment had not taken place for at least twelve years. To determine the impact of age on the centres' performance, data was gathered from shoppers, tenants and the landlords.
The results indicate that the life cycle stage, rather than physical age, plays a dominant role in determining the requirement to refurbish. Respondents prefer shorter periods (seven to ten years) between revamps to ensure that the shopping centre remains attractive to tenants and shoppers and rewarding in terms of financial returns to investors. The findings further indicated that the timing for refurbishment is moderated by internal factors such as management competency, investor strategy and feasibility of the refurbishment project as well as by external factors such as competition, market, social and technological environment. It has also been established that refurbishment must meet certain expected financial returns in order for it to be undertaken.
This paper demonstrates the importance of understanding the stage of the shopping centre in the product life cycle and ensuring that refurbishment is undertaken when it is due before loss of competitiveness and financial returns occur.
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Moderated-mediation investigation on internet marketing and export market growth in the Jordanian export sector
DOI: https://doi.org/10.24052/JBRMR/V13IS01/ART-20
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This quantitative research study set out to replicate and extend Bianchi & Mathew’s (2015) findings on the relationship between Internet marketing capabilities and export market growth. In particular, it examined the mediating effect of the availability of export information as well as international business network relationships on the primary relationship within the context of the Jordanian export sector. In addition, the study examined the moderating effect of economic and spending growth of target foreign markets. Structural equation modeling was used to investigate the model as it is most suited for predicting changes in the outcome variables in complex conceptual models with multiple independent and dependent variables measured on multiple dimensions (Emeagwali, 2015). The population of the study consisted of Jordanian export firms. A total of 313 online surveys were collected establishing the data to be analyzed for the study. SPPS statistical software version 21 was used to verify the model and the hypotheses of the research study. Findings revealed that while Internet marketing has no direct influence on export market growth, it does have a direct influence on the availability of export information, which in turn has an influence on export market growth. Findings also showed that Internet marketing capabilities had no significant effect on business network relationships. However, the availability of export information had a strong and significant effect on the ability of the companies under study to develop and nurture business network relationships even though business network relationships was found to have a weak but significant effect on export market growth. A key contribution of this study is the finding that economic and spending growth were both observed to strengthen the mediating effects of availability of export information on export market growth as well as the mediating effect of business network relationships on export market growth.
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Influence of leadership style, training, role of ambiguity on employee performance of higher education of Saudi Arabia (KSA)
DOI: https://doi.org/10.24052/JBRMR/V13IS01/ART-21
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Employee performance is always considered as one of the important factors of employee management that determines the success of an organization. The higher education sector of any country is considered as an important sector which needs to concentrate on achieving its goals successfully. Thus, this research aimed to investigate effect of leadership and training on employees’ performance by taking role ambiguity as a moderating variable in the higher education sector of the Kingdom of Saudi Arabia (KSA). The population of this study consisting of 39154 employees was divided into five groups based on the geographic regions (East, West, Middle, North, and South). This study used the systematic sampling. 600 questionnaires were distributed among the employees working in the higher education system of KSA. 366 questionnaires were returned and were usable for analysis. To test the proposed hypotheses, the Partial Least Squares Structural Equation Modeling (PLS-SEM) was employed. The results found leadership and training have significant positive impacts on employee performance. The study also showed that role ambiguity significantly moderates the relationship between leadership styles with employees’ performance in the higher education sector of KSA. Unpredictably, this study found that role ambiguity does not significantly moderate the relationship between training and employees’ performance. Role ambiguity negatively influences the relationship of leadership with employees’ performance. Therefore, policy-makers and leaders of higher education institutions of KSA should focus on reducing role ambiguity.
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Performance model development for assessing maintenance service providers using the Kano model
DOI: https://doi.org/10.24052/JBRMR/V13IS01/ART-22
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Outsourcing is delegating partial or total business functions to other companies in conjunction with administrative and operational activities. One of the industries that implements outsourcing in its maintenance activity is the healthcare industry. An Intensive Care Unit (ICU) is part of a hospital which is very vital, so that it requires medical equipment with high availability and reliability. The aim of this research is to develop a performance model to use to assess the performance of medical equipment or the used maintenance outsourcing service providers. Developing the performance model involves 14 criteria. The 14 criteria were clustered by the Kano Model to obtain the importance of each criteria. . Kano was used to identify the criteria within the dimension of basic requirements and special requirements. DEMATEL was employed to identify the connection between criteria and ANP in order to provide the integrity of the criteria. The three criteria with the highest integrity rating were the technicians’ capability by the rate of integrity that reached 0.256881, the aptitude of providing diagnosis by the rate of integrity that reached 0.222181, and the flexibility by the rate of integrity that reached 0.175684. Two criteria which had a rate of integrity of 0 and were considered as therefore having the lowest integrity rate were the criteria of charges and dependability respectively.
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Optimal board size in the Jordanian banks: Empirical evidence based on accounting performance
DOI: https://doi.org/10.24052/JBRMR/V13IS01/ART-23
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The aim of this paper is to examine the optimal board size in the Jordanian banking sector with a focus on the accounting performance using a panel data from 2004 to 2013. In general, we find that the board size and bank performance are related but not at a significant level. Interestingly, we find that neither too small boards nor too large boards are effectively enhancing the bank accounting performance. The study concludes that the optimal board size is between 9 to 12 directors. Boards with less than nine directors are found to be insignificantly related to the bank performance while boards with more than 12 members are significantly and negatively related to the performance. Currently, the corporate governance codes suggest the board to be at least five directors and not more than 13 directors. Thus, this study suggests the policy makers to limit the size of the board to 9-12 directors only.
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The roles of internal audit quality on the relationship between narcissistic CEOs and real earnings management
DOI: https://doi.org/10.24052/JBRMR/V13IS01/ART-24
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This study aims to investigate the roles of internal audit quality on the effects of narcissistic Chief Executive Officers (CEOs) to earnings management through real activities manipulation. The research design is quantitative method using secondary data. The sample used in this study consisted of 116 manufacturing Companies which are listed on Indonesia Stock Exchanges for the period of 2013 to 2015. Earnings management through real activities manipulation which is also called real earnings management is proxied with three patterns: cash flow from operation (CFO), production costs, and discretionary expenses as developed by Roychowdhury (2006). The results show that narcissistic CEOs has a positive and significant effect toward real earnings management in the pattern of cash flow from operation and in the pattern of discretionary expenses. Narcissistic CEOs has no effect toward real earnings management in production costs pattern. The results of this study also provide empirical evidence that quality of internal audit can alleviate the influence of narcissistic CEOs toward real earnings management in the pattern of cash flow from operation. Meanwhile, internal audit quality can not mitigate the effects of narcissistic CEOs toward real earnings management in the patterns of production costs and discretionary expenses.
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The impact of corporate social responsibility on customer loyalty in the Qatari telecommunication sector
DOI: https://doi.org/10.24052/JBRMR/V13IS01/ART-25
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This study aims at examining the impact of Corporate Social Responsibility (CSR) on Customer Loyalty (CL) within the Telecommunication sector in the State of Qatar, the market in Qatar consists of two telecommunication providers; Ooredoo Qatar and Vodafone Qatar. Moreover, the study examines whether selected demographics (gender, age, income level and educational level) play any role in moderating the potential relation between CSR and CL. In order to accomplish this, the study utilized a descriptive analytical methodology and a quantitative research approach utilizing survey strategy. Using personally submitted questionnaires, 476 filtered and screened questionnaires were analyzed using SPSS software. The study revealed that customers perceived CSR activities as an essential element for them and for the operating organizations as well, moreover their awareness of such activities was salient through their responses to the questionnaire in place, and as a result, CSR activities were found to have a positive direct significant impact on CL. As for the suggested demographics, gender, age, and educational level didn’t play any significant effective role in moderating the impact of CSR on CL. On the other hand, the Income Level slightly enhanced the original relationship between CSR and CL, as the higher the income level, the more CSR activities impact CL. Based on the results of the study, the researchers recommend that telecommunication providers should continue conducting CSR activities and focus more on ethical, economic, and environmental dimensions of CSR. Providers should also work on communicating their CSR activities to the public and customers to increase customer loyalty and maintain their market share. Recommendations for future research based on the results are also provided.
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Corporate Governance Practices in the Banking and Finance Sector: Perspectives from Bangladesh
DOI: https://doi.org/10.24052/JBRMR/V13IS01/ART-27
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Corporate Governance has become one of the most important strategic tools for enterprises and organizations to increase both stakeholders’ value and a firm’s performance. It ensures the accountability and responsibility of the directors, managers and others who hold key positions of responsibility. It is based on a set of rules and principles, processes and mechanisms by which the affairs of the corporations and firms are directed, managed and controlled. Over the past thirty years the concept of corporate governance has received substantial attention from regulatory bodies, scholars and practitioners worldwide as it has been viewed as one of the most important tools for the progress and prosperity of corporations. However, the concept is still in its infancy in Bangladesh and thus is not as well established and commonplace as it might be elsewhere.
The main purpose of this study is to understand the nature of corporate governance, its importance, need and its practices in Bangladesh within the Banking and Finance sector. The study is mainly based on secondary sources of data and information that includes scholarly journal articles, books, the Corporate Governance Act of Bangladesh 2004, and other relevant sources pertaining to the subject.
A wide range of factors, including codes of corporate governance, legal and regulatory frameworks, development of the capacity of boards of directors, introduction of good governance and institutional capacity building have been recommended to institutionalize and improve corporate governance in Bangladesh. Issues such as whistleblowing and the efficacy of Bangladesh’s Legal system are germane to discussions within the ambit of this research.
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