11(2): 2020 @ TuEngr.com @ ITJEMAST

Volume 11 Issue 2 (2020) ISSN 2228-9860 eISSN 1906-9642

http://TuEngr.com ORGANIZATIONAL CYNICISM AND EMPLOYEE PERFORMANCE: THE MODERATING EFFECT OF OCCUPATIONAL SELF-EFFICACY IN PAKISTAN DOMESTIC CREDIT AND ECONOMIC GROWTH IN ASEAN COUNTRIES: A NONLINEAR APPROACH IMPACTS OF DESPOTIC LEADERSHIP AND DARK PERSONALITY TRIAD ON FOLLOWER'S SENSE OF MEANINGFUL WORK: MODERATING INFLUENCE OF ORGANIZATIONAL JUSTICE GENETIC DISTANCES AMONG EIGHT ORNAMENTAL CHICKENS BY MOLECULAR TECHNIQUE FACTORS AFFECTING HEALTHCARE SECTOR INFLATION RATE IN IRAN'S PROVINCES FOR 2004-2015 A DEVELOPMENT OF THE EXPERIMENTAL HEAT EXCHANGER FOR OBTAINING ENERGY FROM PHASE TRANSITION WATER-ICE MICROBIOLOGICAL SUPPLEMENTS FOR THE METABOLIC RATE CORRECTION IN CALVES FRAMING TERRORISM RELATED ISSUES IN PAKISTANI NEWSPAPERS: EXPLORING THE AGENDA ON TERRORISM IN PERSPECTIVE OF POST UNITED STATES ATTACKS ON AFGHANISTAN SINCE 2009

LEADERS OF CHANGE KEY STRATEGIC INSTRUMENTS: MARKETPLACES AS THE BASIS OF THE UBERIZATION MODEL FOR MANAGING GLOBAL COMPANIES SPATIAL ANALYSIS ON MALAY BUILDINGS FOR CATEGORIZATION OF MALAY HISTORIC BIM LIBRARY CRITICAL ORGANIZATIONAL LEARNING FOR COST LEADERSHIP STRATEGY AND PERFORMANCE: STUDY OF TELECOM SECTOR IN PAKISTAN 4C'S OF WORK ENVIRONMENT AND ORGANIZATIONAL PERFORMANCE: MEDIATING ROLE OF INDIVIDUAL PERFORMANCE MEASUREMENT OF INDIVIDUAL PERFORMANCE USING FIVE-FACTOR PERSONALITY MODEL: A COMPARATIVE STUDY OF PUBLIC AND PRIVATE HOSPITALS SECTOR OF PAKISTAN IMPACT OF OWNERSHIP STRUCTURE AND BOARD COMPOSITION ON FINANCIAL DISTRESS OF PAKISTAN STOCK EXCHANGE LISTED MANUFACTURING FIRMS INFLUENTIAL FACTORS OF WATER BODY TO ENHANCE THE URBAN COOLING ISLANDS (UCIs): A REVIEW GLOBALIZATION AND GENDER EQUALITY IN TERMS OF EDUCATION AND EMPLOYMENT: A CASE OF SELECTED ASIAN DEVELOPING COUNTRIES IMPACTS OF SERVICE QUALITY ON CUSTOMER SATISFACTION: A COMPARATIVE STUDY ON BANKING SECTOR OF PAKISTAN THROUGH WEIGHTED SERVPERF MODEL PREDICTING MEDIATING ROLE OF ORGANIZATIONAL COMMITMENT IN RELATIONSHIP BETWEEN HUMAN RESOURCE MANAGEMENT PRACTICES AND FACULTY TURNOVER INTENTIONS ECONOMIC IMPLICATIONS OF BRICS FOR PAKISTAN: A CGE APPROACH METHOD DEVELOPMENT TO SUPPORT THE ENTERPRISE ECONOMIC SECURITY BY USING MATHEMATICAL MODELING TOOLS

©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies.

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International Editorial Board

Editor-in-Chief Ahmad Sanusi Hassan, PhD Professor Universiti Sains Malaysia, MALAYSIA

Executive Editor Boonsap Witchayangkoon, PhD Associate Professor Thammasat University, THAILAND

Editorial Board:

Assoc. Prof. Dr. Mohamed Gadi (University of Nottingham, UNITED KINGDOM) Professor Dr.Hitoshi YAMADA (Yokohama National University, JAPAN) Professor Dr. Chuen-Sheng Cheng (Yuan Ze University, TAIWAN ) Professor Dr.Mikio SATOMURA (Shizuoka University, JAPAN) Professor Dr.Chuen-Sheng Cheng (Yuan Ze University, TAIWAN) Emeritus Professor Dr.Mike Jenks (Oxford Brookes University, UNITED KINGDOM ) Professor Dr.I Nyoman Pujawan (Sepuluh Nopember Institute of Technology, INDONESIA) Professor Dr.Toshio YOSHII (EHIME University, JAPAN) Professor Dr.Neven Duić (University of Zagreb, CROATIA) Professor Dr.Dewan Muhammad Nuruzzaman (University Malaysia Pahang MALAYSIA) Professor Dr.Masato SAITOH (Saitama University, JAPAN)

Scientific and Technical Committee & Editorial Review Board on Engineering, Technologies and Applied Sciences:

Associate Prof. Dr. Paulo Cesar Lima Segantine (University of São Paulo, BRASIL) Associate Prof. Dr. Kurt B. Wurm (New Mexico State University, USA ) Associate Prof. Dr. Truong V.B.Giang (Vietnam National University, Hanoi, VIETNAM) Associate Prof. Dr. Fatemeh Khozaei (Islamic Azad University Kerman Branch, IRAN) Assistant Prof.Dr. Zoe D. Ziaka (International Hellenic University, GREECE) Associate Prof.Dr. Junji SHIKATA (Yokohama National University, JAPAN) Assistant Prof.Dr. Akeel Noori Abdul Hameed (University of Sharjah, UAE) Assistant Prof.Dr. Rohit Srivastava (Indian Institute of Technology Bombay, INDIA) Assistant Prof. Dr.Muhammad Yar Khan (COMSATS University, Pakistan) Assistant Prof. Dr. David Kuria (Kimathi University College of Technology, KENYA ) Dr. Mazran bin Ismail (Universiti Sains Malaysia, MALAYSIA ) Dr. Salahaddin Yasin Baper (Salahaddin University - Hawler, IRAQ ) Dr. Foong Swee Yeok (Universiti Sains Malaysia, MALAYSIA) Dr.Azusa FUKUSHIMA (Kobe Gakuin University, JAPAN) Dr.Yasser Arab (Ittihad Private University, SYRIA) Dr.Arslan Khalid (Shandong University, CHINA)

©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies.

:: International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies

Volume 11 Issue 2 (2020) http://TuEngr.com

ISSN 2228-9860 eISSN 1906-9642

FEATURE PEER-REVIEWED ARTICLES

LEADERS OF CHANGE KEY STRATEGIC INSTRUMENTS: MARKETPLACES AS THE BASIS OF THE UBERIZATION MODEL FOR MANAGING GLOBAL COMPANIES

11A02A

SPATIAL ANALYSIS ON MALAY BUILDINGS FOR CATEGORIZATION OF MALAY HISTORIC BIM LIBRARY

11A02B

CRITICAL ORGANIZATIONAL LEARNING FOR COST LEADERSHIP STRATEGY AND PERFORMANCE: STUDY OF TELECOM SECTOR IN PAKISTAN

11A02C

4C'S OF WORK ENVIRONMENT AND ORGANIZATIONAL PERFORMANCE: MEDIATING ROLE OF INDIVIDUAL PERFORMANCE

11A02D

MEASUREMENT OF INDIVIDUAL PERFORMANCE USING FIVE-FACTOR PERSONALITY MODEL: A COMPARATIVE STUDY OF PUBLIC AND PRIVATE HOSPITALS SECTOR OF PAKISTAN

11A02E

IMPACT OF OWNERSHIP STRUCTURE AND BOARD COMPOSITION ON FINANCIAL DISTRESS OF PAKISTAN STOCK EXCHANGE LISTED MANUFACTURING FIRMS

11A02F

INFLUENTIAL FACTORS OF WATER BODY TO ENHANCE THE URBAN COOLING ISLANDS (UCIs): A REVIEW

11A02G

GLOBALIZATION AND GENDER EQUALITY IN TERMS OF EDUCATION AND EMPLOYMENT: A CASE OF SELECTED ASIAN DEVELOPING COUNTRIES

11A02H

IMPACTS OF SERVICE QUALITY ON CUSTOMER SATISFACTION: A COMPARATIVE STUDY ON BANKING SECTOR OF PAKISTAN THROUGH WEIGHTED SERVPERF MODEL

11A02I

PREDICTING MEDIATING ROLE OF ORGANIZATIONAL COMMITMENT IN RELATIONSHIP BETWEEN HUMAN RESOURCE MANAGEMENT PRACTICES AND FACULTY TURNOVER INTENTIONS

11A02J

ECONOMIC IMPLICATIONS OF BRICS FOR PAKISTAN: A CGE APPROACH

11A02K

METHOD DEVELOPMENT TO SUPPORT THE ENTERPRISE ECONOMIC SECURITY BY USING MATHEMATICAL MODELING TOOLS

11A02L

i

ORGANIZATIONAL CYNICISM AND EMPLOYEE PERFORMANCE: THE MODERATING EFFECT OF OCCUPATIONAL SELF-EFFICACY IN PAKISTAN

11A02M

DOMESTIC CREDIT AND ECONOMIC GROWTH IN ASEAN COUNTRIES: A NONLINEAR APPROACH

11A02N

IMPACTS OF DESPOTIC LEADERSHIP AND DARK PERSONALITY TRIAD ON FOLLOWER'S SENSE OF MEANINGFUL WORK: MODERATING INFLUENCE OF ORGANIZATIONAL JUSTICE

11A02O

GENETIC DISTANCES AMONG EIGHT ORNAMENTAL CHICKENS BY MOLECULAR TECHNIQUE

11A02P

FACTORS AFFECTING HEALTHCARE SECTOR INFLATION RATE IN IRAN'S PROVINCES FOR 2004-2015

11A02Q

A DEVELOPMENT OF THE EXPERIMENTAL HEAT EXCHANGER FOR OBTAINING ENERGY FROM PHASE TRANSITION WATER-ICE

11A02R

MICROBIOLOGICAL SUPPLEMENTS FOR THE METABOLIC RATE CORRECTION IN CALVES

11A02S

FRAMING TERRORISM RELATED ISSUES IN PAKISTANI NEWSPAPERS: EXPLORING THE AGENDA ON TERRORISM IN PERSPECTIVE OF POST UNITED STATES ATTACKS ON AFGHANISTAN SINCE 2009

11A02T

Contacts: Professor Dr.Ahmad Sanusi Hassan (Editor-in-Chief), School of Housing, Building and Planning, UNIVERSITI SAINS MALAYSIA, 11800 Minden, Penang, MALAYSIA. Tel: +60-4-653-2835 Fax: +60-4-657 6523, Sanusi@usm.my, Editor@TuEngr.com Associate Professor Dr.Boonsap Witchayangkoon (Executive Editor), Faculty of Engineering, THAMMASAT UNIVERSITY, Klong-Luang, Pathumtani, 12120, THAILAND. Tel: +66-2-5643005 Ext 3101.

Fax: +66-2-5643022 DrBoonsap@gmail.com Managing Office TUENGR Group, 88/244 Moo 3, Moo Baan Saransiri, Klong#2, KlongLuang, Pathumtani, 12120, THAILAND. Tel/WhatsApp: +66-995535450. l id i A A SA A A

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©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies

International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies http://TuEngr.com

PAPER ID: 11A02A

LEADERS OF CHANGE KEY STRATEGIC INSTRUMENTS: MARKETPLACES AS THE BASIS OF THE UBERIZATION MODEL FOR MANAGING GLOBAL COMPANIES Mariya A. Gurina

a*

b

a

, Yuliya V. Rumyantseva , Tatiana I. Liberman , Irina S. Shchetinina

a

a

Department Public, Municipal Service and Management, Russian Presidential Academy of National Economy and Public Administration, Lipetsk Branch, 398000, RUSSIA. b Management Department, Lipetsk State Technical University Lipetsk, 398000, RUSSIA. ARTICLEINFO

A B S T RA C T

Article history: Received 31 July 2019 Received in revised form 24 October 2019 Accepted 01 November 2019 Available online 12 November 2019

The article discusses the main development trends of global companies in the context of the propagation of the Uberization management model. The dynamics of changes in the list of the world's largest corporations S&P 500 are assessed; problems and reasons for the sudden change in the rating are identified. The study examines the key strategic instruments of the leaders of change in the context of the growing dominance of digital platforms, which rely on the creation of new products, business models and new customer service options. The authors argue that in recent years, Russian players have been actively using marketplace-based Uberization processes, trying to enter the online trading market. The review of marketplaces given in the study shows their active application in the field of staff recruitment and consulting, in the field of travel, medical work, small and medium-sized businesses, trade, banking and insurance, crowdfunding. Marketplace technology is relevant for a large number of industries, as this is a simple way to expand the range without increasing costs. Thus, companies are moving towards information transformation, using marketplaces as the foundation of the uber-model. This leads to the expansion of outlets, logistics opportunities and an increase in the customer base, affecting all sectors of the economy, encouraging the growth of new players, creating new markets for opportunities and changes the competitive environment.

Keywords:

Uberization model, marketplace; Strategy of leaders of change; Digital platform; Digital economy; Digital marketing; Ecommerce market; Innovative disruptive technologies.

Disciplinary: Digital Economics, Information Technology. ©2020 INT TRANS J ENG MANAG SCI TECH.

1. INTRODUCTION 1.1 REVOLUTIONARY CHANGES IN MANAGEMENT CONCEPTS The current stage of development of the economy and society is characterized by the rapid pace *Corresponding author (Mariya A. Gurina). Email: mariyagurina2018@gmail.com ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.02 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02A http://TUENGR.COM/V11/11A02A.pdf DOI: 10.14456/ITJEMAST.2020.21

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of diffusion of innovations associated with the formation of disruptive platforms. In scientificpractical literature today much is said about innovation as an important condition for the breakthrough of leading companies (Ander & Kapoor, 2010; Chesbrough H., 2006). However, according to Peter Drucker, a well-known management specialist, increasing the organization's susceptibility to innovations, even if there are corresponding changes in the organizational structure, does not mean turning it into a leader of change. The true leader of change is distinguished by not only desire and ability to create something completely new, but also the desire and ability to boldly break the established order of things (Drucker, 1999). The presence of such property as advertently capturing the trends of changes and instantly adapting to them, using the opportunities that open up for their own benefit, ensures the survival of leading organizations.

The central goal of management in the 21st century is turning as many organizations as possible into leaders of change. Changes are seen in leading companies as an opportunity, not a threat. They purposefully look for changes that are useful for them and know how to make them as effective as possible for the external and internal activities of the organization. The key instruments to achieve these goals are policies aimed at creating the future; methods of searching and forecasting changes, strategy for introducing changes in both internal and external activities of the organization; policies to balance change and stability (Drucker, 1999).

There is no doubt that revolutionary changes are taking place in technology, mechanics, engineering, and computer programs, and their speed plays an important role in the development of new business management models (Mustafa & Werthner, 2011). However, in our opinion, the very possession and mastery of modern technology do not yet provide leadership. It is more correct to say that revolutionary changes are taking place in management concepts, and the informational revolution and other global events are radically changing the competitiveness of business, changing their understanding of leadership, work and success (Gurina & Rumyantseva, 2019).

Figure 1: The average period of tenure in the largest corporations list (index S&P 500) (www.innosight.com)

1.2 THE DYNAMICS OF CHANGES IN THE LIST OF THE WORLD'S LARGEST CORPORATIONS As Ansoff (1979) noted during his time, turbulence, or variability, of the external environment

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Mariya A. Gurina, Yuliya V. Rumyantseva, Tatiana I. Liberman, Irina S. Shchetinina

increases annually. Even the world's largest companies are often unable to withstand its changes.

Based on the dynamics of changes in the list of the world's largest corporations S&P500 from 1964 to the forecast 2030, it is possible to identify the period of tenure of corporations in this list. Based on the above estimates, we make the assumption that in the future the period of tenure in the list will be getting shorter. Perhaps there will be a reduction in geometric progression (Figure 1).

The most important conclusions from the considered dynamics are the following assumptions: o

o

o

o o

- In 1964, the average period of tenure in the quotation list of the largest S&P 500 corporations was 33 years, by 2016 it had dropped to 24 years and its reduction to 12 years in 2027 is possible; - The main reasons for such volatility can be considered the high activity of direct investment, mergers, and acquisitions of corporations and the growth of global startups with a billionth value; - The most precarious is the position of current leaders, because, given the extrapolation of the current rates of corporate retirement from the rating, about half of the S&P 500 list will be replaced over the next ten years; - There is a tendency for restructuring in the areas of healthcare, energy, financial services, travel and real estate, which will cause retailers to suffer the most; - In order to maintain a competitive position, corporations need to carry out a two-way transformation, both in terms of changing customer requests and in terms of strategic changes.

As follows from the statistics reviewed, a fairly large number of companies are annually excluded from the S&P500 rating, and others appear in return. In 2017, for example, 26 corporations were replaced by others. The volatility indicator list in 2016-2017 is about 5.2%, and a decade ago, this level of the indicator could be observed only for three years.

Of course, the range of reasons why companies leave the rating is wide. Some of the companies are fast-growing, which sharply overcome the threshold of market capitalization necessary for the rating (currently the required level for listing is about $ 6 billion), and then leave it just as quickly.

Another reason for the temporary inclusion into the list is a merger and acquisition transaction.

Global studies of the dynamics of global mergers and acquisitions (M&A) indicate that the increase in transaction volume often coincides with the onset of the financial crisis or is one of the reasons for its occurrence. In addition, an increase in the volume of M&A transactions in practice is not provided by an increase in the production potential of the industry and leads to the creation of a financial “soap bubble�, which ultimately causes a sharp drop in the value of corporations, dropping them from the list of the largest and, possibly, causes a financial crisis.

To assess the dynamics of the turnover of the largest corporations in the S&P 500 rating, it is sufficient for us to understand the nature of the increasing volume of mergers and acquisitions since after the peaks of such transactions there is a sharp reduction in the average period of tenure of corporations in the S&P500 list. In 2017, the volume of M&A transactions again exceeded past records and amounted to more than $ 453 billion. In this regard, we can predict a reduction in the period of tenure of corporations in the S&P 500 list over the next decade. With current turnover, studies show that almost 50% of the current list of the largest S&P 500 corporations will be replaced over the next ten years.

Observe the examples of well-known companies that left the S&P list for 2013-2017. (tab. 1). *Corresponding author (Mariya A. Gurina). Email: mariyagurina2018@gmail.com Š2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.02 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02A http://TUENGR.COM/V11/11A02A.pdf DOI: 10.14456/ITJEMAST.2020.21

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For example, DuPont has been on the list of the top five hundred largest S&Ps for 50 years.

Table 1: Examples of companies entering and exiting the S&P 500 rating for 2013-2017. (www.innosight.com) Corporation, which jettisoned the rating (the period of tenure in the list) Corporation, which entered the rating Yahoo! (18 years) Facebook DuPont (50 years) Incyte Corp Urban Outfitters (7 years) Foot Locker Staples (19 years) Regency Centers Dun & Bradstreet (9 years) Gartner Inc. Starwood Hotels (16 years) Hilton Worldwide DirecTV (9 years) Dish Network Auto Nation (14 years) Alliant Energy Murphy Oil (12 years) Under Armor Transocean (4 years) PayPal Ryder Systems (35 years) Activision Blizzard Frontier Communications (16 years) SBA Communications Dell Computer (17 years) Hologic EMC Corp (20 years) Regeneron Alcoa (50 years) Cadence Design Systems Safeway (17 years) Royal Carribean Cruises Whole Foods (12 years) MGM Resorts Bed Bath & Beyond (18 years) Brighthouse Financial

If you evaluate all the comings and goings from the S&P 500 over the past half-century, it becomes noticeable that the period the corporations have been on the list is directly related to the state of the economy as a whole and technological failures and insights, from breakthroughs in biotechnology to social networks and cloud technologies. The variability of the environment accelerates the emergence and development of new methods and platforms such as, for example, the phenomenon of "uberizatsii” (Rumyantseva, 2018; Popova, Huseinova, 2017), which can be evaluated by the example Uber and Airbnb companies.

The turnover of the S&P 500 rating can serve as a barometer of market changes. The reduction in the life expectancy of the companies included in this list is partly due to a complex combination of technological changes and economic shocks, some of which are outside the corporate leadership influence. But often, companies miss opportunities to adapt or take advantage of these changes. For example, they continue to apply existing business models to new markets, are in no hurry to respond to the rapid actions of competitors in low-profit segments or are unable to adequately assess the situation and invest in new growing industries that pay off for decades or more.

At the same time, we see the growth of other companies taking their place in the list, creating new products, business models and options for serving new customers. In addition, exits and entrances to the quotation list are facilitated by such factors as massive disruptions in retail trade, the growing dominance of digital platforms, downward pressure on energy prices, an increase in the number of international relationships, as well as unsuccessful share buybacks in the hope of increasing productivity.

The scale and scope of the changes taking place in the global economy are due to “disruptive,” innovations of epoch-making significance (Schwab, 2017), which explain the acuteness of

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Mariya A. Gurina, Yuliya V. Rumyantseva, Tatiana I. Liberman, Irina S. Shchetinina

perception of society's problems, both at the scientific and at the household consumer level. At the moment, according to the adherents of N.'s theory Kondratiev’s theory of long waves, we are approaching the final stage of the fourth industrial revolution, which is already a scientific and cybernetic one (Rumyantseva, 2018). In time, it coincides with the beginning of the millennium and is associated with the digital revolution, which relies on the mobile Internet, artificial intelligence and learning machines, “smart contracts”, “smart” and miniature production devices, the cost of which is rapidly decreasing, making them more affordable (Schmidt, 2015; Schwab, 2017).

Under the current conditions, the formation of a new managerial business model based on the spread of "disruptive" innovative technologies and the development of Uber platforms continues.

According to a study by the American bank JP Morgan Chase, “Uberization” can increase the income of citizens working with these services by an average of 15% (Daidj, 2018). However, companies that work according to the traditional organizational and business model resist the spread of the “Uberization” process.

Some generally accepted strategic principles, previously approved in the traditional enterprise management scheme, are becoming obsolete. Companies involved in various forms of collaboration on the basis of platforms consider the use of technical insights rather than marketing research and determination of competitive advantages based on the traditional MBA approach as the main development tools. In theory and practice of the global economy and management, the uberization model has a fundamentally different institutional format, the content, mechanisms, factors, and risks of which require a systematic study at the present stage. The content and organizational mechanism of the work of the uberization business model by the authors have already been described in detail in earlier studies (Gurina, 2019). In the framework of this article, the authors decided to touch on the technologies and tools that ensure its functioning. In particular, the fact that the uberization model is based on mediation in the form of a marketplace, but has some organizational features.

Consider the basics of the functioning of marketplaces.

Figure 2: The basic structure of the marketplace.

1.3 MARKETPLACE AS THE FOUNDATION OF THE UBER-MODEL IN THE DEVELOPMENT STRATEGY OF GLOBAL COMPANIES The marketplace (see Figure 2) is an electronic platform where many sellers offer various products that buyers are able to purchase. Marketplace acts as an information intermediary between *Corresponding author (Mariya A. Gurina). Email: mariyagurina2018@gmail.com ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.02 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02A http://TUENGR.COM/V11/11A02A.pdf DOI: 10.14456/ITJEMAST.2020.21

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sellers and potential customers, who in one place can select and compare offers, read product reviews. Essentially, a marketplace is the same market, but in an online environment. The intensification of their development falls in the 2000s. and is considered as one of the features of Industry 4.0 (Gurina, 2019).

The largest marketplace with eight affiliates around the world is Amazon, founded in 1995 as an online book retailer. Around the same period, such as online auction sites and e-commerce stores as eBay (USA), Rakuten (Japan) were created (Mikitani, 2014). In 1999, Alibaba, an online resource created by Jack Ma, ap+peared in China, which became the world's largest marketplace with a capitalization of $441 billion (based on the results of the 4th quarter of 2018) (https://quote.rbc.ru). On the Alibaba.com platform, hundreds of thousands of transactions take place every month. Google Play, AppStore are marketplaces in our smartphones. Taxi service Uber, Airbnb property search platform, Booking application for booking hotels are also examples of marketplaces for solving various everyday issues.

In the 2000s, after +the release of Chris Anderson’s book The Long Tail: Why the Future of Business is Selling Less of More; the idea of marketplaces was further developed. The book confirmed that the key to increasing sales, first of all, is a wide range of assortment.

2. UBERIZATION MODEL Since the instrument of the uberization model is quite young by the standards of the history of world business, a unified approach to understanding what distinguishes the marketplace from other Internet sites selling goods and services has not been formed in the scientific-practical literature.

In our study, we highlight several formal features that distinguish marketplaces.

Firstly, the presence of the operator of the site, and secondly, the streamlined processes of connecting new suppliers and bringing their assortment to the audience. It is also important to establish a model of mutual settlements with suppliers and customer service processes.

2.1 MARKETPLACE TECHNOLOGY Marketplace technology is relevant for a large number of industries, as this is a simple way to expand the range without increasing costs. As world practice shows, most of the companies that become marketplaces are e-commerce players, large retailers, postal and logistics operators, financial organizations, as well as IT companies (Alstyne et al., 2017). The development of an uberization model based on the use of marketplaces leads to the expansion of outlets, logistics opportunities and an increase in the client base. There are three interested parties in this business model: customers, third-party suppliers of goods and services, and an operator company that implements the marketplace. The consumer gets access to the merchandise that is collected on one site without communicating with individual suppliers. Suppliers gain access to a wide audience.

The operator also has its own sustainable commercial profit.

As mentioned earlier, companies implementing marketplace technology themselves can earn by receiving a commission from each transaction, as well as from the sale of their goods or the sale of their own services, as is the case with logistics companies. This instrument allows companies to either dispose of their core business or give it new development, new growth points.

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Mariya A. Gurina, Yuliya V. Rumyantseva, Tatiana I. Liberman, Irina S. Shchetinina

2.2 BANKING INDUSTRY MARKETPLACES Studies show that marketplaces are becoming popular in the banking industry. By offering its customers everything through a “single window”, the bank becomes a single entry point for them, thereby increasing customer loyalty and a better understanding of their customers. The consumer also benefits - in one place, he compares financial services from different suppliers, and he can quickly get a loan or get an installment plan.

For example, in Kazakhstan, the marketplace created by Kaspi Bank is very popular. The Bank has created a “Shop” section on its portal, within which users can purchase goods and services, as well as use various services from partners. He took a bold step and created a business within the business, and the transition to a new model allowed not only to increase income from interest and commissions but also to become one of the leaders in the retail market of Kazakhstan in the segment of compact, personal and electronic household appliances.

Thus, the digitalization and introduction of electronic platforms are leading the development of new approaches, which change the way people, and institutions interact and collaborate (Kunzman, 2016). When using platforms on smartphones and other gadgets, people, data, assets are united and fundamentally new ways of consuming goods are developed. Barriers in the personal and professional space for companies and individuals in creating value are reduced. The fundamental issue of the economy on demand is the definition of what is more valuable - the possession of a platform or underlying asset. A significant reduction in transaction costs for individuals or legal entities through platforms has serious consequences for business and society.

Currently, marketplaces are increasingly penetrating various sectors of the economy, since the future of society lies in the digital plane, or electronic interaction (Chaffey, 2016).

2.3 RUSSIAN ONLINE TRADING AND MARKETPLACES The Russian market of online trading and the development of marketplaces is somewhat behind the global one, however, the spreading speed and scale of this technology impress the specialists.

The share of online commerce in Russia has grown: in 2017, it amounted to 2.8%, and now it has “rounded-up” to 3%. The market capacity is estimated at 13.54 billion dollars, where 10.3 billion is the home segment and 3.24 is cross-border trade. Competition on the part of world companies is very tough; however, domestic sites are gradually gaining momentum. Russians buy about 40% of goods abroad, mostly on the Chinese platform Aliexpress. The remaining 60% is accounted for by domestic retail, which today is also greatly influenced by marketplaces as a way of organizing trade (Baharev, 2019; Glazacheva, 2018).

Years 2017 and 2018 became significant for the Russian e-commerce market. Several large marketplaces appeared: two were created by Sberbank and Yandex at once: “Beru” to work in the domestic market and Bringly for cross-border trading.

Experts estimated the total volume of goods turnover (GMV) in the largest Russian marketplaces. Analysts compared the performance of such sites as Goods.ru, Beru, Tmall, Pandao, and Joom (Table 2).

Financial marketplaces for private customers, which have long been developing retail banks, are quite common. Recently, the regulator also joined them. Very soon, the Central Bank will launch its marketplace, with the help of which Russians can remotely open a deposit, take a loan *Corresponding author (Mariya A. Gurina). Email: mariyagurina2018@gmail.com ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.02 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02A http://TUENGR.COM/V11/11A02A.pdf DOI: 10.14456/ITJEMAST.2020.21

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from a number of banks, and buy an insurance policy from a company. The organizational-technical instrument, which allows the use of the platform, will receive biometric data from the client.

Table 2: Traffic indicators and assessment of GMV marketplaces in Russia (for 01 January-30 September 2018).

(Source: http://e-pepper.ru/news/krupneyshie-marketpleysy-rossii-analitika-similiarweb.html) Sites Platform: Desktop and webmobile GMV goods.ru 9 974 000 943 Beru.ru 13 470 000 1273 Tmall.aliexpress.com 80 170 000 7579 Pandao.ru 42 360 000 4005 Joom.com 85 740 000 8106

2.4 DIGITAL MEDICAL SERVICES Recently, medical services have become widespread, allowing to pay for the employee’s annual attachment to the system, and splitting the costs of the provided services between employees and the employer (for example, the BestDoctor marketplace).

In small businesses, instruments like the App Store and Google Play applications have found useful at the checkout counter, store counter or cafe (for example, the Evotor online store). They help the business to solve a variety of problems, make it more manageable, competitive and successful.

A review of marketplaces shows their active application in the field of recruitment and consulting. A number of services offer the ability to search for experts and mentors to help solve business problems (for example, Experum). Entrepreneurs and managers who are faced with the task of improving business performance and just ordinary people who want to increase their personal effectiveness or make a breakthrough in their careers can turn to the services of the marketplace.

2.5 DIGITAL TRANSPORTATION SERVICES Marketplaces were also widely used in the field of travel, rental real estate, hotel reservations (Airbnb, Bookong, Aviasales, Traveltriangle).

Car services in Russia also are not passing up on the opportunity to use innovative digital technologies. In 2017, the OSA GO marketplace was launched to address the everyday needs of Russian motorists. With it, you can call a tow truck, consult with a lawyer online (even if a traffic police representative just stopped you and writes a fine, but you don’t know if it’s legal), call an independent expert to assess car damage in road accidents, order a mobile tire service, check the car for theft and much more.

The uberization model penetrates into all spheres of activity, including the field of crowdfunding. The proof is Indiegogo, an international crowdfunding platform that allows entrepreneurs to raise money for creative ideas.

One of the key e-commerce market development trends all over the world is making purchases in the marketplace in installments. It is convenient and profitable for the client to buy goods collected on one site, especially when they can be purchased in installments.

Thus, the online trading market is one of the fastest-growing in Russia today, so it is not surprising that so many players have emerged in this segment. Research company Data Insight

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predicts that while maintaining existing trends in the online trading market, its volume will grow by more than 2 times by 2023 compared to 2018 and will amount to 2.4 trillion rubles (excluding sales of services, prepared food, tickets, hotels, shopping, games).

In world practice, marketplaces have already overturned the structure of the retail market.

Therefore, the most expensive retailer in the world, Amazon already occupies more than 50% of the online trading market in the United States. In China, 30% of the non-food assortment is sold on the Internet, of which Alibaba accounts for 80%. For comparison, in Russia, e-commerce accounts for approximately 3% (1.1 trillion rubles) of the total retail turnover (more than 31 trillion rubles) (Baharev, 2019).

Experts identify two main trends in the further development of e-commerce. First, there is an enlargement of these sites: the number of large manufacturing companies selling their goods through marketplaces is growing. Secondly, on these Internet sites, more and more goods are sold from manufacturers of small and medium-sized businesses.

Summing up our small study, we find that in the global economic processes are increasingly being implemented in which startups using a digital platform to connect private clients and enterprises. In general, the efficiency of the process of “uberization" the economy based on marketplaces is characterized by the fact that (Popova, 2017): the transaction costs of customers are reduced by optimizing real-time economic value chains; a unified approach to all participants of UberService is organized, which balances the interests of independent market agents; the process is automated by eliminating human participation.

Global companies that have timely caught the trends of changes in the managerial paradigm are becoming leaders of change. A strategy for introducing changes based on digital technologies, a policy that allows balancing changes and stability by embedding an uberization model in a traditional management structure, allows companies, including Russian ones, to implement breakthrough innovative approaches to management.

3. RESULT It proved that the strategy of the leaders of change is key in the business environment, which refers to the innovative management techniques, based on the ability to quickly recognize and adapt to the changing environment.

An assessment of the dynamics of changes in the list of S&P500's largest corporations in the world revealed a relationship between the period of stay in the list to the influence of external factors, such as technological failures, new methods, and platforms as "Uberization", and internal problems such as the inadequacy of the applied business model to new markets, low responsiveness in response to competitors.

The main regularity in the modern market is determined: in the context of the annual increase in the variability of the external environment, the volatility of companies to such changes increases.

The main causes of volatility have been identified, the main of which is the high activity of direct investment, mergers, and acquisitions of corporations and the growth of global startups with a *Corresponding author (Mariya A. Gurina). Email: mariyagurina2018@gmail.com Š2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.02 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02A http://TUENGR.COM/V11/11A02A.pdf DOI: 10.14456/ITJEMAST.2020.21

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billion value; the most visible trends are formulated such as the most precarious is the position of current leaders; in order to maintain a competitive position, corporations need to carry out a twoway transformation, in terms of changing customer demands and in terms of changes.

Justified by the predominance of changes in management concepts to ensure leadership, in relation to the influence of modern technologies on information transformation, changes in business competitiveness, rethinking the concepts of leadership and success. The necessity to link changes management policy and applied modern technologies and market trading instruments has been proved, which will provide additional competitive advantages for companies to maintain leadership positions.

The decisive result of the study is the systematization of key change management policy tools, including policies aimed at creating the future; methods of searching and predicting changes; change implementation strategy; a policy of balancing change and stability.

The analysis of the development of marketplaces as a digital platform based on the use of a large array of analytical data made it possible to assess the market capacity in Russia, to identify a tendency to increase the turnover of Russian companies, but in general, the lag of Russian online trade from the global pace in this area is on average 20- 40 times (for example, 3% of the online trading market share in Russia compared with China's market share of 80%).

One of the conceptual directions in the study is to determine the conditions for the formation of a new managerial business model based on the spread of "disruptive" innovative technologies and the development of Uber platforms.

The practical significance of the research results is to substantiate the main advantages of marketplaces for consumers and sellers, which are manifested in the accumulation of new technologies and stimulation of competition; the possibility of making money with almost no startup capital; Improving communication and sales quality through a digital interaction history.

Results of the study of the dynamics and factors of online-trading markets made it possible to generalize the trends in the distribution of marketplaces, as the main element of the uberization model of managing global companies, in the direction of developing new methods of sales, enlarging electronic platforms and increasing the diversity of goods and players.

It is proved that the effectiveness of the uberization model based on the application of marketplace technology is mainly determined by the optimization of the economic value chain and the reduction of transaction costs.

4. CONCLUSION The studies show that today revolutionary changes are taking place in management concepts, and the information revolution and other global events are radically changing the competitiveness of the business, changing the understanding of leadership, labor relations and the success of the company. One of the promising models of business organization in the global economy is Uberization, which relies on digital platforms.

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4. AVAILABILITY OF DATA AND MATERIAL Data used or generated from this study is available upon request to the corresponding author.

5. REFERENCES Ansoff, H. Igor. (1979). Strategic Management. Palgrave Macmillan UK, 236 pp.

Website for informational messages of ROSBUSINESSKON-SALTING JSC: Alibaba. [Electronic resource] URL: https://quote.rbc.ru/company/1021 (In Russian) Alstyne M., Parker G., Choudary S. (2017). Platform revolution. - New York: Norton & Company.

Ander R., Kapoor R. Value creation in innovation ecosystems: How structure of technological interdependence affect firm performance in new technology generations // Strategic Management Journal. 2010. 31, 306-333.

Bakharev I. The largest marketplaces of Russia: analytics SimiliarWeb. [Electronic resource] URL: http://E-PEPPER.ru (In Russian) Chesbrough H. (2006). Open Innovation: The New Imperative for Creating and Profiting from Technology. Harvard Business Press.

Chaffey, Dave; Ellis-Chadwick, Fiona. (2016). Digital Marketing: Strategy, Implementation and Practice. Harlow: Pearson Education. 94-96. - ISBN 978-1-292-07764-2.

Glazacheva T. (2019) Marketplaces of Russia: how they work and in what direction they are developing? [Electronic resource] URL: https://www.retail-loyalty.org/expert-forum/ (In Russian) Gurina M.A., Rumyantseva Yu.V. System challenges of the fourth industrial revolution: Uberization as a new business model // Issues of innovative economy. 2019. 9(3). (In Russian) Hiroshi Mikitani. (2014). Marketplace 3.0. A new look at online trading from the founder of Rakuten one of the largest online stores in the world. M .: Mann, Ivanov and Ferber Publishing House.

288 p.

Innosight Strategy and Innovation Consulting [Electronic resource] URL: https://www.innosight.com Khosrow-Pour, D.B.A., Mehdi - editor. (2018) Advanced Methodologies and Technologies in Digital Marketing and entrepreneurship. IGI Global, pp 122-123.

Kuntsman A.A. Transformation of the internal and external business environment in the digital economy. Management of economic systems. 2016, 11(93), 1. (In Russian) Mehdipour, H.R.N. Persian Bazaar and Its Impact on Evolution of Historic Urban Cores: The Case of Isfahan. The Macrotheme Review [A multidisciplinary Journal of Global Macro Trends]. 2013. 2(5).

Mustafa R., Werthner H. Business Models and Business Strategy - Phenomenon of Explicitnes.

International Journal of Global Business & Competitiveness. 2011. 1.

Nabyla Daidj. (2018) Uberization (or Uberification) of the Economy. Telecom Ecole de Management, France, IGI Global. 2354 p.

Peter F. Drucker, John White (1999). Management challenges for the 21st. Harper Collins. 207p.

Popova I.V., Huseynova A.A. “Uberization” of the Russian economy: goal, disadvantages, advantages, prospects. Young researcher Don. 2017. 4(7), 165-168. (In Russian) *Corresponding author (Mariya A. Gurina). Email: mariyagurina2018@gmail.com ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.02 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02A http://TUENGR.COM/V11/11A02A.pdf DOI: 10.14456/ITJEMAST.2020.21

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Rumyantseva Yu.V. Opportunities for the Uberization of the Russian Economy. In the collection: Strategies to counter threats to the economic security of Russia Materials of the All-Russian Scientific and Practical Conference. 2018. 242-247. (In Russian) Rumyantseva Yu.V. To the question of the relevance of the study of Kondratyev’s long waves. In the collection: Sustainable development of Russia in the period of instability: external challenges and prospects Materials of the XII full-time international scientific-practical conference. 2018.

40-45.

Schwab Đš. (2017). The Fourth Industrial Revolution. Penguin UK, 16-75.

Schmidt E. (2015) How Google Works [translation from English]. Moscow: Eksmo. (In Russian).

Dr.Mariya A. Gurina, PhD in Economics, is an Associate Professor at Public, Municipal Service and Management Department, Russian Presidential Academy of National Economy and Public Administration, Lipetsk branch, 398000, Russia. She can be reached at mariyagurina2018@gmail.com.

Dr.Yuliya V. Rumyantseva, PhD in Economics, is an Associate Professor, at the Management Department, Lipetsk State Technical University Lipetsk, 398000, Russia. She can be reached at lstu @ gmail.com.

Dr.Tatiana I. Liberman, PhD in Economics, is an Associate Professor, at the Public, Municipal Service and Management Department, Russian Presidential Academy of National Economy and Public Administration, Lipetsk Branch, 398000, Russia. She can be reached at liber.ti @ mail.ru.

Dr.Irina S. Shchetinina, PhD in Technical Sciences, is an Associate Professor at the Public, Municipal Service and Management Department, Russian Presidential Academy of National Economy and Public Administration, Lipetsk Branch, 398000, Russia. She can be reached at shetinina62 @ mail.ru.

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©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies

International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies http://TuEngr.com

PAPER ID: 11A02B

SPATIAL ANALYSIS ON MALAY BUILDINGS FOR CATEGORIZATION OF MALAY HISTORIC BIM LIBRARY a*

b

b

Muhammad Hadi Mustafa , Maisarah Ali , Kamsiah Mohd Ismail , a a Khairusy Syakirin Has Yun Hashim , Mohamad Saifulnizam Suhaimi a

Department of Quantity Surveying, Kuliyyah of Architecture and Environmental Design, International Islamic University (IIUM), MALAYSIA. b Department of Civil Engineering Kuliyyah of Engineering, IIUM. MALAYSIA. ARTICLEINFO

A B S T RA C T

Article history: Received 06 April 2019 Received in revised form 19 June 2019 Accepted 30 October 2019 Available online 12 November 2019

In Malaysia, Malay cultural architecture is becoming a popular topic since Malay architecture is believed to have unique characteristics, which would be beneficial if translated into Building Information Modelling (BIM) environment. However, a BIM library needs a localized system and categorization for its interface since a cultural heritage library should reflect their own original identity of Keywords: architecture. From literature, it was found that the traditional design Historic Building Information Modelling; form in Malay architecture can be identified through several aspects Malaysia historic BIM; that are inherent physical elements in the design which can be sorted into five distinct categories which are (i) Structural members (ii) Malay architecture; Non-structural members (iii) Aesthetic and decorative elements (iv) Cultural heritage; Spatial composition and organization and (v) Material and construction Spatial configuration technology. In order to develop a BIM library with cultural identity, analysis; BIM library this paper further the study on the characters of Malay architecture categorization. based on the spatial composition and organization aspect with respect to the theory of space and taxonomy. Spatial analysis on the layout of multiple historic Malay buildings consisting of palaces and a commoners’ house were conducted where the naming of areas within the building zones was identified and presented to propose a novel categorization structure for Malay Historic BIM library. This study proposed an approach on how to address the issue of developing a BIM library based on the cultural architecture characters.

Disciplinary: Multidisciplinary (Civil Engineering, Architectural Sciences, Heritage Science). © 2020 INT TRANS J ENG MANAG SCI TECH.

1. INTRODUCTION Investment in technology has always been to improve effectiveness and increase performance in the design and build process to yield a higher return of investment at the end of the day (Mohd-Nor *Corresponding author (M.Hadi Mustafa) Tel: +603-61964000 Ext.4564 Email: hadimustafaphd@gmail.com ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02B http://TUENGR.COM/V10A/11A02B.pdf DOI: 10.14456/ITJEMAST.2020.22

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and Grant, 2014). Due to the benefits of Building Information Modelling (BIM) and its huge potential of improving the Architecture, Engineering and Construction (AEC) industry, governments around the world have started to mandate the use of BIM in their own country as part of their initiatives to achieve Sustainable Development Goals (SDG) and embracing the Industrial Revolution 4. BIM is a process for creating and managing information on a construction project across the project lifecycle (National Building Specification, 2016). Among the main objectives of BIM is to support the decision-making process in a project, offer improved quality assurance and data exchange in the process. It is also meant to increase the effectiveness and efficiency of any design work because designing tasks are time-consuming. Using BIM, architects are able to virtually construct the building before physical construction begins on site. To increase design efficiency, among the approach that BIM offers to speed up the design task is with the creation of BIM library. By having a BIM database or library, it eliminates the redundancy of creating similar elements, thus reducing unnecessary workload for designers. BIM models are capable of embedding key building information into the model including materials with their physical properties.

BIM libraries are performing as online sources for building product models. It is important to have proper organisation and categorization within the database in order to effectively use it. With BIM has managed to establish itself in the designing, planning and execution stages of projects, many BIM practitioners and BIM providers embark on sharing their work on various platforms. Among platforms that are popular for these practitioners to share are RevitCity, BIMObjects, NBS National BIM Library, MYBIM library, Arcat, Smart BIM library, and BIMsmith. The contents are mostly generic BIM model which focuses on simple and contemporary design. Most designs are found to be contemporary because BIM approach is originally intended for the design process of new projects.

However, according to Afsari and Eastman (2014), there are no standards or guidelines in organizing the objects systematically within the database. Apart from that, none of the libraries has a specific-theme library based on cultural architecture or designs from over the world.

While cultural architecture carries its own diversely unique identity and characters, it is always essential to appreciate diversity. Therefore, it is imperative in order to create a BIM library based on cultural architecture, and BIM practitioners should establish the library based on the culture's character and identity instead of having a generic BIM library categorization.

Among unique cultural architecture available worldwide is the Malay architecture. According to the Merriam-Webster dictionary, Malay is a member of a people of the Malay Peninsula, eastern Sumatra, parts of Borneo, and some adjacent islands. The characters of Malay architecture is unique because its characters are believed to be inherited from their legacy of an irreplaceable source of Malay lifestyle, history, and inspiration (Sim, 2010). The authors such as Said (2007) and Sim (2010) complemented that Malay has invented one of the most sophisticated and amazing houses, kenned as traditional Malay houses. There are also researches mentioning that Malay has high skills in woodcarving and their beautiful artworks are represented in their houses and buildings (Ismail et al., 2015).

This paper's objective is to analyze the spatial arrangement from historical Malay buildings in order to propose the categorization in Malay Historic Building Information Modelling (MHBIM) library. In identifying and studying the main characters of the Malay architecture, this study reviews

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and analyses on spatial arrangement because space can be considered as the basic language in architecture. Finally, the findings will act as the basis for organizing the database, to facilitate the use of the library. The main aim of this study is to address the issue of developing a BIM library based on the Malay cultural architectural characters.

2. THEORY OF SPACE IN ARCHITECTURE Space is an important aspect of architecture. Space creates a special relationship between function and social meanings in building (Hillier and Hanson, 1984). According to them, the order of space in buildings is really about the order of relations between people.

“Architecture is not a 'social art' simply because buildings are important visual symbols of society, but also because, through the ways in which buildings, individually and collectively, create and order space, we are able to recognise society: that it exists and has a certain form.” (Quoted from The Social Logic of Space, Page 2.)

The theory of space in architecture proposed by Rudolph Micheal Schindler in the eighteenth century mentioned that architecture is an art that had evolved to a more sublime and abstract level by relinquishing its symbolic capacity to speak (Park, 2015). He argues that the notion of space in architecture dealt with mental processes as space was being conceived. Therefore, the form creation in architecture referred not only to the act of physical fabrication but also to the entire mental process that led from inception to completion. The theory also argues that ‘human beings could not conceive space’ but instead always conceived rooms. However, Yuan (1987) claims that Malay architecture is unique because most of the Malay accommodation is divided into areas, rather than rooms, for various social and household activities. Abidin (1981 as cited in Hoseini et al., 2014) divided the areas into four zones, the Front Zone, Main (Middle) House Zone, Kitchen Zone and Rear Zone.

Figure 1: Typical Traditional Malay house layout (Hoseini, 2014)

*Corresponding author (M.Hadi Mustafa) Tel: +603-61964000 Ext.4564 Email: hadimustafaphd@gmail.com ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02B http://TUENGR.COM/V10A/11A02B.pdf DOI: 10.14456/ITJEMAST.2020.22

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2.1 MALAY ARCHITECTURE In Malaysia, it is difficult to define Malay architecture due to the term “Malay” itself, which is not clear (Moqbel, 2014). According to the Malaysian constitution, Malay is defined as "a person who professes the Muslim religion, speaks the Malay language, and conforms to Malay customs”. In the meantime, the definition of Malay cannot be limited to Malaysian only if the physical attributes of humankind are considered. Malay architecture, is a subset of South East Asian architecture, and being rooted in the Malay archipelago, its geographical reality of widely dispersed lands has made the Malay cultural region, a wide, regionally and cultural diverse entity and this diversity is also rich in terms of both physical expression and verbal expressions of its local architecture. The similarities in colour of the skins, historical background such as their previous common kingdom, civilization, religions, beliefs and DNA of the people living in the Malay Archipelago might play an important factor as observed by Alfred Wallace (cited in Van Whye, 2015): “Two very strongly contrasted races inhabit the Archipelago—the Malays, occupying almost exclusively the larger western half of it, and the Papuans, whose headquarters are New Guinea and several of the adjacent islands.”

The architecture that reflects regional influence is known as ‘vernacular’. The term ‘vernacular’ is derived from the Latin ‘vernaculus’, meaning native, and is most widely used to denote indigenous, tribal, folk, peasant and traditional architecture. According to Chen (1998), vernacular house forms evolved according to different cultural settings and are the results of long-term modifications, adaptations, shared experiences and innovations. The terms ‘vernacular’, ‘traditional’, ‘indigenous’, and ‘regional’ are often used interchangeably (Sim, 2010). Due to the richness of cultures of the Malay within the Malay Archipelago, it is difficult to define Malay architecture unless a well-justified scope can be established. Anis et al. (2017) attempted to define the scope based on cultural influence with historical Malay palaces in Malaysia and found that there are eight influences affecting Malay architecture that can be grouped together. The influences identified are labelled as ‘Region 1 – Langkasuka Heritage, Region 2-North Straits of Malacca, Region 3- ‘The Perak,Selangor, Deli, Siak, Kampar and Langkat” region, Region 4-Minangkabau Diaspora, Region 5- Riau Palembang diaspora, Region 6- ‘The Johor,Riau and Lingga”, Region 7- East Malaysia and West Borneo, and Region 8- “Makassar,Palembang, Maluku, Bulungan and Buton’ grouping (Anis et al. , 2017).

Mohidiin et al. (2012) argue that the architecture of administrative buildings in Malaysia can be grouped into six (6) influences or styles namely ‘1.Traditional vernacular style 2.Dutch colonial-style 3.Neo baroque style 4.Anglo-India style 5. Modern expressionism style 6. Post-modern revivalism style’. This search for identity shows that there are various traditional and hybrid Malay house forms can be identified within the region (Yuan, 1987).

2.1.1 CHARACTERISTICS OF MALAY ARCHITECTURE AND THEIR CATEGORIZATION OF COMPONENTS The authors such as Said (2007) and Sim (2010) complemented that Malay has invented one of the most sophisticated and amazing houses, kenned as traditional Malay houses. The house is believed to be inherited from their legacy of an irreplaceable source of Malay lifestyle, history, and inspiration. Undeniably, the architectural design of a traditional Malay house is unique on its own. Its uniqueness in the design has reflected the identity of the owner, socioeconomic, culture and history of

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the past. However, the design may look similar in nature (kindred), but the styles of Malay houses differ from state to state in Malaysia. In other words, the houses are identically in function but diverse in design. The houses generally accommodated Malaysia's tropical climate, with flexibility in the design and utilization of space.

According to Md. Nor and Isa (2015), the traditional design form in Malay architecture can be identified through several aspects that are inherent physical elements in the design. These elements can be sorted into five distinct categories.

1.

2.

3.

4.

5.

Structural members.

Non-structural members Aesthetic and decorative elements.

Spatial composition and organization.

Material and construction technology

2.1.2 STRUCTURAL, NON-STRUCTURAL, AESTHETIC AND DECORATIVE ELEMENTS, MATERIAL AND CONSTRUCTION TECHNOLOGY Structural members of a building are the components such as beam and columns which primarily carry the load of the building. Non-structural components include doors, windows, railing, decorations, and roof. According to Yaaman & Azrin (2013), Roszalan (2014) and Raktim (2016), a typical traditional Malay house consists of plinth, column, and beam as their structural members; roof, wall, floor and openings such as door and windows as non-structural members, and decorations of motifs as their aesthetic elements. The traditional Malay houses are a functional product of human-made architecture (Yuan, 1987), for a total consideration of design values, which is embedded many conceptions, notion, and ideology in one unit which the experience of the entire house is achieved through the sensory factors. The materials used are normally from high strength grade timber such as Cengal for the structural members while a softer grade timber such as Meranti, Jati or Merbau are used for the non-structural and decorative components. Among the characters of Malay house is because of the ‘tanggam’ or mortice and tenon technique used, where the house was constructed without using nails. The technology used is environmental-friendly and considered as unique workmanship in the construction field.

2.1.3 SPATIAL COMPOSITION AND ORGANIZATION Among other characters of Malay buildings' architecture is the spatial composition and organization. The architecture from the Malay race is unique because most of the Malay dwellings are divided into areas, rather than rooms, for various social and household activities (Moqbel, 2014). The typical plan layout of a Malay house is normally discussed according to zones, the inhabitants' interactions through daily activities (functional components), domains that are gender-related, age-related and guest-related. Abidin (1981 cited in Ghaffarian Hoseini et al., 2014) divided the zones into four, the Front Zone, Main (Middle) House Zone, Kitchen Zone, and Rear Zone. Many other works of literature, on the other hand, zoned the interior spaces into public and private spaces or in accordance with functional elements. In Malay history, the palaces and aristocratic houses are exaggerated or scaled up according to certain proportion from houses due to its main construction arising from timber (Wong, 2011; Anis et al., 2017). Therefore, it is believed that there must be *Corresponding author (M.Hadi Mustafa) Tel: +603-61964000 Ext.4564 Email: hadimustafaphd@gmail.com ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02B http://TUENGR.COM/V10A/11A02B.pdf DOI: 10.14456/ITJEMAST.2020.22

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standard conventions that link smaller scale typologies such as houses with complex typologies such as palaces. Anis et al. (2017) stated the ‘rumah ibu' could be referred to the main lobby of a palace.

The main lobby is assumed to have a ‘tiang seri’ which normally is positioned in the centre of ‘rumah ibu’. Rumah ibu, as the core space of the house, which may refer to two things: the volume of the main house and space inside to serve as living room in the daytime and bedroom at night. Chen et al.

(2008) suggested that the main area of Malay building is quite distinctive for having the largest volume and the highest roof. They claimed that there are three main spaces that form a quite rigid layout relationship in Malay house which are the Serambi, rumah ibu and kitchen. Serambi functions as the reception area, dining room or bedroom for the guests, and the floor can be sat or slept on. The kitchen basically is the space for cooking and eating (Chen, 1998). This similarity of components application within the spatial organizations give Malay architecture a sense of their own cultural character. In addition, Lim (1987) also observed that the main building of a Malay house can be considered the prototype for all of its associated buildings, and can be considered as the pivot from which various ways of expansion are developed into different house types in different areas in terms of spatial organization and construction method. He claimed that there would be more diversified spatial and formal transformations through the input of some foreign construction language such as verandah or balcony, which refers to the front area of the building, similar to serambi.

2.2 BIM LIBRARY A BIM library is a database consisting of BIM objects where the contents can be downloaded, edited and utilized for the benefits of design utilization. BIM libraries simplify the process of finding appropriate objects for a design (NBS, 2018). The objective of creating a BIM library is to capture information that will be beneficial to solve the customers' issues, pains, and goals. Ultimately, the library becomes the foundation for building decision-making tools that are capable of measuring cost reductions, cost avoidances and values added. Building a high-quality value inventory or database takes time and effort, but the payback comes tenfold. The main aim of having a database is to improve the sharing of information between different professionals within a project, to solve the interferences between them, avoiding the creation of mistakes, decreasing costs, obtaining good results. Among the main benefits of having a BIM library are: 2.2.1 IT ENHANCED COLLABORATION AND TRANSPARENCY Using BIM library, it helps to enhance the collaboration between project stakeholders where the information is embedded inside the BIM objects. It has standardized information which referred to as a one-stop centre for information resources. By having standardized information embedded which can be easily accessed, it increases working transparency and reduces the risk of ambiguity in executing construction project. With BIM, all parties are encouraged to work collaboratively and share information with each other, where the library provides act as a better platform to share information efficiently.

2.2.2 KNOWLEDGE IS EASILY TRANSFERRED With all stakeholders referring to and using the same model, significant time is saved, and the transfer of knowledge within teams and between different parties is streamlined. Automation and customisation features can also help in reducing the time spent communicating and adding new information. Through the library, it provides a reliable and sustainable way to transfer information

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about data such as measurements, materials, description and maintenance instructions.

2.2.3 THE BIM MODEL IS AVAILABLE FROM ANYWHERE, AT ANY TIME Most of the BIM library is cloud-based web services, which means the objects and data are accessible with the connection of the internet.

2.2.4 BIM LIBRARY AS DECISION SUPPORT SYSTEM FOR CULTURAL HERITAGE MANAGEMENT By having BIM library, it enables a more efficient way of working, with consequent time and cost-saving (Giudice and Osello,2013). The availability of BIM objects suitable for industrial elements and modern architecture can be usefully applied to heritage documentation and management of the data on conservation practices. The availability of BIM library can help in supporting preventive conservation, information sharing and knowledge dissemination of heritage, for professionals, public institutions and experts involved in any decision making process.

3. METHODOLOGY In studying the architecture of Malay, there are many buildings typologies such as the palaces, aristocrats’ houses, commoners’ houses, mosques, and administration buildings. For this paper, researchers will study on the commoners' house and Malay palaces only because it is believed that palaces are the exaggeration of scales from commoners houses (Wong, 2011 and Tengku Anis et al.

2017). Multiple case studies technique is applied where six (6) Malay palaces and two (2) commoners house in Peninsular Malaysia are selected, and their building layouts are retrieved. The buildings are Istana Balai Besar Alor Setar (Kedah), Istana Balai Besar Kota Bharu (Kelantan), Istana Seri Menanti (Negeri Sembilan), Istana Tengku Long (Terengganu), Istana Gahara (Perak), Istana Leban Tunggal (Pahang), Rumah Pak Ali (Selangor) and Rumah Haji Akil (Johor). This study uses historical research strategies as its methodology due to its focus on ‘a setting or circumstances from the past' in attempts to provide the meaning of human actions conducted from encounters with the subject of investigation or derived from ‘textual-archival or artefactual sources' and fieldwork (Groat & Wang, 2013). Historical research depends on a constructed logic of interpretation, but that interpretation is based on documents and artefactual evidence, and typically entails a narrative structure. Therefore, data are collected through literature review and variety sources of Malay building documentation such as measured drawing reports and CAD documentation to explore the enquiry of this paper.

4. ANALYSIS 4.1 TAXONOMICAL CATEGORIZATION OF AREAS IN MALAY BUILDINGS Based on the buildings' layout, researchers study their spatial arrangement by identifying the zoning within the layout and extracted the naming of areas given in the layouts. Buildings' layout was collected from International Islamic University Malaysia's Kuliyyah of Architecture and Environmental Design Heritage Laboratory and Universiti Teknologi Mara (UTM) Center for the Study of Built Environment in the Malay World (KALAM). The marking for boundaries of the zoning starts from the front entrance and the ending boundaries for the zoning is considered when there is a change of function within areas (Gullberg, 2016). For example, the front zone ends when the *Corresponding author (M.Hadi Mustafa) Tel: +603-61964000 Ext.4564 Email: hadimustafaphd@gmail.com ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02B http://TUENGR.COM/V10A/11A02B.pdf DOI: 10.14456/ITJEMAST.2020.22

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area of rumah ibu starts. The analysis is shown in Figures 2, 3 and 4, whereas the outputs are tabulated in Tables 1 and 2.

Figure 2: Spatial analysis of commoners’ house layout.

4.1.1 TRADITIONAL MALAY HOUSE From the commoner's house layout, areas are found as given in Table1.

Table 1: Areas found in commoner's house layout No 1 2 3 4 5 6 7 8

8

Rumah Pak Ali Rumah Tengah Ruang Makan Rumah dapur Selang Rumah Masuk Bilik tidur Bilik Setor Serambi Source: Authors’ work

Rumah Haji Akil Source: KALAM (2017) Serambi Pelantar Rumah dapur Rumah Ibu Rumah Depan Bilik Para-para (anjung) Jambatan (Selang)

M. Hadi Mustafa, M.Ali, K. Mohd Ismail, K. Syakirin H.Y. Hashim, M. Saifulnizam Suhaimi

Source: KAED HERITAGE LAB (2017)

Source: KALAM (2017)

Figure 3: Spatial analysis of Malay palaces' layout. *Corresponding author (M.Hadi Mustafa) Tel: +603-61964000 Ext.4564 Email: hadimustafaphd@gmail.com ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02B http://TUENGR.COM/V10A/11A02B.pdf DOI: 10.14456/ITJEMAST.2020.22

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Figure 4: Spatial analysis of Malay palaces' layout.

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M. Hadi Mustafa, M.Ali, K. Mohd Ismail, K. Syakirin H.Y. Hashim, M. Saifulnizam Suhaimi

4.1.2 MALAY ROYAL PALACES From the Malay Royal Palaces’ layout, areas are found as given in Table 2.

Table 2: Areas found in Malay palaces layout No 1 2 3 4 5 6 7 8 9 10 11 12 No 1 2 3 4 5 6 7 8 9 10 11

Istana Tengku Long Source: KALAM (2017) Surung Balai Dapur Rumah padi (storage) Pelantar Serambi Ruang Mengadap Bilik santapan Ruang tengah Ruang khas Bilik peraduan Bilik Bersiram Istana Balai Besar Alor Setar Grand Staircase (Porch) Dewan Balai Lepau Serambi Kanan Serambi kiri Singgahsana Bilik Siak North Wing South Wing

Istana Balai Besar Kota Bharu

Istana Seri Menanti

Surung hadapan Surung tengah Surung Balai Bujur Pejabat Rumah ibu kelong Balai pacaparsida Balai perasapan Dapur Bilik Mesyuarat Setor

Serambi Pangkal Serambi Hujung Serambi Tengah Ruang santapan Ruang menanti Kelek anak Bilik Peraduan Lompang Langkan Ruang Keluarga diraja

Istana Leban Tunggal

Istana Gahara

Porch Guest living room Office Dining area Master bedroom Toilet Passage (selang) Storage Kitchen Family area Verandah

Verandah (serambi) Office Living area Entrance hall Dining area Bedroom bathroom Kitchen Servant’s room Hallway (Selang) Family area

5. RESULT AND DISCUSSION The output confirms that the layouts of Malay historic buildings can be categorized into the Front Zone, Main (Middle) House Zone, Kitchen Zone and Rear Zone as according to zonings proposed by Abidin (1981). This also confirms the claim by Wong (2011) and Tengku Anis et al.

(2017) that the palaces and aristocratic houses in Malay history are an exaggeration from houses. It can be deduced that the conceptually, the space between the typical house, palaces and aristocrat house have a similar ‘social logic of space". It is observed that the number of areas within the zone increases as the typology of the buildings changes from houses to palaces. The increase in the number of areas is due to the need for space's function. A normal house not necessarily has to accommodate visitors as often as, and the royalty might have to. According to Sim (2010), areas in Malay house normally started with ‘rumah ibu’ and will be expanded to other areas to accommodate the owner’s roles in society.

One of the famous mantras in architecture is "form follows function" as famously said by Louis Sullivan (Guimera and Pardo, 2018), which Sullivan credited the rule was actually originated from the ancient Roman architecture. From the analysis, it can be deduced that Malay architecture also adhered to the rule. As space plays an important role in society, the Malay community is observed to be adaptive in nature since they practice the concept of incremental housing. Incremental housing is an additional system of a building that grows with the needs and means of the owner (Yuan, 1987). *Corresponding author (M.Hadi Mustafa) Tel: +603-61964000 Ext.4564 Email: hadimustafaphd@gmail.com ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02B http://TUENGR.COM/V10A/11A02B.pdf DOI: 10.14456/ITJEMAST.2020.22

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The system being practice requires only a small initial capital investment and grows when the owner has the reason to expand their building. Normally, the incremental housing concept for traditional Malay house starts with rumah ibu and will be followed by other areas. This also can be deduced that among unique characters of Malay buildings is that they are flexible to changes. This is mostly possible since the materials are mainly made from timber. Figure 5 shows the common addition sequence as previously suggested by Yuan (1987).

Figure 5: Common addition sequences as suggested by Yuan (1987).

From this study's analysis and Yuan’s (1987) observation, it is observed that in Malay cultural architecture, the owner's status is among the determining factor on how the layout of their buildings will look. In short, as their status and ranking in society increases, they also change the type of house they reside in. It is also a show of power within society. Due to this societal behavior, researchers are aware that the list of areas identified within the zones might be innumerable as they may grow through evolution. In order to establish a universal categorization system for Malay historic BIM, it is important to identify the areas that should be considered according to the zonings system discussed.

From the observation of the case studies conducted, the summary of the result is tabulated.

5.1 SUMMARY OF AREAS IN THE ZONINGS Based on the literature review and analysis carried out, a system for categorization of the Malay Historic BIM library is proposed. It is found that the basic character of Malay architecture in terms of spatial composition and organization (Md. Nor and Isa, 2015) consists of private and public space, which can be further broken down as front zone, main zone, rear zone and kitchen zone (Abidin,1981) whereas the categorization for Malay building components can be categorised as 1) non-structural (architectural) 2) structural and 3) decorations (Md. Nor and Isa, 2015). In furthering the study on the zonings, the namings of areas are also identified and presented in Table 3.

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M. Hadi Mustafa, M.Ali, K. Mohd Ismail, K. Syakirin H.Y. Hashim, M. Saifulnizam Suhaimi

Table 3: Areas according to zones Front zone 1.

2.

3.

4.

5.

6.

7.

Serambi Anjung Porch Verandah Ruang Menghadap Ruang Menanti Foyer

Main Zone 1.

2.

Rear zone

Rumah Ibu 1. Rumah Tengah Bilik 2. Selang/Jambatan/Hallway Utama/Tidur/Bilik 3. Ruang Makan Peraduan 4. Rumah Depan 3. Rumah Tengah 5. Bedroom 4. Balai Rong Seri 6. Servant’s Room 5. Surung 7. Balai Pacaparsada 6. Office 8. Balai Perasapan 7. Living Area 9. Kelek Anak 8. Bilik 10. Yard Santapan/Ruang 11. Bilik Mandi Santapan Diraja 12. Serambi 9. Balai 13. Ruang Rehat 10. Galeri 11. Dewan Source: Authors’ work

Kitchen zone 1.

2.

3.

4.

5.

6.

7.

8.

Rumah Dapur Pelantar Storage/Rumah Padi Bilik Bersiram Bilik Persediaan Servant Room Washing Area Bilik Siak

There is an on-going debate on the use of terms for certain areas in Malay building since the analysis shows the same issue. The ‘Serambi’ is widely translated as ‘verandah’ (Zin, Ibrahim, Zain and Jamil, 2012), however according to Shireen et al. (2018), ‘serambi' denotes more of an outdoor room, a completely public area where people can congregate yet they are unable to enter beyond a certain boundary in the Malay house. This is a semantic issue, where certain meanings cannot be adequately captured if they are directly translated. However, for the purpose of this paper, the authors agreed that the usage of terms is beyond the current scope and the issue needs to be properly discussed by language experts. As for now, the system proposed for MHBIM will use the current term found in case studies.

Figure 6: Process of using the proposed library (Source: Authors’ work).

The structure of the system starts with the selection of public or private functions before moving on to the selection of zones. Inside the selected zones, there will be areas that commonly can be found within the selected zone. The areas within the zoning method can be expanded if there are more areas found to be relevant to the zones. Next, once an area is selected, the breakdown of components which can be normally found in the area is presented. From the categories, there will be various selections of BIM elements and components from the specified area for users to choose from. The system for the Malay BIM library is expected to help designers in their design and BIM practitioners with their practice. The flowchart in Figure 6 explains the process of how to use the system proposed, whereas Figure 7 shows the work breakdown system for the proposed library categorization. *Corresponding author (M.Hadi Mustafa) Tel: +603-61964000 Ext.4564 Email: hadimustafaphd@gmail.com ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02B http://TUENGR.COM/V10A/11A02B.pdf DOI: 10.14456/ITJEMAST.2020.22

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Figure 7: Breakdown of the categorization process for Malay Historic BIM library (Source: Authors) Since Malay buildings are rich with unique components such as ‘Tiang seri’ which normally located at ‘Rumah Ibu’ area within the Main Zone. Therefore, a coding scheme in locating the components within a Malay building is proposed to enrich the semantic of this cultural heritage BIM library. The main purpose of this enrichment is to set a guidance rule for designers so that the correct components can be placed at the correct location within a building. Hopefully, with this enrichment, the ‘Tiang Seri’ column which normally found at ‘rumah ibu’ area will not be located in other areas such as the kitchen area (serambi). This is important to protect the authenticity of the architectural character of the specific culture. Figure 8 shows the diagram of the proposed coding scheme.

Figure 8: Proposed coding scheme to enrich the cultural heritage BIM library’s semantic (Source: Authors’ work).

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M. Hadi Mustafa, M.Ali, K. Mohd Ismail, K. Syakirin H.Y. Hashim, M. Saifulnizam Suhaimi

6. CONCLUSION Malay society is rich in values and practice moderation within their lifestyle. Their architecture symbolizes harmony in the design and their logic of space as they only expand their houses when there is a need. In embracing Industrial Revolution 4.0, the utilization of tools such as BIM is encouraged by the government of Malaysia when they mandated that starting 2020, construction projects must be BIM-operated. Therefore, it is important to create a system that is universal and expandable that reflects the character of Malay building, to ensure the continued relevance of the proposed BIM library. By having this kind of library, it will increase the productivity of the industry and prepare the players to be more competitive in a good way. The library will provide access to industry players to consider components with Malay identity in their design. Apart from that, by utilizing BIM approach, the government’s aspiration to contribute to the world’s sustainable goal development also can be addressed.

7. AVAILABILITY OF DATA AND MATERIAL Data can be made available by contacting the corresponding authors

8. ACKNOWLEDGEMENT This research was supported by a grant (TRGS16-03-003-0003) from the Ministry of Higher Education Malaysia (MOHE). This research is also supported by Kuliyyah of Architecture and Environmental Design (KAED) and Kuliyyah of Engineering of International Islamic University Malaysia.

9. REFERENCES Abidin, W.B.b.W. (1981). The Malay House: Rationale and Change (Master Thesis). M.I.T., Massachusetts.

Cambridge.

Abbaszadeh, S., & Rabori, A. A. (2015). Study of Physical Elements Affecting Spatial Hierarchy in the Residential Complex, to Enhance Residents ' Satisfaction, Increase Sense of Privacy and Social Interaction, 4(1), 50–62.

Akgunduz, G., & Akkurt, H. B. (2012). The Reconstitution of Vernacular Architectural Patterns: The Interpretations of the Vernacular Housing Architecture of Bodrum. Paper presented at the 6th International Seminar on Vernacular Settlements, Famagusta, North Cyprus.

Anis, T., Raja, Q., Kadir, A., Shireen, P., Kassim, J., Syala, N. Majid, A. (2018). Identifying Malay Regional Character Through Aristocratic Architectural, (September).

Chen, Voon Fee “Architecture” The Encyclopaedia of Malaysia (Singapore: Archipelago Press, 1998) Foster, S. M. (1989). Analysis of spatial patterns in buildings (access analysis) as an insight into social structure: Examples from the Scottish Atlantic Iron Age. Antiquity, 63(238), 40–50. https://doi.org/10.1017/S0003598X00075566 Ghaffarian Hoseini, A., Berardi, U., and Dahland, N. D.. (2014). the Essence of Malay Vernacular Houses : Analysis of the Socio-Cultural, (January).

Groat, Linda & Wang, David (2013). Architectural Research Methods (2nd Edition). USA: John Wiley & Sons.

Gullberg, J. (2016). Voids and bodies: August Schmarsow, Bruno Zevi and space as a historiographical theme. Journal of Art Historiography Number, (14).

Hadi, Idham & Isa, Siti. (2015). PRELIMINARY STUDY OF MALAY TRADITIONAL DESIGN AUTHENTICITY IN MALAYSIAN TOURIST ACCOMMODATION FACILITIES. *Corresponding author (M.Hadi Mustafa) Tel: +603-61964000 Ext.4564 Email: hadimustafaphd@gmail.com ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02B http://TUENGR.COM/V10A/11A02B.pdf DOI: 10.14456/ITJEMAST.2020.22

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Herrmann, W. Gottfried Semper: In Search of Architecture, Cambridge: The MIT Press, 1989.

Hillier, B., & Hanson, J. (1984). The Social Logic of Space. Cambridge: Cambridge University Press. doi:10.1017/CBO9780511597237 Hosseini, E., Mursib, G., Nafida, R., & Shahedi, B. (2016). Malay Vernacular Architecture: Mirror Of The Past, Lessons For The Future MALAY VERNACULAR ARCHITECTURE: MIRROR OF THE PAST, LESSONS FOR THE FUTURE, (November), 1–6.

John Thomas (2000): The meaning of 'style' in traditional architecture: the case of Gothic, The Journal of Architecture, 5:3, 293-306 Kamal, K. S., Ab Wahab, L., & Che Ahmad, A. (2004). Climatic design of the traditional Malay house to meet the requirements of modern living. The Malaysian Surveyor, (40), 43–48. Retrieved from http://buildingconservation.blogspot.my/2007/03/adaptation-design-of-traditional-malay.html Krygiel, E., Nies, N., and McDowell, S. 2008. Green BIM: Successful Sustainable Design with Building Information Modeling. Wiley Publishing, Indianapolis, USA. Mohd-Nor, M. F. I., & Grant, M. P. (2014). Building Information Modelling (BIM) in the Malaysian Architecture Industry, (January 2014), WSEAS_Journal_2014, page264-273.

Mohidin, H. A. B., Ismail, A. S., & Abdullah, A. M. (2012). A STUDY OF STYLES CLASSIFICATION AND INFLUENCES ON ADMINISTRATION BUILDING IN MALAYSIA ( 15 th – 21 st century ). Seminar of International Convention : Bridging Between Old & New, 1–18.

Montaser, A., & Moselhi, O. (2015). Methodology for Automated Generation of 4D Bim. 5th International/11th Construction Specialty Conference, 1–10.

Nor Hayati Hussain & Veronica Ng (2011). Historical Development on Modem Architecture in Malaysia.

World Architecture, 11/2011, 16-21.

Park, J. (2015). " House Growing out of Site ": The Case of Rudolph M. Schindler. Jaabe, 14(3), 513– 520. https://doi.org/10.3130/jaabe.14.513 Raktim Debnath, “Malay House, Vernacular Architecture of South-East Asia,” The Issuu Publisher, accessed March 16, 2017, Saatci, M., & Onder, D. E. (2015). Spatial hierarchy on vernacular houses in the Eastern Black Sea Region, Turkey. SSS 2015 - 10th International Space Syntax Symposium, 1–17. Retrieved from https://www.scopus.com/inward/record.uri?eid=2-s2.0 Said, S. (2007). The Grammar of Traditional Malay Long-Roof Type Houses Schumacher P. (2008), http://www.patrikschumacher.com/Texts/Space.htm Shahmie Roszalan, (2014). Case study Malay traditional house accessed https://issuu.com/shazmie/docs/case_study_malay_traditional_house on 24th April 2017

from

Shireen P. J. K., Ali M., Zainal Abidin N., Mustafa M.H., Abdullah A. (2018), Compositional-cultural evolutions as variations of Malay architectural and constructional vocabulary- a review, 18th International Conference on Language, Culture and Society 2018, ISTAC Kuala Lumpur Sim, S. (2010). Redefining the Vernacular in the Hybrid Architecture of Malaysia. Victoria University of Wellington Soltanzadeh, H. (1992), The entrance space of the old houses in Tehran, published by the Cultural Research Office in cooperation with the Municipality of Tehran, First printing The Races of Man in the Malay Archipelago. (2015). In Van Wyhe J. (Ed.), The Annotated Malay Archipelago by Alfred Russel Wallace (pp. 743-762). SINGAPORE: NUS Press. Retrieved from http://www.jstor.org/stable/j.ctv1xz0nk.50

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Wong-Wai-sung, B. A. E. D. B. A. (Hons) (Tasmania). (1995). Timber Structures in Malaysian Architecture and Buildings. Thesis, (March), 1–281.

Yaaman, N. Y., & Muhamad Azrin, R. (2013). Elemen-elemen Binaan Rumah Melayu Tradisional; Implementasi Dalam Bentuk Kontemporari.

Yuan, L. J. (1987). The Malay House Pinang: Institute Masyarakat.

Muhammad Hadi Mustafa is a PhD candidate at Kuliyyah of Architecture and Environmental Design, International Islamic University Malaysia. He did his Master's degree in Construction Project Management from the University of Manchester, United Kingdom after completing his first degree in Bachelor of Quantity Surveying at IIUM. His research areas of interest also include Building Information Modelling (BIM), the Application and practicality of BIM for the Heritage Sector.

Professor Dr. Maisarah Ali is Professor and Head of the Department of Civil Engineering, Kulliyyah of Engineering, International Islamic University Malaysia, Kuala Lumpur. Her specialist research field is in the area of Rehabilitation and Maintenance Structures, Bridge Inspection, Facilities Maintenance, Sustainable Building, Concrete, Traffic and Highway Planning, Renewal Energy, Water Environmental Planning, Occupational, Safety and Health in the construction and engineering sectors.

Dr Kamsiah Mohd Ismail is a Senior Lecturer and was the Head of the Department of Civil Engineering in Kulliyyah of Engineering, International Islamic University Malaysia, Kuala Lumpur. She holds a PhD in Engineering Education from Universiti Teknologi Malaysia. Her research areas include using Technology on the Structural Aspects of Heritage Buildings, Engineering Education, Engineering and Technology.

Dr. Khairusy Syakirin Has-Yun Hashim is in the Department of Quantity Surveying, Kulliyyah of Architecture and Environmental Design (KAED). He had his Master’s degree in Facilities Management and Asset Maintenance from Heriot-Watt University, Scotland, and his PhD in Facilities Management from Universiti Teknologi Malaysia. He has been seconded to the International Institute for Halal Research and Training (INHART), IIUM, and served as the Head of Consultancy. He and his team have innovated, copyrighted and commercialized the Muslim Friendly Hotel Rating System (MFHRS), and has certified hotels in Malaysia, Korea and Taiwan.

Dr Mohamad Saifulnizam Suhaimi was the Head of the Department of Quantity Surveying, KAED. He graduated with PhD in Construction Management from Queensland University of Technology (QUT). His research focusses on Value Management (VM), Relationship between VM, Construction Procurement and Building information modelling (BIM) that influenced construction performance, Value Engineering and Cost Control.

*Corresponding author (M.Hadi Mustafa) Tel: +603-61964000 Ext.4564 Email: hadimustafaphd@gmail.com ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02B http://TUENGR.COM/V10A/11A02B.pdf DOI: 10.14456/ITJEMAST.2020.22

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©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies

International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies http://TuEngr.com

PAPER ID: 11A02C

CRITICAL ORGANIZATIONAL LEARNING FOR COST LEADERSHIP STRATEGY AND PERFORMANCE: STUDY OF TELECOM SECTOR IN PAKISTAN a

a*

a

Adil T. Paracha , Wajid Shakeel , Malik Faisal Azeem , and Malik J. Saboor a

a

Department of Management Sciences, COMSATS University Islamabad, PAKISTAN.

ARTICLEINFO

A B S T RA C T

Article history: Received 19 June 2019 Received in revised form 29 August 2019 Accepted 12 September 2019 Available online 12 November 2019

This study illustrates the relationship between cost leadership strategy to organizational performance through organizational learning that was studied via its dimensions including External Knowledge Acquisition, Knowledge Distribution and Internal Knowledge Acquisition. The subjectivity of this study is to examine the criteria for measuring organizational performances outcomes via organization Keywords: learning dimensions in telecom sector organizations. This study is an Knowledge dimensions; Knowledge distribution; effort to answer the literature gap regarding link of cost leadership strategy towards performance with organizational learning in context.

Organization learning dimensions; Organization Extensive literature on organizational learning has been reviewed and performance; External their limitations were identified. Self-administered questionnaires were Knowledge Acquisition; mailed for this study to telecom sector in Pakistan. Cost leadership Internal Knowledge strategy via organization learning dimensions have been found to be Acquisition. having significant impact on growth and overall organizational performance.

Disciplinary: Management Sciences and Mathematics (Statistics). © 2020 INT TRANS J ENG MANAG SCI TECH.

1. INTRODUCTION For last few decades one of the interested areas for the researchers had been Analysis and connectivity among strategy and performance. Many studies had been further made on the strategies proposed (Miles et al., 1978, Porter, 1980). Although performance can be affected by applying different strategies, but still to attain success in competition organizational learning is a critical factor (Bapuji and Crossan, 2004). Developing advanced customer value for long run is Organization learning (Kandemir and Hult, 2005). The current research has intensively studied the links used, among theories, frameworks and constructs, to ensure gaps in the literature. The relationship among organization’s generic strategies, organization learning, innovation and firm’s performance, has been examined earlier, but in different studies not in one and in pieces too. Relationship among the above mentioned variables is studied collectively in current study. *Corresponding author (Wajid S. Ahmed). Tel: +331-6091264. Email: wajid_shakeel@comsats.edu.pk ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02C http://TUENGR.COM/V10A/11A02C.pdf DOI: 10.14456/ITJEMAST.2020.23

1

Selecting different activities that carry exclusive blend of value is Strategy (Porter, 1991). Strategy focuses on three parts. First the maintain a fit between a company’s competitive environment and company, second the resource allocation in between investment opportunities and third the willingness to take strategic view that is making long term investments earlier to have high returns in the long run (Hamel, 1993). Cost leadership (LC) or low cost provider strategy is among the generic strategies that a firm can pursue to attain the status of a firm with the lowermost cost production in the business (Porter, 1985). LC can be attained by various means such as direct access to raw materials, product or process innovation, attaining economies of scale in purchasing, production and production and making use of learning curve effects. Probability of performing above the average industry performance becomes high when a firm attains LC and charges less than its competitor.

Though the LC strategy has been studied by researchers comprehensively in different scenarios but not in association with the variables of the current study i.e. organization learning. This reach carries a new aspect in the management literature by exploring a rare blend of variables. This research fills up the gap of investigating LC strategy, organization learning and performance in a single frame work.

The objective of this research is to deeply examine the combination of above mentioned variables so as to increase the performance of business in today’s competitive environment. With a very sharp growth of 2.9 percent and Rs. 322 billion revenues the telecom sector is rapidly growing sector With (Wasti, 2014). The telecom sector organizations in competition need to focus on competitive strategy along with the critical factors of organization learning and innovation. In, order to reap maximum organization performance efforts on organization learning dimensions are required to be placed in the appropriate combination. Organizations of telecom sector of Pakistan face issue of fierce competition. Factors linked to the organizational performance have been studied in the current research. LC strategy and organizational performance has become more important for the knowledge based organizations due the dynamics of organization learning and high competition. Though the organizational performance and LC strategy has been empirically studied in numerous researches but fundamental forces of LC strategy into organizational performance are more complex. It is argued that they have not been tested with the mediation of external knowledge, internal knowledge and knowledge distribution.

1.1 SIGNIFICANCE OF THE STUDY Although LC has been extensively studied, but it has not been studied with external knowledge, internal knowledge and knowledge distribution as mediators. The model will serve as a configured way for the execution of the LC strategy with right mix of efforts in acquisition of external knowledge, internal knowledge and knowledge distribution. This study is helpful in understanding the LC impact on performance in link with the internal knowledge, external knowledge and knowledge distribution.

1.2 RESEARCH QUESTIONS

2

•

How LC strategy impacts on the organizational performance?

•

Does external knowledge acquisition (EKA), internal knowledge acquisition (IKA) and knowledge distribution (KD) act as mediators between the relationship of cost leadership strategy and organizational performance?

Adil T. Paracha, Wajid Shakeel, Malik Faisal Azeem, and Malik J. Saboor

2. LITERATURE REVIEW 2.1 COST LEADERSHIP The dynamic features about LC strategy should be considered in order to stay as an above average industry performer are: 1) level of differentiation must be near to the competitors and 2) in order to maintain its cost advantage, replicating the sources of competitive advantage should be hard for the competitors (Kay, 1993). An implication is that, instead of becoming a cost leader in the market, to be at a position just behind the cost leader is also good (Dietrich, 1993). The efficiency and effectiveness of generic strategies is reliant on many exterior factors prevailing in the environment like customer sensitivity to the price, loyalty towards brands etc. (Day, 1984). Relationship between charging lower prices to attain the customer having low price attraction and LC is strong than attaining customers by newness or representation (Miller, 1988). Being a price leader is more beneficial in a price sensitive market. If resources and skills of a firm are very hard to replicate, that firm can sustain LC for a long time Murray (1988). Attaining efficiencies in operation management is a way to take advantage from LC. The advantage of LC are temporary and long term profitability cannot be sustained, as advantage taken from operation management sustains only until the new and better resources (Eisenhardt and Martin, 2000).

LC strategy described itself well on short term. Economic recession of 2008 validates that, cost efficiency is the obligatory factor for the businesses pursuing LC strategy (Valipour et al., 2012). On the other end, value added creation is needed to justify the economic stability of the business (Valipour et al., 2012). If an organization is following LC strategy, firms performance can be enhanced by improving financial leverage and dividend payments (Valipour et al., 2012). Wada (2018) recommends that after the labor cost rise in developing countries, capability based cost leader ship strategies are appropriate for the firms. In addition, products and skills connectivity between the corporate core unit and the subsidiary is encouragingly linked to the divisions focus on the LC strategy (Pehrsson, 2017).

2.2 ORGANIZATION LEARNING The concept of organization learning has been the focus of attention of management, academicians and practitioners. Much awareness about organization learning has been raised (Senge, 1990). In early 2000s, learning was taken as an approach to enhance performance of the organization by the manager. Encouraging resource allocation efforts to stimulate learning in the organization are focused by Hussein et al. (2014). Many studies take organization learning dimensions of EKA, IKA and KD as mediating variable between the relationship of LC strategy and organizational performance.

Extraversion is the tendency to be energetic, warm, and aggressive. Individuals with extraversion tend to be more talkative, self-confident and their energy level is frequently high, so they are impatient. Extroversion according to Tupes and Christal (1961), is all about being, Adventurous, Energetic, Frank, Assertive, Social, Cheerful and Composed. Kurukulasuriya and Rosenthal (2013) reported high extraversion among employees and those with high extroversion were found proud, comfortable and happy which has also been confirmed by Bhatti et al. (2013). The extraversion appears to be social, action makeable, somehow first movers (Bhatti et al., 2013). Extraversion sometimes causes awkward social situations that may be hostile (Paris, 2017). According to Ott and *Corresponding author (Wajid S. Ahmed). Tel: +331-6091264. Email: wajid_shakeel@comsats.edu.pk Š2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02C http://TUENGR.COM/V10A/11A02C.pdf DOI: 10.14456/ITJEMAST.2020.23

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de Vries (2012), individuals, with high tendency of extraversion are mostly able to be more debatable, open to discussion and negotiable. Colbert et al. (2012) stated that the individuals with extraversion characteristics have a power to be socially dominant and be more interactive and communicative.

Agreeableness is defined as a person being, good natured, emotionally mature, cooperative, trustworthy, kind, adaptable and the one who is not jealous (Tupes and Christal, 1961). Individuals with high tendency of this trait are most likely to be generous, trusting, empathetic, capacity to bear etc. These individuals if are recognized and understood as extroverts, can be utilized as smooth role players. In today’s world whether socially or organizationally, all individuals need to be socially connected. According to Awais Bhatti et al. (2014), an individual having personality factor of agreeableness is sympathetic, devoted and caring. Individuals identified with agreeableness trait are usually considered generous, trusting, empathetic, and cooperative and carry good relationships with others (Phipps and Prieto, 2011). Moreover individuals carrying agreeableness have been found good in conflict resolution and perform better on their jobs (Bhatti et al., 2013). The tendency of agreeableness factor carries cooperation, cheerfulness, supportiveness, social responsiveness and harmony which makes individuals more flexible in adjustments (Phipps and Prieto, 2011).

Conscientiousness according to Tupes and Christal (1961) is defined as responsibility, dependability, conventionality, and preservance. Surgeons have been reported more conscientious than being carefree and irresponsible as compared to the rest of the population (Kurukulasuriya and Rosenthal, 2013). According to Sartori, et al., (2017), conscientiousness is one of the key drivers of job performance. Conscientiousness can also be referred as dependability (French, 1953) and conformity (Campbell and Fiske, 1959) and people who have high tendency of conscientiousness are identified as organized, and responsible ones. Colbert et al. (2012) found that such personality traits include hardworking, task completing, and very organized and highly responsible individuals. In addition to, a great deal with conscientiousness reveals that such individuals are achievement oriented because they are highly task competent which is a good sign for an employee (Judge et al., 2002).

Openness to Experience in ab-initio was identified as a cultural facet (Campbell and Fiske, 1959). Bhatti et al. (2014) narrated openness to experience as a reason of wide interest and exploring the social environment. The individuals who are open to experience are found aesthetically fastidious, socially polished, independent, cultured and imaginative (Tupes and Christal, 1961). Openness, according to Paris (2017) can be a source of performance and engagement. According to Kurukulasuriya and Rosenthal (2013), male individuals in hospitals are found to be more open and ready to go for new experiences as compared to the other gender. Openness to experience is highly sought-after trait to enhance productivity of the organization or improve the team performance, giving chances to new idea and creativity is one of the essential required skill and ability of leader.

Creativity is also seen as an important part of this trait.

Neuroticism is primarily associated with disturbance anxiety and tense personality. Tupes and Christal (1961) described neuroticism as neurotic, not placid or poised, hypochondriac, dependent emotionally immature and irresponsible. Neuroticism is a personality trait that is moody and always tense personality (Bhatti et al., 2013). Kurukulasuriya (2013) quoted the doctors and surgeons are less neurotic and more emotionally stable and thus their performance remain stable. Evidences exhibit that less neurotic or emotionally stable individuals are more likely to deal in troublesome, annoying and uncomfortable situation and have grip over the problems accurse there (Bhatti et al., 2013).

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Adil T. Paracha, Wajid Shakeel, Malik Faisal Azeem, and Malik J. Saboor

2.3 ORGANIZATIONAL PERFORMANCE Gaining lead among the competitors and evaluating the best typology is the basic issue in the area of strategic management (McGee, 2005). On the suitability of performance measures, no agreement has been made yet (Parnell, 2000, Beal and Yasai-Ardekani, 2000). Hindrances in the evaluation of firm’s performance like the future performance may get similarity with previous performance, due to feedback mechanism firm’s performance my get deviated and influences on organization may differ in long or short term, were identified by March and Sutton (1997). While opposing to it, firm’s performance is measured by financial and non-financial variables by a number of researches (Dess and Davis, 1984, Parnell, 2000, Dyer and Reeves, 1995). Link between performance and stakeholder’s satisfaction, performance in comparison to the competitors and ethical behavior are the non-financial variables studies in these researches. Performance is said as multi-facet variable (Ostroff and Bowen, 2000).

An eight item scale was developed to measure organizational performance by Aragón-Correa et al.

(2007). For objective evaluation, top managers were inquired about the firm’s performance based on return on assets, return on sources and growth in sales of their main products or services. Using the aforementioned variables, managers were asked to compare and scale their firm’s performance with respect to their competitors. A number of studies have employed subjective perceptions of managers to evaluate organizational outcomes. For evaluation of organization performance, both objective and subjective measures are said valid by a number of researches (Dess and Robinson, 1984).

2.4 COST LEADERSHIP STRATEGY AND ORGANIZATION PERFORMANCE The association among competitive strategy and firm performance can be marked out to (Bain, 1956, Mason, 1939) industrial organization framework, that portrays industry’s characteristics, where activities of industries structure drive profit of the organization primarily. Industry’s characteristics have much impact on organization performance (Barney, 1986). The second view is endogenous, where diversified organizational traits and conduct are the reason for organizational performance. In this viewpoint resource base theory holds supremacy. Better organizational performance may be attained via corporate strategy mechanism, is also suggested by different researchers. To impact the competition nature strategy is employed for the development of resources (Reed & Defillipi 1990).

An established macro and micro environment fits a firm pursuing strategy of LC (Miller, 1988). A LC firm, improves its chances to become an above average industry performer by charging lesser prices than its competitor firms. Whereas following the LC strategy, when a number of firms are employing same LC strategy without keeping them self at cost disadvantage, it becomes very hard for long run to sustain advantage in competition (Barney, 2002).

Practices and technologies that enhance efficiency and reduce costs, if these are transferred to competitors, it will quickly reduce the competitive advantage. Cost efficiencies attained via process improvements barely becomes a source of cost advantage, especially if any kind of contribution to such process improvement is made by suppliers, as it may act as a source of transfer of such practices to competitors. If competitor in the industry also starts operating business at the same or large level with same or more resources as the cost leader firm has, then cost efficiencies attained by economies of scale may disappear due to large scale of production. Organization learning is too considered an important source of advantage, but if there is a quick knowledge dispersion across competitors that, advantage does not remains sustainable (Murray, 1988). In addition learning orientation is considered *Corresponding author (Wajid S. Ahmed). Tel: +331-6091264. Email: wajid_shakeel@comsats.edu.pk ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02C http://TUENGR.COM/V10A/11A02C.pdf DOI: 10.14456/ITJEMAST.2020.23

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as critical factor for enhanced organizational performance (Kharabsheh et al., 2015). Furthermore capability based LC has been recommended strategy for the firms in developed countries after the growth in labor cost of developing countries (Wada, 2018).

H1: LC strategy has significance impact on organizational Performance.

2.5 COST LEADERSHIP STRATEGY AND ORGANIZATION LEARNING As per the resource based theory, organization’s abilities and resources are the source of its competitive business strategies plan. (Hunt and Morgan, 1995). An organization must have valuable, infrequent, unique, and non-substitutable abilities and resources to gain advantage in the competition through competitive strategies (Barney and Wright, 1997). Organization learning is an important ability as it can contribute in exploiting opportunities and decreasing the impact of threat and causing advantage in a competitive environment (Hult et al., 2003). Organization learning helps to acutely understand the macro and micro environment of firm in which it is operating, so it can more competently satisfy customer’s needs and improve the efficiency of this process (Sinkula, 1994, Day, 1994). Organizational learning is hard to develop, as it requires to generate new knowledge which will leads to adoption of that new knowledge (Huber, 1991). Organizational learning is not possessed by a lot of firms; hence it is rare (Slater, 1995). Organization learning’s replication or transfer is not easy for competitors as it is based on organization processes and is intangible.

H2: LC strategy has significance impact on EKA. H3: LC strategy has significance impact on IKA. H4: LC strategy has significance impact on KD.

2.6 ORGANIZATION LEARNING AND ORGANIZATIONAL PERFORMANCE Organizational learning is encouraged by a lot of cultures and that has resulted in improved organizational performance. (Egan et al., 2004, Ellinger et al., 2002). Innovation performance is enhanced when the organizational learning enhances (Mansfield, 1983). The learning aptitude of the employees has increased the absorption and incorporation of internal information is increased (Cohen and Levinthal, 1990). Connection between organizational learning and its put comes have been studied by a very low number of studies. The connection between organization learning and innovation performance has been studied by Pérez López et al. (2005) but there has been weak evidence empirically also there has been not a lot of research on learning processes (Bapuji and Crossan, 2004). Most researches focused on theoretical side of organization learning (Saru, 2005).

2.6.1 EXTERNAL KNOWLEDGE ACQUISITION AND PERFORMANCE The advantages of acquiring knowledge from external sources are vital in high tech businesses, where businesses are distinguished by producing new generation products (Uotila et al., 2009).

Developing knowledge from the external sources broadens the knowledge base of the business, thus providing the benefit to effectively identify the opportunities and threats. Furthermore, it also opens approach to the new marketplaces and know-hows (Danneels, 2008, Narteh, 2008). Knowledge based view reflects knowledge as an external R&D activities show improved performance (Berchicci, 2013). Moreover it is also taken as addition to the resource based view. Knowledge transfer is valuable within the firm and also among the several firms (Grant, 1996). Businesses acquiring external knowledge through external R&D activities show improved performance (Berchicci, 2013).

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Adil T. Paracha, Wajid Shakeel, Malik Faisal Azeem, and Malik J. Saboor

H5: There is a mediating role of EKA between the relationship of LC strategy and organizational Performance.

2.6.2 INTERNAL KNOWLEDGE ACQUISITION AND PERFORMANCE Internal knowledge acquisition is of the essence for fruitful learning process of the business, but it is impracticable for a business to totally depend on its internal means. The competitive nature of the contemporary world compels a business to constantly learn from the external bases nevertheless this does not signify that acquiring knowledge from the internal sources is not valuable. To gain from the knowledge of the internal sources, it is critical to effectively put together the sources of internal knowledge with those of external knowledge, as the rapid transforming external environment possibly will outdate the firm’s current knowledge base (O’Reilly and Tushman, 2008).

Consequently, together external internal knowledge acquisition are essential to positively improve the firm’s capabilities, so as to gain competitive advantage. In addition the internal knowledge enhance the intensity of the effect of external knowledge on innovation performance of the organization (Segarra-Ciprés et al., 2014).

H6: There is a mediating role of internal knowledge acquisition between the relationship of LC strategy and organizational Performance.

2.6.3 KNOWLEDGE DISTRIBUTION ACQUISITION AND PERFORMANCE Knowledge distribution is believed to be a valuable driver in improving knowledge and innovation (Jackson et al., 2006). To use the knowledge base owned by an organization, it is crucial to distribute that knowledge among employees. Knowledge distribution between employees possibly will bring advantages like lessening of production costs, better-quality processes and upgraded organizational performance (Mesmer-Magnus and DeChurch, 2009).

H7: There is a mediating role of knowledge distribution between the relationships of LC strategy and organizational Performance.

The theories that support the variables in this study are resource based theory, knowledge based view, transaction cost theory. Transaction cost theory provides the basis for mediating variables in this study. The theory that encapsulates all the variables in the study is resource based theory as discussed in the literature and according to resource based theory, resources possessed by an organization become source of its competitive advantage (Hunt & Morgan, 1995) and organization learning is considered as a resource that is hard to imitate or replicate as it is valuable, inimitable, rare and non-substitutable (Barney, 1997).

3. DATASET AND METHODOLOGY This section gives detail about the study dataset and the methodology used in this study. Figure 1 give detail of this study conceptual framework.

3.1 DATASET The study identified four promising telecom organizations currently working in the Pakistan telecom sector namely Mobilink; Ufone; Telenor and CMPAK (Zong). The research engaged quantitative causal research methods to examine the relationship. Cross sectional time horizon is used *Corresponding author (Wajid S. Ahmed). Tel: +331-6091264. Email: wajid_shakeel@comsats.edu.pk ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02C http://TUENGR.COM/V10A/11A02C.pdf DOI: 10.14456/ITJEMAST.2020.23

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and telecom sector is the unit of analysis for the study. The sample size taken was drawn from the population of these organizations against the total population of N = 2448. Simple random sampling technique is used. From self-administered survey, out 600 distributed questionnaires, 296 were received fit for analysis.

External Knowledge Acquisition (EKA)

Knowledge Distribution (KD)

Cost Leadership (LC)

Organizational Performance (OP)

Strategy

Internal Knowledge Acquisition (IKA)

Figure 1: Conceptual Framework 3.1.1 SAMPLE DESCRIPTION Table 1: Details of sample size from the population of telecom organizations in Pakistan Organization

Questionnaires

Mobilink Ufone Telenor CMPAK (Zong)

150 150 150 150

Questionnaires received (fit for analysis) 93 86 63 54

Age < 18 > 18 but < 25 > 25 but < 35 > 35 but < 45 > 45 Job responsibility 1Assistant Manager 2 Manager 3 Director

Questionnaires unanswered 57 64 87 96

Response rate 0.62 0.57 0.42 0.36

Gender Female/Male

0.26 / 0.74 0.29/ 0.71 0.43 / 0.57 0.47 / 0.53 0.13 / 0.88

0.08 / 0.92 0.19/ 0.81 0.47/ 0.53

.

3.2 METHODOLOGY A total 296 confirmed respondents is useful for the multivariate analysis. From the ę­&#x201C;2 â&#x20AC;&#x201C; test under the confidence interval of 5% the results showed no remarkable differences between the characteristics of the telecom business types among the population studied. The simplified factor structure developed after performing the maximum likelihood analysis in accordance to the promax

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Adil T. Paracha, Wajid Shakeel, Malik Faisal Azeem, and Malik J. Saboor

rotation criteria to enhance the factor loadings. There is no evidence of discernment and convergent validity issue existed. The reliability test of Cronbach Alfa confirms that all the values of the constructs are above the acceptable value of 6.0.

4. RESULTS AND ANALYSIS The selected sample data was analyzed with SPSS and AMOS programs. Different statistical methods were utilized along with the multivariate analysis methods such as exploratory and confirmatory factor analysis. Empirical findings gave the basis of systematic and procedural process of knowledge dimensions. After application from factor analysis method i.e. exploratory and confirmatory through SPSS and AMOS software the initial factors were chosen for construct validity.

For that the eigenvalue was taken into consideration with the usage of maximum likelihood factoring and promax rotation method. The concept of organization learning via knowledge dimensions refers to the organization management and for that the data extracted from the assistant managers, managers and directors. From the exploratory analysis, the resulted values of all the variables determined the high communalities (from 0.624 to 0.793) and thus no elimination of variables done at this stage.

Table 2 displayed the exploratory factor analysis of the selective constructs for the measurement variables for the study. KMO test statistics showed the value around 0.918 and confirmed the sampling adequacy of the data which the Barlett’s test of sphericity p-value of significance (sig. = 0.000 for all variables). There was 5 factors extracted with the cumulative value of round 62 % approximately, and that was above the acceptable range. The reflective latent measures extracted from the pattern matrix for the factor LC were reduced to six in total (eliminate LC3 to LC5; LC7 to LC11). This addressed LC strategy with in the telecom sector organizations in Pakistan. For the organizational learning via knowledge dimensions explained by all three factors IKA; EKA and KD. To the context of the study the elimination was considered in constructs for not only this variable, but for the remaining factor PERF too.

The fitness of model to data was confirmed before hypothesis testing. For that the invariance analysis were done to confirm the model adequacy. The figure 2 confirms the validity of the model to be executed for the multivariate analysis. It showed the covariance values among the variables which ranges from 0.40 to 0.70. To evaluate the attributes of this study’s measurement model, indices of model data fit were also observed. According to the literature, value of ꭓ2/df should be smaller than 3 for the acceptance of the study model (Kline 1998) and according to Marsh and Hocevar (1985), value of ꭓ2/df smaller than 5 is acceptable. The value for ꭓ2/df was observed 1.808/179 with a value well below a confidence interval level of 5% (Table 3). For the construct validity for measurement model, average variance explained i.e. EVA and MSV values for all the variables must be well below the respective values of CR. The diagonals values given in the table 4 for the receptive variables are higher compared to the values below. For instance, for the variable of organizational performance i.e.

PERF the diagonal value for variance was 0.768 compared the other variance value of the LC strategy variable i.e. LC was 0.511 etc. Therefore, after ensuring the adequacy of the research model to the data collected.

*Corresponding author (Wajid S. Ahmed). Tel: +331-6091264. Email: wajid_shakeel@comsats.edu.pk ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02C http://TUENGR.COM/V10A/11A02C.pdf DOI: 10.14456/ITJEMAST.2020.23

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Figure 2: Invariance analysis of cost leadership strategy; organizational learning via knowledge dimensions Table 2: Exploratory factor analysis of constructs for cost leadership strategy, organizational learning via knowledge dimensions and organizational performance.

Exploratory factor analysis

Kaiser-Meyer-Olkin Measure of Sampling Adequacy 0.918

Goodness-of-fit test

Bartlett's Test of Sphericity ę­&#x201C;2/df. Sig. 3363.45** 239.50**

Cumulative%

Reflective latent measures from Pattern matrix

61.66 LC1; LC2; LC6; LC12; LC16; LC17 IKA31; IKA32; IKA33 EKA27; EKA28; EKA29; EKA30 KD34; KD35; KD36; KD37 MP63; SP65; PRP68; PP69

LC IKA EKA KD PERF

Table 3: Measurement model and SEM model fit for multivariate model analysis.

Model-I (Invariance) Model-II (SEM)

ę­&#x201C;2/df 1.808/179 2.689/182

CFI 0.955 0.905

GFI 0.895 0.851

RFI 0.890 0.837

RMSEA 0.053 0.046

PCLOSE 0.306 0.700

Table 4: Confirmatory factor analysis for construct validity for multivariate model analysis.

PERF LC EKA KD IKA

10

CR 0.852 0.898 0.838 0.826 0.849

AVE 0.590 0.595 0.564 0.543 0.651

MSV 0.518 0.261 0.518 0.508 0.420

PERF 0.768 0.511 0.720 0.713 0.648

LC

EKA

KD

IKA

0.771 0.454 0.347 0.439

0.751 0.651 0.640

0.737 0.648

0.807

Adil T. Paracha, Wajid Shakeel, Malik Faisal Azeem, and Malik J. Saboor

From telecom organizations, this study has developed a fine proof of the construct validity of organization strategy, organization learning via knowledge dimensions and organization performance for the telecom sector of Pakistan. Scales for organization strategies, organization learning and organization performance were found to be appropriately fit for the measurement model of this study.

Thus, all the constructs used in this study are suitable for the telecom sector.

For the multivariate analysis the SEM method was proposed to achieve the study objectives. This study preferred SEM over regression because of the complexity of the model under analysis, as it could be evaluated through a single statistical model by using SEM analysis technique. SEM deals with complex and specific hypotheses in an effective way (Kaplan, 2000). As a result, the indices of model fitness attained were: ꭓ2/df = 2.689/182, CFI = 0.905, RFI = 0.837, GFI = 0.859, RMSEA = 0.046 and PLCOSE = 0.700. ꭓ2/df is lower than 3 with the other indicators e.g., CFI, GFI and RFI. The values of comparative fit index and normed fit index should be close to 0.9, ideally (Kaplan, 2000). This indicates that results are acceptable. Other than testing the hypotheses of direct relationships in the study model, SEM also helped in studying the mediation impact of organizational learning via knowledge dimensions, among strategy and performance, effectively.

Hypothesis Testing – I) Cost leadership strategy and organizational performance Our hypothesis assumed that the cost leadership has a significant positive impact on the organizational performance, and even more when the age, gender and job responsibility variables has been controlled for, in a telecom organizations. Table 5 showed the standardized coefficient values for the relationship between the cost leadership strategy and organizational performance. For instance the when the direct path analysis was done to observe the impact of cost leadership strategy in the telecom organization performance, there was positive high significance value of 0.53 was found. The low t-statistics value confirms that the value was below the confidence interval level of 1% (β = 0.53; tα=1% = 8.64). With reference to the R2 value there found to be 21% of the variability among the organizational performance which was accounted for cost leadership strategy. The result is in accordance to the H1 hypothesis fact and that the cost leadership strategy cannot be ignored for organizational performance. However, there was no significant impact of controlled variables when cost leadership strategy and organizational performance was observed.

Hypothesis Testing – II) Cost leadership strategy and organizational learning via knowledge dimensions The above mentioned relationship was observed through the respective hypotheses i.e. H2; H3 and H4, after controlling for age, gender and job responsibility in telecom organizations. These hypotheses have assumed to have a significant positive impact when cost leadership strategy was taken into consideration with the belief that the three selective knowledge dimensions would harness in telecom organizations in Pakistan. Table 5 showed the standardized coefficient values for the relationship between the LC strategy and organizational learning. Furthermore, the table 5 showed an evidence of supporting the respective hypotheses with the significance standardized coefficient values. For example, when the first dimension of organizational learning i.e. internal knowledge acquisition and the impact of LC strategy on that was observed, there was positive high significance value of 0.48 was found. The low t-statistics value confirms that the value was below the confidence *Corresponding author (Wajid S. Ahmed). Tel: +331-6091264. Email: wajid_shakeel@comsats.edu.pk ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02C http://TUENGR.COM/V10A/11A02C.pdf DOI: 10.14456/ITJEMAST.2020.23

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interval level of 1% (β = 0.48; tα=1% = 7.09). With reference to the R2 value there found to be 15% of the variability to the internal knowledge acquisition which was accounted for LC strategy. The result is in accordance to the H2 hypothesis with the fact that the LC strategy contributes significantly for organizational learning. Noticeably, when the controlling variables such as gender, age and job responsibility was observed only under the 2nd selective knowledge dimension and that of the LC strategy as an explanatory variable in the model, age and gender seemed to be significantly effecting the relationship among the observed variable.

Table 5: Mediating role of organizational learning via knowledge dimensions among LC strategy and organizational performance.

H1: β (t) H5 to H7: β (t) H2: β (t) H3: β (t) H4: β (t) Organization Organization IKA EKA KD performance performance (Constant) 2.53 (8.84*) 2.41 (7.18*) 3.08 (11.42*) 2.87 (9.83*) 0.04 (1.31) Gender -0.13 (-1.43) -0.02 (-0.34) -0.10 (1.82**) -0.07 (-1.31) -0.05 (-0.60) Age -0.07 (-1.57) -0.03 (-0.48) -0.12 (-2.23*) 0.05(0.89) -0.06 (-1.48) Job Responsibility 0.02 (0.85) -0.02 (-0.46) -0.02 (-0.34) 0.04 (0.75) 0.02 (1.00) Internal Knowledge Acquisition (IKA) 0.20 (3.30*) 0.37 (4.93*) External Knowledge Acquisition (EKA) Knowledge Distribution 0.32 (5.74*) 0.53 (8.64*) 0.48 (7.09*) 0.50(7.48*) 0.40 (5.33*) 0.15 (4.01*) LC Strategy R2 0.21 0.15 0.17 0.10 0.53 Adjusted R2 0.20 0.14 0.16 0.10 0.04 S.E of the Estimates 0.76 0.90 0.72 0.78 0.35 Note: * confidence interval of p-value @ 1% level; ** confidence interval of p-value @ 5% level

Figure 3: Structural equation model of LC strategy through mediation of organizational learning via knowledge dimensions among organizational performance.

Hypothesis Testing – III) Mediating role of organizational learning via knowledge dimensions among LC strategy and organizational performance Under this hypothesis testing the authors assumed a mediating role of an organizational learning among the relationship between the observed and explained variables under study. The respective hypotheses were H5; H6 and H7 which proposed that the LC strategy positively affected the organizational performance and not only this it would insured that the more knowledge able the

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Adil T. Paracha, Wajid Shakeel, Malik Faisal Azeem, and Malik J. Saboor

managers were, the more effective performance of the organizations would be. For the mediating role of all the respective KD among the LC and organizational performance, there observed the positive significant relationship found in Figure 3. Table 5 showed the standardized coefficient values.

However, there was decreased in values for respective coefficients of organizational learning in the model (β = 0.20, 0.37 and 0.32; tα=1% = 3.30, 4.93 and 5.74). The model fit test statistics i.e. R2 value observed the value of 53% of the variability among the organizational performance which was accounted for LC strategy through the mediation of organizational learning with knowledge dimension constructs. The result is in accordance to the respective hypotheses and concluded that there was mediation (partial) impact of internal knowledge acquisition, EKA and KD among the LC strategy and organizational performance in telecom organization of Pakistan.

5. CONCLUSION Earlier studies on competitive strategies have ignored organization learning via knowledge dimensions. This study recommends the importance of the above mentioned construct while considering the LC strategy. The research investigated link mentioned above in telecom sector of Pakistan via knowledge dimension. For the contextual purpose, the study used multivariate analysis by using AMOS software. The findings support the fact that the LC strategy cannot be ignored in organizational performance in telecom sector. Further, there was a significant evidence found when the same relationship was reviewed via the knowledge dimensions. This proved that the knowledge and skill played a triggering role and concluded the more knowledgeable managers were the more would be the performance of an organization.

6. AVAILABILITY OF DATA AND MATERIAL Data can be made available by contacting the corresponding author.

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*Corresponding author (Wajid S. Ahmed). Tel: +331-6091264. Email: wajid_shakeel@comsats.edu.pk ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02C http://TUENGR.COM/V10A/11A02C.pdf DOI: 10.14456/ITJEMAST.2020.23

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Dr Adil Paracha is an Assitant Professor at COMSATS University Islamabad, Pakistan. He obtained a PhD in Business Administration, from Strathclyde Business Scotland. His work is in area of Strategic Planning, Entrepreneurship

Dr. WAJID SHAKEEL AHMED obtained PhD Degree in Finance from IQRA University, Islamabad and currently working as an Assistant Professor in MANAGEMENT SCIENCES DEPARTMENT, COMSATS University Islamabad. He has earned M.Sc. degree in International Finance & Economic Policy from UNIVERSITY OF GLASGOW, SCOTLAND, U.K. Dr. Wajid S. Ahmed work relates with the Quantitative Business Techniques, Time-Series Analysis, Parametric and Non-Parametric Model Applications in Real World.

Dr.Malik Faisal Azeem is an Assistant Professor at Department of Management Sciences, COMSATS University, Islamabad campus. His area of research encompasses Human Resource Management, Leadership, Human Resource Development, Performance Management, Training and Development, Human Capital Management, Technology Manaand HR Information systems Management.

Malik JAWAD Saboor is an Assistant Professor at COMSATS University Islamabad. His primary area of interest are Entrepreneurship, Intrapreneurship and Human Resource Management.

Trademarks Disclaimer: All product names including trademarks™ or registered® trademarks mentioned in this article are the property of their respective owners, using for identification and educational purposes only. The use of them does not imply any endorsement or affiliation.

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Adil T. Paracha, Wajid Shakeel, Malik Faisal Azeem, and Malik J. Saboor

©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies

International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies http://TuEngr.com

PAPER ID: 11A02D

4C’S OF WORK ENVIRONMENT AND ORGANIZATIONAL PERFORMANCE: MEDIATING ROLE OF INDIVIDUAL PERFORMANCE a

Saima Aftab , Komal Khalid a b

b

Department of Management Sciences, Foundation University, Rawalpindi Campus, 46000, PAKISTAN. Department of Human Resource Management, Faculty of Economics and Administration, King Abdul Aziz University, 21577, Jeddah, SAUDI ARABIA.

ARTICLEINFO

A B S T RA C T

Article history: Received 15 July 2019 Received in revised form 19 September 2019 Accepted 25 September 2019 Available online 12 November 2019

Effects of career planning, consultative management, communication and culture (Performance-oriented) have been the focus of research scholars, previously. This is the first study presenting a combined effect of 4C’s of the work environment in a unique model, investigating the impact with mediating role of individual performance on organizational performance. The objective aspect of performance is considered with respect to system performance. Data were collected from 42 firms of manufacturing and services sector, through questionnaires. Results show that career planning, culture, communication, and consultative management as part of work environment has a significant impact on organizational performance with employee’s individual performance acting as a mediator.

Contribution of this study to the body of knowledge is a model exhibiting 4C’s of Work Environment and their relationship with individual and organizational performance.

Keywords:

Work environment; Performance-oriented Culture; Consultative Management; Career Planning; Communication; Individual and Organizational Performance.

Disciplinary: Management Sciences (Human Resources Management) and Mathematics (Statistics). ©2020 INT TRANS J ENG MANAG SCI TECH.

1. INTRODUCTION Excellence is the key to any business activity. Quality of input determines the quality of output.

So, the management of employee performance has its own prime importance in managing the performance of organizations. Besides books, software, hardware, buildings and key organizational parts, employees are the most important component who build organizations, (Lee, 1994; Raziq & Maulabakhsh, 2015) through their performance (Hill et al., 2008). As technology is readily available, building a motivated and productive workforce requires considerable effort and time (Lee & Choi, 2003; Lee, 1994; Tazakori et al., 2019). Currently used work environment systems are useful only to *Corresponding author (Saima Aftab). Tel: +92–3335997374 Email: saima.aftab@fui.edu.pk ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.02 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02D http://TUENGR.COM/V10A/11A02D.pdf DOI: 10.14456/ITJEMAST.2020.24

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manage the domestic workforce but to manage a global workforce there needs to be developed a meaningful understanding of the factors contributing to employeesâ&#x20AC;&#x2122; individual performance and how to manage them to enhance organizational performance at large. Work environmental factors, like career planning and cultural diversity in organizations is posing serious challenges for managers to improve upon current systems and provide more cross-cultural training opportunities to employees.

Effective communication systems with organization-wide, national and global connectivity and consultative management systems must be designed to help flow the information more rapidly and accurately to achieve effectivity. So, businesses should sensitize the need for establishing supportive work environments to help develop human resources as they are the only resource that can provide benefit centuries after centuries (Raziq & Maulabakhsh, 2015).

Organizations are highly volatile which means that the systems within are highly turbulent and the pressure to create woking environments, conducive enough to facilitate individual performance, is inevitable. This research, however, focuses on a situational aspect of performance. It encompasses the factors in an individualâ&#x20AC;&#x2122;s work environment that affects performance at individual and organizational levels. A large number of researches is being done, worldwide, in the areas of compensation systems and compensation management aspects. This is a known fact that better compensation packages help improve performance of employees by motivating them to perform.

Being researchers, we believe that money only prevents de-motivation keeping the morale of the employees on the borderline of motivation and de-motivation, there are other factors that influence increase in motivation. So, for this to be tested in real Pakistani business world environment this study focuses on four major work environment factors namely Career Planning, Consultative management, Communication and Culture (performance-oriented), that affect individual and organizational performances other than compensation. Pakistani business is the focus of attention because of the consistent challenges being faced by the country as a whole for two decades. Pakistani economy is in dire need of support from there industrial sectors to help gain stability and continuity through strengthened systems with distinct policies and strategies upon how to reinforce organizational performance for higher industrial outputs and better contributions towards countryâ&#x20AC;&#x2122;s economy.

Performance can be viewed in two aspects. One is objective and other is subjective. The objective aspect of performance focuses more on human productivity with respect to system performance.

While subjective performance focuses on human feelings and expressions (Pearson, 1982). Our focus is on objective aspect of performance depending upon effective working environmental systems developed in an organization. Change in employee behaviors is evidence of learning. If provided with certain circumstances performance of individuals will be proof of individual-level learning. For the purpose of modifying employee behaviors positive reinforcement is used as a powerful tool to identify and reward performance augmenting behaviors resultantly increasing the likelihood for the behaviors to be repeated in future benefitting management at large. So, work environment with a performance-oriented culture will possess more learned and performing employees, which will enhance performance at organizational level as well (Raziq & Maulabakhsh, 2015).

This study investigates the relationship of four distinct work environmental factors i.e., Consultative management, Career Planning, Culture (performance-oriented) and Communication with organizational performance with the mediating effect of Individual Performance. A number of studies are being conducted to examine relationships of varying dimensions of the work

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environment on the performance of the organization. There is no study to date that presents a model as comprehensive and unique as this. Pakistan’s manufacturing and services sector is focused as both of these sectors are a major contributor to the country’s economic stability and performance.

This study helps manufacturing and services sectors in identifying the winning contributors in organizational performance with an inevitable role of individual performance in the process.

2. REVIEW OF LITERATURE 2.1 WORKING ENVIRONMENT The environment in an organization encompasses the surrounding atmospheres which can significantly impact humans, while the work environment involves settings where humans work in sync to achieve organizational goals and objectives (Awan & Tahir, 2015). The work environment can be explained through two different dimensions i.e. Work-related and Context related dimensions.

Work-related dimension includes all the job-related characteristics including its collaborating elements as well as the outcomes. Whereas, the context related work environment includes the physical working conditions facilitating employees to perform on the job (Raziq & Maulabakhsh, 2015). The work environment consists of employee engagement, safety, and security of employees, maintaining good working relationships, motivation and employee inclusion in decision making (Appelbaum et al., 2000; Awan & Tahir, 2015; Chandrasekar, 2011; Raziq & Maulabakhsh, 2015).

Work environments play a pivotal role in how employees in an organization perform individually, in the form of teams motivated enough to benefit the organization’s longer-term profitability (Chandrasekar, 2011). An effective work environment is where management can achieve their expected results (Chandrasekar, 2011; Dul & Ceylan, 2014; Spector, 1997). Work environment directly affects individual behavior, interpersonal interactions and thus work outcomes (Ajala, 2012). Performance is believed to be a function of an individual’s work environment and interaction of different factors of work environment with the employees (Anitha, 2014; Awan & Tahir, 2015; Dul & Ceylan, 2014; Spector, 1997). Dul and Ceylan (2014) studied 103 firms and concluded that the firm’s characteristics work environmental factors contribute to higher levels of product and individual creativity levels. Gilbert (1996) in his Behaviour Engineering Model indicates that performance of individuals is influenced by work environment and its individual dynamics. He defined performance as “individual’s behaviors and accomplishments, where behaviors of individuals lead to accomplishments”. Work environment influences behaviors ultimately shaping the performance of individuals. Lewin (1997) in his Field Theory suggests that Bt = F (St) i.e. Behaviours at a point of time are function of contextual situations. The situation includes psychological as well as organizational work environment of the individuals. Employee behaviors do not exist in a vacuum. He argued that a specific and unique environment is required to effect employee behaviors and thus employee performance. An “attractive” and “resourceful” workplace environment retains employees for longer term and makes them perform better on the job.

2.2 CAREER PLANNING Career planning encompasses the individual’s personal goals, challenges and the tasks involved (Chen et al., 2004). As people with different characteristics vary in their needs of career development *Corresponding author (Saima Aftab). Tel: +92–3335997374 Email: saima.aftab@fui.edu.pk ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.02 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02D http://TUENGR.COM/V10A/11A02D.pdf DOI: 10.14456/ITJEMAST.2020.24

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and progression within hierarchies, the career development systems within organizations should be premeditated accordingly (Baruch, 1996). Hill et al. (2008) argue that organizations select new candidates from a scarce market, place them on high responsibility jobs without discussing their career paths. This leaves employees with a heap of muddles, no clear bearing for the future, leading competitors to carry them away. Clearly stated employee career paths help employees to perform better and improve their efficiency (Victoria et al., 2018). Organizations must understand that career development programs appropriate for one group of people or for people at one level of hierarchy may be useless or unsuitable for other groups of people. Organizations have diverse groups of people so, they must be the career development programs (Baruch, 1996). They will be more productive if they are well informed of their career tasks (when individuals take initiatives to grab available opportunities spending time, energy and efforts for developing required skills and competencies in order to accomplish the career objectives), career goals (landmarks to be realized during a career, providing individual with basic direction and drive) and career challenges (Chen et al., 2004).

2.3 CULTURE (PERFORMANCE ORIENTED) Culture in organizations, shaped by responsible people at executive levels, comprises attitudes, values, beliefs, and behaviors that everyone has to accept, serving organizations in an effective way (Tsai, 2011). The essence of the idea regarding performance-oriented culture is to link equitable pay, promotion, and additional organizational rewards along with improved worker attitudes (i.e. performance, cooperation, collaboration) (Ko et al., 2013). Reinforcing desired behaviors from employees requires consistent managerial behaviors of appreciation and recognition of virtuous performance (Bakotić, 2016). A culture with a positive association with people, shared values and standards, high acknowledgment of individuality, supportive management and high levels of information flow, create a positive general environment of high performance and productivity (Peñalver et al., 2019). Organizations must teach their employees about how to manage time and make use of 80/20 rule i.e. identifying 20% task that delivers 80% of results (Kirk, 1997).

2.4 COMMUNICATION Communication is an organization’s “lifeblood” which prevents various conflicts that may be threatening to employee’s and organization’s performance. Most of the change management programs in organizations fail due to a lack of proper communication channels (Beer & Nohria, 2000). Regular transmittal of information from top management helps employees understand organizational changes and perform accordingly. Millennials (born between 1979 and 1994) are continuously entering the workplace, there is general speculation that they work well in teams, prefer frequent and open communication with their supervisors, and can be used to improve individual and organizational performance (Myers & Sadaghiani, 2010). Top managers and the management of the organization should provide to their employees an environment where they can articulate their views and ideas easily. They should ensure the provision of communication opportunities and formal means of information exchange to let employees keep sharing their views (Vakola & Bouradas, 2005).

Boies et al. (2015 proved a positive relationship between flow of information and productivity of employees in an organization.

2.5 CONSULTATIVE MANAGEMENT (EMPLOYEE EMPOWERMENT & PARTICIPATION) In consultative management, organizations involve their employees in the decision-making

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process (suggestions/recommendations), but final decisions are made by their supervisors. It is also called an employee voice (Byrne & Damon, 2008). Consultative management usually has a positive and constructive influence on employee performance in situations where employees feel authority in doing their job and making their related decisions (Iqbal et al., 2015). The different researchers analyzed the influence of consultative management on employee performance but found somewhat mixed results. Based on the study of Chong et al. (2005) employee performance increased with consultative management practices. Libby (1999) and Byrne and Damon (2008) did not find a direct influence of consultative management on employee performance. However, Gómez-Ruiz and Rodríguez-Rivero (2018) found a motivational effect on performance of employees and subsequently on organizational performance. People with higher ranks, smaller group size and fewer pressures to make profits contribute higher levels of information and encourage participation in decision making (Connor, 1992). Managers, to maintain continued success, have to attain a right balance between roles and responsibilities of the job, performance demands and rewards for a productive and committed workforce (Scott-Ladd & Marshall, 2004).

2.6 WORK ENVIRONMENT: INDIVIDUAL EMPLOYEE PERFORMANCE RELATIONSHIP Recent researches have established a strong connection between work environmental factors and individual performance (Chandrasekar, 2011; Naharuddin & Sadegi, 2013; Raziq & Maulabakhsh, 2015; Srivastava, 2008; Vischer, 2008). Organizations that ignore the work environment as a significant contributor to success adversely affect the individual performance of employees (Raziq & Maulabakhsh, 2015; Spector, 1997). Similarly, a large body of knowledge contributes towards indicating that individual Job performance is the key to achieve high organizational performance in terms of productivity and effectiveness (Bevan, 2012; Cooke, 2001; Muchhal, 2014; Okoye & Ezejiofor, 2013). The purpose of enhancing employee productivity is to enable people to work harder but to work cleverer and keener. Motivation is a much-needed ingredient for people to perform on the job (Burnham, 1982). Organizations these days have become more and more demanding and put tremendous pressure on employees to perform better every day with respect to changing nature of the business world. This has been the focus of attention in recent years and requires deliberate attention in future researches too (Quinn & Spreitzer, 1997). Recent research trends show that stakeholders have to take various steps in order to upkeep the worker's performance (Parsa, 2014). Thompson (1993) presented a formula; Performance = f (Skills x Efforts) x (Efficiency of system being used). A bureaucratic environment in organization prevent employees to perform efficiently and effectively and they are less innovative and productive altogether (Appelbaum et al., 2000). Higher levels of employee productivity are an indicator of employee’s commitment to outperform for the organization (Gardner et al., 2011).

To build employee efficiency, devotion, and gratification; design, implementation, and management of employee growth and development programs is a critical ingredient (Goldstein, 2003). Training must not be the only solution to performance problems. A system must be developed which includes variety of activities to support employee performance at work (Broad, 2006). Elements that ensure internal service quality in the form of high performance of employees include systems of job design, reward, and recognition, employee selection, workplace design, *Corresponding author (Saima Aftab). Tel: +92–3335997374 Email: saima.aftab@fui.edu.pk ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.02 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02D http://TUENGR.COM/V10A/11A02D.pdf DOI: 10.14456/ITJEMAST.2020.24

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communication and training, styles of management, alignment of goals and policies and procedures (Hallowell & Schlesinger, 1999). A stable environment, worker involvement, and participation, delegation of authority and information sharing through efficient communication channels enhance efficiency and effectiveness i.e. productivity of employees (Ahmad & Schroeder, 2003; Sonnentag, 2003; Sonnentag & Frese, 2002). Employee’s personal perception of their value within organization depends on their confidence levels, self-worth, dignity, and wellbeing, which leads to higher levels of satisfaction and performance contribution towards achieving organizational goals (Batool & Batool, 2012). A study conducted by Jayaweera (2015), on 254 hotel workers in UK revealed that there exists a strong correlation between Work environmental factors and individual’s job performance.

2.7 WORK ENVIRONMENT: INDIVIDUAL PERFORMANCE AND ORGANIZATIONAL PERFORMANCE RELATIONSHIP A large number of research studies can be recognized for providing a comprehensive insight into antecedents and consequences of organizational performance (Chandrasekar, 2011; Dul & Ceylan, 2014; Hogan & Coote, 2014; Tesluk, Vance, & Mathieu, 1999; Valmohammadi & Roshanzamir, 2015). Researchers have argued over decades, that High-performance work systems (HPWS) including consultative management approaches (Messersmith, Patel, & Lepak, 2012; Shin & Konrad, 2017) and well-defined communication and trust-building systems (Boies et al., 2015) help organizations achieve higher levels of performance in the longer run. Daft and Marcic (2016) defined organizational performance as ability of an organization where it uses its available resources efficiently to achieve effective results. Dul and Ceylan (2014) identified 12 different work environmental factors emphasizing their importance in defining the individual performance and organisational performance levels.

The work environment is at the core of how organizations perform in the longer run.

Individuals provided with a performance enabling work environment are in a better position to be motivated and perform in the form of teams, benefiting organization’s profitability in the longer run (Chandrasekar, 2011). Consultative management and employee involvement efforts help employees develop positive attitude towards producing volunteer contributions towards organizational development (Tesluk et al., 1999). Managers today need to focus on developing employees with enough authority and delegated responsibility to encourage teamwork and accountability (Chandrasekar, 2011). A study conducted by Zakari et al. (2013) on banking sector of Ghana, found that a strong positive correlation exists between organizational performance and culture of the organization. Moreover, organizational cultures that value the human part of the organizational systems tend to directly influence the organizational performance at macro level (Hogan & Coote, 2014; Valmohammadi & Roshanzamir, 2015). Qualitative and quantitative measures of productivity are the true depiction of any organization’s performance (Kehindeet al., 2012; Lebas & Euske, 2002).

2.8 HYPOTHESES H1: Work environmental factors have a significant positive impact on organizational performance.

H1a: Career Planning has a significant positive influence on organizational performance.

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H1b: Culture has a significant positive influence on the organizational performance.

H1c: Communication has a significant positive influence on the organizational performance.

H1d: Consultative management has a significant positive influence on the organizational performance.

H2: Work environmental factors through its effect on Individual performance have a significant and positive influence on organizational performance.

H2a: Career Planning through its effects on Individual performance has a significant and positive influence on organizational performance.

H2b: Culture through its effects on Individual performance has a significant and positive influence on organizational performance.

H2c: Communication through its effects on Individual performance has a significant and positive influence on organizational performance.

H2d: Consultative management through its effects on Individual performance has a significant and positive influence on organizational performance.

2.9 THEORETICAL FRAMEWORK The study framework is given in Figure 1, exploring the role of work environmental factors in predicting organizational performance through individual performance.

Figure 1: Theoretical Framework.

3. RESEARCH METHODOLOGY 3.1 POPULATION, SAMPLE, AND DATA COLLECTION A homogenous population of all employees classified as middle managers, in the manufacturing and service sector of Pakistan, is selected for this study. Quantitative data from 42 manufacturing and service organizations from Islamabad and Rawalpindi region in Pakistan were collected using a 5-point Likert-scale questionnaire. Employees were asked to answer questions based on their perceptions. In total 420 distributed survey questionnaires, 297 were usable after excluding the outliers’ data using Cook’s Distance and Central Leverage Value method, amounting to a response rate of 70.71%. Data were cleaned for the purpose of data analysis.

In Table 1, most of the respondents were male (79.1%), may be due to higher preference given to the male fraternity for construction of sound organizational structures and high levels of gender discrimination among corporate culture. Most respondents had ages 31-40 years (49.5%) and most of them held bachelor’s degree (50.5%) which may be due to the economic conditions of *Corresponding author (Saima Aftab). Tel: +92–3335997374 Email: saima.aftab@fui.edu.pk ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.02 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02D http://TUENGR.COM/V10A/11A02D.pdf DOI: 10.14456/ITJEMAST.2020.24

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households in Pakistan and lesser government support for higher education, for economically deprived households, make young people do jobs to support their families. The majority were married (62%) and belonged to middle management levels (75.4%) working in the organization for 2-5 years and above (53.2%) and have a permanent employment status (83.5%). The income level of the respondents’ ranges from Rs. 20,000-40,000 per month, maybe because of poor economic conditions, younger lot of the job market, despite holding middle management positions, settle for less than market-competitive salaries.

Table 1: Respondent’s demographics S# 1 2

3

4

5 6

7

Demographics Male Female Age 20 – 30 31 – 40 41 – 50 51 and Above Education Ph.D M.Phil / MS Masters Bachelor Experience less than 1 year 1 - 2 years 2 - 5 years 5- 10 years 10 years and above Marital Status Single Married Managerial Level Top-level Middle-level First-line Employment status Permanent Contractual Temporary Gender

Responses 235 62 128 147 19 3 2 117 150 28 17 78 158 17

Frequency (%) 79.1 20.9 43.1 49.5 6.4 1.0 .7 39.4 50.5 9.4 5.7 26.3 53.2 5.7

27

9.1

113 184 11 224 62 248 43 6

38 62 3.7 75.4 20.9 83.5 14.5 2.0

3.2 MEASURES The survey conducted includes information related to respondent demographics (e-g age, gender, income, education, marital status). The details of the variables and the scales used as measures are given in Table 2.

Table 2: Measures Used Variable Career planning Consultative management Communication Culture Individual performance Organizational performance

Scale used Sturges et al. 2002 Wood, 2008.

Pinto, 1990.

Jin et al., 2016 Koopmans et al. (2014) Lee et al.(2003)

Items 4 4 6 2 7 4

To assess the fitness of good for the proposed model and to determine the fitness of all the scales used, Principal component analysis and rotation component matrix through Varimax with Kaiser Normalization were performed. All the extraction values were above the critical value of 0.5 which is a significant indication of the fact that all the values fall in one place and contribute towards defining the variables and also establish that there is no multicollinearity and no overlapping, among the 4 dimensions of the work environment. Results in table 3, show that

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Saima Aftab, Komal Khalid

cumulative percentage loading of 6-items of career planning was 57%, 4-items consultative management was 50%, 7-items communication scale has 53% and 4-items of culture has 63%, which is within the acceptable range. When all the 21-items of working environment were analysed together for average variance explained, it showed four sub-variables, having cumulative percentage loading of 64.47%, which is within the acceptable range and determines that all the 4 dimensions can be considered in 1 variable of work environment.

Reliability statistics for 7-items individual performance is .83 and organizational performance is .89 whereas average variation explained for individual performance was 71% and organizational performance was 77%. Multicollinearity statistics (i.e. tolerance and VIF) for all variables were under acceptable range, predicting no multicollinearity issues in the data. Individual variations are also within the acceptable range i.e. >10 which contributes towards explaining the variable significantly. This confirms the convergent validity of the model.

Table 3: Cronbach’s Alpha reliability, Average Variance Explained, Collinearity Statistics, Rotated Factor Matrix.

Items

Reliability

α

AVE

Collinearity Tolerance VIF

1 .62 .74 .76 .80 .73 .75

Rotated Component Matrix 2 3 4 5

6

CP1 CP2 CP3 .89 57% 36 3.87 CP4 CP5 CP6 CM1 .71 CM2 .92 CM3 .85 50% .47 5.14 .58 CM4 .56 COM1 .59 COM2 .49 COM3 .69 COM4 .86 53% .21 3.38 .77 COM5 .73 COM6 .59 COM7 .69 CUL1 .74 CUL2 .78 CUL3 .87 63% .44 2.71 .81 CUL4 .85 IP1 .61 1P2 .75 1P3 .77 1P4 .83 71% .28 4.61 .73 IP5 .59 IP6 .78 IP7 .70 OP1 .86 OP2 .90 OP3 .89 77% .30 3.43 .87 OP4 .88 Extraction Method: Principal Component Analysis; Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 6 iterations. OP= Organizational Performance, IP = Individual Performance, CUL = Culture, COM=Communication, CP= Career Planning, CM=Consultative Management *Corresponding author (Saima Aftab). Tel: +92–3335997374 Email: saima.aftab@fui.edu.pk ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.02 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02D http://TUENGR.COM/V10A/11A02D.pdf DOI: 10.14456/ITJEMAST.2020.24

9

4. FINDINGS & DISCUSSION Data analysis was performed using SPSS-23. To examine the relationship between dependent and independent variables Pearson Correlation was used. To determine the impact of mediation on direct relationship of IV with DV, PROCESS by SPSS and Bootstrapping were used.

4.1 DESCRIPTIVE AND CORRELATION ANALYSIS Descriptive statistics (i.e. Means, standard deviations, skewness, and kurtosis) of the variables as well as their inter-correlations are represented in Table 4. Mean value of variables (CP =3.34, CM =3.73, COM =3.75, CUL =3.43, IP =3.71, OP =3.14) and standard deviation of the variables (CP =.92, CM =.77, COM =.71, CUL =.87, IP =.78, OP =.88) showed that all variables are above average values. The data were checked for missing values and normality (skewness and kurtosis) as suggested by researcher Singh & Sharma (2016). Skewness and kurtosis values lie within the range of +1 and -1 which shows the normality of data collected.

Table 4: Descriptive Statistics and Correlation Analysis Descriptive Statistics Correlation Analysis M SD Skew Kurt 1 2 3 4 5 6 CP 3.34 .92 -.45 -.50 1 CM 3.73 .77 -.71 .52 .58** 1 COM 3.75 .71 -.39 -.19 .59** .60** 1 CUL 3.43 .87 -.42 -.51 .55** .57** .74** 1 IP 3.71 .78 -.21 -.98 .69** .57** .67** .70** 1 OP 3.14 .88 -.55 -.12 .35** .15* .32** .29** .43** 1 Note: CP= career planning, CM= consultative management, COM= communication, CUL= culture, IP = individual performance, OP = organizational performance ** Correlations are significant at .01 level; * Correlations are significant at .05 level Variables

1 2 3 4 5 6

For the purpose of this research study work environment is explained through its four dimensions i.e.

Career planning, Communication, Consultative management and Culture (Performance-Oriented). Results of Pearsonâ&#x20AC;&#x2122;s Correlation analysis, show that all work environment factors have highly significant correlation with Individual performance of employees (CP= .69, CM= .57, COM= .67, Culture= .70) and have a weaker but significant correlation with Organizational performance (CP= .35, CM= .15, COM= .32, Culture= .29). This happens to prove our hypotheses H1, H1a, H1b, H1c, and H1d, to be true that factors of work environment have a significant positive impact on organizational performance. Individual performance has a highly significant correlation with Organizational Performance i.e. .43 at p < .01 (2-tailed). This proves our H2, H2a, H2b, H2c, and H2d, hypothesis to be true that Work environmental factors have a significant positive correlation with organizational performance through its effect on Individual performance. Results in Table 4 show that Performance-oriented culture has the strongest correlation (R = .70 at p < 0.01) with individual performance of employees. This shows that besides financial rewards and compensation people value what they get in the form of open appreciation, acknowledgment and encouragement of their performance. Career planning has R = .69 at p < 0.01 which shows that career planning as a part of the work environment has a significant positive correlation with individual employee performance.

Consultative management (R = .57 at p < .01) and communication (R = .67 at p < .01) also have positive correlation with individual employee performance. These results further clarify the notion that all the factors of organizational work environment i.e. Career planning, Communication.

Consultative management and Performance-Oriented Culture, have a significant positive correlation

10

Saima Aftab, Komal Khalid

with individual employee performance. This results in explaining that organizational work environments that value persistence of performance culture, with appreciation for good work done and support & development opportunities for any gaps in performance, help develop strong working environments resulting in strong positive impacts on individual employee performance.

4.2 MEDIATION ANALYSIS As the study attempts to test the mediation impact of Individual Performance on the direct relationship of 4C’s of the Work environment and Organizational Performance, we used PROCESS, an SPSS macro as designed by Preacher, Rucker, and Hayes (2007) in combination with bootstrapping, a statistical re-sampling method (Hayes, 2009). Preacher and Hayes (2008) estimate indirect effects directly, in case direct effects are missing, as compared to the classical procedure used by Baron and Kenny (1986). Regression results were controlled for demographic variables as they may relate to organizational performance. As the model is multiple conditions (4 dimensions) within-subject design the mediator and consequent variables were measured four times, once in each of the four conditions that represent the antecedent variable X in each case (Montoya & Hayes, 2017). Results show the direct, indirect and total effect of X along with Bootstrap confidence interval (99%) for inference in each such case. Default number of Bootstrap samples with bootstrap confidence interval is used i.e. 5,000.

Table 5: Regression Results for Simple Mediation Direct and total effects MY X Y SE Sig SE t sig SE t sig β β β Career planning .58 .03 <.01 .39 .08 4.85 <.01 .33 .05 6.38 <.01 Con. management .56 .04 <.01 .57 .07 7.95 <.01 .17 .06 4.53 .01 Communication .34 .04 <.01 .45 .09 5.45 <.01 .39 .06 5.72 <.01 Culture .53 .03 <.01 .41 .08 5.83 <.01 .29 .03 5.26 <.01 Value SE UL 95% CI LL 95% CI z Sig Indirect effect and significance using the normal distribution Career planning .35 .03 .44 .23 7.39 <.01 Con. management .19 .04 .29 .04 6.94 <.01 Communication .41 .05 .53 .26 7.34 <.01 Culture .33 .04 .41 .19 7.47 <.01 Value SE UL 99% CI LL 99% CI Bootstrap results for indirect effect Career planning .36 .04 .57 .27 Con. management .21 .06 .32 .12 Communication .42 .03 .59 .31 Culture .28 .05 .47 .21 Note: N=297; X=Independent Variables (Career planning, consultative management, communication, culture); M=Mediator variable (Individual performance); Y=Dependent variable (Organizational performance); SE= Standard error; LL = Lower limit; CI=Confidence interval; UL= Upper limit. Standardized regression coefficients are reported.

Bootstrap sample size = 5,000 Independent Variables (X)

XM t 16.23 11.95 15.40 16.86

As the study results show that 4C’s of work environment have a significant positive correlation with organizational performance so, in order to get a better insight into the fact that how individual performance is altering this relationship, regression analysis using Process in SPSS-23 is performed for indirect effects (Preacher et al., 2007). The summarized results Table 5 indicates that according to Montoya & Hayes, 2017, the conditions for mediation are met. First condition assumes independent variables (Career planning, consultative management, communication, and culture) are *Corresponding author (Saima Aftab). Tel: +92–3335997374 Email: saima.aftab@fui.edu.pk ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.02 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02D http://TUENGR.COM/V10A/11A02D.pdf DOI: 10.14456/ITJEMAST.2020.24

11

related to dependent variable (Organizational performance). Second condition is that independent variables are related to mediator (Individual performance). Third condition assumes that the coefficient of the mediator (Individual performance) is significant in regression with both independent variable (Career planning, consultative management, communication, culture) and mediator (Individual performance) as predictors. Whereas the fourth condition entails that the direct effect of independent variable (Career planning, consultative management, communication, culture) on dependent variable (Organizational performance) should be less than indirect effect of independent variable (Career planning, consultative management, communication, culture) on dependent variable (Organizational performance) through mediator (Individual performance).

The values for path estimates are shown in Table 5. Results show that career planning (β = 0.33, sig < 0.01), Consultative management (β = 0.17, sig < 0.05), communication (β = 0.39, sig < 0.01), and performance-oriented culture (β = 0.29, sig < 0.01), influence organizational performance in a significantly positive manner, satisfying the first condition, resultantly supporting our hypotheses 1a, 1b, 1c and 1d to be true.

The second condition about influence of independent variable (4 C’s of Working environment) and mediator variable (Individual performance) was also satisfied, thus provide support for Hypotheses 1. Additionally, third condition that the mediator variable (Individual performance) should be related to dependent variable (Organizational performance) was also satisfied). Finally, the direct effect of independent variable (β =.33, p < .00, β =.17, p < .05, β =.39, p < .01 and β =.29, p < .01) on dependent variable (Organizational performance) is less than indirect effect of independent variable (β =.35, p < .00, β =.19, p < .00, β =.41, p < .01 and β =.33, p < .01) on dependent variable (Organizational performance) through mediator (Individual performance), thus this satisfy the last condition of full mediation.

Results in Table 5 for PROCESS and Bootstrapping indicated that all indirect paths were significant (i.e., z = 7.39, for the link of career planning-individual performance-organizational performance; z = 6.94, for the link of consultative management-individual performance-organizational performance; z = 7.34, for the link of communication-individual performance-organizational performance; z = 7.47, for the link of culture-individual performance-organizational performance). A full mediation effect of individual performance on path c which is the direct relation of X and Y in all four cases are concluded. All the values of ULCI and LLCI have no zeroes within the range which is a strong predictor of effects of mediation on c path. The result from the bootstrapping analysis also revealed that indirect effects of four factors of working environment on organizational performance through individual performance are significant because zero is not in the 99% confidence interval.

Thus, with support from path analysis, SPSS PROCESS and bootstrapping, we conclude that individual performance fully mediates the relationship between factors of the work environment and organizational performance, supporting Hypothesis 2 and its subsequent hypotheses 2a, 2b, 2c & 2d.

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Saima Aftab, Komal Khalid

5. CONCLUSION The findings of this study are consistent with the findings of the previous studies i.e. work environment has a strong impact on individual employee performance. This study, however, presents a framework including 4C’s of work environment (Career Planning, Consultative Management, Communication, and Culture) as the most important factors, if implemented effectively in unison, can bring about a positive change in organization’s overall performance and productivity levels through enhancing the performance of individual employees.

6. AVAILABILITY OF DATA AND MATERIAL Data can be made available by contacting the corresponding author.

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Saima Aftab is a Lecturer of Human Resource Management at the Department of Management Sciences, University of Wah, Pakistan. She received her MS degree in HRM from Capital University of Management Sciences (CUST) with very high distinction and MBA HRM from the same university with a Gold medal. She is a PhD scholar at Foundation University Rawalpindi Campus, Pakistan. Her areas of research interest include Industrial Organizational Psychology, Organizational Behaviour and Leadership.

Dr. Komal Khalid is an Assistant Professor of HRM at the King Abdulaziz University, Jeddah. She has her doctorate in the Human Resource Management. She is mainly interested in the Impact of Economic Effects on HRM Practices and Employee Outcomes.

Trademarks Disclaimer: All products names including trademarks™ or registered® trademarks mentioned in this article are the property of their respective owners, using for identification and educational purposes only. Use of them does not imply any endorsement or affiliation.

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©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies

International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies http://TuEngr.com

PAPER ID: 11A02E

MEASUREMENT OF INDIVIDUAL PERFORMANCE USING FIVE-FACTOR PERSONALITY MODEL: A COMPARATIVE STUDY OF PUBLIC AND PRIVATE HOSPITALS SECTOR OF PAKISTAN a

a

Malik Faisal Azeem , Adil T. Paracha , Wajid Shakeel a

a*

, and Malik J. Saboor

a

Department of Management Sciences, COMSATS University Islamabad, PAKISTAN.

ARTICLEINFO

A B S T RA C T

Article history: Received 06 June 2019 Received in revised form 15 October 2019 Accepted 23 October 2019 Available online 12 November 2019

The performance of an organization plays a very important role in achieving competitive advantage if it is effective. In order to make an employee perform efficiently and effectively, an organization must know what situations are best suited to make him/her work. What is the personality of each employee and how each can work at their best? The current study was conducted to highlight the relationship between personality traits and individual performance while examining the moderating role of employee engagement. The respondents of the study were (Medical) doctors working as Dermatologists, Podiatrists, Gynecologist, Cardiologists, Neurosurgeons and Physicians in private and public sector hospitals in Rawalpindi/Islamabad (Pakistan). The data was collected using simple random sampling (sample size 350).

Quantitative analysis was conducted using SPSS®22. Results of the survey manifest that all the five personality traits have a significant impact on individual performance and employee engagement as variable moderates the said relationship.

Keywords: Big five factors; Personality traits; Individual Performance; Employee Engagement; Five-Factor Personality Trait Approach; Extraversion; Agreeableness; Conscientiousness; Openness to Experience; Neuroticism.

Disciplinary: Management Sciences (Human Resources Management) and Mathematics (Statistics). ©2020 INT TRANS J ENG MANAG SCI TECH.

1. INTRODUCTION Performance as an outcome/action is associated with the behavior of the employees that involves attention to small matters or details. Performance in the organizational context is that how an individual performs his/her required task by fulfilling his/her obligations according to the given standards. According to Salgado and Táuriz, (2014), personality measures derive job performance, out of which big five personality traits are the critical ones. There is plenty of work conducted on personality traits (Mayer et al., 2001, McDougall, 1932; Paracha et al., 2020). Cattell and Cattell *Corresponding author (Wajid S. Ahmed). Tel: +331-6091264. Email: wajid_shakeel@comsats.edu.pk ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:10A02E http://TUENGR.COM/V10A/11A02E.pdf DOI: 10.14456/ITJEMAST.2020.25

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(1995) brought the number of personality factors from 4500 to 16 which were used in various studies i.e. (Tupes and Christal, 1992, Bennett and English, 2011, Sackett and Hakel, 1979, Norman, 1963, Hedrick and Smith, 1968).

2. LITERATURE REVIEW 2.1 PERSONALITY People work in a different way even in the same situation. Studies i.e. (Bertolino et al., 2013, Sanchez-Ruiz et al., 2013, Kurukulasuriya and Rosenthal, 2013) have derived strong connections between personality and employee performance. The personality traits of the older employees tend to be more stable as compared to the younger employees. According to Barrick and Mount (1991), personality is associated with the performance of an individual. With some unique dimensions, personality makes individuals different from each other. Decisions and actions are image of personality and are considered as important factors for any individual at different levels of the organization. Personality plays a vital role when it comes to working in groups or teams (Barrick and Mount, 1991).

The Five-Factor Personality Trait Approach contains the itemsâ&#x20AC;&#x2122; illustrations in the Five-Factor Personality Questionnaire (FFPQ) which illustrates behaviors associated with five personality traits i.e. extraversion, agreeableness, openness to experience, neuroticism and conscientiousness. Many psychologists (personality) second the notion of the said five dimensions of personality (Panos Paris 2017; Boudreaux, 2016; Rollock1 and Lui, 2016). Multidimensional Emotional Intelligence Assessment (MEIA) has been derived from influential emotional intelligence model of Mayer et al.

(2001) which includes creative thinking, regulation of self-emotion, regulation of othersâ&#x20AC;&#x2122; emotion , recognition of othersâ&#x20AC;&#x2122; emotion, recognition of self-emotion, reason v/s intuition, empathy, mood redirected attention, nonverbal emotional expression and motivating emotions. Block (1995) by doing lexical analysis, concluded that various issues about the five-factor approach are delimited.

Moreover Costa and McCrae (1992) used two sources i.e. peer rating and self-report for the assessment of five-factor personality model. Personality makes people unique (Moraski, 2001) and varying behavior and unique ways of behaving cannot be overlooked (Phipps and Prieto, 2011). Thus personality characteristics are the unique combination of traits that differentiate individuals that influence their interaction with their environment (Moraski, 2001).

2.2 BIG FIVE PERSONALITY TRAITS In recent times the five personality traits have been the most debated issue regarding the understanding of the entire section of a normal personality (Bartone et al., 2009). Kurukulasuriya and Rosenthal (2013) confirmed the relationship between personality traits and employee performance.

The big five approach carries five indicators of the personality that according to Judge et al. (2002) are extraversion, agreeableness, conscientiousness, neuroticism, and openness to experiences. Big five Personality Traits can also be used to predict creativity, success, and innovativeness and can be helpful in finding out the outcome of employee performance (Leutner et al., 2014). Various studies i.e. (Nga and Shamuganathan, 2010, Bartone et al., 2009, Bhatti et al., 2013) worked on personality factors using multiple contexts.

Extraversion is the tendency to be energetic, warm, and aggressive. Individuals with

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Wajid S. Ahmed, Adil T. Paracha, Malik F. Azeem and Malik J. Saboor

extraversion tend to be more talkative, self-confident and their energy level is frequently high, so they are impatient. Extroversion according to Tupes and Christal (1961), is all about being, Adventurous, Energetic, Frank, Assertive, Social, Cheerful and Composed. Kurukulasuriya and Rosenthal (2013) reported high extraversion among employees and those with high extroversion were found proud, comfortable and happy which has also been confirmed by Bhatti et al. (2013). The extraversion appears to be social, action makeable, somehow first movers (Bhatti et al., 2013). Extraversion sometimes causes awkward social situations that may be hostile (Paris, 2017). According to Ott and de Vries (2012), individuals, with a high tendency of extraversion are mostly able to be more debatable, open to discussion and negotiable. Colbert et al. (2012) stated that individuals with extraversion characteristics have the power to be socially dominant and be more interactive and communicative.

Agreeableness is defined as a person being, good-natured, emotionally mature, cooperative, trustworthy, kind, adaptable and the one who is not jealous (Tupes and Christal, 1961). Individuals with high tendencies of this trait are most likely to be generous, trusting, empathetic, capacity to bear, etc. These individuals if are recognized and understood as extroverts can be utilized as smooth role players. In todayâ&#x20AC;&#x2122;s world whether socially or organizationally all individuals need to be socially connected. According to Bhatti et al. (2014), an individual having personality factor of agreeableness is sympathetic, devoted and caring. Individuals identified with agreeableness trait are usually considered generous, trusting, empathetic, and cooperative and carry good relationships with others (Phipps and Prieto, 2011). Moreover individuals carrying agreeableness have been found good in conflict resolution and perform better on their jobs (Bhatti et al., 2013). The tendency of agreeableness factor carries cooperation, cheerfulness, supportiveness, social responsiveness, and harmony which makes individuals more flexible in adjustments (Phipps and Prieto, 2011).

Conscientiousness is defined as responsibility, dependability, conventionality, and preservance (Tupes and Christal, 1961). Surgeons have been reported more conscientious than being carefree and irresponsible as compared to the rest of the population (Kurukulasuriya and Rosenthal, 2013).

According to Sartori, Costantini, Ceschi, and Scalco, (2017), Conscientiousness can be stated as one of the key drivers of job performance. Conscientiousness can also be referred to as dependability (French, 1953) and conformity (Campbell and Fiske, 1959) and people who have high tendency of conscientiousness are identified as organized, and responsible ones. (Colbert et al., 2012) found that such personality traits include hardworking, task completed and very organized and highly responsible individuals. In addition, a great deal with conscientiousness reveals that such individuals are achievement-oriented because they are highly tasked competent which is a good sign for an employee (Judge et al., 2002).

Openness to Experience in ab-initio was identified as a cultural facet (Campbell and Fiske, 1959). Bhatti et al. (2014) narrated openness to experience as a reason for wide interest and exploring the social environment. The individuals who are open to experience are found aesthetically fastidious, socially polished, independent, cultured and imaginative (Tupes and Christal, 1961). Openness, according to Paris (2017) can be a source of performance and engagement. According to Kurukulasuriya and Rosenthal (2013), male individuals in hospitals are found to be more open and ready to go for new experiences as compared to the other gender. Openness to experience is highly *Corresponding author (Wajid S. Ahmed). Tel: +331-6091264. Email: wajid_shakeel@comsats.edu.pk Š2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:10A02E http://TUENGR.COM/V10A/11A02E.pdf DOI: 10.14456/ITJEMAST.2020.25

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sought-after trait to enhance productivity of the organization or improve the team performance, giving chances to new ideas and creativity is one of the essential required skills and abilities of leader.

Creativity is also seen as an important part of this trait.

Neuroticism is primarily associated with disturbance anxiety and tense personality. Tupes and Christal (1961) described neuroticism as neurotic, not placid or poised, hypochondriac, dependent emotionally immature and irresponsible. Neuroticism is a personality trait that is moody and always tense personality (Bhatti et al., 2013). Kurukulasuriya and Rosenthal (2013) quoted that the doctors and surgeons are less neurotic and more emotionally stable and thus their performance remains stable.

Evidence exhibit that less neurotic or emotionally stable individuals are more likely to deal in troublesome, annoying and uncomfortable situation and have grip over the problems accurse there (Bhatti et al., 2013).

2.3 INDIVIDUAL PERFORMANCE Human Resource is the key or driving force behind the overall performance of the organization.

Some views on performance have been stated in the past studies i.e. (Ralph et al., 1967, Tett et al., 1991). Individual Performance can be explained as to how well an individual is performing by meeting the requirements of the provided job. Chervenak et al. (2004) extended the work on job performance and personality traits of individuals and validated the ‘Big Five Model’ in pharmaceutical industry. Sartori et al. (2017) also confirmed the association of Big Five Personality Traits with Performance. Personality traits have been confirmed as valid predictors of performance growth in multiple studies conducted in the past i.e. (Arnold et al., 2015, Tett et al., 1991). The system utility has cooperated in case of dependency of employee selection decisions on the trait-based model as a measure of establishment (Deadrick and Madigan, 1990).

2.4 EMPLOYEE ENGAGEMENT Employee Engagement ensures that the employee is dedicated to achieving an organization’s goals and objectives. Welch (2011) termed engagement as work engagement, job engagement, and employee engagement. Kahn (1990) for the first time promulgated the concept of engagement as the binding of employees to their required work roles. He further categorized engagement as an employee engages himself physically, emotionally and cognitively. A study i.e. (Shantz et al., 2013) confirmed that if employees are provided proper feedback and autonomy on job they engage more in their job and increase their performance. Shuck and Reio (2014) found out a strong association between employee engagement and employee mental well-being. Factors that drive engagement are internal communication (Mishra et al., 2014), Rewards (Breevaart et al., 2014) and employee satisfaction (Harter et al., 2002). According to Harter et al. (2002) employees with innovative approaches, flexibility, willingness to contribute generally perform better. Anitha (2014) confirmed a significant relationship between employee engagement and employee performance. As the economic trends are changing, capital is plentiful, global competition is increasing, ideas are generated rapidly and with least cost possible and employees are ready to switch their jobs easily (Meyer and Gagnè, 2008).

Engaged employees are those employees who are willing to give time to their work, they are quite enthusiastic and can help their organization in achieving competitive advantage (Haider et al., 2007).

Thus, the literature exhibits that the personality traits are linked with employee engagement and performance and cannot be achieved directly without following the route of engagement.

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2.5 HEALTH SECTOR OF PAKISTAN Pakistan Institute of Medical Sciences (PIMS) as a public-sector hospital started its operations in 1985 which initially was named as IHC (Islamabad Health Complex) has been working for the growth of human health care needs. In addition to providing medical facilities to the citizen of Rawalpindi-Islamabad and surrounding areas, PIMS also serves as a National Reference Centre for giving dedicated diagnostic and curative services to the referred patients by institutions. With 592 beds and 22 surgical and medical specialties, PIMS includes 1800 employees including Consultants, Executive Director, Specialists, Non-medical officers, Medical officers, and Nurses.

Holy Family Hospital, a public-sector hospital was constructed by the mission of Philadelphia’s Christians in 1927. A hospital designed by a World War II Italian prisoner was taken by the Punjab government in the late 70s and it got affiliation with the Rawalpindi medical college for academic purposes. Hospital with more than 510 beds later was acknowledged as an autonomous hospital by Punjab Medical and Health Institutions Act 1986 in the year 1998 with its multiple health facilities.

RGH (Rawalpindi General Hospital) is another known public-sector hospital also known as Benazir Bhutto Hospital (BBH). Located at Murree Road, Rawalpindi, RGH offers basic services as well as other medical services, for example, Orthopedic Surgery, Ophthalmology, Cardiology, Dermatology, Gynecology & Obstetrics, Pathology, psychiatrist, Urology, Radiology, Surgery, and Otorhinolaryngology.

SIH (Shifa International Hospital) started its operations on October 06, 1989 with the idea of a high class medical facility in Pakistan on over 11 acres of land. Their Medicine department consists of ‘dermatologists, Cardiologists, Emergency Infectious, Neurology, Ophthalmology, Podiatrist, Gynecologist, Psychiatrist, Nephrologist and Pulmonologist.

2.6 CONCEPTUAL FRAMEWORK In Figure 1, independent variables are the five personality traits whereas, the dependent variable is the only individual performance. There is one moderator Employee Engagement between the relationship of independent (i.e. Personality traits) and the dependent (i.e. Individual Performance).

This will examine that it supports the relationship between personality traits and individual performance or weakens it. This led towards the construction of following hypothesis in order to accomplished study objectives.

Figure 1: Conceptual Framework *Corresponding author (Wajid S. Ahmed). Tel: +331-6091264. Email: wajid_shakeel@comsats.edu.pk ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:10A02E http://TUENGR.COM/V10A/11A02E.pdf DOI: 10.14456/ITJEMAST.2020.25

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H1: Personality traits have a significant and positive relationship with Individual Performance in Private Sector Hospitals.

H2: Personality traits have a significant and positive relationship with Individual Performance in Public Sector Hospitals.

H3: Employee engagement moderates the relationship between Personality Traits and Individual Performance in Private Sector Hospitals.

H4: Employee Engagement moderates the relationship between Personality Traits and Individual Performance in Public Sector Hospitals.

3. DATASET AND METHODOLOGY This section gives detail about the study dataset and the methodology proposed to accomplish relative objectives.

3.1 DATASET The data collected from the three public and three private hospitals to investigate the above-mentioned relationships. The selected hospitals are considered to fulfill the need for the required data as they are noticeably the best hospitals known for their services. The data was collected using self-administered questionnaire. A questionnaire with 36 items was used which was structured as a research instrument. It contained 25 items on personality traits, in which each variable consisted of 5 items. Furthermore, there were five items of individual personality and six items for Employee Engagement respectively.

3.2 METHODOLOGY Description of Instrument: In order to measure personality traits, a 25 items questionnaire was adapted from John and Srivastava (1999) which contained items of, extraversion, agreeableness, openness to experience, neuroticism and conscientiousness. Five items for Individual performance were taken and modified from the works of Erdem et al. (2003) and Yang and Ok Choi (2009). Six items of employee engagement were added to the questionnaire from the employee engagement scale of JRA Kahnâ&#x20AC;&#x2122;s work (Kahn, 1990) which were also used by (May et al., 2004). Measurement was made using point Likert scale from 1 to 5 with 1 being strongly disagreed, 5 strongly agreeing.

3.3 SAMPLING AND TARGET POPULATION Out of 350, a total number of questionnaires received fit for analysis (59 from PIMS, 59 from Holy Family, 49 from RGH, 71 from Shifa International, 36 from Maryam Memorial and 76 from Quaid-e-Azam International Hospital). The targeted population for the research was comprised of individuals or doctors who were working as, Physicians, Cardiologists, Podiatrists, Gynaecologists and Neurosurgeons in private as well as public sector hospitals providing medical services in Rawalpindi and Islamabad.

Table 1: Sampling and Target Population Org N (%)

PIMS 59 16

Holy Family 59 16

RGH 49 14

Shifa Intern.

71 21

Maryam Memo 36 11

Quaid-e-Azam 76 22

Total 350 100

There are six hospitals taken for this research consisting of three private hospitals i.e. Shifa

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International hospital, Maryam Memorial Hospital and Quaid-e-Azam International Hospital and three public hospitals i.e. PIMS (Pakistan Institute of Medical Sciences), RGH (Rawalpindi General Hospital, it is also known as Benazir Bhutto Hospital) and Holy Family Hospital. A total of 382 questionnaires were distributed among the respondents in the said hospitals out of which 350 were received fit for analysis. Out of the total received questionnaires, 167 questionnaires were gathered from the government-owned hospitals and 183 questionnaires were collected from the privately owned hospitals. Out of 350, the male and female proportion is reflected in Table 2.

Table 2 : Male and Female proportion Gender Male Female Total

N 245 105 350

Percentage 70% 30% 100%

4. ANALYSIS RESULTS AND DISCUSSION Data were separated as there is comparison of public and private sector hospital data. Tests i.e. correlation, reliability, direct regression between dependent and independent variables and Moderation test (Hayes and Preacher, 2013) were used separately for the data analysis.

Table 3 : Inter-correlation Public Sector 1 2 3 4 5 6 7

Organization Designation Age Gender Personality Traits Individual Performance Employee Engagement

1 1 .016 -.151 .166* .042 .030 .052

2

3

4

5

6

7

1 .041 .195* -.025 .060 -.051

1 .136 -.006 -.049 -.065

1 .025 .025 .025

1 .909** .895**

1 .978**

1

Note: p<0.05*, p<0.01** Table 3 shows a positive direct positive link from Personality Traits towards Individual Performance in the data of the Public Sector which means that when the value of independent variable i.e. Personality Traits increases the value of Individual Performance also increases. According to correlation value 0.978, the personality traits have a strong relationship with Individual Performance.

Table 4 : Inter-correlation Private Sector 1 2 3 4 5 6 7

Organization Designation Age Gender Personality Traits Individual Performance Employee Engagement

1 1 -.66 .004 0.02 -.025 -.019 -.019

2

3

4

5

6

7

1 1.261** .000 -.060 -.099 -.104

1 -.074 .029 .108 .106

1 .033 -.019 -.024

1 .902** .909**

1 .996**

1

Note: p<0.05*, p<0.01** Table 4 shows the results of Private Sector Hospitalâ&#x20AC;&#x2122;s data. The study analyzes that there is a positive direct relationship between Personality Traits and Individual Performance and can also be interpreted as when the value of independent variable i.e. Personality Traits increases, the value of Individual Performance also increases. The correlation value of 0.996 shows a strong relationship *Corresponding author (Wajid S. Ahmed). Tel: +331-6091264. Email: wajid_shakeel@comsats.edu.pk Š2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:10A02E http://TUENGR.COM/V10A/11A02E.pdf DOI: 10.14456/ITJEMAST.2020.25

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between Independent variable i.e. personality traits and dependent variable i.e. Individual Performance. Thus, making a comparison of the inter-correlation data, it is higher in Private sector hospitals (0.996) as compared to Public Sector Hospital (0.978). Overall, it is good.

4.1 RELIABILITY TEST The reliability of the instrument measures the internal consistency among the factors. Literature intensively exhibits that the value of alpha greater 0.7 determines high internal consistency. Moreover Nunnally (Nunnally, 1967) states alpha value that ranges from 0.5-0.6 is tolerable.

Table 5: Reliability (Private Sector) Sr. 1 2 3 4

Variables Personality Traits Individual Performance Employee Engagement Overall Scale

Cronbach’s alpha .936 .930 .924 .930

No. of Items 25 5 6 36

Table 5 exhibits the reliability analysis of Private Sector Hospitals i.e. the Cronbach’s alpha ranges from 0.924 to 0.930. This shows the high internal consistency of the construct. The overall alpha value is 0.930.

Table 6: Reliability (Public Sector) Sr. 1 2 3 4

Variables Personality Traits Individual Performance Employee Engagement Overall Scale

Cronbach’s alpha .911 .931 .919 .920

No. of Items 25 5 6 36

Table 6 shows the reliability analysis of Public sector hospitals. The Cronbach’s alpha ranges from 0.911 to 0.931. This shows a higher internal consistency of construct. The overall alpha value is 0.920. If we look at the Reliability analysis of public and Private sector hospitals, both are reliable.

Private sector hospital variables have an overall scale of reliability of 0.930 and on the other side Public sector hospital variables have an overall scale of reliability 0.920. In this comparison Private sector’s variables have been found to be more reliable than public sector’s.

4.2 REGRESSION ANALYSIS R-Square describes the deviation of the dependent variable caused by the Independent variable.

Table 7: Model Summary of Private Hospitals Model 1

R .902a

R Square Adjusted R Square .814 .813 a. Predictors: (Constant). Personality

Std. Error of the Estimate 0.4193

In the Regression analysis (Table 7.), R-square i.e. 0.814, indicates that 81.4 percent (approximately) of the data is near to the fitted regression line. Adjusted R square value explains that 81.3 percent variations in Individual Performance are justified by the personality traits. The standard error of .419 in research is usually because of low sample size.

Table 8: Coefficients (Private Hospitals) 1

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Model Constant Personality

Unstandardized Coefficients Standardized Coefficients B Std. Error beta -.610 .171 .814 1.303 .046 .902 a. Dependent Variable: IP

Wajid S. Ahmed, Adil T. Paracha, Malik F. Azeem and Malik J. Saboor

t

Sig.

-3.570 28.154

<.001 <.001

Table 7 exhibits that Hierarchal Regression Analysis was applied to check the connection between the personality traits and individual performance which exhibited positive and significant association as (đ?&#x203A;˝đ?&#x203A;˝= (0.902 <p<0.01)).

Table 9: Model Summary of Public Hospitals Model 1

R .909a

R Square Adjusted R Square .827 .826 a. Predictors: (Constant). Personality

Std. Error of the Estimate 0.417

Table 9 shows the regression analysis of Public sector hospitals in which R square value i.e.

0.827 indicates that around 82.7 percent of the data is near to the fitted regression line. In the current study the value of adjusted R square indicates that about 82.6 percent variations in Individual Performance can be explained by the Personality Traits. There is a standard error of .417 in this research which is quite normal due to low sample size.

Table 10 : Coefficients (Public Hospitals) 1

Model Constant Personality

Unstandardized Coefficients Standardized Coefficients B Std. Error Beta -1.747 .210 1.588 .056 .909 a. Dependent Variable: IP

t

Sig.

-8.302 28.102

<.001 <.001

Hierarchal Regressionâ&#x20AC;&#x2122;s results are mentioned in Table 10. Hierarchal Regression Analysis was utilized to examine the connection between personality traits and individual performance, the results exhibited a positive and significant relationship as (đ?&#x203A;˝đ?&#x203A;˝= (0.909 <p<0.01)).

Moderation Test In Moderation Test, the study tests the impact of the moderator variable (Employee Engagement) on the relationship of independent variables (Personality Traits) and dependent variable (Individual Performance) Hypothesis 3 (H3): pertains to Employee Engagement that moderates the relationship between Personality Traits and Individual Performance in Private Sector Hospitals.

Conducting analysis for moderation, the study used (Hayes and Preacher, 2013) Bootstrapping procedure (5000 iterations, bias correlated 95% confidence interval (CI)) that helps in the distinction of interaction effect that is, when employees having high engagement (+1 S.D) and employees having low engagement (-1 S.D). The Moderation shows insignificant results at all three levels that are mean and the plus/minus standard deviation of the mean. As there is no considerable change in R-square= 0.9928 shows that Employee Engagement does not moderate between Personality Traits and Individual Performance. The interaction effect corresponds that, when having high Employee Engagement (i.e. +1 SD) the, B= 0.0546 (S.E=0.0318), C.I 95% [-0.1174; 0.0082] is same when having low employee engagement (-1 SD) B= -0.0276 (S.E=0.0108), C.I 95% [-0.0711; 0.0159].

Hypothesis 4 (H4): pertains to Employee Engagement that moderates the relationship between Personality Traits and Individual Performance in Public Sector Hospital.

According to the test, a positive change in R-square shows that Employee Engagement significantly moderates between Personality Traits and Individual Performance. The interaction effect corresponds that, when having high Employee Engagement (i.e. +1 SD) a stronger, B= 0.6209 *Corresponding author (Wajid S. Ahmed). Tel: +331-6091264. Email: wajid_shakeel@comsats.edu.pk Š2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:10A02E http://TUENGR.COM/V10A/11A02E.pdf DOI: 10.14456/ITJEMAST.2020.25

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(S.E=0.0688), C.I 95% [0.4851; 0.7566] then that of the low Employee Engagement (-1 SD) B= 0.3332 (S.E=0.0518), C.I 95% [0.2308; 0.4355].

5. CONCLUSION The study has identified several personality traits that have a positive impact on Individual Performance. With respect to the hypotheses, H1 i.e. ‘Personality traits have a significant and positive relationship with Individual Performance in Private Sector Hospitals’ and H2 i.e. ‘Personality traits have a significant and positive relationship with Individual Performance in Public Sector Hospitals’ have been validated so the main reason for conducting the study was to seek and to clarify the link between the two major concepts i.e. Personality Traits and Individual Performance in Private as well as Public sector Hospitals. The most important contribution of this survey was the examination of Individual Performance which is directly affected by personality traits. The research further strengthens that Personality and Performance have direct but a positive relationship according to the survey. In general, the results display that Personality Traits have direct effect on an Individual’s Performance in both sectors (i.e. Public and Private). The big five-factor also is known as five-factor model was focused that has been proven as the most essential aspect to determine an Individual’s Performance. An individual is distinguished due to his/her personality traits. In an organization or in any leading positions, an individual must need to realize his/her own personality that can help him/her to improve his/her performance and effectiveness. Employees of older age tend to be more stable in their performance and emotions as compared to younger employees. They are more conscientious and agreeable (Hertel et al., 2013). Personality traits are quite helpful in predicting performance of an individual and it has also been found that predicting personality traits of an individual can help in their counseling (Sanchez-Ruiz et al., 2013). The surgical staff has been found to be low in neuroticism, high on conscientiousness and extraversion whereas, male staff was found high on openness to experience. Thus, it is very important for their performance and for the nature of their job (Kurukulasuriya and Rosenthal, 2013, Shantz et al., 2013). Employees with enriched jobs may find the job stressful if the engagement part is missing. However, from the results from moderation test (Hayes and Preacher, 2013), it has been demonstrated that Employee Engagement moderates the association among the Big Five Personality Traits and Individual Performance.

Studies observed a high level of moderation between extraversion and Employee Engagement by having a positive attitude and their dynamic role in the job tasks/work. Thus, ‘H4 is accepted i.e.

Employee Engagement moderates the relationship between Performance and Personality Traits in Public Sector Hospitals’. Furthermore, H3 is rejected in the study findings i.e. Employee Engagement (in totality) does not moderate the link among the Personality Traits and Individual Performance in Private sector hospitals. It might have happened due to the lack of data or small sample size of private sector hospitals. Brad Shuck et al. (2011) suggested that an employee’s personality influences the employee’s engagement at work. Truss et al. (2006) also confirmed the said relationship. An individual’s understanding of personality traits could help in realizing the needs and expectations of supervisor. The big need to identify the personality association with Individual Performance is because Individual Performance plays an important role in improving an organizations’ overall performance. Individual Performance is considered the most value able factor in any organization, for that big five models can help in identifying particular leader’s tendencies of behaving, actions,

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decision making, and thinking. The study has mentioned that individuals are required to have factors of experiencing new things and finding new creative, effective and efficient ways to solve the problems which are only possible when they have the tendency of openness to experience. The purpose of this research was also to compare individual performance of both private and public-sector hospitals which has been found insignificant. Overall, both public and private sector hospitals showed similar results.

6. AVAILABILITY OF DATA AND MATERIAL Data can be made available by contacting the corresponding authors

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Dr. WAJID SHAKEEL AHMED obtained PhD Degree in Finance from IQRA University, Islamabad and currently working as an Assistant Professor in MANAGEMENT SCIENCES DEPARTMENT, COMSATS University Islamabad. He has earned his M.Sc. degree in International Finance & Economic Policy from UNIVERSITY OF GLASGOW, SCOTLAND, U.K. Dr.Ahmed work relates with the Quantitative Business Techniques, Time-Series Analysis, Parametric and Non-Parametric Model Applications in Real World.

Dr. Adil Paracha obtained PhD in business administration. He is currently working in COMSATS University Islamabad.

He is graduate of Strathclyde Business Scotland. His work is in area of Strategic Planning, Entrepreneurship.

Malik JAWAD Saboor is currently serving as Assistant Professor at COMSATS University Islamabad. His primary area of interest are Entrepreneurship, Intrapreneurship and Human Resource Management.

Dr.Malik Faisal Azeem is an Assistant Professor at Department of Management Sciences, COMSATS University, Islamabad campus. His area of research encompasses Human Resource Management, Leadership, Human Resource Development, Performance Management, Training and Development, Human Capital Management, Technology Manaand HR Information systems Management.

Trademarks Disclaimer: All products names including trademarks™ or registered® trademarks mentioned in this article are the property of their respective owners, using for identification and educational purposes only. Use of them does not imply any endorsement or affiliation.

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Wajid S. Ahmed, Adil T. Paracha, Malik F. Azeem and Malik J. Saboor

©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies

International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies http://TuEngr.com

PAPER ID: 11A02F

IMPACT OF OWNERSHIP STRUCTURE AND BOARD COMPOSITION ON FINANCIAL DISTRESS OF PAKISTAN STOCK EXCHANGE LISTED MANUFACTURING FIRMS Muhammad Kashif Khurshid

a,c*

b

, Hazoor Muhammad Sabir ,

c

Safdar Hussain Tahir , Muhammad Abrar

c

a

Department of Management Sciences, National University of Modern Languages (NUML), PAKISTAN. Faculty of Economics and Management Sciences, Government College University Faisalabad, PAKISTAN. c Lyallpur Business School (LBS), Government College University, Faisalabad, PAKISTAN. b

ARTICLE INFO

A B S T RA C T

Article history: Received 08 July 2019 Received in revised form 09 October 2019 Accepted 15 October 2019 Available online 12 November 2019

Prediction of financial distress is very important for the long-term survival and growth of the firms. If financial distress is not handled timely without any recovery strategy, it can lead the company to bankruptcy. Since independence, Pakistan has witnessed numerous cases of bankruptcy among non-financial firms. This study sought to investigate the impact of ownership structure and board composition on Keywords: Emerging Markets Score; financial distress of non-financial firms listed in Pakistan Stock Exchange (PSX) for the period 2009-2016. The financial distress is Ownership Structure; measured using Emerging Markets Z-Score (EMS). In accomplishing Board Composition; Managerial Ownership; the overall objectives, the study sought to establish the effect of board Individual Ownership; structure, ownership structure on financial distress of non-financial Institutional Ownership; firms. A census of all the 384 non-financial companies listed in PSX as Z Score; Board Size; of December 2016 constituted as a target population. Descriptive CEO Duality; Ownership statistics, correlation analysis, and panel regression techniques were Concentration. used to analyze the data. The fixed-effects model used based on Hausman test. The results of the study indicate that individual’s ownership, CEO’s duality, insider’s directorship, firms size, and leverage play positive and significant role to enhance the financial distress while; managerial ownership, institutional ownership, board size, and board independence play significant role to reduce the financial distress of PSX listed firms. The study concludes the significance of board and ownership structure to predict financial distress.

Disciplinary: Financial Management, Mathematics (Statistics). ©2019 INT TRANS J ENG MANAG SCI TECH.

1. INTRODUCTION Predicting financial distress in a dynamic environment is a difficult task and it can lead towards *Corresponding author (M.Kashif Khurshid). Tel: +92-300-9650054 Email: kashif041@gmail.com. ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02F http://TUENGR.COM/V10A/11A02F.pdf DOI: 10.14456/ITJEMAST.2020.26

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bankruptcy if not handled timely without any recovery strategy. Its timely assessment can help the organizations to focus on future growth in the competitive environment of the global economy.

Financial distress is defined as “a vulnerable situation whereby a firm does not meet creditors’ obligations or are met with difficulties”. Scholars have different views in explaining financial distress, for instance; Shaukat and Affandi (2015) defined “financially distressed firms have problems in paying off their financial obligations to their creditors in time”, whereas Garman et al.

(2004) described financial distress as “an extreme physical or mental stress that includes concerns and fears about financial issues”. Shumway (2001) defined “financial distress as a situation when a company is unable to meet its financial obligations.” So, the investigation and forecast of financial distress are very vital for the long-term growth and survival of the companies from financial perspectives.

Andrade and Kaplan (1998) defined “financial distress as the situation when a company does not have the capacity to fulfill its liabilities to the third parties.” Hendel (1996) expressed “financial distress as the likelihood of bankruptcy, which depends on the level of liquid assets as well as on credit availability”. Wruck (1990) stated, “financial distress is a situation where a firm’s operating cash flows are not sufficient to satisfy current obligations (such as trade credits or interest expenses) and the firm is forced to take corrective actions.”

The prevalence of financial distress is a global issue that has shown its poisonous effect on both developed and developing economies. Pakistan, being an underdeveloped country has also witnessed a wave of financial distress among firms from 1963 to 2016 and several firms have been defaulted and delisted from Pakistan Stock Exchange (PSX). However, the hype of delisting was at peak during 2012, resultantly 68 firms were delisted from PSX. The question arises; what factors really cause financial distress in Pakistan? This study examines these factors i.e. ownership structure and board composition and tends to determine the degree to which they can affect financial distress of non-financial firms listed at PSX during 2009-2016. Much of empirical evidence has relied on the prediction of financial distress by incorporating different factors. These pieces of evidence have proved that firm characteristics cannot be ignored to forecast financial distress. Despite these characteristics, wrong financing decisions, lack of internal control, skilled labor and access to credit are caused in financial distress (Memba & Job, 2013).

Julius (2012) witnessed that financial variables contribute more while predicting financial distress. The influence of other than financial factors i.e. ownership structure and board composition have been ignored to determine the failure and financial distress of firms. This implies that studies done on causes of financial distress incorporating firm characteristics have not given proper attention to the pattern of shareholding and board composition.

Although several studies have been conducted on Altman’s Z-Score Model, bet very few of them done in Pakistan. Most of the studies used Z-Score to check its accuracy and applicability in different markets but the present study is conducted by using Emerging Markets Z-Score which is appropriate for emerging markets like Pakistan. Thus, this study attempts to fill this gap of limited literature within the context of Pakistan. Secondly, this study is unique as it considers the ownership and board structure with control variables. This investigation will help as an early warning system to protect the firms from financial distress.

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Khurshid, M. K.,Sabir, H. M., Tahir, S. H., Abrar, M.

1.1 MEASURES OF FINANCIAL DISTRESS Asquith et al. (1994) declared a firm in financial distress “if its interest coverage ratio is less than 0.8 for that year or less than one for the previous two consecutive years.” DeAngelo and DeAngelo, (1990) defined as “if a firm accounts losses for three consecutive years in the absence of high debt ratio”. Beaver (1966) effectively predicted financial health by using a single variable i.e. interest coverage ratio. Later, several researchers declared that a single variable to measure the financial distress and financial health of the company is not a suitable approach. So, different measures and approaches have been used on the canvas of the literature on financial distress.

Altman (1968) developed the Z-Score model to capture the financial distress of the firms based on five multiple variables. This model is vastly used in literature to capture the financial distress of firms in various countries. He is the pioneer who presented a multivariate approach in prediction of financial distress and put a methodological change in business failure prediction from a single ratio to multiple measures (Balcaen & Ooghe, 2006). To predict the financial distress of non-listed firms, Altman (1993) revised the original Z-Score model as “a numerator of the fourth variable (X4) to book value of equity from the market value of equity”. The change in X4 resulted in a slight modification in discrimination zones and coefficients.

Ohlson (1980) also formulated a multifactor formula to predict bankruptcy and it is considered as a good alternate of Z-Score. He presented a 9 factors model based on easily available financial ratios, which can be collected from the normal financial statements. Firms having O-Score equal to 50% or greater are considered as in financial distress otherwise they are assumed as financially healthy firms.

Altman and Hotchkiss (2010) presented the latest modifications in the Z-Score which is called Emerging Market Score (Demsetz & Lehn, 1985) model. This model is specifically modified for the firms working in developing counties. The Emerging Market Score model was formulated to attain more accuracy for the prediction of the financial distress of manufacturing firms in emerging markets.

This model is based on four variables with a constant value.

1.2 OWNERSHIP STRUCTURE The following variables are used to capture the ownership structure of the firms.

1.2.1 MANAGERIAL OWNERSHIP In financial distress, the conflict of interests between management and other share-holders is more severe as compared to normal business. Management took decisions to obtain personal benefits rather than to overcome the firm form financial distress, due to the uncertainty of their jobs (Donker et al., 2009). Managerial ownership is a powerful tool to achieve the alignment of their interests with those of other shareholders (Sheifer & Vishny, 2007).

1.2.2 INDIVIDUAL’S OWNERSHIP Shares held by the general public is taken as an individual’s ownership. It shows the dis-concentration of ownership. Less concentrated ownership is considered one of the contradictory factor which may contribute to enhance or control the financial distress.

1.2.3 INSTITUTIONAL OWNERSHIP Very few studies have analyzed the role of institutional ownership like banks, pension funds, and insurance firms on the firm’s survival. They pointed out the effectiveness of ownership *Corresponding author (M.Kashif Khurshid). Tel: +92-300-9650054 Email: kashif041@gmail.com. ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02F http://TUENGR.COM/V10A/11A02F.pdf DOI: 10.14456/ITJEMAST.2020.26

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concentration as a good corporate governance tool to monitor management. (Mangena & Chamisa, 2008) reported an inverse relationship of institutional ownership with financial distress. While (Donker et al., 2009) were in the opinion of a positive role of institutional ownership and financial distress.

1.3 BOARD COMPOSITION Board composition is depicted by the board size, independence, duality, insider and outsider directorship. In this study, board composition is captured using the following variables.

1.3.1 BOARD SIZE Yermack (1996) reported that larger size boards have their own problems related to conflict of interests and discretion to decision making. Larger boards also face the problem of slower decision making and lack of coordination. So, larger boards have to do many compromises as opposed to smaller boards.

1.3.2 BOARD INDEPENDENCE Independence of the BODs for decision making is known as board independence. Board independence enhances the decision making of the boards and reduces the conflict of interests related to their self-interest and benefits. Agency theory also advocates that there must be control of the board over the management. So the presence of outside directors can reduce the conflict of interest between BOD’s and the shareholders by monitoring and controlling over the decision making (Fama & Jensen, 1995).

1.3.3 CEO DUALITY Usually, board independence is also measured through the separation of two positions on the board i.e. CEO and the Chairman. There are also conflicting results on the relationship of duality with financial failure, which are also diverse. As Daily and Dalton (1994) reported a positive role of duality on financial distress while Khurshid et al. (2018) statistically proved a negative impact of duality on the probability of financial distress by applying the binary logit regression.

2. LITERATURE REVIEW 2.1 THEORETICAL BACKGROUND Jensen and Meckling (1976) proposed the separation of a firm’s ownership and its control would cause a conflict of interest between the management of the firm and its shareholders, whereby the former does not act in the best interest of the latter. They also argued that managerial ownership may help to reduce the conflict of interests of managers and shareholders to lower agency costs and decrease the chances of financial distress. In situations where shareholdings are regulated by a few individuals being the major shareholders, decision-making power, vests on them, unlike the CEOs. In such situations, managers have no say on the firms’ growth direction. Alternatively, where the BOD has corporate governance problems, the firm is faced with financial decision problems. According to Jensen (1986) availability of free cash flow force managers invest in projects with negative NPVs due to conflict of interest. Decisions on non-financial variables may affect the firm heavily in the long run and if no interventions are made, this may lead to financial distress.

Shaukat and Affandi (2015) investigated the association between financial distress and financial performance on 15 listed companies from the fuel and energy sector for the period of 2007 to 2012.

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They used the Altman Z score to capture the financial distress, while EPS is used as financial performance. They recommend using other performance measures i.e. stock returns, economic value-added and return of investment. Further to enhance the sample size is also suggested. They used simple and multiple regressions but ignored the panel data assumptions. So, they highlighted to use the probit model in future research.

Agrawal and Chatterjee (2015) focused on the relationship of earnings management with financial distress on 150 distressed Indian firms from 2009 to 2014. They used the “Altman’s Z Score” and “Merton’s distance to default” as the proxies of financial distress, while “discretionary accruals” used as the proxy of earnings management. Their sample selection was based on the top four credit rating agencies from India. The sample period showed a gradual increase in the default firms i.e. 4 firms in 2009 and 150 firms in 2014. Their results proved that both measures of financial distress have a positive and significant impact on discretionary accruals. Which means low distressed firm prone to a higher degree of earnings management and vice versa.

Lee and Yeh (2004) studied the impact of Corporate Governance (CG) on Financial Distress in the context of Taiwan, using the director’s ownership with controlling shareholder, the pledge ratio, and control deviation, as the proxies of CG. They took a sample from the Taiwan Stock Exchange, of 45 companies from 1996 to 1999. The Binary Logistic Regression technique reported the financial distress of 63.09 percent on average for crises facing firms, and 23.68 percent for financially healthy firms. Charalambakis (2015) used a discrete hazard approach to predict the future bankruptcy of firms, analyzing the 303 Greece firms' 9 years data i.e. 2002-2010. Four variables were used by researcher to check to predict the chances of the bankruptcy of firms i.e. sales, profitability, liquidity, and financial factors. The researcher found a significant positive relationship between financial risk and bankruptcy while on the other hand sales and profitability have a negative significant relationship with bankruptcy. Liquidity is found to have an insignificant relationship with bankruptcy.

Chen et al. (2013) worked on the factors that cause financial distress. They used the data of 24 Chinese companies for analysis. Data for 4 years i.e. 2007 to 2010 were used by them for prediction of factors behind financial distress. They divide variables that cause financial distress into four categories i.e. solvency, profitability, growth ability, and operations. Cheng et al. (2009) used data of firms that are listed at the Taiwan Stock Exchange for 8 years i.e. 1998 to 2005 to check whether financial ratios and corporate governance are the factors behind bankruptcy or not. 21 different financial ratios were used by them while on the other hand corporate governance is measured by insider holdings of CEO and supervisors. After analysis at the end, they concluded that financial ratios are used for prediction of bankruptcy of firms but if it is integrated along with corporate governance this model can provide a better base for prediction. They formulated a pre-warning model by combining the governance and financial factors for prediction of bankruptcy.

Ciampi (2015) used both financial and governance-related factors for the prediction of financial distress in small enterprises of Italy. For this purpose, the researcher used data from 934 firms for analysis. The researcher established two different models for analysis one was of financial ratios while secondly include the variable of corporate governance. The researcher found the negative relationship of CEO duality, decreased the number of outside directors and ownership concentration with financial distress while on the other hand the accuracy of the model is improved by adding the variable of corporate governance. *Corresponding author (M.Kashif Khurshid). Tel: +92-300-9650054 Email: kashif041@gmail.com. ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02F http://TUENGR.COM/V10A/11A02F.pdf DOI: 10.14456/ITJEMAST.2020.26

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Darrat et al. (2016) used the 217 financial firms data over 1996-2006 to estimate the association of CG and financial distress. The analysis proved that a smaller company board increases the probability of financial distress for the firm while the increased number of outside directors on the board of the company increases the chances of bankruptcy in sophisticated firms and vice versa.

Results suggested that corporate governance is an important element in financial distress forecast.

Donker et al. (2009) checked the association of ownershipâ&#x20AC;&#x2122;s structure with bankruptcy, using the 177 non-financial firms Netherland data for 11 years (1992-2002) for analysis. Their results found a negative association of management shareholding and trust holding with financial distress while on the other hand relationship of family shareholding and block-holding with financial distress is insignificant. While cash flows, payout, and size was negatively correlated with bankruptcy. The debt of the firm was positively correlated with financial distress.

Du and Lai (2018) worked on low audit quality firms to check the relationship between investment opportunities and financial distress, using 1675 Chinese firms data over seven years (2006-2012). Results suggested that in the case of a low-quality audit, investment opportunity builds up a contagion effect. This effect continued for longer time-period in case of firms having a low-quality audit. Elloumi and Gueyie (2001) used the 92 Canadian firms' data to investigate the impact of CG on bankruptcy. They divided sample into two portions first half was of healthy firms and the next half was of financially distressed firms. They used the six years data 1994-1998. Results suggested that besides financial indicators board composition is an important factor that leads the firm towards financial distress while outside directors and directorship lead the firm towards bankruptcy. While outside directors improve the financial condition of the company because inside directors lack freedom.

Ernawati et al. (2018) used the 310 Indonesian firms' data to explore the association of financial distress with corporate governance and financial performance. They used ten financial indicators and five indicators of corporate governance from which audit opinion has an insignificant impact on financial distress while director ownership is negatively related while block holder ownership is positively related to financial distress. On the other hand not all but mostly financial indicators have a significant impact on the financial distress of the firm. Fawzi et al. (2015) worked to check the impact of cash flows on financial distress. They used 104 Malaysian firms' data over four years (2009-2012) for the purpose of analysis. Data of 52 healthy firms and 52 distressed firms were used. Five indicators of cash flows were used and results suggested that they have significant power to predict the financial distress of firms while on the other hand, this model shows 82% overall model accuracy.

Liquidity, solvency, efficiency, and profitability was combined with cash flow base to predict results.

None studies examined the effect of ownership structure, board composition, and financial factors on the prediction of financial distress in the context of PSX listed firms for the latest period 2009-2016.

2.2 RESEARCH HYPOTHESES The following hypotheses are formulated on theoretical basics and literature: H1: Managerial ownership (MO) plays a negative role in detecting financial distress.

H2: Individual ownership (IO) has a negative impact on the firmâ&#x20AC;&#x2122;s financial distress.

H3: Institutional ownership (INO) has a positive impact on the firmâ&#x20AC;&#x2122;s financial distress.

H4: Board size (BS) plays a negative role in detecting financial distress.

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H5: CEO and chairmanâ&#x20AC;&#x2122;s duality (CD) has a positive impact on the firmâ&#x20AC;&#x2122;s financial distress.

H6: Board independence (BI) has a negative impact on the firmâ&#x20AC;&#x2122;s financial distress.

H7: Insider directors (ID) plays a positive impact on financial distress.

3. RESEARCH METHODOLOGY This section provides the measurement of the study variables and tools/techniques used for data collection and analysis.

3.1 POPULATION, SAMPLE AND SAMPLING TECHNIQUE There are 378 listed firms at Pakistan Stock Exchange during 2016 under the non-financial sector, considered as the population for this study. A systematic sampling procedure is used to choose the appropriate samples. A similar sampling method is also used by (Khurshid et al., 2018; Udin et al., 2017). In the first step, the proportion of firms from each representing sector is selected. Then from each sector upper and lower quartile firms finally selected based on EMS distress score.

3.2 SOURCES AND TIME SPAN OF DATA The data related to ownership and board structure is collected from the firmâ&#x20AC;&#x2122;s annual statements which were available at their respective websites. While data related to financial variables are retrieved from the Balance Sheet Analysis (BSA-2014, BSA-2015, and BSA-2016) published by the SBP. According to BSA-2016, the 378 firms' data were available up to 2016. This study used panel data of 2009-2016 containing the 76 of cross-sections i.e. the firms. Data of 2008 and before this period is not used purposely because this period is known as the economic crisis period. So, this period can over/underestimate the results.

Table 1: Proxies of study variables Variable Name Dependent Variable Financial Distress (EMS)

Variables Measurement Emerging Markets Score (Demsetz & Lehn, 1985) EM Z Score (2006) EMS = 3.25 + 6.56X1 + 3.26X2 + 6.72 X3 + 1.05X4 Where: đ?&#x2018;&#x160;đ?&#x2018;&#x153;đ?&#x2018;&#x;đ?&#x2018;&#x2DC;đ?&#x2018;&#x2013;đ?&#x2018;&#x203A;đ?&#x2018;&#x201D; đ??śđ?&#x2018;&#x17D;đ?&#x2018;?đ?&#x2018;&#x2013;đ?&#x2018;Ąđ?&#x2018;&#x17D;đ?&#x2018;&#x2122; đ?&#x2018;&#x2026;đ?&#x2018;&#x2019;đ?&#x2018;Ąđ?&#x2018;&#x17D;đ?&#x2018;&#x2013;đ?&#x2018;&#x203A;đ?&#x2018;Ąđ?&#x2018;&#x2019;đ?&#x2018;&#x2018; đ??¸đ?&#x2018;&#x17D;đ?&#x2018;&#x;đ?&#x2018;&#x203A;đ?&#x2018;&#x2013;đ?&#x2018;&#x203A;đ?&#x2018;&#x201D;đ?&#x2018; đ?&#x2018;&#x2039;1 = đ?&#x2018;&#x2021;đ?&#x2018;&#x153;đ?&#x2018;Ąđ?&#x2018;&#x17D;đ?&#x2018;&#x2122; đ??´đ?&#x2018; đ?&#x2018; đ?&#x2018;&#x2019;đ?&#x2018;Ąđ?&#x2018; , đ?&#x2018;&#x2039;2 = đ?&#x2018;&#x2021;đ?&#x2018;&#x153;đ?&#x2018;Ąđ?&#x2018;&#x17D;đ?&#x2018;&#x2122; đ??´đ?&#x2018; đ?&#x2018; đ?&#x2018;&#x2019;đ?&#x2018;Ąđ?&#x2018; đ??¸đ??ľđ??źđ?&#x2018;&#x2021;

đ??ľđ?&#x2018;&#x2030; đ?&#x2018;&#x153;đ?&#x2018;&#x201C; đ??¸đ?&#x2018;&#x17E;đ?&#x2018;˘đ?&#x2018;&#x2013;đ?&#x2018;Ąđ?&#x2018;Ś

đ?&#x2018;&#x2039;3 = đ?&#x2018;&#x2021;đ?&#x2018;&#x153;đ?&#x2018;Ąđ?&#x2018;&#x17D;đ?&#x2018;&#x2122; đ??´đ?&#x2018; đ?&#x2018; đ?&#x2018;&#x2019;đ?&#x2018;Ąđ?&#x2018; , đ?&#x2018;&#x2039;4 = đ?&#x2018;&#x2021;đ?&#x2018;&#x153;đ?&#x2018;Ąđ?&#x2018;&#x17D;đ?&#x2018;&#x2122; đ??ˇđ?&#x2018;&#x2019;đ?&#x2018;?đ?&#x2018;Ą â&#x20AC;&#x153;EMS = Overall scoreâ&#x20AC;? â&#x20AC;&#x153;Discrimination Zones:â&#x20AC;? â&#x20AC;&#x153;Safe zone: EMS > 5.85â&#x20AC;? â&#x20AC;&#x153;Grey zone: 4.15 < EMS < 5.85â&#x20AC;? â&#x20AC;&#x153;Distress zone: EMS <4.15â&#x20AC;? â&#x20AC;&#x153;Source: Altman & Hotchkiss (2006, pp. 267-8)" Independent Variables Managerial Ownership (MO) Individualâ&#x20AC;&#x2122;s Ownership (IO) Institutional Ownership (INO) Board size (BS) CEO Duality (CD) Board Independence (BI) Control Variables Firmâ&#x20AC;&#x2122;s Size (FS) Leverage (Lev)

Shares held by BODâ&#x20AC;˛s Total No. of Shares Outstanding Shares owned by public = Total No. of Shares Outstanding =

=

Shares owned by Institutions Total No.of Shares Outstanding

(Manzaneque et al. 2016)

Total number of members or directors on the companyâ&#x20AC;&#x2122;s board A Dummy variable (1,0) 1 if the CEO is also the chairman of the board, otherwise 0.

No.of Independendt NonExecutive Directors = (Fracassi & Tate, 2012) Total No.of Board Members Natural Log of Total Assets =

Total Debts Total Assets

*Corresponding author (M.Kashif Khurshid). Tel: +92-300-9650054 Email: kashif041@gmail.com. Š2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02F http://TUENGR.COM/V10A/11A02F.pdf DOI: 10.14456/ITJEMAST.2020.26

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3.3 ECONOMETRIC MODEL This study applied the econometric model as đ??¸đ?&#x2018;&#x20AC;đ?&#x2018;&#x2020;đ?&#x2018;&#x2013;đ?&#x2018;Ą = đ?&#x203A;˝đ?&#x2018;&#x201A; + đ?&#x203A;˝1 (đ?&#x2018;&#x20AC;đ?&#x2018;&#x201A;)đ?&#x2018;&#x2013;đ?&#x2018;Ą + đ?&#x203A;˝2 (đ??źđ?&#x2018;&#x201A;)đ?&#x2018;&#x2013;đ?&#x2018;Ą + đ?&#x203A;˝3 (đ??źđ?&#x2018; đ?&#x2018;&#x201A;)đ?&#x2018;&#x2013;đ?&#x2018;Ą +đ?&#x203A;˝4 (đ??ľđ?&#x2018;&#x2020;)đ?&#x2018;&#x2013;đ?&#x2018;Ą + đ?&#x203A;˝5 (đ??śđ??ˇ)đ?&#x2018;&#x2013;đ?&#x2018;Ą + đ?&#x203A;˝6 (đ??ľđ??ź )đ?&#x2018;&#x2013;đ?&#x2018;Ą + đ?&#x203A;˝7 (đ??źđ??ˇ)đ?&#x2018;&#x2013;đ?&#x2018;Ą +đ?&#x203A;˝8 (đ??šđ?&#x2018;?)đ?&#x2018;&#x2013;đ?&#x2018;Ą + đ?&#x203A;˝9 (đ??żđ?&#x2018;&#x2019;đ?&#x2018;Ł)đ?&#x2018;&#x2013;đ?&#x2018;Ą + đ?&#x2018;&#x2019;đ?&#x2018;&#x2013;đ?&#x2018;Ą (1).

Here, EMS=Emerging Marketsâ&#x20AC;&#x2122;Z Score; MO=Mangerial Ownership; IO=Individualâ&#x20AC;&#x2122;s Ownership: INO=Institutional Ownership; BS=Board Size; CD=CEOâ&#x20AC;&#x2122;s Duality, BI=Board Independence; ID= Insiderâ&#x20AC;&#x2122;s Directorship; FS=Firms Size, and LEV=Leverage

4. DATA ANALYSIS AND RESULTS DISCUSSION The study employed different statistical tools for data analyses purpose. These data analysis tools include descriptive statistics, correlation, and regression analysis. A panel data regression was employed on the secondary data obtained from the financial statements of sample firms.

4.1 DESCRIPTIVE ANALYSIS Descriptive statistics are applied to the collected data. Which summarizes the data in a meaningful way to show the pattern of the data. However, descriptive statistics cannot be used to make a conclusion about the relationships of study variables. So simply descriptive statistics describe the data and its pattern.

Table 2: â&#x20AC;&#x153;Descriptive Statistics.

Min. Max. Range Mean Median S. D. Skw Kurt.

N 0.059 15.114 15.055 2.532 1.568 2.522 2.167 8.985 608 EMS 0.000 98.132 98.132 41.584 42.869 28.957 0.088 1.799 608 MO 0.788 80.375 79.587 29.165 26.645 19.352 0.780 3.116 608 IO 0.274 91.400 91.126 23.889 15.623 23.608 0.877 2.648 608 INO 6.000 13.000 7.000 7.788 7.000 1.419 2.653 9.776 608 BS 0.000 1.000 1.000 0.320 0.000 0.467 0.773 1.597 608 CD 0.000 0.333 0.333 0.089 0.123 0.098 0.756 2.497 608 BI 0.077 0.692 0.615 0.314 0.286 0.152 0.311 2.454 608 ID 4.573 8.548 3.975 6.360 6.237 0.749 0.656 3.677 608 FS 0.180 2.147 1.967 0.794 0.764 0.390 1.003 4.175 608 LEV NOTE: here; EMS=Emerging Marketsâ&#x20AC;&#x2122; Z-Score, MO=Managerial Ownership, IO=Individualâ&#x20AC;&#x2122;s Ownership, INO=Institutional Ownership, BS=Board Size, CD=CEOâ&#x20AC;&#x2122;s Duality, BI=Board Independence, ID= Insiderâ&#x20AC;&#x2122;s Directorship, FS=Firms Size, and LEV=Leverage

Table 2 shows that EMS has 0.059 and 15.114 values for the lowest and highest. Its mean value is 2.532, with a standard deviation of 2.522. While its range is 15.055 with a median value of 1.568. The managerial ownership has the lowest value of zero and the highest value of 98.132 with a range of 98.132 and a deviation of 28.957. The individual`s ownership has the lowest value of 0.788 and the highest value of 80.375 with a range of 79.587 and standard deviation of 19.352. The institutional ownership has the lowest value of 0.274 and the highest value of 91.4 with a range of 91.126 and standard deviation of 23.601. The board size has the lowest value of 6 members and highest members of 13 with a range of 7, mean value of 7.788 and standard deviation of 1.419. The CEO duality has the lowest value of zero and the highest value of 1with a range of 1, mean value of 0.320 and standard deviation of 0.467. The board's independence has the lowest value of zero and the highest value of 0.333 with a range of 0.333, mean value of 0.089 and standard deviation of 0.098. The ratio of insider directors in the board has the lowest value of 0.0769 and the highest value of 0.692 with a range of 0.615, mean value of 0.314 and standard deviation of 0.152. The firm size has the lowest value of 4.573 and the highest value of 8.548 with a range of 3.975, mean value of 3.975 and standard

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Khurshid, M. K.,Sabir, H. M., Tahir, S. H., Abrar, M.

deviation of 0.749. The Leverage has the lowest value of 0.18 and the highest value of 2.147 with a range of 1.967, mean value of 0.794 and standard deviation of 0.390.

4.2 CORRELATION ANALYSIS Table 3 describes the correlation relationship of variables with each other including all the independent and dependent variables. Its value may be positive or negative but its values cannot be greater than one or less than one.

Table 3: “Correlation Matrix” EMS MO IO INO BS CD BI ID FS LEV 1 EMS 0.016 1 MO -0.160 -0.427 1 IO 0.240 -0.398 -0.138 1 INO 0.094 0.109 -0.111 -0.048 1 BS 0.216 0.325 -0.022 -0.183 -0.293 1 CD 0.055 0.155 0.026 -0.108 0.176 -0.103 1 BI -0.162 0.209 0.196 -0.450 -0.219 0.192 0.270 1 ID 0.150 0.343 -0.314 0.098 0.413 -0.049 0.221 -0.034 1 FS -0.518 -0.041 0.233 -0.193 0.124 0.227 -0.198 0.098 -0.297 1 LEV NOTE: here; EMS=Emerging Markets’Z Score, MO=Mangerial Ownership, IO=Individual’s Ownership, INO=Institutional Ownership, BS=Board Size, CD=CEO’s Duality, BI=Board Independence, ID= Insider’s Directorship, FS=Firms Size, and LEV=Leverage

Table 3 shows a positive little correlation of EMS with managerial ownership, institutional ownership, size of the board members, the duality of the CEO & the chairman, board independence and firm’s size with the values less than 0.25. While the correlation values of -0.16, -0.162 and -0.518 show a negative correlation of individual ownership, insider directorship and financial leverage with the financial health (EMS) of the firms.

4.3 PANEL DATA ANALYSIS Panel data analysis is widely used in econometrics and social sciences. Panel data caters two-dimensional i.e. cross-sectional and times series data at a time. Usually, the data is collected over time and individuals. Then regression is run on both dimensions. Different models such as “Fixed Effects Model (FEM)” and “Random Effects Model (REM)” or “Error Component Model (ECM)” can be used for panel data analysis. To choose an appropriate model between “fixed effects” and “random effects” models; the Hausman test can be used (Gujarati, 2004).

Table 4: “Redundant Fixed Effects and HausmanTest” “Effects Test” “Statistic” “Cross-section F” 13.540 “Cross-section Chi-square (RF Effects Test) 242.119 “Cross-section random (Hausman Test) 47.488

“d.f.”

(27,185) 27 9

Prob. <0.001 <0.001 <0.001

Table 4 presents the results of the Redundant Fixed Effects Test and Hausman Test. The statistic value of Cross Section F-Test is 13.540164 with a degree of freedom of 27,185 and a p-value of <0.001, while the statistic value of cross-section Chi-square of 242.119 with a degree of freedom of 27 is <0.001 suggest applying “Fixed Effects Model” rather than “Common Effects Model”. The significant P-Value (<0.001) with the statistic value of Chi-Square 47.488 and degree of freedom of 9 suggests applying the “Fixed Effects model” rather than “random effects model”.

*Corresponding author (M.Kashif Khurshid). Tel: +92-300-9650054 Email: kashif041@gmail.com. ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02F http://TUENGR.COM/V10A/11A02F.pdf DOI: 10.14456/ITJEMAST.2020.26

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Table 5: Panel Regression Analysis “Variable” “Coefficient”“Std. Error”“t-Statistic”“Prob.”

C 30.251 5.928 5.103 <0.001 MO 0.031 0.015 2.077 0.0391 IO -0.028 0.013 -2.155 0.032 INO 0.027 0.012 2.214 0.028 BS 0.794 0.304 2.614 0.010 CD -2.573 0.422 -6.094 <0.001 BI 2.595 1.103 2.353 0.020 ID -3.337 1.020 -3.271 0.001 FS -4.649 0.800 -5.808 <0.001 LEV -4.184 0.516 -8.110 <0.001 “R-squared” 0.767 “F-statistic” 16.957 “Adjusted R-squared” 0.722 “Prob (F-statistic)” <0.001 NOTE: here; EMS=Emerging Markets’Z Score, MO=Mangerial Ownership, IO=Individual’s Ownership, INO=Institutional Ownership, BS=Board Size, CD=CEO’s Duality, BI=Board Independence, ID= Insider’s Directorship, FS=Firms Size, and LEV=Leverage

Table 5 describes the regression results of the research model. The F-statistic (16.957) and p-value (<0.001) depicts the overall significance and fitness of the model. The value of adjusted R2 depicts that all the study variables put a change of 0.767 in the dependent variable i.e. EMS. The coefficient value of MO is 0.031 with a probability value of 0.039 demonstrates that one unit change in MO gives 0.031 change in EMS i.e. financial health. In other-words one-unit increase in MO gives 0.031 units a decrease in FD of the firms. These results support the agency theory in the sense that an increase in MO reduces the agency cost and agency conflict and improves the financial health.

Further the results of the study are aligned with past studies (Donker et al., 2009; Khurshid et al., 2018; Manzaneque et al., 2016; Nahar Abdullah, 2006). The results accept the “H1: Managerial ownership (MO) plays a negative role in detecting financial distress.” The coefficient value of individual’s ownership is -0.028 with a probability value of 0.032 demonstrates that one-unit increase in individual’s i.e. public ownership gives -0.028 changes in EMS i.e. financial health of the selected firms. In other-words one-unit increase in individual ownership gives 0.028 units increase in FD of the firms. These results prove that public ownership causes financial distress. The results reject the “H2: Individual Ownership (IO) has a negative impact on financial distress.”

The coefficient value of institutional ownership is 0.027 with a probability value of 0.028 demonstrates that one unit increase in institutional ownership gives 0.027 units change in EMS i.e. financial health of the selected firms. In other-words one-unit increase in institutional ownership gives 0.027 units a decrease in FD of the firms. These results support that institutional ownership plays a vigilant role in corporate governance matters of the firms and improves the financial health of the firms. Further, the results of the study are aligned with past studies (Donker et al., 2009; Khurshid et al., 2018) and opposed to (Manzaneque et al., 2016). The results reject the “H3: Institutional ownership (INO) has a positive impact on the firm’s financial distress.”

The coefficient value of board size is 0.794 with a probability value of 0.010 demonstrates that a one-unit increase in board size gives 0.794 change in EMS i.e. financial health of the selected firms.

In other words, a one-unit increase in the board-size gives 0.794 units decrease in FD of the firms.

These results proved that a larger size board improves the quality of the corporate governance and in turn, reduces the chances of FD. Further the study results are aligned with past studies (Ciampi, 2015; Elloumi & Gueyie, 2001; Khurshid et al., 2018; Manzaneque et al., 2016; Wang & Deng, 2006). The results accept the “H4: Board size (BS) plays a negative role in detecting financial distress.”

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Khurshid, M. K.,Sabir, H. M., Tahir, S. H., Abrar, M.

The coefficient value of the CEO’s duality is -2.573 with a probability value of <0.001 demonstrates that one-unit increase in duality gives -2.573 changes in EMS i.e. financial health of the selected firms. In other-words one-unit increase in duality gives a 2.573-unit increase in FD of the firms. These results prove that duality plays a negative impact on financial health and positive impact on FD. Further, the results of the study are aligned with the past studies (Ciampi, 2015; Daily & Dalton, 1994; Khurshid et al., 2018) and opposed to the (Manzaneque et al., 2016; Nahar Abdullah, 2006; Salloum & Azoury, 2012). The results accept the“H5: CEO and chairman’s duality (CD) has a positive impact on the firm’s financial distress.” The coefficient value of BI is 2.595 with a probability value of 0.020 demonstrates that one-unit increase in board independence gives 2.595 change in EMS i.e. financial health of the selected firms. In other-words one-unit increase in board-independence gives 2.595 units decrease in FD of the firms. These results proved that board-independence improves the quality of corporate governance and in turn reduces the FD. Further, the results of the study are aligned with the past studies (Donker et al., 2009; Li et al., 2008; Manzaneque et al., 2016; Nahar Abdullah, 2006) and opposed (Khurshid et al., 2018). The results accept the H6: Board independence (BI) has a negative impact on the firm’s financial distress.”

The coefficient value of insider directorship is -3.337 with a probability value of 0.001 demonstrates that one-unit increase in insider directorship gives -3.337 change in EMS i.e. financial health of the selected firms. In other-words one-unit increase in insider-directorship gives 3.337 units an increase in FD of the firms. These results negate the agency theory in the sense that an increase in insider directorship increases the agency cost and agency conflicts and reduces financial health.

Further the results of the study are aligned with the past studies (Khurshid et al., 2018; Salloum & Azoury, 2012). The results reject the “H7: Insider directors (ID) plays a positive impact on financial distress. The coefficient value of a firm’s size is -4.649 with a probability value of <0.001 demonstrates that a one-unit increase in a firm’s size puts -4.649 changes in EMS i.e. financial health of the selected firms. In other-words one-unit increase in business, size gives 4.649 units increase in FD of the firms. The results indicate that larger size firms have a higher propensity to catch in financial distress. Further the results of the study are aligned (Donker et al., 2009). The coefficient value of leverage is -4.184 with a probability value of <0.001 demonstrates that one-unit increase in leverage puts -4.184 changes in EMS i.e. financial health of the selected firms. In other-words one-unit increase in financial leverage gives 4.184 units increase in FD of the firms. The results indicate that high financial levered firms have a higher propensity to catch in financial distress.

Further, the results of the study are aligned (Elloumi & Gueyie, 2001; Li et al., 2008) but opposed to (Donker et al., 2009).

5. CONCLUSION The study is conducted to check the role of ownership structure and board composition in financial distress. To measure “financial distress” the Emerging Markets Z-Score model is used. To capture the ownership structure three proxies are used i.e. managerial ownership, individual ownership, and institutional ownership, while the board composition is proxied by board size, CEO’s duality, board independence and insider’s ownership. To check the impact of ownership structure and board composition on financial distress Fixed Effects Model is applied based on panel data of 608 firm observations. It is found that there exists a positive correlation of managerial ownership, *Corresponding author (M.Kashif Khurshid). Tel: +92-300-9650054 Email: kashif041@gmail.com. ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02F http://TUENGR.COM/V10A/11A02F.pdf DOI: 10.14456/ITJEMAST.2020.26

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institutional ownership, the board size, CEO’s duality and board independence with EMS while individual ownership and insiders’ directors have a negative correlation with EMS. Fixed Effects Model depicts that managerial ownership, institutional ownership, the board size, and board independence have a positive impact on Emerging Markets Z-Score, while individual’s ownership, CEO’s duality, and insider’s ownership put negative influence on Emerging Markets Z-Score. The overall conclusion is as:  Higher managerial ownership leads to an increase in the financial health of the firms and reduces the chances of financial distress.  Individual’s i.e. public ownership leads to a decrease in the financial health of the firms and in turn, can lead a firm to face financial distress.  Institutional ownership enhances the financial health of the firms and hence reduces the occurrence of financial distress.  Larger board size and board independence also enhance the financial health of the firms and in turn, reduces the chances of financial distress.  Duality and insider’s directorship lead towards the financial crises and puts an adverse effect on financial health.

6. AVAILABILITY OF DATA AND MATERIAL Data can be made available by contacting the corresponding author.

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Muhammad Kashif Khurshid is a Ph.D. candidate at GC University. He is a Lecturer at National University of Modern Languages in the Department of Management Science. He did his MS in the field of Business Administration with specialization in Finance from Mohammad Ali Jinnah University. His research is in the field of Corporate Governance and Corporate Finance.

Professor Dr. Hazoor Muhammad Sabir is Dean of the Faculty of Economics and Management Sciences, Lyallpur Business School (LBS) at GC University. His researches are related to Modern Business Mangement.

Dr. Safdar Hussain Tahir is Chairperson and an Associate Professor in the Department of Lyallpur Business School (LBS) at GC University. Currently, he is pursuing a postdoc in the field of small family businesses at UWA Business School, Perth, Australia. His research is in the field of Corporate Governance and Corporate Finance.

Dr. Muhammad Abrar is Director and Associate Professor in the Department of Lyallpur Business School (LBS) at GC University. His researches encompass Digital Management.

Trademarks Disclaimer: All product names including trademarks™ or registered® trademarks mentioned in this article are the property of their respective owners, using for identification and educational purposes only. The use of them does not imply any endorsement or affiliation.

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Khurshid, M. K.,Sabir, H. M., Tahir, S. H., Abrar, M.

©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies

International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies http://TuEngr.com PAPER ID: 11A02G

INFLUENTIAL FACTORS OF WATER BODY TO ENHANCE THE URBAN COOLING ISLANDS (UCIs): A REVIEW Tasneem Mostofa a

a*

, Golnoosh Manteghi

a

Department of Architecture, Faculty of Architecture and Built Environment, Infrastructure University Kuala Lumpur, MALAYSIA.

ARTICLEINFO

A B S T RA C T

Article history: Received 08 August 2019 Received in revised form 08 October 2019 Accepted 18 October 2019 Available online 14 November 2019

In the current growth of urbanization, problems especially anthropogenic heat emissions are emerging. Urban Heat Islands (UHI) are one of the major causes of environmental problem and it exacerbates the cities’ living environment heat conditions critical to human health. Various factors affect the urban thermal environment, which is closely linked with UHI as well as the outdoor thermal Keywords: Urban Heat Island (UHI); comfort. These factors include buildings density, urban landscaping and water bodies. Water bodies are one of the significant components of the Urban Microclimate; core surface. Water influence the urban thermal environment of the Urban Cooling Islands (UCI); Water Bodies; surrounding through its cooling effect, either through evaporation or Water Cooling Island heat transfer between the air and water. This review paper comprehends (WCI). the factors that facilitate the water bodies cooling effect in order to achieve urban cooling island to mitigate UHI. Disciplinary: Architectural Sciences. ©2020 INT TRANS J ENG MANAG SCI TECH.

1. INTRODUCTION Urban development is one of the key forms of land cover change that has profoundly affected the surrounding environment. Trees are cut down and as a result, natural vegetation cover is basically substituted by paved surfaces in the throes of urbanization. For ornamental or recreational purposes, open spaces are preserved. Transformation and urbanization of the earth's surface to urban application is an indication of massive changes in global usage of the land, affecting the environment considerably (Manteghi et al., 2015; Weng & Yang, 2004). The microclimate that is experienced in urban valleys is far from which is experienced in the suburban areas because of the dissimilarities of the valley surfaces (Manteghi & Mostofa, 2020). The Public body that lies between the urban space and the building can considerably influence the energy consumption of the urban buildings, the outdoor and the indoor microclimates as well as thermal comfort for the pedestrians. Insufficient moisture, as well as vegetation covers for evaporative cooling that is experienced in urban space, leads to a variety of urban problems entailing urban heat islands. Urban climate researchers have *Corresponding author (Tasneem Mostofa). Tel: +60-16-5145616. Email: mtasnem@gmail.com. ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02G http://TUENGR.COM/V11/11A02G.pdf DOI: 10.14456/ITJEMAST.2020.27

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proposed a number of viable urban development concepts and techniques that embolden the addition of pleasant outdoor spaces and energy-efficient buildings by designing for solar radiation, temperature, and humidity (Syafii et al., 2017; Gaitani et al., 2014). In contrast to the urban heat island, areas that having low temperatures when contrasted with their surroundings are called UCI (Urban Cooling Islands) (Lee et al., 2016). The impact of UCI is generated by trees shadow or green and water space evaporation (Rosenzweig et al., 2006). Water spaces for example stream, river, and lakes in specific have a significant aspect in creating urban cool islands because water spaces have higher evaporation rates than green spaces. Therefore, water spaces have the role of cooling islands in urban areas as a result of the temperature difference of their adjacent environment (Hathway & Sharples, 2012; Sun & Chen, 2012). As UCI comprises the shaded area, green and water space to improve the UHI, we will more precisely focus on the parameters that influence to increase evaporation of water bodies. The urban water bodies are highly capable of mitigating the temperature of urban environment by reducing the consumption of energy, enhancing outdoor thermal comfort including its positive effects on UHI (Urban Heat Island) (Manteghi et al., 2016).

Due to the flat surface and the large heat capacity, water body is useful to form an "air ductâ&#x20AC;? for the urban climate regulation and as an important solution of urban climate change responding as well as improving the outdoor environment (Zeng et al.,2017).

Despite the fact that many studies have confirmed the effectiveness of water bodies in the reduction of air temperature, though very few review papers of how different variables influence the cooling effect of water bodies. However, conducting such studies in real urban settings comes with many shortcomings due to the complexities and heterogeneity of the pertinent road surface materials and building, resulting to difficulty in isolating the individual effects of every influential variable for instance, configuration, surface area, shape and position (Manteghi et al., 2016). Responding these inquiries might support us to adopt more suitable indicators to quantify the microclimate regulation services of water spaces, and could provide us with useful measures for urban landscape design. It is therefore required in understanding these parameters, which may be beneficial to designers and planners. The purpose of this paper is talking over the influential parameters of water bodies and finding further ranges for the study.

2. COOLING EFFECTS OF WATER BODIES Water features that are found in the urban zone influence the micro-climate atmosphere of the encompassing regions positively when natural cooling from evaporative process is required during the hot radiant day. Generally, the rise in water availability boosts evaporation, including the related uptake of latent heat that gives an extra daytime cooling effect. Air temperature over or close to waterways is completely different from that over land due to differences in the way water cool and warmth. Water bodies are the best safeguards of radiation since they reveal very slight thermal response. A good number of researches claimed that water bodies or water feature evaporative cooling is still one of the best ways of passive cooling for cities (Manteghi et al., 2015; Shafaghat et al., 2016; VĂślker et al., 2013). Whatever the case, evaporative cooling may not work perfectly in hot and humid regions because of the high humidity (Manteghi et al., 2018).

The microclimates around waterways in a variety of past investigations have been discovered to have reduced the air temperatures as compared to the surrounding urbanized areas (Manteghi et al., 2019). It has been acknowledged during the hot season in Japan, the air temperature difference

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between the river and the city was between 1–3° C ( Syafii et al., 2017). Observations were similarly, proven that the cooling effect of a small river in the Sheffield (UK), with an average temperature difference of approximately 1°C during the hot season. It was discovered that a large pond in Fukuoka, Japan had a 3° C cooling effect that extended up to 400 m (Hathway & Sharples, 2012). In addition, small size water bodies can have a horizontal cooling effect (Chen et al., 2006; Syafii et al., 2017). Another research revealed that even a 4 m2 pond is capable of reducing the air temperature in its surroundings (Syafii et al., 2017; Robitu et al., 2004). The Ota River cooling effect in Hiroshima, Japan was discovered to reach up to 5° C directly above the river and disseminated about 100 m from the river banks (Hathway & Sharples, 2012). However, in urban areas, the climatic effects of a water body depend on the direction and speed of the predominant wind, and the water surface area.

UHI mitigation in policy has revealed that even a small body of water can lead to a cooling effect of 1°C in temperatures reduction and the only way in which these cooling effects can be improved by carefully designing the surrounding areas. The reestablishment of water through the planned incorporation of porous surfaces, like porous paving, or the presence of water bodies, including rivers or ponds, is capable of lessening the UHI by returning the floor moisture availability to the same values as those in rural areas. The water evaporation process has been studied, and the cooling results for a variety of cities demonstrated with models recommended for a variety of sites (Hathway & Sharples, 2012). Generally, suggestions emphasis including green space to counter the high temperature but urban water spaces, or all surface waters within a city, are also considered as a possible variable for UHI mitigation. According to Völker et al., (2013) the influence of different microclimate zones on UHI mitigation by water bodies, the resilient result was monitored in tropical climates and wetlands revealed the strongest effect average temperature difference of 2 K. The accessibility of water contributes to an operative latent heat sink, and evaporative cooling leans towards weakening the layer of surface and additional increases mixing. These characteristics affect the water bodies' surface temperature to be cooler than the land. Enriched evaporation is capable of lowering the air temperature, hence mitigates the process of UHI, and therefore achieves thermal comfort for inhabitants.

It is observed that cooling distribution for the water body exhibits seasonal and diurnal variations. A good example is the study of a river in Sheffield (UK), which the cooling impact of the river was likely to be maximum before noon, and during the hot days representing ~2 K over the river and in the buffer between the land and the river, showing 1.5 K. However, no considerable cooling was observed at night (Hathway & Sharples, 2012; Jin et al., 2017; Wong et al., 2012).

Although all mentioned studies have reported the practicality of water bodies in the air temperature reduction, researchers have limited knowledge of the way a variety of parameters are affecting the cooling effect. In table 1, we can perceive that many researchers worked with the features of a water body that have impact on UHI as well as thermal comfort. With the help of this table, research gap, as well as scope for future studies, can be identified. Very few investigations have been carried out on the parameter that influences the cooling effect.

Table 1: Summary of Literature Review from the Year 2010-2019 No. 1

Authors Xu et al., (2019)

Title Region Evaluation of energy-saving Sub-tropical potential of urban green space

Scale Micro climate

Method

PET

UHI

ENVI-met

X

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*Corresponding author (Tasneem Mostofa). Tel: +60-16-5145616. Email: mtasnem@gmail.com. ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02G http://TUENGR.COM/V11/11A02G.pdf DOI: 10.14456/ITJEMAST.2020.27

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and its water bodies Assessment of Role of Water Microclimat Field Body on Thermal Comfort in Tropical e Measurement Ahmedabad, India Do water bodies play an important role in the Cai et al., Micro Field relationship between urban Sub-tropical (2018) climate Measurement form and land surface temperature?

Zeng et al., The Impact of Water on Sub Microclimat Numerical (2017) Microclimate in Lingnan Area tropical e Simulation Jin et al., Effect of water body forms on Microclimat Envi-met (2017b) microclimate of the residential Temperate e Simulation district Du & Li, The Effect of Pearl River on Remote (2017) Summer Urban Thermal Sub Microclimat Sensing Image Environment of Guangzhou tropical e and Simulation Syafii et al., Experimental Study on the (2016) Influence of Urban Water Experiment Microclimat Body on Thermal Temperate study with e Environment at Outdoor Scale Equipment Model Hongyu et Research on the cooling island Remote al., (2016) effects of water body: A case Sensing Image Sub Microclimat study of Shanghai, China and tropical e Regression Analysis Manteghi et Water bodies an urban Microclimat Tropical Review Paper al., (2015) microclimate: A review e Yang et al., The impact analysis of water Sub Microclimat Regression (2015) body landscape pattern on tropical e Analysis urban Steeneveld Refreshing the role of open Study with Temperate X et al., (2014) water surfaces on UHT Equipment Li & Yu, Mitigation of urban heat (2014) development by cool island Regression Subtropical X effect of green space and water Analysis body Theeuwes et Modeling the influence of al., (2013) open water surfaces on the Sub-Tropica Meteorologica Mesoscale summertime temperature and l l Model thermal comfort in the city Hathway & The interaction of rivers and Sharples, urban form in mitigating the Temperate Investigation Mesoscale (2012) Urban Heat Island effect: A Maritime Examine UK case study Sun & Chen, How can urban water bodies Micro Investigation (2012) be designed for climate Temperate climate and Analysis adaptation?

Wong et al., Influence of water bodies on Microclimat Investigation (2012) outdoor air temperature in a X e and Analysis hot and humid climate Xu, et al., Evaluation of human thermal On-site (2010) comfort near urban waterbody Sub-Tropica Microclimat Measurement during summer l e and Calculation Gajjar & Devi*, (2019)

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3

4 5

6

7

8

9 10

11 12

13

14

15

16

17

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X

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X

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X

X

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X

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X

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X

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X

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2.1 WATER BODIES EFFECT IN URBAN MICROCLIMATE In particular ways, urban environment modifies the urban microclimate. The structure and the geographical location of the city, building materials, regional meteorology, geometrical configuration, vegetation, and water lead to significant consequences on the urban microclimate

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Golnoosh Manteghi, Tasneem Mostofa

(Robitu et al., 2006). Therefore to improve urban climate, a number of policies have been recommended: higher albedo, more vegetation Akbari, et al. (2001), or water bodies that favor the evaporative cooling (Du & Li, 2017). Evaporative cooling is one of the most proficient ways of passive cooling for buildings and urban spaces in warm zones (Robitu et al., 2006). Syafii et al., (2017) recommended water facilities like fountains or waterfall, with the aim of creating favorable urban microclimate. The air temperature measurements on the leeward side underlined a temperature reduction about 3K during the water vaporization period from 14 p.m. to 15 p.m. which could be felt up to about 35 m of the water system. By shading the urban surface by trees and the presence of water bodies the urban microclimate thermal environment enhances. Most of the time, evapotranspiration and evaporation are related to the heat transfer between air, water, and vegetation.

Wind function is very important in the process; in the vicinity of vegetation and surfaces, it supplants the saturated air with drier air. Water features, like water walls and ponds in Singapore, are capable in air temperature reducing up to 1.8° C in sunny clear days (Syafii et al., 2017).

Theeuwes et al. (2013) discovered that bigger lake is likely to have a higher influence in the city with the respect to the direction of wind, whereas smaller lake is equally distributed, despite the fact that they have a smaller cooling effect that may have a lot of impact on a considerable proportion of the city (Theeuwes et al., 2013). A research utilizing numerical simulation study reveals that beside the ability to reduce the air temperature the presence of water bodies are capable of reducing the consumption of energy Robitu et al., (2003) and it will also offer enhanced outdoor thermal comfort with further vegetation, (Manteghi, 2015; Robitu et al., 2006).

Hatway & Sharples (2012) investigate humidity and temperature between August and April in 12 sites, which are located at outstanding remoteness from a minor river that strolls through the metropolis of UK, in places of a variety of urban street particularly in an open street, an open rectangular, and a closed road or entirely enclosed with the use of homes. It resulted in reduction average of 1°C in temperatures that are above 20° C. During the daytime, cooling just took place and varied from 0.25 to 1.82° C. In May, the impact was also great from 1.01 to 1.82° C, instead of June which is from 0.25 to 0.98° C and was expected to be attributable of water in temperatures that are high during the summer months. Furthermore, Sun & Chen, (2012) investigate the state inside the sixth ring-road of Beijing, through a range of 2000 km2 and the particular water bodies should have positions separated by 1500 m or more between each other. Finally a total of 197 water bodies were nominated under the above benchmark. This examination confirmed the fact that the water bodies have a remarkable cooling effect, particularly at ambient air temperatures that are high. Sun & Chen, (2012) demonstrate that water bodies with surrounding built-up land are correlated with stronger cooling effects. The other way, more irregular urban geometry and more distance from the downtown center tended to have less cooling intensity. In hypothetical simulation with ENVI-met and (Ray Man) from Manteghi et al., (2016) illustrate that buildings hight to the width of the street (H/W) aspect ratio of urban geometry has influence on water bodes cooling effect. The study found that urban setting with deep canyon,e.g (H/W>1) and wider river width is more comfortable. With greater plant life, the open streets to the river joined with banks of rivers, led to extra powerful cooling, that turned sustainable over an additional distance. For instance, an open road was 1.2° C cooler compared to a closed street (Hathway & Sharples, 2012). However, the urban geometry that surrounds the corridor of the river is very vital as compared to the mere absence. The consequences *Corresponding author (Tasneem Mostofa). Tel: +60-16-5145616. Email: mtasnem@gmail.com. ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02G http://TUENGR.COM/V11/11A02G.pdf DOI: 10.14456/ITJEMAST.2020.27

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of cooling can be more suitable by considering more carefully the design of a city.

2.2 COOLING EFFECTS OF WATER AREA Previous research confirms that water scale has a considerable impact on its surrounding microclimate. As reported by Sun & Chen (2012) water bodies with larger area has a cooling intensity of 34 % and cooling efficiency of 44%. The thermal environment impact of water area in conjunction with moistening and cooling is more apparent as compared to that of converting water intensity. In a positive volume, the intensity and area of the water have a modifiable feature of regional weather. In accordance with the study of urban water change in layout by the area of water is distributed into four occupies of 4%, 8%, 12% and 16% which is a representation of the proportion of China city’s water distribution (Li et at., 2008). Given that the research concerning impact of urban water on the microclimatic and model parameterization simulation illustrates the fact that 2 km2 water is capable of cooling the 1 km environment range by 0.6 ˚ C, as well as the area of single water below 0.25 km2, has a minor effect to the environment (Zeng et al., 2017).

Syafii et al. (2017) found that the temperature difference, though, does not certainly be guided by the increased ratio of pond size. In this investigation, the cooling benefits between the big pond and the small pond are merely the 0.3˚ C improvement on average though bigger pond has four times a large surface area than the small pond. Conversely, afterward in the night, the large pond has a tendency to warm the air more than the smaller pond (Syafii et al., 2017). As a result of its larger surface area and bigger thermal capacity, the big ponds contribute to absorbing and accumulation more heat during the daytime. As the water area increases, the impact on the locality surroundings also increases, therefore leading to the water location growth, and hence typically increasing the wind velocity from zero to between 1- 0.2 m/s. As the water area increases, the degree of decline of change curve increases from 0.39 ˚ C to 0.2 ˚ C (Zeng et al., 2017). The water temperature of the 400 m2 water body can also be reduced by 0.2 ℃ and the air temperature of 1600 m2 water body can be lessened by 0.39 ℃ and over the 400 m2, water rises by 0.08 m/s, and over 1600 m2, it is possible that water is augmented by 0.13 m/s (Zeng et al., 2017).

With the increase of the water area, the latent heat of water evaporation rises, leading to increasing the wind velocity and decreasing the temperature of water central area. As the area of the water rises in the urban microclimate, the water cooling effect also upsurges.

Modern researches confirm that features like area, shape, etc., can also greatly influence the intensity of cooling effect (Sun & Chen, 2012). The cooling efficacy (distribution and magnitude) of water bodies is affected by the spread and size of spaces. Theeuwes et al. (2013) put up a mesoscale replica of hypothetical water bodies replicated in a city that is idealized. From the study, it is clear that the reasonably large water bodies exhibit a maximum cooling effect to downwind areas as well as the neighboring boundaries. In addition, the width importance of certain water bodies was examined with a review in Beijing’s water bodies that emphasized urban river width as the most important variable that affects the riparian zone’s temperature and the humidity. They were able to discover that when the width of the river was >40 m, it was obvious that there were stable and significant impacts of increase in humidity and decrease in temperatures of the neighboring urban areas (Zhu et al., 2011). Again it is discovered that a 35 m wide river led to a drop of 1–1.5 ◦C ambient temperature (Hongyu et al., 2016).

The temperature and humidity of the air are also affected by the depth of the water. When the water depth increases, it enhances the heat preservation effect of water, cooling effect in summer as

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well as the warming effect in winter (Peng et.al., 2013; Zeng et al., 2017). The cooling effect is also affected by the shape of water. Through the technique of GIS spatial analysis and thermal infrared information processing conferring to the research with the ETM+ remote sensing data and SPOT5, that the water surface temperature is lower than linear river in urban thermal environment, which indicate that the surface water has better a cooling effect (Yue, 2013; Zeng et al., 2017). Concerning a variety of climate impacts of water depth which is derived from mathematical model, the shallow water has a particular warming impact due to the reflectivity which is different than the water-primarily role of cooling effect when the water depth is more than 0.5 m (Zeng et al., 2017).

3. WATER COOLING ISLAND (WCI) The water cooling island discovered by Cao et al., (2010); Chang et al., (2007); & Hongyu et al., (2016) confirmed that it was apparent for water cooling island effect to be found in the water body.

Water evaporation permit ambient atmosphere to fascinate latent heat and considerably decrease the air temperature, so water bodies are considered as urban cooing island in order to act as an important local climate regulating service (Amani-Beni, et al., 2018). As linked with prior researches, this section discovered that water body geometry has greatly affected to create Water Cool Island.

According to the theory of ground surface heat balance, the water body affects the ambient temperature of the neighboring environment apart from corresponding to reasonably lower surface temperature. In line with the preceding research, wetland, city parks, and green space considerably affect the intensity of water cooling effect (Cao et al., 2010; Chen et al., 2014; Sun & Chen, 2012).

Four descriptors which are proportion green land (PG), geometry of water body that is water area (WA), land shape index and proportion impervious surfaces (PI) are applied in quantifying the relations between WCI effects and water body characteristics.

The water cool island alleviates the temperature variation between water bodies and its surroundings, with the use of water vapor and temperature exchange in the horizontal direction.

Improving the surrounding microclimate condition is very important. The formation of local circulation is easier with the improved green land area, leading to bigger impacts on the thermal environment of the water body’s surroundings. Waterbody can, therefore, absorb heat from ambient temperature. Expansive impervious surfaces surrounding the water body increase the temperature of the water body itself apart from increasing the temperature around, weakening the water cooling effects outcomes. In a situation that the percentage of impervious surfaces increased, the proportion of green land improved, the distance between the edges of the water body and the water area changed, therefore the outcomes of water cooling effect will increases.

Through evapotranspiration and shading, vegetation mostly affects the meso- and microclimate (Andrade & Vieira, 2007; Georgi & Dimitriou, 2010; Oliveira et al., 2011). The vegetation shading effect reduces the incident shortwave radiation resulting in surface and ground temperatures that are lower. The effectiveness of shading relies on plant geometry for instance density and crown shape.

Through evapotranspiration, plants also have a cooling effect. Instead of increasing the sensible heat flux like the air temperature, solar energy is transformed into latent heat through changing of water from liquid to gas. In climate studies, comparative assessment of both together is not common despite the fact that water space and green space is often emphasized as to provide considerable ecosystem services (Hathway & Sharples, 2012; Völker et al., 2013). A very good example is *Corresponding author (Tasneem Mostofa). Tel: +60-16-5145616. Email: mtasnem@gmail.com. ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02G http://TUENGR.COM/V11/11A02G.pdf DOI: 10.14456/ITJEMAST.2020.27

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presented by research of three lakes and six parks in Chongqing, China (humid subtropical). Little analysis is offered in description of the synergistic processes concerned, especially for conditions where both green space and water space are resolutely incorporated as green and water infrastructure.

A good example is a study of 20 streams in Washington (USA) that emphasized the impact of riparian vegetation in decreasing the net radiation balance of rivers by lessening the frequency of contact between solar radiation and wind flow. They discovered that within one winter, clear-cutting of this vegetation raised air temperature above the streams by up to 4 K and that conserved vegetated buffers offered some security in opposition to air temperature increases mid-summer, whereas even superior protection was realized in summer, both late and early. Following the removal of such riparian vegetation, vapor density at a stream might rise as higher air temperatures result in more evaporation and augmented rates of transpiration from the left behind riparian vegetation, with the assumption that adequate airflow to evacuate the air that is moist. This corresponding rises in the atmosphere and the moisture reductions from the surface of watercourses may probably have a demeanor on the confined water-cycle (Gunawardena et.al., 2017). In all of these studies it is going to be better to further liven up the urban design by co-modeling the thermal advantages of water and green infrastructure design in conjunction with the outcomes on all additional services of eco system, psychological aspects included, which is relevant. With respect to the eco-psychological advantages and design, accomplishing the right character and balance of green and water infrastructure essentials would particularly appear to be important (Kellert et al., 2011). In all redevelopment and urban development situations, contributions of water space and green space to urban cooling have to be taken into consideration and assessed with the use of a modeling framework that is systematic.

4. DISCUSSION Due to their capability of promoting an impact of cooling through heat transfer and evaporation between the air and water, water bodies aid the changes in the neighboring thermal environment.

Impact of cooling effect of urban water bodies is a remarkably complex procedure, but it is certain that some parameters as size of water body, solar radiation angle, evaporation rate, albedo of water and surrounding area, climate condition, wind speed, water, and air temperature influence the cooling capability (Amani-Beni et al., 2018; Hathway & Sharples, 2012). From some studies, it is obvious that the water cooling effect rises as the water surface area increases and the impact of wind speed on the water is that it raises the water area. There is a strong affiliation between the water surface, wind direction, and building positioning. As compared to the water depth changes, the impact of thermal environment that is created by the water area rises as the water area increases. In order to boost the impact of water on thermal environment, the area covered by the water body can be changed. A water body that lies in an urban environment can considerably decrease the temperature of the ambient air with suitable solar radiation and wind speed. The utilization of water spaces in the context of urban areas is, therefore, one of the important strategies of advancing the urban thermal environment and at the same time in promotion of diverse advantages of urban areas. Positive cooling effects are promoted by extensive use of water bodies. In order to accomplish this, resourceful distribution and design of water spaces to make sure those advantages of microclimate are attained maximum.

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5. CONCLUSION For the case of urban water bodies, increasing the size of the water body with a very simplified shape is appropriate for more UCI intensity and temperature difference. With increasing the water area and presence of green space, the UCI effects could increase significantly. The area size is a vital element in the water bodies that facilitates the reduction of air temperatures. The potential of urban water bodies to mitigate the surrounding temperature has various benefits including the reduction in levels of energy consumption, improved thermal comfort of pedestrians in outdoor environments and creation of urban cool islands. This review paper offers a great opportunity to come up with guidelines for upcoming design developments in consideration of the following points. (1) The urban water bodies’ installation configurations should be designed carefully. Although water body inclusion in an urban environment provides the cooling effect, equally it can raise the humidity of the surrounding resulting in increased pedestrian discomfort. (2) The water bodies’ orientation should be carried out with respect to the prevailing winds so as to enhance optimal levels of cool air distribution. (3) The location of the water bodies is also significant to ensure that there is no excessive shadowing of a water body from the nearby buildings. In fact, such buildings may reduce significantly the water bodies’ cooling effect by decreasing the energy required to facilitate the process of evaporation.

6. AVAILABILITY OF DATA AND MATERIAL Data can be made available by contacting the corresponding author.

7. ACKNOWLEDGEMENT The authors would like to thank the Malaysian Ministry of Higher Education (MOHE) Research grant, under Fundamental Research Grant Scheme, FRGS/1/2017/TK07/IUKL/01/1.

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Manteghi, Golnoosh, Lamit, H., Remaz, D., & Aflaki, A. (2016). ENVI-Met simulation on cooling effect of Melaka River. International Journal of Energy and Environmental Research, 4(2), 7–15.

Manteghi Golnoosh, & Mostofa, T. (2020). Evaporative Pavements as an Urban Heat Island ( UHI ) Mitigation Strategy : A Review. International Transaction Journal of Engineering , Management , & Applied Sciences & Technologies, 11(1), 1–15. doi: 10.14456/ITJEMAST.2020.17 Manteghi, Golnoosh, Mostofa, T., & Hanafi, Z. (2018). Microclimate Field Measurments in Melaka Waterbodies. 7, 543–547.

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Völker, S., Baumeister, H., Classen, T., Hornberg, C., & Kistemann, T. (2013). Evidence for the temperature-mitigating capacity of urban blue space - A health geographic perspective. Erdkunde, 67(4), 355–371. doi: 10.3112/erdkunde.2013.04.05 *Corresponding author (Tasneem Mostofa). Tel: +60-16-5145616. Email: mtasnem@gmail.com. ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02G http://TUENGR.COM/V11/11A02G.pdf DOI: 10.14456/ITJEMAST.2020.27

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Weng, Q., & Yang, S. (2004). Managing the adverse thermal effects of urban development in a densely populated Chinese city. Journal of Environmental Management, 70(2), 145–156. doi: 10.1016/j.jenvman.2003.11.006 Wenze Yue, L. X. (2013). Thermal environment effect of urban water landscape. Acta Ecologica Sinica, 33(6), 1852–1859.

Wong, N. H., Tan, C. L., Nindyani, A. D. S., Jusuf, S. K., & Tan, E. (2012). Influence of water bodies on outdoor air temperature in hot and humid climate. In ICSDC 2011: Integrating Sustainability Practices in the Construction Industry (pp. 81–89).

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Tasneem Mostofa is currently doing her M.Sc. (by research) in the Infrastructure University Kuala Lumpur (IUKL) under the Faculty of Architecture and Built Environment (FABE). Having a major in Architecture, Tasneem received a graduate degree from the BRAC University, Bangladesh with distinct. She is also working with the IUKL as a Graduate Research Assistant (GRA). Her current field of work is Pedestrian Thermal Comfort at street level and Mitigation on Urban Heat Island. Tasneem has attended a number of workshops organized by National and International Body. She is interested to do further research on Water Sensitive Urban Design, Permeable Pavement, and Indoor Thermal Comfort.

Dr.Golnoosh Manteghi is Head of Postgraduate Programme and a Lecturer at Infrastructure University Kuala Lumpur (IUKL) Faculty of Architecture and Built Environment. She received her PhD with Best Student Award from University Technology Malaysia (UTM). Her current interests involve thermal comfort improvement in tropical regions.

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©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies

International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies http://TuEngr.com PAPER ID: 11A02H

GLOBALIZATION AND GENDER EQUALITY IN TERMS OF EDUCATION AND EMPLOYMENT: A CASE OF SELECTED ASIAN DEVELOPING COUNTRIES Zafar Iqbal a, Khurrum Shahzad Mughal b, Faheem Aslam a, Muhammad Majid Khan a, Yasir Tariq Mohmand a* a b

Department of Management Sciences, COMSATS University Islamabad, PAKISTAN. State Bank of Pakistan, Karachi, PAKISTAN. ARTICLEINFO

A B S T RA C T

Article history: Received 12 July 2019 Received in revised form 30 September 2019 Accepted 22 October 2019 Available online 14 November 2019

One of the remarkable advantages of globalization is people having more access to adequate education and employment opportunities.

Education and employment are primary needs for everyone, yet many women still lack these human rights. This study empirically examines the impact of globalization on gender equality in education and employment in twelve Asian developing countries over the period of 1990-2013. In this study, five indicators of globalization are used as independent variables. The impact of five globalization indicators is estimated by using the random effect GLS regression model over the panel of these selected countries. The findings confirm that globalization has a positive impact on gender equality in education and employment.

Keywords: Globalization effects; Gender employment equality; Gender Inequality Index; Education Equality; Employment Equality; Human Development Indicator; Women employment opportunities.

Disciplinary: Multidisciplinary (Management Sciences, Mathematics (Statistics), Social Engineering, Globalization Studies). ©2020 INT TRANS J ENG MANAG SCI TECH.

1. INTRODUCTION Globalization has led to economic interdependence among countries through international trade, capital flows (including financial, physical and human capital) and internationalization of production through Multinational Corporations (MNC). This has also resulted in the transfer of skills and technology as MNCs of developed countries launch their sub-industries in developing countries. To completely benefit from such transfers, the host countries must realize the importance of drivers which have brought about advancements in the developed countries. Among many other different factors like political stability, good governance, and efficient institutions there are also social factors that have played a key role in their economic growth. Gender equality is one of such social factors that have played a pivotal role in their progress since it is difficult to achieve sustainable economic growth if almost half of a country’s population is either dormant or idle. *Corresponding author (Yasir Tariq Mohmand). Email: yasir.tariq@comsats.edu.pk ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 19069642 CODEN: ITJEA8 Paper ID:11A02H http://TUENGR.COM/V11/11A02H.pdf DOI: 10.14456/ITJEMAST.2020.28

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Although gender equality is a broader topic ranging from labor markets, and education to empowerment and health, but the most immediate implications for economic growth would be from the labor market through female participation in the labor force (increasing the quantity) and female education (increasing the quality of labor). Most of the developing countries are far behind the developed part of the world in providing equal opportunities to their female labor force.

Figure 1: Selected Countries on UNDP Gender Inequality Index 2014 Figure 1 presents the UNDP Human Development Indicator; the ‘Gender Inequality Index’ for 2014 for some selected countries. Most of the advanced economies are clustered at the far end of the inequality index. Singapore and China are also in their clusters, but they are fast-growing developing countries. The rest of the developing countries are spread along the axis.

Along with the transfer of technology and knowledge, globalization has led to the spread of awareness on various issues, and it is possible that global integration might also have positive cultural spill-overs. Hence globalization, through its drivers like trade openness, foreign direct investment, workers’ remittances, urbanization and growth of information and communication technology, may affect gender equality in general and gender equality in education and employment in specific. These factors have increased female access to employment, and in some cases, women's employment opportunities have increased more than opportunities for men in exporting sectors (Chen et al., 2013).

Many reasons can be associated with this change like a present advantage in technology and trade openness has reduced the importance of physical strength, which has been a favorable change for female workers (Ozler, 2000; Wood, 1991). It can even be the lower wages of the female labor force which might have increased the demand in developing due to international trade and foreign direct investment (Standing, 1999; Joekes, 1995; Cagatay & Berik, 1991). Korinek (2005) points out two reasons that gender inequality prevents long-term growth on both micro and macro level: firstly, educated women increase spending on children’s education, nutrition and health with more control over household resources thus increasing investment in future generations - inequality can hinder this investment which it is good for developing countries -. Secondly, a lower level of female education, wages and access to creative resources suggest that utilization of economy-wide resources is suboptimal.

The these studies show that globalization can have a significant impact on gender equality from

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Zafar Iqbal, Khurrum Shahzad Mughal, Faheem Aslam, Muhammad Majid Khan, Yasir Tariq Mohmand

various dimensions. Several studies (e.g., Joekes, 1995; Ozler, 2000; Standing, 1999; Standing, 1989; Oster and Millet 2010; Haas and Aleida, 2010) have discussed the link between trade openness, foreign investment and other economic indicators and female job opportunities and school enrolment.

Oster and Millet (2010) for India and Levinsohn (2007) for South Africa provided evidence of increased female enrolment in English medium schools due to globalization. However, there have also been studies showing a reversal in this trend due to a lack of education and technical skills in the female population (Fussell, 2000; Ghosh, 2004). Elson (1995) argued that trade liberalization, free markets, and structural adjustment programs reduced female job opportunities in the public sector.

It is due to these mixed results the authors consider it important to study the nexus between globalization and gender inequality in wage and education for selected developing countries. The countries chosen as samples are from different locations in Figure 1, so as to see the impact of globalization across various levels of gender inequality. We investigated this for selected low income and low middle-income developing countries of Asia i.e. Bangladesh, Bhutan, India, Nepal, Pakistan, Sri Lanka, Indonesia, Lao PDR, Papua New Guinea, Philippines, Samoa, and Vanuatu.

2. LITERATURE REVIEW Studies on economic aspects of globalization and internationalization across the world mostly focus on how globalization connects the world through trade, and investment through multinational corporationsâ&#x20AC;&#x2122; production networks. In regard to gender equality, some empirical studies show that globalization does not appear to be affecting gender equality at all or affecting it negatively. It is due to this contrast our study has focused on selected developing countries at various levels of gender inequality on the HDI index to see if the positive or negative effects dominate across a heterogeneous group of developing countries. We intend to explore this nexus for gender inequality in wage and education, both of which are an integral part of economic growth, by representing the quantity and quality of female labor force in growth models.

The initial sources of globalization can be considered as originating from emigration due to ease of mobility and the establishment of infrastructure for effective communication of information across borders. With the latest social media trends, its rate has increased manifold. It is argued that globalization has not only benefited the world by raising standards of living but also it has a greater impact on society in terms of politics, economics, and culture (Mehlika, 2013). Due to this, it is affecting the basic social structure and challenging the culture of every society. The Asian countries are considered to be the recipient of western cultural values. Gray et al. (2006) argue that due to globalization homogeneous culture emerges instead of heterogeneous. Western culture can be observed as the defused shape of cultures of all parts of the world to some extent, but where the role of women in economic growth is accepted and promoted. They are provided equal opportunities in terms of education and employment and are considered as important drivers of economic growth. In contrast, most the Asian and African cultures have not yet extended this equivalence to its full levels and hence with globalization, the societal structures may being to transform.

The effect of globalization on gender equality rests in the past cultural values of Asian and African cultures. Due to the discriminated employment and education, female economic agents have become a source of the cheaper labor force for firms reallocating to these regions. Ahmed & Bukhari (2007), Hyder & Behrman (2010), Eastin & Prakash (2013) and Sajid & Ullah (2014) found a positive *Corresponding author (Yasir Tariq Mohmand). Email: yasir.tariq@comsats.edu.pk Š2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 19069642 CODEN: ITJEA8 Paper ID:11A02H http://TUENGR.COM/V11/11A02H.pdf DOI: 10.14456/ITJEMAST.2020.28

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correlation between globalization and women's employment. Many other researchers while using various indicators of globalization like trade openness, FDI foreign remittance. Wood (1991), Joekes (1995), Ozler (2000), Baslevent & Onaran (2004), Kyvik (2004) and Aguayo-Tellez et al. (2010) argued that trade openness and exporting industry see increased women employment in developing countries. Potrafke & Ursprung (2012) arrived at the same conclusion for a panel of developing countries while using the OECD gender index (SIGI) to measure gender equality and the KOF index of globalization. Although Black & Brainerd (2004) found similar evidence for a developed country, namely; the USA. There are also arguments that the trend of feminizing employment can reverse if the production process requires more skills and women are unskilled. Seguino and Grown (2006) have explained that at the early stages of industrialization or in semi-industrialized economies there is increased women employment in the export-manufacturing sector. Later on, the growth of information technology has changed the pattern of production thus demand unskilled labor decreased. Yet there also seems to be uncertainty in this impact of technology-based production processes on the employment of the female labor force. Juhn et al. (2013) used a model in which firms used different technology and workers with different skills and genders to produce goods at different levels. Due to trade liberalization policies, firms that are more productive start production of export goods with the use of modern technology. Computerized production processes with machinery require little physical, as a result of employment opportunities for men decline and employment opportunities for women increase due to their low wage demands. They tested the model by using data of Mexico and concluded that economic integration increased women's employment opportunities through trade and new firms that enter the industry which creates jobs. Overall employment opportunities for women increased due to the introduction of new technology that reduced physical labor requirements.

Bussmann (2009) examined the impact of globalization on women in employment and their welfare. To find whether in this globalized world women are winners or losers, he tested data of 134 countries empirically. The results lead to the conclusion that economic integration does not directly improve women’s living standards. Women’s access to primary and secondary education may somehow improve, though the welfare of women does not appear to improve relative to men.

Economic integration does, however, influence women’s employment opportunities- trade openness in developing countries surges female labor force participation and in developed countries, which are already industrialized, it cuts the share of working women.

Job creation and reduction of the wage gap are not the only factors that define ‘gender equality’, another significant indicator of equality is access to and level of female education, access to health and decision-making power. Various researchers have also studied the link between such indicators of equality and globalization. Female education plays directly plays a role in economic growth through improvement in the skill level of this have of the labor force. Dollar and Gatti (1999) using two-stage least square estimation over the data of a five-year interval of 100 countries found that increased female secondary school enrolment increases economic growth. They however also found reverse causality where economic growth also increases female school enrolment, thereby reducing gender inequality in education. The same was also argued by Chen (2004) that an increase in economic growth increases gender equality through education and employment. This is evident from the relative gender equality in developed countries. Chen (2004) also linked information and communication technologies (ICTs) on gender equality arguing that ICT access to education is easy

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Zafar Iqbal, Khurrum Shahzad Mughal, Faheem Aslam, Muhammad Majid Khan, Yasir Tariq Mohmand

via distance learning and the internet. Sajid & Ullah (2014) showed on a panel of D8 countries that trade increases women enrolment at all school levels.

Using another indicator of globalization; remittances, Ramirez et al. (2005) recognized it contributes to local community development through social links i.e. unity, commitment, and team spirit between migrants and families left behind. It also increases women's decision-making power, economic independence, and education. Haas and Aleida, (2010) used interviews-based studies to trace out the impact of worker remittances on 43 Moroccan married women migrants and nonmigrants. Remittances increase responsibilities and decision-making power of women and enabling increased women enrolment in education. Karabaeva (2014) also tested the hypothesis that remittance gave women more decision-making power in the household decision, economic independence and more employment opportunities in the labor market. Using cross-sectional data of 141 countries for the period of 1995-2012 the author showed that in the long run, higher remittances receiving country have a lower level of gender inequality.

To summarize, most of the empirical studies have concluded that globalization is beneficial and reduces gender inequality gap in developing nations while contrary to this; some studies suggest that globalization has adverse effects on the gender equality and results into widening the gender inequality gap, especially when they transition from low skill labor demand phase to skilled labor demand. In order to elaborate further on the nexus of globalization and inequality in wage and education, twelve Asian developing countries are selected randomly from different stages of gender inequality as per the HDI index.

3. RESEARCH METHODOLOGY The sample consists of 24 years over the period 1990-2013 for the panel of twelve low income and lower-middle-income Asian Developing countries including Bangladesh, Bhutan, India, Nepal, Pakistan, Sri Lanka, Indonesia, Lao PDR, Papua New Guinea, Philippines, Samoa and Vanuatu Data of all the variables is taken from (WB) World Development Indicators. The focus of the study is to test the impact of globalization on gender equality in education (female to male enrolment ratio) and employment (ratio of female to male labor force participation rate all people age 15 and above). Since there are two variables of interest, following two separate models will be estimated for each of these gender variables: đ??żđ??´đ??ľđ?&#x2018;&#x2013;đ?&#x2018;Ą = đ?&#x203A;˝0 + đ?&#x203A;˝1 đ?&#x2018;&#x2021;đ?&#x2018;&#x201A;đ?&#x2018;&#x192;đ?&#x2018;&#x2013;đ?&#x2018;Ą + đ?&#x203A;˝2 đ??šđ??ˇđ??źđ?&#x2018;&#x2013;đ?&#x2018;Ą + đ?&#x203A;˝3 đ?&#x2018;&#x2026;đ??¸đ?&#x2018;&#x20AC;đ?&#x2018;&#x2013;đ?&#x2018;Ą + đ?&#x203A;˝4 đ??źđ??śđ?&#x2018;&#x2021;đ?&#x2018;&#x2013;đ?&#x2018;Ą + đ?&#x203A;˝5 đ??šđ??źđ?&#x2018; đ?&#x2018;&#x2013;đ?&#x2018;Ą + đ?&#x203A;˝6 đ?&#x2018;&#x2C6;đ?&#x2018;&#x2026;đ??ľđ??´đ?&#x2018; đ?&#x2018;&#x2013;đ?&#x2018;Ą + đ?&#x203A;˝7 đ?&#x2018;&#x192;đ?&#x2018;&#x201A;đ?&#x2018;&#x192;đ?&#x2018;&#x2013;đ?&#x2018;Ą + đ?&#x203A;˝8 đ??şđ??ˇđ?&#x2018;&#x192;đ?&#x2018;&#x2013;đ?&#x2018;Ą + đ?&#x203A;˝9 đ?&#x2018;&#x201A;đ??ˇđ??´đ?&#x2018;&#x2013;đ?&#x2018;Ą + đ?&#x153;&#x20AC;

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đ?&#x2018;&#x2020;đ??śđ??ťđ?&#x2018;&#x2013;đ?&#x2018;Ą = đ?&#x203A;˝0 + đ?&#x203A;˝1 đ?&#x2018;&#x2021;đ?&#x2018;&#x201A;đ?&#x2018;&#x192;đ?&#x2018;&#x2013;đ?&#x2018;Ą + đ?&#x203A;˝2 đ??šđ??ˇđ??źđ?&#x2018;&#x2013;đ?&#x2018;Ą + đ?&#x203A;˝3 đ?&#x2018;&#x2026;đ??¸đ?&#x2018;&#x20AC;đ?&#x2018;&#x2013;đ?&#x2018;Ą + đ?&#x203A;˝4 đ??źđ??śđ?&#x2018;&#x2021;đ?&#x2018;&#x2013;đ?&#x2018;Ą + đ?&#x203A;˝5 đ??šđ??źđ?&#x2018; đ?&#x2018;&#x2013;đ?&#x2018;Ą + đ?&#x203A;˝6 đ?&#x2018;&#x2C6;đ?&#x2018;&#x2026;đ??ľđ??´đ?&#x2018; đ?&#x2018;&#x2013;đ?&#x2018;Ą + đ?&#x203A;˝7 đ?&#x2018;&#x192;đ?&#x2018;&#x201A;đ?&#x2018;&#x192;đ?&#x2018;&#x2013;đ?&#x2018;Ą + đ?&#x203A;˝8 đ??şđ??ˇđ?&#x2018;&#x192;đ?&#x2018;&#x2013;đ?&#x2018;Ą + đ?&#x203A;˝9 đ?&#x2018;&#x201A;đ??ˇđ??´đ?&#x2018;&#x2013;đ?&#x2018;Ą + đ?&#x153;&#x20AC;

(2)

To measure globalization, we have selected six indicators of globalization namely; trade openness, foreign direct investment, foreign remittances, information & communication technology measured the number of internet users per 100 people, financial globalization measured by using *Corresponding author (Yasir Tariq Mohmand). Email: yasir.tariq@comsats.edu.pk Š2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 19069642 CODEN: ITJEA8 Paper ID:11A02H http://TUENGR.COM/V11/11A02H.pdf DOI: 10.14456/ITJEMAST.2020.28

5

proxy net multilateral financial flows in current US dollars as percentage of GDP, and urbanization measured through percentage of population living in urban areas. In order to establish ceteris paribus effect of globalization on the variables of interest we further controlled for economic growth (GDP per capita constant at 2005 U.S. dollars), foreign aid (net official development assistance percentage of GDP) and population growth. The details of variables and their construction are placed in Table 1.

The symbol đ?&#x153;&#x20AC; refers to the error term. The đ?&#x203A;˝ terms are the corresponding regression coefficients.

Sr. No. 1 2 3 4 5 6 7 8 9 10 11

Table 1: List of variables used in the study Variables Symbol of the variable Female to male ratio of primary school enrolment.

SCH Female to male ratio of labour force participation LAB Trade openness (% GDP) TOP Foreign direct investment (%GDP) FDI Worker remittances (%GDP) REM Internet user (per 100 people) ICT Net financial flows, multilateral (% GDP) FIN Urbanization (% of total population) URBAN Population growth (annual %) POP GDP per capital (constant 2005 US$) GDP Net official development assistance received (% GDP) ODA

OLS, Fixed Effect model and Random Effect models were used for empirical investigation for the panel of these twelve countries. Hausman specification test is employed to make a proper choice about Fixed Effect and Random Effect models and we apply the Breusch-Pagan Lagrange multiplier (LM) test between Random effect and OLS.

4. EMPIRICAL FINDINGS As already discussed the impact of globalization on gender equality in education and employment is being measured through two separate models where the same indicators of globalization are being used as independent variables, while the gender equality variables (dependent variables) are ratio of female to male labor force participation rate for gender equality in employment and ratio of female to male primary school enrolment for gender equality in education. The results and discussion are placed in the following sections.

4.1 GENDER EQUALITY IN EMPLOYMENT We applied the Fixed effect (within) regression model and random effect GLS regression model to find the impact of globalization on gender equality in employment by using ratio of female to male labor force participation as dependent variable and trade openness (TOP), Foreign Direct Investment (FDI), worker remittances (REM) information and communication technology (ICT), financial globalization (FIN), Urbanization (URBAN), population growth (POP), GDP and foreign aid (ODA) as independent variable. Based on the results of Hausman and LM tests Random-effects model was considered appropriate and is presented in Table 2.

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Zafar Iqbal, Khurrum Shahzad Mughal, Faheem Aslam, Muhammad Majid Khan, Yasir Tariq Mohmand

Table 2: Effect of Globalization on Gender Equality in Employment Variable Coefficient Standard Error Trade openness (% GDP) TOP 0.060*** 0.020 Foreign direct investment (%GDP) FDI 0.468 *** 0.120 Worker remittances (%GDP) REM 0.268*** 0.061 Internet users (per 100 people) ICT 0.204*** 0.061 Net financial flows, multilateral (% GDP) FIN 0.266* 0.137 Urbanization (% of total population) URBAN 0.339*** 0.071 Population growth (annual %) POP 2.647*** 0.405 GDP per capita (constant 2005 US$) GDP -0.003** 0.001 Net official development assistance received (% GDP) ODA 0.011*** 0.003 Intercept Constant 46.944*** 7.251 Hausman Test đ?&#x153;&#x2019; 2 (9) = 6.92 Prob đ?&#x153;&#x2019; 2 = 0.645 LM Test đ?&#x153;&#x2019; 2 (1)= 1831.40*** 2 Wald đ?&#x153;&#x2019; (9) = 166.13*** No. of groups: 12 No. of observation: 288 * Significant at 10%. ** Significant at 5%. *** Significant at 1%.

All independent variables have a significant impact on female to male labor force participation rates. Trade openness, FDI, worker remittances, ICT, and Urbanization as indicators of globalization are positively significant at a 1% level of significance and a one percent change in these indicators will increase female to male labor force participation by 0.059, 0.46, 0.26, and 0.61 percent respectively. While the financial globalization measured through net financial flows as a percentage of GDP is positively significant at a 10% level and a one percent increase in financial globalization increases female to male labor force participation rate by 0.13% increase. The results are in line with previous literature on the topic like trade openness with Ahmed & Bukhari (2007), FDI with Maqsood (2014), and worker remittances are consistent with earlier work done by Chen (2004).

4.2 GENDER EQUALITY IN EDUCATION The model for Gender equality in education was estimated using a Fixed effect (within) regression model and random effect GLS regression models. Ratio of female to male primary school enrolment was used as a proxy for gender equality in education while trade openness (TOP), Foreign Direct Investment (FDI), workersâ&#x20AC;&#x2122; remittances (REM), information and communication technology (ICT), financial globalization (FIN), Urbanization (URBAN) represent the degree of globalization.

We also controlled for population growth (POP), GDP and foreign aid (ODA). Based on the results of Hausman and LM tests Random-effects model was considered appropriate and is presented in Table 3. The value of test statistic Wald đ?&#x153;&#x2019; 2 (9) =302.81 shows that globalization has a significant positive impact on gender equality in education in these Asia developing countries.

The findings reveal that four independent variables namely trade openness, worker remittances, and financial globalization are positive significant at .01 while ICT is positive significant at .05 level.

Urbanization is also positively significant, and it shows that a 1% increase in urbanization increases female to male school enrolment ratio 0.004 percent, statistically significant at .01 level. This is mostly due to a large number of public and private schools in urban areas. In rural areas, the distance from school is the biggest impediment to education for girls. The findings reveal that Foreign direct investment, Population growth, and GDP have any significant impact on gender equality in education. are insignificant. However, it is found that one of the control variables namely; official development assistance (ODA) has a Signiant impact on the school enrolment. Developing countries often receive *Corresponding author (Yasir Tariq Mohmand). Email: yasir.tariq@comsats.edu.pk Š2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 19069642 CODEN: ITJEA8 Paper ID:11A02H http://TUENGR.COM/V11/11A02H.pdf DOI: 10.14456/ITJEMAST.2020.28

7

purposive foreign aid which may be directed to a specific cause, and in many cases, it is allocated to increase welfare and reduce disparity in the society. These findings are consistence with (Sajid, 2014) and (Amuedo-Dorantes and Pozo, 2012). The authors reported a significant impact of trade openness and worker remittances on gender equality in education.

Table 3: Effect of Globalization on Gender Equality in Education Variable Coefficient Standard Error Trade openness (% GDP) TOP 0.001*** <0.001 Foreign direct investment (%GDP) FDI 0.002 0.002 Worker remittances (%GDP) REM 0.009*** 0.001 Internet users (per 100 people) ICT 0.002** 0.001 Net financial flows, multilateral (% GDP) FIN 0.006*** 0.002 Urbanization (% of total population) URBAN 0.004*** 0.001 Population growth (annual %) POP -0.009 0.007 GDP per capita (constant 2005 US$) GDP 0.00002 0.001 Net official development assistance received (% GDP) ODA 0.0001 ** <0.001 Intercept Constant 0.664 *** 0.028 Hausman Test đ?&#x153;&#x2019; 2 (9) = 14.47 Prob đ?&#x153;&#x2019; 2 = 0.070 LM Test đ?&#x153;&#x2019; 2 (1)= 959.89*** Wald đ?&#x153;&#x2019; 2 (9) = 302.81*** No. of groups: 12 No. of observation: 288 * Significant at 10%. ** Significant at 5%. *** Significant at 1%.

5. CONCLUSION The present study analyses what effect different indicators of globalization have had on gender equality in education and employment during the period 1990-2013 using data for 12 countries. The present study empirically examines the impact of globalization on gender equality in education and employment. In this study, five indicators of globalization have been used as independent variables along-with three control variables. The findings are in agreement with the existing literature and earlier work carried out on the topic. The empirical findings confirm the presence of a positive effect of globalization on gender equality in education and employment. The results show that gender equality in employment (female to male labor force participation rate) is positively significantly affected by all the globalization indicators like trade openness, financial globalization, FDI, urbanization. Likewise, it is found that gender equality in education (female to male primary school enrolment) has increased due to various indicators of globalization like trade openness, Worker remittances, ICT, financial globalization and urbanization. Overall, we can conclude that due to the acceptance of equality related values prevailing in western countries, globalization has resulted into the transfer of these values in certain Asian countries.

6. AVAILABILITY OF DATA AND MATERIAL Data can be made available by contacting the corresponding author.

7. REFERENCES Aguayo-Tellez, E., Juhn, C. & Airola, J. (2010). Does trade liberalization help women? The case of Mexico in the 1990s. NBER Working Paper no. 16195NBER, Cambridge MA. Ahmed, N. and Bukhari, H. K. S. (2007). Gender inequality and trade liberalization: A case study of Pakistan.

Research Report No. 67. Karachi, Pakistan: Social Policy and Development Center.

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Amuedo-Dorantes, C., & Pozo, S. (2012). Accounting for remittance and migration eff ects on children’s’ schooling. INSIDE: Insights on Immigration and Development, Paper 15.

Black, S. E. & Brainerd, E. (2004). Importing equality? The impact of globalization on gender discrimination.

Industrial and Labor Relations Review, 57(4), 540-559.

Bussmann, M., (2009). The effect of trade openness on women’s welfare and work life. World Development, 37, 1027–1038.

Cagatay, N., & Berik, G. (1991). Transition to export-led growth in Turkey: Is there a feminization of employment? Capital and Class, 15, 153-177.

Chen, D. J. (2004). Gender equality and economic development: The role of information and communication technologies. World Bank Policy Research Working Paper 3285.

Chen, Z., Ge, Y., Wan, C. & Lai, H. (2013). Globalization and gender inequality. World Development, 44(C), 256-266.

Dollar, D., Gatti, R. (1999). Gender inequality, income and growth: Are good times good for women? Policy Research Report on Gender and Development Working Paper Series no. 1. World Bank, Washington DC. Eastin, J. & Prakash, A. (2013). Economic development and gender equality: Is there a gender Kuznets curve?

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Haas, D. H., & Aleida, V. R. (2010). Migration as emancipation? The impact of internal and international migration on the position of women left behind in rural Morocco. Oxford Development Studies, 38(1), 43-62.

Hyder, A. & Behrman, J. R. (2010). International trade openness and gender gaps in Pakistani labour force participation rates over 57 years. PSC Working Paper Series, PSC 11-01. Retrieved from: htt://repository.upenn.edu/psc_working_papers/25 Joekes, S., (1995). Trade-related employment for women in industry and services in developing countries.

UNRISD, occasional paper No. 5 Juhn, C., Gergely Ujhelyi, G. & Villegas-Sanchez, C. (2013). Trade liberalization and gender inequality.

American Economic Review 103(3), 269–273 Karabaeva, J. (2014). Remittances and gender equality: The role of remittances in reducing gender inequality in migrants’ countries of origin. Master’s thesis: International administration and global governance.

University of Gothenburg.

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Kyvik, H. N. (2004). Is trade liberalization a window of opportunity for women? WTO Staff Working Paper, No. ERSD-2003-03 Levinsohn, J. A. (2007). Globalization and the returns to speaking English in South Africa. In Globalization and Poverty, ed. Ann Harrison. Chicago: University of Chicago Press.

Maqsood, F. (2014). Impact of Globalization on Female Labor Force Participation in the SAARC Region. Pakistan Journal of Social Sciences (PJSS), 34(2). *Corresponding author (Yasir Tariq Mohmand). Email: yasir.tariq@comsats.edu.pk ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 19069642 CODEN: ITJEA8 Paper ID:11A02H http://TUENGR.COM/V11/11A02H.pdf DOI: 10.14456/ITJEMAST.2020.28

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Mehlika, F. (2013). Globalization and its economic, social, political and cultural impact. Tata Institute of Social Sciences.

Onaran, O. & Baslevent. C. (2004). The eff ect of export-oriented growth on female labour market outcomes in Turkey. World Development, 32(8), 1375–1393.

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Working paper series 15922, National Bureau of Economic Research, Cambridge, MA. Ozler, S. (2000). Export orientation and female share of employment: Evidence from Turkey. World Development, 28(7), 1239–1248.

Potrafke, N. & Ursprung, W. H. (2012). Globalization and gender equality in the course of development.

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Ramirez, Carlota, Dominguez, G. M. & Morais, M. J. (2005). Crossing borders: Remittances, gender and development. UN-Instraw. Working Paper Sajid, S., & Ullah, S. (2014). Does Trade Openness Boosts Gender Equality in Employment: A Case of D8 Countries. Glob. & Sci Issues Stud, 3(2).

Seguino, S., & Grown, C. (2006). Gender equity and globalization: Macroeconomic policy for developing countries. Journal of International Development: The Journal of the Development Studies Association, 18(8), 1081-1104.

Standing, G. (1989). Global feminization through flexible labor. World Development, 17(7), 1077–1095.

Standing, G. (1999). Global feminization through flexible labor: A theme revisited. World Development, 27(3), 583–602.

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Zafar Iqbal is an MS (Economics) student at COMSATS University, Islamabad. He has working experience in safety net and social uplift (women empowerment, education, skill development/training), surveying and data analysis.

His research work is related to the Impact of Globalization on Gender Equality in terms of Education and Employment in selected Asian Developing Countries. His interests also include Trade, Development, and Social Sector.

Dr.Khurrum S. Mughal obtained his PhD in Economics from Johannes Kepler University Linz, Austria. He has taught at IQRA University and COMSATS as an Assistant Professor. He completed his Post Doc from Austria. He is currently serving as Research Economist at State Bank of Pakistan. His research interests include Informal Sector, Dynamics of Trade, Exchange Rate and Inflation.

Dr.Faheem Aslam is an Assistant Professor at the Department of Management Sciences, Comsats University Islamabad, Pakistan. He got his BBA(Hons.) and MBA (Finance) from International Islamic University, Islamabad. He earned his Master's and Ph.D. Degrees from Hanyang University Business School, Seoul, South Korea. He deeply invests in creative and innovative research ideas related to Financial Analytics, Data Mining, Artificial Intelligence, and Data Sciences.

Dr.Muhammad Majid Khan is an Associate Professor at the Department of Management Sciences, COMSATS University, Islamabad. Dr. Khan is a graduate of the University of Massachusetts, Amherst where he earned his Masters’ and Doctorate. Dr. Majid Khan's research interests are Change Management, Negotiation and Conflict and Crisis Management.

Dr. Yasir Tariq Mohmand is an Assistant Professor of Logistics & Supply Chain Management at COMSATS Islamabad.

He has completed PhD degree from South China University of Technology, China. Dr. Yasir Mohmand has research interests in Supply Chain, Logistics And Trade Infrastructure, International Trade, Economic Modeling And Simulation & Optimization.

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Zafar Iqbal, Khurrum Shahzad Mughal, Faheem Aslam, Muhammad Majid Khan, Yasir Tariq Mohmand

©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies

International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies http://TuEngr.com PAPER ID: 11A02I

IMPACTS OF SERVICE QUALITY ON CUSTOMER SATISFACTION: A COMPARATIVE STUDY ON BANKING SECTOR OF PAKISTAN THROUGH WEIGHTED SERVPERF MODEL Hassan Raza a b

a*

a

, Anwer Irshad Burney , Ahsanullah

b

Faculty of Management Sciences, Khadim Ali Shah Bukhari Institute of Technology, PAKISTAN. ORIC, Khadim Ali Shah Bukhari Institute of Technology, PAKISTAN.

ARTICLEINFO

A B S T RA C T

Article history: Received 07 June 2019 Received in revised form 20 September 2019 Accepted 11 October 2019 Available online 14 November 2019

This study determines the service quality impacts on customer satisfaction of the banking sector of Pakistan. Five hundred customers of three sub-sectors of commercial banks in the i) private-sector, ii) public-sector, and iii) the Islamic-banks were questioned on the Weighted SERVPERF model. The validity and reliability of the data have been tested using CFA and SEM. The analysis confirmed that Keywords: Commercial Banks; Bank service quality with its five dimensions has a significant and positive impact on customer satisfaction. Based on overall mean of data, a service performance; comparative analysis of three sub-sectors was carried out to distinguish Conventional Banks; Islamic Banks; Private between high and low quality of their service performance. The findings Sector; Public Sector; indicate that private-sector conventional banks are distinguished as Confirmatory Factor high-performance agents followed by Islamic-banks both in public and Analysis; Structural private sectors, whereas the public-sector conventional banks are shown Equation Modeling. as low-performance banking services. The three banking sub-sector has been ranked with respect to five service quality dimensions separately.

Disciplinary: Management Sciences (Banking), Mathematics (Statistics). ©2020 INT TRANS J ENG MANAG SCI TECH.

1. INTRODUCTION Studies have been conducted and a substantial contribution put forth by the prominent research scholars on the area under study. The commercial banks serve as an essential medium for the development of the national economy (Koloor, 2015), providing trade finance services for a better and healthier performance of the economy (Khan & Fasih, 2014). There is a dire need for service quality assessment, as it is one of the major steps to enhance customer satisfaction. Improving service quality is imperative to carve out a competitive edge in the market (Murugiah & Akgam, 2015). The limitations in measuring service quality arise from such dimensions of service as intangibility, diversity, and difficulties in categorization (Saghier & Nathan, 2013). *Corresponding author (Hassan Raza). Tel: +92-332-3143341. Email: has786@ymail.com.. ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02I http://TUENGR.COM/V11/11A02I.pdf DOI: 10.14456/ITJEMAST.2020.29

1

The major issue in service quality measurement is to define the service dimensions namely Tangible, Reliability, Responsiveness, Assurance, and Empathy in a way that any overlapping is avoided and these are clearly demarcated to display the nature and scale of performance on which customer satisfaction is entirely dependent. A measurement model was developed by Parasuraman et al in 1985 and 1988 which became popular and was widely used. The model was further refined and improved by Cronin & Taylor (1992, 1994).

As an important sector of the national economy, the impact of banking sector quality of service is closely bound up with the overall financial management and facilitation of financial transactions in every business field encompassing a very wide clientele. It is the perceived quality of service and the satisfaction expression of a huge body of customers that ensure the health and smooth functioning of this sector. The commercial banks have a dominant role in this sector and their customers are very sensitive to nature and quality of service.

According to State Bank of Pakistan half-yearly performance review from Jan-18 to June-18, the commercial banks in Pakistan have total assets of Rs.19,197.1 billion, investments 8417.8 billion, advances 7310.30 billion and deposit amounting Rs. 13,755 billion. It is also highlighted in the above review that out of Rs. 13,755 billion deposits, 13,005 billion (about 94.5%) deposited by the customer however only 749 (billion) deposit of Financial Institution. Further as of June 2018, the Pakistan banking sector is comprised of total of thirty-four banks in which twenty local private commercial banks, five public sector banks, five banks are foreign and five specialized banks. Further the commercial banks having 13,908 branches. The banking industry caters different sectors and individuals i.e. commercial, small-medium enterprises, corporate, agriculture sector and encompassing industries like automobile, cement, chemical, electronics, commodity, financial, individual and insurance, etc.

The purpose of the study is manifold and stated as under: 

To validate the extended Weighted SERVPERF measurement model through Confirmatory Factor Analysis

by

capturing

uni-dimensionality,

construct

reliability,

construct

validity

and

model-fit-indices. 

To ascertain the service quality dimensions relationship with customer satisfaction through SEM.



To identify differences in customer perception with respect to three banking sectors of Pakistan i.e. i) private sector and

ii) public sector

conventional banks and iii) Islamic Banking Sector

(Public/Private) 

To categorize the high and low-performance banking sector.



To determine the high and low-performance service quality dimensions in the banks.

2. LITERATURE REVIEW 2.1 DEFINITIONS OF SERVICE QUALITY The service quality as defined by the scholars followed in two contradictory paradigms i.e.

‘Disconfirmation paradigm’ and ‘Performance-based paradigm’. The basis of the disconfirmation paradigm is that the perceived service quality is the expectation and perception comparison (Grönroos, 1984). The model is suitable for the measurement of service quality. SERVQUAL and Weighted SERVQUAL are the most prominent models originating from this paradigm Parasuraman et al. (1985). In contrast; the performance-based concept of service quality rejecting the

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Hassan Raza, Anwer Irshad Burney, Ahsanullah

disconfirmation paradigm, Instead SERVPERF was proposed and based entirely on performance measure (Cronin & Taylor, 1992). The scale solely relied on perception of customer, ruling out at the same time the requirement of expectation. The authors argued that it was more reliable and valid measurement model for service quality. They further compared four alternative measurement models SERVPERF, SERVQUAL Weighted SERVPERF and Weighted SERVQUAL, in their study in 1992 found that SERVPERF (Performance only) model was more reliable and effective than the other three models, as it captures service quality nature adequately.

2.2 SERVICE QUALITY MEASUREMENT The service quality measurement operationalization was initially traced to the research of Parasuraman et al. (1985), identified ten dimensions which were later refined and developed SERVQUAL model with five dimensions namely Empathy, Assurance, Responsiveness, Reliability and Tangible (Parasuraman et al. 1988). Subsequently, contentions arose as to the SERVQUAL model but twenty-two items of service quality dimensions remain intact as part of five factors of service quality and which were accepted as comprehensive enough to cover the entire domain. In this paper, the same 22 items of perception have been adopted and further strengthen by 5 items, measured it through the weighted SERVPERF model.

2.3 THEORETICAL BASIS OF SERVICE QUALITY DIMENSIONS 2.3.1 TANGIBLE Fitzsimmons et al. (2006) define tangible as “physical facilities, materials, and equipment as well as communication material which is indicative of the care and attention paid for the details offered by the service provider.

2.3.2 RELIABILITY Reliability involves handling customer service issues such as timely services and maintenance of error-free record. It is the most significant factor in banking services (Parasuraman et al., 1988; Yang & Fang, 2004).

2.3.3 RESPONSIVENESS Responsiveness is defined as “the willingness to help customers and provide prompt service” (Parasuraman et al., 1988). Positive effects of responsiveness on customer satisfaction have been indicated by several studies, among them, important contributions are Appannan et al. (2013); El Saghier and Nathan (2013); Fauz (2014); Tufail et al. (2016); Felix (2017).

2.3.4 ASSURANCE Assurance implies courteous and knowledgeable personnel having the ability to convey confidence and trust (Parasuraman et al., 1988). Felix (2017) believed that the satisfaction of the customers in the banking sector could increase with the feeling and sense of safe transactions.

2.3.5 EMPATHY Parasuraman et al. (1988) defined empathy as caring and individualized attention that the firm provides to its clients and is concerned with the understanding of customer needs by the employees. It is a significant aspect of service quality showing a considerable impact on customer satisfaction in all categories of banking (Wieseke et al., 2012).

2.4 SERVICE QUALITY AND CUSTOMER SATISFACTION Customer satisfaction is dependent on service quality and is directly proportionate to service *Corresponding author (Hassan Raza). Tel: +92-332-3143341. Email: has786@ymail.com.. ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02I http://TUENGR.COM/V11/11A02I.pdf DOI: 10.14456/ITJEMAST.2020.29

3

quality. The better the service quality, the better customer satisfaction (Ojo, 2010). The service quality dimensions have a significant impact on ensuring the loyalty of the customers (Kheng et al., 2010). There is a meaningful positive relationship between all the dimensions of service quality and customer satisfaction and as such overall service quality acts as a mediator in this relationship (Mosahab et al., 2010). In the perspective of customer satisfaction, service quality profitability and competitive advantage ( Krishnamurthy et al., 2010; Petridou et al. 2007).

3. RESEARCH METHODS 3.1 SAMPLE SIZE Although the targeted population comprises all commercial banks in Pakistan, the survey sample is restricted to the urban area of Karachi. The study questioned customers of twenty-seven commercial banks in three banking sub-sectors.

The justification of restricting the sample to Karachi is provided by the fact that the city offers a large educated audience who is capable of understanding the significance of the study and the meaning of the questions put to them in the questionnaire. Further Karachi, being a financial hub, contains a substantial part of the banking sub-sectors and is characterized by maximum service delivery levels in the entire country where the assessment of quality can be gained at its optimum level.

The sample size follows the determination principle set by Krejcie and Morgan (1970) for a finite population, that any number of respondents exceeding 1000,000 will require a sample size of 384 or more persons in a sample. This study surveyed 500 customers of twenty-seven commercial banks to understand the viewpoint with regards to service quality offered by the banking sector in Pakistan.

The study based on the survey of 500 customers as mentioned in Table 1, which comprises 267 customers of 16 banks of Private Sector â&#x20AC;&#x201C; Conventional banks, 128 customers of 5 banks of Public Sector Conventional Bank and 105 customers of 6 Public and Private Islamic Banks.

Table 1: Distribution of Commercial Banks by Sub-Sectors and Number of Customers Surveyed Sector Private Sector Public Sector Private & Public Commercial Banks

Conventional / Islamic Conventional Banks Conventional Banks Islamic Banks

Independent Variables (IV)

No. of Banks 16 05 06 27

Mediator Variable (MV)

No. of Customers 267 128 105 500 Dependent Variable (DV)

Figure 1: Extended Model of Service Quality Impact on Customer Satisfaction with Service Quality as a Mediator under Weighted SERVPERF (Self) Model based on (Cronin Jr & Taylor, 1992, 1994; Parasuraman et al., 1988)

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Hassan Raza, Anwer Irshad Burney, Ahsanullah

3.2 THEORETICAL FRAMEWORK -- MODEL To measure and evaluate the service quality of commercial banks, the model proposed by (Cronin Jr & Taylor, 1992, 1994) and its weighted version of SERVERF have been applied. For this model, the service quality is defined as “Perception” of customers in relation to the service quality dimensions along with the importance given to each of these dimensions. These dimensions constitute the basic variables under this study.

Independent Variables (IV) = 5 Dimensions of Service Quality Mediator Variable (MV) = Service Quality Dependent Variable (DV) = Customer Satisfaction The service quality definition may be represented in the mathematical expression as SQ= f (P x I). Where SQ= 5 Dimensions of Service Quality, f=function, I= Importance, P= Perception.

3.3 LAYOUT OF QUESTIONNAIRE: MEASUREMENT VARIABLES The questionnaire for the customers consisted of queries as shown in Table 2. Each question addresses a specific variable in the areas of critical information covering all aspects define under study. The main variables for analysis are those that pertain to perception and importance weight, service quality and customer satisfaction.

Table 2: Layout of Questionnaire Sections of Questionnaire Customer Profile Bank Customer Relationship Perception variables Importance Dimension Service Quality Customer Satisfaction

Variables 04 Items 02 Items 22 Variables 05 Factors 06 Variables 07 Variables

The further dimension wise each variables questions mentioned in Table 3 regarding Perception, Importance weight, Service Quality and Customer Satisfaction mentioned in the model.

Table 3: Dimension-wise Number of Questions for Customers under Weighted-SERVPERF Model Perception Importance Weight Service Quality Customer Satisfaction Total

Dimensions of Service Quality under Weighted SERVPERF Reliability Assurance Tangible Empathy Responsiveness 05 04 04 05 04 01 01 01 01 01 01 01 01 01 01 07 06 06 07 06

SQ

SAT

Total

01 01

07 07

22 05 06 07 40

A brief definition of each of the dimensions may be given in Table 4, in order to explain the variables nature and for the orientation of the study.

This study uses Cronin and Taylor (1992) proposed Weighted SERVPERF (P) x (I) with some modifications as per the study requirement.

3.4 RESEARCH HYPOTHESIS HA1: The service quality dimensions i.e. Tangible, Reliability, Responsiveness, Assurance, and Empathy have a positive and significant impact on customer satisfaction. *Corresponding author (Hassan Raza). Tel: +92-332-3143341. Email: has786@ymail.com.. ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02I http://TUENGR.COM/V11/11A02I.pdf DOI: 10.14456/ITJEMAST.2020.29

5

Variables

Table 4: Definitions of Variables of the Study Definitions

Reliability

Delivery of promised service, error-free records and problem-solving attitude by a service provider.

Responsiveness Service provider swift response and readiness to help customers.

Assurance Courteous and knowledgeable personnel have the ability to convey confidence and trust.

Empathy Individualized caring of customers by personnel of the service provider.

Tangible Service provider appearance i.e. interior and exterior, communication resources and personnel Service Quality Assess the positive impact of service quality on customer satisfaction.

Customer Satisfaction Included from relevant literature.

3.5 VALIDATING THE MEASUREMENT MODEL The study first validates the extended Weighted SERVPERF model by using SEM. The SEM validating procedure is known as Confirmatory Factor Analysis (CFA) through which we check uni-dimensionality, Construct Validity, Construct Reliability and Model Fit Indices. Further identification of mediation effects through bootstrap approach in respect of complete, partial and No Mediation that exists in the model.

Further, for testing of hypothesis, the regression weights of independent variables of service quality on customer satisfaction have been applied through Structural Equation Modeling.

3.6 SCALING PROCEDURES AND TERMINOLOGIES To achieve the objective of the study, it requires some sort of yardstick, which could provide support to management for better resource utilization.

The questionnaire is designed on a Likert scale seven-point and uses the criteria of overall mean to distinguish between variables of minor and major importance(Rhee, 2009). To remove the biases of respondents, ‘yea sayers’ and ‘Nay sayers’ as pointed out by Greenleaf (1992), the criteria of overall mean have been adapted instead of Likert Scale mid-point of 3.5.

Accordingly, the criteria of mean value above overall mean have been preferred and used to differentiate between high and low-performance dimensions. It is also applied with respect to three banking sectors which were ranked as high and low-performance sectors. The terminologies are mentioned in Table 5.

Table 5: Terminologies Terminologies High-Performance-Dimension Low-Performance-Dimension High-Performance-Sector Low-Performance-Sector

Basis of Scaling Dimension mean-value above ‘overall-mean’ Overall-mean value of Sector above ‘overall-mean’ of total banking Sector

4. RESULTS AND FINDINGS 4.1 CUSTOMER PROFILE AND ITS RELATIONSHIP WITH BANKS Customer profile and its relationship with banks are summarized in Table 6 and which presents the distribution of the bank customers by gender, age, education, occupation, banking sector, and account holding duration. These represent the personal characteristics of customers.

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Hassan Raza, Anwer Irshad Burney, Ahsanullah

Table 6: Demographic profile Demographic Variables

Category

Customer Profile Male Female Below 20 Age 21 to 30 31 to 40 41 to 50 51 and above Occupation Private Service Govt. Service Self Employed Business House Wife Other Gender

Frequency 356 144 8 156 111 131 94 194 113 39 107 42 2

Demographic Variables Education

Banking Sector Account Holding Duration

Category

Frequency

Matriculation Undergraduate Graduate Post graduate Others Bank Customer Relationship Public Sector Conventional Bank Private Sector Conventional Bank Public/Private Sector Islamic Banks Less than a Year Upto 3 Years Upto 5 Years Upto 10 Years More than 10 Years

6 67 194 231 2 128 266 106 78 112 101 141 68

4.2 CONFIRMATORY FACTOR ANALYSIS Figure 2 comprises the independent, mediating and dependent variables.

Figure 2: The output of the Confirmatory Factor Analysis – Weighted SERVPERF Model with Standardized Factor Loading. *Corresponding author (Hassan Raza). Tel: +92-332-3143341. Email: has786@ymail.com.. ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02I http://TUENGR.COM/V11/11A02I.pdf DOI: 10.14456/ITJEMAST.2020.29

7

Independent Variables Tangible W_P1: Up-to-date Equipment.

W_P2: Counter sufficiency.

W_P3: Well dress employees.

W_P4: Attractive, well-explained broachers.

Reliability W_P5: On-time delivery of service.

W_P6: Employees ready to resolve customer issues.

W_P7: Upfront performance of service.

W_P8: Advertisement reflects reality.

W_P9: Error-free record maintenance.

Responsiveness W_P10: Express the right time of service by employees.

W_P11: Prompt service delivery.

W_P12: Willingness to help the customer.

W_P13: Respond to customer requests.

Assurance W_P14: Compassionate and supportive in customer problems.

W_P15: Feel safe in all relations.

W_P16: Polite service provider.

W_P17: Knowledgeable to answer queries of customers.

Empathy W_P18: Individualized services.

W_P19: Convenient operating hours.

W_P20: Special service to special customers W_P21: Customer interest first.

W_P22: understand the customized needs.

Mediating Variable SQ- Service Quality O1. Tangible impact positively on customer satisfaction.

O2. Responsiveness impact positively on customer satisfaction.

O3. Reliability impact positively on customer satisfaction.

O4. Assurance impact positively on customer satisfaction.

O5. Empathy impact positively on customer satisfaction.

O6. Service Quality impact positively on customer satisfaction.

Dependent Variable Sat- Customer Satisfaction S1. Satisfaction with my bank.

S2. Positive word mouth for my bank S3. Keep continue and maintaining relationships with my bank.

S4. Encourage others to make relation with my bank.

SS. Intend to switch my bank.

O7. Overall evaluation of the performance of bank service quality.

O8. Overall Satisfaction provided by the bank

4.3 CFA- CONSTRUCT UNI-DIMENSIONALITY The factor loading of the individual variables is used to check the construct uni-dimensionality.

The 0.6 and above are the cut-off criteria of factor loading. As shown in Table 7, the factor loading of all the factors and variables of the model are above the value of 0.6 and so the uni-dimensionality of the construct is established.

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Hassan Raza, Anwer Irshad Burney, Ahsanullah

4.4 CONSTRUCT RELIABILITY The construct is considered reliable if the CR is > 0.70 and Alpha >0.70. The outcomes of the test (Table 7) show that all the Cronbach Alpha values are above the threshold criteria of > 0.70 where the lowest is 0.872 for service quality and the highest 0.971 for reliability dimension. Further, the Composite Reliability of the model is shown to be above the critical values >0.70 where the lowest is 0.877 for service quality and the highest 0.877 for reliability dimension. Thus the construct reliability is clearly established.

Table 7: Construct Reliability – Weighted SERVPERF Description Tangible Reliability Responsiveness Assurance Empathy Service Quality Customer Satisfaction

Construct Reliability Cronbach’s Alpha Composite Reliability (CR) 0.960 0.961 0.971 0.971 0.963 0.963 0.962 0.964 0.973 0.973 0.872 0.877 0.908 0.906

4.5 CONSTRUCT VALIDITY The construct validity has been calculated for its two subtypes, discriminant and convergent validity, Tables 8 and 9. According to the recommended criteria CR>0.70 and AVE>0.50, the construct reliability table shows that the model has CR> 0.70 and AVE>0.50. Where minimum value for service quality is 0.547 and the maximum is of 0.869 for reliability, thus achieving the convergent validity.

Table 8: Construct Validity – Weighted SERVPERF Convergent Validity Average Variance Extracted (AVE) 0.861 0.869 0.865 0.870 0.880 0.547 0.579

Description Tangible Reliability Responsiveness Assurance Empathy Service Quality Customer Satisfaction

Construct Validity Discriminant Validity Maximum Shared Average Shared Variance (MSV) Variance (ASV) 0.032 0.016 0.078 0.023 0.102 0.044 0.090 0.036 0.044 0.022 0.203 0.066 0.203 0.092

Table 9: Square Root of AVE and Construct Correlation Analysis – Weighted SERVPERF Variables Tangible Reliability Responsiveness Assurance Empathy Satisfaction Service Quality

Tangible 0.936

Reliability

Responsiveness

Assurance

Empathy

Satisfaction

-0.116 -0.137 -0.163 0.182 0.063

0.049 -0.028 -0.149 0.283 0.177

0.219 -0.018 0.321 0.314

0.124 0.295 0.205

0.207 0.151

0.451

Service quality

Further, the recommended criteria the construct achieved the recommended criteria MSV < ASV, ASV<AVE and Square Root of AVE greater than Inter-construct correlation have been achieved and accordingly the discriminant validity has also been established.

4.6 MODEL-FIT INDICES Table 10, the model fit indices revealed its consistency with the data as chi-square/degree of *Corresponding author (Hassan Raza). Tel: +92-332-3143341. Email: has786@ymail.com.. ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02I http://TUENGR.COM/V11/11A02I.pdf DOI: 10.14456/ITJEMAST.2020.29

9

freedom is 1.824 meeting the criteria of < 3. The p-value also shows that the model is significant, p-value being <0.05. The GFI at 0.90 and AGFI 0.88 also indicate a good model fit. Further, the NFI 0.950 and CFI 0.976 which are greater than 0.90 also signify that model fits the data well. The result of RMSEA 0.041 is less than 0.05 required.

Table 10: Model-fit Indices – Weighted SERVPERF Measurement Chi-Square/Degree of Freedom P-Value Comparative Fit Index Normed Fit Index Root Mean Error of Approximation Goodness of Fit Adjusted Goodness of Fit Index

Abbreviation X2/DF P-Value CFI NFI RMSEA GFI AGFI

Values 1.824 <.001 0.976 0.950 0.041 0.90 0.88

4.7 SEM PATH ANALYSIS – WEIGHTED SERVERF MODEL The result derived from SEM (Table 11) shows that all independent variables (IVs) have positive and significant impact on the mediator variable (MV), service quality (SQ). Further all Independent variables (IVs) along with mediator variable (SQ) have positive and significant relationship with the dependent variable (DV), customer satisfaction.

Table 11: Structural Equation Modeling - Regression Weights Est.

S.E.

C.R.

P

Service Quality



TAN

.044

.014

3.062

.002

Service Quality



REL

.056

.014

4.082

***

Service Quality



RESP

.099

.017

5.747

***

Service Quality



EMP

.056

.014

4.005

***

Service Quality



ASS

.049

.016

3.013

.003

Customer Satisfaction



SQ

.388

.080

4.839

***

Customer Satisfaction



TAN

.124

.020

6.094

***

Customer Satisfaction



REL

.122

.019

6.408

***

Customer Satisfaction



RESP

.119

.023

5.146

***

Customer Satisfaction



ASS

.116

.023

5.137

***

Customer Satisfaction



EMP

.108

.020

5.527

***

4.8 SEM- MEDIATION THROUGH BOOTSTRAP APPROACH Indirect effects derived through a bootstrap approach from SEM (Table 12) show that all five independent variables (IVs) have significant indirect effects on the dependent variable (DV) customer satisfaction (Sat) through the mediator variable (MV) Service Quality (SQ). It is also noted that all independent variables (IVs) have significant effects on mediator variable (MV) Service Quality (SQ).

Table 12: Indirect Effects - Two-Tailed Significance (BC) SQ Sat

Empathy ... .001

Assurance ... .001

Responsiveness ... .001

Reliability ... .001

tangible ... .002

SQ ... ...

Sat ... ...

Table 13: Direct Effects - Two-Tailed Significance (BC) SQ Sat

10

Empathy .001 .003

Assurance .005 .002

Responsiveness .001 .002

Hassan Raza, Anwer Irshad Burney, Ahsanullah

Reliability .003 .002

Tangible .004 .002

SQ ... .001

Sat ... ...

Direct effects derived through a bootstrap approach from SEM (Table 13) show that all five Independent Variables (IVs) have significant direct effects on the dependent variable (DV) customer satisfaction (sat). It is also noted that all Independent Variables (IVs) have significant impact on mediator variable (MV) Service Quality (SQ).

The result of the independent variable (IVs) has significant indirect effects through mediator variable (MV) Service Quality (SQ) and significant direct effects on dependent variables (DV) indicate that model has achieved the partial mediation effects.

4.9 COMPARATIVE ANALYSIS OF BANKING SUB-SECTORS OF PAKISTAN – WEIGHTED-SERVPERF MODEL After comprehensive data analysis on the basis of CFA- uni-dimensionality, construct reliability construct validity, model-fit-indices, and regression weights, the study further derives the results from the data on the basis of mean-based ranking. Table 14 shows that on the basis of Weighted-SERVPERF, the dimensions of service quality were ranked according to mean values in the order as Reliability, Tangible, Responsiveness, Empathy and Assurance.

Table 14: Weighted SERVPERF Mean-based Analysis of Banking Sub-sectors of Pakistan Descriptive Statistics

Reliability Tangible Responsiveness Empathy Assurance

Conventional Bank Public-Sector N=128 Mean Rank

Conventional Bank Private-Sector N=267 Mean Rank

Islamic Bank Private/ Public-Sector N=105 Mean Rank

Total Commercial Banking-Sector N=500 Mean Rank

5.932 5.530 5.399 4.839 4.729

6.032 5.754 5.565 5.216 5.346

5.913 5.288 5.549 5.636 5.349

5.981 5.599 5.519 5.207 5.189

1 2 3 4 5

1 2 3 5 4

1 5 3 2 4

1 2 3 4 5

In the Islamic banking sector, the rank order of (service quality dimensions) is completely divergent showing many different ranks than those in other sub-sectors. It should be noted that Tangibles are at the lowest rank while Empathy and Responsiveness are ranked high following reliability at top of the order.

Table 15: High and Low-Performance Commercial Banks Sub-Sectors Commercial Banking Sector Conventional Bank - Private Sector Islamic Bank - Public/ Private Sector Conventional Bank - Public Sector Total Commercial Banking Sector

N 267 105 128 500

Overall Mean 5.583 5.547 5.286 5.501

In Table 15, the overall-mean value of any banking sub-sector above 5.501 (the overall mean of the entire commercial banking sector) marks the “High-performance Sector’ whereas values below overall-mean indicate ‘Low-Performance Sector. The comparison of three banking sub-sectors with regards to service quality show that the ‘High-Performance Sector’ is Conventional Bank – Private-Sector with an overall mean value of 5.583 is a high-performance sector followed by Islamic Bank sector having mean value 5.547 as high-performance sector”. The Public Sector Banks with overall mean of 5.286 are indicated as low-performance sectors. The study further identified the high and low-performance dimensions of service quality based on overall mean, see Table 16. To distinguish a high-performance dimension from that of low performance, the mean value of *Corresponding author (Hassan Raza). Tel: +92-332-3143341. Email: has786@ymail.com.. ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02I http://TUENGR.COM/V11/11A02I.pdf DOI: 10.14456/ITJEMAST.2020.29

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individual dimensions is taken as a yardstick for differentiation.

Table 16: High and Low-Performance Dimensions of Banking Sub-sector of Pakistan on the basis of ‘Overall Mean’ Banking Sector Conventional Bank – Public-Sector (Overall Mean: 5.286) Conventional Bank – Private-Sector (Overall Mean: 5.583) Islamic Bank – Private and Public-Sector (Overall Mean: 5.547) Total Banking Sector (Overall Mean: 5.501)

High-Performance-Dimension Reliability Tangible Responsiveness Reliability Tangible Reliability Empathy Responsiveness Reliability Tangible Responsiveness

Low-Performance-Dimension Empathy Assurance Responsiveness Assurance Empathy Assurance Tangible Empathy Assurance

Table 16, on the one hand, highlighted the high-performance dimensions of all three banking sub-sectors taken together along with the whole banking sector, and on the other hand, it brought out the low-performance dimension areas where improvements in service quality are required.

Empathy and Assurance are weak areas of the entire commercial banking sector of Pakistan. In the opinion of customers, the bank employees fail to show sympathetic and polite behavior and are often found wanting inadequate relevant information which satisfies the queries of customers. The level of empathy shown by the bank employees also leaves much to be desired, especially individual attention and understanding of specific needs of customers.

4.10 HYPOTHESIS TESTING The result derived from Structural Equation Modeling (Table 17) revealed that all dimensions of service quality have a significant and positive relationship with the dependent variable, Customer Satisfaction under Weighted SERVPERF Model.

Table 17: Hypothesis Testing HA1

Hypothesis The service quality dimensions i.e. Tangible, Reliability, Responsiveness, Assurance, and Empathy have a positive and significant impact on customer satisfaction.

Null Hypothesis Rejected

Research Hypothesis Accepted

4.11 DISCUSSION The analysis results have shown notable differences between commercial banking sub-sectors as well as public and private as banking categories. Deficiencies in the private sector banks are noted with respect to responsiveness, assurance and empathy, according to our study while other studies on the subject have indicated private sector banks lacking in satisfactory performance levels of assurance and responsiveness which are contingent on employees behavior and represents and weak management area (Banerjee & Sah, 2012; Kamlani, 2016; Kaura, 2013; Kumar & Gangal, 2011; Patidar & Verma, 2013; Ragavan & Mageh, 2013; Selvakumar, 2016).

Private sector bank has been found to have a substantial edge over public sector banks in a matter of performance of service to customers. The results of our study show that private sector banks are ahead in all dimensions of service and pronounced differences relate to tangibility, responsiveness and assurance dimension. Similar results have also been shown by previous studies on banking sector in Pakistan Khalid, Mahmood, Abbas, and Hussain (2011); Haq and Muhammad (2013); Gilal, et al.

(2015).

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Hassan Raza, Anwer Irshad Burney, Ahsanullah

The results indicate that ‘reliability’, tangible and responsiveness respectively considered as high-performance dimensions while empathy and assurance are indicated as low-performance dimensions.

5. CONCLUSION The study concluded that the Extended model of Weighted SERVPERF model has been validated by achieving the recommended value of uni-dimensionality, construct reliability, construct validity and model-fit indices through structural equation modeling (SEM) and also by using confirmatory factor analysis (CFA). The result shows a significant and positive relationship of dimensions of service quality with customer satisfaction.

The extended model of Weighted SERVPERF achieved partial mediation. The study also identified the differences regarding customer perception with respect to three banking sub-sectors.

The conventional banks in the private sector are distinguished as high performance followed by Islamic banks, whereas the public sector conventional banks are indicated as low-performance sectors.

The study also identified the high and low-performance dimensions for all three sub-sectors along with the entire commercial banking sector of Pakistan.

6. AVAILABILITY OF DATA AND MATERIAL Data can be made available by contacting the corresponding author.

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Hassan Raza, Anwer Irshad Burney, Ahsanullah

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Hassan Raza is a PhD. Scholar and presently working on his PhD. thesis from Khadim Ali Shah Bukhari Institute of Technology, Pakistan. He is a banker by profession and doing his PhD. in the area of Management sciences. His current interest involves all research related to bank service-related studies especially the Service Quality, Customer Satisfaction.

Professor Dr. Anwer Irshad Burney is Dean in Faculty of Management Sciences, Khadim Ali Shah Bukhari Institute of Technology, Pakistan. He is a seasoned professor. His research encompasses Management Sciences.

Professor Dr. Ahsanullah is Director ORIC at Khadim Ali Shah Bukhari Institute of Technology, Pakistan. He is a seasoned professor. His research encompasses Management Sciences.

*Corresponding author (Hassan Raza). Tel: +92-332-3143341. Email: has786@ymail.com.. Š2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02I http://TUENGR.COM/V11/11A02I.pdf DOI: 10.14456/ITJEMAST.2020.29

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©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies

International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies http://TuEngr.com PAPER ID: 11A02J

PREDICTING MEDIATING ROLE OF ORGANIZATIONAL COMMITMENT IN RELATIONSHIP BETWEEN HUMAN RESOURCE MANAGEMENT PRACTICES AND FACULTY TURNOVER INTENTIONS Irfanullah a

a*

a

, Shadiullah Khan , Khalid Rehman

a

Institute of Political and Administrative Studies (IPAS), Gomal University, Dera Ismail Khan, PAKISTAN.

ARTICLEINFO

A B S T RA C T

Article history: Received 12 July 2019 Received in revised form 30 September 2019 Accepted 22 October 2019 Available online 14 November 2019

The broad aim of the study was to find out the relationship between HRM practices (Salary, Career development, working environment) and turnover intentions through the mediating role of organizational commitment among the faculty members employed in both sector HEI,s in the southern part of Khyber Pakhtunkhwa province, Pakistan. Data was collected from academicians of the selected six of both sector universities. The sample size of a given population was determined through Yamane’s (1967) formula. A descriptive cross-sectional design was adopted in this study. The quantitative technique followed by survey-based research. Over stratified random method 300 questionnaires’ were distributed, 250 questionnaires were finalized for analysis. To test the research hypotheses (SPSS®21) was used.

Findings indicate that all HRMP,s were positively and significantly linked with organizational commitment(OC), whereas revealing a substantial negative direct influence on faculty quit intentions.

However, OC has been found to partially mediates the relationships’ between both HRM practices and turnover intentions’.

Keywords: Salary, Career Development, Working Environment, Cross-sectional design.

Disciplinary: Multidisciplinary (Management Sciences, Mathematics (Statistics), Social Engineering, Globalization Studies). ©2020 INT TRANS J ENG MANAG SCI TECH.

1. INTRODUCTION Turnover intention despite the type or its activities is a silent danger that exists in every organization. In the literature relating to organizational behavior and commitment employees intentions to depart an institution is revealed to be a major issue of concern. For many years, in administrative and managerial settings quit intention has been a critical phenomenon for institutions, and certainly in the modern era including Higher Education Institutions (HEI’s) this issue becomes a problem for several organizations’ (Maier et al., 2013). The higher educational institutions are also *Corresponding author (Yasir Tariq). Email: yasir.tariq@comsats.edu.pk. ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02H http://TUENGR.COM/V11/11A02H.pdf DOI: 10.14456/ITJEMAST.2020.28

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coming under threat from this danger. Turnover intention defined as "the conscious willfulness of thinking, desiring and planning to leave a job” (Feng & Angeline, 2010: p. 426). Perez (2008) termed quit intentions’ as the cognitive technique of looking for new job opportunities’ at other institutions.

For the time being, Liu and Onwaegbuzie (2012) have used alternate terms’ for turnover intentions for example propensity to leave, intent to leave and intentions to leave. It was also considered by many previous researches that the key means over which employee’s attitudes behaviors’ are shaped were organization HRM Practices (Buck & Watson, 2002; Haines et al., 2010). Furthermore, many researchers observed that employees’ organizational commitment can be improved through well-structured HRMPs which ultimately help the institution to achieve its goals. Both employees’ satisfaction level and HRM practices improve employee’s commitment to the institution and work (Kumar & Krishnaveni, 2008). Generally, organization commitment is observed as an individual attachment towards the institution where he/she is working. Organizational commitment described by Meyer and Allen (1991, p. 67) as ‘a mental state that demonstrates the individual affiliation with the institution and has indications for the determination to stay or leave the organization membership.

Employees to an organization thought to be more valued with strong commitment than individuals with lower levels of commitment (Meyer & Allen, 1997). Moreover, many previous researches reveal that individual intent to depart and OC are negatively related (Mathieu & Zajac., 1990; Addae et al., 2008). On turnover intentions most of earlier studies included OC as a mediator variable. For example Mathieu and Zajac (1990) investigated research in which OC is treated as mediating variable in the association between HRMP and quit intention. Similarly Igbaria and Greehaus (1992) conducted a study in which employees' quit intentions were influenced by HRM practices with the mediating role of OC. Consistent with Gould-Williams et al., (2013) and Kehoe & Wright, (2013) that organization commitment partially mediates the relationship between HRMP,s and individual switchover intention’s.

2. REVIEW OF LITERATURE 2.1 HUMAN RESOURCE MANAGEMENT PRACTICE’S HRM practices are those activities’ of organization’s through which the groups of individuals are managed and management also ensured that these resources’ are working effectively towards the achievement of organization objectives (Tiwari & Saxena 2012) According to Dzansi & Dzansi, (2010) HRM can be viewed as the deployment of individuals to achieve competitive advantage, mainly by means of human resource management practices. Fundamentally, to increase productivity of institution the behavior of the HR manager aims to enhance the efficiency and ability of its staff members.

2.2 SALARY AND TURNOVER INTENTION In this globalization era employees are mostly concerned regarding benefits and financial returns received as direct financial payment of the job. As stated by Heathfield, (2014) pay is “a fixed amount of compensation or money which is remunerated by an organization to an individual in return of job performed”. In previous studies several reasons that lead to depart intention such as, individuals attitude, compensation offered and job satisfaction (Berry, 2010). So, present study proposes that salary and turnover intention are negatively associated. When organizations offer higher salaries to their employee’s they are less likely to leave the organization.

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Zafar Iqbal, Khurrum Shahzad Mughal, Faheem Aslam, Muhammad Majid Khan, Yasir Tariq Mohmand

2.3 CAREER DEVELOPMENT AND TURNOVER INTENTION According to Weng and Hu (2009), they described individual career development as “the degree of professional upward progress inside the organizations”. Consistent with Karavardar, (2014) career management practice is essential because individuals are mostly concerned regarding their prospect of career development whether currently in the organization they are employed or in other organizations. Career development is negatively related to individual switchover intention (Delery & Doty 1996; Kehoe & Wright, 2013). This concludes that employees’ who endeavor to get appropriate promotion growth and remuneration in their organizations have lesser thought about leaving their jobs.

2.4 WORKING ENVIRONMENT AND TURNOVER INTENTION Working environment well-defined as all prevalent circumstances which affect individuals in the workplace, including work hours, physical aspects, legal rights, and duties. On different working samples various researches have revealed that perceived work environment may influence individuals’ quit intention (Houkes et al., 2001; Huang et al., 2007). As per Mobley et al., (1979) they declared the negative association between switchover and the working environment. Previous research studies found considerable and adverse relationships amid work environment and individual quit intention,s (Kramer & Schmalenberg 2008; Poilpot-Rocaboy et al., 2011).

2.5 ORGANIZATIONAL COMMITMENT (OC) AS MEDIATOR BETWEEN HRMPS AND TURNOVER INTENTIONS According to Allen & Meyer (1990), organizational commitment in the organizational backgrounds can be described as “the state of mind which psychologically ties the employee to an institution or emotional affection felt by the individual for the organization”. Additionally, Karavardar, (2014) and Rubel et al., (2015) declared that individual quit intention and organization commitment had negative links with one another, which indicates that individuals with higher organizational commitment have lesser turnover intention. Similarly their findings are correlated with many previous studies which found that individuals with higher commitment level possess lesser intention to depart the organization’s (Raihans, 2012; Wang & McElroy, 2012 and Lee & Huang, 2012). Many studies have found positive relationships amongst HRM practices and individuals’ commitment. For instance, Appelbaum et al., (2000) in their research delivered inclusive results in examining the relationships’ between HRM Practices and individual’s commitment.

Similarly, Paul and Anantharaman (2004) establish that HRM Practices, for example, pay, career development and comprehensive training are considerably and positively linked with individuals’ organizational commitment. Likewise, numerous empirical previous studies have revealed that the association amongst career development, compensation, work environment and turnover intention were mediated by OC, if individuals within the organizations perceived attractive, higher and equitable internal salary system, career advancement and better work environment ultimately within the organizations employees would stay and chances of leaving the organizations will possibly be decreased (Houkes et al., 2001; Vandenberghe & Tremblay, 2008 and Wang & McElroy, 2012).

Regarding OC and turnover intention prior literature highlighted negative relationships between OC and employees quit intention. (Wang & McElroy, 2012; Rubel et al., 2015). So, it can be concluded from the supported earlier literature, that OC plays a mediating role between HRM Practices and faculty quit intention. *Corresponding author (Yasir Tariq). Email: yasir.tariq@comsats.edu.pk. ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02H http://TUENGR.COM/V11/11A02H.pdf DOI: 10.14456/ITJEMAST.2020.28

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Therefore, on the basis of above discussions following main hypotheses are generated: H1: HRMPs and OC are significantly and negatively correlated with turnover intention.

H2: Organizational commitment mediates between salary and turnover intention.

H3: Organizational commitment mediates between career development and turnover intention.

H4: Organizational commitment mediates between the working environment and turnover intention.

3. CONCEPTUAL FRAMEWORK Regression analysis is applied to find the relationship among variables as shown in Figure 1.

Figure 1: Conceptual Framework

4. METHODOLOGY 4.1 RESEARCH RESPONDENTS, POPULATION AND SAMPLE The study respondents consist of Academicians at various ctor advance learning institutions both se located in the southern part (districts) of Khyber Pakhtunkhwa(KPK) Province, Pakistan. There are about 990 Academicians employed in these six universities and indicate the study total population.

Table 1: Respondent Demographics.

Demographics University Type

Designations

Qualification Gender Faculty

Public Private Lecturers(Lect) Assistant Professors(Assit.Prof) Associate Professors(Assot.Prof) Professors(Prof) Master M.Phil.

PhD Male Female Arts Sciences

Frequency 179 71 141 77 14 18 53 103 94 172 78 119 131

Percentage 71.6% 28.4% 56.4% 30.8% 5.6% 7.2% 21.2% 41.2% 37.6% 68.8% 31.2% 47.6% 52.4%

Deciding a valid sample that may possibly generate consistent results for the study is a critical task. According to Hair et al, (2011) for statistical analysis they mentioned that an appropriate size of sample would be at least 10 to 20 times more than the variable required. In addition Hair et al., (2014) for statistical analysis recommended that smallest size of sample is around 220 respondents.

Therefore, researcher personally distributed total 300 questionnaires to the faculty members to make sure sufficient data should be gathered. Out of 300 questionnaires, only 250 questionnairesâ&#x20AC;&#x2122; were usable. Table 1 illustrates the demographic information of 250 respondents participated. In summary, the faculty participated from public sectors are (71.6%), most of the individuals are holding Lecturer

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Zafar Iqbal, Khurrum Shahzad Mughal, Faheem Aslam, Muhammad Majid Khan, Yasir Tariq Mohmand

position in the organization (56.4%) respondents having M.phil degree are (41.2%) male respondents are (68.8%) and from the faculty of Sciences are (52.4%) respondents participated in the study.

5. MEASUREMENT In this study to measure whole included variables, the scales have been adapted from the prior researches with proper modifications that are appropriate for the study sample. Mainly there are two components in the survey questionnaires. The first section depicts the information regarding respondents’ demographics and the second section included several Likert scale type items of the study. According to Sekaranat (2006), Likert-scale is intended to test how strongly and clearly the respondents of study are disagreed or agreed with a definite statement. The key aim of the seven-point scale was to provide respondents better capture variability in their feelings and attitudes and more choices/ options (Hinkin, 1995). To determine salary the scale includes 5-items used by Teseema and Soeters, (2006) was applied. Similarly, to examine career developments 5-items scale by Weng & Hu (2009) was employed. Likewise, working environment was determined with 6-items scale by Houkes et al., (2001) was adapted. Moreover, for OC a 17-items scale by Allen and Meyer (1990) was adapted. Finally, to measure turnover intention 14-items scale used by Mobley et al., (1979), and Wang & McElroy, (2012) was employed.

6. DATA ANALYSIS AND RESULTS For analysis of data Statistical Package for Social Sciences (SPSS version 21) was used. The descriptive statistics (Means, Standards Deviations and Normality Statistics whereas Pearson Product Correlation and mediation regression analysis were applied.

6.1 RELIABILITY OF THE QUESTIONNAIRE The reliability test shows the internal consistency between the constructs of the questionnaire. In the scale measurements the data collected through questionnaire to verify that measures’ are free from errors and also obtain consistent results the test of reliability would be employed.

(Sekaran.,2003; Zikmund et al., 2010).

Table 2: Cronbach’s Alpha of Variables.

Variables HRMPs: SA CD WE OC TI Overall Reliability

Numbers of Questions

Cronbach’s Alphas

5 5 6 17 14 47

0.86 0.82 0.77 0.83 0.85 0.92

6.2 MEANS, STANDARD DEVIATION & NORMALITY STATISTICS Table 3 shows Mean, Standard Deviation (SD) & Normality Statistics of each variable. The acceptable range of normality data by using skewness and kurtosis falls between the values of ±1.96 (Hair et al., 2014). Table 3 indicates that all values fall between the acceptable ranges. Thus, the assumption of normality for the parametric test is fulfilled.

*Corresponding author (Yasir Tariq). Email: yasir.tariq@comsats.edu.pk. ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02H http://TUENGR.COM/V11/11A02H.pdf DOI: 10.14456/ITJEMAST.2020.28

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Table 3: Means, Standards Deviations & Normality Statistics Variables HRMPs: SA CD WE OC TI

Means

SD

Skewness

Kurtosis

3.58 3.97 3.86 3.33 3.04

0.92 0.95 0.84 0.85 0.94

-1.10 -0.71 -0.70 -0.68 0.95

-0.40 -0.79 -0.63 -0.72 -0.71

6.3 CORRELATION ANALYSIS H1: HRMPs and OC are significantly and negatively correlated with turnover intention.

The results in Table 4 demonstrate the correlation matrix amongst HRMPS, OC, and TI. There is a statistically significant as well as negative association between SA, CD, WE further OC with TI (r = -.659, r = -.598, r = -.626 and r = -.403) with P-value (<0.001).

Table 4: Correlation (N =250) Salary(SA)

Career Development(CD) Working Environment(WE) Organizational Commitment Turnover intentions

Pearson Correlation Sig. (2-tailed) N Pearson Correlation Sig. (2-tailed) N Pearson Correlation Sig. (2-tailed) N Pearson Correlation Sig. (2-tailed) N Pearson Correlation Sig. (2-tailed) N

SA 1 250 .484** <.001 250 .381** <.001 250 .459** <.001 250 -.659** <.001 250

CD

WE

OC

TI

1 250 .676** <.001 250 .201** .001 250 -.598** <.001 250

1 250 .267** <.001 250 -.626** <.001 250

1 250 -.403** <.001 250

1 250

6.4 MEDIATION ANALYSIS While conducting mediation analysis, four-step model of Baron & Kenny (1986) was adopted.

For this purpose, “PROCESS macro” by Hayes (2013) was used to scrutinize the intervening role of OC in therelationships between HRM practices and TI. H2: Organizational commitment mediates between salary and turnover intention.

Table 5: Mediation of SA-OC-TI (N=250).

Mediation Paths/Steps Coefficient P-value Path “a” DV: TI Salary -0.414 <0.001 Path “b” DV: OC Salary 0.255 <0.001 Path “c & ć” DV: TI Organizational Commitment -0.172 <0.001 Salary -0.372 <0.001 Model summary R² 0.433(without OC) 0.452(with OC) Adj R² 0.432 0.447 F-Value 183.196 98.344

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Zafar Iqbal, Khurrum Shahzad Mughal, Faheem Aslam, Muhammad Majid Khan, Yasir Tariq Mohmand

The result in Table 5 indicates the relationship between SA & TI with the intervening part of OC. Table 5 describes the four paths of Baron & Kenny (1986) model of mediation. In the first path, there is significant relationship between SA and TI (β coefficient = -0.414, p-value = <0.001). Secondly path b, demonstrates significant relationship between SA and OC (β coefficient = 0.255, p-value = <0.001). Thirdly path c, depicts significant relationship between OC and TI (β coefficient = -0.172, p-value = <0.001). Lastly in path ć, beta value is remain significant (β coefficient = -0.372, p-value =.005) which illustrates OC partially mediates the relationship between SA and TI. In the model summary of stepwise multiple regression’s (IV-DV and IV&MV-DV) R2 rises as of 43% to 45% (0.433 to 0.452) due to OC. Therefore H2 is verified.

H3: Organizational commitment mediates between career development and turnover intention.

Table 6: Mediation of CD-OC-TI (N=250) Mediation Paths/Steps Coefficient P-value Path “a” DV: TI Career Development -0.392 <0.001 Path “b” DV: OC Career Development 0.129 <0.001 Path “c & ć” DV: TI Organizational Commitment -0.338 0.005 Career Development -0.349 <0.001 Model summary R² 0.361(without OC) 0.446(with OC) Adj R² 0.358 0.442 F-Value 135.318 96.383 The finding in Table 6 shows the relationship between CD & TI with the mediating role of OC. The table describes the four paths of Baron & Kenny (1986) model of mediation. In the first path, there is significant relationship between CD and TI (β coefficient = -0.392, p-value = <0.001) Secondly path b, reveals significant relationship between CD and OC (β coefficient = 0.130, p-value = <0.001). Thirdly path c, illustrates significant relationship between OC and TI (β coefficient = -0.338, p-value = 0.005). Lastly in path ć, the beta value remains significant (β coefficient = -0.3485, p-value =<0.001) which proves OC partially mediates the relationship between CD and TI. In the model summary of stepwise multiple regressions’ (IV-DV & IV&MV-DV) R2 upsurge’s from 36% to 44% (0.361 to 0.446) as a result of OC. Therefore H3 is substantiated.

H4: Organizational commitment mediates between working environment and turnover intention.

In Table 7 results depict the intervening role of OC in relationship between WE & TI. The table describes the four paths of Baron & Kenny (1986) model of mediation. In the first path, there is significant relationship between WE and TI (β coefficient= -0.502, p-value = <0.001). Secondly path b, reveals significant relationship between WE and OC (β coefficient = 0.193, p-value = <0.001).

Thirdly path c, shows significant relationship between OC and TI (β coefficient= -0.306, p-value = *Corresponding author (Yasir Tariq). Email: yasir.tariq@comsats.edu.pk. ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02H http://TUENGR.COM/V11/11A02H.pdf DOI: 10.14456/ITJEMAST.2020.28

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<0.001). Lastly in path ć, beta value is remain significant (β coefficient= -0.444, p-value=0.000) which illustrates OC partially mediates the relationship between WE and TI. In the model summary of stepwise multiple regressions’ (IV-DV & IV&MV-DV) R2 increases from 38% to 45% (0.386 to 0.455) because of OC. Therefore H4 is verified.

Table 7: Mediation of WE-OC-TI (N=250).

Mediation Paths/Steps Coefficient P-value Path “a” DV: TI Working Environment -0.502 <0.001 Path “b” DV: OC Working Environment 0.193 <0.001 Path “c & ć” DV: TI Organizational Commitment -0.306 <0.001 Working Environment -0.444 <0.001 Model summary R² 0.3864(without OC) 0.4552(with OC) Adj R² 0.381 0.450 F-Value 150.796 99.594 Table 8: Summary of Research Results.

Research Hypotheses H1: HRMPs and OC are significantly and negatively correlated with turnover intention.

H2: Organizational commitment mediates between salary and turnover intention.

H3: Organizational commitment mediates between career development and turnover intention.

H4: Organizational commitment mediates between working environment and turnover intention

Nature of Relationship

Confirmation or Rejection

Negative and significant

Confrmed

Partial mediation

Confirmed

Partial mediation

Confirmed

Partial mediation

Confirmed

7. DISCUSSION Research results are summarized in Table 8. The study statistical results and findings illustrates that HRMPs are significantly and negatively linked with quit intention. Secondly, HRMPs and OC are positively and significantly associated with each other. The results of existing research are in line with the results of many earlier researches. e.g. (Agarwala, 2003; Macky & Boxall, 2007) these studies support the existence of positive connection amongst HRMPs and OC whereas most of these studies suggest that well-organized HRMPs and quit intention are negatively linked to one another.

Whereas, OC while treated as mediator in the relationship between SA and TI shows partial mediation, partial mediation in the relationship between CD and TI, and partial mediation in the relationship between WE and TI. In the academic setting, for instance the results and findings of the existing study are matched with the previous researches conducted by Mathieu and Zajac (1990), Igbaria & Greehaus (1992); and Kehoe & Wright, (2013) they found that the relationship between HRMPs and quit intentions were partially intervened by OC. Additionally, OC as mediator reduced the direct effect of HRMPs and turnover intention.

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Zafar Iqbal, Khurrum Shahzad Mughal, Faheem Aslam, Muhammad Majid Khan, Yasir Tariq Mohmand

8. CONCLUSION This study findings enrich the understanding of the manager’s regarding the significance of HRM practice for the organization Actually, managers are required being informed of the perceptions of individual supportiveness to the institution which will influence quit intentions, and consequently change their judgments and activities accordingly. The management of private sector HEIs facing difficulties with higher switchover may especially be interested in this research study. As an initiative action to decrease quit intention of academicians management must have closer look at the key HRM practices and to prevent high-level switchover in the institutions’. Moreover, particularly in the background of higher educational institutions the research has moreover tested the mediating role of OC in understanding switchover behaviors. As the predictors of turnover intention the current research increases further information on the significance of HRM practices. Likewise, for retaining organizational performance and the issue of keeping, sustaining and motivating employee’s deliberated to be a smart strategy, as it spends in the useful human capital resource. Furthermore the organizational commitment and HRM practices are reflected in the behavior and attitudes of individuals. It is a well-recognized reality that organizations are really considered to be as successful as their employees are. Employees are considered an organization main source of progress and prosperity. Therefore, organizations’ are required to keep and establish long-term relations with their employees.

9. AVAILABILITY OF DATA AND MATERIAL Data can be made available by contacting the corresponding author.

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Zikmund, W.G., Babin, B.J., Carr, J.C., Griffin, M. (2010). Business Research Methods, 8th edition. Australia: SouthWestern Cengage Learning.

Irfan ullah is a Ph.D Scholar in the Institute of Political and Administrative Studies (IPAS), Gomal University, Dera Ismail Khan, Pakistan. He received his Master's Degree in Business Administration from Gomal University, Dera Ismail Khan, Pakistan. His research interests are HRM Practices and employee turnover.

Prof.Dr. Shadiullah Khan is a Professor at the Institute of Political and Administrative Studies (IPAS), Gomal University, Dera Ismail Khan, Pakistan. He received his Master's degree in Public Administration and a PhD degree in Management from Gomal University, Dera Ismail Khan, Pakistan. His research interests are Development Administration Human resource management and Decentralized Governance and Participatory Development.

Mr. Khalid Rehman is a Ph.D Scholar in Institute of Political and Administrative Studies (IPAS), Gomal University, Dera Ismail Khan, Pakistan. He received his Master's Degree in Business Administration from Gomal University, Dera Ismail Khan, Pakistan. His research interests are Management and Organizational performance.

*Corresponding author (Yasir Tariq). Email: yasir.tariq@comsats.edu.pk. ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02H http://TUENGR.COM/V11/11A02H.pdf DOI: 10.14456/ITJEMAST.2020.28

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©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies

International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies http://TuEngr.com PAPER ID: 11A02K

ECONOMIC IMPLICATIONS OF BRICS FOR PAKISTAN: A CGE APPROACH Nasrullah a*, Muhammad Aamir Khan b , Muhammad Iftikhar ul Husnain b a b

Department of Management Sciences, COMSATS University Islamabad, PAKISTAN. Department of Economics, COMSATS University Islamabad, PAKISTAN. ARTICLEINFO

A B S T RA C T

Article history: Received 19 September 2019 Received in revised form 18 October 2019 Accepted 24 October 2019 Available online 15 November 2019

The BRICS i.e. Brazil, Russia, India, China, and South Africa is one of the significant economic coalitions with the main purpose to provide an integrated platform to the members; where they can enjoy new disciplines beyond the existing infrastructure provided by WTO. BRICS is one of the most important import and export destinations for Pakistan with 35.2% share in total imports and 12 % shares in total exports of Pakistan. Pakistan will likely face trade diversion as a non-member of the said economic coalition as an impact of the States economic coalition.

This research examines the likely influence of BRICS member’s alliance on Pakistan’s sectoral imports and exports, real GDP, factor returns and household income distribution by using the global Computable General Equilibrium (CGE) model in collaboration with latest available Pakistani Social Accounting Matrix (SAM) 2013, which is a tailor-made tool for these kinds of analysis. Preliminary results show a negative impact of the presumed BRICS on both the macro as well as sectoral and household levels of Pakistan; In the same way, reduction in non-tariff barriers among BRICS member’s resulted in a deterioration of 0.016%, 0.405%, 0.615%, 0.105% and 0.620% in Pakistan’s Real GDP, Exports, Imports, term of trade and government’s income respectively.

Keywords: Social Accounting Matrix (SAM), Global CGE, Tariff and nontariff; Computable General Equilibrium (CGE) model; Import Export; Trade analysis; Free trade agreement.

Disciplinary: Economic Sciences. ©2020 INT TRANS J ENG MANAG SCI TECH.

1. INTRODUCTION Failure of the Doha Development Agenda (DDA) resulted in the emergence of more and more comprehensive and motivated bilateral trade agreements. “BRIC” i.e. Brazil, Russia, India, and China; that later on became BRICS after the induction of South Africa in 2011 is one of the significant trade agreements. Cai et al. (2015) stated that BRICS is a significant emerging economic block with an important role in global trade and has a sturdy linkage with global economy due to the Simultaneous production of BRICS countries through FDI (foreign direct investment) and global *Corresponding author (Nasrullah). Email: nasrullah_shah@yahoo.com ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02K http://TUENGR.COM/V11/11A02K.pdf DOI: 10.14456/ITJEMAST.2020.31

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trade in the presence of international fragmented economic blocks i.e. RTA (Regional trade agreements), FTA (Free trade agreements), EPA (Economic partnership agreements), ASEAN (Association of Southeast Asian Nations) and NAFTA (North American Free Trade Agreement). The main purpose of BRICS is to provide a comprehensive and integrated platform to the member countries i.e. Brazil, Russia, India, China, and South Africa; where they can enjoy new rules and disciplines beyond the existing infrastructure provided by WTO. US National intelligence council (NIC) evaluated that the shift of global economic power is in progress from West to East; Furthermore, rise of West from 1750 is going to up-turned with restoration of Asia’s global economic power by 2030. “Goldman Sachs” reported, if thing goes correctly, BRICS members could together overtake G6, where only US and Japan may sustain their positions among the six largest economies of the world by 2050 in terms of US dollar (Neill et al., 2003).

The world economy has witnessed of huge change in the last five decades, over the coming five decades; at least the variation could be impressive (Wilson and Purushothaman, 2003). After the start of the global financial crisis, 2007; BRIC members are accounted for 50% of the world’s economic growth. By the end of 2020 BRIC members will be among the top seven economies of the world by dislodging all the European powers except Germany by 2030 with respect to purchasing power parity (Armijo and Roberts, 2014). Furthermore Arkhipov et al. (2013) stated that half of the world hard currency is held by BRICS members in which 78.18% is held by CHINA. Pakistan is not a member of the BRICS alliance but the international independent organization BRICS is accelerating political, cultural and commercial cooperation among the member countries.

Pakistan might face losses due to trade diversion as a non-member of the proposed BRICS i.e.

Pakistan’s CPFTAs (China Pakistan Free Trade agreements) with China, SAPTA rounds with India and bilateral relations with Russia, Brazil, and South Africa may affect adversely due to the BRICS members cooperate with each other.

BRICS is one the most important import and export destination for Pakistan with a 35.2% share in total 2016 import of Pakistan i.e. 29.1% from China, 3.5% from India and 2.6% from the rest three which indicates a strong linkage of Pakistan with BRICS. Besides the strong linkages through import; BRICS is an important export destination to Pakistan with 11.1% shares in total 2016 export of Pakistan i.e. 7.7% to China, 1.7% to India and 1.7% to the rest three members.

The current paper examines the economic implication of BRICS for Pakistan; motivated by the fact that BRICS is a huge beneficiary of global investment flows and among the key consumers of global commodities. Therefore, the main global economic players could be a channel to parcel financial and economic fluctuations to the rest of the world.

2. LITERATURE REVIEW Several studies were conducted to forecast the trade relations within BRICS using CGE (Cheng et al., 2007; Sandrey and Jensen, 2008; Sandrey and Jensen, 2013). Wilson and Purushothaman (2003) conducted a research study to forecast the dreaming path of BRICS until 2050 while Cai et al.

(2015) studied the impact of TTIP on BRICS; similarly, Na et al. (2012) studied the impact of Euro sovereign debt crisis on BRICS. Similarly, Cai et al. (2015) incorporated both direct and indirect spillover effects of non-tariff-barrier negotiations among EU and US in their study spillover effects

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Nasrullah, Muhammad Aamir Khan, Muhammad Iftikhar ul Husnain

of transatlantic trade and investment partnership on BRICS members.

Das (2012) used a CGE model by taking BRICS two members i.e. India and China as a core region of their model; i.e. these two members are demand accelerating agents from emerged North to the emerging South. In continuation, Lemelin et al. (2013) also used the CGE model with financial and capital accounts along with endogenous current account and financial assets, composed of 12 regions and 2 BRICS members i.e. India and China. Similarly, Pereira et al. (2010) used GTAP7 to analyze the influence of DR (Doha rounds) on India, China, and Brazil in comparison with US and 25 regions of EU. Ahmed and O’Donoghue, (2008) used a CGE model with social accounting matrix of Pakistan to examine the impact of variation in external balances of Pakistan on net welfare of Pakistan. They used CGE model with social accounting matrix of Pakistan to examine the impact of variation in external balances of Pakistan on net welfare of Pakistan. The results revealed that increase in prices of imported raw material, petroleum and other manufacturing commodities have adverse effects on growth performance, secondly in general poverty is increasing with increase in import prices. The study further suggested increase in export of dynamic items and reduction in reliance on imported raw materials for the betterment of current account balances of Pakistan.

Butt (2006) used the CGE model to examine both the short-run and long-run impacts of tariff cuts on Pakistani exports, employment, regional disparity, and output level by taking Pakistani economy as a whole, central industry and key regions of Pakistan. The result shows a reduction in regional disparities in response to trade openness in democratic eras while in military regime a positive relation was observed between regional disparities and trade liberalization. Furthermore the result revealed a significant increase in GDP to trade liberalization in long run with a minute increase in GDP in short run. The results further revealed a sharp increase in output level of the NWFP, Baluchistan, and Punjab as a result of trade liberalization.

Khan et al. (2015), adopted GTAP framework with the MYGTAP program; to examine the effect of Pakistan’s agricultural trade liberalization on labor types and multiple households. After the elimination of export subsidies and import tariffs on agricultural products of Pakistan; the result shows that Pakistan’s agriculture openness has the potential to increase income inequality especially in rural areas where agriculture is the major source of earning for the residents. They further stated that agricultural trade liberalization is exposing the underprivileged, banished and landless farmers of Pakistan to the globally volatile and distorted agricultural market.

Iqbal et al. (2017) carried out a research study to examine the impact of GSP (Generalized System of Preferences) plus status of Pakistan on household income. To examine the impacts at household level; the study adopted MyGTAP developed by Minor and Walmsey (2013) with latest available SAM for changes in labor types and multiple households. The overall result shows increase in GDP, provisions of trade and goods exports with increase in the current production level of Pakistan.

Similarly Pakistan with proposed EBA (Everything but arms) status resulted in increase of real wages of the households belong to no agricultural land of rural Sindh.

Khan et al. (2018) conducted a research study to examine the economic implication of CPTPP (Comprehensive and progressive agreements for the Trans-pacific partnership) through CGE approach for Pakistan. The study linked extension of standard GTAP, MyGTAP to household model by adopting the latest available comprehensive SAM (social accounting matrix). The study *Corresponding author (Nasrullah). Email: nasrullah_shah@yahoo.com ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02K http://TUENGR.COM/V11/11A02K.pdf DOI: 10.14456/ITJEMAST.2020.31

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incorporated three simulations i.e. S1 with full trade openness between CPTPP members, S2 with full trade openness among CPTPP members and Pakistan and S3 with full trade openness among Pakistan, US and CPTPP members. The results quoted overall negative implication of current CPTPP for Pakistan while Pakistan as a proposed member of CPTPP resulted in enhancement of Pakistan’s economy.

Wu et al (2013) incorporated a scenario analysis in CGE model based on tariff reduction and trade facilitation among BRICS members; the paper presented 4 scenarios for comparison with reference scenario i.e. S0 for reference scenario, S1 for no tariff, S2 for tariff reduction, S3 for trade facilitation and S4 for reduction of agricultural subsidy. Firstly the study accomplished a reference scenario without imposing any limitations on tariff reduction or trade facilitation for comparison; that results in long-lasting growth of all BRICS members. S1 was designed with zero tariff line among all BRICS members; resulted in favor of India. S2 was based on “Harbinson approach” of tariff reduction shows comparatively slow export growth to S1. In case of S3 China, India and Russia show increase in both the welfare and GDP rates while the rest two in long run. S4 observed as a less responsive scenario to export the total region.

Sandrey and Jensen (2013) incorporated 4 scenarios in their study to examine PTA’s (preferential trade agreements) among BRICS members; they stated that zero tariff line is not feasible at this point with imposed 50% and 25% reduction in tariff lines for scenario1 and 2 respectively with 2% additional cutup in NTB (non-tariff barriers) backed by gains from close cooperation among BRICS members in shape of infrastructure and efficiency enhancement. Similarly, scenario3 applied scenario1 by allowing the clothing and footwear industry to not reduce tariffs while scenario4 allow India to not reduce gold tariff for South Africa.

There are very few studies investigated the impact of BRICS on non-member countries by using different co-integration or other econometric models (Samake and Yang, 2014; Fedoseeva and Zeidan, 2016). Up to the best of our knowledge, no study has been investigated the impact of BRICS on any non-member country by using CGE models. The current study examined the impact of FTA’s among BRICS countries on Pakistan.

3. METHOD The current study examines the probable economic impact of tariff and non-tariff barriers reduction scenarios i.e. reduction in tariff lines with 50% (S1) and non-tariff lines with 14% (S2) among BRICS members on Pakistan in CGE (Computable Generalized Equilibrium) framework, a brief discussion is as below;

3.1 COMPUTABLE GENERALIZED EQUILIBRIUM CGE (Computable Generalized Equilibrium) uses actual economic data for analysis in response to changes in technological, environmental and government policies. It explicates the precise behavioral information of an economic agent. It considers organizations as income increasing and cost decreasing while households as utility increasing agents of the economy. It further assumed that prices are the main bases for agent’s decisions regarding consumption and production, which are observed by the supply and demand’s equilibrium. CGE model is the most appropriate and extensively used tool for the analysis of inequality, poverty, and welfare (Savard, 2003). On the other side, economic theory is notional which is unable to grant comprehensive implications of reforms in

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Nasrullah, Muhammad Aamir Khan, Muhammad Iftikhar ul Husnain

governmental policies and is insufficient since it cannot take descriptions of multi-sectoral and household distributions as discussed by Harrison et al. (2010) and Winter et al. (2004). CGE model links several economic sectors through arrangement of equations and several computer tools i.e.

GEMPACK, MATLAB, and GAMS workout on these arrangements (Bandra, 1991). Blake (1998) quoted that CGE is neoclassical by its nature as the household is keeping utility-maximizing while the producers are keeping cost-minimizing behaviors.

A CGE model has two distinguishing attributes; firstly, the model observes the behavioral response of consumers and producers in response to policy reforms regarding adjustment in relative prices, secondly, it integrates a number of different sectors (Adam et al. 1998). Shaikh et al. (2012) further quoted that AGE and CGE models are gifted with observing economy-wide linkages and interaction among distinctive sectors with internal consistency. The model is capable of analysis of trade policy influence on several endogenous variables with subsequent interaction among the variables. Kehoe and Kehoe (1994) stated that CGE models are multipart and are capable to observe the inter-relations among different economies as well as different segments of the economies. On the other side, models based on Partial equilibrium take only account of some endogenous variables and regularly relay on historical time series data.

Global edition of CGE model functions in the same way with an advantage on the simple version; as global edition of CGE keeps accounts of inter-linkages among distinctive economies. The GTAP model supports the Global edition of CGE model with the providence of database and modeling frame for CGE operations i.e. the key source for multi-economies data is GTAP database as discussed in the next section.

The only arrangement among policymakers and researchers is the GTAP (global trade analysis project). The main attraction of GTAP is that it is accounted for annual flows of services and commodities within a specified base year. The database further provides a ground for researchers to suggest the influence of country-specific and also sector or class-wise policies reforms on the global level. GTAP is a manifold regional CGE model designed for fixed analysis of relative reforms in trade policies (Adam et al. 1997).

3.2 GTAP (GLOBAL TRADE ANALYSIS PROJECT) A comprehensive utility function and an individual household are taken to conduct a GTAP model with allotment of regional expenditures to three elements i.e. savings, government expenditures, and private expenditures. The framework presumed that individual households provide their service’s commodities to local organizations and make earnings. The organizations, then, offer the final goods to government and private household’s demand after combining these service’s commodities with transitional supplies. Private household purchases some of the raw materials and capital goods to fulfill their individual demand for reserves. In the open economy package, GTAP model is composed of 2 global sectors i.e. first, an international bank that works as an agent among regional and global saving and the second one is transport and trade accounts. The current study uses MyGTAP, a modified version of khan (2018).

3.3 MYGTAP The MyGTAP model provides an extended version of the standard GTAP model by extending the single regional household into segregated different private and government households as they all have different expenditure and income accounts. The government has two sources of earnings i.e. *Corresponding author (Nasrullah). Email: nasrullah_shah@yahoo.com ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02K http://TUENGR.COM/V11/11A02K.pdf DOI: 10.14456/ITJEMAST.2020.31

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foreign aids and tax, similarly, Government spends some portion of their earnings into expenditure on services and commodities while the rest became the government’s saving. The model recognizes several sources of private household earnings which include i.e. foreign remittances, factors, and capital earnings. Private households then used their incomes either with SEF (specified expenditure function) or CDE (constant difference expenditures). Walmsley and Minor (2013) quoted that MyGTAP provides various extra features over the standard GTAP model i.e. by allowing flexibility in handling of government’s savings and spending, by allowing the capital income and remittances transfers among different regions and by providing an extended version of GTAP to examine the influence of policy reforms on distinctive factors and household types within the global CGE framework.

3.4 DATASETS OF THE STUDY This study uses two different kinds of datasets, the latest available GTAP 9a database by Aguiar et al. (2016) with a recent Pakistani complete SAM (Social Accounting Matrix) 2013 (IPFRI, 2016).

The currently available GTAP 9a databases are based on the global economy for four base years i.e.

2004, 07 and 11. The current study uses the latest 2011 base year database. The subject database is consisting 119 economies, 140 regions, 57 sector, and 21 collective regions. To assist simulations, the study further aggregated the 140 regions into 8 regions i.e. Brazil, Russia, India, China, South Africa, United states, Pakistan and the rest of Asia. Similarly, 57 goods sectors are aggregated into 11 sectors (Tables 3 and 4).

The comprehensive Pakistani SAM 2013 affords comprehensive information regarding 17 groups of households (Table 6) categorized by urban and rural geographical regions; furthermore, the household groups are divided on the basis of land ownership and sizes. Similarly, Standard GTAP’s 5 factors of production are disaggregated from the Pakistani SAM 2013, 27 production factors. The MyGTAP model by Walmsley and Minor (2013) took factors, ownership and consumption influence from SAM Pakistan to disaggregate factors, household consumption and earnings respectively. To make the original GTAP database consistent with the total returns of consumptions and factors, the obtained weights are adjusted to the GTAP database.

4. RESULT AND DISCUSSION The starting point for the study analysis is the final standard MyGTAP model which assumes perfect competition in all the economic sectors with zero profit. It is further assumed that natural resources and the land is stagnant while labor and capital are entirely mobile among all the sectors.

Similarly, government’s pay-outs are set to be an unvarying portion of government’s income and the government deficit will only increase in case of tariff revenue reduction instead of tax replacement.

Ups and down in Factors prices will assume to be the drivers of foreign income flows in the economy where they are placed. ERA (Expected rate of returns) and sum of private households are assumed to be the driver of investment and domestic saving with government deficit respectively as in standard GTAP; thus, the trade equilibrium is endogenous.

4.1 WORLDWIDE WELFARE IMPACTS OF BRICS MEMBERS COALITION Worldwide influence of tariff and non-tariff barriers reduction among BRICS members can be seen in column2 and 3 of table1 respectively. Column2 and 3 of table1 represent that Pakistan real GDP responded with fall of 0.012% and 0.06% in a result of simulation1 and 2 respectively which is

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Nasrullah, Muhammad Aamir Khan, Muhammad Iftikhar ul Husnain

26.06 and 35.1 million in dollar terms. Furthermore, it can be seen that this potential BRICS free trade agreement would have the greatest welfare loss to United States i.e. 663 and 2034 million dollars, secondly to Europe i.e. 1002 and 4561 million dollars in response to simulation1 and 2 respectively.

Similarly, all the BRICS members would get welfare gain from the proposed economic coalition i.e. China would get the most benefits from the proposed economic coalition i.e. 4435 and 43913 million dollars, secondly, India with 1587 and 24401 million dollars, thirdly Brazil with 2794 and 20101 million dollars, then Russia with 993 and 8607 million dollars and South Africa with 738 and 6615 million dollars in a result of reduction in tariff and non-tariff barriers among BRICS members respectively.

Table 1: Worldwide Welfare Impacts of BRICS Members Coalition. % (million$) Impact of BRICS coalition on real GDP of Selected economies Country/region SIM1 [BRICS (5)] SIM2 [BRICS (5)] Pakistan -0.012%(-26.06) -0.016%(-35.1) United States -0.004%(-663) -0.013%(-2034) Brazil 0.11%(2794) 0.812(20101) Russia 0.052%(993) 0.452%(8607) India 0.084%(1587) 1.3%(24401) China 0.060%(4435) 0.60%(43913) South Africa 0.182%(738) 1.63%(6615) Rest of Asia 0.0007%(7.5) -0.00039%(-4.2) Europe -0.006%(-1002) -0.029(-4561)

4.2 INFLUENCE OF TARIFF AND NON-TARIFF BARRIERS REDUCTION AMONG BRICS MEMBERS ON PAKISTAN 4.2.1 IMPACT OF BRICS COALITION ON MACRO-ECONOMY OF PAKISTAN Column2 and column3 of Table2 represent the impact of 50% reduction in tariff-lines and 14% reduction in non-tariff lines among BRICS member’s on macro-economic factors of Pakistan respectively. Column2 represents that Pakistan’s Real GDP, Real Imports, overall term of trade and government income shows a deterioration of -0.012%, -0.374%, -0.175% and -2.98% respectively in responses to the presumed reduction in tariff-lines among BRICS members. Similarly, column3 represents that Pakistan’s Real GDP, Real Imports, Real Exports, overall term of trade and government income shows a deterioration of -0.016%, -0.405%, -0.615%, -0.164% and 0.62% in response to non-tariff barriers reduction respectively. This negative impact of BRICS coalition on Pakistan clearly shows the adverse impacts of BRICS coalition on non-members i.e. Pakistan economy, which may result in economy-wide drop as a non-member.

Table 2: Impact of BRICS Coalition on Macro-Economy of Pakistan. % (million$) Change in Macro Economy of Pakistan Macro factors SIM1 [BRICS (5)] Real GDP (qgdp) -0.012(-26.1) Real Exports (qxwreg) 0.012(3.62) Real Imports (qiwreg) -0.374(-213) Terms of Trade (tot) -0.175(-0.002) Government Income (gincome) -2.98

SIM2 [BRICS (5)] -0.016 (-35.1) -0.405 (-0.004) -0.615(-350) -0.164(-0.002) -0.620

*Corresponding author (Nasrullah). Email: nasrullah_shah@yahoo.com ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02K http://TUENGR.COM/V11/11A02K.pdf DOI: 10.14456/ITJEMAST.2020.31

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4.2.2 IMPACTS OF BRICS COALITION ON PAKISTAN’S SECTORAL-PRODUCTION Column2 of Table3 shows the impact of 50% reduction on tariff lines among BRICS members on the Sectoral production of Pakistan. The result shows a negative impact on BRICS member coalition on output level of VegFuit, procFood and Until_Cons with -0.14%, 0.043% and 0.14% respectively while rest of the sectors shows positive response to 50% reduction in tariff lines among BRICS members i.e. Gran Crops with 0.003%, MeatLstk with 0.026%, Extraction with 0.166%, TextWapp with 0.098%, LightMnfc with 0.018%, HeavyMnfc with 0.114%, TransComm with 0.001% and Other Services with 0.007%. These positive impacts of sectoral outputs may be due to decrease in overall imports of Pakistan due to the BRICS member dealings with each other as shown in Table2; the availability of expensive imports to Pakistan as a non-member of BRICS alliances increased Pakistani sectoral output to engage the local demands with cheap domestic products.

Similarly, coulumn3 shows the influence of NTB reduction among BRICS members on sectoralproduction of Pakistan.

Table 3: Impacts of BRICS Coalition on Pakistan’s Sectoral Production. %Change in Sectoral Production of Pakistan SIM1 [BRICS (5)] SIM2 [BRICS (5)] Sectors 0.003 (1.70) 0.022(11.7) Grain Crops -0.140(-7.08) -0.191(-9.65) VegFruit 0.026(3.74) 0.039(5.6) MeatLstk 0.166(20.4) -0.209(-25.6) Extraction -0.043(-30.4) -0.067(-47.5) ProcFood 0.098(38.2) 0.763(299) TextWapp 0.018(7.32) -0.026(-10.7) LightMnfc 0.114(50.1) -0.034(-15.1) HeavyMnfc -0.140(-57.8) -0.301(-124) Until_Cons 0.001(1.17) -0.012(-12.3) TransComm 0.007(5.88) 0.054(43.6) OthServices

4.2.3 IMPACT OF BRICS ALLIANCE ON SECTORAL IMPORTS AND EXPORTS OF PAKISTAN Table 4 summarizes the possible influence of BRICS alliances on sectoral exports and imports of Pakistan. Mostly all the sectors show a negative response with respect to both exports and imports. The overall influence of tariff barriers reduction among BRICS on Pakistan exports and imports is negative. Similarly, in response to the reduction in non-tariff barriers among BRICS members; Pakistan shows deteriorations in most of the import and export sectors as shown in columns 4 & 5.

Table 4: Impact of BRICS Alliance on Sectoral Imports and Exports of Pakistan % Change in SECTORAL EXPORTS AND IMPORTS SIM1 [BRICS (5)] SIM2 [BRICS (5)] Sectors Exports Imports Exports Imports Grain Crops 0.0889 -2.80 -0.468 -0.37 VegFruit -1.21 -0.325 -2.24 -0.921 MeatLstk 2.50 -0.056 6.46 0.487 Extraction 1.56 -0.121 -12.6 -0.645 ProcFood -0.408 0.002 -0.963 -0.042 TextWapp -0.040 -1.44 1.06 -3.47 LightMnfc -0.099 -0.712 -1.13 -1.12 HeavyMnfc -0.080 -0.377 -1.54 -0.51 Until_Cons 0.256 -0273 -0.122 -0.174 TransComm 0.388 -0.174 0.183 0.024 OthServices 0.233 -0.059 -0.274 0.321

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Nasrullah, Muhammad Aamir Khan, Muhammad Iftikhar ul Husnain

4.2.4 IMPACT OF BRICS ALLIANCE ON REAL RETURNS OF PAKISTANI FACTORS The most recent Pakistani Social Accounting Matrix (SAM, 2013) bring-up several extensions of capital, land, and labor to examine the possible influence of the BRICS alliance on Pakistan. The SAM made 27 categories of capital, land, and labor to examine the specific categorized influence of tariff reduction among BRICS members. Table 5 represents the influence of BRICS member’s coalition on factor rewards of Pakistan across different categories. All the categories expect Natural resources and livestock shows very rapid decline in response to BRICS member’s tariffs line reduction as shown in column2. In the same way all types of labors categories, land categories, and capital categories show an immediate deterioration in response to the presumed alliances.

Furthermore, mix responses of Pakistani Real Returns of Factors (RRF) in response to NTB reduction among BRICS members can be seen in column 4.

Table 5: Impact of BRICS Alliance on Pakistani Real Returns of Factors % Change in Real Returns of Factors hhldincome[*Pakistan]

Explaination

SIM1 [BRICS (5)] -0.119 -0.04 -0.059 -0.063 1.13 1.13 -0.056 -0.02 0.077 -0.043 -0.059 -0.081 -0.091 -0.44 -0.092 -0.042

SIM2 [BRICS (5)] 0.267 -0.056 -0.105 -0.124 -1.52 -1.52 0.274 0.339 0.09 -0.11 -0.105 0.329 0.313 -0.256 0.312 0.393

1 Land 2 Unsklab 3 Sklab 4 capital 5 NatlRes 6 NATRES 7 LAB_S 8 LAB_M 9 LAB_W 10 LAB_L 11 LAB_H 12 LN_SM1 13 LN_SM2 14 LN_SM3 15 LN_MD1 16 LN_MD2

Land Unskilled labor Skilled labor Capital Natural resources Natural resources2 Small labor Medium labor Worker labor Labor low Labor high Land small1 Land small2 Land small3 Land medium1 Land medium2

17 LN_MD3

Land medium3

-0.246

0.061

18 LN_LG1

Land long1

-0.038

0.399

19 LN_LG2

Land long2

-0.036

0.403

20 LN_LG3

Land long3

-0.209

0.122

21 LN_DR1

Land dry1

-0.065

0.357

22 LN_DR2

Land dry2

-0.036

0.403

23 LN_DR3

Land dry3

-0.355

-0.116

24 FLIV

Livestock

0.12

0.385

25 CAP_A

Agriculture capital

-0.032

0.378

26 CAP_F

Formal capital

-0.067

-0.149

27 CAP_I

Informal capital

-0.063

-0.131

4.2.5 IMPACT OF BRICS ALLIANCES ON HOUSEHOLD INCOMES OF PAKISTAN All the household types except the only medium rural farmer (quantile1) shows an immediate deterioration in response to BRICS member presumed alliance. Table 6 presents the likely impacts of BRICS member alliance on different types of households in Pakistan. *Corresponding author (Nasrullah). Email: nasrullah_shah@yahoo.com ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02K http://TUENGR.COM/V11/11A02K.pdf DOI: 10.14456/ITJEMAST.2020.31

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Table 6: Impact of BRICS Alliances on Household incomes of Pakistan.

Households types Hhldincome [*Pakistan] 1 MainHHLD 2 hhd_rs1 3 hhd_rs234 4 hhd_rm1 5 hhd_rm234 6 hhd_rl1 7 hhd_rl234 8 hhd_rw1 9 hhd_rw234 10 hhd_rn1 11 hhd_rn2 12 hhd_rn3 13 hhd_rn4 14 hhd_u1 15 hhd_u2 16 hhd_u3 17 hhd_u4

Explanation Main household Small Rural farmer (q1) Small Rural farmer (q234) Rural farmer + medium (q1) Rural farmer + medium (q234) Landless rural farmer (q1) Landless rural farmer (q234) Rural farm worker (q1) Rural farm worker (q234) Rural non-farm (1) Rural non-farm (q2) Rural non-farm (q3) Rural non-farm (q4) Urban (q1) Urban (q2) Urban (q3) Urban (q4)

Population (Million) 4193 15,565 208 2914 3348 7292 6333 8305 12,595 10,888 9088 6316 5930 8820 11,506 17,080

%Changes in Household’s Earnings SIM1 SIM2 [BRICS (5)] [BRICS (5)] -0.234 -0.466 -0.192 -0.25 -0.228 -0.178 0.235 -0.784 -0.203 -0.079 -0.188 -0.256 -0.226 -0.212 -0.093 -0.462 -0.153 -0.427 -0.209 -0.55 -0.223 -0.544 -0.233 -0.544 -0.246 -0.551 -0.199 -0.545 -0.223 -0.531 -0.235 -0.528 -0.25 -0.54

5. CONCLUSION This research examines the possible influence of BRICS member alliances on Pakistan; an extension form of the standard GTAP (MyGTAP) is employed in collaboration with household delegated model by using the most recent available SAM (2013) and observed the likely influence of tariff and non-tariff barriers reduction among BRICS members on distinctive types of households, factor wages, earnings distributions and GPD of Pakistan.

This study concluded the overall adverse impacts of the BRICS on Pakistan. These adverse effects are caused by the negative impacts of trade diversion on Pakistan as a non-member of the said BRICS. In response to tariff-lines reduction among BRICS members, Pakistan’s Real GDP, Imports, government income and tot (term of trade) deteriorate with immediate shocks of 0.012%, 0.374%, 2.98%, and 0.175% respectively. In the same way, in response to non-tariff barriers reduction, Pakistan’s Real GDP, Exports, Imports, government income and tot (term of trade) deteriorate with immediate shocks of 0.016%, 0.405%, 0.615%, 0.620%, and 0.164% respectively.

Similarly, the household level results also deteriorate with immediate shocks to BRICS alliance and all the 11 types of households faced decrease in their real wages in response to both tariff and non-tariff line reductions except medium-rural-farmer-(q1) with a slight increase of 0.23% to tarifflines reduction. Furthermore, Sectoral-Imports and Exports, RRF (real returns to factors) and Sectoral-production do also deteriorate in response to the presumed BRICS alliances. Finally, the current paper encourages further researchers to conduct studies on the said economic coalition i.e.

BRICS to further explore the possible implications on Pakistan by proposing Pakistan as a member of BRICS alliances. Secondly, further researchers should also study the likely spillover (direct and indirect) on other regions and economies of the world.

6. AVAILABILITY OF DATA AND MATERIAL Data can be made available by contacting the corresponding authors

7. REFERENCES Adams, R. M., Hurd, B. H., Lenhart, S., & Leary, N. (1998). Effects of global climate change on agriculture:

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an interpretative review. Climate research, 11(1), 19-30.

Ahmed, V., & O'Donoghue, C. (2008). Welfare impact of external balance in Pakistan: CGE-microsimulation analysis.

Armijo, L. E., & Roberts, C. (2014). The emerging powers and global governance: why the BRICS matter. Handbook of emerging economies, 503-520.

Armijo, L. E., & Roberts, C. (2014). The emerging powers and global governance: why the BRICS matter. Handbook of emerging economies, 503-520.

Aguiar, A., Narayanan, B., & McDougall, R. (2016). An overview of the GTAP 9 data base. Journal of Global Economic Analysis, 1(1), 181-208.

Bandara, J. S. (1991). Computable general equilibrium models for development policy analysis in LDCs. Journal of economic surveys, 5(1), 3-69.

Blake, A. (1998). Computable general equilibrium modelling and the evaluation of agricultural policy (Doctoral dissertation, University of Nottingham).

Butt, M. S., & Bandara, J. S. (2008). Trade liberalisation and regional disparity in Pakistan. Routledge.

Cheng, H. F., Gutierrez, M., Mahajan, A., Shachmurove, Y., & Shahrokhi, M. (2007). A future global economy to be built by BRICs. Global Finance Journal, 18(2), 143-156.

Cowell, F. (2011). Measuring inequality. Oxford University Press.

Cai, S., Zhang, Y., & Meng, B. (2015). Spillover effects of TTIP on BRICS economies: A dynamic GVC-based CGE model(No. 485). Institute of Developing Economies, Japan External Trade Organization (JETRO).

Das, G. G. (2012). Globalization, socio-institutional factors and North–South knowledge diffusion: Role of India and China as Southern growth progenitors. Technological Forecasting and Social Change, 79(4), 620-637.

Fedoseeva, S., & Zeidan, R. (2016). A dead-end tunnel or the light at the end of it: The role of BRICs in European exports. Economic Modelling, 59, 237-248.

Harrison, G. W., Humphrey, S. J., & Verschoor, A. (2009). Choice under uncertainty: evidence from Ethiopia, India and Uganda. The Economic Journal, 120(543), 80-104.

Kehoe, P. J., & Kehoe, T. J. (1994). A primer on static applied general equilibrium models. Federal Reserve Bank of Minneapolis Quarterly Review, 18(1), 2-16.

Khan, M. A., Saboor, A., & Mohsin, A. Q. (2015). Impact of agricultural trade liberalization on income inequality in Pakistan. Pakistan Journal of Agricultural Research, 28(1).

Khan, M. A., Zada, N., & Mukhopadhyay, K. (2018). Economic implications of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) on Pakistan: a CGE approach. Journal of Economic Structures, 7(1), 2.

Lemelin, A., Robichaud, V., & Decaluwé, B. (2013). Endogenous current account balances in a world CGE model with international financial assets. Economic Modelling, 32, 146-160.

Litchfield JA. (1999). Inequality: Methods and Tools. World Bank 4 Na, L., Minjun, S., & Wen, H. (2012). Impacts of the Euro sovereign debt crisis on global trade and economic growth: A General Equilibrium Analysis based on GTAP model.

O’Neill, J., Leme, P., Lawson, S., & Pearson, W. (2003). Dreaming with BRICs: the path to 2050. Goldman Sachs Global Economics Paper, 99.

Pereira, M. W. G., Teixeira, E. C., & Raszap-Skorbiansky, S. (2010). Impacts of the Doha round on Brazilian, Chinese and Indian agribusiness. China Economic Review, 21(2), 256-271. *Corresponding author (Nasrullah). Email: nasrullah_shah@yahoo.com ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02K http://TUENGR.COM/V11/11A02K.pdf DOI: 10.14456/ITJEMAST.2020.31

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Savard, L. (2003). Poverty and income distribution in a CGE-household micro-simulation model: topdown/bottom up approach.

Sandrey, R., & Jensen, H. G. (2008). China and New Zealand: an assessment of the recent FTA agreement (Vol. 5). tralac Working Paper.

Shaikh, F. M., Syed, A. A. S. G., Shah, H., & Shah, A. A. (2012). Observing Impact of SAFTA on Pakistan's Economy by Using CGE Model. Pakistan Journal of Commerce & Social Sciences, 6(1).

Sandrey, R., & Jensen, H. G. (2013). A fresh look at a Preferential Trade Agreement among the BRICS. Tralac.

Trade Brief No. S13TB10, 2013.

Samake, I., & Yang, Y. (2014). Low-income countriesâ&#x20AC;&#x2122; linkages to BRICS: Are there growth spillovers?. Journal of Asian Economics, 30, 1-14 Wilson, D., & Purushothaman, R. (2003). Dreaming with BRICs: The path to 2050. Global economics paper, (99), 1.

Winters, L. A., McCulloch, N., & McKay, A. (2004). Trade liberalization and poverty: the evidence so far. Journal of economic literature, 42(1), 72-115 Wu, L., Yin, X., Li, C., Qian, H., Chen, T., & Tang, W. (2013). Trade and investment among BRICS: analysis of impact of tariff reduction and trade facilitation based on dynamic global CGE model. In 16th Annual Conference on Global Economic Analysis..

Walmsley, T., & Minor, P. (2013). MyGTAP model: a model for employing data from the MyGTAP data applicationâ&#x20AC;&#x201D;multiple households, Split Factors, Remittances, Foreign Aid and Transfers. Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.

Nasrullah is a graducate student at the Department of Management Sciences, Comsats University, Islamabad 45550, Pakistan. He is interested in Economics and Management Sciences.

Dr. Muhammad Aamir Khan is an Assistant Professor at Department of Economics, COMSATS University, Islamabad.

He is interested in Trade liberalization, Poverty and Income Inequality, Agriculture Economics

Dr. Muhammad Iftikhar ul Husnain is an Assistant Professor at the Department of Management Sciences, Comsats University Islamabad, Pakistan. Dr. Muhammad Iftikhar ul Husnain has a PhD in Economics from Federal Urdu University of Arts, Science and Technology, Islamabad, Pakistan. He did a Post-doc at University of Glasgow UK. His research is related to Economic and Environmnet, Climate change, and Fiscal policy, Health, Development, and Demography.

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Nasrullah, Muhammad Aamir Khan, Muhammad Iftikhar ul Husnain

©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies

International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies http://TuEngr.com

PAPER ID: 11A02L

METHOD DEVELOPMENT TO SUPPORT THE ENTERPRISE ECONOMIC SECURITY BY USING MATHEMATICAL MODELING TOOLS Eduard Korovin a*, Irina Smirnova a, Milana Sultygova a, b Alim Mazhazhikhov b, Eldar Miskhozhev a

Department of Economics and Law, Saint-Petersburg University of State Fire Service of EMERCOM of Russia, RUSSIA. b Department of Management and Economics, Saint-Petersburg University of State Fire Service of EMERCOM of Russia, RUSSIA. ARTICLEINFO

A B S T RA C T

Article history: Received 03 May 2019 Received in revised form 21 October 2019 Accepted 05 November 2019 Available online 15 November 2019

For any type of entrepreneurial activity, a characteristic feature is a decision-making in conditions of uncertainty or incompleteness of information. The solution to this scientific problem is concretized in the form of a set of interrelated goals. Development of the structure of the information base and organizational support necessary for the implementation of investment analysis. Development and adaptation of methods and algorithms for finding rational solutions to specific problems to improve the economic security of the enterprise. The rationale and systematization of the applied mathematical methods for the qualitative and quantitative assessment of risk, profitability and economic stability of an enterprise operating in conditions of uncertainty. The study of the impact of real-life risks on the economic performance of the enterprise: costs, profits, economic security. Development of a comprehensive risk assessment methodology with the determination of areas of acceptable risk values with appropriate indicators of profitability and economic stability. Building a system of models for assessing the economic reliability of a textile enterprise taking into account risk. Development of a risk management model taking into account economic reliability and testing of risk management techniques in a market economy for real textile production, as well as testing its performance and assessing the degree of its reliability in a production environment.

Keywords:

Project risk threshold; Risk assessment; Acceptable risks; Economic performance; Uncertainty management; Project risk monitoring.

Disciplinary: Economic & Management Sciences. ©2020 INT TRANS J ENG MANAG SCI TECH.

1. INTRODUCTION The task of economic revival of the industrial potential of Russia makes very stringent requirements for the organization of enterprises, the direction and speed of their structural and *Corresponding author (Eduard Korovin). Tel: +7-911-8379688. Email: korovin@mail.ru ©2020 International Transaction

Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 10 No.11 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02LA http://TUENGR.COM/V10A/11A02L.pdf DOI: 10.14456/ITJEMAST.2020.32

1

institutional transformations; improving the accounting system and minimizing risks to improve the economic security of industrial and commercial activities.

As a result, the whole range of issues related to the organization of economically safe management of industrial enterprises becomes vital for them, since it is precisely such a strategic approach that allows enterprises to solve the main problem of survival at this stage of economic development.

The solution of strategic and investment problems is largely difficult due to the uncertainty of the conditions for the functioning of the enterprise. Uncertainty is an integral part of the processes of making organizational and managerial decisions and has its expression in the concept of risk.

Moreover, the importance of taking into account risk factors is directly proportional to the level of decisions made.

As a theoretical basis and practical decision-making tools in such situations, economic-mathematical models and the predictive calculations performed on them are used. The main difficulty in the application of rich scientific experience lies in the fact that in real business conditions, situations with the same internal and external parameters are extremely rare. Therefore, difficulties mainly arise when modeling a situation adequate to the real one, which is possible only if there is a large amount of statistical data.

The solution to investment problems depends on the degree of uncertainty of the conditions of the enterprise. Uncertainty is an integral part of organizational and managerial decision-making processes and has its expression in the concept of risk, therefore risk assessment and accounting become necessary elements of general economic research and practical activities of an enterprise.

In numerous scientific papers, as a rule, the practical basis of the system of quantitative assessments of entrepreneurial risk was not considered. The main reason for this may be that general methodological approaches to the quantitative assessment of risk and, in particular, the solution of problems of a comparative assessment and the final choice of solutions are associated with the use of a complex mathematical apparatus. At the same time, the need for practical use of the accumulated scientific experience in this area is very relevant in the process of forming a market economy.

Currently, more and more attention of practitioners on the issues of sustainability of the enterprise from the perspective of risks having different nature of the occurrence. From the above arguments, it follows that there are a number of practically significant and insufficiently developed problems that we present as the goals and objectives of this study.

Consequently, in the course of managing targeted processes, an inevitable collision occurs with one degree or another of uncertainty, i.e. with scientific, technical, and production and technological risks that affect business risks (Zubova, et al, 2018).

Risks are an inevitable reality and an immanent sign of the process of formation, functioning, and development of enterprises, however, there is still no unambiguous understanding of the economic nature of this category (Kolesnik, et al, 2018). The reason for this is the complex nature of risk, as a result of which there are various definitions of the concept under study (Kuzmin, et al, 2018). In many cases, the nature of the risk is not determined directly, but indirectly, for example, through its consequences (loss, threat, damage, etc.) or probability, which is the degree to which a particular event can occur in specific conditions, and not actually risk.

In conditions of scientific uncertainty (the unknown is the result of the consequences of scientific

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Eduard Korovin, Irina Smirnova, Milana Sultygova, Alim Mazhazhikhov, Eldar Miskhozhev

processes), there are risks of not achieving the required quality of scientific products or achieving them with a given level of quality, but with an excess of time costs (Batkovskiy, et al, 2015).

Under conditions of production uncertainty (the unknown is the result of the consequences of production processes), there are risks of not achieving the required quality or achieving it with a given level of quality, but with an excess of time costs (Vikulov, 2004). To date, there is no sufficiently adapted and to some extent universal method for assessing economic risks (Gagiyan, et al, 2016). The absence of such a method does not allow determining the stability of enterprises in the face of economic risks.

2. MATERIALS AND METHODS A method to help identify the effect of exogenous variables on results is sensitivity analysis.

Sensitivity analysis refers to a combination of quite different approaches and possibilities for the practical application of methods. The most commonly used sensitivity analysis in three forms. The first of them consists of determining the stability (reliability) of the solution used at the enterpriseâ&#x20AC;&#x2122;s investment planning model, that is, the analysis establishes how much one or several initial values can be changed, provided that the resulting solution remains unchanged. A much larger amount of risk information is represented by the second form of sensitivity analysis, which is based on the establishment of critical value. The result of the analysis is the identification of acceptable sizes for varying the values of one or many variables, provided that the result does not exceed the established critical value. The third form, in which sensitivity analysis is applied in practice, provides information on how the value of the result will change if one or many of the initial variables change by a given value.

Using sensitivity analysis, you can determine the deviation limits of any indicator of the project from the initial value, within which the investor's attitude to the project does not change. Computer programs allow you to simulate the results, changing the values of variables within certain limits and determining the impact of these changes on the project. When analyzing sensitivity, it is also possible to establish a critical point for each factor, going beyond which can change the decision to accept or reject the project. The relative deviation of the calculated indicator from its initial value gives an idea of the "safety limit" for this indicator.

In the process of project implementation, almost all initial values of indicators can deviate from their forecast values. Defining critical values that vanish. The calculation results give a criterion for assessing sensitivity. The value of each factor is found by solving the equation. The safety limit is the percentage deviation of the obtained value of each factor from its actual value, therefore, the greater the value of the calculated safety limit, the greater the deviation of this factor from its actual value. A slightly different approach is used in calculating risk indicators. Based on linear interpolation, the discount rate is determined.

There proposed a method for monitoring the risks of space projects by creating an information base consisting of five stages of data shown in Figure 1.

*Corresponding author (Eduard Korovin). Tel: +7-911-8379688. Email: korovin@mail.ru Š2020 International Transaction

Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 10 No.11 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02LA http://TUENGR.COM/V10A/11A02L.pdf DOI: 10.14456/ITJEMAST.2020.32

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Figure 1: Information base for monitoring project risks title.

In general, the need has arisen for posing key problematic issues, the solution of which will allow us to form the preferred ways to comprehensively optimize the use of funds allocated to improve the economic security of enterprises based on the levels of risk tolerance of economic entities.

The concept of assessing economic risks should be carried out in order to determine the threshold values of the economic security of economic entities.

3. RESULT AND DISCUSSION The proposed methodology for determining the maximum allowable risk cost, risk tolerance indicator and risk indicator of a specific organization, respectively (See Table I).

Table 1: New classification of risk tolerance states taking into account temporal and spatial coordinates.

Spheres of space Objectively Existing Reality (OCP) Information-driven reality (IOR)

Decision Life Cycle Stages Past Present Future (Rust.experience OSR) (Rust.fact OSR) (Rust.planOSR) (Rust.experience IOR) (Rust.fact IOR) (Rust.planIOR)

The final expert assessment of the probability of occurrence of risk at the macro level was 0.424; at industry level 0.548. According to the conditions of the adopted calculation algorithm, the risk indicator ranges from 0 to 1.

Analyzing the data obtained, it should be noted that the trend in the development of macroeconomic factors in the industry is such that the most significant of them is government regulation of monetary policy and the economy as a whole.

Another risk - the economic activity of enterprises was considered as complex, the constituent elements of which are financial and commercial risks. The generalized indicator for these positions is 0.333, which indicates an average level of risk. This level of the indicator is confirmed by the fact that in the context of financial-industrial groups, enterprises have great potential for using the reserves of

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Eduard Korovin, Irina Smirnova, Milana Sultygova, Alim Mazhazhikhov, Eldar Miskhozhev

cooperation. Also, the possibilities of self-financing of private entrepreneurs are expanding due to increased capacity utilization, working capital savings, and consolidation of participants' assets.

The results of the expert assessment are the first assessment stage of the IP and provide an opportunity to analyze the implementation of the innovation program and predict risk management measures.

Implanting all forms of innovations as entrepreneurs, business, technological or technical solutions, financing in various forms and terms, we set ourselves the task of developing an algorithm for calculating quantitative and qualitative indicators, the totality of which corresponds to the decision of the concept of making a managerial decision: “Given the pace set by the competitive environment growth, the effectiveness of capital investments must match their risk”.

Therefore, the following indicators were considered in the work: • the net present value of the innovation program (NTS); • payback period of the project with and without discounting cash flows; • a simple rate of return (NDP), calculated as the ratio of net profit to total cost during the forecast interval, that is, the period when the planned capacity has already been reached, the repayment of external debt continues; • internal rate of return (VNR); • return on investment (RI).

The first calculation option for the case when financing is carried out at the expense of equity capital and part of the redistributed profit is very rare in the practice of enterprises and is theoretical.

Financing using borrowed capital due to tax protection creates the effect of financial leverage, increasing the return on equity to the enterprise.

The calculation of the TTS, taking into account inflation and risk components, is currently the most developed, since the calculation of the discount rate R takes into account all the effects of borrowed capital. The next most important indicator, taking into account the risks of inflow and outflow of capital investments in their monetary form, is Hungary. The semantic value of this indicator lies in the fact that, at the calculated rate of VNR, the sum of the discounted outflows of finance is equal to the sum of the discounted outflows of finance.

The interpretation meaning of VNR can be represented by the following options: • the value of VNR determines the maximum rate of payment for credit resources, at which the IP remains break-even; • the value of VNR is the lower limit on the profitability of investment; • the discount rate is proportional to the risks taken into account when analyzing the IP, but VNR does not have to be negative.

Given the existing difference between the rates of attraction and placement of funds, we can conclude that: 1. With BHP, the placement rate is lower, taking into account the existing risk, it is unprofitable to invest in the project, as you can simply put them in the bank.

2. When VNR is higher than the placement rate but lower than the current rate of attracting loans, the project can be carried out but provided that the cost of ownership or the weighted value of all the already raised funds of the enterprise is less than VNR. That is, this project should focus only on the resources of the enterprise. *Corresponding author (Eduard Korovin). Tel: +7-911-8379688. Email: korovin@mail.ru ©2020 International Transaction

Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 10 No.11 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02LA http://TUENGR.COM/V10A/11A02L.pdf DOI: 10.14456/ITJEMAST.2020.32

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3. When VNR has a higher interest rate, it makes sense to use borrowed funds to finance the project, if the company does not have cheaper own funds.

Two methods for calculating MB HP: 1. discounting cash outflows at a risk-free rate; 2. compounding inflows at a real reinvestment rate.

The rate of VNR does not limit the cost of attracted financial resources and does not take into account the discount rate of risk factors. For it cannot be argued that the cost of loans is limited to 0.3 since the TTS is again positive and at a cost of more than 0.74, at the same time, TTS <0 when the cost of resources is up to 0.01.

It is these shortcomings that are eliminated when using the indicators of the MVNR and SDPM and the corresponding modifications of the formulas for calculating the NWT. One of the main factors determining the value of the project’s NTS is the scale of activity, which is manifested in the “physical” volumes of investments, production or sales. This implies a natural restriction on the use of this method for comparing projects that differ in this characteristic: a higher value of the NWT will not always correspond to a more effective investment option.

In such cases, it is recommended to use the return on investment (RI) indicator, also called the net present value coefficient or profitability index. This indicator is the ratio of the net present value of the project to the discounted value of all costs of its implementation.

It is advisable to evaluate risk tolerance taking into account changes in not only temporal but also spatial coordinates to objectively existing and information-driven reality (See Table II).

The transition from one risk tolerance (Rust) to another risk tolerance (Rust1) is the movement of the subject in conditions of uncertainty over time, that is, risk. Whether the subject will achieve the desired result (set goal or task) is the conditions of uncertainty, pushing the subject to a new risk, motivating (or forced as no alternative) to a new goal in the form of a new state of risk tolerance for achieving a new level of quality of this or that matter.

Developing a business plan in the areas of technical, technological and organizational-economic efficiency, a game theory model was used to solve the problem of choosing forms of a cooperation agreement with suppliers of raw materials and consumers of finished products. By concluding contractual agreements for a certain period, none of the participants is immune from market uncertainties and the behavior of colleagues under the agreement. A game matrix is compiled, with the help of which you can analyze the issue of decisions taken by each side, where j is the index of the participant in the contract agreement. There are two “players” in this matrix. The first is the analyzed enterprise, the second player is the remaining enterprises entering into contractual relations.

This system has certain reliability and should to some extent protect itself from possible violations of contracts. These opportunities are partially or fully reflected in the “gains”, that is, in the values of those profits and losses that are recorded in the squares of the income and risk matrices. All the "gains" Wj 'should be considered as the value of the additional costs.

If we accept the condition that wages are a fixed amount, determined by the normative labor costs and its price, then Wj 'can be exactly correlated with the profit indicator CC. Obviously, with this formation of the contract or collective transaction, the value of Wj 'is distributed over all production units. The question arises of how to find the best solution for the behavior of participants in a collective agreement, obliged to coordinate actions in a conflict of interest.

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Eduard Korovin, Irina Smirnova, Milana Sultygova, Alim Mazhazhikhov, Eldar Miskhozhev

Based on the uncertain behavior of counterparties, we also set the game matrix in the form of a risk matrix or a matrix of missed opportunities due to the lack of information about the state of the market, since the risk is the difference. The selection of the best enterprise strategy was carried out using the following criteria: Maximax, Wald, Savage, and Hurwitz. The use of each of them is determined both by the character of the “player” and by the situation on the market.

Table 2: Algorithm for determining the marginal cost of risk and marginal risk tolerance and marginal risk level of an economic entity.

Name of indicator Extreme Risk Resistance Condition Risk Limit Condition Risk tolerance indicator (as the ratio of equity to cost of risk) and the condition for equality or excess marginal risk tolerance Risk level indicator (as the ratio of risk cost to equity) and the condition for not exceeding the maximum risk level

Calculation * (Source of information) line6 1 line7 line6 line9  1 line7

Formula

line8 

P

ust pred

Yr pred =

line11 

line6 1 line10

Рust =

line12 

line10 1 line6

Yр =

=

СК dop =1 СР pred

СР pred =1(or 100%) СКdop

СК dop СК dop  1 СР CР + I r

CР + I r СР  1 СКdop СКdop

The next step is to use the apparatus of variation statistics for calculating the risk of commercial offers for two payment options for the processing of tolling raw materials.

Then we applied the sensitivity analysis of the investment project for the implementation of several exogenous factors. The essence of this examination is to determine how much you can change one or more of the studied factors so that the resulting optimal solution remains unchanged. Or it is possible to identify the limiting sizes of variation of the values of variables when the result does not go beyond the critical parameters. Using computer programs for EXCEL simulation of the result, we obtained the point where the TTS turned to zero when the initial technical, technological or economic parameters reached the safety limit threshold.

If the analyst believes that all factors are within acceptable safety limits, then this project is considered economically safe. Sensitivity analysis allows you to determine the risk content of each business project when implementing various innovations. Each of the analyzed technological chains changes the indicators of material costs, the price of the product, the volume of planned sales, the salary of workers. Having estimated the mathematical expectation (MOj) of each project, the margin of its stability (Znpi) by the ith factor variable, the risk factor of investments (B) and the risk parameter (R) were determined, through which the risk tolerance of the projects (RS) was calculated and the most stable negative impacts.

The effect of operating leverage is an indicator of profit growth for each percentage increase in sales revenue. Its relationship with fixed costs is directly proportional, and when “passing” through the threshold of profitability, the impact of the operating lever falls. Characterizing the threshold of profitability, it should be noted that the higher it is, the more difficult it is to “step over” it and vice versa. A decrease in the value of the indicator is achieved either by increasing the gross margin by increasing the price of goods, or by reducing variable costs, or by increasing the physical volume of sales. In a competitive environment, raising prices for goods sold is always acceptable, therefore, the best way out is to establish links between the producer of products and trade organizations.

*Corresponding author (Eduard Korovin). Tel: +7-911-8379688. Email: korovin@mail.ru ©2020 International Transaction

Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 10 No.11 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02LA http://TUENGR.COM/V10A/11A02L.pdf DOI: 10.14456/ITJEMAST.2020.32

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Figure 2: The results of assessing the enterprise risk tolerance with different alternatives in conjunction with a possible profit Using the algorithms from Table 2, determined the risk tolerance zones of enterprise in targeted processes. The results of assessing the risk tolerance by five expert alternatives are presented in Figure 2, where experts offered their alternatives taking into account the criterion of maximum possible risk tolerance, trying not to fall into the zone of maximum permissible risk tolerance, which is characterized by greater uncertainty and high risks and requiring determination of the corresponding value level of probability of their suppression.

4. CONCLUSION The results obtained made it possible to form a mechanism for methodological support of economic security for the development and functioning of enterprises of various ownership forms taking into account risk, as well as to develop appropriate measures and recommendations for ensuring economic reliability, and through it, the prerequisites for economic growth Based on market principles, a risk classifier has been developed. Hierarchies, groups, subgroups are identified for each level and type of risk, which allows to unify management tasks and identify areas of risk influence by the main parameters: economic activity of the enterprise profitability, economic security, and business activity The conditions for the occurrence of risks in investment projects (innovations) implemented by industrial enterprises are identified and determined. The boundary conditions for the minimum risks of a business entity are established taking into account the internal structure of a textile enterprise.

The zones of the probability of bankruptcy of a manufacturing and commercial textile company during the implementation of the project are established. The dependence of the nominal rate of return on the real rate of return, risk, and inflation, taking into account the discount rate, is determined.

An economic and mathematical model for assessing the risk of a project has been developed with the establishment of acceptable boundary values for the degree of risk, obtaining a threshold level of profitability and the necessary degree of economic stability (the boundary risk conditions range from 0.25 to 0.50% of the total risk indicator).

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Eduard Korovin, Irina Smirnova, Milana Sultygova, Alim Mazhazhikhov, Eldar Miskhozhev

5. AVAILABILITY OF DATA AND MATERIAL Data can be made available by contacting the corresponding author.

6. REFERENCES Batkovskiy A. M., Semenova E. G., Trofimets E. N., Trofimets V. Ya., Fomina A. V. (2017). Modified method for sensitivity analysis of investment projects efficiency criteria. Journal of Applied Economic Sciences. XII, 4(50), 116-1131.

Batkovskiy, A. M., Konovalova, A. V., Semenova, E. G., Trofimets, V. Ya., Fomina, A. V. (2015). Risks of Development and Implementation of Innovative Projects. Mediterranean Journal of Social Sciences.

6(4-4), 243-253 Gagiyan, M. G., Saprunov, G. S., Frantsev, R. K. (2016). Aspects of R&D management in the rocket and space industry. Innovative Economics and Management. 255-256.

Kolesnik, A. V., Zubova, L. V., Nikolaev, S. P. (2018). Features of Scientific and Technical Risks in the Development of Rocket and Space Technology. Science and Society. 2, 37-45.

Korovin, E. V., Zubova, L. V. (2019). Ways to increase the economic security of the state by reducing the risk level of business entities in the conditions of functioning of the global navigation satellite system GLONASS. Strategies and tools for managing the economy: sectoral and regional aspects. 137-144.

Kuzmin, V. N., Sherstyuk, A. V., Zubova, L. V. (2018). Model Of Administration Managerial Decisions Based On Estimation Of Risk-Stability Of Enterprises. 8th The International Conference “Social Science and Humanity”. London. 29-36.

Medvedchikov, D. A. (1999). Development of organizational and economic methods for managing the risks of space activities based on insurance coverage for projects of enterprises in the rocket and space industry. 270-274.

Vikulov, S. F. (2004). The development of military-economic practice and science at the present stage.

Bulletin of VFEU. 75-86.

Zubova, L. V., Gotskaya, N. R., Davydyants, D. Е., Karlik, A. E., Petrov, D. M. (2018). Comprehensive Value Of Enterprise Solutions And Algorithm Of Risk Level Assessment. Technical Sciences. 3, 111-121.

Dr.Eduard Korovin is an Associated Professor at Saint-Petersburg University of State Fire Service of EMERCOM of Russia. He earned his Doctor of Economic Sciences. His research focuses on Solutions of Investment Problems Depends on the Degree of Uncertainty of the Conditions of the Enterprise.

Professor Dr.Irina Smirnova is Professor at Saint-Petersburg University of State Fire Service of EMERCOM of Russia. She got a Doctor of Economic Sciences. Her research focuses on Solutions of Investment Problems Depends on the Degree of Uncertainty of the Conditions of the Enterprise.

Milana Sultygova is an Associated Professor at Saint-Petersburg University of State Fire Service of EMERCOM of Russia. She is a Candidate of Economics Sciences Her research focuses on Solution of Investment Problems Depends on the Degree of Uncertainty of the Conditions of the Enterprise.

Alim Mazhazhikhov is an Associate Professor, Saint-Petersburg University of State Fire Service of EMERCOM of Russia. He is a Candidate of Economics Sciences, His research focuses on Solutions of Investment Problems depends on the Degree of Uncertainty of the Conditions of the Enterprise.

Dr.Eldar Miskhozhev is an Associate Professor at Saint-Petersburg University of State Fire Service of EMERCOM of Russia. He has a Doctor of Economic Sciences degree. His research focuses on Solutions of Investment Problems Depends on the Degree of Uncertainty of the Conditions of the Enterprise.

*Corresponding author (Eduard Korovin). Tel: +7-911-8379688. Email: korovin@mail.ru ©2020 International Transaction

Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 10 No.11 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02LA http://TUENGR.COM/V10A/11A02L.pdf DOI: 10.14456/ITJEMAST.2020.32

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©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies

International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies http://TuEngr.com

PAPER ID: 11A02M

ORGANIZATIONAL CYNICISM AND EMPLOYEE PERFORMANCE: THE MODERATING EFFECT OF OCCUPATIONAL SELF-EFFICACY IN PAKISTAN Komal Khalid

a

a

Department of Human Resource Management, Faculty of Economics and Administration, King Abdulaziz University, Jeddah, 21577, SAUDI ARABIA. ARTICLEINFO

A B S T RA C T

Article history: Received 12 July 2019 Received in revised form 20 September 2019 Accepted 01 October 2019 Available online 15 November 2019

This research analyzes the influence of employee’s occupational self-efficacy on the relationship of forms of organizational cynicism and employee performance (Task/Contextual) in Pakistan. The finding indicates that in both sectors occupational self-efficacy had a significant impact on the relationships between organizational cynicism (Cognitive/Affective/Behavioral) and employee performance. The study concluded that in manufacturing sector occupational self-efficacy strongly moderate the relationship between cognitive cynicism and employee task performance while within service sector occupational self-efficacy strongly moderate the relationship between both cognitive and behavioral cynicism and employee task performance. The study provides evidence that in the manufacturing sector occupational self-efficacy and forms of organizational cynicism have a moderate influence on employee contextual performance while within service sector occupational self-efficacy has strongly moderated the relationship between behavioral cynicism and employee contextual performance. The findings provide better understanding to the practitioners and policymakers regarding existence of these negative behaviors and its implications.

Keywords: Cognitive cynicism; Affective cynicism; Behavioral cynicism; Occupational self-efficacy; Employee task performance; Employee contextual performance.

Disciplinary: Management Sciences (HRM) and Statistics. ©2020 INT TRANS J ENG MANAG SCI TECH.

1. INTRODUCTION In this hyper turbulent environment, gaining competitive advantage for the organizations is very critical especially through human resources. Organizations in developing countries like Pakistan and Bangladesh because of this high pace of change in technology, workforce diversity and globalization are getting affected in all areas (Khan et al., 2014). Countries are facing severe financial, economic and structural issues, resulting in organizations making policies and procedures that are flexible in *Corresponding author (Komal Khalid). Email: kmuddassar@kau.edu.sa. ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.02 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02M http://TUENGR.COM/V10A/11A02M.pdf DOI: 10.14456/ITJEMAST.2020.33

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nature and specific to organizational survival (Markovic, 2008). In this scenario retaining high performing employees and enhancing their work passion are the biggest challenges for the organizations. For that organizations have to not only fulfill the economic needs of their employees but also socioemotional needs, such as trust, sense of fairness and respect (Roberts & Zigarmi, 2014).

For decades, researchers tried to understand the influence of employee attitudes and behaviors that are potentially beneficial for organizational performance and success. However, in current scenarios, they are more concerned for employee’s attitudes that could destructive effects on organizations. One of these negative attitudes is organizational cynicism (Dean et al., 1998). It occurs when employees believe that organizations are not reliable or cannot be trusted (Abraham, 2000).

Dean et al. (1998) describe three basic dimensions of organizational cynicism (i.e. cognitive, affective and behavioral). Cognitive dimension belief that organizations lack integrity. Affective cynicism is the emotional reaction towards the organization, including irritation, aggravation, anxiety, and tension. Whereas behavioral cynicism refers to negative behaviors towards the organization, including criticism on the organization, sarcastic humor, negative predictions regarding organizational practices and its future.

Higher organizational cynicism (OC) condition where employees are distrustful of management’s motives, results in reduced employee performance (Brown et al., 2018). Therefore, this study explores the relationship between OC and its influence on employee job performance.

With the changing individual and organizational priorities, the employer-employee relationship has also changed. They no longer want to have long-term relationships with the organization, they want it to be based on exchange, fairness, trust, and equity (Rousseau, 2001). When organization is not satisfying its obligations it results, in feeling of frustration commonly referred to as OC (Razzaghian & Ghani, 2015; Sajid & Nasir, 2013).

Occupational self-efficacy (OSE) is considered an employee’s belief in his abilities that he can carry out behaviors successfully, necessary to generate specific outcomes perform his job (Bandura, 2012). One of the important aspects of occupational self-efficacy is its influence on employee job performance (Tzur et al., 2016). Occupational self-efficacy can positively and negatively relate to job performance ( Schmidt & DeShon, 2010), depending upon organizational conditions (Vancouver et al., 2008) and individual perceptions about organizational practice (Schmidt & DeShon, 2009).

To analyze the influence of forms of OC on job performance in the manufacturing and services sectors of Pakistan, this study differentiates between OC (Cognitive/Affective/Behavioral), in relation to employee’s occupational self-efficacy (OSE) and job performance (Task/Contextual).

The model of the study proposes that OSE affect an employee’s job performance by working as a condition for predicting OC and job performance relationship. Employees who perceive cynicism in their organizations are less likely to achieve their performance goals and their performance can deteriorate further if they believe they are not capable to achieve their tasks. The employee stops taking challenging tasks and giving their potential if they feel that the organization says one thing and practice another and tasks given exceed their work capabilities (Alessandri et al., 2015). Employees with high OSE would not reduce their work efforts even in difficult work situations. They can develop and execute effective plan of actions to handle and control these difficult tasks and context related situations in the workplace (Bandura, 2012). Thus, an adequate level of OSE is important to

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reduce the negative consequence of OC on job performance.

This study explores the moderating effect of OSE on the OC-job performance relationship, however, several research studies investigate the moderating effect of OSE to different organizational outcomes. For example, OSE moderates the negative job insecurity-performance relationship (Konig et al., 2010), it also buffers the link between low job control and the emotional exhaustion in healthcare (Pisanti et al., 2015), and employees having OSE react less negatively to work overload in demanding work contexts (Consiglio et al., 2016).

This study analyzes the employee’s job performance changes via forms of OC moderated by OSE. So far, studies in the field of OSE and performance mostly analyze its influence in the service sector but this research combine with manufacturing organizations of Pakistan, because both sectors play important roles in revenue generation for Pakistan’s economy. It provides a comparative analysis regarding the OC-OSE-performance relationship for both sectors.

2. LITERATURE REVIEW 2.1 EMPLOYEE PERFORMANCE Job Performance is described as actions or behaviors that are related to organizational goals and objectives. It includes productive and counterproductive employee actions and behaviors that contribute to the achievement of organizational goals and objectives (Singh, 2016). Organ (1998) suggests that the phrase “Employee job performance” should be redefined in order to broaden its construct and include an extra-role dimension to it.

Employee performance is one of the most important organizational outcomes in work and organizational psychology (Diaz-Vilela et al., 2015). It has been distinguished as an important player in organizations for gaining superior productivity and competitive advantage (Singh, 2016).

Employee task (in the role) and contextual (extra-role) performance are identified as its basic two dimensions (Borman & Motowidlo, 1997). Employee task performance consists of practices that contribute to the technical core processes and maintenance activities in an organization. It can also be defined as employee efficacy to perform activities to attain organizational goals which include dealing with subordinates related issues and product’s production and distribution-related services.

Employee contextual performance consists of activities that make contributions to the organizational environment and culture which influences others to perform organizational tasks. It encompasses resolving conflict and inspiring interpersonal cooperation and trust among employees (Cetin & Askun, 2018). Borman & Motowidlo (1997) suggested contextual performance classification, which includes actively enduring extra efforts to complete their own tasks, taking tasks initiatives that are related to their job, collaborating and accommodating subordinates and coworkers, complying with organizational rules and regulations and lastly fostering organizational goals and objectives.

2.2 ORGANIZATIONAL CYNICISM Organizational cynicism (OC) could be defined as a behavior that is formed with the employee believes that the organizations act only to get their own gains, they are done by the selfish management and that these conditions would not change (Aslan & Eren, 2014). OC is different from other forms of cynicism that might exist in the workplace like change cynicism or job cynicism *Corresponding author (Komal Khalid). Email: kmuddassar@kau.edu.sa. ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.02 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02M http://TUENGR.COM/V10A/11A02M.pdf DOI: 10.14456/ITJEMAST.2020.33

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(Neves, 2012, Tariq and Amir; 2019). Change cynicism involves a doubtful view for a successful or effective organizational change and putting blame on the ones responsible for it (Wanous et al., 2000) whereas job cynicism or depersonalization is a dimension of burnout and is described as an employee’s distant attitude towards the job (Maslach et al., 2001).

OC is a 3D negative attitude that revolves around a belief that the organization is not fair (Dean et al., 1998). These dimensions include employee belief that organizations lack integrity (Cognitive), negative affect towards the organization (Affective) and employee tendencies to judgmental and critical behavior towards organization (Behavioral) (Ozler et al., 2011).

Cognitive organizational cynicism (CC) consists of the belief that the organizational practices lack honesty, justice, and sincerity and it cannot be trusted. Due to this belief, they expect that the organization would deceive them (Urbany, 2005). Affective organizational cynicism (AC) consists of strong emotional reactions towards the organization. It consists of emotional reactions such as shame, anxiety, anger, disrespect, disappointment, and boredom (Abraham, 2000; O'Leary, 2003; Roberts & Zigarmi, 2014). The most prominent dimension of OC is behavioral cynicism (BC), referring to an employee's negative tendency and mainly degrading attitudes towards the organization. It covers severe criticism for the organization such as verbal abuse, mocking, ridicule and condescension (Turner & Valentine, 2001). It could result in employee alienating with the organization (O’Brien et al., 2004).

2.3 PERFORMANCE-CYNICISM RELATIONSHIP OC among employees can increase negative outcomes at both individual and organizational levels. At an individual level, it can result in absenteeism, role overload frustration and at the organizational level, it can reduce employee performance and enhance job turnover and inter-organizational employee conflicts (Abraham, 2000; Anderrsson, 1996).

Due to the defensive aspect of OC, when employees perceive that an organization lacks honesty and trustfulness and the organizational choices, they made are based on self-interest only then a sense of inequity and discrepancy is developed among employees (Neves, 2012). As an outcome, social exchanges within the organization are disturbed and the employee desire to respond to organizational goals decreases and employees reduce their efforts towards the attainment of organizational goals and objectives. Adams’s equity theory (Adams, 1965) is also based on input/output balance. It suggests that employees evaluate the organizational practices, policies, and decisions as fair could reevaluate their performance and then adjust their performance according to the perceptions of input from the organization (Bernerth et al., 2007).

Although the OC suggests that employees having cynical behavior towards organizations have bad job performance but this influence is inconsistent with the empirical support. Some researchers suggest the inverse relationship between OC and employee performance (Anderrsson, 1996; Neves, 2012), while some researchers suggest a positive association between variables (Brandes & Das, 2006). However, because most studies suggest a negative relationship between OC and employee performance so we expect that each form of the OC will have a negative influence on both forms of employee performance. The first hypothesis can be given as Hypothesis 1: OC has a negative relation with employee’s performance (Task and contextual).

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Hypothesis 1a: CC has a negative relation with employee’s performance (Task and contextual).

Hypothesis 1b: Affective cynicism has a negative relation with employee’s performance (Task and contextual).

Hypothesis 1c: Behavioral cynicism has a negative relation with employee’s performance (Task and contextual).

2.4 OCCUPATIONAL SELF-EFFICACY Self-efficacy theory is based on the person’s expectation of his ability to perform effectively (Bandura, 2012). It can also be viewed as an individual’s belief that they can manage and survive in difficult situations with their own efforts (Gregersen et al., 2014). It is a significant element of social cognitive theory, which has a major impact on human thoughts, motivation, and performance. It is related to what an individual believes that he can do with his skills rather than the skills one has (Stajkovic & Luthans, 1998). It is related to what an individual believes that he can do with his skills rather than the skills one has. It also assumes that people's perceptions of themselves are a key factor in exercising their control over their own work environment.

Occupational self-efficacy (OSE) refers to an employee’s belief that he/she can perform activities and behaviors related to their work activities (Schyns & Sczesny, 2010). It can also be defined as the capability an employee perceives regarding the ability to effectively complete the tasks required in his/her job (Rigotti et al., 2008). Employees having high OSE are often described by their determination and are motivated by their belief in future success (Breso et al., 2011).

Occupational self-efficacy (OSE) is a flexible personal characteristic, it can be improved or changed with the help of organizational and managerial support and can have a significant influence in managing employees (Maurer, 2001). It affects employee’s behaviors and actions through outcome expectations, their aspirations, perceptions of themselves and their working environment. Employees with high levels of OSE will not view organizational or work demands as threats/risks/problems, but as an opportunity/way to enhance and improve their skills/abilities, they will struggle hard to acquire high-quality outcomes and it will be seen as their own efforts (Prieto, 1997).

2.5 OCCUPATIONAL SELF-EFFICACY: EMPLOYEE PERFORMANCE RELATIONSHIP One of the most important and researched outcomes of OSE is its impact on employee performance (Task/contextual). The social cognitive theory describes that OSE increases goals, persistence, and effort, resulting in an increase in employee performance (Bandura, 2012).

A meta-analysis conducted by Stajkovic and Luthans (1998) provides strong evidence for the relationship between OSE and employee performance. Some current studies also provide evidence of a strong relationship between OSE and performance (Alessandri et al., 2015; Breso et al., 2011; Cetin & Askun, 2018). Employees with low levels of OSE have a mediocre view of their career progression and being disappointed with tasks, projects, and relationships they have low task and contextual performance (Shoss, 2017).

For the negative influence of OSE on performance, Stone (1994) found that employees with high OSE contribute fewer efforts towards the accomplishment of tasks and objectives as compared to employees with low OSE. Bandura & Jourden (1991) concluded that with induced high OSE, *Corresponding author (Komal Khalid). Email: kmuddassar@kau.edu.sa. ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.02 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02M http://TUENGR.COM/V10A/11A02M.pdf DOI: 10.14456/ITJEMAST.2020.33

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employee performance decreased over time. For inconsistent effects of OSE, if OSE increases performance up to a certain point, beyond which it fell with further increase in OSE (Vancouver et al., 2008). They found that the OSE moderates its effect.

However, because most of the studies suggest a positive relationship between OSE and employee performance so we expect that each OSE will have a positive influence on both forms of employee performance. The second hypothesis takes into account an employee’s job performance and OSE relationship, as Hypothesis 2: Occupational self-efficacy is positively related to an employee’s task and contextual performance.

2.6 OCCUPATIONAL SELF-EFFICACY EMPLOYEE ORGANIZATIONAL CYNICISM RELATIONSHIP

PERFORMANCE

Research carried out on employee distant attitude towards the organization and their job performance indicates that employee’s cynicism towards the organization has a negative influence on their job performance. Moreover, if employees also have low OSE or they have pessimistic feelings about their work their job performance can be further reduced associated with depression and anxiety (Vera et al., 2012). From the meta-analysis conducted by Lee & Ashforth (1996), the independent role of the low level of OSE compared with OC results in negative organizational and individual outcomes.

Depending on specific working conditions, OC and OSE may have a different role in creating an impact on organizational outcomes like employee’s job performance or prosocial behavior (Angelo & Chambel, 2014). It can act as a moderator or mediator or even an independent variable (Xu at al., 2012). Since OSE belief is highly based on past experiences, it is reasonable that OC is responsible for low OSE. Thus, the relationship between OSE and OC is reciprocal (Skaalvik & Skaalvik, 2010).

Thus, the third hypothesis is given as Hypothesis 3: Occupational self-efficacy significantly moderates the relationship between OC (Cognitive/Affective/Behavioral) and employee’s task and contextual performance.

2.7 COMPARISON BETWEEN ORGANIZATIONS

MANUFACTURING

AND

SERVICE

SECTOR

Manufacturing and service sector organizations can be distinguished in many different ways. For example, at organizational level manufacturing organizations produce tangible whereas service organizations produce intangible products, manufacturing sector organizations produce product and consumer consume them and in it, the customer is not engaged whereas customers are actively involved in the service sector (Lewis, Goodman, Fandt, & Michlitsch, 2007). Operation management in the manufacturing sector is more product-oriented while it is more people-oriented in service organizations (Jiang, 2009).

As above mention above both sector's differences exists in ways of managing their employees.

For example, in comparison to employees in the manufacturing sector, service sector employees more formal inputs from the customers and management, which could result in better job performance (Jackson & Schuler, 1995). It is also reported that service-sector employees continuous and updated training and development as compared to manufacturing sector employees because they need more

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diverse skills and abilities to perform the job (Othman, 1999).

There is a dearth of research available on the comparison of OSE, OC and employee job performance in service and manufacturing sector organizations. However, based on the above arguments regarding organizational and functional level differences in both sectors it may be hypothesized that in both sectors the relationships among OSE, OC and employee job performance variates. Thus, the fourth hypothesis of the study concludes as follows: Hypothesis 4: Relationships among occupational self-efficacy, OC and employee job performance significantly differs between the manufacturing and service sector.

Figure 1: Theoretical Framework

3. METHODOLOGY/ MATERIALS Figure 1 gives a framework for this study. Research hypotheses were examined with the help of datasets from service (Healthcare, higher education, and banking) and manufacturing (Cement, pharmaceutical and food) sectors of Pakistan. The population of the study included, Higher education commission of Pakistan (HEC) approved higher education institutes; Pakistan Medical and Dental Association (PMDA) and Drug Regularity Authority of Pakistan (DRA) approved hospitals and pharmaceutical organizations; Securities and Exchange Commission of Pakistan (SECP) listed banks, cement and food organizations. Employees from the higher education sector include faculty members, from healthcare sector nurses, doctors and surgeons were included and from banks, pharmaceutical, cement, and food organizations their managers, assistant managers, and department heads were approached for data collection.

3.1 DATA COLLECTION AND SAMPLE Data were collected in two rounds; first through self-administrative questionnaire from Islamabad, Rawalpindi and Peshawar and second through emails from Lahore, Karachi, and Quetta.

According to the data of securities and exchange commission of Pakistan 2016, the contribution of these subsectors is above 30%. Five-hundred survey questionnaires were distributed in each sector, from which 361 (Response rate 73%) completed questionnaires were received from manufacturing and 390 (Response rate 78.6%) from the service sector. The total response rate was 75.1% from both sectors. As per the results of Table 1, almost 69% of the respondents were male and were Masterâ&#x20AC;&#x2122;s degree holders. *Corresponding author (Komal Khalid). Email: kmuddassar@kau.edu.sa. Š2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.02 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02M http://TUENGR.COM/V10A/11A02M.pdf DOI: 10.14456/ITJEMAST.2020.33

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Table 1: Respondent’s Demographics Demographics Male Gender Female 20 – 30 31 – 40 Age 41 – 50 51 and Above Ph.D M.Phil / MS Qualification Masters Bachelor Food Cement Pharmaceutical Subsectors Higher Education Healthcare Bank Manufacturing Sector Service

Responses 454 297 230 258 204 59 143 129 358 121 137 109 115 161 126 103 361 390

Frequency 68.8 31.2 30.6 34.4 27.1 7.9 19.1 17.2 47.6 16.1 18.2 14.5 15.3 21.4 16.8 13.7 48.1 51.9

Respondents

%

751

100

751

100

751

100

751

100

751

100

3.2 MEASURES The survey includes items for demographics (i.e. Gender, age, qualification, subsector, and sector). For measuring OSE, the six-item scale of Schyns & Collani (2002) was used with a 7-point Likert scale ranging from highly disagree to highly agree. Exploratory factor analysis showed that items of the OSE scale explain 66.34% of the variance. Kaiser-Meyer-Olkin test was (.91, Sig = .00), which shows that the sample is enough to achieve these test results and does not have high inter-item correlations. Cronbach's alpha coefficient for OSE was .91. To measure employee performance, individual work performance questionnaire by Koopmans et al. (2013) was used with a 7-point Likert scale. This measure has eight-items for contextual performance and five-items for task performance.

Exploratory factor analysis showed that items of contextual work performance scale explain 59.31% of the variance; task work performance five-items explain 63.72% variance. Kaiser-Meyer-Olkin test for contextual performance was (.89, sig = <.01) and for task performance was (.92, sig = .00).

Cronbach's alpha coefficient for contextual performance was .89 and task performance was .92. To measure OC, Brandes (2006) scale was utilized. OC consists of three basic sub-dimensions (Cognitive = 5-items, affective = 4-items, and behavioral = 4-items) with 7-point Likert scale ranging from never to always.

Exploratory factor analysis showed that items of CC scale explain 55.42% of the variance; affective cynicism (AC) four-items scale explain 59.83% variance; whereas four-items of behavioral cynicism (BC) scale explains 57.29% of the variance. Kaiser-Meyer-Olkin test for the full OC scale was (0.82, Sig = <0.01), which shows that the sample is enough to achieve these test results and does not have high inter-item correlations. Kaiser-Meyer-Olkin test for CC was (.84, sig = <0.01), AC was (.89, sig = .00) and for BC was (.81, sig = <0.01). Cronbach alpha coefficient for CC was .84, AC was .87 and BC was .81.

For further construct validity analysis of the variables rotated component matrix method, Varimax with Kaiser Normalization was used. Results Table 2 shows items of employee task performance are substantially loaded on factor (Component 1), employee contextual performance on factor (Component 2), OSE on factor (Component 3), CC loaded on factor (Component 4), AC on factor (Component 5) and BC loaded on factor (Component 6). So, these factors could be utilized for

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further analysis.

Table 2: Cronbach Alpha, Average Variance Explained, Rotated Factor Matrix ECP1 ECP2 ECP3 ECP4 ECP5 ECP6 ECP7 ECP8 ETP1 ETP2 ETP3 ETP4 ETP5 CC1 CC2 CC3 CC4 CC5 AC1 AC2 AC3 AC4 BC1 BC2 BC3 BC4 OSE1 OSE2 OSE3 OSE4 OSE5 OSE6

a

AVE

0.89

59.31%

0.92

0.84

0.87

0.91

0.91

63.72%

55.42%

59.83%

Factor 1

2 0.84 0.69 0.82 0.54 0.62 0.74 0.59 0.76

3

4

5

6

0.65 0.73 0.68 0.65 0.74 0.84 0.61 0.79 0.65 0.65 0.64 0.67 0.52 0.73

57.29%

0.68 0.49 0.58 0.68

0.69 0.57 0.75 66.34% 0.53 0.62 0.65 Extraction Method: Principal Axis Factoring.

Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 7 iterations

Goodness of model fit presented satisfactory results of indices (CMIN/DF = 2.32; GFI = 0.71; AGFI = 0.69; CFI = 0.86; RMSEA = 0.03. Composite reliability (CR) was ranged 0.77-0.93 and Average Variance Extracted (AVE) ranged 0.55- 0.66. Results of multicollinearity tests (Variance inflation factor and tolerance) showed no multicollinearity issues.

4. RESULTS In general, respondents of manufacturing sector reported less self-efficacy (max = 4.82, min = 4.07) than service sector (max = 5.24, min = 4.15). Respondents of service sectors reported the same trends for contextual and task performance. From Table 3 it is also evident that within service sector respondents those who are above the age of 40 have higher OSE, contextual and task performance and consecutively lower CC, AC, and BC as compared to respondents below 40 years of age. In the manufacturing sector, respondents within the age group of 30 â&#x20AC;&#x201C; 39 years have higher OSE, contextual and task performance and consecutively lower CC, AC, and BC as compare to respondents below 30 years and above 40 years of age. Responses for OSE, contextual and task performance were above the *Corresponding author (Komal Khalid). Email: kmuddassar@kau.edu.sa. Š2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.02 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02M http://TUENGR.COM/V10A/11A02M.pdf DOI: 10.14456/ITJEMAST.2020.33

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neutral response options and CC, AC and BC are below neutral response options for both sectors as shown in Table 3, indicating inverse relationship.

Table 3: Frequency Percentages for Occupational Self-Efficacy, Employee Performance, and OC among Age Groups Age (year) Manufacturing 20-29 30-39 40-49 50+ Service 20-29 30-39 40-49 50+

OSE

ECP

ETP

CC

AC

BC

4.77 5.02 4.14 5.07

4.88 5.19 4.76 4.95

4.53 5.2 4.91 4.7

3.58 3.45 3.54 3.71

3.15 2.86 3.23 3.3

3.29 3.21 3.38 3.41

4.15 4.39 5.17 5.24

4.07 4.98 5.02 5.36

4.14 5.19 5.35 5.23

3.23 3.74 3.33 3.18

3.6 3.11 3.18 3.47

3.14 3.24 3.13 3.01

4.1 DESCRIPTIVE STATISTICS AND CORRELATION ANALYSIS Table 4 represents means, standard deviations, skewness and kurtosis of the variables as well as their inter-correlations. Correlation analysis is carried out to measure the relationship among variables. The mean value of variables ranges from 3.09 to 4.97 and the SD ranges from .71 to .99.

The data were checked for missing values and normality (skewness and kurtosis) as suggested by researcher Singh & Sharma (2016). In this study, kurtosis and skewness range values were less than Âą2 as shown in table 4. Occupational self-efficacy positively correlated with task performance and contextual performance, whereas it is negatively correlated with three forms of OC in both manufacturing and service sectors. Correlations between OSE and employee performance dimensions (Task and contextual) are stronger within service sector as compared to manufacturing sector. Contextual-task performance relationship ship is stronger within service sector (r = .51) as compared to manufacturing sector (r = .43). These results can be described better with further tests and are then discussed accordingly.

Table 4: Descriptive statistics and correlation analysis (Manufacturing N=361, Service N=390).

Manufacturing Service M SD Skew Kurt 1 2 3 4 5 6 M SD Skew Kurt 1. OSE 4.26 0.94 1.3 0.96 -.18* -.21* -.13* .38** .42** 4.85 0.99 0.86 1.64 2. CC 3.65 0.91 1.02 1.98 -.13** .35* .36** -.24** -.26** 3.51 0.72 1.19 2.24 ** ** 3. AC 3.12 0.76 1.23 2.41 -.19 .28 .41** -.32* -.25** 3.09 0.65 1.07 2.11 * ** * 4. BC 3.82 0.84 0.98 1.79 -.11 .21 .25 -.25** -.29** 3.18 0.63 0.95 1.97 ** ** ** ** 5. ECP 4.58 0.87 1.29 2.46 .29 -.24 -.22 -.27 .51** 4.72 0.92 1.37 2.41 ** ** ** ** ** 6. ETP 4.65 0.98 1.14 2.23 .33 -.30 -.18 -.16 .43 4.97 0.71 1.26 2.42 Note: OSE = occupational self-efficacy, CC = cognitive cynicism, AC = affective cynicism, BC = behavioral cynicism, ECP = employee contextual performance, ETP = employee task performance ** Correlations are significant at 0.01 level; * Correlations are significant at 0.05 level

4.2 UNIVARIATE ANALYSIS To analyze the impact of OSE and the interactional effect of OSE with OC (Cognitive, affective and behavioral) on employee contextual performance univariate analysis was conducted. The findings of this test are shown in table 5 for the manufacturing and service sectors.

In the manufacturing sector, OSE and forms of OC have a moderate significant influence on contextual performance in comparison to the service sector in which OSE and BC have a strong and significant influence on contextual performance. Overall, R statistics for manufacturing sector showed that forms of OC and their relationships with OSE predicted 32% variation in contextual performance, whereas R statistics for service sector showed that forms of OC and their relationships

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with OSE predicted 39% variation in contextual performance. Moreover, the mean and standard deviation values of contextual performance showed that in both sectors contextual performance lies between moderate to high; predicting somewhat moderate contextual performance of employees.

Table 5: Univariate Analysis for the moderating effect of occupational self-efficacy in the relationship between organizational cynicism and employee contextual performance.

Intercept OSE Cog. Cynicism Aff. Cynicism Beh. Cynicism OSE*Cog. Cyni OSE*Aff. Cyni OSE*Beh. Cyni R2 R2adj Mean SD

F 8.42 4.14 9.23 3.47 4.91 6.36 5.09 6.14

Manufacturing t-values  3.21 2.04 .48 2.27 -.35 3.62 -1.02 3.39 -.43 3.54 .27 8.69 .42 4.16 .24 2.87 .36 .32 4.71 .97

Sig <0.01 .02 .04 .02 .02 .02 <0.01 .06

F 9.87 5.48 3.42 4.59 7.18 4.04 3.19 3.61

Service t-values  2.76 3.23 .74 3.14 -.18 3.64 -.41 2.15 -.68 2.47 .83 3.27 .61 2.81 .76 3.19

Sig <0.01 <0.01 .03 .01 <0.01 <0.01 .02 <0.01

.42 .39 4.86 1.04

Occupational self-efficacy has a stronger influence on the relationship of AC-contextual performance in the manufacturing sector as compared to the service sector (see Figure 2).

Occupational self-efficacy has only high significant moderation on the AC-contextual performance relationship in manufacturing sector, whereas in service sector OSE has moderate influence on the AC-contextual performance relationship.

(a) Manufacturing Sector (b) Service Sector Figure 2: Interaction Plot for AC, OSE, and ECP Occupational self-efficacy has a stronger influence on the relationships of CC-contextual performance and BC-contextual performance in the service sector as compared to the manufacturing sector (see Figures 3, 4).

(a) Manufacturing Sector (b) Service Sector Figure 3: Interaction Plot for CC, OSE, and ECP *Corresponding author (Komal Khalid). Email: kmuddassar@kau.edu.sa. ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.02 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02M http://TUENGR.COM/V10A/11A02M.pdf DOI: 10.14456/ITJEMAST.2020.33

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Behavioral cynicism does have a significant influence on contextual performance in manufacturing sector but when OSE moderates the relationship that influences become nonsignificant (see Table 5 and Figure 4).

(a) Manufacturing Sector (b) Service Sector Figure 4: Interaction Plot for BC, OSE and ECP in Manufacturing Sector To analyze the impact of OSE and the interactional effect of OSE with OC (Cognitive, affective and behavioral) on employee task performance univariate analysis was conducted. The findings of this test are shown in table 6 for the manufacturing and service sectors.

In the manufacturing sector, OSE and CC have a strong significant influence on task performance while AC and BC has a moderate significant influence. On the other hand, within service sector OSE, cognitive and BC have a strong significant influence on task performance while AC has a moderate influence (See table 6). Overall, R statistics for manufacturing sector showed that forms of OC and their relationships with OSE predicted 41% variation in task performance, whereas R statistics for service sector showed that forms of OC and their relationships with OSE predicted 48% variation in task performance.

Table 6: Univariate Analysis for the moderating effect of occupational self-efficacy in the relationship between OC and employee task performance.

Intercept OSE Cog. Cynicism Aff. Cynicism Beh. Cynicism OSE*Cog. Cyni OSE*Aff. Cyni OSE*Beh. Cyni R2 R2adj Mean SD

F 12.36 3.31 8.71 3.35 5.38 9.12 4.39 8.75

Manufacturing t-values  2.41 1.10 1.03 3.42 -.12 3.34 -1.44 2.43 -.35 2.94 .23 7.41 .94 3.37 -.11 2.02 .41 .38 4.84 1.00

Sig .00 .00 .00 .02 .04 .05 .00 .13

F 10.27 3.74 4.58 6.85 5.78 4.22 3.91 2.71

Service t-values  2.84 3.17 .20 3.47 -.28 3.57 -.24 2.62 -.17 2.82 .18 3.15 .37 2.86 .25 3.51

Sig .00 .00 .02 .01 .00 .00 .00 .00

.48 .46 4.97 1.02

Occupational self-efficacy has a stronger influence on the relationship of AC-task performance in the manufacturing and service sectors and convert the moderate significant impact of AC on task performance into a stronger impact (see Figure 5).

Occupational self-efficacy has a stronger influence on the relationships of CC-task performance in the service sector as compared to manufacturing sector. In manufacturing sector if AC is high and OSE is low it will result in inferior task performance but if AC is high and OSE is also high, then it will slightly improve task performance (with reference to low OSE- performance). In the service

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sector, if AC is high and OSE is low it will result in low task performance but if AC is high and OSE is also high then it will slightly enhance task performance (see Figure 6).

(a) Manufacturing Sector (b) Service Sector Figure 5: Interaction Plot for AC, OSE, and ETP.

(a) Manufacturing Sector (b) Service Sector Figure 6: Interaction Plot for CC, OSE, and ETP. Behavioral cynicism had a main effect on task performance but OSE did not moderate the relationship between BC and task performance in the manufacturing sector, while OSE strongly moderates the BC impact on task performance within the service sector (See figures 12 and 13). In both sector by improving OSE of employee’s task performance can be increased.

The results of univariate analysis (Table 5 & 6) and interactional plots (Figures 2-13) for both sectors support our third hypothesis regarding the moderation of OSE on the relationship between OC (Cognitive/Affective/Behavioral) and employee’s task and contextual performance.

4.3 INDEPENDENT SAMPLES T-TEST The Independent Samples t-test was used for sectoral comparisons. The results, as shown in Table 7, indicate that employees working in the service sector have higher OSE, contextual and task performance as compared to manufacturing sector employees who reported higher OC (Affective, cognitive and behavioral). The results of independent sample t-test for sector comparisons support our fourth hypothesis regarding differences exist in OSE, OC forms and types of employee performance in both sectors.

Table 7: Independent Sample t-Test for Sector Wise Comparisons.

Manufacturing Service M SD M SD t p OSE 4.26 .94 4.85 .99 6.23 .01 CC 3.65 .91 3.51 .72 12.54 .00 AC 3.12 .76 3.09 .65 7.43 .01 BC 3.82 .84 3.18 .63 10.79 .01 ECP 4.58 .87 4.72 .92 13.10 .00 ETP 4.65 .98 4.97 .71 9.76 .00 Note: OSE = occupational self-efficacy, CC = cognitive cynicism, AC = affective cynicism, BC= behavioral cynicism, ECP = employee contextual performance, ETP = employee task performance Variable

*Corresponding author (Komal Khalid). Email: kmuddassar@kau.edu.sa. ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.02 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02M http://TUENGR.COM/V10A/11A02M.pdf DOI: 10.14456/ITJEMAST.2020.33

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5. CONCLUSION OC has been associated with a range of important negative individuals (Chiaburu et al., 2013; Rehan et al., 2013) and organizational outcomes (Naus et al., 2007; Shoss, 2017). For this research purpose, hypothesized relationships among the three forms of OC: CC, AC, BC, OSE and two forms of organizational performance: task performance and contextual performance were investigated in the manufacturing and service sectors of Pakistan.

The finding is that all three forms of OC are negatively associated with a task and contextual performance in both sectors as predicted by the literature review (Aslam et al., 2015; Neves, 2012). In manufacturing sector, among forms of OC, CC is strongly correlated with task performance whereas BC is strongly correlated with contextual performance. However, in the service sector, BC is strongly related to task performance whereas AC is strongly related to contextual performance.

The results of the correlational analysis provide evidence that OSE has a stronger association with task performance in both sectors of Pakistan. Collins (2010) also suggested that OSE could strongly influence in-role performance than extra-role performance because it is more related to core self-evaluation regarding the task rather than cooperation and collaborations at the workplace.

This study gives that, in the manufacturing sector, OSE strongly moderate the relationship between CC and employee task performance while within service sector OSE strongly moderates the relationship between both cognitive and BC and employee task performance. The study also provides evidence that in the manufacturing sector OSE and forms of OC have a moderate influence on employee contextual performance while within service sector OSE has strongly moderated the relationship between BC and employee contextual performance. This study further concludes that organizations of both sectors should control and reducing employee attitudes like OC and work on enhancing employeeâ&#x20AC;&#x2122;s OSE belief, which could enhance employee task and contextual performance.

6. AVAILABILITY OF DATA AND MATERIAL Data can be made available by contacting the corresponding author.

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Dr. Komal Khalid is an Assistant Professor of HRM at the King Abdulaziz University, Jeddah. She has completed her doctorate in the field of Human Resource Management. She has been teaching courses in Management, HRM, Business, and Research Methods at Different Levels in Pakistan and Saudi Arabia. She is mainly interested in the Impact of Economic Effects on HRM Practices and Employee Outcomes.

*Corresponding author (Komal Khalid). Email: kmuddassar@kau.edu.sa. ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.02 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02M http://TUENGR.COM/V10A/11A02M.pdf DOI: 10.14456/ITJEMAST.2020.33

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©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies

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PAPER ID: 11A02N

DOMESTIC CREDIT AND ECONOMIC GROWTH IN ASEAN COUNTRIES: A NONLINEAR APPROACH Toan Ngoc Bui a

a*

Faculty of Finance and Banking, Industrial University of Ho Chi Minh City (IUH), VIETNAM.

ARTICLEINFO

A B S T RA C T

Article history: Received 14 June 2019 Received in revised form 18 October 2019 Accepted 29 October 2019 Available online 19 November 2019

The correlation between domestic credit and economic growth is an interesting research topic that attracts different views from many scholars. Particularly, most empirical studies hardly identify the nonlinear impact of domestic credit on economic growth. With this study, the author attempt to overcome the limitations of earlier studies by analyzing the nonlinear impact of domestic credit on economic Keywords: Financial development; growth in ASEAN countries during the period 2004-2017. By employing the Generalized Method of Moment (GMM), the study Banking sector; greatly succeeds in confirming the inverted U-shaped nonlinear impact Economic growth; of domestic credit on economic growth. Accordingly, the increase in Nonlinear approach; domestic credit boosts the economy. However, domestic credit exceeds GMM. the optimal threshold (DC* = 97.5%) exerts a negative influence on economic growth. The results provide essential empirical evidence for ASEAN countries to launch credit policies with the aim of sustainable economic growth.

Disciplinary: Management Sciences (Finance and Banking). ©2020 INT TRANS J ENG MANAG SCI TECH.

1. INTRODUCTION Domestic credit refers to financial resources provided to the private sector by the financial sector. More than that, domestic credit reflects the financial development of a country (Bui, 2019) and contributes to the efficient investment allocation (Diamond, 1984; Boyd & Prescott, 1986; Williamson, 1986; Greenwood & Jovanovic, 1990; Bencivenga & Smith 1991), the increase of investment (Botev & Jawadi, 2019), and most notably boosts the economy (Schumpeter, 1911; King & Levine, 1993; McKinnon, 1973; Shaw, 1973). In other words, the economy with a rapidly increased domestic credit develops better than other economies (Bayoumi & Melander, 2008).

Hence, the positive relationship between domestic credit and economic growth has by many scholars around the world (Thierry et al., 2016). Nevertheless, Pagano and Pica (2012) argued that domestic credit is not always positively correlated with economic growth. It can even exert negative impact on economic growth (Levine, 2005; Cournède & Denk, 2015). In fact, the recent global *Corresponding author (Toan Ngoc Bui). E-mail: buingoctoan@iuh.edu.vn

©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02N http://TUENGR.COM/V10A/11A02N.pdf DOI: 10.14456/ITJEMAST.2020.34

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financial crisis is a typical example of how the excessive increase and inefficient use of domestic credit lead to the waste of national sources, thereby negatively affecting economic growth.

Therefore, it is clear that there exist different views on the correlation between domestic credit and economic growth which needs more empirical analyses. Thus, does the nonlinear effect of domestic credit on economic growth really exist? This question has not been satisfactorily answered by prior studies. It is Goldsmith (1969) who initiated the identification of optimal financial structure for the aim of boosting economic growth. Recently, Botev and Jawadi (2019) also investigated the nonlinear effect of domestic credit on economic growth but failed to determine the optimal threshold. Hence, to analyze the nonlinear relationship between domestic credit and economic growth is necessary.

In this study, the author concentrates on investigating the nonlinear effect of domestic credit on economic growth, thereby identifying the optimal threshold of domestic credit for boosting economic growth. Furthermore, its data are collected in ASEAN countries, which possess a relatively high speed of domestic credit and economic growth in recent years. However, a limited number of empirical studies have been conducted, so this study is expected to give first empirical evidence on the nonlinear relationship between domestic credit and economic growth in ASEAN countries. The findings are essential for them to develop managerial credit policies for sustainable economic development.

2. LITERATURE REVIEW In this section, relevant research on the impact of domestic credit on economic growth will be briefly reviewed.

Domestic credit is an important indicator of the development of the banking sector as well as the financial development of a country. Schumpeter (1911) is one of the first economists that believed domestic credit plays an essential role in boosting economic growth through financing for investment and manufacturing. Most of recent empirical studies have found the positive influence of domestic credit on economic growth. For instance, Wolde-Rufael (2009) revealed the positive causal relationship between domestic credit and economic growth in Kenya from 1966 to 2005.

Similarly, Khoutem et al. (2014) confirmed that domestic credit is essential in stimulating the growth of Tunisian economy in the period 1973-2008. With a wider perspective, Menyah et al.

(2014) affirmed that domestic credit and trade liberalization are positively correlated to economic growth in Africa. By another analysis, Abdulsalam et al. (2015) reported that domestic credit contributes greatly towards economic growth in the Economic Community of West African States (ECOWAS). Samargandi and Kutan (2016) also found the positive influence of domestic credit on economic growth in the BRICS region from the first quarter of 1989 to the last quarter of 2012. At the same time, Thierry et al. (2016) showed domestic credit as a driver of economic growth in Cameroon between 1969 and 2013. In addition, Ibrahim and Alagidede (2018) found the positive nexus between domestic credit and the growth of 29 economies in the Sub-Saharan African region in the 1980-2014 period. This research also reported that economic growth is positively influenced by trade openness and negatively affected by inflation. The positive correlation between domestic credit and economic growth was also confirmed by Wang et al. (2019) with their analysis conducted in China from 2007 to 2016.

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However, other scholars have argued that domestic credit is not always positively related to economic growth. Levine (2005) stressed that the excessive growth and unproductive use of domestic credit could lead to the credit boom in the short run and the negative effect on economic growth in the long run. Regarding OECD countries in the 1970-2003 period, Pagano and Pica (2012) concluded that the excessive rise in domestic credit would not exert a positive influence on economic growth. In the same vein, Cournède and Denk (2015) highlighted the negative association between domestic credit and economic growth among OECD and G20 countries.

With regard to determining the optimal threshold, it has been a big concern of many scholars.

Nevertheless, almost none of the prior studies have identified the optimal threshold of domestic credit to stimulate economic growth. Indeed, Goldsmith (1969) is the first scholar that mentioned optimal financial structure in comparing the role of financial structure in the economic growth of Germany and the United Kingdom. Then, debates on the optimal financial structure to boost longrun economic growth have concentrated on four different views which are bank-based, marketbased, financial service-based and financial law-based (Levine, 2005). However, the value of optimal threshold has not been agreed, especially the optimal threshold value of domestic credit.

Recently, Botev and Jawadi (2019) found the positive effect of domestic credit on economic growth when investigating 100 countries for 1990-2012. Also, their research highlighted that economic growth is positively affected by trade openness and negatively influenced by inflation. However, the nonlinear effect of domestic credit on economic growth could not be found yet.

In general, there still exist many different views on the role of domestic credit in economic growth. Particularly, most empirical researchers have hardly investigated the nonlinear relationship between domestic credit and economic growth, thereby determining the optimal threshold of domestic credit in order to stimulate economic growth.

3. DATA AND METHODOLOGY 3.1 DATA The study collects data from six ASEAN countries including Indonesia, Malaysia, Thailand, Singapore, the Philippines, and Vietnam. These economies share a big number of similarities and have grown significantly in recent years. Its data are obtained from World Bank between 2004 and 2017.

3.2 METHODOLOGY The paper mainly examines the nonlinear impact of domestic credit on economic growth in ASEAN countries. In light of this objective, the author estimates the research model by employing methods that are appropriate for panel data including pooled regression (Pooled OLS), fixed effects model (FEM) and random effects model (REM). In order to determine which model is the best, the author conducts an F test for choosing the pooled OLS versus the FEM, and the Breuschâ&#x20AC;&#x201C;Pagan Lagrange multiplier test for choosing between the pooled OLS and the REM. With the chosen estimator, tests on multicollinearity, heteroscedasticity and autocorrelation issues are conducted.

Then, the Generalized Method of Moment (GMM) which was employed by Botev and Jawadi (2019) is used to estimate the nonlinear link between domestic credit and economic growth. One of the advantages of the GMM is its appropriateness for financial data (Driffill et al., 1998). More than *Corresponding author (Toan Ngoc Bui). E-mail: buingoctoan@iuh.edu.vn

Š2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02N http://TUENGR.COM/V10A/11A02N.pdf DOI: 10.14456/ITJEMAST.2020.34

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that, it helps reduce violations in regression assumptions and more especially, control for potential endogeneity (Doytch & Uctum, 2011).

Following previous researchers, the author determines the dependent variable of economic growth is measured by the gross domestic product (GDP) growth rate. Meanwhile, the independent variable is measured by domestic credit to the private sector (% of GDP). Moreover, squares of domestic credit are adopted to test the nonlinear relationship between domestic credit and economic growth as an independent variable, which is a novelty of this study. Inheriting studies of Ibrahim and Alagidede (2018), Botev and Jawadi (2019), inflation and trade openness are utilized as control variables.

Therefore, the research model is estimated by the following equation: EGit = β0 + β1 DCit + β2 DC2it + β3 INFit + β4 OPit + εit

(1).

The symbol εit is the model error. The symbols β0, β1, β3, and β4 are the model coefficients for each variable. Table 1 gives detail of variables for Equation (1).

Table 1: Summary of variables Variable name Dependent variable Economic growth Independent variables Domestic credit Squares of domestic credit Control variables Inflation Trade openness

Code

Source

How to measure

EG

World Bank

GDP growth (annual %)

DC DC2

World Bank World Bank

Domestic credit to the private sector (% of GDP) [Domestic credit to the private sector (% of GDP)]2

INF OP

World Bank World Bank

Inflation, consumer prices (annual %) The sum of imports and exports normalized (% of GDP)

4. RESULT In the research period, the ASEAN economies have grown on an average of 5.331% (Table 2).

In particular, the Philippines, Vietnam, and Malaysia reached the above-average economic growth which specifically is at 6.685%, 6.812%, and 5.897% respectively (Figure 1) in 2017.

Table 2: Descriptive statistics of all variables Variable Economic growth (EG) Domestic credit (DC) Inflation (INF) Trade Openness (OP)

Mean 5.331 83.749 4.295 159.010

Min -1.514 24.606 -0.900 37.421

Max 15.240 149.335 23.116 441.604

Also, Table 2 shows that their domestic credit averages 83.749%. Particularly, some countries possessed the above-average domestic credit in 2017, namely Thailand (144.968%), Vietnam (130.722%), Singapore (128.212) and Malaysia (118.806%) (Figure 1).

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60 40 20

10 EG (%)

8 6 4 2 0

0

5 0 -5

EG

DC

Philippines

5

100

0

50

-5

0

DC

10

20

0

EG

0

DC

EG

Vietnam 150 100 50

8

0

EG (%)

20 15 10 5 0 -5

DC (%)

EG (%)

40

5

Singapore

DC

60 DC (%)

150 EG (%)

10

DC (%)

EG (%)

Malaysia

EG

150

6

100

4 50

2 0

EG

DC (%)

DC

200 150 100 50 0

DC (%)

Thailand DC (%)

EG (%)

Indonesia

0

DC

EG

Figure 1: Domestic credit (DC) and economic growth (EG) in ASEAN countries Next, the model is estimated by adopting the estimators, namely the Pooled Regression model (Pooled OLS), Fixed effects model (FEM) and Random effects model (REM).

Table 3: Results of Pooled OLS, FEM, REM models EG

Pooled OLS 3.927*** 0.057 -0.001* 0.026 0.004 16.21% F(4, 79) = 3.82 Prob > F = 0.007***

FEM REM Constant 4.190 3.927*** DC 0.002 0.057 DC2 -0.001 -0.001** INF -0.061 0.026 OP 0.018 0.004 R2 6.41% 16.21% F(4, 74) = 2.20 Wald chi2(4) = 15.29 Significance level Prob > F = 0.078* Prob > chi2 = 0.004*** F(5, 74) = 1.06 F test Prob > F = 0.391 Breusch and Pagan chibar2(01) = 0.000 Lagrangian multiplier test Prob > chibar2 = 1.000 Note: *, ** and *** indicate significance at the 10%, 5% and 1% level, respectively. *Corresponding author (Toan Ngoc Bui). E-mail: buingoctoan@iuh.edu.vn

©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02N http://TUENGR.COM/V10A/11A02N.pdf DOI: 10.14456/ITJEMAST.2020.34

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From Table 3, the Pooled OLS model is more appropriate because F (F(5, 74) = 1.06; Prob > F = 0.391) and Breusch-Pagan Lagrangian multiplier test (chibar2(01) = 0.000; Prob > chibar2 = 1.000) are show no statistical significance. Hence, the Pooled OLS model is applied.

Table 4: Results of heteroscedasticity and autocorrelation tests Heteroscedasticity test Autocorrelation test chi2(13) = 20.77 F(1, 5) = 0.802 Prob > chi2 = 0.078* Prob > F = 0.412 Note: * indicates significance at the 10% level.

Table 4 indicates there is no autocorrelation in the model (Autocorrelation test: F(1, 5) = 0.802; Prob > F = 0.412). However, the heteroscedasticity really exists (Heteroscedasticity test: chi2(13) = 20.77; Prob > chi2 = 0.078). Therefore, the Generalized Method of Moment (GMM) is applied to constrain the heteroscedasticity as well as control potential endogeneity issues in the model.

Table 5: Results of the GMM EG

Coef.

P>|z| -1.056 0.722 0.195* 0.095 -0.001* 0.082 0.237* 0.100 -0.005 0.427 Wald chi2(3) = 14.57 Significance level Prob > chi2 = 0.006*** z = -1.33 Arellano-Bond test for AR(2) in first differences Pr > z = 0.182 chi2(5) = 7.43 Sargan test Prob > chi2 = 0.191 Note: * and *** indicate significance at the 10% and 1% level, respectively.

Constant DC DC2 INF OP

The estimated results are statistically significant at 1% (Wald chi2(3) = 14.57; Prob > chi2 = 0.006). And also, result of Sargan test (chi2(5) = 7.43; Prob > chi2 = 0.191) shows that the adopted instruments are suitable (Table 5). This means that all results of the system GMM model are valid.

From Table 5, economic growth (EG) is found to be positively influenced by DC (0.195) and negatively associated with DC2 (-0.001) at the 10% level of significance. Thus, it affirms the inverted U-shaped pattern between domestic credit and economic growth. This gives a novelty to this study. In addition, the research reveals that inflation (INF) is positively (0.237) related to economic growth (EG) at the 10% significance level. Nevertheless, with the obtained dataset, the statistically significant association between trade openness (OP) and economic growth (EG) cannot be confirmed yet.

5. DISCUSSION The result indicates that domestic credit (DC) exerts a positive impact on economic growth (EG). This is consistent with what have been previously found by cᝧa Wolde-Rufael (2009), Khoutem et al. (2014), Menyah et al. (2014), Abdulsalam et al. (2015), Samargandi and Kutan (2016), Thierry et al. (2016), Ibrahim and Alagidede (2018), and Wang et al. (2019). Besides, the study finds the negative influence of squares of domestic credit (DC2) on economic growth (EG).

Alternatively, there exists an inverted U-shaped nonlinear relationship between domestic credit and economic growth. This makes this study different from the earlier ones.

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EG

DC*

0

DC

Figure 2: Nonlinear impact of domestic credit on economic growth Consequently, the increase in domestic credit leads to a rise in economic growth. However, domestic credit is only positively associated with economic growth at the optimal threshold DC*.

When domestic credit exceeds this optimal threshold, the correlation between domestic credit and economic growth turns to be negative (Figure 2). Based on this, the mentioned research question is solved as follows: the inverted U-shaped pattern between domestic credit and economic growth means that domestic credit does not exert a permanently positive impact on economic growth.

Meanwhile, economic growth reaches a maximum at the optimal threshold DC*.

Hence, the estimated model is presented as follows: EGit = 0.195 DCit - 0.001 DC2it + 0.237 INFit + Îľit

(2)

Following this, the second derivative is taken with respect to DC in order to determine the maximum. The result reveals the optimal threshold (DC*) is 97.5%. in other words, if domestic credit values at 97.5%, economic growth will reach its maximum.

6. CONCLUSION The paper achieves its objective by confirming the nonlinear impact of domestic credit on economic growth in ASEAN countries. The results emphasize that the increase in domestic credit will boost economic growth. However, an excess of domestic credit over the optimal threshold (DC*) leads to credit abundance and eventually exerts a negative influence on economic growth or a decrease in economic growth alternatively. In other words, there exists an inverted U-shaped relationship between domestic credit and economic growth, which brings a novelty to this study.

Based on this, the optimal threshold (DC*) is determined to be 97.5%. It can be concluded that economic growth reaches a maximum when domestic credit values at 97.5% but economic growth will be negatively influenced if domestic credit exceeds this threshold. In addition, the study also reveals the positive correlation between inflation and economic growth.

Thus, domestic credit is not always correlated with economic growth. This relationship turns out to be negative when domestic credit exceeds the optimal threshold (DC* = 97.5%). This provides essential empirical evidence for ASEAN countries to have a comprehensive perspective on this correlation. Consequently, the ASEAN countries can develop flexible and efficient credit policies in combination with boosting sustainable economic growth. Despite gaining its objectives, *Corresponding author (Toan Ngoc Bui). E-mail: buingoctoan@iuh.edu.vn

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the paper has its limitation when adopting a limited number of control variables because it only focuses on the impact of domestic credit on economic growth.

7. DATA AVAILABILITY STATEMENT The used or generated data and the result of this study are available upon request to the corresponding author.

8. REFERENCES Abdulsalam, A., Salina, H.J.K., & Mohammed, B.Y. (2015). Financial Development, Human Capital Accumulation and Economic Growth: Empirical Evidence from the Economic Community of West African States. Procedia - Social and Behavioral Sciences, 172(27), 96-103.

Bayoumi, T., & Melander, O. (2008). Credit Matters: Empirical Evidence on US Macro-Financial Linkages.

IMF Working Paper, 08/169, 1-27. https://www.imf.org/en/Publications/WP/Issues/2016/12/31/Credit-Matters-Empirical-Evidence-on-US-22018 Bencivenga, V.R., & Smith, B.D. (1991). Financial Intermediation and Endogenous growth. Review of Economic Studies, 58, 195-209.

Botev, J., & Jawadi, F. (2019). The nonlinear relationship between economic growth and financial development: Evidence from developing, emerging and advanced economies. International Economics, In press, Available online 6 July 2019, 1-23. https://doi.org/10.1016/j.inteco.2019.06.004.

Boyd, J.H., & Prescott, E.C. (1986). Financial intermediary coalitions. Journal of Economic Theory, 38(2), 211-232.

Bui, T.N. (2019). The Role of Financial Development in the Vietnam Economy. WSEAS Transactions on Business and Economics, 16, 471-476.

Cournède, B., & Denk, O. (2015). Finance and economic growth in OECD and G20 countries. OECD Economics Department Working Papers, 1223, OECD Publishing, Paris, 1-60. http://gesd.free.fr/ocde1223.pdf Diamond, D.W. (1984). Financial intermediation and delegated monitoring. Review of Economic Studies, 51(3), 393-414.

Doytch, N., & Uctum, M. (2011). Does the worldwide shift of FDI from manufacturing to services accelerate economic growth? A GMM estimation study. Journal of International Money and Finance, 30(3), 410-427.

Driffill, J., Psaradakis, Z., & Sola, M. (1998). Testing the expectations hypothesis of the term structure using instrumental variables. International Journal of Finance and Economics, 3(4), 321-325.

Goldsmith, R.W. (1969). Financial structure and development. Yale University Press, New Haven.

Greenwood, J., & Jovanovic, B. (1990). Financial development, growth, and the distribution of income.

Journal of Political Economy, 98(5), 1076-1107.

Ibrahim, M., & Alagidede, P. (2018). Effect of Financial Development on Economic Growth in sub-Saharan Africa. Journal of Policy Modeling, 40(6), 1104-1125.

Khoutem, B.J., Thouraya, B., & Kamel, H. (2014). Financial Development and Economic Growth: New Evidence from Tunisia. Journal of Policy Modeling, 883-898.

King, R.G., & Levine, R. (1993). Finance and growth: Schumpeter might be right. The Quarterly Journal of Economics, 108(3), 717-737.

Levine, R. (2005). Finance and growth: theory and evidence, in ed. Aghion, P., and Durlauf, S.N. (Eds.), Handbook of Economic Growth. Elsevier, Amsterdam, 865â&#x20AC;&#x201C;934.

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McKinnon, R. (1973). Money and Capital in Economic Development. Brookings Institution, Washington, DC. Menyah, K., Nazlioglu, S., & Wolde-Rufael, Y. (2014). Financial development, trade openness and economic growth in African countries: New insights from a panel causality approach. Economic Modelling, 37, 386-394.

Pagano, M., & Pica, G. (2012). Finance and Employment. Economic Policy, 27(69), 5-55.

Samargandi, N., & Kutan, A.M. (2016). Private credit spillovers and economic growth: evidence from BRICS countries. Journal of International Financial Markets, Institutions, and Money, 44, 56-84.

Schumpeter, J.A. (1911). The Theory of Economic Development. Harvard University Press, Cambridge.

Shaw, E. (1973). Financial Deepening in Economic Development. Oxford University Press, London.

Thierry, B., Jun, Z., Eric, D.D., Yannick, G.Z.S, & Landry, K.Y.S. (2016). Causality Relationship between Bank Credit and Economic Growth: Evidence from a Time Series Analysis on a Vector Error Correction Model in Cameroon. Procedia - Social and Behavioral Sciences, 235, 664-671.

Wang, C., Zhang, X., Ghadimi, P., Liu, Q., Lim, M.K., & Stanley, H.E. (2019). The impact of regional financial development on economic growth in Beijing–Tianjin–Hebei region: a spatial econometric analysis. Physica A: Statistical Mechanics and its Applications, 521, 635-648.

Williamson, S.D. (1986). Costly monitoring, financial intermediation, and equilibrium credit rationing.

Journal of Monetary Economics, 18(2), 159-179.

Wolde-Rufael, Y. (2009). Re-examining the financial development and economic growth nexus in Kenya.

Economic Modelling, 26, 1140-1146.

Toan Ngoc Bui is a Lecturer at the Faculty of Finance and Banking, Industrial University of Ho Chi Minh City, Vietnam. He holds a Master of Finance and Banking from Ho Chi Minh City Open University, Vietnam. Currently, he is pursuing a Ph.D. at the University of Finance – Marketing (UFM), Vietnam. His researches are in the fields of Financial Development, Real Estate Market and Applied Econometrics.

*Corresponding author (Toan Ngoc Bui). E-mail: buingoctoan@iuh.edu.vn

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©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies

International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies http://TuEngr.com PAPER ID: 11A02O

IMPACTS OF DESPOTIC LEADERSHIP AND DARK PERSONALITY TRIAD ON FOLLOWER’S SENSE OF MEANINGFUL WORK: MODERATING INFLUENCE OF ORGANIZATIONAL JUSTICE Muhammad Bilal Kayani a*, Ayesha Zafar b, Muhammad Aksar b and Shoaib Hassan c a

Department of Business Management, Limkokwing University of Creative Technology, Cyberjaya, MALAYSIA. b Department of Management Sciences, Army Public College of Management & Sciences, PAKISTAN. c Department of Management Sciences, COMSATS University Islamabad, PAKISTAN. ARTICLEINFO

A B S T RA C T

Article history: Received 15 July 2019 Received in revised form 24 October 2019 Accepted 01 November 2019 Available online 19 November 2019

There is a growing interest in understanding how follower's reactions towards dark leadership are shaped by the follower's perceptions and organizational justice. Drawing on the conservation of Social Exchange Theory, this research investigates the impact of despotic leadership and dark personality triad (Narcissism, Psychopathy, Machiavellianism) on follower’s meaningful work with the moderation of organizational justice. The sample consists of 190 employees with diverse organizational backgrounds serving across different industries like hospitality, healthcare, and business. The results show that despotic leadership and the dark personality triad (Narcissism, Psychopathy, and Machiavellianism) has a significant and negative impact on follower’s sense of meaningful work. The organizational justice moderates the relationship of despotic leadership, and Narcissism with follower’s sense of meaningful work. But it has no moderating effect in the relationship of psychopathy and Machiavellianism with follower's sense of meaningful work. The study has great significance for different sectors as the top management across different industries can take as guidance to design policies regarding the leaders and they can understand that effective leadership qualities are very important to promote the active participation of employees at the workplace.

Keywords: Despotic Leadership; Narcissism; Psychopathy; Machiavellianism; Meaningful work; Organizational justice; Social exchange concept.

Disciplinary: Multidisciplinary Mathematics (Statistics)).

(Management

Sciences

(HRM),

©2020 INT TRANS J ENG MANAG SCI TECH.

1. INTRODUCTION Little search is conducted on dark leadership and dark personality traits of the leaders that have negative effects on the organization's performance and well-being of the employees, while past *Corresponding author (M. Bilal Kayani). Email: mbkiani@gmail.com ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02O http://TUENGR.COM/V11/11A02O.pdf DOI: 10.14456/ITJEMAST.2020.35

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researches aimed to explore the positive and constructive leadership (Tepper 2000). The research on destructive leadership explored that ineffective leadership is not only limited to just the absence of leadership; there are a variety of aspects and different behaviors include ineffective leadership (Bies and Tripp 1998). According to Derks et al. (2016); Hirschi (2012); Tummers and Knies (2013), perception of followers regarding work meaningfulness is very important and there are a line of researches shown that empowering leadership, transformational leadership and high-quality member exchange relationship of leaders are positively related to the follower's attitude and behavior.

However, there is little research on the dark side of the leadership in making sense of meaningful work.

In today’s emerging market, people across generations are motivated to work at a place where they can enhance inner life satisfaction and work meaningfulness. The meaningful work means employees get personal meaning and purpose from work and feel energized and enjoy the tasks assigned to them by supervisors (Neal and Bennett 2000). According to Fox (1994), “meaningful work is about things such as expressing one’s inner life needs by seeking meaningful work, contributing to others, living one’s dream, and searching for deeper meaning and purpose rather than just meant to be interesting and challenging”. Campbell et al. (2010); Lepisto and Pratt (2017) proposed that many people search for something that is larger than themselves and goes beyond their ego when they lack a deeper sense of meaning at work. Cascio (1995); Carton (2018) suggested that organizations need to react to the increasing need for meaningful work by intensifying the leader's behavior at workplace. It is very important to understand those circumstances that can satisfy follower’s meaningfulness at workplace.

There are certain conditions under which leaders diminish the follower's meaningfulness at work such as job designs, follower's attribution towards the leader, the relationship between leader and follower, personality traits of leaders and leadership style of the leaders. They play a vital role in shaping the behavior and perception of followers at work. The despotic leadership contains the characteristics of negative leadership style and little research is conducted in the area of despotic leadership that influences the attitude, behavior, and perception of followers (Raja et al., 2016).

De Hoogh and Hartog (2008) defined “despotic leadership as a leader’s tendency to engage in authoritarian and dominant behavior in pursuit of self-interest, self-aggrandizement, and exploitation of their subordinates”. Leaders exploit their subordinates for their personal gain regardless of the needs and concerns of the subordinate, use commanding and controlling mechanisms to manipulate them, and want unquestioning submission from their subordinates (Schilling 2009). They have morally corrupt behavior and legitimate organizational interests by indulging themselves in selfserving biases. According to Naseer et al. (2016), despotic leadership negatively affects creativity, organizational citizenship behavior, and job performance.

The dark personality traits have negative effects on the follower’s work meaningfulness and that is the reason three negative personality traits of leaders i.e. Narcissism, Psychopathy, and Machiavellianism are considered in this research. According to Hartog and Belschak (2012) these three personality dimensions are a socially malevolent and insincere character, interacting with another in an aggressive and emotionally cold way having behavioral tendencies to promote oneself at the cost of others. In the view of Babiak and Hare (2006), psychopaths do not bother others because they lack conscience and morality. They are not sensitive to criticism and do not consider other's pain when making moral judgments as they lack emotions. Braun (2017) investigated that narcissists

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M. Bilal Kayani, A. Zafar, M. Aksar, S. Hassan

ignore other’s welfare, although they do not intend to harm others. They need constant selfaffirmation, and primarily driven by self-enhancement. Machiavellians are somehow different than narcissists and psychopaths because they adapt at manipulating others and willing to do so through all means by ignoring interpersonal effects and also lack for conventional morality.

Organizational justice is the psychological concept and considered as a predictor of health at work because employees feel negative feelings and mental distress when they perceive organizational injustice but organizational justice lead towards positive outcomes at the workplace and make the work healthy (Moliner et al., 2005). An organizational structure is changing and there is more teambased work that develops the perception of organizational justice (Rupp et al., 2001). In an organizational structure where individuals have a high degree of perceived organizational justice, employees feel safe, satisfied and their well-being increases. The concept of organizational justice is firstly postulated by Greenberg (1990) "employees' perception about their organization's behaviors, decisions, and actions and how this influences employee's attitude and behavior at work”.

The traditional research suggests that employee's attitude and behaviors are influenced whether employees perceive that work is given to them is meaningful or not but they did not focus that work meaningfulness is a consequence that needs a clear link that how leader's influence follower’s meaningfulness (Martela and Steger, 2016). There is ambiguity in this concept that needs further detailed discussion that how despotic leadership and dark personality triad influence a sense of follower’s meaningfulness at work (Lepisto and Pratt, 2017). Rare research is found that despotic leadership harms the employee's life satisfaction, inner life, and work meaningfulness.

This study tries to shed light on the dark leadership that how despotic leadership and dark personality triad (narcissism, psychopaths and machiavellianism) impact follower’s work meaningfulness in the moderation of organizational justice. This model has a contribution to the literature of dark leadership and work meaningfulness. This will be a novel perspective on growing literature on destructive leadership and the dark side of leadership. Secondly, it has a great contribution to the advancement of work meaningfulness and how leader's negative or dark leadership practices harm the attitude and behavior of the followers with the help of social exchange theory. Our research extends the current literature by enabling more comprehensive understanding of leader’s influence on follower’s work meaningfulness.

2. LITERATURE REVIEW 2.1 WORK MEANINGFULNESS The work meaningfulness is the dimension of psychological empowerment. According to Martela and Steger (2016), meaningful work consists of three components: significance which consists of employee’s own evaluation of their work that either it supports in their career development or not; purpose which means the directionality of the work and how employees align their work with higher-order goals; and coherence which refers to employee’s understanding and making sense of their work. When these components diminish, it harms the work meaningfulness of followers.

The first component states that significance refers to the importance, value, and worth of the work (Mathieu et al. 2014). The employees want their work to be meaningful, worthwhile and career supportive. But they consider the tasks ambiguous when they are unable to justify their work and fail to explain the worth of their work. They feel dissatisfied with the work contents and find it *Corresponding author (M. Bilal Kayani). Email: mbkiani@gmail.com ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02O http://TUENGR.COM/V11/11A02O.pdf DOI: 10.14456/ITJEMAST.2020.35

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insignificant. The second component proposes that the purpose of the work is very important for the followers to understand. The followers seek a clear direction and contribution to their work and they expect that their work makes them different in the world but when they fail to meet their expectations they start considering that work useless and purposeless. The third component states that there will be lack of coherence when employees unable to understand the meaning at work, they feel work is unstructured and find their work chaotic and particularly they lose track to understand that what the work is all about.

2.2 DESPOTIC LEADERSHIP AND WORK MEANINGFULNESS Despotic leadership is considered the negative leadership style under destructive leadership which negatively affects the subordinates(Ötken and Cenkci 2012). De Hoogh and Den Hartog (2008) defined “despotic leadership as a leader’s tendency to engage in authoritarian and dominant behavior in pursuit of self-interest, self-aggrandizement, and exploitation of their subordinates”. It exploits the subordinates for their personal gain like taking benefits on behalf of subordinates regardless of their achievement without showing questionable behavior because such leaders use demanding and autocratic behavior with subordinates. They use corrupt behavior and indulge themselves in selfserving biases which harms the work meaningfulness of subordinates because followers do not feel the significance of the work as they do not get rewards against their achievements (Schyns and Schilling, 2013).

When employees invest their time and efforts at workplace then they expect that work must give them inner life satisfaction, they must understand purpose and significance of the work that how work will be helpful for them in their career satisfaction and they also want to understand at what extent their work is aligned with their personal as well as organizational goals. But despotic leaders do not care about the follower’s concern and they just think about their self -interest and cross all the limits by doing unfair means which reduced the work meaningfulness of employees at the workplace (Frone, 2003). According to Ilies, Fulmer et al. (2009); Eby et al. (2010); Nauman and Fatima (2018), despotic leadership disturbs the life satisfaction and inner satisfaction of the followers because it is considered as a social stressor in the form of emotional exhaustion. The social exchange theory Blau (1964) supported the above arguments in a way that social exchange relationships based on the reward system and cost-based analysis. If one party gives or sacrifices something the other party feels obliged to give something in return. The social exchange concept based on the equality which means if you do not give favor to anyone you cannot expect any favor from others.

H1: Despotic leadership has a significant and negative impact on work meaningfulness

2.3 NARCISSISM AND WORK MEANINGFULNESS Narcissists need constant external self-affirmation primarily driven by self-enhancement (Braun, 2017). They ignore other’s welfare and do not consider them but their purpose is not to harm others.

They do not consider the achievements of the followers neither focus on their work nor showing satisfaction with their work. They are willing to put one's own needs ahead of others because they have a selfish personality trait. Rosenthal and Pittinsky (2006)investigated in their study that socially over dominant characteristics of such leaders reduce the meaningfulness of the work by reducing follower's inner sense of meaning and overshadow follower's ability to develop strategies regarding meaning-making work.

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H2: Narcissism has a significant and negative impact on work meaningfulness.

2.4 PSYCHOPATHS AND WORK MEANINGFULNESS According to Babiak and Hare, (2006); Boddy(2010), psychopaths creates unnecessary organizational constraints, low level of job satisfaction, increased workload, bullying characterized by conflicts and toxic work environment. In this way, it is very difficult for followers to ask a question regarding their work purpose and meaningfulness. They get motivation from their self-promotion and personal gain and show a lack of interest regarding their followers which reduces the work meaningfulness. It reduces the follower's feelings of purpose due to lack of high-order prosocial gain.

The employees feel the adverse experience at workplace due to the negative and selfish personality trait of the leader. Boddy et al., (2010) investigated the negative relationship between corporate psychopaths and employee’s well-being. The social exchange theory also supports the above argument that you will receive in return what you have been invested because exchange relationships always based on cost-benefit analysis.

H3: Psychopaths have a significant and negative impact on work meaningfulness.

2.5 MACHIAVELLIANISM AND WORK MEANINGFULNESS According to Myung and Choi (2017), Machiavellians adapt the behavior of manipulating others by doing so through all means because they are selfish and try to harm others. They have a low ideological commitment, ignore interpersonal effects and lack of morality and ethics. The employees feel they are not properly rewarded for their efforts and they are not appreciated for their achievements, they do not feel recognized for their job due to which their purpose of work is reduced.

Zettler, Friedrich et al. (2011) suggested, Machiavellians regulate authority on others and willing to manipulate and exploit others. They are perceived as abusive by subordinates and focus on broadening power and resources for their personal gain. They do not bother that their employees are satisfied or not and either the work is meaningful for them or not. They just impose authority and direct others what you have to do and get benefits at the cost of others which decreases work meaningfulness. According to Kiazad, Restubog et al. (2010), Machiavellians likely to desire greater reward and control over others due to which they report lower levels of job satisfaction. They exhibit selfish and corrupt behavior.

H4: Machiavellianism has a significant and negative impact on work meaningfulness.

2.6 MODERATING ROLE OF ORGANIZATIONAL JUSTICE BETWEEN DESPOTIC LEADERSHIP AND WORK MEANINGFULNESS Work meaningfulness is a critical indicator of an individual’s well-being because followers get inner satisfaction and purpose of the work (Aguinis and Glavas, 2019). According to Naseer et al., (2016), despotic leaders are unethical as they use unethical code of conduct and authoritarian. They are exploitative, vengeful, controlling and commanding and consider only their self-interest. It weakens the wellbeing of employees by increasing tension in subordinates. They have low ethical standards and self- centered, demand unquestioned compliance and obedience from the subordinates.

In such circumstances, it is not possible for the followers to exactly understand the purpose and significance of the work due to which their work meaningfulness decrease. The organizational justice *Corresponding author (M. Bilal Kayani). Email: mbkiani@gmail.com ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02O http://TUENGR.COM/V11/11A02O.pdf DOI: 10.14456/ITJEMAST.2020.35

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plays a critical role in shaping positive perception, attitude, and behavior of employees because employees perceive that organizational decisions and actions are justifiable and the organization is focusing on their career development and promotions. In this way, organizational justice increase the sense of inner satisfaction and employees feel valued at workplace (Karakus et al. 2014).

H5: Organizational justice moderates the relationship between despotic leadership and work meaningfulness in such a way that it weakens the relationship when organizational justice is high.

2.7 MODERATING ROLE OF ORGANIZATIONAL JUSTICE BETWEEN NARCISSISM AND WORK MEANINGFULNESS The meaningful work means employees get personal meaning and purpose from work and feel energized and enjoy the tasks assigned to them by supervisors. Meaningful work is about things such as expressing one's inner life needs by seeking meaningful work, contributing to others, living one's dream, and searching for deeper meaning and purpose rather than just meant to be interesting and challenging (Fox, 1994). It represents how people interact with each other at workplace and how they support each other by sharing their experiences to prevent problems. According to Babiak and Hare, (2006); Boddy et al., (2010), narcissists are engaged in extreme form of directionless leadership, mismanagement and they interfere with various components of meaningfulness which reduces the sense of work meaningfulness in followers because they are unable to understand the purpose and significance of the work. It affects the followerâ&#x20AC;&#x2122;s well-being and inner satisfaction and they do not get satisfaction and value of the work. In case, when employees perceive higher organizational justice where they receive merit-based promotions, fair compensations and other perquisites they become loyal to the organization because in the context of social exchange theory if one party gives any favor the other party feels obliged to give something in return. It means the perception of higher organizational justice weakens the existing negative relationship between narcissism and work meaningfulness.

H6: Organizational justice moderates the relationship between narcissism and work meaningfulness in such a way that it weakens the relationship when organizational justice is high.

2.8 MODERATING ROLE OF ORGANIZATIONAL JUSTICE BETWEEN PSYCHOPATHS AND WORK MEANINGFULNESS Each person desire to be involved in activities that give greater meaning to his/her life with inner motivation and truths that are the basic assumptions of the work meaningfulness (Hawley and Hawley, 1993). According to Boddy, (2010), psychopaths have negative personality features under dark leadership and prefer their own self-interest. They are willing to get advantage at the cost of others because they have good skills in how to manipulate the information by exploiting employees.

The followers of the psychopaths receive more unfairness from the supervisor, less help, less training and fewer instructions due to which employees fail to take help at the time of any difficulty. They do not understand how work gives them value and what the significance of the work is. Their personal and organizational goals are not aligned. They get ambiguous information from supervisors regarding work which obstructs their sense of coherence which reduces the work meaningfulness. When employees perceive organization positive as organization is following justice and procedural and decision-making process which helps the employees in career development and promotions then

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employees feel happy and they generate positive sensations regarding organization and exiting relationships become weak.

H7: Organizational justice moderates the relationship between psychopaths and work meaningfulness in such a way that it weakens the relationship when organizational justice is high.

2.9 MODERATING ROLE OF ORGANIZATIONAL JUSTICE BETWEEN MACHIAVELLIANISM AND WORK MEANINGFULNESS Alignment with organizational goals and values is also very important to bring effective results.

It means the individual needs to make a connection with others where society and individual's purpose is larger than oneself. It also means that employees perceive the supervisor’s concern about the welfare of community and employees. So that both managers and employees have strong values in the organization that is recognized (Hawley 1993). Li, et al. (2010) demonstrated that employees believe the supervisor cares about the employee's career development by assigning them meaningful work that will help them to learn something new which develops the urge for searching deep information that motivates employees to stay connected, attached with the organization and show commitment to the organization. Machiavellians have toxic behavior with employees and they focus on personal gains. They used an emotionally cold way and aggressive environment by showing selfish behavior (Paulhus and Williams 2002). According to Pailing et al. (2014), this personality trait is associated with bullying behavior by using manipulating tactics. It overshadows the employee's ability to look at their work positively and as serving a higher purpose, and also creates an unpleasant environment for the employees which reduces the work meaningfulness. When employees have perception of fairness and organizational justice, they generate positive feelings that organization is focusing on them and treat them fairly. The organizations explain rationale for decisions thoroughly and give respect to the employees (Greenberg 1993). In this way, organizational justice weakens the negative relationship between Machiavellianism and work meaningfulness.

H8: Organizational justice moderates the relationship between Machiavellianism and work meaningfulness in such a way that it weakens the relationship when organizational justice is high.

3. METHODOLOGY This quantitative research method was applied using a self-administered Likert scale questionnaire to explore the degree of association among variables (Kerlinger and Lee 2000). The multi-source field study was used to test the research model. The sample consisted of 190 employees working in different organizations and across different industries (hospitality, healthcare, and business) in Pakistan. The non-probability sampling techniques were used under convenience sampling. The response rate was 72% (Singleton et al., 2005). Later the data were tested through SPSS 21. Furthermore, demographics (age, education, experience) of respondents were controlled because the descriptive analysis of the demographics depicts an impact on the variables under study.

Despotic leadership has been measured by using a six-item scale (De Hoogh, & Den Hartog, 2008). One of the sample item is “Is in charge and does not tolerate disagreement and questioning, gives orders”. The Cronbach’s Alpha is 0.80. Narcissism has been measured by using a nine-item scale based on (Jones and Paulhus 2014). One of the sample items is "I insist on getting the respect *Corresponding author (M. Bilal Kayani). Email: mbkiani@gmail.com ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02O http://TUENGR.COM/V11/11A02O.pdf DOI: 10.14456/ITJEMAST.2020.35

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I deserve”. The Cronbach’s Alpha is 0.72. Psychopaths have been measured by using a nine-item scale based on (Jones and Paulhus, 2014). One of the sample items is "I like to get revenge on authorities”. The Cronbach’s Alpha is 0.77. Machiavellianism has been measured by using nine-item scale based on (Jones and Paulhus, 2014). One of the sample items is “Make sure your plans benefit yourself, not others”. The Cronbach’s Alpha is 0.76. Organizational Justice is assessed by the Colquitt (2001) that is the self-administered version of the Organizational Justice Questionnaire (OJQ) exploring four domains but three domains have been taken in current study that is in consonance with past studies: procedural justice (6 items), with typical items such as “have those procedures been free of bias”; interpersonal justice (4 items), with typical items such as “has (he/she) treated you with dignity”; distributive justice (4 items), with typical items such as “is your (outcome) justified, given your performance”. The Cronbach’s Alpha is 0.74. The work meaningfulness has been measured by Ashmos and Duchon (2000). One of the sample items is “The work I do in this job is fulfilling.”, with Cronbach’s Alpha 0.71.

4. RESULTS 4.1 CORRELATION ANALYSIS From Table 1, no strong relationship between explanatory variables is found, which indicates a non-serious issue of multi-co-linearity. Variables have significant relationships e.g. despotic, psychopaths Machiavellianism and Narcissism have significant negative relationship with work meaningfulness but weak relationship is found. Despotic leadership is demonstrating negative correlation with Narcissism.

Table 1: Correlation of variables.

1 2 3 4 5 6

Variables 1 2 3 4 Despotic Leadership 1 Narcissism -0.468** 1 Psychopathy -0.362 0.084 1 Machiavellianism -0.028 -0.121** 0.078 1 Organizational Justice 0.032 -0.288** -0.122* -0.093 Follower’s Meaningful Work -0.035* -0.241** -0.146* -0.125* **. Correlation is significant at the 0.01 level (2-tailed). *. Correlation is significant at the 0.05 level (2-tailed).

5

6

1 -0.546**

1

4.2 REGRESSION ANALYSIS Table 2, results of regression analysis indicate that in step-1, Despotic Leadership has a negative and significant influence on follower's meaningful work as β = -0.046. Narcissism, Psychopathy, and Machiavellianism are also showing a negative impact on follower’s meaningful work as β = 0.030 for Narcissism and β = -0.034 for Psychopathy, β = -0.022 for Machiavellianism. Thus, the results in step-1 are showing the acceptance of H1, H2, H3, and H4.

In step-II, the results are showing that organizational justice moderates in the relationship between despotic leadership and follower’s meaningful work and it weakens the relationship of organizational justice with follower’s meaningful work. The interaction term (Org. Justice X Leader) has co-efficient 0.341. The interaction term (Org. Justice X Narcissism) is also significant (β = 0.135), which shows that Organizational justice is moderating in the relationship between narcissism and

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follower’s meaningful work in a way that it weakens the relationship when organizational justice is high. Moreover, the results are also showing that organizational justice has no moderating effect in relationship of Psychopathy and Machiavellianism with follower’s meaningful work. Thus H5 and H6 are accepted, but H7 and H8 are not accepted on the basis of the results of regression analysis.

Table 2: Model Regression Analysis.

Predictor(s) Step-I Constant Despotic Leadership Narcissism Psychopathy Machiavellianism Organizational Justice Step-II Org. Justice X Leader Org. Justice X Narcissism Org. Justice X Psychopathy Org. Justice X Machiavellianism

Coefficient β 0.034 -0.046** -0.030** -0.034** -0.022* 0.692*** 0.341** 0.135** -0.162 0.105

R2

ΔR2

p-value

<0.01 <0.01 <0.01 <0.05 0.696 <0.01 <0.05 0.789

0.093**

5. DISCUSSION The above results of correlation show that the first hypothesis “Despotic leadership has a significant negative relationship with work meaningfulness” is supported by the results but the weak relationship is found as (r= -0.035, p≤0.05). According to Ilies (2009); Eby et al. (2010); Nauman and Fatima (2018), despotic leadership disturbs the life satisfaction and inner satisfaction of the followers because it is considered as a social stressor in the form of emotional exhaustion. The social exchange theory Blau (1964) supported the above arguments in a way that social exchange relationships based on the reward system and cost-based analysis. If one party gives or sacrifices something the other party feels obliged to give something in return. The social exchange concept based on equality which means if you do not give favor to anyone you cannot expect any favor from others.

The second hypothesis “Narcissism has a significant and negative relationship with work meaningfulness” is also supported by the above correlation results as (r= -0.241, p≤0.01). According to Cramer and Jones (2008); Vaknin (2009), such self-focused personalities do not comply with their sense of making meaning from work and demand full obedience without asking any question which diminishes inner life satisfaction and work significance. They also lack empathy which shows the inability to share feelings of others while they have strong self-promoting motives. Boddy, Ladyshewsky et al. (2010) proposed that selfish leaders do not understand the needs, value, desires, and feelings of their employees and make difficult for the followers to make sense of work meaningfulness.

The third hypothesis “Psychopaths have a significant and negative impact on work meaningfulness” is supported by the results (r= -0.146, p≤0.05). According to Babiak and Hare (2006); Boddy, (2010), psychopaths create unnecessary organizational constraints, low levels of job satisfaction, increased workload, bullying characterized by conflicts and toxic work environments. In this way, it is very difficult for followers to ask a question regarding their work purpose and meaningfulness. They get motivation from their self-promotion and personal gain and they do not *Corresponding author (M. Bilal Kayani). Email: mbkiani@gmail.com ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02O http://TUENGR.COM/V11/11A02O.pdf DOI: 10.14456/ITJEMAST.2020.35

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show any concern regarding their followers which reduces the work meaningfulness.

The fourth hypothesis “Machiavellianism has a significant and negative relationship with work meaningfulness" is supported by the above results (r=-0.125, p≤0.05). Zettler, Friedrich et al. (2011) suggested, Machiavellians regulate authority on others and willing to manipulate and exploit others.

They are perceived as abusive by subordinates and focus on broadening power and resources for their personal gain. They do not feel bothered that their employees are satisfied or not and either the work is meaningful for them or not. In this way, employees reduce inner satisfaction.

Similarly, the fifth hypothesis “Organizational justice moderates the relationship between despotic leadership and work meaningfulness in such a way that it weakens the relationship when organizational justice is high” is supported by the regression as (β = 0.341 with P<0.01). According to Naseer et al., (2016), despotic leaders are unethical as they use unethical code of conduct and authoritarian. They are exploitative, vengeful, controlling and commanding and consider only their self-interest. In such circumstances, it is not possible for the followers to exactly understand the purpose and significance of the work due to which their work meaningfulness decrease. The organizational justice weakens the existing relationship by shaping positive attitude and behavior towards the organization as they perceive that organization is fair and focus on justice which increases inner satisfaction (Karakus et al., 2014).

Likewise, the sixth hypothesis “Organizational justice moderates the relationship between narcissism and work meaningfulness in such a way that it weakens the relationship when organizational justice is high” is supported by the regression as (β= 0.135 with P<0.01). According to Babiak and Hare, (2006); Boddy et al., (2010), narcissists are engaged in extreme form of directionless leadership, mismanagement and they interfere with various components of meaningfulness which reduces the sense of work meaningfulness in followers because they are unable to understand the purpose and significance of the work. In case, when employees perceive higher organizational justice where they receive merit-based promotions, fair compensations and other perquisites they become loyal to the organization and they improve their inner satisfaction.

The seventh hypothesis, “Organizational justice moderates the relationship between psychopaths and work meaningfulness in such a way that it weakens the relationship when organizational justice is high” is not supported by the regression as (β = -0.162 with P-value is greater than 0.05) while many past researches show the significant results. Data has been collected from the multi-field study of Pakistan. Pakistan based on collectivistic culture having high power distance i.e. Pakistan so the areas having high Power Distance always contain Authoritative leadership styles where all the decisions take place from the top management having the least participation of lower management.

At such places employees don't have right to takes part in decision making and knowledge sharing.

So that’s why the urge in employees to thrive for knowledge decreases and they just do their work what is assigned to them. They just focus on what they have rather than understanding the purpose and value of the work.

Similarly, the seventh hypothesis “Organizational justice moderates the relationship between Machiavellianism and work meaningfulness in such a way that it weakens the relationship when organizational justice is high” is not supported by the regression as (β = 0.105 with P-value is greater than 0.05) while past research shows the significant results. The cultural values always considered as the important aspect of societies and such societies wherein organizations there is high Power Distance from employees they always endorse their applications on employees without asking their

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comfort level. Employees of such organizations are mostly less intelligent emotionally and the urge in them to attain more knowledge for their advancement and promotions as well as to be in in-groups employees becomes decreases. Secondly, Pakistan comes in underdeveloped countries where poverty is very common and the unemployment rate is very high that is 5.8% (The Nation, 2019). The job opportunities are also very less. In such circumstances, it is very difficult for people to get job easily or to switch from one job to another. By considering all these circumstances, when people get job, they try hard to stay there without focusing that they are satisfied or not. In other terms they do not consider that work is significant for them or not. They just focus on the completion of the given tasks.

6. CONCLUSION In this research, the negative outcomes of dark leadership are discussed in the context of despotic leadership and dark personality triad. The current study is very important in a leadership point of view and it has both theoretical as well as practical implications. The current study has practical implications along with the theoretical implication because this study provides important predictor in the form of work meaningfulness that is very important to address. It is a multi-field study and different organizations e.g. health sector, business sectors, and many others can take it as guidance that how negative leadership or negative personality traits of supervisors affect the well-being and perception of employees. How leadership affects the attitude and behavior of employees. They can take help from this research in policymaking or strategies regarding leadership skills. They can understand that how leader's- follower's relationship can harm the work meaningfulness of the followers. The leaders might be asked to regulate their positive behavior at workplace to bring effective outcomes.

From a theoretical perspective, it contributes to the literature of dark leadership by showing that under which circumstances negative leadership affects the followers mainly their work meaningfulness. The particular dimensions of the work meaningfulness i.e. Purpose, significance, and coherence are discussed in this research which is a great contribution to the literature of work meaningfulness.

The cross-sectional data is used to conduct the study. There are many other constraints that need to cover in the future study. The sample size was very small with certain questions on the generalizability of the results.

The present study focuses on dark leadership. The despotic leadership and dark personality triad (Narcissism, Psychopaths, and Machiavellianism) are the predictors to check their impact on the followerâ&#x20AC;&#x2122;s work meaningfulness. The results show that the dark side of the leadership negatively impacts the well-being and behavior of employees. When employees perceive that leader has negative personality traits in which selfishness, aggression, ignorance, leader's personal interests, manipulating and exploiting employees are very common then employees work meaningfulness reduce because they are unable to understand the purpose of work, its significance and goal alignment as leaders demand unquestioned obedience from employees. In such circumstances, if employees perceive organizational justice then their positive emotions can be regulated.

7. AVAILABILITY OF DATA AND MATERIAL Data can be made available by contacting the corresponding author. *Corresponding author (M. Bilal Kayani). Email: mbkiani@gmail.com Š2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02O http://TUENGR.COM/V11/11A02O.pdf DOI: 10.14456/ITJEMAST.2020.35

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8. ACKNOWLEDGEMENTS Special thanks go to Mrs. Rabia Sarwat for helping clarify and improve the manuscript.

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Vaknin, S. (2009). Narcissism, Substance Abuse, and Reckless Behaviors, Retrieved Jan. Zettler, I., et al. (2011). "Dissecting work commitment: The role of Machiavellianism." Career Development International 16(1): 20-35.

Muhammad Bilal Kayani is an Assistant Professor at Army Public College of Management & Sciences, Rawalpindi, Pakistan. He is a Ph.D Scholar, Limkokwing University of Creative Technology, Cyberjaya, Malaysia. His research is Modern Management.

Ayesha Zafar is a Lecturer (Visiting Faculty), Army Public College of Management & Sciences, Rawalpindi, Pakistan.

She has done her MS in Management Sciences from Riphah International University Islamabad, Pakistan. Her research is Contemporary Management.

Muhammad Aksar is a Lecturer at Army Public College of Management & Sciences, Rawalpindi, Pakistan. He is a Ph.D scholar in Management Sciences at Capital University of Science and Technology, Islamabad. His research is Modern Management.

Shoaib Hassan is a Ph.D Scholar Department of Management Sciences, COMSATS University Islamabad, Pakistan. His research is Digital Management.

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M. Bilal Kayani, A. Zafar, M. Aksar, S. Hassan

©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies

International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies http://TuEngr.com PAPER ID: 11A02P

GENETIC DISTANCES AMONG EIGHT ORNAMENTAL CHICKENS BY MOLECULAR TECHNIQUE Yousif M.S. Al-Barzinji a b

a*

a

, Mohsin A. Ahmad , Bakhtiyar Khaild Saeed

b

Department of Animal Resources, College of Agriculture, Salahaddin University-Erbil, Erbil-IRAQ. Ashti Veterinarian Office, Ministry of Agriculture & Water Resources-Kurdistan Region, IRAQ

ARTICLEINFO

A B S T RA C T

Article history: Received 15 July 2019 Received in revised form 24 October 2019 Accepted 01 November 2019 Available online 19 November 2019

The aim present study is to determine genetic distances among three local ornamentals with five commercial ornamental chickens using ten RAPD primer and specific mitochondrial DNA locus. Twenty RAPD primers were used; ten out of them were selected based on their number of bands (NB) and polymorphic characteristics. A total of 66 bands observed, 55 of them are polymorphic bands among chicken Keywords: breeds, whereas overall bans 13 of them are unique bands whose Ornamental chicken; highest unique band was obtained in primer OPA-20 and OPM-06.

Mitochondrial DNA; RAPD-PCR; DNA locus; RAPD-PCR dendrograms show that the distance among ornamental RAPD primer; chicken arrived 50.29% and phylogenetic dendrograms showed that two Mitochondrial clusters, the first cluster branch consisted black and black-white local Cytochrome b; Genetic ornamental chicken, Silver Polish and Germany Phoenix Bantam with Distance test.

25.59% distance between them while the second cluster also including local black-barred, American white brahman, Sultan Belgian, and American Lamborghini with 17.83 % genetic distance between them.

The mitochondrial DNA dendrograms also show two main clusters among local and commercial ornamental chickens, the local black and black-white are in the first cluster while the local black-barred located at other clusters. It was concluded that the black, black-white was closer to each other. The high genetic distance 55.3% among breeds and variation in phenotypic shapes with different colors for ornamental chickens indicates that these local ornamental chickens have a good amount of genetic resources to made genetically improvement in further and it means the three local ornamental chickens are independent breeds.

Disciplinary: Multidisciplinary (Animal Sciences (Poultry Science), Biological Sciences (Genetics Science)). ©2020 INT TRANS J ENG MANAG SCI TECH.

1. INTRODUCTION The fowl date of domestication of fowl is about 2000 B.C in history and, in this during a long *Corresponding author (Yousif M.S. Al-Barzinji). Email: Yousif.Noori@su.edu.krd ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02P http://TUENGR.COM/V11/11A02P.pdf DOI: 10.14456/ITJEMAST.2020.36

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time, modifying breeds of fowl were expended to requirement the multipurpose need of meat and eggs. Depend on many studies carried out, it is found that all commercial chicken is descendent of the red jungle fowl, Gallus gallus [1-3]. The biotechnology technique developed from RAPD analyses has previously been used to make molecular diversity for zebrafish and honeybees and a Z chromosome map of chickens[4]. In recent years most of the native chicken in eradication by crossing with ecotypes this issue has been caused to more attention to saving biodiversity among poultry breeds [5]. The molecular marker of RAPD is used as fingerprint technique patterns for chicken, duck, turkey, and goose meats. The chicken meat was tested by the RAPD method to establish the effectiveness and specificity each species of chickenâ&#x20AC;&#x2122;s DNA samples [6, 7]. For finding out of biodiversity between Saudi chicken strains and other species of Gallus gallus has been used Mitochondrial Cytochrome b (Cyt b) which is efficient tool, not only the cytochrome c oxidase I but also, for separating among species has been used the short region of Cyt b gene was successfully accepted as a standard region in DNA barcoding, which would be supported efforts to construct a new library beside COI library [8, 9]. Cyt b has been considered one of the most useful genes for phylogenetic work and is used as a poultry DNA barcode tool, the evolutionary dynamics and Cyt b levels of genetic divergence typically associated with sister species, congeners, and confamilial genera usually are in a range in which the Cyt b gene is phylogenetically instructional and unlikely to be severely compromised by impregnation influence involving layover nucleotide shifts [8, 10, 11].

The aim this study is regional patterns of genetic diversity of ornamental chicken populations from Iraqi Kurdistan region, America and Europe were assessed using 10 oligonucleotide primers and partial gene of mitochondrial Cyt b.

Figure 1: Image of all ornamental chickens includes; 1: Local Black; 2: Local Black and White; 3: Local Black Barred;4: American White Brahman;5: Silver Polish; 6: Germany Phoenix Bantam; 7:Sultan Belgian and 8: American Lamborghini.

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Yousif M.S. Al-Barzinji, Mohsin A. Ahmad, Bakhtiyar Khaild Saeed

2. MATERIALS AND METHODS 2.1 SAMPLE COLLECTION AND DNA EXTRACTION Collection of blood samples and genomic DNA isolation 40 blood samples from each eight breeds in which the first 3rd breeds of them are native Iraqi Kurdistan region were collected, five last other breeds are related to different country ornamental Gallus gallus [12, 13], Figure 1. Then, the genomic DNA was isolated from each blood sample using QIAamp® DNA Blood Mini Kit, QIAGEN GmbH Qiagenstr.140724 Hilden Germany were examined using spectrophotometric analysis based on 260 and 280 nm absorbance and agarose gel electrophoresis analysis. DNA samples were stored at -22 C for use [7, 14].

2.2 RANDOM AMPLIFIED POLYMORPHIC DNA – POLYMERASE CHAIN REACTION (RAPD-PCR) For RAPD assay, a total of eight samples were investigated by 10 sets of RAPD primers (Table 1) were acquired from a study and were used to initiate the RAPD-PCR amplification[7, 15]. The primers have chosen, depend on the basis of GC content and base-pairing temperature for RAPD-PCR amplification. Amplifications were performed using a thermal cycler (MJ RESEARCH-PTC-200 Gradient Peltier Thermal Cycler ® 60- Well) with the final reaction volume of 20 μL. Two μL sample DNA was added to each tube to make the final volume (20 μL). Each reaction contained: 11 μL of Red Master Mix (AMPLIQON A/S Stenhuggervej 22-Germany), 25 Units/mL Taq polymerase, each dNTPs is 200 μM and MgCl2 was 1.5 mM), 2 μL of RAPD primer (197.13 μM–599.26 μM), 2 μL (30 ng) of DNA template and 5 μL of DNase free water. Many protocols were used but only one protocol gives as clearly bands. The primers (OPA-04, OPA-20, OPB-01, OPM-06, OPM-20, OPN-16, OPP-04, OPQ-03, OPQ-07 and 10 MER): programmed for 35 cycles of denaturation at 95 °C for 1 min, annealing at 37- 40 °C for 1 min and extension at 72 °C for 1.5 min. An initial denaturation step of 5 min at 95 °C and a final extension step of 7 min at 72 °C were included in the first and last cycles, respectively. The PCR amplification products were run in a 1.5% agarose gel (Staining with Ethidium bromide in Tris-borate EDTA buffer) and visualized under UV transillumination. The control reactions were set up without genomic DNA to avoid any DNA contamination (Figure 2) [12, 15, 16].

2.3 RAPD PHYLOGENETIC ANALYSIS The presence and absence of bands within each RAPD pattern were scored as 1 and 0, which were used to assess the genetic distance among populations. The presence or absence of bands in each RAPD pattern was recorded using RAPD molecular technique [1, 15]. The genetic distances and genetic similarities among different varieties of chickens between local strain (Black local chicken, black white local chicken, Barred local chicken) and foreign strain (American White Brahman, Silver polish chicken, Germany Phoenix Bantam Black, Sultan Belgian chicken, American Lamborghini chicken). The Jaccard's similarity coefficient for genetic diversity among isolates and evaluated for pairwise comparisons based on the proportion of shared bands produced by the primers. The similarity matrix was subjected to cluster analysis by an unweighted pair group method for arithmetic mean (UPGMA) and a dendrogram was generated [17].

*Corresponding author (Yousif M.S. Al-Barzinji). Email: Yousif.Noori@su.edu.krd ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02P http://TUENGR.COM/V11/11A02P.pdf DOI: 10.14456/ITJEMAST.2020.36

3

2.4 MITOCHONDRIAL DNA(CYTOCHROME B GENE) POLYMERASE CHAIN REACTION AND GEL ELECTROPHORESIS A pair of universal primers were used to amplify the partial sequence of the mitochondrial cytochrome b gene. Primers’ sequences were as follows: L14816 (5´-CCA TCC AAC ATC TCAGCA TGA TGA AA-3´), H15173 (5´-CCC CTC AGA ATG ATA TTT GTC CTC A-3´)which amplified 340 bp [18]. Reactions of PCR amplification have performed in a whole volume of 25 μL. Each reaction mixture contained: 12.5 μL AMPLIQON ® Master mix (A/S Stenhuggervej 22-Germany), 1 μL of each primer (10 μM), 8.5 μL RNAse/DNase free and 2 μL of DNA. PCR was carried out in a professional thermal cycler (MJ RESEARCH-PTC-200 Gradient Peltier Thermal Cycler ® 60- Well). The cycling conditions included a single initial denaturation at 95°C for 5 min followed by 35 cycles of 94°C for 30s (denaturation), 53.6°C for 45 s (annealing), 72°C for during 45 s (extension) and a final extension step at 72°C for during 7 min. PCR products (10 μl) were separated by 2% agarose gel electrophoresis at 80 V for 45 min. A 100 bp plus DNA ladder (Fermentas, Thermo Fisher Scientific, USA) have used to determine sizes of the band products. The resulting DNA fragments were visualized by UV transillumination (Figure 3) [1, 8, 10, 18]

2.5 MITOCHONDRIAL DNA (CYTOCHROME B GENE) PHYLOGENETIC ANALYSIS The DNA sequence was analyzed by Molecular Evolutionary Genetics Analysis (MEGA) software version X. [19]for sequence similarity among of eight sets of cytochrome b gene sequences of G. gallus to be find genetic distance between three sets of cytochrome b gene sequences ornamental Gallus native strains with other five-set of cytochrome b gene sequences ornamental Gallus foreign stains. Then for more emphasis, imported eight sets of partial cytochrome b gene sequences into nucleotide BLAST (http://blast.ncbi.nlm.nih.gov/Blast.cgi) to comparative alignment and phylogenetic analyses to retrieve similar and dissimilarity among of eight sets of cytochrome b gene sequences [20, 21].

2.6 DNA PURIFICATION AND DNA SEQUENCING Eight DNA fragment was excised from the gel using sterile, sharp cutter and purified using Zymoclean Gel DNA Recovery Kits (ZYMO RESEARCH, USA), according to the manufacturer’s instructions. Purified products were directly sequenced using both the forward and reverse primers of PCR amplification. The sequencing process was performed by the Korean Macrogen Company.

3. RESULTS 3.1 RAPD-PCR RESULTS The study results included the RAPD-PCR amplification and molecular distance analysis for ten short oligonucleotides primers in the RAPD technique in all chicken samples under study.

3.1.1 NUMBER (NB) AND SIZE OF BANDS (BP) The total of primers amplified is appeared clear bands and was to investigate the genetic variations among the eight ornamental chicken breeds. A total of primers was polymorphic overall chicken samples (Figure 2). The overall NB for the 10 oligonucleotides primes were 66 bands, ranged from 4 in primer OPP-4 to 12 bands in OPA-20 (Table 1). Results in this study were higher than reported by [14] have found 187 bands from 12 RAPD primers.

In Table 1, the bands' size range over all the chicken started from 150 bp and ended at 1500 bp.

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Yousif M.S. Al-Barzinji, Mohsin A. Ahmad, Bakhtiyar Khaild Saeed

The smallest size of bands has recorded for OPP-04 (150 bp) in all chickens, while the highest size bands range was recorded for primer OPQ-03 locus (1500 bp ) in Sultan Belgian and American Lamborghini chicken. Similar results were reported by [22], (2001) in [17] were the size range of band ranging from 237 to 3240/ bp.

3.1.2 NUMBER OF POLYMORPHIC BANDS (NPB) The overall % polymorphism band for 66 bands in this study was 79.46 and 55 of 66 bands are polymorphic bands; among the primers, the OPA-20 have higher band with higher polymorphic bands has arrived 100% (Table 1). Depended on above results, there is a possibility to recommended that these loci can be used to define genetic distances among the present native and commercial ornamental chickens. The results have agreed with than reported by [14] in Saudi and [16] in Bangladeshi chickens.

UNIQUE BANDS From ten oligonucleotides short primers seven of them have given a unique band. Overall unique bands from 66 bands got 13 bands for all ten RAPD primers. The highest numbers have obtained by primer OPA-20 (From 12 bands 3 of them are unique bands, ranging from 400 to 950 bp) and primer OPM-06 (From 8 bands 3 of them are unique bands, ranging from 350 to 750 bp) in Local Black Barred and American White Brahman ornamental chickens breed.

3.1.3

Figure 2: UPGMA dendrogram clarifies the differentiation between the eight chicken breeds.

3.2 PHYLOGENETIC TREE As in the dendrograms (Figure 2), the overall molecular genetic distance among local and commercial ornamental chicken breeds arrived 50.29% and two clusters were found, the 1st cluster branch consisted of two sub-cluster, the first subcluster including black and black and white local ornamental chicken with 25.59% distance between them, while the second sub-cluster including the Silver Polish and Germany Phoenix Bantam with 25.59% distance between them, the overall *Corresponding author (Yousif M.S. Al-Barzinji). Email: Yousif.Noori@su.edu.krd Š2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02P http://TUENGR.COM/V11/11A02P.pdf DOI: 10.14456/ITJEMAST.2020.36

5

genetic distance between this two sub-clusters arrived 9.11%.

Figure 3: Gel electrophoresis for 10 RAPD- Primers ornamental chickens. Where: 1: Local Black; 2: Local Black and White; 3: Local Black Barred;4: American White Brahman;5: Silver Polish; 6: Germany Phoenix Bantam; 7:Sultan Belgian and 8: American Lamborghini and C is the control.

The second cluster also has two sub-clusters, the first subcluster including Local Black Barred

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Yousif M.S. Al-Barzinji, Mohsin A. Ahmad, Bakhtiyar Khaild Saeed

and American White Brahman ornamental chicken with 17.83% distance between them, while the second sub-cluster including the Sultan Belgian and American Lamborghini with 17.83 % distance between them, the overall genetic distance between this two sub-clusters arrived 14.4%.

These results indicated that the black and black and white local ornamental chicken breed is most genetically distant from the Local Black Barred breeds (50.29 %), and the results indicated that the Local Black Barred breed was closer to White Brahman ornamental chicken (17.83 %) than to the local breeds and Silver Polish with Germany Phoenix Bantam. Similar results were reported by [23] in Comparison of Egyptian and Saudi Local Chickens chicken.

3.2.1 AMPLIFICATION OF CYTOCHROME B GENE All fragments of 340 bp in size have successfully amplified from chicken belonged to each of eight breeds [23] (Figure 3).

Table 1: Nucleotide sequence of selected random primers.

No. 1 2 3 4 5 6 7 8 9 10

Primer Name

Sequence (5 -3')

OPA-04 AATCGGGCTG OPA-20 GTTGCGATCC OPB-01 GTTTCGCTCC OPM-06 CTGGGCAACT OPM-20 AGGTCTTGGG OPN-16 AAGCGACCTG OPP-04 GTGTCTCAGG OPQ-03 GGTCACCTCA OPQ-07 CCCCGATGGT 10 MER AACGCGCAAC Overall

GC Content % 60 60 60 60 60 60 60 60 70 60 61

No. of amplified bands 7 12 4 8 7 5 4 6 8 5 66

No. of polymorphic bands 6 12 3 8 6 3 2 5 6 4 55

% Polymorphism

Size range (bp)

85.57 100 75 100 85.71 60 50 83.33 75 80 79.46

200-1000 350-1200 300-600 350-1000 300-750 220-1300 150-800 210-1500 250-1000 250-850 150-1500

Figure 4: Electrophoretic analysis of PCR product amplified with mt Cytb universal primer. Lane M: 100 bp plus DNA marker, Lane 1: Local Black , Lane 2: Local Black and white, Lane 3: Local black Barred, Lane 4: American White Brahman, Lane 5: Silver Polish, Lane 6: Germany Phoenix Bantam, Lane 7: Sultan Belgian, Lane 8: American Lamborghini and Lane C: Control . *Corresponding author (Yousif M.S. Al-Barzinji). Email: Yousif.Noori@su.edu.krd ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02P http://TUENGR.COM/V11/11A02P.pdf DOI: 10.14456/ITJEMAST.2020.36

7

3.3 PHYLOGENETIC MITOCHONDRIAL DNA Phylogenetic analysis based on the cytochrome b gene sequences from chickens belonged to eight variety breeds revealed that the local black and local black and white breeds were clustered with breed American Lamborghini. In contrast, the black-barred breeds were clustered with the chicken breed from the outside of Iraq (Figure. 5). The nucleotide sequence distance between eight examined breeds ranged from 0.00 to 0.074. There were no nucleotide sequence differences between breeds Local Black Barred, Silver Polish and Germany Phoenix Bantam. The results obtained from genotyping based on cytochrome b was in agreement with the results from the rapid procedure.

Figure 5: Mega X program has appeared phylogenetic positioning of ornamental G. Gallus of eight breeds of partial sequences of mtCyt b of 1: Local Black, 2: Local Black and white, 3: Local black Barred, 4: American White Brahman, 5: Silver Polish, 6: Germany Phoenix Bantam, 7: Sultan Belgian, and 8: American Lamborghini.

4. CONCLUSION The high genetic distance (50.29 %) and variation in phenotypic and colors for all samples indicate that these local ornamental chickens have a good amount of variation to make genetically improvement in further and it means the three local ornamental chickens are independent breeds.

Overall partial cytochrome b gene in the amount of 340 bp information, the molecular phylogenetic tree revealed that both local black color and local black and white color in same cluster are independent of others. The above results can be used by breeders to clarify the mapping of the genetic diversity of the local ornamental chickens and can depend on these results to make mating system or crossing among these chicken breeds or selection within/among ornamental chickens to speed up the performance in local ornamental chickens in Kurdistan.

5. AVAILABILITY OF DATA AND MATERIAL Data can be made available by contacting the corresponding author.

6. ACKNOWLEDGEMENT The authors thank all breeder persons who helped and supports during performing and doing this research paper on ornamental chickens in Iraqi-KRG.

7. REFERENCES [1] Yap, F.C., et al., Phylogenetic analysis of different breeds of domestic chickens in selected area of Peninsular Malaysia inferred from partial cytochrome b gene information and RAPD markers. Anim Biotechnol, 2010. 21(4): 226-40.

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[2] Lukanov, H., BALKAN CHICKEN BREEDS AND BREED GROUPS (PART I AND II). 2012.

1-16.

[3] Hillel, J., et al., Biodiversity of 52 chicken populations assessed by microsatellite typing of DNA pools. Vol. 35. 2003.

[4] Smith, E.J., et al., Use of randomly amplified polymorphic DNA markers for the genetic analysis of relatedness and diversity in chickens and turkeys. Poult Sci, 1996. 75(5): p. 579-84.

[5] M.M, F., et al., Genetic diversity of Saudi native chicken breeds segregating for naked neck and frizzle genes using microsatellite markers. Vol. 31. 2018.

[6] Calvo, J., P. Zaragoza, and R. Osta, Random Amplified Polymorphic DNA Fingerprints for Identification of Species in Poultry Pate. Vol. 80. 2001. 522-4.

[7] Ahmed, M., Y. Al-Barzinji, and L. Assad Ismail, Relatedness Among Three Native Geese in Erbil Governorate Using Hematological and Molecular Methods. Vol. 4. 2019.

[8] Yacoub, H.A., M.M. Fathi, and M.A. Sadek, Using cytochrome b gene of mtDNA as a DNA barcoding marker in chicken strains. Mitochondrial DNA, 2015. 26(2): p. 217-23.

[9] Dai, C., et al., Molecular phylogenetic analysis among species of Paridae, Remizidae and Aegithalos based on mtDNA sequences of COI and cyt b. Chinese Birds, 2010. 1(2): p. 112-123.

[10] Yacoub, H.A., et al., Molecular characterization of Saudi local chicken strains using mitochondrial DNA markers. Mitochondrial DNA, 2015. 26(4): p. 520-31.

[11] H.H, S., et al., Use of Randomly Amplified Polymorphic DNA (RAPD) Markers in Poultry Research. Vol. 4. 2005.

[12] Ali, I. and M. Dakheel, Detection of Genetic Diversity through Two Poultry Breeds by using RAPD-PCR Technique. 2018. 2016.

[13] Fathi, M.M., et al., Evaluation of genetic diversity of Saudi native chicken populations using microsatellite markers. Poult Sci, 2017. 96(3): p. 530-536.

[14] M Ibrahim, A., et al., Genetic characterization of local chicken from Taif region in Saudi Arabia using RAPD markers International Journal of Biosciences | IJB. Vol. 6. 2015. 142-148.

[15] Al-Jallad, T., W. Choumane, and M. Hmeshe, Characterization and Estimation of Genetic Diversity in Two Syrian Chicken Phenotypes Using Molecular Markers. Vol. 11. 2012. 16-22.

[16] Mollah, M.B.R., et al., Analysis of Genetic Diversity in Bangladeshi Chicken using RAPD Markers. Vol. 8. 2009.

[17] Dehghanzadeh, H., et al., Evaluation of Genetic Variability and Distances among Five Iranian Native Chicken Populations using RAPD Markers. Vol. 12. 2009. 866-71.

[18] Awad, A., Molecular Phylogeny of Some Avian Species Using Cytochrome b Gene Sequence Analysis. Vol. 16. 2015. 218-222.

[19] Tamura, K., et al., MEGA5: Molecular Evolutionary Genetics Analysis Using Maximum Likelihood, Evolutionary Distance, and Maximum Parsimony Methods. Molecular Biology and Evolution, 2011. 28(10): p. 2731-2739.

[20] Barhoum, D.N. and K.J.J.T.C. Burns, Phylogenetic relationships of the Wrentit based on mitochondrial cytochrome b sequences. 2002. 104(4): p. 740-749.

[21] Briolay, J., et al., Molecular phylogeny of Cyprinidae inferred from cytochrome b DNA sequences. Mol Phylogenet Evol, 1998. 9(1): p. 100-8.

[22] Sharma, D., et al., Genetic diversity among chicken breeds estimated through randomly amplified polymorphic DNA. Anim Biotechnol, 2001. 12(2): p. 111-20. *Corresponding author (Yousif M.S. Al-Barzinji). Email: Yousif.Noori@su.edu.krd Š2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02P http://TUENGR.COM/V11/11A02P.pdf DOI: 10.14456/ITJEMAST.2020.36

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[23] AS., H.M.a.A., Molecular Comparison of Egyptian and Saudi Local Chickens using RAPD Markers. Int J Anim Sci., 2018. 2(4): p. 1029.

Dr. Yousif M. S. Al-Barzinji is an Assistant Professor at the Department of Animal Resources, College of Agriculture Engineering Science, Salahaddin University-Erbil. His Animal Sciences research includes Animal Breeding/Molecular Genetics.

Mohsin Ali Ahmad is an Assistant Lecturer at Dept. of Animal Resources, College of Agriculture Engineering Science, Salahaddin University-Erbil. He holds a Master of Science degree. His research is General Biotechnology and Animal Biotechnology.

Bakhtiyar Khalid Saeed, an Assistance Veterinarian Doctor, works at Ashti Veterinarian Office under the Ministry of Agriculture and Water Resources in the Kurdistan Region of Iraq. He is Chief of Advocacy of Animal Rights Organization. He monitors Wildlife Animals in Kurdistan in Academic University and Researches.

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Yousif M.S. Al-Barzinji, Mohsin A. Ahmad, Bakhtiyar Khaild Saeed

©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies

International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies http://TuEngr.com PAPER ID: 11A02Q

FACTORS AFFECTING HEALTHCARE SECTOR INFLATION RATE IN IRAN'S PROVINCES FOR 2004-2015 a

Aziz Rezapour , Abedin Teimourizad

b*

a

, Maryam Soleimani Movahed ,

c

Tahereh Khazaei , Touraj Harati Khalilabad

b

a

Health Management and Economics Research Center, Iran University of Medical Sciences, Tehran, IRAN Department of Health Economics, School of Health Management and Information Sciences, Iran University of Medical Sciences, Tehran, IRAN. c Kermanshah University of Medical Sciences, Kermanshah, IRAN b

ARTICLEINFO

A B S T RA C T

Article history: Received 01 July 2019 Received in revised form 09 October 2019 Accepted 25 October 2019 Available online 19 November 2019

Control of the inflation rate is one of the goals of each country's macroeconomic policies. Usually, inflation rate in the healthcare sector is higher than public sector and reduces access to health services. This study examines the factors influencing healthcare sector inflation rate in Iran's provinces.

In this study, we used the econometric method (Generalized Method of Moments) to estimate the relationship between health sector inflation rate and its determinants in 30 provinces of Iran over 12 years (2004-2015). Data used in this study was collected through the national databases of Iran.

Results showed that general inflation rate, number of people covered by health insurance per 1000 population, number of dental practitioners per 1000 population, number of hospital beds per 1000 people and number of physicians per 1000 population had a positive and significant relationship with health sector inflation rate.

But healthcare sector inflation rate with a lag had positive and non-significant relationship. Also, GDP per capita had negative and significant relationship with health sector inflation rate.

Policy-makers in the health sector must control the factors affecting health sector inflation rate to reduce inequality in access to health care and increase the purchasing power in providing health services.

Keywords: Inflation rate control; Generalized Method of Moments; Access to health care; Healthcare services purchasing power; Hospital services; Hospital cost.

Disciplinary: Healthcare Management. ©2020 INT TRANS J ENG MANAG SCI TECH.

1. INTRODUCTION The inflation rate is always considered as an important indicator in economic contexts [1]. In fact, Control of the inflation rate is one of the goals of each country's macroeconomic policies. health system is one of the major sectors of each country that affect economy and its determinants [2]. Due to its specific characteristics of health sector, usually health care inflation rate was higher than general *Corresponding author (Abedin Teimourizad) Email: teimourizada@iums.ac.ir ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02Q http://TUENGR.COM/V11/11A02Q.pdf DOI: 10.14456/ITJEMAST.2020.37

1

inflation rate. In fact, pattern of inflation in the health services sector shows that the price of hospitals and medical services has grown faster than inflation in other sectors [3].

According to different studies, several factors affect health sector inflation rate including population age, population composition, population growth, general inflation, health insurance coverage, technological changes, low productivity growth, rising people's income, the number of physicians, dentists, pharmacists and hospital beds [4,5].

In general, rising health sector inflation rate affects health care services through increasing the general inflation rate and reducing the purchasing power in the access of low-income groups and the elderly to the health care services [6].

We should consider that the growth of the health sector inflation rate is different from the growth of health expenditure. In fact, health expenditure is the amount of money spent on the volume and cost of health services [7].

Therefore, studying factors affecting the health sector inflation rate helps policymakers to control price growth and improve the purchasing power of the people's health. This study examines the factors influencing health sector inflation rate in Iran's provinces between 2004 and 2015.

2. METHOD The present study was a descriptive-analytical study that examined the relationship between health sector inflation rate and its determinants in 30 provinces of Iran between 2004 and 2015. Data used in this study was collected through national databases of Iran, including the Central Bank of the Islamic Republic of Iran, Statistical Center of Iran, and Center for Statistical and Information of Iran's Ministry of Health and Medical Education.

The basic model used to determine the effective factors on health sector inflation rate was adopted from Cebula’ study [5] as follows:

LHIit = αi + LHIit (-1)+ β1 LPIit + β2 LINSURit + β3 LGDPit + β4 LPHYit + β5 LDENit + β6 LBEDit + uit

(1),

where LHIit and LHIit (-1) are inflation in the health sector and its interval respectively. Also, LPIit is the general inflation rate. Additionally, LINSUR represents logarithm of the coverage rate of health insurance, LGDPit denotes Real GDP per capita logarithms of the provinces. Also, LPHYit, LDENTit, and LBEDit represent logarithm of the number of doctors, dentists and hospital beds per 1000 population in each respectively. The symbol i identifies a province and t time period (2004-2015).

The last term uit is the error term.

In this model, all included variables were in the form of natural logarithms in order to calculate the elasticity. To estimate the regression model, dynamic econometric models have been used with panel data (hybrid). The dynamics in these patterns mean that the dependent variable will appear by a lag on the right side of the model. In this case, the least-squares estimators (OLS) are no longer compatible. So, we must use two-step estimation methods or GMM (Generalized Method of Moments). In fact, for estimating models in which their unobservable effects in each country and the presence of interruptions in the dependent variables in the explanatory variables is a fundamental problem, the Generalized Method of vector, which is based on the dynamic model of the panel is used. Also, another use of this estimate is when the number of sections is more than time period. In this study, the number of provinces (N =30) is greater than the number of studied years (T=12).

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Aziz Rezapour, Abedin Teimourizad, Maryam Soleimani Movahed, Tahereh Khazaei, Touraj Harati Khalilabad

To estimate the model by this method, first, it is necessary to specify the tool variables and stationary of the variables in the model. To test the stationary of the variables, Levine, Lynn and Chow's (2015) (LLC) Test was used. Also, the compatibility of the GMM estimator depends on the reliability of the assumption of the serial non-correlation of error sentences and tools, which can be tested by two tests.

The first test is the Sargan test as a pre-determined constraint that tests the validity of the tools.

The second is M2 statistics that test the existence of a second-order serial correlation in the first-order differential error statements. The non-rejection of the zero hypotheses in both tests provides evidence of the assumption of serial uncertainty and reliability of the tools. In fact, the GMM estimator is compatible if the second-order serial correlation in the error statements does not exist from the first-order differential equation [8-10].

Finally, Eviews 10 software was used to estimate the model. Results of the estimations, including the coefficient of influence of independent and significant variables, were analyzed and interpreted at a 95% confidence level.

3. RESULT

inflation rate (%)

According to the period of this study, the trend in health and public sector inflation rate of Iran showed that the health sector inflation rate has always been higher than the public sector ones. In recent years, raising the exchange rate, implementation of the Iranian targeted subsidy plan, as well as reducing government allocated credits to the health sector have been among the factors affecting the sharp increase of health sector inflation rate from 17.2% to 38.4%.

Figure 1: Trend of inflation rate in health and public sector in Iran (2004-2015).

In this regard, the results showed that among all provinces of the country, the province of Tehran had the highest number of beds, physicians and nurses by 34015, 972 and 355 respectively in 2015.

Also, the lowest number of beds was 581 for the province of the South Khorasan in 2004. As well as, Hormozgan and the North Khorasan provinces by 3 and 77 respectively, had the lowest number of pharmacists and physicians in 2009.

In this study, the LLC test was used to examine the stationary of the variables. The results of this test showed that all variables, except GDP per capita, are stable in level. So, GDP per capita was stabled by one-time differentiation. The result of the stationary of the variables is reported in Table 1. *Corresponding author (Abedin Teimourizad) Email: teimourizada@iums.ac.ir Š2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02Q http://TUENGR.COM/V11/11A02Q.pdf DOI: 10.14456/ITJEMAST.2020.37

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Table 1: LLC tests results to check the stationary of the variables Variables LHI LPI LHINSU LGDP LPHY LDENT LBED

Evaluation method Fixed value Fixed and Trend value Fixed value Fixed and Trend value Fixed value Fixed and Trend value Fixed value Fixed and Trend value Fixed value Fixed and Trend value Fixed value Fixed and Trend value Fixed value Fixed and Trend value

t- statistics -3.01 -2.14 -1.58 -2.22 -22.58 -14.93 1.32 -1.59 -1.69 -27.78 -40.79 -15.62 -1.5 -25.81

Probability <0.001 <0.001 <0.001 <0.001 <0.001 <0.001 0.9 0.055 0.044 <0.001 <0.001 <0.001 <0.001 <0.001

Stationary status Static Static Static Static Static Static Non-Static Non-Static Static Static Static Static Static Static

Flowingly, the GMM method was used to estimate regression and the result is shown in Table 2.

Accordingly, the health sector inflation rate with a lag had a positive and non-significant relationship with the main value of the health sector inflation rate.

Also, the general inflation rate, number of people covered by health insurance per 1000 population, number of dental practitioners per 1000 population, number of hospital beds per 1000 people and number of physicians per 1000 population had a positive and significant relationship with health sector inflation rate. Also, the relationship between GDP per capita and health sector inflation rate was negative and significant.

In addition, the highest value of coefficients of health sector inflation rate with a lag showed that this variable had the greatest impact on the health sector inflation rate. Coefficients of all variables of the model were statistically estimated at a 95% level.

Also, the results of the Sargan test showed that there is no correlation between the tool variables of the model and the number of residuals. This means that the tool variables are valid in the model. In addition, results of the Arlano and Band test showed that the estimation method was suitable for this model regarding the existence of first-order serial Auto-Correlations and the absence of second-order serial Auto-Correlations.

Also, the result of the Wald test rejects the assumption of being zero of all coefficients at a significant level of 5%. Therefore, all coefficients of the model are valid.

Table 2: Model Estimation Results Using Generalized Method of Moments (GMM) Variable C LHI(-1) LPI LGDP LPHYS LDENT LBED LINSUR

Coefficients t 1.4 9.2 1.14 2.2 1.1 7.02 -0.09 1.9 0.1 -10.2 0.08 4.32 1.12 9.74 1.01 11.25 Diagnostic tests: Test Value Sargan test 17.9 AR(1) -1.94 Arellano-Band test for Autocorrelation AR(2) -1.80 Wald test 100711.25

4

P-value 0.1 0.1 0.01 <0.001 <0.001 <0.001 <0.001 <0.001 P-value 0.2 <0.001 0.4 0.01

Aziz Rezapour, Abedin Teimourizad, Maryam Soleimani Movahed, Tahereh Khazaei, Touraj Harati Khalilabad

4. DISCUSSION According to the results of this study, the positive and non-significant relationship between the amount with the interruption of health sector inflation rate and the main value of this indicator shows the dynamism of the model which was studied. This means that the increase in health sector inflation rate in the previous period will lead to an increase in this indicator in the current levels.

Also, general inflation rate had a positive and significant relationship with the health sector inflation rate. Because when price of inputs or commodities grows, the cost of providing health care increases as well. In fact, rising general inflation rates restrict equitable access to health services and lead to inflation rate in health sector [6,11,12].

Another variable that had a positive and significant relationship with health sector inflation rate was the number of people covered by health insurance. Due to high-coverage of health insurance and the moral hazard phenomenon, demand for high- tech medical services can be increased. As a result, it would lead to higher health sector inflation rate [13, 14].

In addition, results of this study showed that there is a positive and significant relationship between the number of physicians Which reflects this fact that by increasing in the number of physicians and their desire to make more money and because of asymmetric information between doctor and patient, induced demand creates and the volume and variety of tests and therapies increases. Ultimately, the price of health care provided to people would enhance [6].

Also, there is a positive and significant relationship between the number of dentists and health sector inflation rate. Because dental care has a high price elasticity, insurance companies are reluctant to cover it. This issue and also asymmetric information between patient and dentists, lead to rising induced demand and out of pocket payments for these services. Finally the health sector inflation rate increases [15-17].

According to the results of this study, GDP per capita had a negative and significant relationship with health sector inflation rate. In many economic texts, it has been mentioned that "we will have inflation if the growth rate of income or GDP per capita is at a fraction above the productivity growth rate." In the health sector, if the medical tariffs rise more than productivity growth by pressure from non-governmental organizations which has the right to set tariffs, we will have inflation [1,4].

There is also a positive and significant relationship between the number of hospital beds and health sector inflation rate. In fact, increasing the number of hospital beds will lead to an increase in hospital supporting services costs (such as maintenance, equipment, repairs, materials and personnel cost, etc.). Also, according to Roemer's law, rising the number of hospital beds has led to an increase in bed use and a greater willingness of patient to stay in the hospital for long periods of time. Finally these issues cause increase in the cost of providing hospital services and the health sector inflation rate [18,19].

5. CONCLUSION This study showed that the most important factors which affect Iran's provinces' health sector inflation rate were a number of doctors, dentists, hospital beds, people covered by health insurance, general inflation rate and also rising health sector inflation rate in the previous periods.

But growing GDP per capita will reduce the health sector inflation rate. Therefore, policy-makers in the health sector must control the factors affecting the health sector inflation rate to *Corresponding author (Abedin Teimourizad) Email: teimourizada@iums.ac.ir Š2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02Q http://TUENGR.COM/V11/11A02Q.pdf DOI: 10.14456/ITJEMAST.2020.37

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reduce inequality in access to health care and increase the purchasing power of health services.

6. AVAILABILITY OF DATA AND MATERIAL Data can be made available by contacting the corresponding author.

7. ACKNOWLEDGMENT The authors would like to acknowledge Iran University of Medical Sciences for financial support of this research (grant No. 96-01-136-30068 with Ethical Code No. IR.iums.rec1396.30068).

8. REFERENCES [1] Wynarczyk, P., Snowdon, B., & Vane, H. (1994). A modern Guide to macroeconomics: An introduction to competing schools of thought. VT Edward Elgar.

[2] Ahmadi, A.Y.M., & Fazayeli, S. (2009). Changes in consumer price index in the health sector in Iran.

Econ Res Q Publ, 35(1): 99-111.

[3] Folland, S., Goodman, A.C., & Stano, M. (2007). The economics of health and health care: Pearson Prentice Hall Upper Saddle River, NJ .

[4] Branson, W.H. (1979). Macroeconomic theory and policy.

[5] MEHRARA, M., & Fazaeli, A. A. (2009). A Study on Health Expenditures in Relation with Economics Growth in Middle East and North Africa (MENA) Countries. Journal of Health Administration, 12(35): 49-60.

[6] Cebula, R.J. (1998). Determinants of the inflation rate of the health care CPI in the US. Applied Economics Letters, 5(1):47-9.

[7] Teimourizad, A., Hadian, M., & Rezaei, S. (2014). Rad EH. Health Sector Inflation Rate and its Determinants in Iran: A Longitudinal Study (1995â&#x20AC;&#x201C;2008). Iranian journal of public health, 43(11):1537.

[8] Arellano, M., & Bond, S. (1988). Dynamic panel data estimation using PPD: a guide for users: Institute for Fiscal Studies London.

[9] Arellano, M., & Bover, O. (1995). Another look at the instrumental variable estimation of error-components models. Journal of econometrics, 68(1):29-51.

[10] Blundell, R., Bond, S. (2000). GMM estimation with persistent panel data: an application to production functions. Econometric reviews, 19(3):321-40.

[11] Arnett III, R.H., McKusick, D.R., Sonnefeld, S.T., & Cowell, C.S. (1986). Projections of health care spending to 1990. Health Care Financing Review, 7(3):1.

[12] Smith, S., Newhouse, J.P., & Freeland, M.S. (2009). Income, insurance, and technology: why does health spending outpace economic growth? Health Affairs, 28(5):1276-84.

[13] Pentecost, M.J. (2004). Health care inflation and high-tech medicine: a new look. Journal of the American College of Radiology, 1(12):901-3.

[14] Reddy, K.S., Patel, V., Jha, P., Paul, V.K., Kumar, A.S., Dandona, L., et al. (2011). Towards achievement of universal health care in India by 2020: a call to action. The Lancet, 377(9767):760-8.

[15] Yan, F., Raven, J., Wang, W., Tolhurst, R., Zhu, K., Yu, B., et al. (2011). Management capacity and health insurance: the case of the New Cooperative Medical Scheme in six counties in rural China.

The International Journal of Health Planning and Management, 26(4):357-78.

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Aziz Rezapour, Abedin Teimourizad, Maryam Soleimani Movahed, Tahereh Khazaei, Touraj Harati Khalilabad

[16]

Chirico, G. (2013). Price competition in health care: An empirical analysis of Swedish dental care .

[17] Mueller, C.D., & Monheit, A.C. (1988). Insurance coverage and the demand for dental care: Results for non-aged white adults. Journal of Health Economics, 7(1):59-72.

[18] Delamater, P.L., Messina, J.P., Grady, S.C., WinklerPrins, V., & Shortridge, A.M. (2013). Do more hospital beds lead to higher hospitalization rates? a spatial examination of Roemer’s Law. PloS one, 8(2):e54900.

[19] Boussabaine, H., Sliteen, S., & Catarina, O. (2012). The impact of hospital bed use on healthcare facilities operational costs: The French perspective. Facilities, 30(1/2):40-55.

Dr. Aziz Rezapour is an Associate Professor of Health Economics, Department of Health Economics, School of Health Management & Information Sciences in Iran University of Medical Sciences. He is also Manager of Health Management and Economics Research Center at Iran University of Medical Sciences, Tehran, Iran. His research is Modern Health Economics and Management.

Abedin Teimourizad is a PhD student at the Department of Health Economics, School of Health Management and Information Sciences in Iran University of Medical Sciences. His research involves Factors Affecting Health Sector (Health Economics).

Dr.Maryam Soleimani Movahed is an Assistant Professor of Economics, Department of Health Economics, School of Health Management & Information Sciences, Iran University of Medical Sciences. Also, She is a researcher in the Health Management and Economics research center, Iran University of medical sciences. Her research is Digital Health Management.

Dr.Tahereh Khazaei is an Assistant Professor of Economics, Department of Health Economics, School of Health Management & Information Sciences in Kermanshah University of Medical Sciences. Also, She is a researcher in the Health Management and Economics Research Center in Kermanshah University of Medical Sciences. Her research is Critical Health Management.

Tooraj Harati Khalilabad is a PhD student at the Department of Health Economics, School of Health Management and Information Sciences in Iran University of Medical Sciences. His research is Strategic Health Economics.

Trademarks Disclaimer: All product names including trademarks™ or registered® trademarks mentioned in this article are the property of their respective owners, using for identification and educational purposes only. The use of them does not imply any endorsement or affiliation.

*Corresponding author (Abedin Teimourizad) Email: teimourizada@iums.ac.ir ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02Q http://TUENGR.COM/V11/11A02Q.pdf DOI: 10.14456/ITJEMAST.2020.37

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©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies

International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies http://TuEngr.com

PAPER ID: 11A02R

A DEVELOPMENT OF THE EXPERIMENTAL HEAT EXCHANGER FOR OBTAINING ENERGY FROM PHASE TRANSITION WATER-ICE Irina Ershova

a*

a

a

a

, Alexey Vasilyev , Gennady Samarin , Dmitry Tikhomirov , b

c

Dmitry Normov , Vyacheslav Ruzhyev , Mikhail Ershov

d

a

Federal Scientific Agroengineering Center VIM, 1-y Institutsky proezd, 5, Moscow, Russian Federation.

Department of Physics, Kuban State Agrarian University named after I.T. Trubilin, Krasnodar region, Russian Federation. c Department of Technical Systems in Agribusiness, Faculty of Technical Systems, Service and Energy, St.Petersburg State Agrarian University, Srednya, Pushkin, Saint-Petersburg, Russian Federation. d Pharmasyntez Group, Presnenskaya Emb, 1, Moscow, Russian Federation. b

ARTICLEINFO

A B S T RA C T

Article history: Received 15 May 2019 Received in revised form 06 September 2019 Accepted 12 September 2019 Available online 19 November 2019

In this article, the functional and technological scheme of experimental installation for receiving energy of phase transition water-ice is described. For assessment of initial requirements to the heat exchanger for receiving energy of phase transition water-ice and at its design pilot studies on heatphysical and electrophysical parameters of the heat carrier (salt solution of water) which were executed with use of electrophysical impact – an electromagnetic field of the 800 W super-high frequency, magnetron frequency 2450 MHz, and electro-hydro pressure by strength of 35-46 kV, electric capacity 0.2 microfarad are executed. Initial requirements to the heat exchanger are developed for receiving the energy of phase transition water-ice for heating of an agricultural object of 100 sq.m.

Keywords: Heat exchanger; Energy of phase transition water-ice; Electrophysical impact; Electromagnetic field of super-high frequency; Electrohydropressure.

Disciplinary: Energy Sciences, Physics (Thermodynamics). © 2020 INT TRANS J ENG MANAG SCI TECH.

1. INTRODUCTION The carried-out patent search showed the development of a design of the thermal pump and obtaining energy of phase transition water-ice – topical issues. Patent search in the VOIS website showed that now researches on the use of energy of phase transition water-ice are conducted, so, in Russia 258 patents on this subject are taken out. The European Patent Office specifies that the countries showing interest (in the percentage of the taken-out patents) that China is the highest 58% while Korea, UK, and Germany equally (Figure 1). *Corresponding author (I.Ershova). Tel: +7-9196538818. E-mail: eig85@yandex.ru ©2020 International Transaction Journal of

Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.1 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02R http://TUENGR.COM/V11/11A02R.pdf DOI: 10.14456/ITJEMAST.2020.38

1

This research objective is to develop initial requirements for the heat exchanger of experimental installation for obtaining energy of phase transition water-ice.

2. FUNCTIONAL AND TECHNOLOGICAL SCHEME OF THE EXPERIMENTAL EXAMPLE OF THE HEAT-EXCHANGING EQUIPMENT The experimental example which excludes the need for difficult and expensive mounting of external underground or underwater heat-exchanging circuits is developed.

On the basis of an energy-saving system, the functional and technological scheme of experimental installation is developed for receiving energy of phase transition water-ice (Figure 2) (Vasiliev et al, 2018).

5.20%

5.20%

5.20%

10.50% 57.90% 15.80% China

Canada

Japan

Korea

Great Britain

Germany

Figure 1. Distribution of the taken-out patents over the countries for use of energy of phase transition water-ice.

Figure 2: Functional and technological scheme of the heat-exchanging equipment: 1 – the heat exchanger with additional capacities for electrophysical processing of salt solution and for collecting ice, 2 – a solar collector, 3, 7, 10 – the circulation pump, 4 – the compressor, 5 – the condenser, 6 – the throttle gate, 8 – the consumer is warm, 9 – the consumer of cold.

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I.Ershova, A.Vasilyev, G.Samarin, D.Tikhomirov, D.Normov, V.Ruzhyev, M.Ershov

Coldwater is used, for example, for cooling of milk after pasteurization as the consumer of cold (Vasilev & Tutunina, 2018).

3. PILOT STUDIES IN HEATPHYSICAL AND ELECTROPHYSICAL PARAMETERS OF THE HEAT CARRIER The carried-out state-of-the-art review of the existing data of dependence of heat physical properties of the solutions which are exposed to electrophysical impacts allowed drawing the following conclusion. Heatphysical parameters heat carriers (freezing temperature, thermal diffusivity, solubility of salt, density) – water and salt solutions of various concentration and also electrophysical parameters (for example, specific conductivity), change at external electrophysical processing, for example, at influence of electric field (including electrofreezing), magnetic field (Chubik & Maslov, 1970; Vasilev & Tutunina, 2018; Dykstra, 1999).

Freezing temperature, оС

0 0

30

60

90

120

150

-5

-0.6 -0.6 -0.6 -3.1 -3.1 -3.1 -6.7 -6.7 -6.7

-0.6 -3.1 -6.7

1%

-10

-11.1 -11.1 -11.1

-11.1

5% 10%

-15

-20

-16.6

15% -18.5 -18.5

20% 23,10%

-21.2 -23

-25

-18.5

-24

tap water -25

-30

EM microwave oven processing time, sec.

Figure 3: Definition of Tz solution when processing EMP microwave oven

3.1 INFLUENCE OF AN ELECTROMAGNETIC FIELD OF SUPER-HIGH FREQUENCY (VERY HIGH-FREQUENCY EMP) At influence of EMP of a very high frequency 800 W (Mystery MMW-2315G microwave oven), with a frequency of magnetron of 2450 MHz, a processing time 30 with, 60 with, 120 with, on tap water and water solution of chloride of sodium concentration higher than 20% are observed solution freezing fall of temperature. The freezing temperature was determined by the refractometer (Vasiliev et al, 2016; Ershova et al, 2016). Fall of the temperature of freezing for solution concentration of 20% *Corresponding author (I.Ershova). Tel: +7-9196538818. E-mail: eig85@yandex.ru ©2020 International Transaction Journal of

Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.1 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02R http://TUENGR.COM/V11/11A02R.pdf DOI: 10.14456/ITJEMAST.2020.38

3

happens to-16.6 to-18.5 ° C, for eutectic solution fall of temperature of freezing -21.2 to -25 ° C (Figure 3) concentration of 23.1%.

At the impact of EMP microwave oven on solution increase in ph of solution (Figure 4) is observed. Values defined by ph-meter. The maximum increase in ph happens for a 5% solution (to 5.7 to 6.5). ph of 20% solution increased from 6.2 to 6.4.

ph

0

30

60

90

120

150

8 7.5

7.3

7.3

7.4

7.5

1% 5% 10%

7

15% 6.5 6

6.2 6.2 6.2 6.1 6 5.9 5.7

6.4 6.3 6.2

6.5 6.4

20% 23,10% tap water

5.5 EM microwave oven processing time, sec.

Figure 4: Definition of ph when processing EMP microwave oven.

The specific conductivity when processing EMP microwave oven of tap water and salt solutions was determined by the conductometer (Figure 5). The specific conductivity of 15% salt solution decreased from 1451 to 1262 micromho/cm.

The matrix of planning of an experiment on the optimization of the modes of regulation of electrophysical impact on the salt solution is made.

Using a technique of three-factorial active planning of an experiment of type 23 and the Statistic V5.0 program the following surfaces of responses and their two-dimensional sections in isolines are constructed: temperatures of freezing, acidity and specific conductivity of a salt solution (Figures 6, 7, 8) (Spirin & Lavrov, 2004).

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I.Ershova, A.Vasilyev, G.Samarin, D.Tikhomirov, D.Normov, V.Ruzhyev, M.Ershov

Remote conductivity, Âľs/cm

0

1500 1400

1300

30

60

90

1451 1444 1401 1350 1366 1389 1351 1425 1343 1373 1348 1331

1200

120

150

1312 1310 1262 1232 10%

1100

15%

1000

20% 23,10%

900

tap water

800 700

600

527

560

587

610

500 EM microwave oven processing time, sec.

Figure 5: Determination of specific conductivity when processing EMP microwave oven.

Figure 6: Two-dimensional sections in isolines and a surface of a response of three-factorial model of the temperature of freezing of solution depending on the processing time of EMP microwave oven and concentration of solution *Corresponding author (I.Ershova). Tel: +7-9196538818. E-mail: eig85@yandex.ru Š2020 International Transaction Journal of

Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.1 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02R http://TUENGR.COM/V11/11A02R.pdf DOI: 10.14456/ITJEMAST.2020.38

5

Empirical expression of the model of freezing temperature of solution depending on the processing time of EMP microwave oven and concentration of a solution: tз = -0.6693-0.0018∙τ-0.1037∙с+6.5789∙10-5∙τ2-0.0013∙τ∙с-0.0353∙с2

(1).

Figure 7: Two-dimensional sections in isolines and a surface of a response of three -factorial model of acidity of solution depending on the processing time of EMP microwave oven and concentration of a solution

Figure 8: Two-dimensional sections in isolines and a surface of a response of three-factorial model of specific conductivity of solution depending on the processing time of EMP microwave oven and concentration of a solution Empirical expression of the model of specific conductivity of solution depending on the processing time of EMP microwave oven and concentration of a solution:

 = 778.8615-0.7394∙τ+68.1052∙с+0.0062∙τ2-0.0643∙τ∙с-1.6739∙с2 6

I.Ershova, A.Vasilyev, G.Samarin, D.Tikhomirov, D.Normov, V.Ruzhyev, M.Ershov

(2).

3.2 INFLUENCE ELECTROHYDRO-(EH) PRESSURE The matrix of planning of an experiment on optimization of the modes of regulation of impact of EMP microwave oven on the salt solution is made (Belov, 2018).

Using a technique of three-factorial active planning of an experiment of type 23 and the Statistic V5.0 program the following surfaces of responses and their two-dimensional sections in isolines are constructed: temperatures of freezing, acidity and specific conductivity of a salt solution (Figures 9, 10, 11) (Spirin & Lavrov, 2004).

Figure 9: Two-dimensional sections in isolines and a surface of a response of three -factorial model of the freezing temperature of solution depending on the number of categories (EH pressure) and concentration of a solution.

Empirical expression of the model of freezing temperature of solution depending on the number of categories (EH pressure) and concentration of solution: tз = 2.4317-0.0236∙n-1.9994∙с+0.0002∙n2-0.0002∙n∙с+0.0435∙с2

(3)

Empirical expression of model of acidity of solution depending on the number of categories (EH pressure) and concentration of a solution: ph = 7.2486+0.0028∙n-0.0391∙с-3.0053∙10-18∙с2+0.0004∙n∙с-0.0009∙с2

(4)

Empirical expression of the model of specific conductivity of solution depending on the number of categories (EH pressure) and concentration of solution:



= 446.3868+0.0242∙n+96.8422∙с+3.655∙10-5∙c2-0.0715∙n∙с-2.2771∙с2

*Corresponding author (I.Ershova). Tel: +7-9196538818. E-mail: eig85@yandex.ru ©2020 International Transaction Journal of

Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.1 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02R http://TUENGR.COM/V11/11A02R.pdf DOI: 10.14456/ITJEMAST.2020.38

(5)

7

Figure 10: Two-dimensional sections in isolines and a surface of a response of three-factorial model of acidity of solution depending on the number of categories (EH pressure) and concentration of the solution.

Figure 11: Two-dimensional sections in isolines and a surface of a response of three-factorial model of specific conductivity of solution depending on the number of categories (EH pressure) and concentration of the solution.

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I.Ershova, A.Vasilyev, G.Samarin, D.Tikhomirov, D.Normov, V.Ruzhyev, M.Ershov

4. THE SCHEME OF THE HEAT EXCHANGER OF EXPERIMENTAL INSTALLATION FOR OBTAINING ENERGY OF PHASE TRANSITION WATER-ICE We apply as the heat carrier in a tank the 4th salt solution concentration of 20% which freezing temperature is -16.6°C. After processing of EMP of a very high frequency (the Mystery MMW-2315G microwave oven, magnetron frequenc y 2450MHz, rated power 800 W) salt solution which freezing temperature will be -18.5°C comes to the heat exchanger tank #2 (Figure 12).

Figure 12: The scheme of the heat exchanger of experimental installation for obtaining energy of phase transition water-ice: 1 – a tank for collecting ice, 2 – a heat exchanger tank, 3 – a corrugated hose (silicone tubes) in which freon circulates, 4 – a tank for electrophysical processing of salt solution (the field microwave oven reducing water freezing temperature) .

5. INITIAL REQUIREMENTS TO THE HEAT EXCHANGER OF EXPERIMENTAL INSTALLATION FOR OBTAINING ENERGY FROM PHASE TRANSITION WATER-ICE The initial requirements to the heat exchanger of experimental installation for receiving the energy of phase transition water-ice allowing to execute preparation of sketches and to make an experimental example are set.

By the estimation, it is established that for heating of an agricultural object of 100 sq.m the power of heat power equipment will be 12.8 kW, in day 306 kW/h.

The required volume of ice: 3602.8 l of ice.

The volume of ice production of the heat exchanger is 150.1 l ice/hour.

Tank volume for collecting ice will be 2 m3, heat exchanger tank volume with silicone tubes of 3 x 2 m3, tank volume for electrophysical processing of solution is 1 m3, the total amount of a tank of the heat exchanger 5 m3 .

Processing of EMP of a very high frequency happens in a tank 4, at the same time, the *Corresponding author (I.Ershova). Tel: +7-9196538818. E-mail: eig85@yandex.ru ©2020 International Transaction Journal of

Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.1 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02R http://TUENGR.COM/V11/11A02R.pdf DOI: 10.14456/ITJEMAST.2020.38

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consumption of salt solution in processing makes 3 m3 /hour (50 l/min.), the outer diameter of a pipe 32 mm, pipe wall thickness 1.1 mm.

Power supply voltage 220 V, 50 Hz of alternating current with use in a distribution network of the safety plug not below 16 And or the time cutout of the same face value. Maximum power consumption: 1200 W. Magnetron frequency: 2450 MHz. Rated power: 800 W. The length of a silicone tube with a diameter of 30 mm for implementation of the process of formation of ice on predesigns will make 1.5 m.

In silicone pipes coolant (R410a freon) boils at a temperature of -25 °C (with a pressure of 2.35 bar), and on their surface ice freezes on, its expense makes 2 m³/hour.

The maximum thickness of ice should not exceed 3.5 cm.

5.1 MAIN MODES: HEATING, HEATING/HOT WATER, COOLING The thickness of the isolation of the walls of the heat exchanger is 150 mm. Isolation material – expanded polystyrene of 35 kg/m³. The coefficient of heat conductivity of material of isolation is 0.02 W/(m•К).

At influence of EMP of a very high frequency (magnetron frequency 2450 MHz, rated power – 800 W, duration of 120 pages) on sodium chloride solution concentration higher than 20% of 50 ml (height of liquid of 3 cm, diameter of a glass 4 cm) are observed solution freezing fall of temperature by concentration of 20% from-16.6 to-18.5 ° C, for eutectic solution fall of temperature of freezing from-21.2 to -25 ° C happens concentration of 23.1%. At the impact of EMP of a very high frequency on mains water, its freezing temperature did not change.

At the influence of EMP microwave oven increase in ph of the solution is observed, the maximum increase in ph. happens for 5% solution – to 5.7-6.5, the specific conductivity of 15% solution decreased from 1451 to 1262 micromho/sec.

The concentration of salt in tap water after processing increased from 0.263 to 0.306 mg/l.

5.2 EH-INFLUENCE When processing by EH-influence (tension of 35 kV, electric capacity 0.2 мкФ, distance of an air gap of 10 mm, between electrodes of 10 mm, a form of electrodes "edge plane", 1000 categories) tap water of 2.5 l at 20 ° C temperature of freezing did not change (0 ° C). At impact on 20% solution is observed fall of temperature of freezing from-16.6 to -19 ° C. When processing by EH-impact (tension of 46 kV) on 23.1% solution temperature of freezing did not change.

When processing by EH-influence (tension of 45 kV) of ph of 20% solution increased from 6.2 to 7.8, and ph of 23.1% solution increased from 6 to 7.2.

When processing by EH-influence (tension of 35 kV) ph of tap water increased from 7.3 to 7.7.

When processing by EH-influence (tension of 45 kV) the specific conductivity of 20% solution decreased from 1425 to 1223 micromho/see.

When processing by EH-influence (tension of 46 kV) the specific conductivity of 23.1% solution decreased from 1444 to 1298 micromho/see.

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I.Ershova, A.Vasilyev, G.Samarin, D.Tikhomirov, D.Normov, V.Ruzhyev, M.Ershov

When processing by EH-influence (tension of 35 kV) of tap water at 20 ° C, its specific conductivity increased from 0.527 to 0.550 micromho/see.

When processing by EH-influence (tension of 35 kV) of concentration of salt in tap water increased from 0.263 to 0.275 mg/l.

When processing by EH-influence (tension of 45 kV) concentration of salt of 20% solution decreased from 0.710 to 0.611 mg/l, and solution from 0.721 to 0.650 mg/l.

6. CONCLUSION The functional and technological scheme of an experimental sample of the heat-exchanging equipment is developed. The heat exchanger with additional tanks for electrophysical water treatment and for collecting ice is provided in this scheme. Processing by electrophysical impact happens to the purpose of the fall of freezing temperature of the heat carrier that is confirmed experimentally. 2) Pilot studies on heat physical (freezing temperature, ph) and electrophysical (specific conductivity) to heat carrier parameters (water and salt solution of chloride of sodium of different concentrations) are conducted, at electrophysical impact (the influence MO, EH fields).

The scheme of the heat exchanger of experimental installation for obtaining energy of phase transition water-ice contains a heat exchanger tank, a tank for collecting ice, a corrugated hose in which coolant, a tank for electrophysical processing of the heat carrier circulates (EMP microwave oven lowering temperature of freezing of the heat carrier – water-salt solution).

For heating of an agricultural object of 100 sq.m, the power of the heat power equipment will be 12.8 kW in a day (306 kW/h). The required volume of ice will be 3602.8 l of ice, the volume of production of ice of the heat exchanger 150.1 ice/hour. Tank volume for collecting ice will be 2 m3, a heat exchanger tank with silicone tubes 2 m3, a tank for electrophysical water treatment – 1 m3, the total amount of a tank of the heat exchanger 5 m3. The length of a silicone tube with a diameter of 30 mm for implementation of the process of formation of ice will be 1.5 m. In silicone pipes coolant (R410a freon) boils at a temperature of -25°C, and on their surface ice freezes on, its expense makes 2 m³/hour. The maximum thickness of the ice is 3.5 cm.

7. AVAILABILITY OF DATA AND MATERIAL All the used and generated data in this study are already presented in this article.

8. CONFLICT OF INTEREST The authors confirm that the provided data do not contain a conflict of interest.

9. REFERENCES Belov, A., A. (2018). Modeling the assessment of factors influencing the process of electro-hydraulic water treatment. VESTNIK NGIEI, 11, 103-112.

Chubik, I. A., & Maslov, A. M. (1970). Handbook on the thermophysical characteristics of food products and semi-finished products. M: Food industry.-184 p. *Corresponding author (I.Ershova). Tel: +7-9196538818. E-mail: eig85@yandex.ru ©2020 International Transaction Journal of

Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.1 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02R http://TUENGR.COM/V11/11A02R.pdf DOI: 10.14456/ITJEMAST.2020.38

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Dykstra, C. E. (1999). External electric field effects on the water trimer. Chemical Physics Letters, 299(2), 132-136.

Ershova, I. G., Belova, M. V., Poruchikov, D. V., & Ershov, М. А. (2016). Heat treatment of fat-containing raw materials with energy of electromagnetic radiation. Международный научно-исследовательский журнал, (9-2), 38-40.

Spirin, N. A. & Lavrov, V. V. (2004). Methods of planning and processing of the results of the engineering experiment. Ekaterinburg: GOU VPO UGTU-UPI, 357 p.

Vasilev, A. N., & Tutunina, E. V. (2018). The Results of a preliminary experimental verification of the utilization of low temperature heat transfer fluids in the heat pumps work. Bulletin of agricultural science of the don, 3(43), 62-67.

Vasiliev, A. N., Budnikov, D. A., Vasiliev, A. A. (2016). Modeling the process of heating the grain in the microwave field of a universal electrical module with various algorithms of electrical equipment. Bulletin of Agrarian Science Don, 1(33), 12-17.

Vasiliev, А. N., Ershov, I. G., Belov, А. А., Timofeev, V. N., Uhanova, V. Y., Sokolov, А. V., & Smirnov, А. А. (2018). Energy-saving system development based on heat pump. Revista Amazonia Investiga, 7(17), 219-227.

Ershova Irina Georgievna is a Scientist researcher at FSAC VIM 109428, Moscow 1-y Institutsky proezd, 5, Russian Federation. She is a Cand. Tech. Sci. Her works are related to the increasing efficacy of agricultural machinery. She has higher education in Electrical Technologies and Electrical Equipment in Agriculture, Faculty of Engineering, Chuvash State Agricultural Academy. She is interested in inventing Agri-machinery.

Professor Dr. Vasilyev Alexey Nikolaevich is Professor at Federal Scientific Agroengineer Center VIM. He holds a Doctor of Sciences (Engineering) degree. He is interested in Applications of Engineering to Agricultures. He can be reached at vasilev-viesh @ inbox.ru.

Dr.Samarin Gennady Nikolaevich is an Associate Professor at Federal Scientific Agroengineer Center VIM. He holds a Doctor of Sciences (Engineering) degree. He is interested in Applications of Engineering to Agricultures. He can be reached at samaringn @ yandex.ru Dr.Tikhomirov Dmitry Anatolievich is an Associate Professor at Federal Scientific Agroengineer Center VIM. He holds a Doctor of Sciences (Engineering) degree. He is interested in Applications of Engineering to Agricultures. He can be reached at tihda @ mail.ru.

Professor Dr.Normov Dmitry Aleksandrovich is Professor at the Department of Physics, Kuban State Agrarian University named after I.T. Trubilin, Krasnodar Region, Russia. He is interested in Experimental Physics. He can be reached at danormov @ mail.ru Ruzhyev Vyacheslav Anatol’evich is an Associate Professor and Dean of the Faculty of Technical Systems, Service and Energy, Department of Technical Systems in Agribusiness, St. Petersburg State Agrarian University.

He is a Candidate of Technical Sciences.

He is interested in Modern Agricultural-Business Analysis. He can be reached at ruzhev_va @ mail.ru Ershov Mikhail Arkad’evich is with The Pharmasyntez Group. He is a Candidate of Chemical sciences.

He is interested in Experimental Chemical System. He can be reached at ema1114 @ yandex.ru

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©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies

International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies http://TuEngr.com

PAPER ID: 11A02S

MICROBIOLOGICAL SUPPLEMENTS FOR THE METABOLIC RATE CORRECTION IN CALVES a

a

b

c

I.N. Mikolaychik , L.A. Morozova , V.G. Kahikalo , L.Yu. Ovchinnikova , d

b

L.P. Yarmots , Yu.A. Karmatskikh , V.I. Charykov

e

a

Department of Technology for Storage and Processing of Livestock Products, Faculty of Biotechnology, Federal State Budgetary Educational Institution of Higher Education (FSBEIHE) “Kurgan State Agricultural Academy by T.S. Maltsev”, Kurgan Region, Ketovsky District, Lesnikovo Village. RUSSIA. b Department of Private Zootechnics, Feeding and Breeding of Animals, Kurgan State Agricultural Academy named after T.S. Maltsev, Kurgan Region, Ketovsky District, RUSSIA. c Department of Biology, Ecology, Genetics and Animal Breeding, FSBEIHE “South Ural State Agrarian University”, Chelyabinsk Region, Troitsk, Gagarina str., 13. RUSSIA d Department of Feeding and Breeding Farm Animals, FSBE IHE “Northern Trans-Ural State Agricultural University”, Tyumen, Respubliki str., 7, Tyumen Region, RUSSIA. e Department of Electrification and Automation of Agriculture, FSBEIHE “Kurgan State Agricultural Academy named after T.S. Maltsev”, Kurgan Region, Ketovsky District, RUSSIA. ARTICLEINFO

A B S T RA C T

Article history: Received 24 May 2019 Received in revised form 18 October 2019 Accepted 30 October 2019 Available online 21 November 2019

This work focused on the effects of yeast probiotic supplements on the metabolic rate in calves up to six months of age. Studies have established that the use of the optical-yeast probiotic supplement Optisaf in the diets of young cattle at a dose of 10 g per animal per day increased the digestibility of dry matter by 3.71% (P <0.05), organic matter 2.95%, crude protein 4.26% (P <0.01), crude fat 3.95% (P <0.05), crude fiber 2.85%, and nitrogen-free extract fractions (NFE) by 2.41%; increased the efficiency of metabolic energy and nitrogen by 6.91% (P <0.01) and 2.42%, respectively; contributed to the better utilization of calcium and phosphorus by 6.32% and 9.95%, respectively, in comparison with the experimental control group. The use of Optisaf yeast probiotic supplement led to an increase in the number of Lacto- and Bifidobacteria in the intestines of the 3rd experimental group by 42.19% (P <0.05) and 45.93% (P <0.05), respectively, and a decrease in the number of E.coli bacteria by 36.14%, compared with the control group. The introduction of Optisaf supplements into the diet of calves had a positive effect on their physiological state. The number of erythrocytes in the blood of calves of the 3rd experimental group increased by 9.20% (P <0.05), the hemoglobin content by 9.35% (P <0.05), total protein by 9, 11% (P <0.05), phagocytic activity by 3.67%, compared with the control group.

Keywords: Calf feeding; Yeast probiotic supplement; Digestibility coefficient; Calf metabolism rate; Microbiocenosis; Hematological parameters.

Disciplinary: Animal Sciences (), Biotechnology. ©2020 INT TRANS J ENG MANAG SCI TECH. *Corresponding author (L.A. Morozova). Email: morozova-la72@mail.ru

©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.1 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02S http://TUENGR.COM/V11/11A02S.pdf DOI: 10.14456/ITJEMAST.2020.39

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1. INTRODUCTION Within the framework of the Russian Federal priorities for the development of the agricultural sector, the development of livestock breeding plays an important role in food providing of the population [1, 2]. In modern conditions of industrial livestock breeding, a rational system for cattle rearing has an important place in the effective technology for the production of cattle breeding. It provides normal growth, development of an animal with a strong constitution, forms its future productivity and longevity in economic use. In the dairy period, calves, regardless of breed characteristics, must be reared under conditions of intensive feeding, which ensures high weight gain [3]. In the first six months of life calves are the most demanding of feeding and keeping conditions.

With balanced feeding and good care, they will grow rapidly; they will be more stress-resistant, which will lead to high productivity in maturity. Inadequate and incomplete feeding during this period causes permanent damage to the growing organism, not only in the early stages of ontogenesis but also during further growth and fattening [4].

The most effective complex solution to these problems today is the new biologically active substances â&#x20AC;&#x201C; yeast probiotic supplements. The bacteria that make up their composition, help to optimize digestion, better absorption of nutrients and biologically active substances, participate in the metabolism of proteins, carbohydrates, lipids, bile, and nucleic acids, and synthesize some biologically active substances. They stimulate the growth and development of bacteria, which improve the digestibility of all food components, releasing maximum energy from it, increasing eatability, which ultimately stimulates the growth and development of rearing animals, and helps to increase the safety and productivity of animals [5-11]. In this regard, studies on the effectiveness of the use of yeast probiotic supplements in the diets of rearing cattle are of scientific and practical interest, and also determine its relevance.

The aim of our research was to study the effect of yeast probiotic supplements on the metabolism rate of calves up to six months of age.

2. METHOD The experimental part of the work was carried out at â&#x20AC;&#x153;Glinkiâ&#x20AC;? production in the Kurgan Region (Russia) on heifers of Russian Black Pied breed up to 6 months of age. For the research, 4 groups of 10 heifers of 10 days old were formed, taking into account the weight and origin (Figure 1).

Figure 1: Group heifers of Russian Black Pied breed.

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I.N.Mikolaychik, L.A.Morozova, V.G.Kahikalo, L.Yu.Ovchinnikova, L.P.Yarmots, Yu.A.Karmatskikh, V.I.Charykov

When compiling calves rations, they adhered to the generally accepted norms of feeding according to the Russian Academy of Sciences, which is designed to obtain 800-900 g of the average daily gain in body weight, which was changed every ten days in the process of the research. The calves of the control group were fed according to the scheme adopted at the farm, the studied feed supplements were fed to the heifers in the milk period from 10 days of age (the beginning of feeding of concentrated feeds) to 4 months of age, and the study of the supplements’ effect lasted up to 6 months. In the composition of concentrated feeds per 1 heifer per day, the 1 stexperimental group was fed the Yea-Sacc 1026 yeast supplement (Alltech, USA) in the amount of 10 g; the 2 nd experimental group were fed the Levucell SC+ yeast supplement (Lallemand, UK) in the amount of 6 g; and heifers of the 3rdexperimental group were fed the Optisaf yeast supplement 10 g (Saf-Neva, St. Petersburg, Russia).

The studied feed supplements are the unique strain of live yeast Saccharomyces cerevisiae. The optimal dosage of the Russian-made Optisaf yeast probiotic supplement (Saf-Neva, St. Petersburg) was determined in the diets of Russian Black Pied heifers during the first experiment. Thus, calves of the 1st experimental group were fed 5 g of the studied supplement, calves of the 2 nd experimental group 10 g and calves of the 3 rd experimental group 15 g per animal per day as part of concentrated feed. Optisaf is a culture of live dried yeast Saccharomyces cerevisiae (strain NCYC Sc 47) 1x10 9 CFU cerevisiae, as well as excipients: calcium carbonate 20% and wheat flour up to 100%.

Yea-Sacc1026 is a live yeast culture of a specially selected strain of Saccharomyces cerevisiae1026, lyophilized together with medium made of corn, molasses, malt, and trace elements.

1 g of Yea-Sacc1026 contains 5x10 9 living yeast cells.

Levucell SC+ is an active living yeast Saccharomyces cerevisiae (strain CNCM-1077), specialized for rumen, at a concentration of 1.0×10 10 colony units per 1 g of the supplement.

The studied supplements were introduced to the concentrates by the method of stepwise mixing at the dose recommended by the manufacturer. The experimental animals were kept in group cells of 10 animals in each. In order to determine the digestibility of nutrients in the body of heifers at the end of the experiment, physiological studies were carried out according to generally accepted methods.

The chemical composition of feed, its residues and animal biosubstrates was studied in the “Veles” test laboratory, D.V. Iltyakova (Chastoozerye village, Kurgan Region, Russia) and in the laboratories of the department of Animal Feed Storage and Processing Technologies of the Kurgan State Agricultural Academy by T.S. Maltsev (Lesnikovo village, Kurgan region, Russia).

Feed, their residues, and metabolic products obtained from animals during the period of the balanced experiment were subjected to chemical analysis according to generally accepted methods [12] and based on their results, the digestibility of nutrients of diets, the balances of nitrogen, calcium, phosphorus and the metabolic energy in animals were calculated.

In order to determine the intestinal microbiota, feces from three animals in each group were examined. Feces were taken in sterile tubes and diluted in sterile saline from 10 -1 to 10-8. Of the four diagnostically significant dilutions (10 -4–10-8), cultures were made on the differential diagnostic medium (Endo, Ploskireva) [13].

To monitor the state of metabolic processes in the body of the heifers, the morphological composition and blood metabolites were determined: erythrocytes, hemoglobin, leucocytes, alkaline reserve, glucose, residual nitrogen, total protein, and its fractions, calcium and inorganic phosphorus. *Corresponding author (L.A. Morozova). Email: morozova-la72@mail.ru

©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.1 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02S http://TUENGR.COM/V11/11A02S.pdf DOI: 10.14456/ITJEMAST.2020.39

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Blood samples were taken in the morning, 2 hours before feeding, from three animals from each group. The studies were carried out according to the methods described in [14].

The obtained digital data are processed by methods of variation statistics. Statistical processing of the obtained digital data was carried out using a computer with the processor Intel Core2 Quad (USA), licensed software package Microsoft Office 2007 (USA). To assess the significance of differences between the two average values, the Student’s t-test was used. Differences were considered statistically significant at P <0.05; P <0.01; P <0.001.

3. RESULTS AND DISCUSSION The most important aspects of the interaction of yeast probiotic supplements with intestinal microbiota are the formation of antibacterial substances, as well as competition for nutrients and a change in microbial metabolism, and stimulation of the immune system, which contributes to an increase in digestibility of food nutrients. The amount of nutrients digested by calves during a physiological experiment is presented in Table 1.

Table 1: The average daily amount of nutrients digested by calves, g ( X  Sx ) Index Dry matter Organic matter Crude protein Crude fat Crude fiber NFE

1st experimental 2151.02±16.62 2013.91±18.52 425.62±2.63 148.25±2.16 343.60±3.72 1096.44±12.08

control 2073.52±21.76 1954.91±19.39 413.02±4.61 144.36±2.55 328.86±8.80 1068.67±17.15

Group 2nd experimental 2192.99±26.17 2054.22±18.37 432.02±5.08 150.53±2.70 348.79±6.95 1122.88±8.40

3rd experimental 2245.54±34.99 2090.10±18.64 442.23±3.18 154.04±1.52 357.88±7.91 1135.95±12.67

80 70

60 50 40 30 20 10

0 Dry matter

Organic matter

Crude Crude fat protein

Crude fiber

NFE

control

1st experiemental

2nd experiemental

3rd experiemental

Figure 2: Digestibility coefficients of nutrients (%).

Analyzing the data, we can conclude that animals of the 3rd experimental group better digested the dry matter,compared with the calves of the control, 1 st, and 2nd experimental groups, by 172.02 g (8.29%), 94.52 g (4.39%) and 52.55 g (2.40%), respectively; organic matter – by 135.19 g (6.92%), 76.19 g (3.78%) and 35.88 g (1.75%); crude protein – by 29.21 g (7.07%), 16.61 g (3.90%) and 10.21

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I.N.Mikolaychik, L.A.Morozova, V.G.Kahikalo, L.Yu.Ovchinnikova, L.P.Yarmots, Yu.A.Karmatskikh, V.I.Charykov

g (2.36%); crude fat – by 9.68 g (6.71%), 5.79 g (3.91%) and 3.51 g (2.33%); crude fiber – by 29.02 g (8.82%), 14.28 g (4.16%) and 9.09 g (2.61%); NFE– by 67.28 g (6.29%), 39.51 g (3.60%) and 13.07 g (1.16%), respectively.

Figure 2, the digestibility coefficients characterize the utilization of nutrient rations in experimental animals.

Studies have established that the digestibility coefficients of nutrients of dietary feeds are greater in the 3rd experimental group compared to the control, 1 st and 2 nd experimental groups in terms of: dry matter by 3.71% (P <0.05), 2.10 and 1, 24%, respectively; organic matter – by 2.95%, 1.75 and 0.84%; crude protein – by 4.26% (P <0.01) and 1.53%; crude fat – by 3.95% (P <0.05), 2.39 and 1.45%, crude fiber – by 2.85%, 1.44 and 1.07%; NFE– by 2.41%, 1.53 and 0.39%, respectively.

Thus, feeding the calves of the 3 rd experimental group with the Optisaf yeast probiotic supplement at a dose of 10 g /animal/day contributed to better digestion of the nutrients of the diet.

It is impossible to get a correct idea of the animal’s need for nutrients without taking into account the characteristics of the processes of energy metabolism in the body.

The metabolism that occurs in the body is interconnected and occurs simultaneously with the exchange of energy. In zootechnical practice, energy is one of the most important normalized indicators of animal diets.

It was established that the feed and the nutrients contained in them are not only a source of energetic materials but also represent a complex of adequate physiological stimuli that affect the animal organism, which affects the change in metabolism and energy. The indicators for calculating the energy efficiency in calves are shown in Table 2.

Table 2: Indicators of energy consumption in calves (MJ/day), ( X  Sx ) Index Gross energy consumed Energy released with feces Energy digested % of NFE Energy released with urine Losses in the gastrointestinal tract with methane and heat of fermentation Metabolic energy % of NFE Thermogenesis Energy of production

control 62.11±0.69 20.62±0.63 41.49±0.36 66.80 5.14±0.14

Group 1st experimental 2nd experimental 62.74±0.48 63.08±0.54 20.16±0.55 19.74±0.64 42.58±0.35 43.34±0.35* 67.87 68.71 5.20±0.13 5.19±0.10

3rd experimental 63.36±0.40 19.34±0.70 44.02±0.37** 69.48 5.32±0.04

4.35±0.21

4.43±0.19

4.55±0.06

4.49±0.11

32.00±0.31 51.52 22.46±0.49 9.54±0.17

32.95±0.29 52.52 22.60±0.52 10.35±0.44

33.60±0.30* 53.27 23.13±0.52 10.47±0.39

34.21±0.27** 53.99 23.61±0.55 10.60±0.29*

When analyzing the obtained results, we found that the consumption of gross energy by experimental animals is practically no different and is at the level of 62.82 MJ / day. At the same time, animals of the 3rd experimental group released less energy with feces by 1.28 MJ (6.62%), 0.82 MJ (4.24%) and 0.40 MJ (2.07%), respectively compared with the control, 1 st and 2 nd experimental groups.

The diets of the calves of the 2nd and 3rd experimental groups were better digested than the control group by 1.85 MJ or 4.46% (P <0.05) and 2.53 MJ or 6.09% ( P<0.01), respectively than the control group, and when compared to 1 st experimental group – by 0.76 MJ or by 1.78% and by 1.44 MJ or by 3.38%, respectively. There was no significant difference between the groups in the energy released with urine, losses in the gastrointestinal tract with methane and the heat of fermentation. A *Corresponding author (L.A. Morozova). Email: morozova-la72@mail.ru

©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.1 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02S http://TUENGR.COM/V11/11A02S.pdf DOI: 10.14456/ITJEMAST.2020.39

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higher rate of metabolic energy was also noted in calves of the 2 nd and 3 rd experimental groups, compared with the control group by 1.60 MJ (5.00%) (P <0.05) and 2.21 MJ (6.91 %) (P <0.01), respectively.

The amount of heat generated by the calves of the experimental groups per day amounted to 23.11 MJ on average, which is 0.65 MJ or 2.89% more compared to the control group. The greatest amount of energy spent on production was observed in animals of the 3 rd experimental group as compared with the control, 1 st and 2 nd experimental groups by 1.06 MJ (11.11%) (P <0.05), 0.25 MJ (2.42%) and 0.13 MJ (1.24%), respectively.

In the metabolism between the body and the environment, the leading place is taken by nitrogen metabolism. This is explained not only by the fact that the main structural elements of cells, tissu es and animal organs are protein formations but mainly the nature of proteins, their various specific physicochemical and biological properties inherent in them as carriers of life. Based on the data of physiological experience and the chemical composition of feed, residues, feces, urine, the nitrogen balance was calculated (Figure 3).

100 90 80

70 60 50

40 30 20 10 0 Received with feed

Released with feces

Digested

Released with urine

control

1st experimental

2nd experimental

3rd experimental

Saved in body

Figure 3: Nitrogen balance in the body of calves (g/animal).

During the physiological experiment, all animals had a positive nitrogen balance, but there are some differences in their utilization between the experimental groups. So, calves of the 3rdexperimental group isolated nitrogen with feces at 3.81 g or 15.39% (P <0.05) less than animals in the control group; and 2.26-1.4 g, or 9.13-5.65% in comparison with animals of the 1st and 2 nd experimental groups, respectively.

There was no significant difference in urinary nitrogen excretion in the groups. Calves of the 3 rd experimental group digested nitrogen better. This indicator is lower for the control, 1 st and 2 nd experimental groups by 5.68% (P <0.05), 4.33 and 2.28%, respectively.

The highest positive nitrogen balance was in calves of the 3 rd experimental group and amounted up to 23.97 g, which is 10.92% more than in animals of the control group, by 5.87% than in the 1 st

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I.N.Mikolaychik, L.A.Morozova, V.G.Kahikalo, L.Yu.Ovchinnikova, L.P.Yarmots, Yu.A.Karmatskikh, V.I.Charykov

experimental group and by 1, 27% than in the 2 nd experimental group. The level of nitrogen consumption in calves is shown in Figure 4.

35 30 25

control

20

1st experimental

15

2nd experimental

10

3rd experimental

5

0 Utilized of recieved, % Utilized of digested, %

Figure 4: Utilization of nitrogen in the body of calves (%).

An analysis of the results indicates that the calves of the 3rd experimental group more efficiently consumed nitrogen from the received and digested – by 2.42% and 1.57% compared with the control group, and by 1.36% and 0.49% in comparison with the 1 st experimental group.

The inclusion of the yeast probiotic additive Optisaf at a dose of 10 g (per animal per day) in the diet of calves provided a more efficient utilization of energy and nitrogen for increasing the live weight.

Among the factors determining the balance of feeding agricultural animals, the conditions of mineral nutrition are essential. Minerals are of great importance for the normal functioning of the organism since they are the necessary basis for building supporting system (bones, etc.); they are part of cells, tissues, organs, and fluids; they are involved in all biochemical processes that take place in a living organism on all structural levels.

Analyzing Table 3 data, it can be noted that the level of calcium consumed in experimental animals was almost at the same level and amounted to an average of 32.56 g. Calves of the 3 rd experimental group released calcium with feces by 5.92% and 4.53% less than the animals of the 1 st and 2 nd experimental groups, respectively, and by 10.03% in comparison with the control group. The calves of the control group excreted more calcium in the urine compared to the experimental groups by an average of 10.87%.

Table 3: Calcium balance in the body of calves (g/animal), ( X  Sx ) Index Received with feed Released in feces Released in urine Saved in body Utilized of received, %

control 32.33±0.24 15.79±0.93 1.02±0.03 15.52±0.83 48.00

1st experimental 32.51±0.16 15.20±0.92 0.95±0.01 16.36±0.84 50.32

Group 2nd experimental 32.67±0.07 15.00±0.75 0.92±0.02 16.75±0.70 51.27

3rd experimental 32.73±0.03 14.35±0.56 0.90±0.03 17.48±0.55 54.32

The highest positive calcium balance was observed in calves of the 3 rd experimental group and amounted to 17.48 g, which is 12.63% and 6.84% more than that of the control and 1 st experimental group, respectively, and 4.36% in comparison with animals of the 2 nd experimental group. Calcium was better consumed by calves of the 3 rd experimental groups by 6.32% and 4.00% than by the animals of the control and 1 st experimental groups, respectively, and by 3.05% than the calves of the *Corresponding author (L.A. Morozova). Email: morozova-la72@mail.ru

©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.1 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02S http://TUENGR.COM/V11/11A02S.pdf DOI: 10.14456/ITJEMAST.2020.39

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3rd experimental group.

Based on the data in Table 4, it should be noted that experimental animals released phosphorus with feces and urine without any significant difference.

Table 4. Phosphorus balance in the body of calves (g / animal), ( X  Sx ) Index Received with feed Released in feces Released in urine Saved in body Utilized of received, %

control 21.02±0.08 13.50±0.51 1.03±0.18 6.49±0.39 30.88

1st experimental 21.13±0.03 12.99±0.76 0.98±0.02 7.16±0.78 33.89

Group 2nd experimental 21.23±0.03 12.19±0.46 0.95±0.04 8.09±0.44 38.11

3rd experimental 21.26±0.04 11.67±0.68 0.91±0.04 8.68±0.68 40.83

On average, animals of the experimental groups excreted 12.28 g of phosphorus with feces and 0.95 g with the urine, which is 9.93% and 8.42% less than in the control group. The greatest amount of phosphorus is deposited in the body of animals of the 3 rd experimental group– 8.68 g, which is 33.74% and 21.23% more than in the control and 1 st experimental groups, respectively, and 7.29% more in comparison with the 2 nd experimental group.

Calves of the 3rd experimental group were better to utilize the received phosphorus. Thus, animals of the 3rd experimental group utilized phosphorus 9.95% and 6.94% more compared with the control and 1st experimental groups, respectively, and 2.72% more than the 2nd experimental group.

Thus, the minerals were better consumed by calves that were receiving the Optisaf yeast probiotic supplement at a dose of 10 g /animal/day as a part of the diet.

Currently, much attention is paid to the formation of a normal microbiocenosis of the gastrointestinal tract, which is associated with its multifaceted effect on the physiological functions of the animal’s body. In this regard, it is necessary to study the intestinal microbiota under the influence of yeast probiotic supplements. Some indicators of calf feces microbiota are presented in Figure 5.

11 10 9 8 7 6 5 4 3 2 1 0 Lactobacillus Bifidobacterium control 2nd experimental

E. сoli

1st experimental 3rd experimental

Figure 5. The number of microorganisms in the feces of calves, million CFU/g.

When studying the microbial landscape of the large intestine of calves, it was found that the content of lactobacilli in the feces of calves of the 3 rd experimental group amounted up to 9.37 million CFU/g, which is 42.19% more than the same indicator in the control group (P <0.05), and in comparison with the 1st and 2nd experimental groups by 22.01% and 25.60%, respectively.

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I.N.Mikolaychik, L.A.Morozova, V.G.Kahikalo, L.Yu.Ovchinnikova, L.P.Yarmots, Yu.A.Karmatskikh, V.I.Charykov

The greatest number of bifidobacteria was also noted in the feces of calves of the 3 rd experimental group, which is 45.93% (P <0.05) more in comparison with the control group and 25.83% and 21.64% compared with the 1 stand 2 nd experimental groups, respectively. At the same time, the use of yeast probiotic supplement helped to reduce the number of E. coli in the feces of calves. Thus, the number of E. coli in the feces of calves of the experimental groups averaged 4.51 million CFU / g, which is 36.14% less than in the control group.

The application of the yeast probiotic supplement Optisaf at a dose of 10 g per animal per day contributes to an increase in the number of lactobacilli and bifidobacteria in the intestine and inhibits the growth of pathogenic and conditionally pathogenic microorganisms.

The morphological and biochemical blood composition is quite constant with the correct and complete supply of animals with nutrients. Insufficient or excessive intake of nutrients violates the nature of metabolic processes in the tissues, which affects the composition of the blood. Blood test data of experimental animals are presented in Table 5.

Table 5: Morphological and biochemical parameters of the blood of calves, ( X  Sx ).

Index 12

Erythrocytes,10 /l Hemoglobin, g/l Globular value Leukocytes,109/l Alkaline reserve, mg% Total protein, g/l Residual nitrogen, мг% Calcium, mmol/l Inorganic phosphorus, mmol/l

control 6.52±0.14 104.95±1.81 1.05±0.01 6.46±0.14 541.54±8.79 71.03±1.21 28.95±1.94

Group 1st experimental 2nd experimental 6.88±0.15 6.97±0.12 109.68±2.60 110.92±2.99 1.04±0.01 1.03±0.01 6.79±0.12 6.82±0.16 532.65±9.55 526.28±7.61 73.10±2.24 76.05±2.05 31.03±1.65 31.46±1.71

3rd experimental 7.12±0.15* 114.76±2.81* 1.05±0.05 6.93±0.15 521.94±9.54 77.50±1.96* 33.83±2.40

2.33±0.08

2.47±0.11

2.54±0.12

2.63±0.11

1.61±0.03

1.64±0.03

1.66±0.03

1.72±0.03

Studies have established that the morphological and biochemical parameters of the blood of calves were within the physiological norm. Moreover, the maximum number of red blood cells was noted in the blood of animals of the 3 rd experimental group – 7.12 * 1012 / l, which is 9.20% (P <0.05); 3.49% and 2.15% more in comparison with the control, 1 st and 2 nd experimental groups, respectively.

The hemoglobin content was significantly higher in the blood of calves of the 3 rd experimental group by 9.35% (P <0.05); 4.63% and 3.46%, than in the control, 1 st and 2 nd experimental groups, respectively.

The globular value in experimental animals was at the same level and averaged 1.04. The number of leukocytes in the groups did not have any significant differences and was within the physiological norm. However, in the 3 rd experimental group, the level of the leukocyte was 7.28% and 2.06% higher than in the control and 1 st experimental group, respectively, and 1.61% than in the 2 nd experimental group.

The alkaline reserve of the control group was 1.67% higher in comparison with the 1 st experimental group, and 2.90% and 3.76% higher than in the 2nd and 3rd experimental groups, respectively.

The total protein content in the 3 rd experimental group was 77.50 g / l, which is 9.11% (P <0.05) more than in the control group and 6.02% and 1.91% more than in the 1st and 2nd experimental groups. *Corresponding author (L.A. Morozova). Email: morozova-la72@mail.ru

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The residual nitrogen index was higher in calves of the 3 rd experimental group by 4.88 mg% (16.86%) than in the control group and by 2.80 mg% (9.02%) and 2.37 mg% (7.53%) compared with the 1 st and 2nd experimental groups, respectively.

60 50 40 30 20 10 0 Albumin Globulin α– β– γ– fraction fraction globulin globulin globulin control 2nd experimental

1st experimental 3rd experimental

Figure 6: Protein spectrum of blood serum of calves (%).

The content of calcium and phosphorus was higher in the blood of calves of the 3 rd experimental groups by 12.88% and 6.83% compared with the control group; by6.48% and 4.88% compared with the 1st experimental group; by3.54% and 3.61%compared with the 2 nd experimental group. The serum protein content is shown in Figure 6.

For protein fractions, we found that the highest percentage of the albumin fraction was noted in the blood of calves of the 3 rd experimental group. So, the percentage of the albumin fraction in this experimental group was 43.45%, which is 3.33% more than in the control group. The protein ratio is also higher in the 3 rd experimental group, when compared with the control group by 14.93%; when compared to the 1 st experimental group by 6.94%; when compared to the 2 nd group by 5.48%.

Evaluation of natural immune resistance was carried out at the beginning and at the end of the experiment in the control and experimental groups. At the beginning of the experiment, all the studied parameters in the experimental calves were close in absolute values, which indicate a good selection of analogues. In the process of experiments, under the influence of yeast probiotic supplements, the level of immune resistance in calves of the experimental groups increased significantly. The generalized results are presented in Table 6.

Table 6: Indicators of immune resistance of experimental animals, ( X  Sx ) Index Phagocytic activity, % Phagocyte count Phagocyte index Phagocytic capacity, thousand microbial bodies

control 50.83±2.24 3.14±0.17 6.22±0.58 40.11±4.57

Group 1st experimental 2nd experimental 53.33±1.76 53.67±1.76 3.63±0.21 3.68±0.22 6.79±0.24 6.91±0.17 46.59±4.45

47.97±3.54

3rd experimental 54.50±2.57 4.01±0.20 7.02±0.24 49.55±3.75

So, phagocytic activity (the percentage of leukocytes actively participating in phagocytosis to the total number of counted neutrophilic leukocytes) in animals of the 1 st experimental group is 2.50%, 2nd experimental group– 2.84% and 3rd experimental group– 3.67% higher than in the control group.

An additional indicator of cellular immunity, characterizing the aggressiveness and activity of

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I.N.Mikolaychik, L.A.Morozova, V.G.Kahikalo, L.Yu.Ovchinnikova, L.P.Yarmots, Yu.A.Karmatskikh, V.I.Charykov

leukocytes, is the phagocyte count (the ratio of phagocytosed bacteria to the total number of leukocytes counted). The blood of calves of the experimental groups that were treated with yeast probiotic supplements had a phagocytic number that averaged 3.77 units, which is 0.63 more than in the control group.

The phagocytic index characterizes the intensity of phagocytosis, which is determined by the average number of phagocytized microorganisms per active leukocyte. Studies have found that calves of the experimental groups had a higher level of phagocytic index, with a tendency to decrease in the control group.

Phagocytic capacity determines the number of microbial bodies phagocytosed in 1 mm 3 of blood.

The phagocytic capacity was less in the serum of the calves of the control group in comparison with the 1st experimental group by 16.15%; the 2nd experimental group by 19.59% and the 3 rd experimental group by 23.53%.

It should be noted that all these indicators did not go beyond the physiological norm and testify to the activation of the immune defenses in calves.

Studies have shown that the content of white blood in animals of the control and experimental groups has significant differences. The leukogram is presented in table 7.

Table 7: Leukocyte count and leukocyte formula in the blood of calf (%) ( X  Sx ).

Index Neutrophils: banded segmented Eosinophils Basophils Monocytes Lymphocytes

control 0.29±0.05 22.74±0.07 0.69±0.08 0.55±0.04 3.47±1.13 72.26±1.56

Group 1st experimental 2nd experimental 0.26±0.04 23.09±0.56 0.88±0.06 0.42±0.08 4.31±0.48 71.04±0.50

0.25±0.04 22.91±0.55 0.85±0.08 0.45±0.05 4.76±0.48 70.78±0.59

3rd experimental 0.22±0.04 23.78±0.57 0.93±0.10 0.36±0.05 5.11±0.36 69.60±0.77

Data analysis Table 7 allowed us to establish that the greatest number of banded neutrophils was observed in the blood of calves of the control group. In this case, there were more segmented granulocytes in the blood of calves of the 3 rd experimental group than in the analogues of the control, 1st, and 2nd experimental groups by 0.07%, 0.04%, and 0.03%, respectively. Also, thee eosinophils and monocytes count was higher in the blood of calves of the 3 rd experimental group, in comparison with the control group by 0.24% and 1.64%; 1 st experimental group by 0.05% and 0.80%; 2 nd experimental group by 0.08% and 0, 35% respectively.

The content of basophils decreased as a result due to the added yeast probiotic supplement. So, the smallest number of basophils was noted in the 3 rd experimental group, which is 0.19% less than the same indicator in the control group.

Simultaneously with an increase in neutrophilic granulocytes in animals of the 3 rd experimental group, the number of lymphocyte cells decreases 2.36% in comparison with the control group, 1.14% in comparison with the 1 st experimental group and 1.18% compared with the 2 nd group.

Thus, in calves of the 3 rd experimental group that were receiving Optisaf yeast probiotic supplement at a dose of 10 g /animal/day, metabolic processes proceeded more intensively, which positively affected the morphological, biochemical and immunological parameters of the blood.

*Corresponding author (L.A. Morozova). Email: morozova-la72@mail.ru

©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.1 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02S http://TUENGR.COM/V11/11A02S.pdf DOI: 10.14456/ITJEMAST.2020.39

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4. CONCLUSION The introduction of Optisaf yeast probiotic supplement in the diets of young cattle in the optimal dose increased the digestibility of dry matter by 3.71% (P <0.05), organic matter by 2.95%, and crude protein by 4.26% (P <0.01), crude fat by 3.95% (P <0.05), crude fiber by 2.85% and NFE by 2.41%, when comparing to the control group. Animals of the 3 rd group utilized the metabolic energy and nitrogen of the diets more efficiently: 6.91% (P <0.01) and 2.42%, respectively, than the calves of the control group. The use of Optisaf yeast probiotic supplement contributed to the better consumption of calcium and phosphorus – by 6.32% and 9.95%, compared with the control group. The use of Optisaf led to an increase in the number of Lacto- and bifidobacteria in the intestine by 42.19% (P <0.05) 45.93% (P <0.05),respectively,and a decrease in the number of E. Coli bacteria by 36.14%, compared with the control group. The number of red blood cells increased by 9.20% (P <0.05), hemoglobin content by 9.35% (P <0.05), total protein by 9.11% (P <0.05), phagocytic activity by 3.67%. The phagocytic capacity of the blood serum of calves in the control group was 23.53% less in comparison with the 3rd experimental group.

5. MATERIALS AND DATA AVAILABILITY All relevant information is given in this study.

6. CONFLICT OF INTEREST The authors confirm that the presented data do not contain a conflict of interest.

7. ACKNOWLEDGMENT This work was arranged with the financial support of the federal budgetary educational institution “Kurgan State Agricultural Academy by T.S. Maltsev”.

8. REFERENCES [1] Donnik I.M. Priority of scientific and technological development “Transition to highly productive and environmentally friendly agriculture and aquaculture, development and implementation of systems for the rational use of chemical and biological protection of agricultural plants and animals, storage and efficient processing of agricultural products, creation of safe, high-quality and functional foods.”

Opening Remarks by Chairman of the Council on Priority of Vice President of the RAS, Bulletin of the Russian Academy of Sciences. 2019. 89(5): 520-521.

[2] Kukhar V.S., Donnik I.M., Kot E.M., Zyryanova T.V., Maslakov V.V., Krivonogov P.S. Mechanisms of production competitiveness increase // Astra Salvensis. 2017, 343-350.

[3] Loretz O.G., Gorelik A.S., Gorelik O.V., Neverova O.P. Increasing the natural resistance and preservation of calves in the milking period: scientific and practical recommendations.

Yekaterinburg, 2019.

[4] Mikolaychik I.N., Morozova L.A., Abileva G.U., Iltyakov A.V., Stupina E.S. The effect of complex biotechnological feed additives on the productivity and quality of cow milk // Agrarian Bulletin of the Ural. 2018. 177(10). P.5.

[5] TopuriaL.Yu., Topuria G.M., Grigoryeva E.V., Porvatkin I.V., Rebezov M.B.The use of probiotics in veterinary medicine and animal husbandry.Orenburg, 2016.P. 192.

[6] Mikolajczyk I.N., Morozova L.A., Chumakov V.G., Abileva G.U., Loretts O.G., Bykova O.A. Productive indicators and physiological and biochemical status of dairy cows received biotechnological additives. Research Journal of Pharmaceutical, Biological and Chemical Sciences.

2019. Vol. 10(1): 2106-2116.

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[7] Duskayev G.K., Levakhin G.I., Korolev V.L., SirazetdinovF.Kh. The use of probiotics and plant extracts to improve the productivity of ruminants (review). Livestock and feed production. 2019.

102(1): 136-148.

[8] Belookov A.A., Belookova O.V., Loretz O.G., Gorelik O.V. Growth rate and meat productivity of young animals on the background of the use of microbiological preparations. Agrarian Bulletin of the Ural. 2018. 172(5): 10-15.

[9] Mikolaychik I.N., Morozova L.A., Arzin I.V. Practical aspects of the use of microbiological additives in dairy cattle breeding // Agrarian Bulletin of the Ural. 2018. 170(3): 5.

[10] Belookova O.V., Loretz O.G., Gorelik O.V. Effective microorganisms in dairy cattle breeding // Agrarian Bulletin of the Ural. 2018. 173(6). P. 16-21.

[11] Duskaev, G.K., Rakhmatullin S.G., Kazachkova N.M., Sheida Y.V., Mikolaychik I.N., Morozova L.A., Galiev B.H. Effect of the combined action of quercus cortex extract and probiotic substances on the immunity and productivity of broiler chickens. Veterinary World. 2018. 11(10): 1416-1422.

[12] Lebedev P.T., Usovich A.P. Research methods for animal feed, organs and tissues. M.: Rosselkhozizdat, 1976. p.376.

[13]

Sboychakov V.B. Sanitary Microbiology. M.: GEOTAR-Media. 2007. P.192.

[14]

Osipova N.A., Mager S.N., Popov Yu.G. Laboratory studies of animal blood. Novosibirsk, 2003.

P.48.

Professor Dr. Mikolaychik Ivan Nikolaevich is Professor and Acting Vice-Rector for Scientific Work of the Kurgan State Agricultural Academy named after T.S. Maltsev. He holds a Doctor of Agricultural Sciences.

Professor Dr.Morozova Larisa Anatolyevna is Professor and Dean of the Faculty of Biotechnology, Head of the Department of Technology for Storage and Processing of Livestock Products, Kurgan State Agricultural Academy named after T.S. Maltsev. Doctor of Biological Sciences. His research is Animal and Livestock Products Technology.

Professor Dr.Kakhikalo Viktor Gavrilovich is Professor of the Department of Private Zootechnics, Feeding and Breeding of Animals, Kurgan State Agricultural Academy named after T.S. Maltsev. He holds a Doctor of Agricultural Sciences degree. His research is Animal Breeding Technology.

Professor Dr.Ovchinnikova Lyudmila Yurievna is Professor and Head of the Department of Biology, Ecology, Genetics and Animal Breeding of the South Ural State Agrarian University. She holds a Doctor of Biological Sciences. Her research is Animal Breeding Technology.

Professor Dr.Yarmots Lyudmila Petrovna is Professor and Head of the Department of Feeding and Breeding Farm Animals of the State Agrarian University of Northern Zauralie. She holds a Doctor of Agricultural Sciences. Her research is Animal Breeding Technology.

Professor Dr.Karmatskikh Yulia Anatolyevna is Professor of the Department of Private Zootechnics, Feeding and Breeding of Animals, Kurgan State Agricultural Academy named after T. S. Maltsev. She holds a Doctor of Agricultural Sciences. Her research is Animal Technology.

Professor Dr.Charykov Viktor Ivanovich is Professor of the Department of Electrification and Automation of Agriculture of the Kurgan State Agricultural Academy named after T.S. Maltsev. He has a Doctor of Technical Sciences. His research is Agricultural Technology.

*Corresponding author (L.A. Morozova). Email: morozova-la72@mail.ru

Š2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.1 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02S http://TUENGR.COM/V11/11A02S.pdf DOI: 10.14456/ITJEMAST.2020.39

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©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies

International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies http://TuEngr.com

PAPER ID: 11A02T

FRAMING TERRORISM RELATED ISSUES IN PAKISTANI NEWSPAPERS: EXPLORING THE AGENDA ON TERRORISM IN PERSPECTIVE OF POST-UNITED STATES ATTACKS ON AFGHANISTAN SINCE 2009 a

a

Muhammad Anwar , Muhammad Wasim Akbar , Anwar Khan a b

b

Department of Communication & Media Studies, Gomal University, D.I.Khan, PAKISTAN. Department of Management Science, Khushal Khan Khattak University, Karak, PAKISTAN.

ARTICLEINFO

A B S T RA C T

Article history: Received 20 June 2019 Received in revised form 23 October 2019 Accepted 05 November 2019 Available online 21 November 2019

Media organizations are framing terrorist activities in it is media contents. These terror-based contents are written on the conflict zones like Pakistan and Afghanistan. In newspapers, major terrorism-related contents are highlighted in editorials as well as letter to editors carry feedback of readers. To influence audiences, terrorists manage attacks as a part of indirect strategy to get their political aims by influencing an audience. These terrorist groups get sympathies with various audiences when they try to influence audiences and prepare messages for their desired audiences. Keeping in mind the importance of media framing of terrorism, this study has investigated the framing style of the elite press of Pakistan in covering terrorism-related issues. This descriptive explanatory content analysis study has examined the Pakistani elite print media editorial framing techniques to inquire its agenda on Terrorism related matters since 2009 in perspective of post-US-attack on Afghanistan. The results show that media frames are independent of each other in rating the responses regarding agenda on terrorism-related matters since 2009 in perspective of post-US attack on Afghanistan.

This study concludes that a relationship exists among terrorism-related issues examined in study. The study overall recommends for analytical screening of all terror-oriented media contents that are prone to create unrest among masses.

Keywords: Media Organizations; Media Framing; Terrorism; Internal Displacement; Military Operations; American Interventions.

Disciplinary: Multidisciplinary (Journalism and Mass Communication Science (Information and Media Sciences), Political Sciences (International Affairs), Global Studies). ©2020 INT TRANS J ENG MANAG SCI TECH.

1. INTRODUCTION Media organizations are framing terrorist activities in it is media contents. These terror based contents are written on conflict zones (Boyle & Mower, 2018). Like, other international conflict *Corresponding author (M.Anwar). Email: muhammad.anwar@kkkuk.edu.pk ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02T http://TUENGR.COM/V11/11A02T.pdf DOI: 10.14456/ITJEMAST.2020.40

1

zones, Pakistan and Afghanistan are affected due to war in Afghanistan and subsequent terrorism for long. This intergroup conflicts and the local war has put negative effects on both sides of Durand Line. Pakistan, especially federally administered tribal areas and its other cities, has also faced severe terrorism (Shah, 2010). In newspapers, major terrorism-related contents are dyed in the editorials as well as letter to the editors carry feedback of readers. The framing pattern of the print media gives its tendency towards issue like terrorism (Yusof et al., 2013). It is prerogative of print media organizations to project public position issues in their editorials. If it is considered that the story is newsworthy, it is not necessary to be framed as an editorial by the editor (Al-Rawi, 2017). Thus, media frames depict explicit problems in society and provide identification to the parties, which are held responsible for their creation and media framing is considered as a power exercising practice (Edy & Meirick, 2007).

Actually, media frames and news provides simulated atmosphere on which we are dependent to understand and experience those events that we cannot directly observe. It is a split paradigm for communication scholars, as it incorporates influence from other disciplines (Kostadinova & Dimitrova, 2012). Couldry (2015) and Kellner (2003) considered influence factors showing that not only Americans are the audience of the prestigious press but also the major decision-makers and whole world pay attention to the elite media. The prestige press is normally termed as elite press which should not be confused with elitist press, discharging one perception over the other. While in the 21st century, this elite press concept is almost referred to those journalists of national level media organizations like radio, newspapers and TV, who have direct approach to government elites in United States capital city (Fico et al., 2013). If we talk about Pakistan then it should be noted that Pakistan being a democratic country gives freedom to the media and press for the dissemination of factual information to the target audiences (Ahmad et al., 2010).

Similar to the rest of world, press, and media in Pakistan have got vibrant changes during last few decades. The facts and figures regarding press and media development inside Pakistan are very encouraging. Facts and figures regarding press and media development inside Pakistan are very encouraging. As per Preger (2007) number of publications including daily, monthly and quarterly publications have gradually increased from 3242 to 4455. In present time, the terrorists have sense of the news values and they divert elite media attention to get maximum coverage in order to disseminate their agenda. Terrorists utilize media outlets for their projection although such coverage has brought severe criticism from various sectors. Terrorism can be considered as a tactic of forced pressure exerted for promoting ideological, sociological and political objectives of the self-interest individual or group (Entman, 2003). The terroristsâ&#x20AC;&#x2122; dramatic show is framed to convey message to dispersed audiences through diverse outlets of the media. Suicide attacks of terrorists occur in the current phase of terrorism to communicate a coercive message to world audiences (Metz, 2012).

In almost all parts of the world and for most of the audiences of the world and major incidents of terrorism in the world, those events do not happen to the audiences, which are not transmitted by news systems (Schmid, 2005). Special material resources of terrorism are personnel, funds, or territory under terrorist control to achieve their goals through justifiable political action or large scale organized violence (Combs, 2017). To influence audience, terrorists manage attacks as a part of indirect strategy to get their political aims by influencing an audience. These terrorist groups get sympathies with the various audiences when they try to influence audiences and prepare messages for their desired audiences. They also influence media organizations to portray their vested agenda

2

Muhammad Anwar, Muhammad Wasim Akbar, Anwar Khan

(Jongman, 2017). Keeping in mind the importance of media framing of terrorism, this study has investigated the framing style of the elite press of Pakistan in covering terrorism-related issues. By specifically examining the agenda of the elite newspapers on Terrorism related matters since 2009 in perspective of post-US-attack on Afghanistan.

This study has been chosen because the framing style of the elite press carries its agenda regarding its policy on specific issues like terrorism that can be evaluated through its editorial contents. This descriptive explanatory content analysis study has examined Pakistani elite print media editorial framing techniques to inquire its agenda on Terrorism related matters since 2009 in perspective of post-US-attack on Afghanistan. To understand framing terrorism and its related issues, study comparatively analyzes elite press editorial frames on terrorism, internal displacement, Military Operation, NATO role, American intervention and Afghanistan state of affairs with its readers' response expressed in letters to editor columns on terror-related issues. More Specifically, this current study will work on the following research questions: 1. What kind of coverage is given to the terror-oriented issues?

2. Are editorials and letters to the editor frames of the elite press independent to the levels of Military Operation?

3. Are editorials and letters to the editor frames of the elite press independent to the levels of Internal Displacement?

4. Are editorials and letters to the editor frames of the elite press independent to levels of American Intervention?

5. Are editorials and letters to the editor frames of the elite press independent to the levels of NATO Role?

6. Are editorials and letters to the editor frames of the elite press independent to the levels of Afghanistan Situation?

2. RESEARCH METHODOLOGY This section has discussed the research methodological details of the study which helped in reaching the conclusion of the current study.

2.1 RESEARCH DESIGN A descriptive content analysis research design was adopted for this study. Content evaluation is a research technique for studying archives and communication artifacts, which may be texts of more than a few formats, pictures, audio or video (Krippendorff, 2013). The editorials of national-level dailies “The News”, “The Nation” & “Dawn”. Each editorial and readers’ feedback of the selected sample, in terms of characteristics as categorized in the coding categories, is a part of the analysis.

2.2 RESEARCH FRAMEWORK This research model provides that every variable of the study has a logical relationship with other variables. In the model, independent variables are placed at left side of Figure 1 which is conjoined to each other besides connection dependent variables. The frames of elite press i.e. Editorials and letters to editor, Years (2009-2014) and elite presses (The News, Dawn, The Nation) are considered independent variables. The right side has dependent categories like Terrorism, Military Operation, Internal Displacement, American Intervention, the NATO Role, and Afghanistan Situation. The analysis of the elite press newspapers, editorial, and letter to editor frames, year-wise coverage, and inter-relationship among terror-oriented issues is expressed in this research model. *Corresponding author (M.Anwar). Email: muhammad.anwar@kkkuk.edu.pk ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02T http://TUENGR.COM/V11/11A02T.pdf DOI: 10.14456/ITJEMAST.2020.40

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Figure 1: Research Framework of this study.

2.3 DATA COLLECTION AND ANALYSIS TECHNIQUES This study employs discursive analysis for analyzing texts in the form of editorials and letters to the editor to compare frames of editorials with those who read or consume them. Fairclough and Wodak (2005) explained that communicative events’ dimension in broad process involves several facets of text production and their consumptions. In this phase, textual analysis turns into discursive analysis. Hence this procedure includes analysis of texts as they are set within news or editorials as related with environment of their production and consumption. Before beginning to working out on each newspaper, researchers have ensured that the complete record is available in the correct order.

Each elite press newspaper “editorials and letters to editor framed on terrorism and its related issues” as a unit of analysis in this study. The coding team then counted and recorded the number of categories, as well as the number of editorials and letters to the editor on terrorism-related issues.

The researchers ensured the ultimate proper entries in code sheets. The double check rule was also carried out to ensure reliability of proper entries in the coding sheets. The related editorials and letters framed on terror-oriented issues were hence coded in ‘Extremely Pro’, Moderately Pro’, ‘Extremely Anti’, ‘Moderately Anti’ or ‘Neutral’. Moreover, the unit of the analysis may be a single word in written content like terrorism or maybe a single symbol of a research study. In this study unit of analysis was a single newspaper (editorial and letter to editor). To measure and investigate coverage and trend direction of the editorials and readership feedback of The News, The Nation, and Dawn, on terror-oriented issues, researchers have designed the following categories. The direction was analyzed on the said Likert scale towards the specified content categories as:  Terrorism  Military Operation  NATO role  American Intervention  Internal Displacement  Afghanistan situation

2.4 POPULATION AND SAMPLING The population of the research study was a total Number of the elite newspapers published in Pakistan. The research study is conducted in a period of five years from June 2009 to June 2014 in which editorials and letters to editor of three English dailies. The News, Dawn and The Nation included. The sampling formula is taken from Cochran (2007) giving a sample of 480.

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3. RESULTS OF STUDY The results of this study are given in accordance to the research questions. Starting from the first research question, which is “What kind of coverage is given to the terror-oriented issues?”

Table 1: Responses for the Media Coverage given to Terrorism Newspapers The News The Dawn The Nation Total

Extremely Pro 2 2 1 5

Terrorism Coverage Moderately Pro Neutral Moderately Anti 8 7 41 5 9 72 8 14 38 21 30 151

Extremely Anti 89 82 101 272

Total 147 170 162 480

Results shown in Table 1 explains that total counts 147 of The News, Extremely Anti coverage frames were 89 in Editorials and letters to the editors. Similarly, 41 items were given Moderately Anti coverage. These presented the relevant issues and always tried to prove the valuable and accurate information to the audience to get them aware of the recent issues and eventualities resulted from these events in letter and spirit. This supported that major frames of the newspaper towards terrorism were anti. The other counts were Moderately Pro as 2, Moderately Anti as 8 and Neutral as 7.

Table 2: Responses regarding Media Frames (Military Operations) Responses Extremely Pro Moderately Pro Neutral Moderately Anti Extremely Anti Total

Media Frames Editorial Letters to the Editor 101 93 133 93 28 14 7 5 4 2 273 207

Total Numbers 194 226 42 12 5 480

The second research question of this study is “Are editorials and letters to editor frames of elite press independent to levels of Military Operation?”. The results regarding editorials and letters to the editor frames of elite press independent to levels (frequencies) of Military Operations are given in Table 2. The data show that there are more extremely and moderately pro responses as compared to moderately or extremely anti responses. However, it is not known that the responses about media frames are independent of each other or in the other words whether editorials and letters to the editor frames of the elite press are independent of the levels of Military Operation.

Table 3: Results for the Pearson Chi-Square Test Description Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association

Value 15.000a 13.322 3.833

df 12 12 1

Asymp. Sig. (2-sided) .241 .346 .050

To check the independence of media frame a Pearson’s Chi-Square (χ2) of relationship was used and its results are given in Table 3. Pearson’s χ2 test result gave a non-significant result, i.e., χ2 = 15.00 with df=12 and p-value= 0.241, which means that there is no significant relationship between editorials and letters to editor, thus the editorial frames are independent of each other.

The third research question of this study is “Are editorials and letters to the editor frames of an elite press independent to the levels of Internal Displacement?”.The results regarding editorials and *Corresponding author (M.Anwar). Email: muhammad.anwar@kkkuk.edu.pk ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02T http://TUENGR.COM/V11/11A02T.pdf DOI: 10.14456/ITJEMAST.2020.40

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letters to editor frames of elite press levels independent (frequencies) of internal displacement are given in Table 4. The data show that there are more extremely and moderately pro responses as compared to moderately or extremely anti responses. However, it is not known that the responses about media frames are independent of each other or in the other words, whether editorials and letters to the editor frames of elite press are independent of the levels of Internal Displacement.

Table 4: Responses regarding Media Frames (Internal Displacement) Responses Extremely Pro Moderately Pro Neutral Moderately Anti Extremely Anti Total

Editorial 123 110 23 15 2 273

Media Frames Letters to the Editor 58 90 35 17 7 207

Total Numbers 181 200 58 32 9 440

Table 5: Results for the Pearson Chi-Square Test Description Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association

Value 20.000 16.094 3.178

df 16 16 1

Asymp. Sig. (2-sided) .220 .416 .078

To check the independence of media frame a Pearson’s Chi-Square (χ2) of the relationship was used and its results are given in Table 5. Pearson’s χ2 test result gave a non-significant result, i.e., χ2 = 20.00 with df=16 and p-value= 220, which means that there is no significant relationship between editorials and letters to editor, thus the editorial frames are independent of each other.

Table 6: Responses regarding Media Frames (American Intervention) Responses Extremely Pro Moderately Pro Neutral Moderately Anti Extremely Anti Total

Editorial 15 3 12 101 133 264

Media Frames Letters to the Editor 17 7 6 93 93 216

Total Numbers 32 10 18 194 226 480

The fourth research question of this study is “Are editorials and letters to the editor frames of an elite press independent to the levels of American Intervention?”.The results regarding editorials and letters to the editor frames of elite press independent to levels (frequencies) of the American Intervention are given in Table 6. The data show that there are more extremely and moderately anti responses as compared to moderately or extremely pro responses. However, it is not known that the responses about media frames are independent of each other or in the other words, whether editorials and letters to the editor frames of elite press are independent of the levels of American Intervention.

Table 7: Results for Pearson Chi-Square Test Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association

Value 24.000 18.723 4.278

df 20 20 1

Asymp. Sig. (2-sided) .242 .560 .015

To check the independence of the media frame a Pearson’s Chi-Square (χ2) of relationship was used and its results are given in Table 7. Pearson’s χ2test result gave a non-significant result, i.e., χ2 = 24.00 with df=20 and p-value= 242, which means that there is no significant relationship between

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editorials and letters to editor, thus the editorial frames are independent of each other.

Table 8: Responses regarding Media Frames (NATO role) Responses Extremely Pro Moderately Pro Neutral Moderately Anti Extremely Anti Total

Editorial 12 7 10 106 130 265

Media Frames Letters to the Editor 15 9 5 95 91 215

Total Numbers 27 16 15 201 221 480

The fifth research question of this study is “Are editorials and letters to the editor frames of an elite press independent to the levels of NATO role?”.The results regarding editorials and letters to the editor frames of elite press independent to levels (frequencies) of NATO role are given in Table 8.

The data show that there are more extremely and moderately anti responses as compared to moderately or extremely pro responses. However, it is not known that the responses about media frames are independent of each other or in the other words, whether editorials and letters to the editor frames of elite press are independent of the levels of NATO role.

Table 9: Results for Pearson Chi-Square Test Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association

Value 30.000 21.501 4.278

df 25 25 1

Asymp. Sig. (2-sided) .224 .640 .025

To check the independence of media frame a Pearson’s Chi-Square (χ2) of relationship was used and its results are given in Table 9. Pearson’s χ2 test result gave a non-significant result, i.e., χ2 = 30.00 with df=25 and the p-value= 224, which means that there is no significant relationship in between the editorials and letters to editor, thus the editorial frames are independent of each other.

Table 10: Responses regarding Media Frames (Afghanistan Situation) Responses Extremely Pro Moderately Pro Neutral Moderately Anti Extremely Anti Total

Editorial 117 98 27 25 12 279

Media Frames Letters to the Editor 55 88 18 22 18 201

Total Numbers 172 186 45 47 30 480

The sixth and final research question of the current study is “Are editorials and letters to the editor frames of elite press independent to the levels of Afghanistan Situation?”.The results regarding editorials and letters to the editor frames of elite press independent to the levels (frequencies) of Afghanistan Situationare given in Table 10. The data show that there are more extremely and moderately anti responses as compared to moderately or extremely pro responses. However, it is not known that the responses about media frames are independent of each other or in the other words, whether editorials and letters to the editor frames of elite press are independent of the levels of Afghanistan Situation.

*Corresponding author (M.Anwar). Email: muhammad.anwar@kkkuk.edu.pk ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02T http://TUENGR.COM/V11/11A02T.pdf DOI: 10.14456/ITJEMAST.2020.40

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Table 11: Results for Pearson Chi-Square Test Test Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association

Value 23.000 18.521 3.278

df 18 20 1

Asymp. Sig. (2-sided) .244 .440 .029

To check the independence of media frame a Pearson’s Chi-Square (χ2) of relationship was used and its results are given in Table 11. Pearson’s χ2 test result gave a non-significant result, i.e., χ2 = 23.00 with the df=18 and the p-value= 244, which means that there is no significant relationship in between editorials and letters to editor, thus the editorial frames are independent of the each other.

4. DISCUSSION Laqueur (1986) has explained, “symbiotic relationship” between media outlets and terrorists.

The peril and violence based communication between terrorists and the endangered victimized persons are aimed at to use major targets to have access to the main audiences to turn them into target of the terror, which is their demand. According to Bingham and Wallace (2012), the American citizens have termed terrorism 'critical threat’ for the country’s crucial interests was due to terrorism on international level. The core of the framing is giving priority to some aspects or issues over the others. This unintentionally promotes one specific interpretation of issues. Mass media according to Edelstein, Itō, Kepplinger (1989) regularly give their judgments regarding salience of issues through impressive sorts’ production like in a newspaper whose sorts may be of headlines length or articles size as well as the placement of articles. On the other side, the elite press reports observed, in discussion on military operations, that all the three newspapers were pro-military operation.

The frequencies of elite press and readers were almost on the same side and military action has been given favorable coverage by three newspapers. Hence there is interdependence among military, government and elite press on military operation in FATA. This provided that the agenda of the elite press of Pakistan towards the framing military operation was nearly same as pro-military operation.

The readers also favored military action against terrorists in FATA and considered it inevitable for survival of Pakistan. The results of current study regarding internal displacement are in concurrence with the previous literature. A study conducted by Hussain (2016) on Media coverage of the Internally Displaced Persons in Swat, Pakistan found that newspapers like Daily Nation, Daily News, and Daily Dawn gave sufficient coverage to stories related to Internally Displaced Persons in Swat.

These news stories had highlighted problems of Internally Displaced Persons in Swat and it stressed the government to provide necessary resources to the Internally Displaced Persons in Swat.The previous literature also supports results of current study about the American interventions in Pakistan.

The story can be traced back to the tragic incident of 9/11, where mainstream media assisted America in mobilizing support to launch a war on terror. It featured the American government and its military high ups projected pro-US themes (Hutchinson et al., 2004). The previous literature is supporting the findings of present study. According to Ahmad (2010) Pakistan has suffered a lot in war of terrorism and for supporting American and Allied forces in war against terrorism. That is why NATO incursions in Pakistan are reflected in elite press of Pakistan. The existing literature shows that several studies have been published on the unfavorable coverage of NATO invasion in Pakistan.

Finally, the results of current study are in concurrence with existing literature on situation in Afghanistan. According to Walter (2016) there is insecurity and the backwardness in Afghanistan due

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to Soviet assault 30 years ago and American Intervention 10 years through US-led coalition forces.

The new great game is going to be developed in Afghanistan if America decides to set up military camps there on permanent basis in that country then new tussle could be forecast among rival countries.

5. CONCLUSION The content analysis of terror-oriented issues in the elite press of Pakistan is of important nature.

The media outlets' interactions with terrorists are analysed in the study, which adopted a careful observatory and systematic approach to analyse different categories of terror-oriented issues overutilization of several aspects ascertained from review of literature. This research analysed the agenda of the elite press of Pakistan’s editorial and letters to editor frames on terrorism, military operation, internal displacement, American intervention, NATO role, and Afghanistan situation through newspapers-wise, year-wise and issue-wise frequencies and means comparisons. The results show that the media frames are independent of each other in rating the responses regarding the agenda on Terrorism related matters since 2009 in perspective of post-US attack on Afghanistan. This study concludes that a relationship exists among terrorism-related issues examined in study. The study overall recommends for analytical screening of all terror-oriented media contents that are prone to create unrest among masses.

6. AVAILABILITY OF DATA AND MATERIAL The data used is included in this article. No data is generated from this study.

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Edy, Jill A, & Meirick, Patrick C. (2007). Wanted, dead or alive: Media frames, frame adoption, and support for the war in Afghanistan. Journal of Communication, 57(1), 119-141. *Corresponding author (M.Anwar). Email: muhammad.anwar@kkkuk.edu.pk ©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.2 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper ID:11A02T http://TUENGR.COM/V11/11A02T.pdf DOI: 10.14456/ITJEMAST.2020.40

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Fairclough, Norman, & Wodak, Ruth. (2005). Critical discourse analysis: na.

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Schmid, Alex. (2005). Terrorism as psychological warfare. Democracy and Security, 1(2), 137-146.

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Walter, Ben. (2016). The securitization of development and humans' insecurity in Nangarhar Province, Afghanistan. Global Change, Peace & Security, 28(3), 271-287.

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Muhammad Anwar is a PhD Scholar in Mass Communication, Gomal University, Dera Ismail Khan. He is an Assistant Professor and Head of the Department of Communication & Media Studies. His research is related to Information and Media Sciences.

Dr. Muhammad Wasim Akbar is Chairman of the Department of Communication & Media Studies, Gomal University, Dera Ismail Khan. He holds a PhD in Mass Communication. His research involves Digital Media Study. He can be reached at drwasimakbar @ yahoo.com.

Dr.Anwar Khan is an Assistant Professor at the Department of Management Sciences at Khushal Khan Khattak University (KKKUK). He holds Post-Doctorate in Organizational Psychology. His research includes Organizational Psychology and Human Resource Management. He can be reached at akpashtoon1981 @ gmail.com.

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Muhammad Anwar, Muhammad Wasim Akbar, Anwar Khan

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