Full Text Articles
The Lahore Journal of Business, Volume 8, Issue 2, Oct - Mar 2020
Muhammad Ahmad and Mirza Ashfaq Ahmed
The Lahore Journal of Business, Volume 8, Issue 2, Oct-Mar 2020, pages, 1-32 https://doi.org/10.35536/ljb.2019.v8.i2.a1
This study examines the relationship of a firm’s customer orientations, salesperson customer-oriented behavior and customer intimacy with customer commitment. For the purpose of this study, the interpersonal relationship marketing model and the interpersonal attraction investment model are employed to propose the conceptual model. The conceptual model suggests that (1) firm’s customer orientation positively influences the salesperson customer-oriented behavior; (2) salesperson customer-oriented behavior positively influences the customer intimacy; (3) customer-oriented behavior positively mediates between customer orientation and customer intimacy; and (4) customer intimacy acts a positive mediator between the salesperson customer-oriented behavior and customer commitment. Through the course of this study, the proposed conceptual models were tested with the data collected from the firm and customer dyads. Moreover, the data is collected from the food sector of Pakistan. Furthermore, the Smart-PLS is used to test the standardized dyadic data sets. Results have provided substantial support for the proposed conceptual model. There is strong support for the salesperson customer-oriented behavior, and customer intimacy as mediator. Additionally, the results validate the interpersonal relationship marketing model and the Rusbult investment model as well. From a managerial perspective, this study can help organizational policy makers to understand the importance of salesperson behavior, and customer emotions for a long-term relationship with the targeted customer of the specific firm.
Talat Islam, Zeshan Ahmer and Naeem Mushtaq
The Lahore Journal of Business, Volume 8, Issue 2, Oct-Mar 2020, pages , 33-53 https://doi.org/10.35536/ljb.2019.v8.i2.a2
Earlier studies have focused on the attitudinal and behavioral aspects of employee turnover. However, this study empirically investigates the contextual (i.e. job complexity, developmental feedback and perceived organizational support) and personal (i.e. proactive personality and core self-evaluations) aspects in order to elucidate turnover intention among the private sector universities of Pakistan. The study used a questionnaire-based survey that was circulated amongst the faculty members of the private universities, and 758 responses were used for the final data analysis. Moreover, the structural equation modeling was applied and revealed that core self-evaluation, developmental feedback, job complexity and perceived organizational support are negatively associated with turnover intention. However, the element of proactive personality was found to have a nonsignificant association with turnover intention. This study has theoretical and practical implications for universities and recruitment departments.
Irfan Hameed, Muhammad Babar Khan and Atif Shahab
The Lahore Journal of Business, Volume 8, Issue 2, Oct – Mar 2020, pages , 55-84 https://doi.org/10.35536/ljb.2019.v8.i2.a3
In order to investigate the purchase intention of the customers, and its relationship with perceived humor, this research analyses different types of humor that have been used in advertising campaigns. In this regard, multi-mediation analysis has been applied keeping in mind the perspective of humor in advertising; moreover, attitudes towards the advertisement, and attitudes towards the brand are used as sequential mediators. In addition, self-monitoring and message arguments have also been included as moderators in order to estimate the interaction effect in the proposed model. The data has been gathered from 617 respondents after showing them relevant advertisements. After checking the normality of the data, the Confirmatory Factor Analysis was applied using AMOS. Also, Simple Linear Regression was used to test simple relationships; however, complex models have also been tested by using the hierarchal regression (to test moderation), and the bootstrapping (to test mediation) methods. A good fit between the data and the tested model was observed. As predicted, the purchase intentions were positively related to perceived humor, and evidence of full mediation effect was found. However, for the moderation of self-monitoring and message arguments, the findings were distinctive. In reality, this research can be used by mature brands which mostly require the use of persuasive advertising. As the results of different types of humor, collectively, are significant, it can be inferred that companies must use a mix method approach in terms of types of humor they might resort to in their advertisement campaigns. Findings are particularly noteworthy for national and multinational media agencies in Pakistan, as well in the other parts of the world.
Seeham Yousaf
The Lahore Journal of Business, Volume 8, Issue 2, Oct – Mar 2020, pages , 85-128 https://doi.org/10.35536/ljb.2019.v8.i2.a4
Herzberg’s motivation theory is one of the most widely studied motivation theories. This theory is also known as the two-factor or dual-factor theory. The premise of Frederick Herzberg’s theory is that the concept of motivation is divided into two aspects: hygiene and motivators. There is no denying of the fact that the theory of Herzberg of employee motivation is very pertinent in explaining the work behaviors of organizational employees. Nevertheless, this theory attracts substantial criticism from its critics who strongly contended that there is no need to revive the original theory as it lacks substantial influence in explaining employee motivation. Taking this notion forward, this study aims to test the fundamental factors that are of six hygiene factors (extrinsic factors), and five motivators (intrinsic factors) that affect the job satisfaction of front line employees (FLEs). In doing so, this study moves beyond the dichotomy of these two factors and examine the pertinence of underlying factors that can directly influence the employee job satisfaction. The FLEs are the faces that represent organizations, as they directly interact with the customers at their business units. The study analyzes the data by applying a structured equation model on a survey sample of 284 employees, constituting of business managers and executives in both metropolitan and non-metropolitan areas in telecommunication industry of Pakistan. This research reveals positive and direct relationship of five of the underlying factors (money, relationship with peers, relationship with supervisors, work itself and recognition) with job satisfaction.
Aasir Ali, Arshad Khushi Muhammad, Muhammad Shahid Rasheed and Rab Nawaz Lodhi
The Lahore Journal of Business, Volume 8, Issue 2, Oct-Mar 2020, pages, 129-154 https://doi.org/10.35536/ljb.2019.v8.i2.a5
Over the years, the usage of smartphones has burgeoned worldwide. However, it is noteworthy that with this multiplied usage and popularity of smartphones, most of the consumers demonstrate erratic behavior in the selection of their preferred brand. Therefore, in order to understand this phenomenon further, this study was conducted in Pakistan to examine the brand switching behavior of young consumers in the smartphone industry. For the purpose of this study, a theoretical framework marks out the relationships between social influence, sales promotion, variety seeking and brand switching. The methodology adopted for this study comprised of a quantitative research design, following a positivistic research paradigm. A sample of 500 young smartphone users from the population of major cities of Pakistan was approached using purposive-sampling method, from which 482 responses were acknowledged. The data was collected via the survey method, following close ended questionnaires. The data was then analyzed by applying the structural equation modeling technique. The research findings filled in the research gaps by revealing a positive relationship between social influences, variety seeking and sales promotion on brand switching. However, brand loyalty was found to have a significant unfavorable impact on these relationships. Brand loyalty weakens the relationship of social influence, variety seeking and sales promotion with brand switching. Hence, the presence of brand loyalty restricts consumers from switching their smartphone brand due to the influence of the above mentioned factors.
The Lahore Journal of Business, Volume 8, Issue 1, Apr - Sep 2019
Rubeena Tashfeen, Saud Hayat and Afreen Mallik
The Lahore Journal of Business, Volume 8, Issue 1, Apr-Sep 2019, pages 1-24, https://doi.org/10.35536/ljb.2019.v8.i1.a1
This study examines the effectiveness of the corporate governance structure when coping with any potentially unexpected events. For the purpose of this research, an event study has been conducted in order to investigate the market responses of various firms through the Cumulative Average Abnormal Return (CAAR) of the stocks listed on the Pakistan Stock Exchange (PSX). The stocks data under consideration is that which was presented after the assassination of Benazir Bhutto in 2007. The overall results indicate that firms that are governed conventionally do not perform well in the markets during a crisis situation. In our comparison of conventionally, and non-conventionally governed firms, the overall pooled results show that the former record a lower CAAR. This, in short, indicatesthat conventional corporate governance structures may not be equipped to take timely and dynamic actions that are deemed necessary in the face of a crisis. Moreover, our results suggest that firms which have less diversified ownership, and governance mechanisms are less vulnerable to such unanticipated events. There are two reasons that support our hypotheses: first, strict governance mechanisms, and a resultant cautious/conservative approach may not allow firms to take timely and proactive decisions during these situations and second, there is a lower chance of existing agency problems, as family owners would be working for the protection of their own wealth during these events. Therefore, our findings ultimately reveal that the conventional corporate governance structures that work during normal time period, may become ineffective during a crisis. This study, aims to fill a gap in the literature in order to provide fresh insights into the stock market dynamic, and corporate governance risk management. Furthermore, it also highlights the benefits of family owned structures, and unconventional corporate governance systems, that may outperform conventional governance structure in some situations. This, however, raises the question whether one governance framework could be the correct fit in all the situations.
Ali Awais Khalid, Ghulame Rubbaniy, Muhammad Faisal Rizwan and Hassan Rauf Chaudhry
The Lahore Journal of Business, Volume 8, Issue 1, Apr-Sep 2019, pages 25-49, https://doi.org/10.35536/ljb.2019.v8.i1.a2
This study aims to extend the signaling theory, by offering the buy-side sovereign wealth fund’s (SWF) affiliation as a signal of the acquisition premium. Using the mergers and acquisitions (M&As) deals’ data from Asia-Pacific, over the period from 2000-2017, theresults reveal that the effect of buy-side SWF’s affiliation, on the acquisition premium of target firms is negative, and statistically significant in the North Asian region. Our cross-country analysis shows a negatively significant effect of the buy-side SWF’s affiliation on the acquisition premium in China. The findings of our sectoral analysis report a significantly adverse effect of SWF’s affiliation on the acquisition premium in the energy and cyclical goods sector. This suggests that the SWFs are likely to be more influential in M&As deals that are conducted in the strategic sectors. Our findings demonstrate that the buy-side SWF’s affiliation can be used as a signal of quality. That is to say that this affiliation increases the bargaining power of buyers to reduce the acquisition premium for targets. The findings are particularly important for the managers of firms managing SWFs’ investments, as they can negotiate better deals with the targets due to the managers’ affiliation with the SWFs
Shaista Jabeen and Sayyid Salman Rizavi
The Lahore Journal of Business, Volume 8, Issue 1, Apr-Sep 2019, pages 51-72, https://doi.org/10.35536/ljb.2019.v8.i1.a3
This research intends to investigate the herd behaviour of investors in Pakistan Stock Exchange (PSX). Previous literature claims that herd behaviour is driven from fundamental information, which causes quick price adjustments to new information and thus leads to efficient markets. However, some researchers have claimed that herd behaviour does not depend upon fundamental information, and hence, leads to price instability. For the purpose of this research, the daily closing stock prices of 528 companies listed in the PSX have been used to calculate the stock returns. The market-wide herd measure, proposed by Chiang and Zheng (2010), has been used to compute the herd behaviour. The data has been investigated for autocorrelation, heteroscedasticity, and stationarity issues. Findings revealed that herding did not exist in PSX, but some sectors did follow this behaviour. This study can help regulators to comprehensively investigate market anomalies leading to smooth market processing.
Khola Ozair, Muhammad Luqman and Syed Nisar Hussain Hamdani
The Lahore Journal of Business, Volume 8, Issue 1, Apr-Sep 2019, pages 73-90, https://doi.org/10.35536/ljb.2019.v8.i1.a4
Over the years, Islamic banking has emerged as a viable alternative to conventional banking, especially after the global financial crises of 2008. Despite the fact that the existing literature emphasizes on this significant shift in customers’ preferences in favor of Islamic banking, there are only a few studies that investigate the actual motives behind this shift. Hence, the key objective of this study is to identify the different factors that explain consumer preferences regarding Islamic banking services, specifically in Mirpur. Even more specifically, this study explores the role of religiosity in influencing consumers’ choice of Islamic banking in Mirpur. To test whether or not religiosity affects consumer preference for Islamic banking, the logistic regression technique has been used for the data analysis. The overall results reveal that besides the conventional variables, the religiosity level of customers, Shariah compliance of an Islamic bank, and knowledge of the respondent about prohibition of interest (Riba) in Islam have positive, and significant effects on consumers’ selection of Islamic banks. Based on these empirical findings, this study suggests that along with improving delivery and quality of services, Islamic banks should emphasize on Shariah compliance which provides a sustainable competitive advantage for Islamic banks over conventional banks.
Hassan Raza, Arshad Hasan and Abdul Rashid
The Lahore Journal of Business, Volume 8, Issue 1, Apr-Sep 2019, pages 91-106, https://doi.org/10.35536/ljb.2019.v8.i1.a5
This paper investigates the comparative relationship between the downside risk adjusted CAPM and traditional CAPM. The premise of the traditional CAPM is that the expected return is based on the incidence of systematic risk (beta), which has been assumed to be homogenous for both the developed, and the emerging stock markets. However, empirical results are not aligned with this assumption, as the basic risk and return relationship happens to be negative, and insignificant in the case of emerging markets. This may be due to the emerging stock markets’ distinct
characteristics (i.e. high volatility, low liquidity, and less availability of historical data). To deal with the said issue, extent literature supports the use of the semivariance methodology (SV-M) for emerging markets, instead of the mean-variance (M-V) method. Therefore, this study referred to the Fama and Macbeth (1973) methodology that was applied over monthly data ranging from June, 2000 to June, 2018. Results indicate that there is a positive relationship between the risks (downside and traditional beta) and the expected return. Moreover, results also eveal that downside risk has more significance and explanatory power as compared to the traditional beta. Hence, as per the above findings, the study suggests using the semi-variance methodology for the calculation of the expected returns in emerging economies. However, the significance of the residuals, and beta square terms in both methodologies clearly indicate that there is a need to adjust and incorporate more risk factors, as well as an element of non-linearity while arriving at a probable risk and return relationship.
Saad Shahid
The Lahore Journal of Business, Volume 8, Issue 1, Apr-Sep 2019, pages 107-144, https://doi.org/10.35536/ljb.2019.v8.i1.a6
To understand how brand love can be created, this study examines the effect of brand positioning strategies (benefit brand positioning strategy, feature brand positioning strategy and surrogate brand positioning strategy) on brand love, by conceptualizing brand positioning effectiveness as a mediator. The proposed conceptual model was empirically studied with the responses of 607 young consumers from private universities in Pakistan. This study finds evidence of complementary mediation of brand positioning effectiveness between brand positioning strategies, and brand love in the context of high street fashion retail brands. For the brand managers, this study implies that the development of an interpersonal consumer-brand bond can be developed by employing benefit brand positioning strategy, surrogate brand positioning strategy and feature brand positioning strategy. This, as a result, also indicates the effectiveness of all three of these brand positioning strategies.